Document:

EXHIBIT 10.6
                                                                    ------------

                                OPTION AGREEMENT

         This Option Agreement ("AGREEMENT") is made effective this 26th day of
April, 2007, by and between RonHow, LLC, a Georgia limited liability company
("RONHOW"), and Harold's Stores, Inc., an Oklahoma corporation ("COMPANY") with
reference to the following circumstances:

                  A. RonHow and the Company have entered into that certain
         Subordinated Loan Agreement dated August 31, 2006, as amended on April
         26, 2007 (the "SUBORDINATED LOAN AGREEMENT") pursuant to which the
         Company and certain of its subsidiaries (collectively, the "BORROWERS")
         may borrow an aggregate principal amount of up to $12,000,000, plus any
         interest converted into principal in accordance with the terms of the
         Subordinated Loan Agreement.

                  B. The Company has authorized a Series of 2007-B Senior
         Preferred Stock under the terms of the Certificate of Designation of
         the Series 2007-B Senior Preferred Stock filed with the Secretary of
         State of the State of Oklahoma on April 26, 2007 (the "CERTIFICATE").

                  C. On April 3, 2007, pursuant to the terms of the Subordinated
         Loan Agreement, RonHow made an advance to the Company in the amount of
         $2,000,000, and on April 26, 2007, also pursuant to the terms of the
         Subordinated Loan Agreement, RonHow made an additional advance to the
         Company in the amount of $1,000,000 (such $3 million in advances being
         referred to herein as the "ADVANCE").

                  D. The Company has agreed to grant the option set forth in
         this Agreement to enable RonHow to convert, in whole or in part, the
         principal balance and any accrued but unpaid interest due relating to
         the Advance into shares of the Company's Series 2007-B Senior Preferred
         Stock.

                  E. The existing holders of the Company's outstanding Amended
         Series 2001-A Preferred Stock, Series 2002-A Preferred Stock, Series
         2003-A Preferred Stock and Series 2006-A Preferred Stock have, in each
         case by at least a majority in interest, consented to the transactions
         contemplated by this Agreement and the Subordinated Loan Agreement, as
         amended, and waived their preemptive rights with respect to the right
         to acquire shares of Series 2007-B Preferred Stock.

         In consideration of the foregoing recitals and the mutual promises,
representations, warranties and covenants hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1. OPTION TO PURCHASE SHARES OF SERIES 2007-B PREFERRED STOCK.

                  1.1 OPTION. Subject to the terms and conditions of this
         Agreement, the Company grants to RonHow an option (the "OPTION") to
         purchase at a price per share ("PURCHASE PRICE PER SHARE") of One
         Thousand Dollars ($1,000.00), up to 3,000 shares, plus such additional
         shares as may be purchased in exchange for forgiveness of accrued but
         unpaid interest pursuant to the Advance (the "2007-B SHARES"), of
         authorized but

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         unissued shares of its Series 2007-B Preferred Stock which may be
         exercised at any time prior to the repayment in full of the Advance;
         provided, however, that for the purposes of the Option granted pursuant
         to this Agreement only, any repayment by the Company of any outstanding
         principal amount and accrued interest due under the terms of the
         Subordinated Loan Agreement shall be deemed to have been paid first in
         satisfaction of any accrued but unpaid interest under the Subordinated
         Loan Agreement and then in satisfaction of any unpaid principal
         advanced under the Subordinated Loan Agreement in the reverse
         chronological order of the date each advance has been made. RonHow may
         purchase from the Company such number of 2007-B Shares as is equal to
         the principal amount outstanding, plus any accrued but unpaid interest
         deemed by this Section 1.1 to be due under the terms of the Advance, at
         the date of Closing divided by the Purchase Price Per Share. RonHow may
         exercise the Option in whole or in part at any time after the date
         hereof and prior to the repayment in full by the Company of amounts
         deemed due under the Advance by giving written notice of exercise to
         the Company. If the Company intends to repay all or any part of the
         principal balance deemed due under the Advance, it shall give at least
         ten (10) days' written notice to RonHow and during such ten (10) day
         period, RonHow may exercise the Option in whole or in part. Payment of
         the Purchase Price for the 2007-B Shares which RonHow purchases by any
         exercise of the Option will be paid by RonHow by forgiving such portion
         of the Advance principal amount and accrued but unpaid interest deemed
         to be pursuant to such advance equal to the purchase price of the
         2007-B Shares purchased. RonHow will execute and deliver such documents
         and instruments to evidence such forgiveness as the Company may
         request.

