Document:

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                                                                    EXHIBIT 10.9

                           RENEWAL AND EXTENSION AGREEMENT

      THIS RENEWAL AND EXTENSION AGREEMENT ("Agreement") is entered into this
31st day of March, 2005, by and between THE FROST NATIONAL BANK, a national
banking association ("Lender"), and CRAFTMADE INTERNATIONAL, INC., a Delaware
corporation ("Borrower").

                                    RECITALS:

      A. Lender is the sole owner and holder of that one certain Promissory Note
(the "Note") dated February 25, 2005, executed by Borrower and payable to the
order of Lender in the original principal amount of Three Million and No/100
Dollars ($3,000,000.00).

      B. The Note is secured by a Security Agreement dated November 6, 2001,
between Borrower and Lender, covering certain collateral as more particularly
described therein; a Security Agreement dated November 6, 2001, between Trade
Source International, Inc., a Delaware corporation, and Lender, covering certain
collateral as more particularly described therein; a Security Agreement dated
November 6, 2001, between Durocraft International, Inc., a Texas corporation,
and Lender, covering certain collateral as more particularly described therein;
and a Security Agreement dated November 6,2001, between Design Trends, LLC, a
Delaware limited liability company, and Lender, covering certain collateral as
more particularly described therein (collectively, the "Security Agreements").
The Note, Security Agreements and all modifications, renewals and extensions
described below are hereafter collectively referred to as the "Loan Documents."

      C. The Note matured in accordance with its terms on March 31, 2005.

      D. Borrower has requested that Lender modify certain provisions of the
Note, all as hereinafter provided, and in consideration thereof Borrower has
made certain agreements with Lender as hereinafter more fully set forth.

      E. Lender has agreed to such requests, subject to the terms and conditions
set forth herein.

      NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00) and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and agreed, Borrower and Lender hereby agree as follows:

      1. Acknowledgment of Outstanding Balance. The parties hereto acknowledge
that the outstanding principal balance of the Note as of the date hereof is
THREE MILLION AND NO/100 DOLLARS ($3,000,000.00).

      2. Renewal and Extension of Maturity. The Note is hereby renewed and the
maturity of the Note is hereby extended to May 31, 2005 (the "Revised Maturity
Date").

RENEWAL AND EXTENSION AGREEMENT

                                                                     Page 1 of 6
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      3. Required Payments. From and after the effective date of this Agreement,
principal and interest under the Note shall be due and payable as follows:

      Interest only on amounts outstanding hereunder shall be due and payable
      monthly as it accrues, on the last day of each and every calendar month,
      beginning April 30, 2005, and May 31, 2005, when the entire amount hereof,
      principal and interest then remaining unpaid, shall be then due and
      payable; interest being calculated on the unpaid principal each day
      principal is outstanding and all payments made credited to any collection
      costs and late charges, to the discharge of the interest accrued and to
      the reduction of the principal, in such order as Lender shall determine.

      4. Interest Rate. The annual interest rate provided for in the Note shall
continue to be charged from and after the effective date of this Agreement in
accordance with the Note.

      5. Usury. No provisions of this Agreement or the Loan Documents shall
require the payment or permit the collection, application or receipt of interest
in excess of the maximum permitted by applicable state or federal law. If any
excess of interest in such respect is herein or in any such other instrument
provided for, or shall be adjudicated to be so provided for herein or in any
such instrument, the provisions of this paragraph shall govern, and neither
Borrower nor any endorsers of the Note nor their respective successors, assigns
or personal representatives shall be obligated to pay the amount of such
interest to the extent it is in excess of the amount permitted by applicable
law. It is expressly stipulated and agreed to be the intent of Borrower and
Lender to at all times comply with the usury and other laws relating to the Loan
Documents and any subsequent revisions, repeals or judicial interpretations
thereof, to the extent applicable thereto. In the event Lender or other holder
of the Note ever receives, collects or applies as interest any such excess, such
amount which would be excessive interest shall be applied to the reduction of
the unpaid principal balance of the Note and, if upon such application the
principal balance of the Note is paid in full, any remaining excess shall be
forthwith paid to Borrower and the provisions of the Loan Documents shall
immediately be deemed reformed and the amounts thereafter collectible thereunder
reduced, without the necessity of execution of any new document, so as to comply
with the then applicable law, but so as to permit the recovery of the fullest
amount otherwise called for thereunder. In determining whether or not the
interest paid or payable under any specific contingency exceeds the maximum
interest allowed to be charged by applicable law, Borrower and Lender or other
holder hereof shall, to the maximum extent permitted under applicable law,
amortize, prorate, allocate and spread the total amount of interest throughout
the entire term of the Note so that the amount or rate of interest charged for
any and all periods of time during the term of the Note is to the greatest
extent possible less than the maximum amount or rate of interest allowed to be
charged by law during the relevant period of time. Notwithstanding any of the
foregoing, if at any time applicable laws shall be changed so as to permit a
higher rate or amount of interest to be charged than that permitted prior to
such change, then unless prohibited by law, references in the Note to
"applicable law" for purposes of determining the maximum interest or rate of
interest that can be charged shall be deemed to refer to such applicable law as
so amended to allow the greater amount or rate of interest.

