<SUBMISSION>
<ACCESSION-NUMBER>0000950123-10-030819
<TYPE>SC 14D9/A
<PUBLIC-DOCUMENT-COUNT>8
<FILING-DATE>20100331
<DATE-OF-FILING-DATE-CHANGE>20100331
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>CRAFTMADE INTERNATIONAL INC
<CIK>0000856250
<ASSIGNED-SIC>5064
<IRS-NUMBER>752057054
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 14D9/A
<ACT>34
<FILE-NUMBER>005-45311
<FILM-NUMBER>10719140
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>650 S ROYAL LANE SUITE 100
<CITY>COPPELL
<STATE>TX
<ZIP>75050
<PHONE>9723933800
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>CRAFTMADE INTERNATIONAL INC
<STREET2>650 S ROYAL LANE SUITE 100
<CITY>COPPELL
<STATE>TX
<ZIP>75050
</MAIL-ADDRESS>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>CRAFTMADE INTERNATIONAL INC
<CIK>0000856250
<ASSIGNED-SIC>5064
<IRS-NUMBER>752057054
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 14D9/A
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>650 S ROYAL LANE SUITE 100
<CITY>COPPELL
<STATE>TX
<ZIP>75050
<PHONE>9723933800
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>CRAFTMADE INTERNATIONAL INC
<STREET2>650 S ROYAL LANE SUITE 100
<CITY>COPPELL
<STATE>TX
<ZIP>75050
</MAIL-ADDRESS>
</FILED-BY>
<DOCUMENT>
<TYPE>SC 14D9/A
<SEQUENCE>1
<FILENAME>d71870asc14d9za.htm
<DESCRIPTION>SC 14D9/A
<TEXT>
<HTML>
<HEAD>
<TITLE>sc14d9za</TITLE>
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<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14D-9</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Solicitation/Recommendation Statement Under<BR>
Section&nbsp;14(d)(4) of the Securities Exchange Act of 1934</B></DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>(Amendment No.&nbsp;1)</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CRAFTMADE INTERNATIONAL, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>(Name of Subject Company)</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CRAFTMADE INTERNATIONAL, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>(Name of Persons Filing Statement)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock, Par Value $0.01 Per Share</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>(Title of Class of Securities)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>22413E104<BR>
(CUSIP Number of Class of Securities)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>C. Brett Burford<BR>
Chief Financial Officer<BR>
Craftmade International, Inc.<BR>
650 South Royal Lane, Suite&nbsp;100<BR>
Coppell, Texas 75019<BR>
(972)&nbsp;393-3800</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>(Name, address and telephone numbers of person authorized to receive<BR>
notices and communications on behalf of the persons filing statement)</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B><I>Copies To:</I></B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Brian D. Barnard<BR>
201 Main Street, Suite&nbsp;2200<BR>
Fort Worth, Texas 76102<BR>
 (817)&nbsp;347-6600</B></DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B><FONT face="Wingdings">&#111;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Check the box if the filing relates solely to preliminary communications prior to the
commencement of a tender offer.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>









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<DIV style="font-family: 'Times New Roman',Times,serif">








<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment No.&nbsp;1 to the Schedule&nbsp;14D-9 (this &#147;<U>Amendment No.&nbsp;1</U>&#148;) amends and
supplements the Solicitation/Recommendation Statement on Schedule&nbsp;14D-9 originally filed with the
Securities and Exchange Commission (the &#147;<U>SEC</U>&#148;) on March&nbsp;15, 2010 (together, with the
exhibits and annexes thereto, the &#147;<U>Schedule&nbsp;14D-9</U>&#148;), by Craftmade International, Inc., a
Delaware corporation (the &#147;<U>Company</U>&#148;). The Schedule&nbsp;14D-9 was filed in relation to the
unsolicited tender offer by Litex Acquisition #1, LLC (&#147;<U>Purchaser</U>&#148;), a Texas limited
liability company and wholly owned subsidiary of Litex Industries, Limited, a Texas limited
partnership (&#147;<U>Litex</U>&#148;), to purchase all outstanding shares of the Company&#146;s common stock,
par value $0.01 per share, including the associated preferred stock purchase rights, in exchange
for $5.25 per share, net to the seller in cash (less any applicable withholding taxes and without
interest), and on the terms and subject to the conditions described in the Purchaser&#146;s Tender Offer
Statement on Schedule&nbsp;TO originally filed with the SEC on March&nbsp;2, 2010 (as amended and
supplemented by Amendment No.&nbsp;1 thereto and together with the exhibits thereto, the &#147;<U>Schedule
TO</U>&#148;). The value of the consideration offered, together with all of the terms and conditions
applicable to the tender offer, is referred to as the &#147;<U>Offer</U>.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise set forth below, the information set forth in the Schedule&nbsp;14D-9 remains
unchanged and is incorporated herein by reference as relevant to the items in this Amendment No.&nbsp;1.
Capitalized terms used but not defined herein have the meanings ascribed to them in the Schedule
14D-9.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4. </B><B><I>The Solicitation or Recommendation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item&nbsp;4 of the Schedule&nbsp;14D-9 is hereby amended and supplemented by adding the following
sentence as a separate paragraph below the third bullet point on page 17 of the Schedule&nbsp;14D-9:
&#147;Notwithstanding the Board&#146;s belief, Craftmade cannot be assured that (1)&nbsp;the Company will be able
to resume the delivery of superior results for its stockholders, (2)&nbsp;the benefits of the Woodard
acquisition will be more fully realized as the economy recovers or (3)&nbsp;the Offer price is less than
the future value of the Company&#146;s stock price per Share or that the Offer price does not fully
reflect the Company&#146;s future prospects.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item&nbsp;4 of the Schedule&nbsp;14D-9 is hereby amended and supplemented by adding the following
sentence as a separate paragraph below the first full bullet point on page 18 of the Schedule
14D-9: &#147;Notwithstanding the Board&#146;s belief, Craftmade cannot be assured that the Company&#146;s
historical growth and success will be indicative of its future performance or that the Company&#146;s
efforts will result in future profitability or that Litex, by acquiring the Company, would be able
to reap the benefits of such efforts.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6. </B><B><I>Interest in Securities of the Subject Company</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item&nbsp;6 of the Schedule&nbsp;14D-9 is hereby amended and supplemented by deleting the first part of
the first sentence (prior to the table) on page 21 and inserting in its place the following:
&#147;During the past 60&nbsp;days, no transactions with respect to the Common Stock have been effected by
the Company or by any of its current executive officers, directors, affiliates or subsidiaries,
except for the following:&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8. </B><B><I>Additional Information</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item&nbsp;8 of the Schedule&nbsp;14D-9 is hereby amended and supplemented by adding the following
paragraph immediately prior to the section titled &#147;Forward Looking Statements&#148;:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Litigation</I></B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;22, 2010, stockholder Henry Partners, L.P. filed with the Delaware
Court of Chancery a complaint against individual members of the Company&#146;s Board
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(collectively, the &#147;<U>Defendants</U>&#148;). The action, styled <I>Henry Partners,
L.P. v. James R. Ridings, William E. Bucek, A. Paul Knuckley, R. Don Morris, and
Lary C. Snodgrass</I>, Civil Action No.&nbsp;5366 (the &#147;<U>Henry Complaint</U>&#148;), alleges,
among other things, that the Defendants breached their fiduciary duties to the
Company&#146;s stockholders in connection with the Offer, and seeks declaratory and
injunctive relief, costs and disbursements, and reasonable attorneys&#146; and experts&#146;
fees. The Company and the Defendants believe that the plaintiff&#146;s allegations in
the Henry Complaint lack merit and intend to defend against them vigorously.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing summary of the Henry Complaint is qualified in its entirety by
reference to the Henry Complaint, which is filed as Exhibit (a)(4) to this Amendment
No.&nbsp;1 and is incorporated in this Amendment No.&nbsp;1 by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9. </B><B><I>Exhibits</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item&nbsp;9 of the Schedule&nbsp;14D-9 is hereby amended and supplemented by adding the following
exhibits immediately after exhibit (a)(3):
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(a)(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Press release, including letter to the Company&#146;s stockholders, issued by the
Company on March&nbsp;31, 2010.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(a)(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Letter to the Company&#146;s stockholders dated March&nbsp;31, 2010.</TD>
</TR>


<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(a)(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> Complaint filed on March&nbsp;22, 2010, in the Delaware Court of Chancery,
captioned <I>Henry Partners, L.P. v. James R. Ridings, William E. Bucek, A. Paul
Knuckley, R. Don Morris, and Lary C. Snodgrass</I>, Civil Action No.&nbsp;5366.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After due inquiry and to the best of my knowledge and belief, I certify that the information
set forth in this Statement is true, complete and correct.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>CRAFTMADE INTERNATIONAL, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/  <FONT style="font-variant: SMALL-CAPS">C. Brett Burford</FONT>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">C. Brett Burford&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: March&nbsp;31, 2010
