EXHIBIT 10.8 ARBITRATION AND NOTICE OF FINAL AGREEMENT

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                                                                    EXHIBIT 10.8

[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 amend an existing loan or loans to Borrower and/or

to otherwise extend credit or make financial accommodations to or for the

benefit of 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