RENEWAL AND EXTENSION AGREEMENT

                                                                     Page 2 of 6
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      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.

      7. Reaffirmation of Representations, Etc. Borrower hereby reaffirms to
Lender each of the representations, warranties, covenants and agreements of
Borrower set forth in the Loan Documents.

      8. Enforceable Obligations. Borrower hereby ratifies, affirms, reaffirms,
acknowledges, confirms and agrees that the Loan Documents represent valid and
enforceable obligations of Borrower, and Borrower further acknowledges that
there are no existing claims, defenses, personal or otherwise, or rights of
setoff whatsoever with respect to the Note, and Borrower further acknowledges
and represents that no event has occurred and no condition exists which would
constitute a default under the Loan Documents or this Agreement, either with or
without notice or lapse of time, or both.

      9. No Release of Liens. This Agreement in no way acts as a release or
relinquishment of the liens, security interests and rights (the "Liens") created
or evidenced by the Security Agreements. The Liens are hereby ratified and
confirmed by Borrower in all respects and are extended to secure (i) the
principal amount of the Note, (ii) all interest, charges and other sums payable
with respect thereto, and (iii) the performance of all other obligations under
the Security Agreements.

      16. Additional Renewals and Extensions. Notwithstanding anything to the
contrary contained herein or inferred hereby or in any other instrument executed
by Borrower or in any other action or conduct undertaken by Borrower on or
before the date hereof, the agreements, covenants and provisions contained
herein shall constitute the only evidence of Lender's consent to extend the
terms and provisions of the Loan Documents in the manner set forth herein. No
express or implied

RENEWAL AND EXTENSION AGREEMENT

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consent to any further extensions and/or modifications involving any of the
matters set forth in this Agreement or otherwise, shall be inferred or implied
from Lender's execution of this Agreement. Further, Lender's execution of this
Agreement shall not constitute a waiver (either express or implied) of the
requirement that any further extensions and/or modifications of the Loan
Documents shall require the express written approval of Lender, no such approval
(either express or implied) having been given as of the date hereof.

      17. Miscellaneous. (a) As modified hereby, the provisions of the Note and
the Security Agreements shall continue in full force and effect, and the
Borrower acknowledges and reaffirms its liability to Lender thereunder. In the
event of any inconsistency between this Agreement and the terms of the Loan
Documents, this Agreement shall govern.

      (b) Borrower hereby agrees to pay all costs and expenses incurred by
Lender in connection with the execution and administration of this Agreement and
the modification of the Loan Documents including, but not limited to, all
appraisal costs, title insurance costs, legal fees incurred by Lender and filing
fees.

      (c) Any default by Borrower in the performance of its obligations herein
contained shall constitute a default under the Loan Documents and shall allow
Lender to exercise all of its remedies set forth in the Loan Documents.

      (d) Lender does not, by its execution of this Agreement, waive any rights
it may have against any person not a party to this Agreement.

      (e) In case any of the provisions of this Agreement shall for any reason
be held to be invalid, illegal or unenforceable, such invalidity, illegality or
unenforceability shall not affect any other provision hereof, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.

      (f) This Agreement and the Loan Documents shall be governed and construed
according to the laws of the State of Texas (without regard to any conflict of
laws principles) and the applicable laws of the United States.

      (g) This Agreement shall be binding upon and inure to the benefit of
Lender, Borrower and their respective successors, assigns and legal
representatives.

      (h) Borrower hereby acknowledges and agrees that it has entered into this
Agreement of its own free will and accord and in accordance with its own
judgment after advice of its own legal counsel, and states that it has not been
induced to enter into this Agreement by any statement, act or representation of
any kind or character on the part of the parties hereto, except as expressly set
forth in this Agreement.

      (i) This Agreement may be executed in multiple counterparts, each of which
shall constitute an original instrument, but all of which shall constitute one
and the same agreement.

RENEWAL AND EXTENSION AGREEMENT

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      (j) Except as modified herein, all other terms, conditions and provisions
of Loan Documents shall remain in full force and effect as of the date thereof
and Borrower acknowledges and reaffirms its liability to Lender thereunder.

