<SUBMISSION>
<ACCESSION-NUMBER>0000950123-10-024734
<TYPE>SC 14D9
<PUBLIC-DOCUMENT-COUNT>11
<FILING-DATE>20100315
<DATE-OF-FILING-DATE-CHANGE>20100315
<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
<ACT>34
<FILE-NUMBER>005-45311
<FILM-NUMBER>10682043
</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
</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
<SEQUENCE>1
<FILENAME>d71441sc14d9.htm
<DESCRIPTION>SC 14D9
<TEXT>
<HTML>
<HEAD>
<TITLE>sc14d9</TITLE>
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<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION<BR>
    </FONT><FONT style="font-size: 12pt">Washington,&#160;D.C.
    20549<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">SCHEDULE&#160;14D-9</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">Solicitation/Recommendation
    Statement Under<BR>
    Section 14(d)(4) of the Securities Exchange Act of
    1934</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">CRAFTMADE INTERNATIONAL,
    INC.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name of Subject
    Company)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">CRAFTMADE INTERNATIONAL,
    INC.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name of Persons Filing
    Statement)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Common Stock, Par Value $0.01 Per Share</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Title of Class of
    Securities)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>22413E104</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(CUSIP Number of Class of
    Securities)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>C. Brett Burford</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Chief Financial Officer</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Craftmade International, Inc.</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>650 South Royal Lane, Suite 100</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Coppell, Texas 75019</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(972) 393-3800</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Name, address and telephone
    numbers of person authorized to receive<BR>
    notices and communications on behalf of the persons filing
    statement)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Copies To:</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B> Brian D. Barnard</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>201 Main Street, Suite 2200</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Fort&#160;Worth, Texas 76102</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(817) 347-6600</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <B><FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;</B></TD>
    <TD align="left">
    <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 style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

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

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<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="96%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>Item&#160;1. Subject Company Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Item&#160;2. Identity and Background of Filing
    Person</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Item&#160;3. Past Contacts, Transactions,
    Negotiations and Agreements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Item&#160;4. The Solicitation or
    Recommendation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Item&#160;5. Person/Assets Retained, Employed,
    Compensated or Used</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Item&#160;6. Interest in Securities of the
    Subject Company</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Item&#160;7. Purposes of the Transaction and
    Plans or Proposals</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Item&#160;8. Additional Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Item&#160;9. Exhibits</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d71441exv99waw1.htm">EX-99.A.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d71441exv99waw2.htm">EX-99.A.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d71441exv99wew1.htm">EX-99.E.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d71441exv99wew9.htm">EX-99.E.9</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d71441exv99wew11.htm">EX-99.E.11</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d71441exv99wew12.htm">EX-99.E.12</A></FONT></TD></TR>
</TABLE>

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</DIV>

<DIV align="left">
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    <BR>
    i
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<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;1.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='101'></A><B><I><FONT style="font-family: 'Times New Roman', Times">Subject
    Company Information</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Name
    and Address</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The name of the subject company to which this
    Solicitation/Recommendation Statement on
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    (this
    &#147;<U><FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT></U>&#148;)
    relates is Craftmade International, Inc., a Delaware corporation
    (the &#147;<U>Company</U>&#148;). The address of the principal
    executive offices of the Company is 650 South Royal Lane,
    Suite&#160;100, Coppell, Texas 75019, and its telephone number
    is
    <FONT style="white-space: nowrap">(972)&#160;393-3800.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Securities</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The title of the class of equity securities to which this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    relates is the Company&#146;s common stock, par value $0.01 per
    share (the &#147;<U>Common Stock</U>&#148;), including the
    associated preferred stock purchase rights (the
    &#147;<U>Rights</U>&#148;), issued pursuant to the Rights
    Agreement dated as of June&#160;23, 1999, between the Company
    and Computershare Trust&#160;Company, N.A., as
    <FONT style="white-space: nowrap">successor-in-interest</FONT>
    to Harris Trust and Savings Bank, as Rights Agent, as amended by
    the Amendment No.&#160;1 to Rights Agreement dated June&#160;9,
    2009 (the &#147;<U>Rights Agreement</U>&#148;). As of the close
    of business on March&#160;12, 2010, there were
    5,754,500&#160;shares of Common Stock issued and outstanding, of
    which 50,000&#160;shares are comprised of unvested shares
    underlying restricted stock awards. The outstanding shares of
    Common Stock, including the associated Rights, are herein
    referred to as the &#147;<U>Shares</U>.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company filed a Form&#160;15 on January&#160;29, 2010, to
    begin the process of deregistering its Common Stock from the
    provisions of the Securities Exchange Act of 1934, as amended
    (the &#147;<U>Exchange Act</U>&#148;), and the Company&#146;s
    deregistration becomes effective 90&#160;days following the
    filing date of Form&#160;15 (or April&#160;29, 2010). Prior to
    its deregistration becoming effective, the Company requested the
    staff of the Securities and Exchange Commission (the
    &#147;<U>SEC</U>&#148;) that it be allowed to suspend its
    remaining obligations to make certain current and periodic
    reports required under the Exchange Act. The Company was granted
    this request by an SEC No Action Letter dated January&#160;27,
    2010 (the &#147;<U>SEC No Action Letter</U>&#148;). Upon filing
    the Form&#160;15 to voluntarily deregister its Common Stock
    after receiving the SEC No Action Letter, the Company&#146;s
    obligations under the Exchange Act to furnish an annual report
    and to provide periodic disclosures to stockholders were
    suspended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Once deregistration is effective, most of the provisions of the
    Exchange Act&#160;&#151; such as the short-swing profit recovery
    provisions of Section&#160;16(b) and the requirement to furnish
    a proxy statement in connection with a stockholders meeting
    pursuant to Section&#160;14(a)&#160;&#151; will no longer apply
    to the Company. Furthermore, the ability of
    &#147;affiliates&#148; of the Company and persons holding
    &#147;restricted securities&#148; of the Company to dispose of
    such securities pursuant to Rule&#160;144 promulgated under the
    Securities Act of 1933, as amended, may be restricted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since November&#160;30, 2009, the Common Stock has been traded
    on OTCQX (&#147;<U>OTCQX</U>&#148;) under the symbol
    &#147;CRFT.&#148; Although the Company is not currently filing
    annual, quarterly or current reports with the SEC, the Company
    is required to file financial reports with OTCQX, including
    annual, quarterly and current reports, and such reports are
    available on the website of OTCQX.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;2.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='102'></A><B><I><FONT style="font-family: 'Times New Roman', Times">Identity
    and Background of Filing Person</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Name
    and Address</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The name, business address and business telephone number of the
    Company, which is the person filing this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9,</FONT>
    are set forth in Item&#160;1 above. The Company&#146;s website
    is <I>www.craftmade.com</I>. The website and the information on
    or connected to the website are not a part of this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9,</FONT>
    are not incorporated herein by reference and should not be
    considered a part of this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Tender
    Offer</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    relates to the tender offer by Litex Acquisition&#160;#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 at a price of $5.25 per
    share, net to the seller in cash,
</DIV>
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    <BR>
    1
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    without interest and subject to any required withholding taxes.