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.A.4
<SEQUENCE>2
<FILENAME>d71870aexv99waw4.htm
<DESCRIPTION>EX-99.A.4
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99waw4</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="d71870ad7187000.gif" alt="(CRAFTMADE LOGO)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>FOR IMMEDIATE RELEASE</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Contact Information:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">D.F. King &#038; Co., Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ric DeCastro</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(800) 967-5079
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investor Relations</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u>crft@dfking.com</u>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(972) 393-3800</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>investorrelations@craftmade.com</u></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CRAFTMADE BOARD REITERATES RECOMMENDATION AGAINST<BR>
LITEX&#146;S HOSTILE AND INADEQUATE TENDER OFFER</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>COPPELL, TEXAS, March&nbsp;31, 2010 </B>&#151; Craftmade International, Inc. (OTCQX: <U>CRFT</U>)
(&#147;Craftmade&#148; or the &#147;Company&#148;) today sent a letter to its stockholders reiterating its
recommendation that they not tender their shares to Litex Industries, Limited&#146;s (&#147;Litex&#148;)
unsolicited, conditional tender offer to acquire all outstanding common shares of Craftmade at a
price of $5.25 per share in cash. The letter addresses the Craftmade Board&#146;s belief that Litex&#146;s
offer significantly undervalues the Company, addresses inaccurate statements made by Litex as part
of Litex&#146;s campaign to mislead Craftmade stockholders, and outlines Craftmade&#146;s commitment to its
long-term strategy and maximization of stockholder value. The text of Craftmade&#146;s letter to its
stockholders is set forth below omitting the charts set forth therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2010
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Fellow Stockholders,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We appreciate the continued support from many of our stockholders, large and small, regarding
Craftmade&#146;s long-term strategy and the Board&#146;s unanimous recommendation that our stockholders
reject our competitor Litex&#146;s unsolicited tender offer at $5.25 per share. By this letter, we want
to reach out directly to all of our stockholders and emphasize why the Board continues to believe
you should reject Litex&#146;s offer. In Litex&#146;s most recent SEC filing, Litex states that it believes
the $5.25 per share offer price &#147;represents full and fair value for the common stock of Craftmade.&#148;
The Craftmade Board believes that Litex&#146;s $5.25 per share offer price is neither full nor fair.
<B>We continue to strongly urge you not to tender your Craftmade shares to Litex.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Litex&#146;s Offer Significantly Undervalues the Company</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board believes that Litex&#146;s offer significantly undervalues the Company by, among other things,
not giving full consideration to Craftmade&#146;s furniture business or the significant efforts to
successfully emerge from the economic downturn.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Consider the fact that just a little over two months ago, Litex made an unsolicited offer at $3.25
per share, which it told us at the time was a &#147;fair price.&#148; Then on March&nbsp;2, 2010, Litex launched
the tender offer at $5.25 per share, which it has stated &#147;represents full and fair value.&#148; Litex
didn&#146;t communicate the $5.25
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">offer to the Craftmade Board before launching the hostile tender offer and has never explained its
basis for this offer, or why its offer price changed by 60% in such a short time period. Does
Litex really have a good grasp of Craftmade&#146;s value, or is it simply grasping for a price that
might get some traction with stockholders? The Board believes that Litex is trying to buy
Craftmade at a bargain price without giving our stockholders the opportunity to reap long-term
value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board explored strategic alternatives in 2007 and ultimately determined to continue
implementing its long-term strategy, which includes expanding our lighting lines and
diversification into the outdoor living arena. Since 2007, the Company has been challenged with a
downturn across the entire economy as well as the collapse in the overall housing market. The
Board believes that the optimal time to sell is not during the bottom of the market.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Craftmade&#146;s Board Takes Its Responsibility Seriously</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Despite Litex&#146;s desire to have you believe the Craftmade Board and management are &#147;entrenched and
unwilling to negotiate,&#148; the Board and management team are working hard to protect your interests
and maximize your value as described below. Our Board and management have made a significant
investment not only in time, but by purchasing Craftmade stock over the years. Every member of the
Board and management owns stock in the Company. By reviewing our public filings it&#146;s clear that we
have continued to buy significant amounts of stock over the past two years because we truly believe
the Company is undervalued by the market. On a combined basis the Board and management team own
over 21% of the outstanding common stock, creating strong alignment with the broader stockholder
base.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On the other hand, it is important to remember the obvious &#151; that Litex is a direct competitor and
its <B>sole motivation </B>is to look after Litex&#146;s best interests, not yours. Craftmade stockholders
should be cautious of any attempt by Litex to characterize its motivations as aligned with yours.
Please remember that if Litex is successful in its aggressive efforts to obtain Craftmade at a
bargain price, Litex, and not our stockholders, will benefit from the long-term value created by
our Company during the past few challenging years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Since January, Litex has attempted to lead our stockholders, customers and employees to falsely
believe that a sale of Craftmade to Litex is imminent. Due to Litex&#146;s competitive and aggressive
actions, we continue to feel it has been necessary to protect Craftmade&#146;s and its stockholders&#146;
interests by not divulging our uniquely valuable confidential information to Litex. As a
competitor, we can understand why Litex is so eager to obtain Craftmade&#146;s confidential information,
such as projected sales by category, product and distribution channel, future pricing expectations,
the impact of organizational changes, expected changes in key growth drivers and planned new
product introductions. Additionally, during any publicly announced negotiation with Litex,
Craftmade would likely begin to experience customer and employee attrition, which would leave the
Company and its stockholders damaged, and benefit our competitors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board has consistently maintained the position that the right time to sell is not now at the
bottom of the worst economy and housing market in many generations. However, despite the Board&#146;s
continued assertion that this is a poor time to consider a sale, the Board takes its fiduciary
responsibility very seriously and is obligated to consider any serious offer.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Craftmade is Committed to Executing its Long-Term Strategy and<BR>
Maximizing Stockholder Value</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Craftmade has, since its founding, worked hard to deliver superior results and generated strong
returns for our stockholders resulting in 56 consecutive quarterly dividends and 23 consecutive
years of profitability.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As Litex concedes, our recent financial results have been impacted by the global recession and the
collapse of the housing industry like most other companies in our industry and many other
industries. Although no assurance can be given as to future results, the Board strongly believes
that our strategic actions will, consistent with past performance, allow us to rebound and deliver
greater value to our stockholders than Litex&#146;s $5.25 per share offer price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Since the Board completed an exploration of strategic alternatives in mid-2007, Craftmade
management has worked tirelessly to make Craftmade a better company for you. Among our many
accomplishments, Craftmade has:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acquired Woodard in early 2008 and successfully integrated it, creating synergies in
excess of those announced at the time of acquisition</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>restructured the organization of our Company, including reducing executive and senior
management positions from 11 to 7 (and thereby reducing executive and senior management
compensation expense by 38%)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>refinanced the Company&#146;s line of credit under favorable terms, during the worst credit
environment in recent history</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduced overall operational expenses by approximately 25%; in the past three quarters,
we have saved over $5&nbsp;million as a result of these cost-cutting measures, and all savings
have not yet been fully realized</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>moved the Company&#146;s listing to OTCQX and deregistered with the SEC to save an additional
$500-$700 thousand per year</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>significantly expanded our product offering by adding 166 new products, including 47 new
