Document:

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                                                                    EXHIBIT 10.1

                ZIXIT CORPORATION 2001 EMPLOYEE STOCK OPTION PLAN

SECTION 1. PURPOSE

         The purpose of the ZixIt Corporation 2001 Employee Stock Option Plan
(hereinafter called the "Plan") is to advance the interests of ZixIt Corporation
(hereinafter called the "Company") by strengthening the ability of the Company
to attract, on its behalf and on behalf of its Subsidiaries (as hereinafter
defined), and retain personnel of high caliber through encouraging a sense of
proprietorship by means of stock ownership.

SECTION 2. DEFINITIONS

         "Board of Directors" shall mean the Board of Directors of the Company.

         "Code" shall mean the Internal Revenue Code of 1986, as amended from
time-to-time.

         "Committee" shall mean a committee of the Board of Directors comprised
of at least two directors or the entire Board of Directors, as the case may be.
Members of the Committee shall be selected by the Board of Directors.

         "Common Stock" shall mean the Common Stock of the Company, par value
$.01 per share.

         "Date of Grant" shall mean the date on which an Option is granted
pursuant to this Plan.

         "Designated Beneficiary" shall mean the beneficiary designated by the
Optionee, in a manner determined by the Committee, to receive amounts due the
Optionee in the event of the Optionee's death. In the absence of an effective
designation by the Optionee, Designated Beneficiary shall mean the Optionee's
estate.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         "Fair Market Value" shall mean the closing sale price (or average of
the quoted closing bid and asked prices if there is no closing sale price
reported) of the Common Stock on the date specified as reported by the Nasdaq
National Market, or by the principal national stock exchange on which the Common
Stock is then listed. If there is no reported price information for such date,
the Fair Market Value will be determined by the reported price information for
Common Stock on the day nearest preceding such date.

         "Non-employee Director" shall have the meaning given such term in Rule
16b-3.

         "Nonqualified Stock Option" shall mean a stock option granted under
Section 6 that is not intended to be an incentive stock option.

         "Option" shall mean an option granted under the Plan.

         "Optionee" shall mean the person to whom an option is granted under the
Plan or who has obtained the right to exercise an option in accordance with the
provisions of the Plan.

         "Rule 16b-3" shall mean Rule 16b-3 of the rules and regulations under
the Exchange Act as it may be amended from time-to-time and any successor
provision to Rule 16b-3 under the Exchange Act.

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         "Subsidiary" shall mean any now existing or hereafter organized or
acquired corporation or other entity of which fifty percent (50%) or more of the
issued and outstanding voting stock or other economic interest is owned or
controlled directly or indirectly by the Company or through one or more
Subsidiaries of the Company.

SECTION 3. ADMINISTRATION

         The Plan shall be administered by the Committee. The Committee shall
have sole and complete authority to adopt, alter and repeal such administrative
rules, guidelines and practices governing the operation of the Plan as it shall
from time-to-time deem advisable, and to construe, interpret and administer the
terms and provisions of the Plan and the agreements thereunder. The
determinations and interpretations made by the Committee are final and
conclusive.

SECTION 4. ELIGIBILITY

         All employees and non-employee consultants and advisors (other than
officers of the Company and members of the Board of Directors) who, in the
opinion of the Committee, have the capacity for contributing in a substantial
measure to the successful performance of the Company are eligible to receive
Options under the Plan.

SECTION 5. MAXIMUM AMOUNT AVAILABLE FOR OPTIONS

         (a) The maximum number of shares of Common Stock in respect of which
Options may be made under the Plan shall be a total of 300,000 shares of Common
Stock. Options that expire, lapse or are cancelled or forfeited nonetheless
continue to count against the 300,000 share limit. Shares of Common Stock may be
made available from the authorized but unissued shares of the Company or from
shares reacquired by the Company, including shares purchased in the open market.
In the event that an Option is terminated unexercised as to any shares of Common
Stock covered thereby, such shares shall thereafter be again available for award
pursuant to the Plan.

         (b) In the event that the Committee shall determine that any stock
dividend, recapitalization, reorganization, merger, consolidation, split-up,
spin-off, combination, exchange of shares, warrants or rights offering to
purchase Common Stock at a price substantially below fair market value, or other
similar corporate event affects the Common Stock such that an adjustment is
required in order to preserve the benefits or potential benefits intended to be
made available under the Plan, then the Committee shall adjust appropriately any
or all of (1) the number and kind of shares which thereafter may be optioned
under the Plan and (2) the grant, exercise or conversion price and/or number of
shares with respect to the Options and/or, if deemed appropriate, make provision
for cash payment to an Optionee; provided, however, that the number of shares
subject to any Option shall always be a whole number.

SECTION 6. STOCK OPTIONS

         (a) Subject to the provisions of the Plan, the Committee shall have
sole and complete authority to determine the persons to whom Options shall be
granted, the number of shares to be covered by each Option, the option price
therefor and the conditions and limitations applicable to the exercise of the
Option.

         (b) The Committee shall have the authority to grant Nonqualified Stock
Options only. Nonqualified Stock Options to purchase Common Stock may be granted
to such eligible participants as shall be determined by the Committee.

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         (c) The Committee shall, in its discretion, establish the exercise
price at the time each Option is granted, which in the case of Nonqualified
Stock Options, shall not be less than 100% of the Fair Market Value of the
Common Stock on the Date of Grant.

         (d) Exercise

                  (1) Each Option shall be exercisable at such times and subject
         to such terms and conditions as the Committee may, in its sole
         discretion, specify in the applicable grant or thereafter; provided,
         however, that in no event may any Option granted hereunder be
         exercisable after the expiration of ten years from the Date of Grant.
         The Committee may impose such conditions with respect to the exercise
         of Options, including without limitation, any relating to the
         application of federal or state securities laws, as it may deem
         necessary or advisable.

                  (2) No shares shall be delivered pursuant to any exercise of
         an Option until payment in full of the option price therefore is
         received by the Company. Such payment may be made in cash, or its
         equivalent, or, if and to the extent permitted by the Committee or
         under the terms of the applicable agreement, by exchanging shares of
         Common Stock owned by the Optionee (which are not the subject of any
         pledge or other security interest), or by a combination of the
         foregoing, provided that the combined value of all cash and cash
         equivalents and the Fair Market Value of any such Common Stock so
         tendered to the Company, valued as of the date of such tender, is at
         least equal to such option price.