    The tender offer is being made on the terms and subject to the
    conditions described in the Tender Offer Statement on
    Schedule&#160;TO (together with the exhibits thereto, the
    &#147;<U>Schedule&#160;TO</U>&#148;), filed by Purchaser with
    the SEC on March&#160;2, 2010. The value of the consideration
    offered, together with all of the terms and conditions
    applicable to the tender offer, is referred to in this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    as the &#147;<U>Offer</U>.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Litex has stated that the purpose of the Offer is to acquire
    control of, and ultimately the entire equity interest in, the
    Company. Litex has indicated that the Offer, as the first step
    in the acquisition of the Company, is intended to facilitate the
    acquisition of all issued and outstanding Shares. Litex and
    Purchaser have also indicated that, as soon as practicable after
    consummation of the Offer, Litex and Purchaser, or another
    direct or indirect wholly-owned subsidiary of Litex, intend to
    consummate a second-step merger (the &#147;<U>Proposed
    Merger</U>&#148;). At the effective time of the Proposed Merger,
    each then outstanding Share (other than Shares held by Litex and
    its subsidiaries, Shares held in the treasury of the Company,
    Shares held by subsidiaries of the Company, if any, and Shares
    held by the Company&#146;s stockholders who have perfected their
    appraisal rights in accordance with Section&#160;262 of the
    Delaware General Corporation Law (the &#147;<U>DGCL</U>&#148;))
    would be canceled and converted automatically into the right to
    receive an amount in cash per Share equal to the highest price
    per Share paid by Purchaser pursuant to the Offer, without
    interest (and less any applicable withholding taxes). Upon
    consummation of the Proposed Merger, the Company would be a
    wholly-owned subsidiary of Litex.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Litex and Purchaser are considering taking action, as permitted
    under the Company&#146;s governing documents, to solicit
    consents from the Company&#146;s stockholders to replace the
    current members of the Company&#146;s board of directors (the
    &#147;<U>Board</U>&#148;) with directors proposed by Litex. This
    consent solicitation would be in lieu of holding a meeting and
    would, upon the replacement of the existing members of the
    Board, be aimed at facilitating, subject to the fiduciary duties
    under applicable law of such new members, the immediate
    negotiation and approval of the terms of the Proposed Merger and
    merger agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Schedule&#160;TO provides that the Offer is subject to a
    number of conditions. Certain of these conditions are summarized
    as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The &#147;<U>Minimum Condition</U>&#148;&#160;&#151; the
    Company&#146;s stockholders shall have validly tendered and not
    withdrawn at least a number of Shares representing, together
    with the Shares owned by Litex and its subsidiaries (including
    Purchaser), at least a majority of the total number of Shares
    then outstanding on a fully-diluted basis (taking into account,
    without limitation, all Shares issuable upon the exercise of any
    options, warrants, convertible securities or rights pursuant to
    other contractual obligations) on the date of the purchase of
    Shares pursuant to the Offer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The &#147;<U>Rights Condition</U>&#148;&#160;&#151; the Board
    shall have redeemed the Rights, or Purchaser being satisfied, in
    its reasonable discretion, that the Rights have been invalidated
    or are otherwise inapplicable to the Offer and the Proposed
    Merger;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The &#147;<U>HSR Condition</U>&#148;&#160;&#151; any applicable
    waiting period under the
    <FONT style="white-space: nowrap">Hart-Scott-Rodino</FONT>
    Antitrust Improvements Act of 1976, as amended (the &#147;<U>HSR
    Act</U>&#148;), shall have expired or been terminated.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, Litex is not required to consummate the Offer and
    may terminate the Offer, if, in Litex&#146;s sole discretion, at
    or before the expiration of the Offer any of the following
    conditions shall occur or exist:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there shall have been instituted or pending any litigation,
    action, investigation or other similar proceeding by or before
    any governmental, administrative or regulatory authority or
    similar instrumentality or any other similar body, in the
    reasonable judgment of Litex (other than with respect to
    clause&#160;(ii) below), (i)&#160;seeking to restrain, delay or
    prohibit the consummation of the Offer, the Proposed Merger or
    any other business combination involving the Company,
    (ii)&#160;seeking to obtain damages in connection with the Offer
    or the Proposed Merger or any other business combination
    involving the Company, (iii)&#160;seeking to restrain, prohibit
    or limit the ownership or operation of the Company, Litex or any
    of their subsidiaries or affiliates or to compel the Company,
    Litex or any of their subsidiaries or affiliates to dispose of
    or hold separate all or any portion of the business or assets of
    the Company, Litex or any of their subsidiaries or affiliates,
    (iv)&#160;seeking to impose or confirm limitations on the
</TD>
</TR>

</TABLE>
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    <BR>
    2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    ability of Litex, Purchaser or any other affiliate of Litex
    effectively to exercise full rights of ownership of any Shares,
    (v)&#160;seeking to require divestiture by Litex, Purchaser or
    any other affiliate of Litex of any Shares, (vi)&#160;seeking
    any material diminution in the benefits expected to be derived
    by Litex, Purchaser or any other affiliate of Litex as a result
    of the transactions contemplated by the Offer or the Proposed
    Merger or any other business combination involving the Company,
    (vii)&#160;that has or may have material adverse significance
    with respect to either the value of the Company or any of its
    subsidiaries or affiliates or the value of the Shares to Litex
    or any of its subsidiaries or affiliates or
    (viii)&#160;materially adversely affecting the business, assets,
    liabilities, condition (financial or otherwise), capitalization,
    operations, licenses, franchises, revenues, results of
    operations or prospects of the Company or any of its
    subsidiaries (the &#147;<U>Litigation Condition</U>&#148;);
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there shall have been any action taken or any statute, rule,
    regulation, legislation, interpretation, judgment, order, decree
    or injunction proposed, enacted, enforced, promulgated, amended,
    issued or deemed applicable to (i)&#160;Litex, the Company or
    any subsidiary or affiliate of Litex or the Company or
    (ii)&#160;the Offer or the Proposed Merger or any other business
    combination by Litex or any other affiliate of Litex with the
    Company, by any governmental authority with appropriate
    jurisdiction other than the routine application of the waiting
    period provisions of the HSR Act, or of any applicable foreign
    statutes or regulations that, in Litex&#146;s judgment, might,
    directly or indirectly, result in any of the consequences