fans and 23 outdoor furniture collections to take advantage of emerging consumer trends</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Litex Has Made Several Misleading Statements In Connection with the Offer</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Litex has engaged in an aggressive campaign to buy Craftmade at a bargain price and in doing so has
made several misleading statements to our stockholders, including:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex has attempted to confuse Craftmade&#146;s customers:</U> Through a narrowly
disseminated press release in January, Litex created the appearance at the home lighting
industry&#146;s largest customer event that its purchase of Craftmade was imminent, and &#147;only
subject&#148; to a few conditions. Litex had no foundation for this statement. Craftmade
believes this was a blatant attempt to confuse our stockholders, customers and sales force
and create a disruption in our business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex has not made a good faith effort to engage Craftmade:</U>While Litex has
implied on the one hand that a sale is imminent, Litex has, on the other hand, repeatedly
stated that Craftmade is unwilling to enter into any discussions with Litex. In reality,
Craftmade has not categorically refused to talk with Litex, but, as one example, when
Craftmade simply requested an agenda prior to a meeting requested by Litex in April&nbsp;2009,
Litex refused to provide any sort of agenda. Because Litex is a competitor of the Company
that has made what we consider a lowball offer, and filled our industry with misleading
information that a sale is imminent, we are extremely cautious about providing any
non-public information regarding our business plans to Litex or furthering its apparent
agenda to create the illusion that a transaction is imminent. Further,</TD>
</TR>


</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Craftmade does not think it is productive to engage in exploratory discussions with Litex
based on a lowball offer that Litex claims is &#147;full and fair.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex wants stockholders to believe that their offer represents a generous
premium:</U> While Litex&#146;s offer represents a premium to recent trading prices,
Craftmade has historically traded well above current levels, even before the acquisition of
Woodard. While there can be no assurances about reaching previous levels of profitability,
Craftmade&#146;s underlying business, including its customers, products and distribution
channels remains intact.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Litex&#146;s Offer Relative to Craftmade&#146;s Historical Stock Price</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex has misrepresented Craftmade&#146;s delisting and deregistration:</U> Litex has
attempted to portray the SEC deregistration process as being &#147;accelerated&#148; and depriving
our stockholders of information needed to evaluate our performance. Craftmade announced
its plans to deregister in November and completed the required filings in January. Not only
was this <I>process not accelerated</I>, but it actually took a few weeks longer than originally
anticipated. Additionally, once Craftmade decided to delist from Nasdaq and deregister
under the federal securities laws, Craftmade specifically chose to list its shares on OTCQX
which has the <I>highest reporting requirements </I>of the OTC market. Under OTCQX regulations,
the Company is required to file quarterly reports, annual reports and current reports, as
well as continue to have an annual audit &#151; all very similar to SEC level requirements in
the pre-Sarbanes-Oxley environment. Since filing its first quarterly report with OTCQX in
February of 2010, not a single stockholder has expressed any concern with the level of
disclosure provided in that report. On the contrary, we have received several favorable
comments related to the format, reporting and disclosures that the Company continues to
make.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex does not seem to understand Craftmade&#146;s balance sheet:</U> Litex recently
referred to the Company&#146;s &#147;ever increasing secured debt balance&#148; in an attempt to portray
our Company negatively. This statement shows a fundamental lack of understanding of our
business cycle and revolving debt. As we have explained, it is customary for us to
increase our borrowings on a seasonal basis. The springtime is the height of the market
for our outdoor furniture business, and the increase in revolving debt reflects positive
business activity. Craftmade&#146;s debt levels increase and decrease due to the seasonal
nature of our business, but <I>average debt levels have decreased </I>in the past year. On an
&#147;apples to apples&#148; basis our secured debt at December&nbsp;31, 2009 shows a $4&nbsp;million decrease
from the same period in the prior year.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex misrepresents Craftmade executive compensation:</U> Litex claims that
executive compensation has not been impacted during the recent cost cutting but their own,
selectively chosen, data show an 18% decrease in executive and board compensation in the
most recent year. By looking at the full picture, we can see that overall senior
management positions have been reduced from 11 to 7 in the past two years, driving an
annual savings of over $1,000,000, or 38% <I>- almost twice the rate that other expenses were
cut. </I>As the management team has shrunk, the remaining executives have picked up additional
work and responsibility. Additionally, as with most of our employees, management salaries
have been frozen and no current member of management has received a cash bonus in over
three years.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Does Litex Have Sufficient Funds to Complete the Offer and Pay Off the Company&#146;s Debt?</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Litex refuses to provide Craftmade or the stockholders with basic, customary information that would
provide reasonable assurance that Litex has the ability to close the offer and pay off the
Company&#146;s debt
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">that may be accelerated as a result of the closing of the offer, including describing the nature of
their &#147;liquid assets&#148;, or how and when it plans to convert such assets to cash to consummate this
offer.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>We are Working for You</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While we&#146;ve worked hard to do an outstanding job for you, we understand your expectations of us to
improve your return on equity and provide liquidity for you. As fellow stockholders, we firmly
believe that Litex&#146;s offer significantly undervalues our Company&#146;s worth and <U><B>recommend that you
refrain from tendering your shares.</B></U> We do not believe that this is the right time to sell.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We appreciate your support of Craftmade and will continue to fight to protect your interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sincerely,
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ <FONT style="font-variant: SMALL-CAPS">James R. Ridings</FONT>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
James R. Ridings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ <FONT style="font-variant: SMALL-CAPS">J. Marcus Scrudder</FONT>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
J. Marcus Scrudder
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chairman
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>This letter contains statements that are forward looking. These forward-looking statements include,
but are not limited to, (i)&nbsp;statements concerning future financial condition and operations,
including future cash flows, revenues, gross margins, earnings and variations in quarterly results,
(ii)&nbsp;statements relating to future performance and stock price and (iii)&nbsp;other statements
identified by words such as &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;could,&#148; &#147;might,&#148; &#147;expects,&#148; &#147;plans,&#148;
&#147;anticipates,&#148; &#147;believes,&#148; &#147;estimates,&#148; &#147;projects,&#148; &#147;predicts,&#148; &#147;forecasts,&#148; &#147;intends,&#148;
&#147;potential,&#148; &#147;continue,&#148; and similar words or phrases. All forward-looking statements are based on
current expectations regarding important risk factors and should not be regarded as a
representation by us or any other person that the results expressed therein will be achieved. The
Company assumes no obligation to revise or update any forward-looking statements for any reason,
except as required by law. Important factors that could cause actual results to differ materially
from those contained in any forward-looking statement can be found in the risk factors section of
our Annual Report on Form&nbsp;10-K for the fiscal year ended June&nbsp;30, 2009, filed with the SEC on
September&nbsp;28, 2009. The Company notes that forward-looking statements made in connection with a
tender offer are not subject to the safe harbors created by the Private Securities Litigation
Reform Act of 1995, as amended, although other legal protections may apply.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>About Craftmade</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Founded in 1985, Craftmade is engaged in the design, manufacturing, distribution, and marketing of
a broad range of home d&#233;cor products, including proprietary ceiling fans, lighting products, and
outdoor furniture. The Company distributes its premium products through a network of independent
showrooms and mass retail customers through its headquarters and distribution facility in Coppell,
Texas and manufacturing plant in Owosso, Michigan. More information about Craftmade can be found
at www.craftmade.com.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B># # #</B>
</DIV>





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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ADDITIONAL INFORMATION
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In response to the tender offer commenced by Litex Acquisition #1, LLC, a wholly-owned subsidiary
of Litex, Craftmade filed a Solicitation/Recommendation Statement on Schedule&nbsp;14D-9 with the U.S.