                  1.2 CONVERSION PRICE. The Conversion Price (as defined in the
         Certificate) of the 2007-B Shares acquired upon any exercise of the
         Option shall be equal to 66.667% of the Average Market Price (as
         defined in the Certificate) on the day before the date of the exercise
         of the Option. The Conversion Price shall be subject to adjustment as
         provided in the Certificate. All other terms of the 2007-B Shares shall
         be governed by the Certificate.

                  1.3 CLOSING. The closing of the purchase and sale of the
         2007-B Shares (the "CLOSING") upon any exercise of the Option shall
         occur within ten (10) business days after the date of the Option
         exercise date. At the Closing, the Company shall deliver to RonHow
         certificates representing the 2007-B Shares that RonHow is purchasing
         against payment of the Purchase Price therefor as provided above. The
         obligation of the Company to close the sale of the 2007-B Shares shall
         be subject to the satisfaction or waiver of any conditions for such
         sale under the Subordinated Loan Agreement.

         2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
represents and warrants to RonHow that:

                  2.1 ORGANIZATION AND GOOD STANDING. The Company is a
         corporation duly organized and validly existing under the laws of the
         state of Oklahoma and is in good standing under such laws. The Company
         has all requisite corporate power and authority to own and operate its
         property and assets, and to carry on its business as presently
         conducted and as currently proposed to be conducted.

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                  2.2 CORPORATE POWERS. The Company has all requisite legal and
         corporate power and authority to execute and deliver this Agreement, to
         sell and issue the 2007-B Shares hereunder, to issue any additional
         shares of Series 2007-B Preferred Stock to be issued in satisfaction of
         dividends on the 2007-B Shares (the "DIVIDEND STOCK") and to issue the
         Common Stock issuable upon conversion of the 2007-B Shares and the
         Dividend Stock as set forth in the Certificate (the "UNDERLYING COMMON
         STOCK").

                  2.3 VALID ISSUANCE OF STOCK. The 2007-B Shares, when issued,
         sold and delivered in compliance with the provisions of this Agreement,
         will be duly and validly issued, fully paid and non-assessable and
         issued in compliance with all applicable state and federal securities
         law. The Dividend Stock and the Underlying Common Stock have been or
         will be duly and validly reserved and, when issued, will be duly and
         validly issued, fully paid and non-assessable and issued in compliance
         with all applicable state and federal securities laws.

                  2.4 AUTHORIZATION. All corporate action on the part of the
         Company necessary for the authorization, execution, delivery and
         performance of this Agreement by the Company, the authorization, sale,
         issuance (or reservation of issuance) and delivery of the 2007-B Shares
         and Dividend Stock and the Underlying Common Stock with respect thereto
         and the performance of all of the Company's obligations hereunder have
         been taken prior to the date hereof. This Agreement constitutes a valid
         and legally binding obligation of the Company, enforceable in
         accordance with its terms, subject to the laws of general application
         relating to bankruptcy, insolvency and the relief of debtors and the
         rules of law governing specific performance, injunctive relief or other
         equitable remedies.

         3. REPRESENTATIONS AND WARRANTIES OF RONHOW. RonHow represents and
warrants to the Company as follows:

                  3.1 INVESTMENT EXPERIENCE. RonHow is capable of evaluating the
         merits and risks of its investment in the Company and has the capacity
         to protect its own interests. RonHow is an "accredited investor" as
         defined in Rule 501 of Regulation D promulgated under the Securities
         Act. RonHow is able to bear the economic risk of losing its entire
         investment in the Company.