    referred to in clauses&#160;(i) through (viii)&#160;of the
    immediately preceding condition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any clearances, permits, authorizations, consents or other
    actions or non-actions or approvals of any governmental
    authority, other than in connection with the HSR Condition, if
    applicable, or any third party shall not have been obtained, or
    any applicable waiting periods for any of the foregoing shall
    not have expired;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any event, condition, circumstance, change or effect occurs (or
    any development involving a prospective change occurs) that,
    individually or in the aggregate with any other events,
    circumstances, changes or effects occurring after the date of
    the Offer, in Litex&#146;s reasonable judgment, is or may be
    materially adverse to the business, assets, liabilities,
    condition (financial or otherwise), capitalization, operations,
    licenses, franchises, revenues, results of operations or
    prospects of the Company or any of its subsidiaries, or Litex
    becomes aware of any facts that, in its reasonable judgment,
    have or may have material adverse significance with respect to
    either the value of the Company or any of its subsidiaries or
    the value of the Shares to Litex or any of its affiliates (the
    &#147;<U>MAE Condition</U>&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    there shall have occurred (i)&#160;any general suspension of
    trading in, or limitation on prices for, securities on any
    national securities exchange or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market, (ii)&#160;any decline, measured from the date of the
    Offer, in the Dow Jones Industrial Average, the Standard and
    Poor&#146;s Index of 500 Industrial Companies or the NASDAQ
    Composite Index by an amount in excess of 15%, measured from the
    close of business on the date of the Offer, (iii)&#160;any
    change in the general political, market, economic or financial
    conditions in the United States or abroad that, in Litex&#146;s
    reasonable judgment, could have a material adverse effect on the
    business, assets, liabilities, condition (financial or
    otherwise), capitalization, operations, licenses, franchises,
    revenues, results of operations or prospects of the Company or
    any of its subsidiaries or the trading in, or value of, the
    Shares, (iv)&#160;the declaration of a banking moratorium or any
    suspension of payments in respect of banks in the United States,
    (v)&#160;any material adverse change (or development or
    threatened development involving a prospective material adverse
    change) in U.S.&#160;or any other currency exchange rates or a
    suspension of, or a limitation on, the markets therefor,
    (vi)&#160;any material adverse change in the market price of the
    Shares or in the U.S.&#160;securities or financial markets,
    (vii)&#160;the commencement of a war or other international or
    national calamity directly or indirectly involving the United
    States or any act of terrorism involving the United States,
    (viii)&#160;any limitation (whether or not mandatory) by any
    governmental authority on, or any other event that, in
    Litex&#146;s reasonable judgment, may adversely affect, the
    extension of credit by banks or other financial institutions or
    in the case of any of the foregoing existing on the date of the
    Offer, a material acceleration or worsening thereof (the
    &#147;<U>Equity Market Condition</U>&#148;);
</TD>
</TR>

</TABLE>
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    <BR>
    3
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    (i)&#160;a tender or exchange offer for some or all of the
    Shares has been publicly proposed to be made or has been made by
    another person (including without limitation the Company or any
    of its subsidiaries or affiliates), or has been publicly
    disclosed, or Litex otherwise learns that any person or
    &#147;group&#148; (as defined in Section&#160;13(d)(3) of the
    Exchange Act) has acquired or proposes to acquire beneficial
    ownership of more than 5% of any class or series of capital
    stock of the Company (including without limitation the Shares),
    through the acquisition of stock, the formation of a group or
    otherwise, or is granted any option, right or warrant,
    conditional or otherwise, to acquire beneficial ownership of
    more than 5% of any class or series of capital stock of the
    Company (including without limitation the Shares), other than
    acquisitions for bona fide arbitrage purposes only and except as
    disclosed in a Schedule&#160;13D or 13G on file with the SEC on
    or prior to the date of the Offer, (ii)&#160;any such person or
    group which, on or prior to the date of the Offer, had filed
    such a schedule with the SEC, has acquired or proposes to
    acquire beneficial ownership of additional shares of any class
    or series of capital stock of the Company, through the
    acquisition of stock, the formation of a group or otherwise,
    constituting 1% or more of any such class or series, or is
    granted any option, right or warrant, conditional or otherwise,
    to acquire beneficial ownership of additional shares of any
    class or series of capital stock of the Company constituting 1%
    or more of any such class or series, (iii)&#160;any person or
    group has entered into a definitive agreement or an agreement in
    principle or made a proposal with respect to a tender or
    exchange offer or a merger, consolidation or other business
    combination with or involving the Company or any of its
    subsidiaries, (iv)&#160;any person has filed a Notification and
    Report Form under the HSR Act or made a public announcement
    reflecting an intent to acquire the Company or any assets or
    securities of the Company or any of its subsidiaries or
    (v)&#160;the Distribution Date, as such term is defined in the
    Rights Agreement, shall have occurred other than as a result of
    the commencement of the Offer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Litex becomes aware (i)&#160;that any material contractual right
    of the Company or any of its subsidiaries has been or will be
    impaired or otherwise adversely affected or that any material
    amount of indebtedness of the Company or any of its subsidiaries
    has been or will be accelerated or has otherwise become or will
    become due or will become subject to acceleration prior to its
    stated due date, in each case with or without notice or the
    lapse of time or both, as a result of or in connection with the
    Offer or the consummation by Litex or any of its subsidiaries or
    affiliates of the Proposed Merger or any other business
    combination involving the Company (other than an event resulting
    from a breach, default or other occurrence under the provisions
    of the documents governing the indebtedness of the Company that
    is triggered by the Offer, such as rights of the lenders to take
    certain actions upon a change in control in the Company or a
    transfer of ownership interests in the Company (a
    &#147;<U>Triggering Event</U>&#148;)), (ii)&#160;of any
    covenant, term or condition in any instrument, license,
    franchise or agreement of the Company or any of its subsidiaries
    that, in Litex&#146;s reasonable judgment, has or may have
    material adverse significance with respect to either the value
    of the Company or any of its affiliates or the value of the
    Shares to Litex or any of its affiliates (including, without
    limitation, any event of default that may ensue as a result of