Securities and Exchange Commission (&#147;SEC&#148;). INVESTORS AND SECURITY HOLDERS OF CRAFTMADE ARE URGED
TO READ CAREFULLY AND IN THEIR ENTIRETY THESE AND OTHER DOCUMENTS FILED WITH THE SEC BECAUSE THEY
CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain free copies of these
documents and other documents filed with the SEC by Craftmade through the web site maintained by
the SEC at <I>http://www.sec.gov</I>.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="d71870ad7187001.gif" alt="(CRAFTMADE LOGO)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">March&nbsp;31, 2010
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Fellow Stockholders,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We appreciate the continued support from many of our stockholders, large and small, regarding
Craftmade&#146;s long-term strategy and the Board&#146;s unanimous recommendation that our stockholders
reject our competitor Litex&#146;s unsolicited tender offer at $5.25 per share. By this letter, we want
to reach out directly to all of our stockholders and emphasize why the Board continues to believe
you should reject Litex&#146;s offer. In Litex&#146;s most recent SEC filing, Litex states that it believes
the $5.25 per share offer price &#147;represents full and fair value for the common stock of Craftmade.&#148;
The Craftmade Board believes that Litex&#146;s $5.25 per share offer price is neither full nor fair.
<B>We continue to strongly urge you not to tender your Craftmade shares to Litex.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Litex&#146;s Offer Significantly Undervalues the Company</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board believes that Litex&#146;s offer significantly undervalues the Company by, among other things,
not giving full consideration to Craftmade&#146;s furniture business or the significant efforts to
successfully emerge from the economic downturn.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Consider the fact that just a little over two months ago, Litex made an unsolicited offer at $3.25
per share, which it told us at the time was a &#147;fair price.&#148; Then on March&nbsp;2, 2010, Litex launched
the tender offer at $5.25 per share, which it has stated &#147;represents full and fair value.&#148; Litex
didn&#146;t communicate the $5.25 offer to the Craftmade Board before launching the hostile tender offer
and has never explained its basis for this offer, or why its offer price changed by 60% in such a
short time period. Does Litex really have a good grasp of Craftmade&#146;s value, or is it simply
grasping for a price that might get some traction with stockholders? The Board believes that Litex
is trying to buy Craftmade at a bargain price without giving our stockholders the opportunity to
reap long-term value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board explored strategic alternatives in 2007 and ultimately determined to continue
implementing its long-term strategy, which includes expanding our lighting lines and
diversification into the outdoor living arena. Since 2007, the Company has been challenged with a
downturn across the entire economy as well as the collapse in the overall housing market. The
Board believes that the optimal time to sell is not during the bottom of the market.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Craftmade&#146;s Board Takes Its Responsibility Seriously</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Despite Litex&#146;s desire to have you believe the Craftmade Board and management are &#147;entrenched and
unwilling to negotiate,&#148; the Board and management team are working hard to protect your interests
and maximize your value as described below. Our Board and management have made a significant
investment not only in time, but by purchasing Craftmade stock over the years. Every member of the
Board and management owns stock in the Company. By reviewing our public filings it&#146;s clear that we
have continued to buy significant amounts of stock over the past two years because we truly believe
the Company is undervalued by the market. On a combined basis
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Board and management team own over 21% of the outstanding common stock, creating strong
alignment with the broader stockholder base.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On the other hand, it is important to remember the obvious &#151; that Litex is a direct competitor and
its <B>sole motivation </B>is to look after Litex&#146;s best interests, not yours. Craftmade stockholders
should be cautious of any attempt by Litex to characterize its motivations as aligned with yours.
Please remember that if Litex is successful in its aggressive efforts to obtain Craftmade at a
bargain price, Litex, and not our stockholders, will benefit from the long-term value created by
our Company during the past few challenging years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Since January, Litex has attempted to lead our stockholders, customers and employees to falsely
believe that a sale of Craftmade to Litex is imminent. Due to Litex&#146;s competitive and aggressive
actions, we continue to feel it has been necessary to protect Craftmade&#146;s and its stockholders&#146;
interests by not divulging our uniquely valuable confidential information to Litex. As a
competitor, we can understand why Litex is so eager to obtain Craftmade&#146;s confidential information,
such as projected sales by category, product and distribution channel, future pricing expectations,
the impact of organizational changes, expected changes in key growth drivers and planned new
product introductions. Additionally, during any publicly announced negotiation with Litex,
Craftmade would likely begin to experience customer and employee attrition, which would leave the
Company and its stockholders damaged, and benefit our competitors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board has consistently maintained the position that the right time to sell is not now at the
bottom of the worst economy and housing market in many generations. However, despite the Board&#146;s
continued assertion that this is a poor time to consider a sale, the Board takes its fiduciary
responsibility very seriously and is obligated to consider any serious offer.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Craftmade is Committed to Executing its Long-Term Strategy and</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>Maximizing Stockholder Value</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Craftmade has, since its founding, worked hard to deliver superior results and generated strong
returns for our stockholders resulting in 56 consecutive quarterly dividends and 23 consecutive
years of profitability. As Litex concedes, our recent financial results have been impacted by the
global recession and the collapse of the housing industry like most other companies in our industry
and many other industries. Although no assurance can be given as to future results, the Board
strongly believes that our strategic actions will, consistent with past performance, allow us to
rebound and deliver greater value to our stockholders than Litex&#146;s $5.25 per share offer price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Since the Board completed an exploration of strategic alternatives in mid-2007, Craftmade
management has worked tirelessly to make Craftmade a better company for you. Among our many
accomplishments, Craftmade has:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acquired Woodard in early 2008 and successfully integrated it, creating synergies in
excess of those announced at the time of acquisition</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>restructured the organization of our Company, including reducing executive and senior
management positions from 11 to 7 (and thereby reducing executive and senior management
compensation expense by 38%)</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /Folio -->
</DIV>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>refinanced the Company&#146;s line of credit under favorable terms, during the worst credit
environment in recent history</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduced overall operational expenses by approximately 25%; in the past three quarters,
we have saved over $5&nbsp;million as a result of these cost-cutting measures, and all savings
have not yet been fully realized</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>moved the Company&#146;s listing to OTCQX and deregistered with the SEC to save an
additional $500-$700 thousand per year</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>significantly expanded our product offering by adding 166 new products, including 47
new fans and 23 outdoor furniture collections to take advantage of emerging consumer
trends</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Litex Has Made Several Misleading Statements In Connection with the Offer</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Litex has engaged in an aggressive campaign to buy Craftmade at a bargain price and in doing so has
made several misleading statements to our stockholders, including:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex has attempted to confuse Craftmade&#146;s customers:</U> Through a narrowly
disseminated press release in January, Litex created the appearance at the home lighting
industry&#146;s largest customer event that its purchase of Craftmade was imminent, and &#147;only
subject&#148; to a few conditions. Litex had no foundation for this statement. Craftmade
believes this was a blatant attempt to confuse our stockholders, customers and sales force
and create a disruption in our business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex has not made a good faith effort to engage Craftmade:</U> While Litex has
implied on the one hand that a sale is imminent, Litex has, on the other hand, repeatedly
stated that Craftmade is unwilling to enter into any discussions with Litex. In reality,
Craftmade has not categorically refused to talk with Litex, but, as one example, when
Craftmade simply requested an agenda prior to a meeting requested by Litex in April&nbsp;2009,
Litex refused to provide any sort of agenda. Because Litex is a competitor of the Company
that has made what we consider a lowball offer, and filled our industry with misleading
information that a sale is imminent, we are extremely cautious about providing any
non-public information regarding our business plans to Litex or furthering its apparent
agenda to create the illusion that a transaction is imminent. Further, Craftmade does not
think it is productive to engage in exploratory discussions with Litex based on a lowball
offer that Litex claims is &#147;full and fair.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex wants stockholders to believe that their offer represents a generous
premium:</U> While Litex&#146;s offer represents a premium to recent trading prices,
Craftmade has historically traded well above current levels, even before the acquisition
of Woodard (see chart below). While there can be no assurances about reaching previous
levels of profitability, Craftmade&#146;s underlying business, including its customers,
products and distribution channels remains intact.</TD>
</TR>







</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="d71870ad7187002.gif" alt="(GRAPH)">
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex has misrepresented Craftmade&#146;s delisting and deregistration:</U> Litex
has attempted to portray the SEC deregistration process as being &#147;accelerated&#148; and
depriving our stockholders of information needed to evaluate our performance. Craftmade
announced its plans to deregister in November and completed the required filings in
January. Not only was this <I>process not accelerated</I>, but it actually took a few weeks
longer than originally anticipated. Additionally, once Craftmade decided to delist from
Nasdaq and deregister under the federal securities laws, Craftmade specifically chose to
list its shares on OTCQX which has the <I>highest reporting requirements </I>of the OTC market.
