Document:

exv10w10

 

Exhibit 10.10

MODIFICATION, RENEWAL AND EXTENSION AGREEMENT

     THIS MODIFICATION, RENEWAL AND EXTENSION AGREEMENT
(“Agreement”) is entered effective as of the 31st day of May, 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 Revolving Promissory Note
(the “$20,000,000.00 Note”) dated November 6, 2001, executed by Borrower and payable
to the
order of Lender in the original principal amount of Twenty Million and No/100 Dollars
($20,000,000.00), as modified by a Modification, Renewal and Extension Agreement entered into
October 27, 2003 (the “Modification”).

     B. Borrower and Lender entered into a Loan Agreement, dated November 6, 2001, as
amended by a First Amendment to Loan Agreement effective as of August 13, 2003, as modified by
the Modification, as further amended by the Second Amendment to Loan Agreement, dated
June 14, 2004 and as further amended by a Third Amendment to Loan Agreement, dated
February 25, 2005 (collectively, the “Loan Agreement”).

     C. Lender is the sole owner and holder of that one certain Promissory Note (the
“$3,000,000.00 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).

     D. The $20,000,000.00 Note and $3,000,000.00 Note are 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
$20,000,000.00 Note,
$3,000,000.00 Note, Loan Agreement, Security Agreements and all modifications, renewals and
extensions described below are hereafter collectively referred to as the “Loan
Documents.”

     E. The $3,000,000.00 Note matured in accordance with its terms on March 31, 2005,
and was renewed and extended to May 31, 2005, as evidenced by a Renewal and Extension
Agreement.

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

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

      

			
	 	 	 
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     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 $3,000,000.00 Note as of the date hereof is THREE MILLION
AND NO/100 DOLLARS ($33,000,000.00) and the outstanding principal balance of the
$20,000,000.00 Note is TWENTY MILLION AND NO/100 DOLLARS ($20,000,000.00).

     2. Renewal and Extension of Maturity. The $3,000,000.00 Note is hereby renewed
and the maturity of the $3,000,000.00 Note is hereby extended to December 31, 2005.

     3. Required Payments. From and after the effective date of this Agreement, principal
and interest under the $3,000,000.00 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 June
30, 2005, and continuing regularly and monthly thereafter until December 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. Amendment of $3,000,000.00 Note. The $3,000,000.00 Note is hereby
amended to include the following section as a new Section 15:

	 	 	Revolving Line of Credit. Under the Loan Agreement, Borrower may request
advances and make payments hereunder from time to time, provided that it is
understood and agreed that the aggregate principal amount outstanding from time to
time hereunder shall not at any time exceed $3,000,000.00. The unpaid balance of
this Note shall increase and decrease with each new advance or payment hereunder, as
the case may be. This Note shall not be deemed terminated or canceled prior to the
date of its maturity, although the entire principal balance hereof may from time to
time be paid in full. Borrower may borrow, repay and re-borrow hereunder. All
payments and prepayments of principal or interest on this Note shall be made in
lawful money of the United States of America in immediately available funds, at the
address of Lender indicated above, or such other place as the holder of this Note
shall designate in writing to Borrower. If any payment of principal or interest on
this Note shall become due on a day which is not a Business Day (as hereinafter
defined), such payment shall be made on the next succeeding Business Day and any
such extension of time shall be included in computing interest in connection with
such payment. As used herein, the term “Business Day” shall mean any day
other than a Saturday, Sunday or any other day on which national banking
associations are authorized to be closed. The books and records of Lender shall be
prima facie

      

			
	 	 	 
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	 	 	evidence of all outstanding principal of and accrued and unpaid interest on this Note.

     5. Amendment to Loan Agreement. The first paragraph of Subsection (b)(ii) of Section
1 “Credit Facilities; Interest Rate Options” is hereby deleted in its entirety and replaced with
the following:

	 	 	 	(ii)  The lesser of (x) a rate equal to the London Interbank Offered Rate (as
defined below) plus the following percentage based on Borrower’s “Debt to Worth
Ratio” set forth in Paragraph 9(a) below:

	 	 	 
	Percentage
	 	Debt to Worth Ratio
	 
	 	 
	2.75%
	 	>=3.0 to 1.0
	2.25%
	 	<3.0 to 1.0

	 	 	 	as adjusted provided below, or (y) the highest rate permitted by applicable law,
but in no event shall interest exceed the maximum interest permitted by law
(“Libor Rate Option”). If applicable, such rate will be adjusted based upon
Lender’s receipt of Borrower’s Compliance Certificate as provided in Section 10(c)
of the Loan Agreement, with the “Debt to Worth Ratio” calculation,
	 