                  3.2 INVESTMENT. If the Option is exercised, RonHow will
         acquire the 2007-B Shares for investment for RonHow's own account, not
         as a nominee or agent, and not with the view to, or for resale in
         connection with, any distribution thereof. RonHow understands that the
         2007-B Shares and the Dividend Stock and the Underlying Common Stock
         with respect thereto have not been, and will not be when issued,
         registered under the Securities Act or any state securities laws by
         reason of specific exemptions from the registration provisions of the
         Securities Act of 1933 ("SECURITIES ACT") and such state laws, the
         availability of which depends upon, among other things, the bona fide
         nature of the investment intent and the accuracy of the representations
         as expressed herein.

                  3.3 RULE 144. RonHow is aware of the provisions of Rule 144
         promulgated under the Securities Act which permit limited resale of
         shares purchased in a private

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         placement subject to the satisfaction of certain conditions, which may
         include, among other things, the existence of a public market for the
         shares, the availability of certain current public information about
         the Company, the resale occurring not less than one year after a party
         has purchased and paid for the security to be sold, the sale being
         effected through a "broker's transaction" or in transactions directly
         with a "market maker" and the number of shares being sold during any
         three (3) month period not exceeding specified limitations.

                  3.4 ACCESS TO INFORMATION. RonHow has had an opportunity to
         discuss the Company's management, business plan and financial condition
         with the Company's management. RonHow understands that any purchase of
         the 2007-B Shares involves a high degree of risk, and there can be no
         assurance that the Company's business objectives will be obtained.

                  3.5 AUTHORIZATION. RonHow has all requisite legal power and
         authority to execute and deliver this Agreement and to carry out and
         perform its obligations under the terms of this Agreement and the
         transactions contemplated hereby. This Agreement constitutes a valid
         and legally binding obligation of RonHow, enforceable in accordance
         with its terms, subject to laws of general application relating to
         bankruptcy, insolvency and the relief of debtors and rules of law
         governing specific performance, injunctive relief or other equitable
         remedies.

                  3.6 LEGENDS. It is understood that each certificate
         representing the 2007-B Shares and the Dividend Stock and the
         Underlying Common Stock with respect thereto shall bear a legend to the
         following effect:

                  THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933 OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE
                  SOLD, OFFERED FOR SALE OR OTHERWISE TRANSFERRED IN THE ABSENCE
                  OF AN EFFECTIVE REGISTRATION STATEMENT OR THE AVAILABILITY OF
                  AN EXEMPTION THEREFROM.

         4. COVENANTS OF THE COMPANY.

                  4.1 RESERVATION OF SHARES. The Company shall at all times
         reserve and keep available out of its authorized but unissued shares
         (i) such number of shares of Series 2007-B Preferred Stock as shall
         from time to time be sufficient to permit the exercise of the Option
         and to permit payment of dividends on the 2007-B Shares and Dividend
         Stock and (ii) such number of shares of Underlying Common Stock as
         shall from time to time be sufficient to effect the conversion of all
         outstanding shares of the Series 2007-B Preferred Stock; and if at any
         time the number of authorized but unissued shares of Series 2007-B
         Preferred Stock or Common Stock shall not be sufficient to effect the
         payment of dividends or conversion of all then outstanding shares of
         the Series 2007-B Preferred Stock, in addition to such other remedies
         as shall be available to the holders of such Series 2007-B Preferred
         Stock, the Company will take such corporate action as may, in

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         the opinion of its counsel, be necessary to increase the authorized but
         unissued shares to such number of shares as shall be sufficient for
         such purposes.