                  If the shares to be purchased are covered by an effective
         registration statement under the Securities Act of 1933, as amended,
         any Option may be exercised by a broker-dealer acting on behalf of an
         Optionee if (a) the broker-dealer has received from the Optionee
         instructions signed by the Optionee requesting the Company to deliver
         the shares of Common Stock subject to such Option to the broker-dealer
         on behalf of the Optionee and specifying the account into which such
         shares should be deposited, (b) adequate provision has been made with
         respect to the payment of any withholding taxes due upon such exercise,
         and (c) the broker-dealer and the Optionee have otherwise complied with
         Section 220.3(e)(4) of Regulation T, 12 CFR Part 220, or any successor
         provision.

                  (3) The Company, in its sole discretion, may lend money to an
         Optionee, guarantee a loan to an Optionee or otherwise assist an
         Optionee to obtain the cash necessary to exercise all or any portion of
         an Option granted under the Plan.

                  (4) The Company shall not be required to issue any fractional
         shares upon the exercise of any Options granted under this Plan. No
         Optionee nor an Optionee's legal representatives, legatees or
         distributees, as the case may be, will be, or will be deemed to be, a
         holder of any shares subject to an Option unless and until said Option
         has been exercised and the purchase price of the shares in respect of
         which the Option has been exercised has been paid. Unless otherwise
         provided in the agreement applicable thereto, an Option shall not be
         exercisable except by the Optionee or by a person who has obtained the
         Optionee's rights under the Option by will or under the laws of descent
         and distribution or pursuant to a "qualified domestic relations order"
         as defined in the Code.

         (e) No Nonqualified Stock Options shall be exercisable more than ten
years after the Date of Grant.

         (f) In no event shall any Option granted to any employee who is
classified as "non-exempt" under the Fair Labor Standards Act of 1938 be
exercisable less than six months after the Date of Grant, except in the case of
death, disability, retirement, a change in control or other circumstances
permitted by

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regulations under the Worker Economic Opportunity Act ("WEOA"). Grants to such
non-exempt employees shall not be based on pre-established performance criteria,
except as specifically permitted under the WEOA. Non-exempt employees shall be
notified of the terms of their Options in accordance with the WEOA, and exercise
of such Options must be voluntary.

SECTION 7. GENERAL PROVISIONS

         (a) The Company and its Subsidiaries shall have the right to deduct
from all amounts paid to an Optionee in cash (whether under the Plan or
otherwise) any taxes required by law to be withheld in respect of Option
exercises under the Plan. However, if permitted by the Committee or under the
terms of the applicable agreement, the Optionee may pay all or any portion of
the taxes required to be withheld by the Company or its Subsidiaries or paid by
the Optionee with respect to such Common Stock by electing to have the Company
or its Subsidiaries withhold shares of Common Stock, or by delivering previously
owned shares of Common Stock, having a Fair Market Value equal to the amount
required to be withheld or paid. The Optionee must make the foregoing election
on or before the date that the amount of tax to be withheld is determined. Any
such election is irrevocable and subject to disapproval by the Committee.

         (b) Each Option hereunder shall be evidenced in writing, delivered to
the Optionee, and shall specify the terms and conditions thereof and any rules
applicable thereto, including, but not limited to, the effect on such Option of
the death, retirement, disability or other termination of employment of the
Optionee and the effect thereon, if any, of a change in control of the Company.

         (c) Unless otherwise provided in the agreement applicable thereto, no
Option shall be assignable or transferable except by will or under the laws of
descent and distribution or pursuant to a "qualified domestic relations order"
as defined in the Code, and no right or interest of any Optionee shall be
subject to any lien, obligation or liability of the Optionee.

         (d) No person shall have any claim or right to be granted an Option.
Further, the Company and its Subsidiaries expressly reserve the right at any
time to terminate the employment of an Optionee free from any liability, or any
claim under the Plan. Neither the Plan nor any Option granted hereunder is
intended to confer upon any Optionee any rights with respect to continuance of
employment or other utilization of his or her services by the Company or by a
Subsidiary, nor to interfere in any way with his or her right or that of his or
her employer to terminate his or her employment or other services at any time.
The conditions to apply to the exercise of an Option in the event an Optionee
ceases to be employed by the Company or a Subsidiary for any reason shall be
determined by the Committee or specified in the written agreement evidencing the
Option.

         (e) Subject to the provisions of the applicable Option, no Optionee or
Designated Beneficiary shall have any rights as a stockholder with respect to
any shares of Common Stock to be distributed under the Plan until he or she has
become the holder thereof.

         (f) The validity, construction, interpretation, administration and
effect of the Plan and of its rules and regulations, and rights relating to the
Plan, shall be determined solely in accordance with the laws of the State of
Texas (without giving effect to its conflicts of laws rules) and, to the extent
applicable, federal law.

         (g) The Plan was originally effective on May 4, 2001. No Options may be
granted under the Plan after May 3, 2011; however, all previous Options issued
that have not expired under their original terms or will not then expire at the
time the Plan expires will remain outstanding.

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         (h) Restrictions on Issuance of Shares

                  (1) The Company shall not be obligated to sell or issue any
         Shares upon the exercise of any Option granted under the Plan unless:
         (i) the shares pertaining to such Option have been registered under
         applicable federal and state securities laws or are exempt from such
         registration; (ii) the prior approval of such sale or issuance has been
         obtained from any state regulatory body having jurisdiction; and (iii)
         in the event the Common Stock has been listed on any exchange, the
         shares pertaining to such Option have been duly listed on such exchange
         in accordance with the procedure specified therefor. The Company shall
         be under no obligation to effect or obtain any listing, registration,
         qualification, consent or approval with respect to shares pertaining to
         any Option granted under the Plan. If the shares to be issued upon the
         exercise of any Option granted under the Plan are intended to be issued
         by the Company in reliance upon the exemptions from the registration
         requirements of applicable federal and state securities laws, the
         recipient of the Option, if so requested by the Company, shall furnish
         to the Company such evidence and representations, including an opinion
         of counsel, satisfactory to it, as the Company may reasonably request.

                  (2) The Company shall not be liable for damages due to a delay
         in the delivery or issuance of any stock certificates for any reason
         whatsoever, including, but not limited to, a delay caused by listing,
         registration or qualification of the shares of Common Stock pertaining
         to any Option granted under the Plan upon any securities exchange or
         under any federal or state law or the effecting or obtaining of any
         consent or approval of any governmental body.

