##### 



EXHIBIT
10.1
 
 MODIFICATION, RENEWAL AND EXTENSION AGREEMENT
 THIS MODIFICATION, RENEWAL AND EXTENSION AGREEMENT Agreement st Lender Borrower
 R E C I T A L S
 20,000,000.00 Note Modification
 2005 Modification Loan Agreement
 $3,000,000.00 Note
 Security Agreements Loan Documents
  MODIFICATION, RENEWAL AND EXTENSION AGREEMENT
    
    Page 1 of 6




---



##### 



Acknowledgment of Outstanding Balance
 Renewal and Extension of Maturity
 Required Payments
  Loan Agreement.
 Usury
 MODIFICATION, RENEWAL AND EXTENSION AGREEMENT
    
    Page 2 of 6




---



##### 



Release and Waiver of Claims . In consideration of (i) the modification of certain
provisions of the Note, as herein provided, and (ii) the other benefits received by Borrower
hereunder, Borrower hereby RELEASES, RELINQUISHES and forever DISCHARGES Lender, as well as its
predecessors, successors, assigns, agents, officers, directors, employees and representatives, of
and from any and all claims, demands, actions and causes of action of any and every kind or
character, past or present, which Borrower may have against Lender and its predecessors,
successors, assigns, agents, officers, directors, employees and representatives arising out of or
with respect to (a) any right or power to bring any claim against Lender for usury or to pursue any
cause of action against Lender based on any claim of usury, and (b) any and all transactions
relating to the Loan Documents occurring prior to the date hereof, including any loss, cost or
damage, of any kind or character, arising out of or in any way connected with or in any way
resulting from the acts, actions or omissions of Lender, and its predecessors, successors, assigns,
agents, officers, directors, employees and representatives, including any breach of fiduciary duty,
breach of any duty of fair dealing, breach of confidence, breach of funding commitment, undue
influence, duress, economic coercion, conflict of interest, negligence, bad faith, malpractice,
intentional or negligent infliction of mental distress, tortious interference with contractual
relations, tortious interference with corporate governance or prospective
business advantage, breach of contract, deceptive trade practices, libel, slander or conspiracy,
but in each case only to the extent permitted by applicable law.
 Reaffirmation of Representations, Etc
 MODIFICATION, RENEWAL AND EXTENSION AGREEMENT
    
    Page 3 of 6




---



##### 



Enforceable Obligations
 No Release of Liens Liens
 Additional Renewals and Extensions
 Miscellaneous
    MODIFICATION, RENEWAL AND EXTENSION AGREEMENT
    
    Page 4 of 6




---



##### 



BORROWER:CRAFTMADE INTERNATIONAL, INC.,
a Delaware corporationBy:
    /s/ Brad HeimannBrad Heimann, Executive Vice President LENDER:THE FROST NATIONAL BANK,
a national banking associationBy:
    /s/ D. Michael RandallD. Michael Randall, Senior Vice President MODIFICATION, RENEWAL AND EXTENSION AGREEMENT
    
    Page 5 of 6




---



##### 



Guarantor Ratification of Agreement
 Guarantys
 DUROCRAFT INTERNATIONAL, INC.,
a Texas corporationBy:
    /s/ Brad HeimannBrad Heimann, Secretary TRADE SOURCE INTERNATIONAL, INC.,
a Delaware corporationBy:
    /s/ Brad HeimannBrad Heimann, Secretary DESIGN TRENDS, LLC,
a Delaware limited liability companyBy:
    Craftmade International, Inc.,;nbsp;a Delaware corporation, its ManagerBy:
    /s/ Brad HeimannBrad Heimann, Executive Vice President C/D/R INCORPORATED,
a Delaware corporationBy:
    /s/ Clifford CrimmingsClifford Crimmings, V.P. Marketing MODIFICATION, RENEWAL AND EXTENSION AGREEMENT
    
    Page 6 of 6