         5. MISCELLANEOUS.

                  5.1 GOOD FAITH; COOPERATION; FURTHER ASSURANCES. The parties
         will in good faith undertake to perform their obligations in this
         Agreement, to satisfy all conditions and to cause the transactions
         contemplated by this Agreement to be carried out promptly in accordance
         with its terms. The parties will cooperate fully with each other and
         their respective representatives in connection with any actions
         required to be taken as part of their respective obligations under this
         Agreement. Each party will at the Closing and from time to time after
         the Closing, deliver to the other such further instruments necessary or
         desirable, in the reasonable opinion of the requesting party and at the
         expense of the requesting party, to consummate or document the
         transactions contemplated by this Agreement.

                  5.2 ENTIRE AGREEMENT; SUCCESSORS AND ASSIGNS. This Agreement
         and the Subordinated Loan Agreement constitute the entire agreement
         between the Company and RonHow relative to the subject matter hereof
         and supersede any previous agreement between the Company and RonHow
         regarding such subject matter. Subject to the exceptions specifically
         set forth in this Agreement, the terms and conditions of this Agreement
         shall inure to the benefit of and be binding upon the respective
         executors, administrators, heirs, successors and assigns of the
         parties.

                  5.3 GOVERNING LAW. This Agreement shall be governed by and
         construed in accordance with the laws of the State of Oklahoma without
         regard to the conflicts of laws principles thereof.

                  5.4 COUNTERPARTS. This Agreement may be executed in any number
         of counterparts (including by means of facsimile or other electronic
         media) with the same effect as if all parties hereto had signed the
         same document; however, this Agreement shall not become operative until
         all parties have signed a counterpart hereof. All counterparts shall be
         construed together and shall constitute one Agreement.

                  5.5 HEADINGS. The section headings of this Agreement are for
         convenience and shall not by themselves determine the interpretation of
         this Agreement.

                  5.6 NOTICES. Any notice required or permitted hereunder shall
         be given in writing and shall be conclusively deemed effectively given
         upon personal delivery, or by delivery by overnight courier, or
         telecopy (with confirmation of receipt), or five (5) days after deposit
         in the United States mail, by registered or certified mail, postage
         prepaid, addressed:

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                  if to the Company:       Harold's Stores, Inc.
                                           765 Asp
                                           Norman, Oklahoma 73070
                                           Attn: Chief Financial Officer
                                           Telecopy: (405) 366-2538

                  if to RonHow:            RonHow, LLC
                                           3290 Northside Parkway, Suite 250
                                           Atlanta, Georgia, 30302
                                           Attn: Robert Anderson

                  5.7 SURVIVAL OF WARRANTIES. The representations and warranties
         of the parties contained in or made pursuant to this Agreement shall
         survive for a period of one (1) year from the date of the Closing.

                  5.8 AMENDMENT OF AGREEMENT. Any provision of this Agreement
         may be amended by a written instrument signed by the Company and
         RonHow.

                  5.9 FINDERS' FEES. The Company and RonHow will indemnify each
         other against all liabilities incurred by one party with respect to
         claims related to investment banking or finders' fees in connection
         with the transactions contemplated by this Agreement, arising out of
         arrangements between the party asserting such claims and the
         indemnifying party, and all costs and expenses (including reasonable
         fees of counsel) of investigating and defending such claims.

                       [Signature page follows this page]

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         This Option Agreement is executed and delivered by the undersigned to
be effective as of the date first above written.

"COMPANY"                            HAROLD'S STORES, INC., an Oklahoma
                                     corporation

                                     By: /s/ Jodi Taylor
                                         -------------------------------
                                         Jodi Taylor, Chief Financial Officer &
                                         Secretary

"RONHOW"                             RonHow, LLC, a Georgia limited liability
                                     company

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

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

                      [Signature Page to Option Agreement]EXHIBIT 10.7
                                                                    ------------

                               AMENDMENT NO. 1 TO
                                OPTION AGREEMENTS

         THIS AMENDMENT NO. 1 TO OPTION AGREEMENTS (this "FIRST AMENDMENT") is
executed and delivered on this 26th day of April, 2007, to be effective as of
such date, by and between RonHow, LLC, a Georgia limited liability company
("RONHOW"), and Harold's Stores, Inc., an Oklahoma corporation (the "COMPANY"),
with reference to the following circumstances:

         A. RonHow and the Company are parties to that certain Option Agreement
dated effective as of August 31, 2006 (the "INITIAL OPTION AGREEMENT"), pursuant
to which RonHow holds an option to convert, in whole or in part, up to
$5,000,000 of principal amount outstanding under the Subordinated Loan Agreement
dated August 31, 2006, together with accrued and unpaid interest thereon, into
shares of the Company's Series 2006-B Preferred Stock.