Under OTCQX regulations, the Company is required to file quarterly reports, annual reports
and current reports, as well as continue to have an annual audit &#151; all very similar to
SEC level requirements in the pre-Sarbanes-Oxley environment. Since filing its first
quarterly report with OTCQX in February of 2010, not a single stockholder has expressed
any concern with the level of disclosure provided in that report. On the contrary, we have
received several favorable comments related to the format, reporting and disclosures that
the Company continues to make.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex does not seem to understand Craftmade&#146;s balance sheet:</U> Litex recently
referred to the Company&#146;s &#147;ever increasing secured debt balance&#148; in an attempt to portray
our Company negatively. This statement shows a fundamental lack of understanding of our
business cycle and revolving debt. As we have explained, it is customary for us to
increase our borrowings on a seasonal basis. The springtime is the height of the market
for our outdoor furniture business, and the increase in revolving debt reflects positive
business activity (see the chart below). Craftmade&#146;s debt levels increase and decrease
due to the seasonal nature of our business, but <B><I>average debt levels have decreased </I></B>in the
past year. On an &#147;apples to apples&#148; basis our secured debt at December&nbsp;31, 2009 shows a $4
million decrease from the same period in the prior year.</TD>
</TR>




</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="d71870ad7187003.gif" alt="(GRAPH)">
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Litex misrepresents Craftmade executive compensation:</U> Litex claims that
executive compensation has not been impacted during the recent cost cutting but their own,
selectively chosen, data show an 18% decrease in executive and board compensation in the
most recent year. By looking at the full picture, we can see that overall senior
management positions have been reduced from 11 to 7 in the past two years, driving an
annual savings of over $1,000,000, or 38% <I>- almost twice the rate that other expenses were
cut. </I>As the management team has shrunk, the remaining executives have picked up additional
work and responsibility. Additionally, as with most of our employees, management salaries
have been frozen and no current member of management has received a cash bonus in over
three years.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Does Litex Have Sufficient Funds to Complete the Offer and Pay Off the Company&#146;s Debt?</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Litex refuses to provide Craftmade or the stockholders with basic, customary information that would
provide reasonable assurance that Litex has the ability to close the offer and pay off the
Company&#146;s debt that may be accelerated as a result of the closing of the offer, including
describing the nature of their &#147;liquid assets&#148;, or how and when it plans to convert such assets to
cash to consummate this offer.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>We are Working for You</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While we&#146;ve worked hard to do an outstanding job for you, we understand your expectations of us to
improve your return on equity and provide liquidity for you. As fellow stockholders, we firmly
believe that Litex&#146;s offer significantly undervalues our Company&#146;s worth and <U><B>recommend that you
refrain from tendering your shares.</B></U> We do not believe that this is the right time to sell.
</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->- 5 -<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We appreciate your support of Craftmade and will continue to fight to protect your interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sincerely,
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top" style="border-bottom: 1px solid #000000">/s/ James R. Ridings
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">/s/ J. Marcus Scrudder</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">James R. Ridings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J. Marcus Scrudder</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chairman
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>This letter contains statements that are forward looking. These forward-looking statements
include, but are not limited to, (i)&nbsp;statements concerning future financial condition and
operations, including future cash flows, revenues, gross margins, earnings and variations in
quarterly results, (ii)&nbsp;statements relating to future performance and stock price and (iii)&nbsp;other
statements identified by words such as &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;could,&#148; &#147;might,&#148; &#147;expects,&#148;
&#147;plans,&#148; &#147;anticipates,&#148; &#147;believes,&#148; &#147;estimates,&#148; &#147;projects,&#148; &#147;predicts,&#148; &#147;forecasts,&#148; &#147;intends,&#148;
&#147;potential,&#148; &#147;continue,&#148; and similar words or phrases. All forward-looking statements are based on
current expectations regarding important risk factors and should not be regarded as a
representation by us or any other person that the results expressed therein will be achieved. The
Company assumes no obligation to revise or update any forward-looking statements for any reason,
except as required by law. Important factors that could cause actual results to differ materially
from those contained in any forward-looking statement can be found in the risk factors section of
our Annual Report on Form&nbsp;10-K for the fiscal year ended June&nbsp;30, 2009, filed with the SEC on
September&nbsp;28, 2009. The Company notes that forward-looking statements made in connection with a
tender offer are not subject to the safe harbors created by the Private Securities Litigation
Reform Act of 1995, as amended, although other legal protections may apply.</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Contact Information:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ric DeCastro</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">D.F. King &#038; Co., Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investor Relations</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(800) 967-5079
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(972) 393-3800</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u>crft@dfking.com</u>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>investorrelations@craftmade.com</u></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->- 6 -<!-- /Folio -->
</DIV>



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<DOCUMENT>
<TYPE>EX-99.A.6
<SEQUENCE>4
<FILENAME>d71870aexv99waw6.htm
<DESCRIPTION>EX-99.A.6
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99waw6</TITLE>
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<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;(a)(6)</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">HENRY PARTNERS, L.P.,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:30px; text-indent:-15px"> Plaintiff,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">v.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">C. A. No. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">JAMES R. RIDINGS, WILLIAM E.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BUCEK, A. PAUL KNUCKLEY, R. DON</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MORRIS, and LARY C., SNODGRASS,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:45px; text-indent:-15px">Defendants.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>VERIFIED COMPLAINT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiff Henry Partners, L.P., (&#147;Henry Partners&#148;), by and through its undersigned attorneys,
as and for its Verified Complaint for Declaratory and Injunctive Relief against defendants James R.
Ridings (&#147;Ridings&#148;), William E. Bucek (&#147;Bucek&#148;), A. Paul Knuckley (&#147;Knuckley&#148;), R. Don Morris
(&#147;Morris&#148;), and Lary C. Snodgrass (&#147;Snodgrass&#148;), who collectively comprise the Board of Directors
(the &#147;Board&#148;) of Craftmade International, Inc., a Delaware corporation (&#147;Craftmade&#148; or the
&#147;Company&#148;), upon knowledge as to matters relating to itself and upon information and belief as to
all other matters, alleges as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NATURE OF THE ACTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;This action is brought to remedy breaches of fiduciary duties by the members of the Board
in connection with the tender offer made by Litex Industries, Ltd. (&#147;Litex&#148;) on March&nbsp;2, 2010, to
acquire the outstanding common stock of Craftmade at $5.25 per share (the &#147;Tender Offer&#148;). The
Tender Offer price of $5.25 per share represents a 124.4% premium over the average closing price of
Craftmade common stock of $2.34 for the 60 trading days prior to the announcement of Litex&#146;s first
offer to acquire Craftmade common stock at $3.25 per share, which offer Litex made public on
January&nbsp;14, 2010. Plaintiff brings this action for declaratory
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and injunctive relief to prevent the Board from unreasonably utilizing Craftmade&#146;s Stockholder
Rights Agreement (the &#147;Poison Pill&#148;) to preclude or deter the Tender Offer. Plaintiff also seeks to
disable debt acceleration provisions in two debt instruments of the Company triggered by a change
of control (the &#147;Poison Puts&#148;).
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PARTIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Plaintiff Henry Partners is, and at all times relevant hereto was, a Craftmade shareholder.