         (i) The Board of Directors or Committee may impose such other
restrictions on the ownership and transfer of shares issued pursuant to the Plan
as it deems desirable; any such restrictions shall be set forth in the
applicable agreement.

         (j) The Board of Directors may amend, abandon, suspend or terminate the
Plan or any portion thereof at any time in such respects as it may deem
advisable in its sole discretion.

         (k) To preserve an Optionee's rights under an Option in the event of a
change in control of the Company or an Optionee's separation from employment,
the Committee in its discretion may, at the time an Option is made or any time
thereafter, take one or more of the following actions: (i) provide for the
acceleration of any time period relating to the exercise of the Option, (ii)
provide for the purchase of the Option, upon the Optionee's request, for an
amount of cash or other property that could have been received upon the exercise
or realization of the Option had the Option been currently exercisable or
payable, (iii) adjust the terms of the Option in a manner determined by the
Committee to reflect the change in control or to prevent the imposition of an
excise tax under section 280G(b) of the Code, (iv) cause the Option to be
assumed, or new rights substituted therefor, by another entity, or (v) make such
other provision as the Committee may consider equitable and in the best
interests of the Company.

         IN WITNESS WHEREOF, the Company has caused the Plan to be executed on
its behalf as of the 4th day of May 2001.

                                                  ZIXIT CORPORATION

                                                  By: /s/ Ronald A. Woessner
                                                     ---------------------------

                                                  Title:   S.V.P.
                                                        ------------------------

                                                  Date:    5/7/01
                                                       -------------------------

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                                                                   EXHIBIT 10.24

[CHASE LOGO]

                      EIGHTH AMENDMENT TO CREDIT AGREEMENT

         THIS EIGHTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment") dated
effective as of February 12, 2001 (the "Effective Date"), is among CRAFTMADE
INTERNATIONAL, INC., a Delaware corporation, DUROCRAFT INTERNATIONAL, INC., a
Texas corporation, TRADE SOURCE INTERNATIONAL, INC., a Delaware corporation,
DESIGN TRENDS, LLC, a Delaware limited liability company (collectively, jointly
and severally, "Borrower"), C/D/R INCORPORATED, a Delaware corporation
("C/D/R"), THE CHASE MANHATTAN BANK (successor by merger to Chase Bank of Texas,
National Association, formerly named Texas Commerce Bank National Association),
as agent ("Agent"), and THE CHASE MANHATTAN BANK and THE FROST NATIONAL BANK
(collectively, "Lenders").

                              PRELIMINARY STATEMENT

         Agent, Lenders and Borrower are parties to a Credit Agreement dated as
of May 30, 1996, as amended by a First Amendment dated as of October 8, 1996, a
Second Amendment dated as of November 1, 1997, a Third Amendment dated as of
July 1, 1998, a Fourth Amendment dated as of April 2, 1999, a Fifth Amendment
(in letter form) dated as of August 11, 1999, a Sixth Amendment dated as of
November 12, 1999 and a Seventh Amendment dated as of May 12, 2000 (as so
amended, the "Credit Agreement"). All capitalized terms defined in the Credit
Agreement and not otherwise defined in this Amendment shall have the same
meanings herein as in the Credit Agreement.

         Agent, Lenders and Borrower have agreed to amend the Credit Agreement
to modify the terms of the existing indebtedness and provide for additional
credit, subject to the terms and conditions of the Credit Agreement as amended
hereby and to effect certain other desired changes.

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties, Agent, Lenders and Borrower hereby agree as
follows:

         Section 1. Deletion of Definitions. The following definitions and all
references and meanings thereto are hereby deleted in their entirety from the
Credit Agreement:

         "Closing Date."

         "Term Loan Commitment."

         "Term Loan Maturity Date."

         "Term Loan Notes."

         "Term Loans."

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         Section 2. Amendment of Definitions. The following definitions in
Section 1 of the Credit Agreement are amended to read in their entirety as
follows:

         ""Advance" means an advance of funds from time to time by Lenders to
         Borrower under the Revolving Credit Commitment."

         ""Applicable Rate" means:

                  (a) during the period that an Advance is a Prime Rate Advance,
         the Prime Rate minus 1/2 of one percent (0.5%); and

                  (b) during the period that an Advance is a Eurodollar Advance,
         the Eurodollar Rate plus (i) at all times when the most recent
         compliance certificate delivered in accordance with SECTION 7.1(c)
         shows that the Consolidated Debt to Consolidated Tangible Net Worth
         Ratio is less than 2.0 to 1.0, one and one-half percent (1.50%), (ii)
         at all times when the most recent compliance certificate delivered in
         accordance with SECTION 7.1(c) shows that the Consolidated Debt to
         Consolidated Tangible Net Worth Ratio is greater than or equal to 2.0
         to 1.0, but less than 2.5 to 1.0, one and three quarters- percent
         (1.75%), and (iii) at all times when the most recent compliance
         certificate delivered in accordance with SECTION 7.1(c) shows that the
         Consolidated Debt to Consolidated Tangible Net Worth Ratio is greater
         than or equal to 2.5 to 1.0, two and one-quarter percent (2.25%),
         provided, however, that the initial rate as of the date of the Eighth
         Amendment to this Agreement shall be the Eurodollar Rate plus two and
         one-quarter percent (2.25%) until such time as the most recent
         compliance certificate shall have been delivered in accordance with
         SECTION 7.1(c)."

         ""Commitments" shall mean the Revolving Credit Commitments, and
         Commitments means such obligation of all Lenders, as such amounts may
         be reduced pursuant to SECTION 2.7 or otherwise."

         ""EBITDA" means, for any period, the sum of net earnings (excluding net
         earnings or distributions of any entity in which Borrower has a
         minority interest, whether or not any distributions have been paid by
         such entity to Borrower) (plus or minus any material non-recurring
         charges or credits) of the Borrower and its Subsidiaries on a
         consolidated basis plus each of the following, to the extent actually
         deducted in arriving at such net earnings: (a) depreciation and
         amortization, (b) Interest Expense, and (c) Tax Expense."