	 	 	 	As used herein, the “London Interbank Offered Rate” shall mean with respect to any
Interest Period (defined below), the rate of interest per annum (rounded to the
nearest 1/16 of 1%—and if the rate is equidistant to the lower and higher nearest
1/16 of 1%, rounded upwards to the nearest 1/16 of 1%) quoted in U.S. Dollars by the
British Bankers’ Association at approximately 11:00 a.m. London time on the first
day of such Interest Period on which deposits in immediately available funds are
offered to first class banks in the interbank eurodollar market (as determined by
Lender in its sole discretion), such deposits being for a three (3) month period
(“Interest Period”), and in amounts equal to or comparable to the amount of the
Advance. In the event that the London Interbank Offered Rate is no longer
published or reported as specified above, then the Lender shall use the rate of
interest published in The Wall Street Journal (Central Edition) in the
“Money Rates” section as the “London Interbank Offered Rates (LIBOR)” for a period
of time equal or comparable to the applicable Interest Period, as of five (5)
Business Days preceding the date of the Advance. Each determination by Lender of
the London Interbank Offered Rate shall be conclusive and binding, absent manifest
error, and may be computed using any reasonable averaging and attribution method.

     6. 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 $20,000,000.00 Note or $3,000,000.00 Note nor their respective successors,

      

			
	 	 	 
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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 $20,000,000.00 Note or $3,000,000.00 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 $20,000,000.00 Note or $3,000,000.00 Note and, if upon such
application the principal balance of the $20,000,000.00 Note or $3,000,000.00 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 $20,000,000.00 Note or $3,000,000.00 Note so that the amount or rate of interest charged for
any and all periods of time during the term of the $20,000,000.00 Note or $3,000,000.00 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
$20,000,000.00 Note or $3,000,000.00 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.

     7. 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.

      

			
	 	 	 
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     8. 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.

     9. 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
$20,000,000.00
Note and $3,000,000.00 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.

     10. 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 $20,000,000.00 Note and $3,000,000.00 Note,
(ii)
all interest, charges and other sums payable with respect thereto, and (iii) the performance
of all
other obligations under the Security Agreements.

     11. 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
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.

     12. Miscellaneous. (a) As modified hereby, the provisions of the $20,000,000.00 Note
and $3,000,000.00 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.

      

			
	 	 	 
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     (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.

     (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:  	/s/ James R. Ridings
 	 
	 	 	James R. Ridings, President 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	LENDER:

THE FROST NATIONAL BANK,
a national banking association 

 	 
	 	By:  	/s/ D. Michael Randall
 	 
	 	 	D. Michael Randall, Senior Vice President      	 
	 	 	 	 
	 

      

			
	 	 	 
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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 $20,000,000.00 Note and $3,000,000.00 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 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	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:  	                                            /s/ James R. Ridings
 	 
	 	 	James R. Ridings, President 

 	 

	 	 	 	 	 
	 	C/D/R INCORPORATED,
a Delaware corporation

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

      

			
	 	 	 
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EXHIBIT 10.11

(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 $23,000,000.00
minus the outstanding principal balance of a $2,000,000.00 Revolving Promissory Note, dated June
14, 2004, executed by Design Trends, LLC, a Delaware limited liability company (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 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

 

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
effective as of May 31, 2005.

	 	 	 	 	 	 	 	 	 
	BORROWER	 	 	 	LENDER:
	 
	 	 	 	 	 	 	 	 
	CRAFTMADE INTERNATIONAL, INC.,	 	 	 	THE FROST NATIONAL BANK,
	a Delaware corporation	 	 	 	a national banking association
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ James R. Ridings
	 	 	 	By:
	 	D. Michael Randall
	 

	 	 
	 	 	 	 	 	 
	 

	 	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:

	 	/s/ James R. Ridings	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	James R. Ridings, President	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	DUROCRAFT INTERNATIONAL, INC.,	 	 	 	 	 	 
	a Texas corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Brad Heimann	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Brad Heimann, Secretary	 	 	 	 	 	 

3

 

	 	 	 	 	 	 	 	 	 
	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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