    or in connection with the Offer, the acceptance for payment of
    or payment for some or all of the Shares by Litex or
    Litex&#146;s consummation of the Proposed Merger or any other
    business combination involving the Company) other than a
    Triggering Event under the indebtedness of the Company as a
    result of the consummation of the Offer or (iii)&#160;that any
    report, document, instrument, financial statement or schedule of
    the Company filed with the SEC contained, when filed, an untrue
    statement of a material fact or omitted to state a material fact
    required to be stated therein or necessary in order to make the
    statements made therein, in light of the circumstances under
    which they were made, not misleading (the &#147;<U>Adverse
    Effect Condition</U>&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Litex or any of its affiliates enters into a definitive
    agreement or announces an agreement in principle with the
    Company providing for a merger or other similar business
    combination with the Company or any of its subsidiaries or the
    purchase of securities or assets of the Company or any of its
    subsidiaries pursuant to which it is agreed that the Offer will
    be terminated, or Litex and the Company reach any other
    agreement or understanding pursuant to which it is agreed that
    the Offer will be terminated;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the Company or any of its subsidiaries shall have
    (i)&#160;granted to any person proposing a merger or other
    business combination with or involving the Company or any of its
    subsidiaries or the purchase of
</TD>
</TR>
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    <BR>
    4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    securities or assets of the Company or any of its subsidiaries
    any type of option, warrant or right which, in Litex&#146;s
    reasonable judgment, constitutes a
    <FONT style="white-space: nowrap">&#147;lock-up&#148;</FONT>
    device (including, without limitation, a right to acquire or
    receive any Shares or other securities, assets or business of
    the Company or any of its subsidiaries) or (ii)&#160;paid or
    agreed to pay any cash or other consideration to any party in
    connection with or in any way related to any such business
    combination or purchase;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certain other conditions contained in the Schedule&#160;TO.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a full description of the conditions to the Offer, please
    see the section entitled &#147;Conditions of the Offer&#148; in
    the Offer to Purchase filed on March&#160;2, 2010 (the
    &#147;<U>Offer to Purchase</U>&#148;). The foregoing summary of
    the conditions to the Offer does not purport to be complete, and
    is qualified in its entirety by reference to the contents of the
    section entitled &#147;Conditions of the Offer&#148; in the
    Offer to Purchase.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Effect
    of a Change in Control on the Company&#146;s Outstanding
    Indebtedness</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the Offer to Purchase, Litex and Purchaser disclosed in their
    sources of funds the amount of funds they had to discharge the
    Company&#146;s outstanding indebtedness at the consummation of
    the Offer. In the section entitled &#147;Purpose of the Offer;
    Plans for the Company; Statutory Requirements; Approval of the
    Merger; Appraisal Rights&#148; in the Offer to Purchase, Litex
    and Purchaser stated &#147;Litex plans to assume or discharge
    the Company Indebtedness on terms acceptable to Litex.&#148; The
    Company notes that the indebtedness under two of its financing
    arrangements could be accelerated, at the option of the lenders
    thereunder, if Litex or Purchaser acquires control of the
    Company. Set forth below is a discussion of the Company&#146;s
    indebtedness as well as the potential impact of the consummation
    of the Offer on the Company if Litex and Purchaser do not
    discharge such indebtedness at the consummation of the Offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Revolving Loan Agreement.</I>&#160;&#160;The Revolving Loan
    Agreement dated as of July&#160;8, 2009, by and between the
    Company and Bank of America, N.A. (the &#147;<U>Revolving Loan
    Agreement</U>&#148;) provides for revolving loans in an
    aggregate amount up to $40,000,000. As of December&#160;31,
    2009, the outstanding balance under the Revolving Loan Agreement
    was $21,549,000 and, as of March&#160;12, 2010, the outstanding
    balance under the Revolving Loan Agreement had increased to
    approximately $30,000,000 to fund ordinary course seasonal
    increases in working capital. In addition, it is probable that
    between now and the current expiration date of the Offer, the
    outstanding balance under this facility will increase further in
    the ordinary course of business to approximately $35,000,000 to
    fund additional seasonal increases in working capital because
    the Company is currently reaching the peak of its furniture
    season.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sections&#160;11.1(m) and 11.2(a) of the Revolving Loan
    Agreement provide that if a change in control of the Company
    occurs, the lender may, among other rights afforded by law,
    (i)&#160;declare all obligations under the Revolving Loan
    Agreement immediately due and payable, (ii)&#160;terminate,
    reduce or condition its commitment to advance additional funds
    under the Revolving Loan Agreement, and (iii)&#160;require the
    Company to cash collateralize its letters of credit and other
    contingent obligations in favor of lender. Under the Revolving
    Loan Agreement, a change in control of the Company occurs if any
    person or entity becomes the beneficial owner of 30% or more of
    the then outstanding securities of the Company entitled to vote
    for the Board. In addition, the Revolving Loan Agreement
    provides that the Company would have to pay fees of $400,000 if
    the commitment amount is increased or decreased before July 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Term Loan.</I>&#160;&#160;The Term Loan Agreement dated as of
    July&#160;8, 2009, by and among Woodard-CM, LLC, as borrower,
    the Company, as guarantor, and The Frost National Bank (the
    &#147;<U>Term Loan Agreement</U>&#148;) had an outstanding
    balance of $3,387,000 as of March&#160;12, 2010.
    Sections&#160;8.1(g) and 8.2(a) of the Term Loan Agreement
    provide that if the lender under the Revolving Loan Agreement
    declares all or any portion of the indebtedness owing thereunder
    to be due and payable, then the lender under the Term Loan
    Agreement may declare all obligations thereunder due and payable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Allianz Loan.</I>&#160;&#160;CM Real Estate, LLC, a
    wholly-owned subsidiary of the Company, executed a Promissory
    Note, dated as of November&#160;14, 2007, in the aggregate
    principal amount of $11,000,000 (the &#147;<U>Allianz
    Loan</U>&#148;), payable to Allianz Life Insurance Company of
    North America (&#147;<U>Allianz</U>&#148;). As security for the
    payment and performance of the Allianz Loan, Allianz was granted
    a mortgage lien on the Company&#146;s principal place of
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    business located at 650&#160;S.&#160;Royal Lane, Coppell, Texas
    75019. The Allianz Loan contains a prepayment penalty, which the