         ""Fixed Charge Coverage Ratio" means (a)(i) EBITDA, less (ii) cash Tax
         Expense divided by (b)(i) principal payments made on Debt (including,
         without limitation, prepayments of Mortgage Debt and excluding payments
         on the Revolving Credit Loans), plus (ii) Interest Expense, plus (iii)
         cash dividends plus (iv) capital expenditures. With respect to both
         clauses (a) and (b) above, such amounts shall be first determined on
         March 31, 2001 for

EIGHTH AMENDMENT TO CREDIT AGREEMENT - Page 2
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         the most recent four quarters then ending; and thereafter shall be
         determined at the end of each succeeding fiscal quarter for the four
         consecutive quarters then ending."

         ""Revolving Credit Commitment" shall mean, for each Lender, the
         obligation of such Lender to make Revolving Credit Loans in an
         aggregate principal amount at any one time outstanding up to but not
         exceeding $9,500,000 (in each case as the same may be reduced from time
         to time pursuant to Section 2.7). The aggregate principal amount of the
         Revolving Credit Commitments is $19,000,000."

         Section 3. Amendment of Section 2.1. Section 2.1 is hereby amended to
read in its entirety as follows:

         "Section 2.1 Advances. Subject to the terms and conditions of this
         Agreement, each Lender severally agrees to make one or more Advances to
         Borrower from time to time from the date hereof to and including the
         Revolving Credit Termination Date under the Revolving Credit Commitment
         provided that (a) the aggregate outstanding amount of all Advances
         shall not at any time exceed the lesser of the Commitments or the
         Borrowing Base and (b) the outstanding Advances supported only by the
         Eligible Inventory component of the Borrowing Base (without giving
         effect to clause (c) of the definition thereof) shall not at any time
         exceed fifty percent (50%) of the aggregate outstanding amount of all
         Advances. Subject to the foregoing limitations, and the other terms and
         provisions of this Agreement, Borrower may borrow, repay, and, solely
         with respect to the Revolving Credit Commitment, reborrow hereunder."

         Section 4. Amendment of Section 2.2. Section 2.2 is hereby amended in
its entirety to read as follows:

         "Section 2.2. The Notes. The obligation of Borrower to repay the
         Advances shall be evidenced by the Notes executed and delivered by
         Borrower, substantially in the form of Exhibit A, payable to the order
         of each Lender, in the aggregate principal amount of the Commitments
         and dated the date of the Eighth Amendment to this Agreement."

         Section 5. Amendment of Section 2.3. Section 2.3 of the Credit
Agreement is hereby amended to read in its entirety:

         "Section 2.3 Repayment of Advances. Borrower shall pay the unpaid
         principal amounts of all Revolving Credit Loans on the Revolving Credit
         Maturity Date."

         Section 6. Amendment of Section 8.4. Section 8.4 of the Credit
Agreement is hereby amended to read in its entirety as follows:

         "Section 8.4 Restricted Payments. Without the prior written consent of
         the Agent and the Lenders, Borrower will not declare or pay any
         dividends or make any other payment or distribution (in cash, property,
         or obligations) on account of its capital stock or redeem, purchase,
         retire, or otherwise acquire any of its capital stock, including the
         purchase or acquisition of any treasury stock, or set apart any money
         for a sinking or other analogous

EIGHTH AMENDMENT TO CREDIT AGREEMENT - Page 3
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         fund for any dividend or other distribution on its capital stock, or
         grant or issue any capital stock or any warrant, right, or option
         pertaining to its capital stock, or issue any security convertible into
         capital stock, or permit any of its Subsidiaries to purchase or
         otherwise acquire any capital stock of Borrower or another Subsidiary;
         provided, however, that so long as no Potential Default or Event of
         Default exists or would result, Borrower may pay dividends on its
         capital stock, in an amount not to exceed the sum of $428,000 in any
         fiscal quarter (as reflected in the most recent compliance certificate
         delivered by Borrower to Agent in accordance with SECTION 7.1(c) of
         this Agreement), and in the aggregate $1,710,000 during any fiscal year
         (as confirmed by the annual financial statements delivered by Borrower
         to Agent in accordance with SECTION 7.1(a) of this Agreement, so long
         as the payment of any such dividend would not create or result in the
         existence of an Event of Default or Potential Default and so long as
         Borrower remains in compliance with the Fixed Charge Coverage Ratio as
         evidenced by a covenant compliance certificate submitted to Agent
         showing the effect of any payment of dividends, provided, however, that
         the restrictions under this Section shall not apply to shares issued
         pursuant to the Craftmade International, Inc. 1999 Stock Option Plan."

         Section 7. Amendment of Section 9.1. Section 9.1 of the Credit
Agreement is hereby amended to read in its entirety as follows:

         "Section 9.1 Consolidated Debt to Consolidated Tangible Net Worth
         Ratio. Borrower will maintain a Consolidated Debt to Consolidated
         Tangible Net Worth Ratio of not greater than 3.1 to 1.0 at all times
         during the period from and including January 1, 2001 to June 30, 2001,
         and of not greater than 3.0 to 1.0 at all times during the period from
         and including June 30, 2001 and thereafter."

         Section 8. Amendment of Section 9.2. Section 9.2 of the Credit
Agreement is hereby amended to read in its entirety as follows:

         "Section 9.2 Intentionally Deleted."

         Section 9. Amendment of Section 9.4. Section 9.4 of the Credit
Agreement is hereby amended to read in its entirety as follows:

         "Section 9.4 Fixed Charge Coverage Ratio. Borrower will at all times
         maintain a Fixed Charge Coverage Ratio of greater than .9 to 1.0, which
         shall be first determined on March 31, 2001 for the most recent four
         quarters then ending; and thereafter such ratio shall be determined at
         the end of each succeeding fiscal quarter for the four consecutive
         quarters then ending."

         Section 10. Amendment and Restatement of Exhibits. Exhibit A-1 to the
Credit Agreement is hereby amended and restated in its entirety to be in the
form of Exhibit A to this Amendment. Exhibits A-2 and F-1 are hereby deleted as
Exhibits to the Credit Agreement. Exhibits C and F to the Credit Agreement are
hereby amended and restated in their entireties to be in the form of Exhibits C
and F, respectively, to this Amendment.