         B. RonHow and the Company are parties to that certain Option Agreement
dated effective as of January 4, 2007 (the "SECOND OPTION AGREEMENT," and
collectively with the Initial Option Agreement, the "OPTION AGREEMENTS"),
pursuant to which RonHow holds an option to convert, in whole or in part, up to
$2,000,000 of principal amount outstanding under the Subordinated Loan Agreement
dated August 31, 2006, together with accrued and unpaid interest thereon, into
shares of the Company's Series 2006-B Preferred Stock.

         C. RonHow and the Company are simultaneously entering into an amendment
to the Subordinated Loan Agreement to provide for additional advances and to
provide for two tranches of subordinated loans bearing interest at different
rates: Tranche A Term Loan consisting of $7,000,000 in principal amount and
Tranche B Term Loan consisting of amounts advanced in excess of such amount.

         D. RonHow and the Company have entered into that certain Preferred
Stock Purchase Agreement dated of even date herewith (the "PURCHASE AGREEMENT"),
pursuant to which RonHow has agreed to purchase from the Company, and the
Company has agreed to sell to RonHow, shares of the Company's Series 2007-A
Senior Preferred Stock in exchange for the surrender by RonHow of its rights to
receive payment for, and for the cancellation of, an amount of principal of the
Tranche A Term Loan outstanding under the Subordinated Loan Agreement, as
amended, equal to $2,000,000.00.

         E. The parties desire to (i) amend the Initial Option Agreement to
cancel and terminate (without consideration) the option to acquire 2,000 shares
of the Company's Series 2006-B Preferred Stock subject to the Initial Option
Agreement and (ii) amend the Option Agreements to remove references to the IRA
Amendment, such references no longer being required to effect the transactions
contemplated by the Option Agreements as a result of certain changes effected by
that certain Fourth Amendment to Investor Rights Agreement dated of even date
herewith by and among the Company, Inter-Him, N.V., W. Howard Lester and RonHow.

         F. Capitalized terms used in this First Amendment without further
definition have the meanings ascribed to them in the Option Agreements.

<PAGE>

         In consideration of the premises, it is agreed that the Option
Agreements shall be and are amended as follows:

         1. DEFINITION OF INITIAL ADVANCE. The following new recital paragraph
is added to the Initial Option Agreement:

                           E. Effective as of August 31, 2006, pursuant to the
                  terms of the Subordinated Loan Agreement, RonHow made an
                  initial advance to the Company in the amount of $5,000,000
                  (the "Initial Advance"), the Company's obligation to repay
                  $2,000,000 of the principal of which was cancelled pursuant to
                  the terms of that certain Preferred Stock Purchase Agreement
                  dated April 26, 2007, by and between the Company and RonHow,
                  such that the Initial Advance now has a principal balance
                  outstanding of $3,000,000.