    Company calculates to be approximately $1,900,000 as of
    March&#160;12, 2010. The Company would incur these additional
    costs in the form of the prepayment penalty assuming that Litex
    and Purchaser cause the discharge of this indebtedness prior to
    its maturity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Inadequate Funds to Discharge Company
    Indebtedness.</I>&#160;&#160;In the Offer to Purchase, Litex and
    Purchaser estimate that approximately $29,000,000 will be
    required to consummate the Offer, and that approximately
    $35,053,000 will be required to discharge the Company&#146;s
    current indebtedness, for a total of $64,053,000. However, the
    Offer to Purchase discloses that Litex has &#147;liquid
    assets&#148; of only $57,000,000, comprised of approximately
    $340,000 in cash, approximately $19,660,000 of marketable
    securities and approximately $37,000,000 of other &#147;liquid
    assets.&#148; It is unclear from Litex&#146;s and
    Purchaser&#146;s disclosure if the $19,660,000 of marketable
    securities includes the value of the Shares owned by Litex and
    Purchaser. Based on Litex&#146;s and Purchaser&#146;s
    disclosure, there is a shortfall of approximately $7,000,000
    necessary to consummate the Offer and discharge the
    Company&#146;s indebtedness. Further, the shortfall is even
    greater than $7,000,000 because the total amount of debt that
    may be outstanding at the consummation of the Offer is likely to
    increase due to ordinary course seasonal increases necessary to
    fund working capital. The Company currently estimates that the
    total amount of funds that Litex and Purchaser would need to
    discharge all Company indebtedness, including prepayment
    penalties, is approximately $47,000,000, which indicates a total
    shortfall of approximately $19,000,000. Litex and Purchaser have
    not disclosed sufficient sources of funds to pay off this
    indebtedness in addition to purchasing the Shares, and Litex and
    Purchaser have also stated in the Offer to Purchase that they do
    not have any alternative financing arrangements or plans to
    obtain additional financing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Consequences of a Failure to Discharge Company
    Indebtedness.</I>&#160;&#160;If Purchaser consummates the Offer
    without discharging the Company&#146;s indebtedness, and is
    unable to pay off the indebtedness that may be accelerated under
    the Revolving Loan Agreement and Term Loan Agreement, the
    Company will be in default under these loan agreements and the
    lenders could foreclose upon substantially all of the
    Company&#146;s assets constituting collateral thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Schedule&#160;TO states that the principal executive offices
    of Litex and Purchaser are located at 3401&#160;West Trinity
    Boulevard, Grand Prairie, Texas 75050, and that the telephone
    number of its principal executive offices is
    <FONT style="white-space: nowrap">(972)&#160;871-4350.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;3.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='103'></A><B><I><FONT style="font-family: 'Times New Roman', Times">Past
    Contacts, Transactions, Negotiations and
    Agreements</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as disclosed in this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    or in the excerpts from the Company&#146;s 2009 Proxy Statement,
    dated October&#160;19, 2009, filed as <U>Exhibit (e)(1)</U> to
    this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    (and incorporated by reference into this Item&#160;3)&#160;as of
    the date hereof, there are no material agreements, arrangements
    or understandings, or any actual or potential conflicts of
    interest between the Company or its affiliates and (i)&#160;the
    Company, its executive officers, directors or affiliates; or
    (ii)&#160;Purchaser, Litex or their respective executive
    officers, directors or affiliates. For further information with
    respect to these matters, see the 2009 Proxy Statement under the
    headings: &#147;Security Ownership of Certain Beneficial Owners
    and Management,&#148; &#147;Executive Compensation,&#148;
    &#147;Outstanding Equity Awards at Year-End,&#148; &#147;Vesting
    of Options Upon Termination or
    <FONT style="white-space: nowrap">Change-in-Control,&#148;</FONT>
    &#147;Equity Compensation Plan Information,&#148; &#147;Fiscal
    Year 2009 Compensation Events,&#148; and &#147;Director
    Compensation.&#148; Any information that is incorporated herein
    by reference shall be deemed modified or superseded for purposes
    of this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    to the extent that any information contained herein modifies or
    supersedes such information.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Relationship
    with Litex</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    According to the Schedule&#160;TO, as of March&#160;2, 2010,
    Litex was the beneficial owner of 234,356&#160;Shares,
    representing approximately 4.1% of the outstanding Shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    Consideration Payable Pursuant to the Offer and the Proposed
    Merger</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Company&#146;s directors and executive officers, each of
    whom is identified on <U>Annex&#160;B</U> hereto, were to tender
    any Shares they own for purchase pursuant to the Offer, they
    would receive the same cash consideration
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    per Share on the same terms and conditions as the other
    stockholders of the Company. If the directors and executive
    officers were to tender all of the 1,134,249&#160;Shares owned
    by them (which number of Shares excludes restricted Shares and
    options to purchase Shares, which are addressed in the paragraph
    below under the section entitled &#147;Equity Awards&#148;) for
    purchase pursuant to the Offer, and those Shares were purchased
    by Purchaser for $5.25 per Share, the directors and executive
    officers would receive an aggregate of $5,954,807.25 in cash. As
    discussed below under &#147;Item&#160;4.&#160;The Solicitation
    or Recommendation,&#148; to the knowledge of the Company, none
    of the Company&#146;s directors or executive officers currently
    intends to tender any of their Shares for purchase pursuant to
    the Offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Equity
    Awards</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Substantially all of the presently unvested options to purchase
    Shares and restricted Shares held by the directors and executive
    officers of the Company were issued pursuant to the 2006
    Long-Term Incentive Plan (the &#147;<U>2006 Plan</U>&#148;) and
    the award agreements entered into pursuant to the 2006 Plan.
    Pursuant to the 2006 Plan and the award agreements entered into
    pursuant thereto, upon a change in control of the Company, such
    as would occur if the Offer is consummated and Purchaser
    acquires ownership of a majority of outstanding Shares, unvested
    options to purchase Shares and restricted Shares held by the
    Company&#146;s directors and executive officers would fully vest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;12, 2010, the directors and executive officers
    of the Company held options to purchase 85,000&#160;Shares,
    48,500 of which were vested and exercisable as of that date,
    with exercise prices ranging from $3.25 to $25.20 and an
    aggregate weighted average exercise price of $12.59 per Share.