EIGHTH AMENDMENT TO CREDIT AGREEMENT - Page 4
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         Section 11. Representations; No Event of Default. Borrower hereby
represents and warrants to Agent and Lenders that:

-        the execution, delivery and performance of this Amendment and any and
         all other Loan Documents executed and delivered in connection with this
         Amendment have been authorized by all requisite corporate (or company,
         as applicable) action on the part of Borrower and Guarantor and will
         not violate the certificate of incorporation or articles of
         incorporation (or other charter documents), as applicable, or bylaws of
         any of Borrower or Guarantor; and

-        neither the certificate of incorporation or articles of incorporation
         (or other charter documents), as applicable, nor bylaws of any of
         Borrower or Guarantor have been amended or revoked since May 30, 1996
         (or, in the case of Design Trends, ever amended), except as certified
         in writing to Agent and Lenders by Borrower or Guarantor
         contemporaneously with the execution and delivery of this Amendment;
         and

-        the representations and warranties contained in the Credit Agreement,
         as amended hereby, and any other Loan Document, are true and correct on
         and as of the date hereof as though made on and as of the date hereof;
         and

-        as of the date of this Amendment, no Event of Default has occurred and
         is continuing and no event or condition has occurred that with the
         giving of notice or lapse of time or both would be an Event of Default
         (and in this connection Lenders hereby waive the Events of Default that
         occurred prior to the date of this Agreement (a) under Section 9.1 and
         (b) under Section 9.4); and

-        each of Borrower and Guarantor is in full compliance with all covenants
         and agreements contained in the Credit Agreement, as amended hereby.

         Section 12. Conditions Precedent. The effectiveness of this Amendment
shall be subject to the following conditions precedent:

-        Each Lender shall have received one promissory note of Borrower payable
         to the order of such Lender, in substantially the form of EXHIBIT A
         hereto, with appropriate completion, which promissory notes shall be in
         modification, increase and replacement of (but not in extinguishment
         of) those certain promissory notes payable to such Lender in the form
         of EXHIBIT A-1 AND EXHIBIT A-2 to the Credit Agreement (before giving
         effect to this Amendment), and dated as of May 12, 2000 and in the
         stated maximum principal amount of $8,000,000 and $1,5000,000,
         respectively; and

-        Lenders shall have received a Secretary's Certificate from the
         secretary or assistant secretary of Borrower and Guarantor certifying
         and attaching appropriate corporate resolutions regarding the
         transactions contemplated hereby, and statements of incumbency; and

EIGHTH AMENDMENT TO CREDIT AGREEMENT - Page 5
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-        Lenders shall have received such other documents incidental and
         appropriate to the transactions provided for herein as Lenders or their
         counsel may reasonably request, and all such documents shall be in form
         and substance reasonably satisfactory to Lenders; and

-        All legal matters incident to the consummation of the transactions
         contemplated hereby shall be reasonably satisfactory to special counsel
         for Lenders retained at the expense of Borrower.

         Section 13. Guaranty. C/D/R hereby acknowledges, consents and agrees to
this Amendment and (a) acknowledges that its obligations under that certain
Guaranty Agreement executed by it effective as of May 30, 1996, in favor of
Agent and Lenders, includes a guaranty of all of the obligations, indebtedness
and liabilities of Borrower under the Credit Agreement as amended by this
Amendment (specifically including the increased principal amount of $19,000,000
potentially available under the Credit Agreement), (b) represents to Agent and
Lenders that such Guaranty remains in full force and effect and shall continue
to be its legal, valid and binding obligation, enforceable against it in
accordance with its terms, and (c) agrees that this Amendment and all documents
executed in connection herewith do not operate, and that the prior amendments to
the Credit Agreement and all documents executed in connection therewith have not
operated, to reduce or discharge its obligations under such Guaranty.

         Section 14. Ratification. Borrower acknowledges that each of the Loan
Documents is in all respects ratified and confirmed, and all of the rights,
powers and privileges created by this Amendment or under the Loan Documents are
ratified, extended, carried forward and remain in full force and effect except
as the Credit Agreement is amended by this Amendment. Except as expressly
amended by this Amendment, the Credit Agreement is and shall be unchanged.

         Section 15. Liens and Security Interests. Borrower hereby extends and
renews the Liens and security interests previously granted to Agent and Lenders
and agrees that this Amendment shall in no manner affect or impair any Liens or
security interests previously granted. Borrower hereby acknowledges that such
Liens and security interests (a) secure all Debt to Lenders, specifically
including the revolving credit facility increased by this Amendment, and (b) are
valid and existing.

         Section 16. Counterparts. This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed an original and all of which taken
together shall constitute but one and the same agreement.

         Section 17. Joint and Several; Loan Documents. Any and all obligations
of Borrower under the Loan Documents are joint and several, whether or not
expressly so stated. This Amendment shall be included within the definition of
"Loan Documents" as used in the Agreement. The "Agreement" as used in the Credit
Agreement is a reference to the Credit Agreement as amended by this Amendment.

         Section 18. Enforceability. Borrower and Guarantor hereby represent and
warrant that, as of the date of this Amendment, the Credit Agreement and all
documents and instruments

EIGHTH AMENDMENT TO CREDIT AGREEMENT - Page 6
<PAGE>   7

executed in connection therewith are in full force and effect and that there are
no claims, counterclaims, offsets or defenses to any of such documents or
instruments.

         Section 19. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND AS APPLICABLE,
THE LAWS OF THE UNITED STATES OF AMERICA.

         THIS WRITTEN AMENDMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE A "LOAN
AGREEMENT" AS DEFINED IN SECTION 26.02(a) OF THE TEXAS BUSINESS & COMMERCE CODE,
AND REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.

         THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed effective as of the Effective Date.

                  BORROWER:            CRAFTMADE INTERNATIONAL, INC.

                                       By:  /s/ James R. Ridings
                                          ------------------------------
                                       Name:    James R. Ridings
                                       Title:   Chief Executive Officer

                                       DUROCRAFT INTERNATIONAL, INC.

                                       By:  /s/ James R. Ridings
                                          -------------------------------
                                       Name:    James R. Ridings
                                       Title:   Chief Executive Officer

                                       TRADE SOURCE INTERNATIONAL, INC.