As of the date of filing of this complaint, Henry Partners is the beneficial owner of 75,000 shares
of Craftmade common stock. On March&nbsp;11, 2010, prior to instituting this litigation, Henry Partners
sent a letter to the Board requesting it to &#147;either engage in good faith negotiations with Litex to
obtain the highest price possible for Craftmade shareholders now or to allow the owners to tender
their shares to Litex without your interference.&#148; Nonetheless, the Company&#146;s antitakeover defenses
remain in place, unreasonably precluding Plaintiff from participating in the Tender Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Defendant James R. Ridings (&#147;Ridings&#148;) is the Chairman of the Board of Directors (&#147;Board&#148;)
of Craftmade and has been a Director since 1985. Ridings is the co-founder of Craftmade, took the
Company public in 1990 and served as its Chief Executive Officer from 1986 until July&nbsp;30, 2008. In
addition, Ridings owns 10.2% of the common stock of Craftmade. Furthermore, Ridings&#146; son-in-law,
Brad Dale Heimann, serves as Craftmade&#146;s President and Chief Operating Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Defendant William E. Bucek (&#147;Bucek&#148;) has been a Craftmade director since 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Defendant A. Paul Knuckley (&#147;Knuckley&#148;) has been a Craftmade director since 1996. Knuckley
beneficially owns 1.9% of Craftmade&#146;s common stock.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Defendant R. Don Morris (&#147;Morris&#148;) has been a Craftmade director since 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Defendant Lary C. Snodgrass (&#147;Snodgrass&#148;) has been a Craftmade director since 1998.
Snodgrass beneficially owns 5.5% of Craftmade&#146;s common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;Collectively, Defendants Ridings, Bucek and Snodgrass own 17.6% of the common stock of
Craftmade and, for all intents and purposes, control the actions of the Board and the senior
management of Craftmade.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BACKGROUND ALLEGATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;Craftmade has not performed well. On May&nbsp;9, 2007, Craftmade issued a press release
announcing that it had retained Mazzone &#038; Associates &#147;to assist the Company in evaluating its
strategic alternatives to enhance shareholder value . . . &#091;including&#093; a potential sale of the
Company.&#148; A committee of the Board was purportedly formed to evaluate strategic alternatives. At
this time, shares of Craftmade common stock traded at $16.72.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;In response to the Company&#146;s announcement that it had put itself up for sale, Litex, a
competitor, expressed an interest in acquiring Craftmade. Litex signed a confidentially agreement,
which contained an 18&nbsp;month standstill agreement, and performed due diligence on Craftmade. On
August&nbsp;15, 2007, Litex sent a letter indicating its interest in acquiring the Company. Defendants,
however, responded to Litex by stating the Company was no longer for sale. One week later, on
August&nbsp;23, 2007, Craftmade announced that the Board had determined it was not the appropriate time
to seek the sale of the Company and that the Company was now evaluating several acquisition
candidates.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Defendants&#146; Strategic Plan Sends<BR>
Company Into A Downward Spiral</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;Defendants pursued their alternative strategic plan, and acquired certain assets of
Woodard LLC in January&nbsp;2008 for a purchase price of approximately $20&nbsp;million comprised of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">cash and Craftmade common stock. Woodard had $55.4&nbsp;million in sales and on a consolidated
basis, the acquisition made it appear as if Craftmade&#146;s revenues had actually grown during the
period of decline in its industry. In addition, the Woodard acquisition had the beneficial effect,
to Defendants, of placing 12.3% of Craftmade&#146;s common stock in &#147;friendly hands.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;The acquisition, however, did nothing to create shareholder value. Indeed, within a matter
of months the Company announced that it had suspended its quarterly dividend. Moreover, net income
for the quarter ended March&nbsp;31, 2008 was down more than 12%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;During the remainder of 2008 and first half of 2009, Craftmade fared worse. As noted in
Craftmade&#146;s 2009 Form 10-K filed with the SEC on September&nbsp;28, 2009, &#147;this economic environment and
the corresponding decline in home-related spending have significantly impacted both our Specialty
and Mass retail segments.&#148; For the fiscal year ended June&nbsp;30, 2009, Craftmade reported a net loss
of $1&nbsp;million, its first loss in the past five years.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Defendants Build Defenses Rather Than Value</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;Notwithstanding defendants&#146; failure to develop and implement a plan to create value for
Craftmade&#146;s stockholders, they continued to rebuff Litex&#146;s expressions of interest and focused on
entrenching their positions as directors of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;Although the Company already had the Poison Pill in place, Defendants sought
reinforcements. On July&nbsp;8, 2009, the Company entered into a $40&nbsp;million dollar Revolving Loan
Agreement with Bank of America, N.A (the &#147;Revolving Loan Agreement&#148;). Among other things, the
Revolving Loan Agreement was used to refinance a Third Amended and Restated Loan Agreement with The
Frost National Bank, dated December&nbsp;31, 2007 (the &#147;Loan Agreement&#148;). But unlike the terms of the
Loan Agreement, which provided for a negative covenant requiring the Company and its subsidiaries
not to change two or more of the persons comprising senior
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">management, the Revolving Loan Agreement included a change of control provision focused on
stock ownership and the composition of the Board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;Specifically, under Section&nbsp;11.1(m) of the Revolving Loan Agreement, a change of control
is an event of default remedied by, among other things, declaring outstanding obligations of the
Company immediately due and payable. The Revolving Loan Agreement defines &#147;Change of Control&#148; as:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(a)&nbsp;any &#147;person&#148; or &#147;group&#148; (as such terms are used in sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended,
but excluding any employee benefit plan of such person and its
subsidiaries, and any person or entity acting in its capacity as
trustee, agent or other fiduciary or administrator of any such
plan), excluding the Permitted Holders, shall become the &#147;beneficial
owner&#148; (as defined in rules 13(d)-3 and 13(d)-5 under the Securities
Exchange Act of 1934, as amended), directly or indirectly, of more
than the greater of (x)&nbsp;30% or more of the then outstanding equity
securities of Borrower entitled to vote for members of the board of
directors or equivalent governing body or (y)&nbsp;the percentage of
equity securities of Borrower entitled to vote for members of the
board of directors or equivalent governing body, or (b)&nbsp;the board of
directors of Borrower ceases to consist of a majority of the
Continuing Directors.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Revolving Loan Agreement defines &#147;Continuing
Directors&#148; as the directors of Borrower on the Closing Date and each other
director, if, in each case, such other directors&#146; nomination for
election to the board of directors of Borrower is recommended by a
majority of the then Continuing Directors of such other director
receives the vote of the Permitted Holders in his or her election by
the stockholders of Borrower</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a whole, the provisions are incomprehensible. For example, it appears that the definition of
Continuing Directors should have been written to allow for nominations elected (i)&nbsp;by a majority of
the Board or (ii)&nbsp;by Permitted Holders. In other words, the definition is probably intended to read
in part &#147;... such other directors&#146; nomination ... is recommended by a majority of the then
Continuing Directors <U><B>or</B></U> such other director receives
the vote of the Permitted Holders....&#148;
Thus,
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">together the provisions seem to contemplate an exemption from a Change of Control when involving a
Permitted Holder. Incredibly, however, &#147;Permitted Holders&#148; is not defined.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;Presumably, Permitted Holder is a stockholder or group of stockholders blessed by the
Continuing Directors. But because the term is not defined, certainty as to the intended meaning of
the term is impossible to know from the face of the agreement, making the Change of Control
provision impossible to understand in operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;Thus, the Revolving Loan Agreement effectively precludes a stockholder or group of
stockholders from accumulating more than 30% of the Company&#146;s outstanding stock without the risk of
substantial cost to the Company. Likewise, the Revolving Loan Agreement precludes a stockholder or
group of stockholders from voting shares in favor of director nominees who have not been blessed by
the Continuing Directors without the risk of substantial cost to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;Even assuming that the Change of Control provision provides an exemption for Permitted
Holders (whoever they might be), the Revolving Loan Agreement still impermissibly interferes with
the stockholders&#146; fundamental rights to sell and vote their shares and serves as an improper
entrenchment device that coerces stockholders into voting only for those blessed by the incumbent
board. Moreover, such a construction of the Revolving Loan Agreement conflicts with statements made
by Defendants in response to the Tender Offer and would render their disclosures in connection with
the Tender Offer materially false and misleading.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;Furthermore, a Change of Control under the Revolving Loan Agreement causes a waterfall
effect on a peripheral Term Loan Agreement the Company entered on the same date as the Revolving
Loan Agreement with The Frost National Bank (the &#147;Term Loan Agreement&#148;).
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under Section&nbsp;8.1(g) of the Term Loan Agreement, a default is triggered if Bank of America
declares a default of the Revolving Loan Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;These Poison Puts were no doubt prompted by Litex&#146;s continued expressions of interest.