      EXECUTED as of the day and year first above written.

                                  BORROWER:

                                  CRAFTMADE INTERNATIONAL, INC.,
                                  a Delaware corporation

                                  By:
                                      -----------------------------------------
                                      James R. Ridings, President

                                  LENDER:

                                  THE FROST NATIONAL BANK,
                                  a national banking association

                                  By:
                                      -----------------------------------------
                                      D. Michael Randall, Senior Vice President

                       Guarantor Ratification of Agreement

      By executing this Agreement, DUROCRAFT INTERNATIONAL, INC., a Texas
corporation; TRADE SOURCE INTERNATIONAL, INC., a Delaware corporation; DESIGN
TRENDS, LLC, a Delaware limited liability company; and C/D/R INCORPORATED, a
Delaware Corporation as Guarantors of the indebtedness evidenced by the Note, as
set forth in Guaranty Agreements (collectively, the "Guarantys") dated November
6, 2001, hereby expressly agree (a) to all of the terms and provisions of this
Agreement, (b) to the continuing validity of the Guarantys and all duties and
obligations thereunder, (c) that their liability under the Guarantys shall not
be reduced, altered, limited, lessened or in any way affected by the execution
and delivery of this Agreement by the parties hereto, and (d) that the Guarantys
shall remain in full force and effect and enforceable in accordance with their
terms.

                                         DUROCRAFT INTERNATIONAL, INC.,
                                         a Texas corporation

                                         By: /s/ Brad Heimann
                                             ----------------------------------
                                             Brad Heimann, Secretary

RENEWAL AND EXTENSION AGREEMENT

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                                          TRADE SOURCE INTERNATIONAL, INC.,
                                          a Delaware corporation

                                          By: /s/ Brad Heimann
                                              ----------------------------------
                                              Brad Heimann, Secretary

                                          DESIGN TRENDS, LLC,
                                          a Delaware limited liability company

                                          By: Craftmade International, Inc.,
                                               a Delaware corporation, Manager

                                          By:
                                              ----------------------------------
                                              James R. Ridings, President

                                          C/D/R INCORPORATED,
                                          a Delaware corporation

                                          By: /s/ Clifford Crimmings
                                              ----------------------------------
                                              Clifford Crimmings, V.P. Marketing

RENEWAL AND EXTENSION AGREEMENT

                                                                     Page 6 of 6<PAGE>

                                                                   EXHIBIT 10.10

[LOGO]

                    ARBITRATION AND NOTICE OF FINAL AGREEMENT

To: Craftmade International, Inc., a Delaware corporation
    650 S. Royal Lane
    Coppell, Texas 75019
    (collectively, whether one or more, "Borrower")

As of the effective date of this Notice, Borrower and THE FROST NATIONAL BANK, a
national banking association ("Lender") have consummated a transaction pursuant
to which Lender has agreed to renew and extend an existing loan to Borrower, in
an aggregate amount up to $3,000,000.00 (collectively, whether one or more, the
"Loan").

                                  ARBITRATION

Upon written request of either Lender or Borrower, any controversy or claim
between or among the parties hereto including but not limited to those arising
out of or relating to the Loan, any of the loan documents or any related
agreements or instruments executed in connection with the Loan (the "Loan
Documents"), including any claim based on or arising from an alleged tort, shall
be determined by binding arbitration in accordance with the Federal Arbitration
Act (or if not applicable, the applicable state law), the Commercial Arbitration
Rules of the American Arbitration Association, and the "Special Rules" set forth
below unless both Lender and Borrower, in their respective sole discretion,
agree in writing to mediate the dispute prior to submitting to binding
arbitration. In the event of any inconsistency, the Special Rules shall control.
Judgment upon any arbitration award may be entered in any court having
jurisdiction. Any party to this Agreement may bring an action, including a
summary or expedited proceeding, to compel arbitration of any controversy or
claim to which this agreement applies in any court having jurisdiction over such
action. The party that requests arbitration has the burden to initiate the
arbitration proceedings pursuant to and by complying with the Commercial
Arbitration Rules of the American Arbitration Association and shall pay all
associated administrative and filing fees.