                                       By:  /s/ James R. Ridings
                                          -------------------------------
                                       Name:    James R. Ridings
                                       Title:   Chief Executive Officer

EIGHTH AMENDMENT TO CREDIT AGREEMENT - Page 7
<PAGE>   8

                                       DESIGN TRENDS, LLC

                                       By:  /s/ James R. Ridings
                                          --------------------------------
                                       Name:    James R. Ridings
                                       Title:   Chief Executive Officer

                  GUARANTOR:           C/D/R INCORPORATED

                                       By:  /s/ Clifford Crimings
                                          --------------------------------
                                       Name:    Clifford Crimings
                                       Title:   President

                  LENDERS:             THE CHASE MANHATTAN BANK, as Agent and
                                       as Lender

                                       By:  /s/ Jerry G. Petrey
                                          --------------------------------
                                       Name:    Jerry G. Petrey
                                       Title:   Vice President

                                       THE FROST NATIONAL BANK

                                       By:  /s/ D. Michael Randall
                                          --------------------------------
                                       Name:    D. Michael Randall
                                       Title:   Senior Vice President

EIGHTH AMENDMENT TO CREDIT AGREEMENT - Page 8
<PAGE>   9
                                                                       Exhibit A

                              REVOLVING CREDIT NOTE

$9,500,000.00                    Dallas, Texas                 February __, 2001

         FOR VALUE RECEIVED, the undersigned CRAFTMADE INTERNATIONAL, INC., a
Delaware corporation, DUROCRAFT INTERNATIONAL, INC., a Texas corporation, DESIGN
TRENDS, LLC and TRADE SOURCE INTERNATIONAL, INC., a Delaware corporation
(jointly and severally, "Maker"), hereby promise to pay to the order of
("Payee"), at the offices of Agent at 2200 Ross Avenue, P.O. Box 660197, Dallas,
Dallas County, Texas 75266-0197, in lawful money of the United States of
America, the principal sum of NINE MILLION FIVE HUNDRED THOUSAND DOLLARS AND
00/100ths ($9,500,000.00), or so much thereof as may be advanced and outstanding
hereunder, together with interest on the outstanding principal balance as
hereinafter described.

         This Note is one of the Notes provided for in that certain Credit
Agreement dated as of May 30, 1996 among Maker, The Chase Manhattan Bank
(successor by merger to Chase Bank of Texas, National Association, formerly
named Texas Commerce Bank National Association) as Agent, and the Lenders
parties thereto (as the same may be amended or otherwise modified from time to
time, including most recently pursuant to that certain Eighth Amendment to
Credit Agreement of even date herewith, the "Agreement"). Capitalized terms not
otherwise defined herein shall have the same meanings as set forth in the
Agreement. Reference is hereby made to the Agreement for provisions affecting
this Note, including, without limitation, provisions regarding the limitation of
interest charged hereunder, the Collateral securing this Note, Potential
Defaults and Events of Default and Payee's rights arising as a result of the
occurrence thereof.

         Subject to the terms of the Agreement, the outstanding principal
balance hereunder shall bear interest prior to maturity at a varying rate per
annum that shall from day to day be equal to the lesser of (a) the Maximum Rate
or (b) the Applicable Rate, each such change in the rate of interest charged
hereunder to become effective, without notice to Maker, on the effective date of
each change in the Applicable Rate or the Maximum Rate, as the case may be;
provided, however, that if at any time the rate of interest specified in clause
(b) preceding shall exceed the Maximum Rate, thereby causing the interest rate
thereon to be limited to the Maximum Rate, then any subsequent reduction in the
Applicable Rate shall not reduce the rate of interest thereon below the Maximum
Rate until such time as the aggregate amount of interest accrued thereon equals
the aggregate amount of interest which would have accrued thereon if the
interest rate specified in clause (b) preceding shall at all times been in
effect. All outstanding principal advanced under this Note shall be due and
payable on the Revolving Credit Maturity Date. Accrued and unpaid interest on
this Note shall be due and payable on the last Business Day of each month,
commencing February 28, 2001, at the end of each Interest Period and on the
Revolving Credit Maturity Date. All past due principal and interest shall bear
interest at the Default Rate.

         Interest on the indebtedness evidenced by this Note shall be computed
on the basis of a year of 360 days and the actual number of days elapsed
(including the first day but excluding the last day) unless such calculation
would result in a usurious rate, in which case interest shall be calculated on
the basis of a year of 365 or 366 days, as the case may be.

<PAGE>   10

         If the holder hereof expends any effort in any attempt to enforce
payment of all or any part or installment of any sum due the holder hereunder,
or if this Note is placed in the hands of an attorney for collection, or if it
is collected through any legal proceedings, then Maker agrees to pay all costs,
expenses and fees incurred by the holder, including reasonable attorneys' fees.

         This Note shall be governed by and construed in accordance with the
laws of the State of Texas and the applicable laws of the United States of
America. This Note is performable in Dallas County, Texas.

         Maker and each surety, guarantor, endorser and other party ever liable
for payment of any sums of money payable on this Note jointly and severally
waive notice, presentment, demand for payment, protest, notice of protest and
non-payment or dishonor, notice of acceleration, notice of intent to accelerate,
notice of intent to demand, diligence in collecting, grace, and all other
formalities of any kind, and consent to all extensions without notice for any
period or periods of time and partial payments, before or after maturity, and
any impairment of any collateral securing this Note, all without prejudice to
the holder. The holder shall similarly have the right to deal in any way, at any
time, with one or more of the foregoing parties without notice to any other
party, and to grant any such party any extensions of time for payment of any of
said indebtedness, or to release or substitute part or all of the collateral
securing this Note, or to grant any other indulgences or forbearances
whatsoever, without notice to any other party and without in any way affecting
the personal liability of any party hereunder.

         Maker hereby authorizes the holder hereof to record in its records all
advances made to Maker hereunder and all payments made on account of the
principal hereof, which records shall be prima facie evidence as to the
outstanding principal amount of this Note; provided, however, that any failure
by the holder hereof to make any such records shall not limit or otherwise
affect the obligations of Maker under the Agreement or this Note.

         This Note is made and given in modification and replacement of (but not
in extinguishment of) that certain promissory note executed and delivered by
Maker, payable to the order of Payee, dated as of July 1, 1998, and in the
stated maximum principal amount of $7,000,000, as amended by that certain
promissory note executed and delivered by Maker, payable to the order of Payee
dated November 12, 1999, and in the stated maximum principal amount of
$8,000,000, as amended by that certain promissory note executed and delivered by
Maker, payable to the order of Payee dated May 12, 2000, and in the stated
maximum principal amount of $8,000,000 and as amended by that certain promissory
note executed and delivered by Maker, payable to the order of Payee dated May
12, 2000, and in the stated maximum principal amount of $1,500,000.