Indeed, Litex&#146;s legal counsel had as recently as April&nbsp;9, 2009 sent a letter to Defendant Ridings
stating that it was still interested in exploring a potential business combination. The Board,
however, refused to even meet with Litex and only again gruffly responded that that the Company was
not for sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;All the while, rather than focusing on implementing a successful business plan or
researching other strategic alternatives that would create value for the stockholders, the Board
was reinforcing its takeover defense devices. As an initial matter, the Company&#146;s Poison Pill was
set to expire on June&nbsp;23, 2009. The Board therefore amended the Poison Pill on June&nbsp;9, 2009 to
extend its term for five years. On that same day, June&nbsp;9, 2009, the Company also announced that it
had amended and restated its bylaws. Specifically, the Board unilaterally amended and restated the
Company&#146;s bylaws to include an onerous advance notice provision for action to be taken at annual
meetings, and also the Board unilaterally amended and restated the Company&#146;s bylaws to include an
advance notice provision for action to be taken by written consent.. One month later, on July&nbsp;8,
2009, the Board negotiated and caused the Company to enter into the Revolving Loan Agreement and
the Term Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.&nbsp;Finally, Defendants took the extraordinary step of deregistering Craftmade&#146;s common stock
with the SEC and delisting it from the NASDAQ Global Market. This enabled Defendants to, in effect,
run a public company in the dark and as if it were, again, the private company Defendant Ridings
had founded.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.&nbsp;For stockholders, however, rather than creating value, the deregistration decimated the
market capitalization of the Company. After the deregistration, the Company&#146;s common stock was
listed on the over-the-counter market (OTCQX)&nbsp;which, <I>inter alia</I>, further reduced greatly the
trading in the stock as well as analyst coverage of the stock. And as expected, Craftmade continued
to decline, both financially and operationally.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Craftmade&#146;s Current Financial Condition</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.&nbsp;Today, Craftmade is in dire financial and operational straits. For the first quarter of
2010, ended September&nbsp;30, 2009, and reported on SEC Form 10-Q, filed November&nbsp;16, 2009, Craftmade
reported net sales of only $21&nbsp;million, a net loss of $377,000, cash of $126,000 and total current
assets of only $47.5&nbsp;million, most of which are secured by loans. In Item&nbsp;2, of the Company&#146;s SEC
Form 10-Q, Craftmade stated that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;&#091;m&#093;anagement believes that the decline in the housing market and the overall
economic downturn will continue to negatively impact the sales of the Company&#146;s
various product lines .... The Company continues to pursue its strategic growth plans,
while also being highly focused on developing and implementing more immediate plans
to mitigate the impact of the current economic downturn. The Company believes it is
well situated to benefit from an economic recovery, but the timing of such recovery
remains highly uncertain.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(SEC Form 10-Q, page 23) In apparent recognition of the fact that financial results from ongoing
operations would not increase shareholder value, Craftmade further stated that &#147;it is in the best
interest of long-term stockholder value for management to continue to evaluate selective and
opportunistic acquisitions,&#148; but cautioned that &#147;&#091;t&#093;here can be no assurances, however, that any
agreement regarding any such acquisition will be consummated.&#148; (SEC Form 10-Q, page 27) Craftmade
common stock closed at $2.28 per share on November&nbsp;16, 2009, a dramatic decline in value from the
$16.72 closing price at the time when Defendants refused to negotiate with Litex in the wake of
their having put Craftmade up for sale in May&nbsp;2007.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.&nbsp;Nonetheless, Litex has continued its attempt to engage Defendants in a meaningful
discussion for a business combination transaction. Its most recent efforts were on January&nbsp;8, 2010,
when Litex sent a letter to Defendants offering to acquire the common stock of Craftmade for $3.25,
specifically stating that it may offer a higher price after conducting due diligence, and
requesting a meeting with the Company. Regardless, the following day Defendants &#147;unanimously
concluded that the Litex unsolicited proposal undervalued the Company and was opportunistic.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.&nbsp;Although Defendants agreed to have members of management and the board meet with
representatives of Litex, prior to this meeting, Defendants repeated their mantra to Litex &#151; that
Craftmade was not for sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.&nbsp;Plainly frustrated with Defendants conduct, on January&nbsp;15, 2010, Litex issued a press
release announcing its offer for the Company. Without even the benefit of hiring an advisor to
opine on the proposal, Defendants issued a press release disclosing that in response to the
all-cash offer from Litex to acquire all of the common stock of Craftmade for $3.25 per share,
Defendants were rejecting it out of hand, and without any considered dialogue with Litex or any
financial advisor, because the offer &#147;significantly undervalue&#091;d&#093; Craftmade and &#091;wa&#093;s not in the
best interests of the Craftmade shareholders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.&nbsp;Moreover, Defendants touted the Woodard acquisition as proof of the effectiveness of their
&#147;strategic plan&#148; to acquire companies in an effort to increase shareholder value. However,
Defendants did not disclose that Craftmade lacked the financial wherewithal to make additional
comparable acquisitions in the foreseeable future, offered no acquisition targets and offered no
explanation for the Company&#146;s dismal financial performance and languishing stock price, a clear
indication that the Defendants&#146; strategy has been a failure.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Litex Offers $5.25 Per Share</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.&nbsp;On March&nbsp;2, 2010, Litex, having heard nothing further from Defendants with respect to its
offer, increased its offer to $5.25 per share and commenced the Tender Offer. The Tender Offer is
not subject to any financing condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.&nbsp;Although faced with the continuing and worsening reality of a failing company with no
business plan to enhance shareholder value except through vague statements concerning unspecified,
hoped-for acquisitions, Defendants, in true knee-jerk fashion, immediately issued a press release
advising its stockholders to take no action in response to the Tender Offer, despite the fact that
the Tender Offer would expire on April&nbsp;7, 2010. Defendants did not support their position with any
meaningful data, nor did they not disclose any sound competing financial or business plan that
would increase shareholder value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.&nbsp;Defendants filed with the SEC their response to the Tender Offer on March&nbsp;15, 2010,
reiterating their position that the Tender Offer was inadequate from a financial point of view
towards the Company&#146;s stockholders and significantly undervalues the Company &#151; this time including
an opinion from the Company&#146;s financial advisor. Defendants, however, failed to disclose the full
nature of their relationship with the Company&#146;s financial advisor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.&nbsp;Apparently, on March&nbsp;3, 2010, Defendants agreed to engage B. Riley &#038; Co. (&#147;Riley&#148;) as its
financial advisor in connection with the Tender Offer. Nine days later, the Board met to review the
terms of the Tender Offer with the assistance of its legal advisor and Riley during which meeting
Riley rendered an opinion that the consideration proposed to be paid to the Company&#146;s common
stockholders was inadequate. Riley also confirmed this opinion in writing and this opinion is
attached to Craftmade&#146;s SEC filing (the &#147;Riley Opinion&#148;). What is not disclosed is that when the
Company had deregistered, Riley was to provide the designated advisor for disclosure (DAD)&nbsp;services
for OTCQX-member companies. Accordingly, the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Defendants had an on-going relationship with Riley. No mention is made of Riley&#146;s previous
engagement by Defendants as the DAD for Craftmade. Nor is there any disclosure regarding the
specific financial analysis or methodology performed by Riley.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.&nbsp;Moreover, Defendants attack the Tender Offer, stating that Litex has inadequate funds to
discharge the Company&#146;s indebtedness. Specifically, Defendants disclose to the stockholders that
&#147;the indebtedness under two of &#091;the Company&#146;s&#093; financing agreements could be accelerated, at the
option of the lenders thereunder, if Litex of Purchaser acquires control of the Company.&#148;
Defendants further state that if the Company goes into default &#147;lenders could foreclose upon
substantially all of the Company&#146;s assets constituting collateral thereunder.&#148; Defendants make no
mention of Permitted Holders; rather, Defendants state plainly that &#147;a change of control of the
Company occurs if any person or entity becomes the beneficial owner of 30% or more of the
outstanding securities of the Company entitled to vote for the Board.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.&nbsp;Defendants refer both to the Revolving Loan Agreement and the Term Loan Agreement.