         2. AMENDMENT TO OPTION. Section 1.1 of the Initial Option Agreement is
amended and restated in its entirety as follows:

                           1.1 OPTION. Subject to the terms and conditions of
                  this Agreement, the Company grants to RonHow an option (the
                  "Option") to purchase at a price per share ("Purchase Price
                  Per Share") of One Thousand Dollars ($1,000.00), up to 3,000
                  shares, plus such additional shares as may be purchased in
                  exchange for forgiveness of accrued but unpaid interest, or
                  interest converted to principal, pursuant to the Initial
                  Advance (the "2006-B Shares"), of authorized but unissued
                  shares of its Series 2006-B Preferred Stock which may be
                  exercised at any time prior to the repayment in full of the
                  Tranche A Term Loan under the Subordinated Loan Agreement, as
                  amended. RonHow may purchase from the Company such number of
                  2006-B Shares as is equal to the principal amount of the
                  Initial Advance outstanding, plus any accrued but unpaid
                  interest thereon or any interest converted to principal, at
                  the date of Closing divided by the Purchase Price Per Share.
                  RonHow may exercise the Option in whole or in part at any time
                  after the date hereof and prior to the repayment in full by
                  the Company of amounts deemed due under the Initial Advance by
                  giving written notice of exercise to the Company. If the
                  Company intends to repay all or any part of the principal
                  balance deemed due under the Initial Advance, it shall give at
                  least ten (10) days' written notice to RonHow and during such
                  ten (10) day period, RonHow may exercise the Option in whole
                  or in part. Payment of the Purchase Price for the 2006-B
                  Shares which RonHow purchases by any exercise of the Option
                  will be paid by RonHow by forgiving such portion of the
                  Initial Advance principal amount and accrued but unpaid
                  interest deemed to be due pursuant to such Initial Advance
                  equal to the purchase price of the 2006-B Shares

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<PAGE>

                  purchased. RonHow will execute and deliver such documents and
                  instruments to evidence such forgiveness as the Company may
                  request.

         3. INVESTOR RIGHTS AGREEMENT. The following sections of each of the
Option Agreements are amended and restated in their entirety as follows:

                           1.3 CLOSING. The closing of the purchase and sale of
                  the 2006-B Shares (the "CLOSING") upon any exercise of the
                  Option shall occur within ten (10) business days after the
                  date of the Option exercise date. At the Closing, the Company
                  shall deliver to RonHow certificates representing the 2006-B
                  Shares that RonHow is purchasing against payment of the
                  Purchase Price therefor as provided above. The obligation of
                  the Company to close the sale of the 2006-B Shares shall be
                  subject to the satisfaction or waiver of any conditions for
                  such sale under the Subordinated Loan Agreement.

                           2.4 AUTHORIZATION. All corporate action on the part
                  of the Company necessary for the authorization, execution,
                  delivery and performance of this Agreement by the Company, the
                  authorization, sale, issuance (or reservation of issuance) and
                  delivery of the 2006-B Shares and Dividend Stock and the
                  Underlying Common Stock with respect thereto and the
                  performance of all of the Company's obligations hereunder have
                  been taken prior to the date hereof. This Agreement
                  constitutes a valid and legally binding obligation of the
                  Company, enforceable in accordance with its terms, subject to
                  the laws of general application relating to bankruptcy,
                  insolvency and the relief of debtors and the rules of law
                  governing specific performance, injunctive relief or other
                  equitable remedies.

                           3.5 AUTHORIZATION. RonHow has all requisite legal
                  power and authority to execute and deliver this Agreement and
                  to carry out and perform its obligations under the terms of
                  this Agreement and the transactions contemplated hereby. This
                  Agreement constitutes a valid and legally binding obligation
                  of RonHow, enforceable in accordance with its terms, subject
                  to laws of general application relating to bankruptcy,
                  insolvency and the relief of debtors and rules of law
                  governing specific performance, injunctive relief or other
                  equitable remedies.

         4. NO OTHER AMENDMENTS. Except as provided in this First Amendment, all
other provisions of each of the Option Agreements shall continue in full force
and effect unless and until respectively amended pursuant to the terms of
Section 5.8 thereof.

                        SIGNATURE PAGE FOLLOWS THIS PAGE.

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         This Amendment No. 1 to Option Agreements is executed and delivered as
of the date previously set forth.

"COMPANY"                       HAROLD'S STORES, INC., an Oklahoma corporation

                                By: /s/ Jodi L. Taylor
                                    --------------------------------
                                    Jodi L. Taylor, Chief Financial Officer

"RONHOW"                        RONHOW, LLC, a Georgia limited liability company

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

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

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