         PURSUANT TO SECTION 346.004 OF THE TEXAS FINANCE CODE, CHAPTER 346 OF
THE TEXAS FINANCE CODE SHALL NOT APPLY TO THIS NOTE, OR ANY ADVANCE OR LOAN
EVIDENCED BY THIS NOTE.

         THIS WRITTEN AGREEMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS AS
WRITTEN, REPRESENTS THE FINAL AGREEMENT BETWEEN MAKER AND PAYEE AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF MAKER AND PAYEE. THERE ARE NO ORAL AGREEMENTS BETWEEN MAKER AND PAYEE.

PROMISSORY NOTE - Page 2
<PAGE>   11

                                      CRAFTMADE INTERNATIONAL, INC.

                                      By:
                                         --------------------------------------
                                                 Name: James R. Ridings
                                                 Title: Chief Executive Officer

                                      DUROCRAFT INTERNATIONAL, INC.

                                      By:
                                         --------------------------------------
                                               Name:  James R. Ridings
                                               Title:  Chief Executive Officer

                                      TRADE SOURCE INTERNATIONAL, INC.

                                      By:
                                         --------------------------------------
                                               Name:  James R. Ridings
                                               Title:  Chief Executive Officer

                                      DESIGN TRENDS, LLC

                                      By:
                                         --------------------------------------
                                               Name:
                                                      -------------------------
                                               Title:
                                                        -----------------------

PROMISSORY NOTE - Page 3
<PAGE>   12
                                                                      Exhibit C

                              BORROWING BASE REPORT

The Chase Manhattan Bank, as Agent
Attention:  Jerry G. Petrey, Vice President
500 East Border Street
P.O. Box 250
Arlington, Texas  76004

Gentlemen:

         This Borrowing Base Report, for the month ending ____________, ____, is
executed and delivered pursuant to that certain Credit Agreement (the "Credit
Agreement") dated as of May 30, 1996, as amended, among Craftmade International,
Inc., DuroCraft International, Inc., Trade Source International, Inc., Design
Trends, LLC, The Chase Manhattan Bank, as Agent, and the Lenders parties
thereto. All capitalized terms used therein have the meanings assigned to them
in the Credit Agreement.

         The undersigned, an authorized officer of Borrower, on behalf of
Borrower hereby represents and warrants to Agent and Lenders that:

         - all information contained herein is true, correct and complete; and

         - the total Eligible Accounts and Eligible Inventory referred to below
represent the Eligible Accounts and Eligible Inventory that qualify for purposes
of determining the Borrowing Base under the Credit Agreement; and

          - attached hereto as Exhibit "A" is a true, correct and complete
Accounts Receivable Aging Report dated as of the date hereof.

         1.       Eligible Accounts

<TABLE>
<S>                                                                                     <C>
         (a)      Gross Accounts                                                        $__________
         (b)      Less:

                  (i)      Accounts over 60
                           days past due                                                $__________
                  (ii)     Accounts, not already included in (i), of any
                           account debtor whose accounts total $150,000.00 or
                           more if 20% of the dollar amount of all accounts of
                           such account debtor are 60 days or more past due.
                           [Applicable only if 18% or more of Borrower's total
                           Accounts are 60 days or more past due. % currently
                           past due _________].                                         $__________
</TABLE>

<PAGE>   13

<TABLE>
<S>                                                                                     <C>
                  (iii)    Affiliate Accounts                                           $__________
                  (iv)     Accounts subject to setoff or dispute                        $__________
                  (v)      Other ineligibles                                            $__________
                  (vi)     Total Ineligible Accounts
                           (sum of lines (i)-(v))                                       $__________
         (c)      Total Eligible Accounts
                  (line (a) minus line (b)(vi))               $__________ x 80% =       $__________

         2.       Eligible Inventory

         (a)      Gross finished inventory
                  (at lesser of cost or market)                                         $__________

         (b)      Gross unassembled lamp parts
                  (at lesser of cost or market)                                         $__________

         (c)      Total Gross Inventory
                  (sum of (a) + (b))                                                    $__________

         (d)      Less:  Ineligibles                                                    $__________

         (e)      Total Eligible Inventory
                  (line (c) minus line (d))
                  [line 2(e) may not exceed
                  line 1(c)]                                  $__________ x 55% =       $__________

         3.       Total Borrowing Base

                  (line 1(c) plus line 2(e)                                             $__________

         4.       Outstanding principal amount
                  of Advances                                                           $__________

         5.       Net Availability

                  (Lesser of Commitments [minus
                  outstanding face amount of Letters
                  of Credit] or Borrowing Base
                  (line 3)) minus line 4                                                 $__________
</TABLE>

         If the amount listed on line 5 is a negative number, then Borrower will
promptly repay such amount plus accrued interest thereon to Agent, for the
ratable benefit of Lenders, in accordance with the Credit Agreement.

         The undersigned authorized officer of Borrower further represents and
warrants on behalf

BORROWING BASE REPORT - Page 2
<PAGE>   14

of Borrower to Agent and Lenders that the representations and warranties
contained in Article 6 of the Credit Agreement and in each of the other Loan
Documents are true and correct on and as of the date of this report as if made
on and as of the date hereof, and that no Event of Default or Potential Default
has occurred and is continuing.

Date:
      ---------------------

                                    BORROWER:

                                    CRAFTMADE INTERNATIONAL, INC.

                                    By:
                                       ------------------------------
                                    Name:    Kathy Oher
                                    Title:   Chief Financial Officer

                                    DUROCRAFT INTERNATIONAL, INC.

                                    By:
                                       ------------------------------
                                    Name:    Kathy Oher
                                    Title:   Chief Financial Officer

                                    TRADE SOURCE INTERNATIONAL, INC.

                                    By:
                                       ------------------------------
                                    Name:    Kathy Oher
                                    Title:   Chief Financial Officer

                                    DESIGN TRENDS, LLC

                                    By:
                                        -----------------------------
                                    Name:
                                          ---------------------------
                                    Title:
                                          ---------------------------

BORROWING BASE REPORT - Page 3
<PAGE>   15

                                   EXHIBIT "A"
                                       TO
                              BORROWING BASE REPORT

                        Accounts Receivable Aging Report

<PAGE>   16
                                                                       Exhibit F

                         COVENANT COMPLIANCE CERTIFICATE

The Chase Manhattan Bank, as Agent
Attention:  Jerry G. Petrey, Vice President
500 East Border Street
P.O. Box 250
Arlington, Texas 76004

Gentlemen:

         This Covenant Compliance Certificate covers the period from __________,
___ to ___________, ____, and is delivered pursuant to that certain Credit
Agreement (the "Credit Agreement") dated as of May 30, 1996, as amended, among
Craftmade International, Inc., Design Trends, LLC, DuroCraft International,
Inc., Trade Source International, Inc., The Chase Manhattan Bank, as Agent, and
the Lenders parties thereto. All capitalized terms used herein, unless otherwise
defined herein, shall have the same meanings as set forth in the Credit
Agreement.