Specifically, Litex had estimated and had disclosed in its Tender Offer that approximately
$29,000,000 would be required to consummate the Offer. Litex further estimated that approximately
$35,053,000 may be required to assume or discharge the Company&#146;s debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.&nbsp;Defendants state that just under the Revolving Loan Agreement it was &#147;probable that
between now and the current expiration date of the &#091;Tender&#093; Offer, the outstanding balance under
this facility will increase further in the ordinary course of business to approximately
$35,000,000.&#148; The balance of the Revolving Loan Agreement as of December&nbsp;31, 2009, however, was
$21,549,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.&nbsp;Defendants are improperly using the Change of Control provision under the Poison Puts to
drive the cost of the Tender Offer up. The additional $14&nbsp;million amounts to 48%
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of the $29&nbsp;million required to purchase the Company&#146;s equity, and, at $35&nbsp;million dollars, the
Revolving Loan Agreement increases the cost of consummating the Tender Offer by 220%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.&nbsp;The Litex all-cash Tender Offer, without any financing condition, presents an opportune
time and mechanism for Craftmade public shareholders to increase the value of their stockholdings
and receive all cash for their shares which otherwise are extremely illiquid and will have
virtually no market value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40.&nbsp;By abusing their power as directors, particularly glaring in light of the impoverished
financial condition of Craftmade, the lack of any credible business plan to enhance shareholder
value in the foreseeable future, the concentrated effort to create insurmountable takeover defenses
to both tender offers and proxy contests, and the utter failure to engage Litex in a dialogue to
further increase its offering price, Defendants have subjected the interests of Craftmade and its
stockholders to their own self-interests, in violation of their fiduciary duties.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COUNT I</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Breach of Fiduciary Duties &#151; Entrenchment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.&nbsp;Plaintiff repeats and realleges each and every allegation above as if set forth in full
herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42.&nbsp;As directors of the Company, the Defendants owe fiduciary duties to the Company&#146;s
stockholders, including the duties to act with due care and the utmost good faith and loyalty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43.&nbsp;Litex&#146;s Tender Offer is an all-cash, non-discriminatory offer for all of the Company&#146;s
shares. It is not subject to financing or due diligence conditions, represents a substantial
(124.4%) premium over the average closing price of Craftmade stock for the 60 trading days prior to
its announcement, is non-coercive, is fair to the Company&#146;s stockholders, and poses no threat to
the Company&#146;s policy or effectiveness. The only threat presented by the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 12 - <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Tender Offer is a threat to the Defendants&#146; ability to retain their positions as directors of
the Company. Delaware law, however, does not allow directors to deploy anti-takeover devises for
the purpose of entrenching management. Rather, directors of Delaware corporations are duty bound
not to preclude an all-cash premium noncoercive tender offer at a fair price. Yet, the Defendants
summarily rejected Litex&#146;s offer and efforts to open a dialogue.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44.&nbsp;Instead, the Defendants deeply entrenched themselves with an arsenal of take-over
defenses. Defendants refuse to redeem or amend the Poison Pill. Defendants are actively driving-up
the cost of the Poison Puts. Defendants have unilaterally adopted onerous advance notice bylaws for
action to be taken at annual meetings. Defendants have unilaterally adopted advance notice bylaws
for action to be taken by written consent. The list goes on to include, among other things, change
of control provisions in employment agreements that will provide up to 2&nbsp;years in severance
payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45.&nbsp;These self-serving entrenchment devices are being employed to preclude the Tender Offer in
plain breach of Defendants&#146; fiduciary duties of care, loyalty, candor, good faith, and independence
owed to Craftmade&#146;s public shareholders. Defendants are obligated to serve Craftmade&#146;s interests
above their own self-interest and to enhance shareholder value and, accordingly, assess in a
reasonable and prudent manner the Tender Offer from Litex to acquire the common stock of Craftmade
at a substantial premium. Defendants are not permitted to put their personal interests ahead of
their fiduciary duties and to refuse to engage in a dialogue with Litex, particularly at a time
when Defendants have publicly stated that shareholder value can only be served only by
extraordinary business measures, including acquisitions, in clear recognition that business as
usual at Craftmade has ceased.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 13 - <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.&nbsp;Accordingly, Plaintiff seeks an order that declares the adoption, maintenance or
implementation of any defensive measure by Defendants against Litex or the Tender Offer, or of any
measure that would prevent a future board of directors from exercising its fiduciary duties,
including the Poison Pill and Poison Puts, would constitute a breach of fiduciary duties owed to
the Company&#146;s stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.&nbsp;Plaintiff has no remedy at law.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COUNT II</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Breach of Fiduciary Duties &#151; Implementation of Poison Puts</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.&nbsp;Plaintiff repeats and realleges each and every allegation above as if set forth in full
herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49.&nbsp;The Defendants owe the Plaintiff the utmost fiduciary duties of care and loyalty,
including the obligation to act in good faith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50.&nbsp;In violation of their fiduciary duties, the Defendants adopted the Poison Puts in the
Revolving Credit Agreement and the Term Loan Agreement in response to Litex&#146;s overtures for the
sole purpose of entrenching themselves as directors of the Company and preventing their removal by
shareholder vote. The adoption of these measures was in violation of the fundamental rights of the
Plaintiff to sell its shares, impedes the fundamental franchise rights of the Plaintiff to vote in
a contested election, was not entirely fair to the Plaintiff, and constitutes an unreasonable
response to the possibility of a takeover of the Company. Moreover, the Change of Control provision
set forth in the Revolving Credit Agreement is incomprehensible on its face and subjects the
Company&#146;s stockholders to extraordinary ambiguity and risk in exercising their fundamental rights
to sell and vote their shares. Thus, adoption of the provision was not only a self-interested act
of entrenchment by the Defendants, but also a plain breach of their duty of care.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 14 - <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.&nbsp;Defendants&#146; breaches of fiduciary duties have caused and are continuing to cause harm to
Plaintiff by, <I>inter alia</I>, depriving it of the opportunity to sell its shares, and will cause
Plaintiff harm by depriving it of the opportunity to exercise its franchise rights free of coercion
and to elect a new board majority if it sees fit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52.&nbsp;Plaintiff has no adequate remedy at law.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PRAYER FOR RELIEF</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREFORE, Plaintiff demands judgment and preliminary and permanent relief, in its favor and
against Defendants as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;Declare that the Defendants have breached their fiduciary duties to the Company&#146;s
stockholders by refusing to negotiate with Litex and to reasonably inform themselves of the terms
on which Litex was prepared to enter into a business combination transaction;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;B. Enjoin the Defendants from engaging in any action or inaction that has the effect of
improperly impeding, thwarting, frustrating or interfering with the consideration or acceptance of
the Tender Offer;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;Compel the Defendants to remove the Poison Pill, exempt Litex&#146;s Tender Offer and remove the
impediments of any other anti-takeover device;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;Declare that the Defendants have breached their fiduciary duties to Plaintiff by
implementing the Poison Puts;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;Declare that the Poison Puts are invalid and unenforceable;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;Award Plaintiff the costs and disbursements of this action, including reasonable attorneys&#146;
and experts&#146; fees; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;Grant such other and further equitable relief as this Court may deem just and proper.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 15 - <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">PRICKETT, JONES &#038; ELLIOTT, P.A.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">OF COUNSEL:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Ronald A. Brown, Jr.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Ronald A. Brown, Jr. (DE Bar No.&nbsp;2849)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bernard M. Gross
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marcus E. Montejo (DE Bar No.&nbsp;4890)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Deborah R. Goss
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1310 King Street</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LAW OFFICES OF BERNARD M. GROSS,
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wilmington, Delaware 19801</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">P.C.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(302) 888-6500</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Suite&nbsp;450, Wanamaker Bldg.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">100 Penn Square East</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><I>Attorneys for Plaintiff</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Philadelphia, PA 19107</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Telephone: 215-561-3600</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fax: 215-561-3000</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DATED: March&nbsp;22, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --> - 16 - <!-- /Folio -->
</DIV>



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end
</TEXT>
</DOCUMENT>
</SUBMISSION>