The arbitration shall be conducted in the City of Fort Worth, Tarrant County,
Texas and administered by the American Arbitration Association. All arbitration
hearings will be commenced within sixty (60) days of the written request for
arbitration, and if the arbitration hearing is not commenced within the sixty
(60) days, the party that requested arbitration shall have waived its election
to arbitrate. Nothing in this Agreement shall be deemed to (i) limit the
applicability of any otherwise applicable statutes of limitation or repose and
any waivers contained in this Agreement; or (ii) be a waiver by Lender of the
protection afforded to it by 12 U.S.C. Sec. 91 or any substantially equivalent
state law; or (iii) limit the right of Lender hereto (A) to exercise self help
remedies such as (but not limited to) setoff, or (B) to foreclose against any
real or personal property collateral in accordance with applicable law, or (C)
to obtain from a court provisional or ancillary remedies such as (but not
limited to) injunctive relief or the appointment of a receiver in accordance
with applicable law. Lender may exercise such self help remedies, foreclose upon
such property, or obtain such provisional or ancillary remedies before, during
or after the pendency of any arbitration proceeding brought pursuant to this
Agreement or any other Loan Document. At Lender's option, foreclosure under a
deed of trust or mortgage

<PAGE>

may be accomplished by any of the following: the exercise of a power of sale
under the deed of trust or mortgage, or by judicial sale under the deed of trust
or mortgage, or by judicial foreclosure. Neither this exercise of self help
remedies nor the institution or maintenance of an action for foreclosure or
provisional or ancillary remedies shall constitute a waiver of the right of any
party, including the claimant in any such action, to arbitrate the merits of the
controversy or claim occasioning resort to such remedies.

                       FACSIMILE DOCUMENTS AND SIGNATURES

For purposes of negotiating and finalizing the Written Loan Agreement (as
hereinafter defined), if this document or any document executed in connection
with the Loan is transmitted by facsimile machine ("fax"), it shall be treated
for all purposes as an original document. Additionally, the signature of any
party on this document transmitted by way of a facsimile machine shall be
considered for all purposes as an original signature. Any such faxed document
shall be considered to have the same binding legal effect as an original
document. At the request of any party, any faxed document shall be re-executed
by each signatory party in an original form.

                        WAIVER OF RIGHT TO TRIAL BY JURY

THE PARTIES TO THIS AGREEMENT HEREBY WAIVE TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE
OTHER TO ENFORCE THIS AGREEMENT, TO COLLECT DAMAGES FOR THE BREACH OF THIS
AGREEMENT, OR WHICH IN ANY OTHER WAY ARISE OUT OF, ARE CONNECTED TO OR ARE
RELATED TO THIS AGREEMENT OR THE SUBJECT MATTER OF THIS AGREEMENT. ANY SUCH
ACTION SHALL BE TRIED BY THE JUDGE WITHOUT A JURY.

                            NOTICE OF FINAL AGREEMENT

In connection with the Loan, Borrower and Lender and the undersigned guarantors
and other obligors, if any (collectively, whether one or more, "Other Obligors")
have executed and delivered and may hereafter execute and deliver certain
agreements, instruments and documents (collectively hereinafter referred to as
the "Written Loan Agreement").

It is the intention of Borrower, Lender and Other Obligors that this Notice be
incorporated by reference into each of the written agreements, instruments and
documents comprising the Written Loan Agreement. Borrower, Lender and Other
Obligors each warrants and represents that the entire agreement made and
existing by or among Borrower, Lender and Other Obligors with respect to the
Loan is and shall be contained within the Written Loan Agreement, as amended and
supplemented hereby, and that no agreements or promises exist or shall exist by
or among, Borrower, Lender and Other Obligors that are not reflected in the
Written Loan Agreement.

                                        2
<PAGE>

THE WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN 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 BETWEEN THE PARTIES.

Executed: March 31, 2005

BORROWER                                     LENDER:

CRAFTMADE INTERNATIONAL, INC.,               THE FROST NATIONAL BANK,
a Delaware corporation                       a national banking association

By:                                          By:
    --------------------------------             -------------------------------
    James R. Ridings, President                  D. Michael Randall, Senior Vice
                                                 President

OTHER OBLIGORS:

DESIGN TRENDS, LLC,
a Delaware limited liability company

By: Craftmade International, Inc.,
    a Delaware corporation, Manager

By:
    --------------------------------
    James R. Ridings, President

DUROCRAFT INTERNATIONAL, INC.,
a Texas corporation

By: /s/ Brad Heimann
    --------------------------------
    Brad Heimann, Secretary

                                       3
<PAGE>

TRADE SOURCE INTERNATIONAL, INC.,
a California corporation

By: /s/ Brad Heimann
    --------------------------------
    Brad Heimann, Secretary

C/D/R INCORPORATED,
a Delaware corporation

By: /s/ Clifford Crimmings
    ----------------------------------
    Clifford Crimmings, V.P. Marketing

                                        4

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