         The undersigned, an authorized officer of Borrower, does hereby certify
to Agent and Lenders that:

         1. No Default. To the best of the undersigned's knowledge, no Event of
         Default and no Potential Default has occurred and is continuing (or if
         an Event of Default or Potential Default has occurred and is
         continuing, Exhibit "A" attached hereto outlines the nature thereof and
         the action which is proposed to be taken by Borrower with respect
         thereto).

         2. Consolidated Debt to Consolidated Tangible Net Worth Ratio
         (calculated as provided for in Section 9.1 of the Credit Agreement)

<TABLE>
<S>                                                                             <C>
                  (a)      Consolidated Debt                                    $
                                                                                 -------------------------
                  (b)      Consolidated Tangible Net Worth                      $
                                                                                 -------------------------
                  (c)      Ratio [(a) divided by (b)]
                           (must not be greater than 3.1 to 1.0 before 06/30/01;
                           3.0 to 1.0 at 06/30/01 and thereafter)
                                                                                 --------------------------

         3. Funded Debt to EBITDA Ratio (calculated with respect to the twelve
         most recently completed calendar months):

                  (a)      Funded Debt                                          $
                                                                                 -------------------------

                           Net income
                           (after Minority Interest income)                     $
                                                                                 ------------------------
                           (after interest & tax expenses)                      $
                                                                                 -------------------------
                           Plus: Interest Expense                               $
                                                                                 -------------------------
                           Plus:  Tax Expense                                   $
                                                                                 -------------------------
                           Plus:  Depreciation                                  $
                                                                                 -------------------------
                           Plus:  Amortization                                  $
                                                                                 -------------------------
</TABLE>

<PAGE>   17

<TABLE>
<S>                                                                             <C>
                  (b)      Equals: EBITDA                                       $
                                                                                 -------------------------

                           Funded Debt to EBITDA Ratio
                           [(a) divided by (b)] (must not be greater
                              than 1.75 to 1.0 at 01/01/01 and thereafter)
                                                                                 -------------------------
</TABLE>

         4.       Applicable Rate Determination (applies only with respect to
                  Eurodollar Advances): The Applicable Rate shall be determined
                  according to the following under the Consolidated Debt to
                  Consolidated Tangible Net Worth Ratio, such ratio to be
                  measured at end of each calendar quarter for purposes of the
                  Eurodollar Advances.

<TABLE>
<CAPTION>
                      Consolidated Debt to Consolidated
                      Tangible Net Worth Ratio                                  Circle One
                      ---------------------------------                         ----------
<S>                                                                             <C>
                      Less than 2.0 to 1.0,
                      Applicable Rate equals                                    Eurodollar Rate + 1.5%

                      Greater than or equal to 2.0 to 1.0
                      but less than 2.5 to 1.0,
                      Applicable Rate equals                                    Eurodollar Rate + 1.75%

                      Greater than or equal to 2.5 to 1.0
                      Applicable Rate equals                                    Eurodollar Rate + 2.25%
</TABLE>

         5. Fixed Charge Coverage Ratio (calculated as provided in Section 9.4
of the Credit Agreement) - must be greater than .9 to 1.0 at 03/31/01 and at all
times thereafter; determined first for the fiscal quarter ending March 31, 2001
for the most recent four quarters then ending; thereafter determined at the end
of each succeeding fiscal quarter for the four consecutive quarters then ending.

<TABLE>
<S>                                                                             <C>
                           EBITDA                                               $
                                                                                 -------------------------
                           Less:  cash Tax Expense                              $
                                                                                 -------------------------
                           Equals:  Numerator (i.e., cash for coverage)         $
                                                                                 --------------------------

                           Principal payments on Debt (including
                           prepayments of Mortgage Debt,
                           excluding payments on the revolver loan)             $
                                                                                 -------------------------
                           Plus:  Interest Expense                              $
                                                                                 --------------------------
                           Plus:  cash dividends                                $
                                                                                 --------------------------
                           Plus:  capital expenditures                          $
                                                                                 --------------------------
                           Equals:  Denominator (i.e., charges)                 $
                                                                                 --------------------------

                           Numerator divided by denominator =                        ___________ to 1.0
</TABLE>

COVENANT COMPLIANCE CERTIFICATE - Page 2
<PAGE>   18

<TABLE>
<S>                                                                             <C>
         6.       a.  Total amount of dividends paid in the
                  fiscal quarter ending/ended ______, 200_.
                  (Not to exceed $428,000 quarterly)                            $
                                                                                 --------------------------

                  b.  Total amount of dividends paid year to date
                  (Not to exceed $1,710,000 in fiscal year)                     $
                                                                                 -------------------------

         7.       Borrower has not made any Treasury Stock Purchases in
         the fiscal quarter ending/ended ______, 200_.  Compliance (circle one)           Yes     No
</TABLE>

         Attached hereto are Schedules setting forth the calculations supporting
the computations set forth in Items 2, 3, 4 and 5 of this Covenant Compliance
Certificate. All information contained herein and on the attached Schedules is
true, complete and correct.

         IN WITNESS WHEREOF, the undersigned has executed this certificate
effective this ______ day of 200_.

                                         CRAFTMADE INTERNATIONAL, INC.

                                         By:
                                            -----------------------------------
                                              Name: Kathy Oher
                                              Title: Chief Financial Officer

                                         DUROCRAFT INTERNATIONAL, INC.

                                         By:
                                            -----------------------------------
                                              Name: Kathy Oher
                                              Title: Chief Financial Officer

                                         TRADE SOURCE INTERNATIONAL, INC.

                                         By:
                                            -----------------------------------
                                              Name: Kathy Oher
                                              Title: Chief Financial Officer

                                         DESIGN TRENDS, LLC

                                         By:
                                            -----------------------------------
                                              Name:
                                                    ---------------------------
                                              Title:
                                                       ------------------------

COVENANT COMPLIANCE CERTIFICATE - Page 3

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