ARBITRATION AND NOTICE OF
FINAL AGREEMENT
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To:
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Craftmade International, Inc., a
Delaware corporation
650 S. Royal Lane
Coppell, Texas 75019
(collectively, whether one or more, “ Borrower
”)
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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 ”).
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 exe
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