    Immediately upon a change in control of the Company, such as
    would occur if the Offer is consummated and Purchaser owns a
    majority of outstanding Shares, 36,500 unvested options to
    purchase Shares would fully vest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;12, 2010, the executive officers of the Company
    held 50,000&#160;Shares underlying restricted stock awards, none
    of which was vested as of that date. Immediately upon a change
    in control of the Company, such as would occur if the Offer is
    consummated and Purchaser owns a majority of outstanding Shares,
    all 50,000 unvested Shares underlying the restricted stock
    awards would fully vest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of March&#160;12, 2010, even though the Company&#146;s 2006
    Plan authorizes the issuance of stock appreciation rights
    (&#147;<U>SARs</U>&#148;), the Company had not issued any SARs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes, with respect to each of the
    directors and executive officers of the Company, the aggregate,
    positive difference in value between $5.25 and the per share
    exercise prices (the &#147;<U>Spread Value</U>&#148;) of the
    options to purchase the Company&#146;s Common Stock held by such
    directors and executive officers as of March&#160;12, 2010, and
    the value of the accelerated restricted stock awards as of such
    date assuming a purchase price of $5.25 per Share:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Acceleration of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate Spread<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock Subject<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Spread Value<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Vesting of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Subject to Unvested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Value of Unvested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>to Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>of Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Restricted Stock<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name, Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options&#160;(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options&#160;(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards&#160;($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J. Marcus Scrudder, Chief Executive Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $52,500
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    C. Brett Burford, Chief Financial Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $52,500
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brad Dale Heimann, President and Chief Operating Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $52,500
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Juan Carlos Loredo, Vice President of Marketing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $52,500
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Acceleration of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate Spread<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock Subject<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Spread Value<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Vesting of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Subject to Unvested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Value of Unvested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>to Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>of Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Restricted Stock<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name, Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options&#160;(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options&#160;(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Awards&#160;($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Todd A. Teiber, Senior Vice President of Specialty Sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $52,500
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cliff Crimmings, Vice President of Specialty Sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $10,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ricardo DeCastro, Vice President of Human Resources
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $10,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J. Camp Roberts, Vice President of Corporate Accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $10,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James R. Ridings, Chairman of the Board
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E. Bucek, Director
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    A. Paul Knuckley, Director
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. Don Morris, Director
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lary C. Snodgrass, Director
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Change in
    Control and Severance Agreements</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has entered into change in control agreements (the
    &#147;<U>Agreements</U>&#148;) with J. Marcus Scrudder, C. Brett
    Burford, Brad Dale Heimann, Juan Carlos Loredo, Todd A. Teiber
    and Ricardo DeCastro (the &#147;<U>Executives</U>&#148;), which
    provide for the payment of certain benefits in connection with a
    &#147;change in control.&#148; If the Offer is consummated and
    Purchaser owns a majority of outstanding voting Shares, a change
    in control under the terms of the Agreements will have occurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a change in control, and provided that he executes a
    general release of all claims against the Company, each
    Executive is entitled to a lump sum amount equal to a range of
    eighteen (18)&#160;months to twenty-four (24)&#160;months of the
    Executive&#146;s annual base salary in effect immediately prior
    to the change in control. Payments under these agreements will
    be payable upon consummation of the Offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Executive&#146;s employment is terminated on the
    effective date of the change in control, other than for
    &#147;cause,&#148; the Company will pay fifty percent (50%) of
    the Executive&#146;s premiums for COBRA continuation coverage
    for the Executive and his eligible dependents for up to eighteen
    (18)&#160;months.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Agreements provide for a tax
    <FONT style="white-space: nowrap">&#147;gross-up&#148;</FONT>
    payment in the event that an excise tax payment becomes payable
    by the Executive under Section&#160;4999 of the Internal Revenue
    Code in connection with a change in control transaction. The
    effect of the tax
    <FONT style="white-space: nowrap">&#147;gross-up&#148;</FONT>
    payment would be that the net amount retained by the Executive
    from all payments after deduction of all applicable taxes
    (including excise taxes, penalties and interest), would equal
    the net amount he would have retained in the absence of such
    excise taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As used in the Agreements, &#147;cause&#148; means the
    occurrence of any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;the failure by the Executive to substantially perform
    the Executive duties with the Company that has not been cured
    within thirty (30)&#160;days after a written demand for
    substantial performance is delivered to the Executive by the
    Company;
</DIV>
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    8
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;the willful engaging by the Executive in conduct,
    which is deemed by the Company to be materially injurious to the
    Company, monetarily or otherwise;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;the appropriation (or attempted appropriation) of a
    business opportunity of the Company, including attempting to
    secure or securing any personal profit in connection with any
    transaction entered into on behalf of any member of the Company;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;the misappropriation (or attempted misappropriation)
    of funds or property belonging to the Company;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;the Executive&#146;s conviction of, or entry by the
    Executive of a guilty or no contest plea to, a misdemeanor
    (involving moral turpitude or fraud) or a felony, the equivalent
    thereof, or any other crime with respect to which imprisonment
    is a possible punishment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summarizes the potential base salary payments to
    the Executives under the Agreements upon a change in control of
    the Company, assuming a change in control on April&#160;7, 2010:
    Marcus Scrudder&#151;&#160;$650,000; Brad Heimann&#160;&#151;
    $550,000; Brett Burford&#160;&#151; $275,500; Todd
    Teiber&#160;&#151; $300,000; Juan Carlos Loredo&#160;&#151;
    $300,000 and Ricardo DeCastro&#160;&#151; $117,500. In addition,
    each of these Executives may be entitled to a $9,000 payment for
    COBRA premiums.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Company has entered into change in
    control/severance agreements with each of Cliff Crimmings and
    Camp Roberts (the &#147;<U>Key Employees</U>&#148;), which
    provide for payment of certain benefits in connection with a
    termination of employment either on the effective date of a
    change in control or within sixty (60)&#160;days following the
    effective date of the change in control. If the Offer is
    consummated and Purchaser owns a majority of outstanding voting
    Shares, a change in control under the terms of these agreements
    will have occurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Key Employee&#146;s employment is terminated by the
    Company, or any successor thereto, on the consummation of the
    Offer, or within sixty (60)&#160;days following the consummation
    of the Offer (other than for cause, as defined below) and
    provided that the Key Employee executes a general release of all
    claims against the Company, the Key Employee is entitled to a
    lump sum amount equal to a range of nine (9)&#160;to twelve
    (12)&#160;months of the Key Employee&#146;s annual base salary
    in effect immediately prior to the consummation of the Offer,
    payable within ten (10)&#160;days following the Key
    Employee&#146;s termination of employment. If the Key Employee
    is terminated during the period described in the immediately
    preceding sentence, other than for cause, the Company will pay
    fifty percent (50%) of the Key Employee&#146;s premiums for
    COBRA continuation coverage for the Key Employee and his
    eligible dependents for up to eighteen (18)&#160;months. These
    agreements include the same tax &#147;gross up&#148; payment
    provisions and &#147;cause&#148; definitions as described above
    for the Executives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The maximum amount payable with respect to base salary to the
    Key Employees under these agreements is approximately $320,000
    in the aggregate. In addition, the Key Employees may be entitled
    to payments in respect to COBRA continuation coverage.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Exculpation
    and Indemnification of Company Directors and
    Officers</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;102(b)(7) of the DGCL permits a Delaware
    corporation to include a provision in its certificate of
    incorporation that its directors will not be liable to the
    corporation or its stockholders for monetary damages for
    breaches of fiduciary duty. The Company&#146;s certificate of
    incorporation, as amended (the &#147;<U>Certificate</U>&#148;),
    includes such a provision. Such provision, however, does not
    preclude the personal liability of directors for monetary
    damages (i)&#160;for breaches of the duty of loyalty,
    (ii)&#160;for acts or omissions not in good faith, involving
    intentional misconduct, or involving knowing violation of the
    law, (iii)&#160;under Section&#160;174 of the DGCL or
    (iv)&#160;for any transaction from which a director derives an
    improper personal benefit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Additionally, as permitted by Section&#160;145 of the DGCL, the
    Company&#146;s Certificate provides that the Company shall
    indemnify its directors and officers and may indemnify its
    employees and agents in each case to the fullest extent
    permitted by Delaware law.
</DIV>
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    <BR>
    9
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has entered into indemnification agreements with its
    directors to, among other things, provide them with the maximum
    indemnification allowed under applicable law, including
    indemnification for all expenses, judgments, fines and penalties
    actually and reasonably incurred by the directors in connection
    with the defense or settlement of any civil, criminal,
    administrative or investigative action, suit or proceeding
    brought against the director or in which he otherwise becomes
    involved by reason of his relationship with the Company. The
    Company has also purchased directors&#146; and officers&#146;
    liability insurance insuring the Company&#146;s directors and
    officers against certain claims that may be asserted against
    them in their capacity as directors and officers of the Company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;4.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='104'></A><B><I><FONT style="font-family: 'Times New Roman', Times">The
    Solicitation or Recommendation</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Solicitation/Recommendation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After consideration, including a review of the terms and
    conditions of the Offer in consultation with the Company&#146;s
    financial and legal advisors, the full Board, by unanimous vote
    at a meeting on March&#160;12, 2010, determined that the Offer
    is inadequate to the Company&#146;s stockholders and that the
    Offer is not in the best interests of the Company&#146;s
    stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Accordingly, for the reasons described in more detail below,
    the board unanimously recommends that the Company&#146;s
    stockholders reject the Offer and NOT tender their Shares to
    Purchaser pursuant to the Offer.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you have tendered your Shares, you can withdraw them. For
    assistance in withdrawing your Shares, you can contact your
    broker or the Company&#146;s information agent, D.F.
    King&#160;&#038; Co., Inc. (&#147;<U>D.F. King</U>&#148;), at
    the physical address, phone number and electronic mail address
    below.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">D.F.
    King&#160;&#038; Co., Inc.<BR>
    48 Wall Street<BR>
    New York, New York 10005<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Banks and
    Brokers Call:<BR>
    1-212-269-5550
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">All others
    call Toll Free:<BR>
    <FONT style="white-space: nowrap">1-800-967-5079</FONT><BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Email:<BR>
    <I>crft@dfking.com</I>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In reaching the conclusion and in making the recommendation
    described above, the Board consulted with the Company&#146;s
    management, as well as the Company&#146;s financial and legal
    advisors, and took into account a number of reasons, described
    under &#147;Reasons for the Recommendation of the Board&#148;
    below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Copies of the press release and letter to the Company&#146;s
    stockholders relating to the recommendation of the Board to
    reject the Offer are filed as <U>Exhibit (a)(1)</U> and
    <U>Exhibit (a)(2)</U> hereto.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Background
    of the Offer; Reasons for the Recommendation of the
    Board</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Background</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Founded in 1985, the Company 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 the Company can be
    found at www.craftmade.com.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the beginning of the 2006 fiscal year, the slowing of
    housing-related demand affected the Company&#146;s business, and
    has continued since such time. The decline in housing turnover
    was compounded by a broad
</DIV>
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    <BR>
    10
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    economic downturn that began in 2008, has continued into 2010,
    and has negatively impacted both consumer confidence and
    discretionary spending. This economic downturn is widely viewed
    as one of the worst since the Great Depression, and its impact
    has affected all sectors of the economy. This economic
    environment and the corresponding decline in home-related
    spending have significantly impacted both the Specialty and Mass
    retail segments of the Company. In addition to historically low
    levels of new home construction, management believes that
    consumers also have chosen to delay home improvement projects
    and renovations due to well-publicized reports of economic
    weakness, job losses and declining home values.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon emerging from a review of strategic alternatives in 2007
    discussed below, the Company committed to a strategic plan that
    involved, among other things, pursuing strategic value-creating
    acquisitions. Most recently, the acquisition and integration of
    the assets of Woodard, LLC in 2008 provided the Company with a
    solid diversification platform and gave the Company an
    operational scale that has helped it mitigate losses during this
    economic downturn, and ultimately resulted in growth of Company
    revenue to its largest ever of approximately $150&#160;million
    dollars for its fiscal year ended June&#160;30, 2009. Following
    this acquisition, the Company has also focused on the design and
    development of new and innovative ceiling fans, lighting and
    outdoor furniture, and has expanded its distribution of clocks
    and weather gauges through the new distribution channel of
    independent lawn and garden retailers. Between 2007 and the
    present, the Company has introduced 166 new products including
    47 new fans and 23 outdoor furniture collections. These new
    introductions exceed the total new product introductions in the
    Company&#146;s history leading up to 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board has been pleased with the execution of the
    Company&#146;s strategic plan while facing the most challenging
    economic climate in the Company&#146;s history, and continues to
    believe the Company provides a good framework for absorption of
    other acquisition opportunities as well as organic growth that
    will result in significant stockholder return.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On May&#160;9, 2007, the Company announced that it had retained
    Mazzone&#160;&#038; Associates (&#147;<U>Mazzone</U>&#148;) as a
    financial advisor to assist the Company in evaluating its
    strategic alternatives to enhance stockholder value. The
    alternatives included raising capital, acquisitions by the
    Company or a potential sale of the Company. During this time,
    the Company cautioned its stockholders that the exploration of
    alternatives might not result in any transactions and that the
    Company would disclose its decision after the Board had
    concluded the process. The Board also appointed a committee of
    independent directors (the &#147;<U>Strategic Alternatives
    Committee</U>&#148;) to be responsible for the strategic
    alternatives evaluation process.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of this process, through the summer of 2007, at the
    direction of the Strategic Alternatives Committee, Mazzone
    contacted several third parties regarding their possible
    interest in a transaction with the Company. Mazzone provided a
    number of these parties that executed a customary
    confidentiality agreement, including Litex, a Confidential
    Memorandum detailing the Company&#146;s strategic plan for
    growth. The confidentiality agreement executed by Litex included
    a customary standstill provision with a term of
    eighteen&#160;(18)&#160;months.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;15, 2007, in connection with the disclosed
    process, the Company received a letter from Litex indicating its
    interest in a transaction with the Company. The letter stated in
    bold type that it did not constitute an offer or an invitation
    for an offer, and could be withdrawn at any time without prior
    notice. The letter also included a possible price range at which
    Litex might be interested in buying the Company, but this range
    included a discount to the then-recent trading price of the
    Company&#146;s stock. The letter concluded by stating that any
    future offer was contingent upon a number of items, including
    due diligence and further analysis of the Company&#146;s
    projections, with related assumptions. Although representatives
    of Litex purported to have the financial capability to complete
    a potential transaction, Litex&#146;s letter was expressly
    conditioned on obtaining bank financing at acceptable terms. The
    Strategic Alternatives Committee determined that the indication
    of interest of Litex was inadequate. Representatives of the
    Company contacted representatives of Litex, thanked them for
    their time and explained that the Company was not pursuing a
    sale. As Litex was a direct competitor in the lighting industry,
    representatives of the Company requested that all confidential
    information provided to Litex be returned or destroyed, and
    Litex subsequently confirmed in writing that it had complied
    with this obligation.
</DIV>
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    11
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    On August&#160;20, 2007, the Strategic Alternatives Committee
    met to consider the Company&#146;s strategic alternatives.
    Because the Company had not received any offers that it
    considered adequate at the time, the Strategic Alternatives
    Committee decided to recommend to the Board that the Company
    discontinue all activity to pursue a sale of the Company. The
    Strategic Alternatives Committee also decided to recommend to
    the Board that the Company pursue a strategic plan then proposed
    by management to grow the Company organically and through
    strategic acquisitions of companies in the lighting and related
    industries in order to increase long-term stockholder value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;22, 2007, the Strategic Alternatives Committee
    made a report to the Board. Upon the conclusion of this
    presentation, the Board considered and discussed the report of
    the Strategic Alternatives Committee. After careful
    consideration of the report of the Strategic Alternatives
    Committee and presentations by management and advice from legal
    advisors, the Board decided to adopt the recommendation of the
    Strategic Alternatives Committee to conclude the strategic
    review process and adopt the strategic plan of management. The
    Board also was informed by members of management, that as part
    of its strategic plan, they were evaluating the acquisition of
    several candidates. Shortly thereafter, the Company commenced
    negotiations with Woodard, LLC, a manufacturer of outdoor
    furniture, and then consummated a transaction in January 2008,
    pursuant to which the Company acquired substantially all of the
    assets of Woodard, LLC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;12, 2009, John Mares, Chief Financial Officer
    and a director of Litex, participated in the Company&#146;s
    quarterly investor conference call. At this time, neither
    Mr.&#160;Mares nor Litex were investors to the Company&#146;s
    knowledge. Mr.&#160;Mares asked several questions regarding the
    Company&#146;s financial performance and whether the Company
    believed it needed to impair its intangible assets. Marcus
    Scrudder, the Company&#146;s Chief Executive Officer, responded
    that the Company had addressed these issues in accordance with
    generally accepted accounting principles.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;9, 2009, Litex&#146;s legal counsel sent a letter
    to James R. Ridings, Chairman of the Board of the Company,
    stating that Litex was interested in exploring a potential
    business combination with the Company and requested a meeting
    with the Company &#147;to informally explore the possibilities
    regarding Litex acquiring Craftmade.&#148; The letter further
    stated that it was a letter of inquiry only and did not
    constitute a proposal or offer to acquire any interest in the
    Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At a meeting held on April&#160;16, 2009, the Board considered
    whether to engage in discussions with Litex and unanimously
    determined that pursuing a sale of the Company at that time when
    the stock was trading at historical lows was not in the best
    interests of its stockholders. After consideration of the letter
    of inquiry and discussion with the Company&#146;s legal counsel,
    the Board reiterated its determination that the Company was not
    for sale. The Board decided, however, that representatives from
    management should meet with Litex only if Litex in advance of
    any meeting would provide an agenda for such meeting and
    additional information about Litex.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;17, 2009, the Company&#146;s legal counsel
    telephoned Litex&#146;s legal counsel to inform him that the
    Board had met and determined that although the Company was not
    for sale, the Company would be willing to meet with Litex if
    Litex provided the information mentioned above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;17, 2009, Litex&#146;s legal counsel sent a letter
    to the Company&#146;s legal counsel reiterating Litex&#146;s
    interest in exploring a potential business combination with the
    Company and requesting a meeting with the Company. The letter
    further stated that the &#147;purpose of this meeting is to
    informally explore the possibilities regarding Litex acquiring
    Craftmade with Litex being the surviving private entity. Other
    than this purpose, Litex has no specific agenda for this
    meeting.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;23, 2009, the Board held a meeting to discuss
    further the Litex indication of interest. After discussion with
    the Company&#146;s legal advisors, the Board confirmed its
    decision that the Company was not for sale and that because
    Litex had not provided either an agenda or any additional
    meaningful information, the Board did not believe that there was
    any reason for a meeting at this time. However, the Board
    determined that if Litex had any additional information in the
    future, the Board would consider it at that time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;23, 2009, the Company&#146;s legal counsel sent a
    letter to Litex&#146;s legal counsel stating that the Board of
    the Company stood by its prior determination that the Company
    was not for sale after considering
</DIV>
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    <BR>
    12
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Litex&#146;s request. The letter further stated that because
    Litex had not submitted an agenda or provided any other
    meaningful information, the Board did not believe that there was
    a basis for a meeting at this time. The letter also stated that
    in the event that Litex believes in the future that it has
    information for the Board to consider, the Board would give such
    information due consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;8, 2010, the Company received a letter from
    Litex making an unsolicited proposal to acquire the Company for
    $3.25 per share and requesting a meeting with the Company. The
    text of the letter is set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>James R. Ridings, Chairman<BR>
    William E. Bucek, Director<BR>
    A. Paul Knuckley, Director<BR>
    R. Don Morris, Director<BR>
    Lary Snodgrass, Director<BR>
    Craftmade International, Inc.<BR>
    650 South Royal Lane<BR>
    Suite&#160;100<BR>
    Coppell, Texas 75019</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Gentlemen:</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex Industries, Limited (&#147;Litex&#148;) is interested
    in acquiring all of the common stock of Craftmade International,
    Inc. (&#147;Craftmade&#148;) in an all cash transaction.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex has tried multiple times to open discussions regarding
    our interest in acquiring Craftmade&#146;s common stock. Since
    Litex&#146;s prior advances have been rebuffed, we are now
    formally communicating our strong interest in pursuing an
    acquisition of Craftmade to its Board of Directors.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex proposes acquiring all of Craftmade&#146;s outstanding
    common stock for a price of $3.25 per share paid in cash at
    closing. Litex&#146;s proposal is based upon its review of
    Craftmade&#146;s publicly available information and is not
    subject to any financing contingency. Litex may be willing to
    pay more than $3.25 per share once we receive and review current
    financial and business information. Litex is prepared to sign a
    confidentiality agreement and, if there is particularly
    sensitive customer information, Craftmade may provide that
    information to us in reasonably redacted form.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex is also prepared to immediately draft a definitive
    agreement which would contain, at a minimum, a provision for
    cancellation of Craftmade&#146;s shareholder rights plan (poison
    pill) before closing.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex has engaged Stifel, Nicolaus&#160;&#038; Company,
    Incorporated as our financial advisor and Greenberg Traurig, LLP
    as our external legal counsel. Our proposal is negotiable. Litex
    is very confident that a transaction can be consummated which is
    in the best interest of Craftmade&#146;s shareholders and which
    maximizes those shareholders&#146; current investment value.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex&#146;s $3.25 per share offer represents a premium of
    75.7% to Craftmade&#146;s closing price on December&#160;31,
    2009 of $1.85 and a 70.2% premium to Craftmade&#146;s average
    closing price of $1.91 over the past 30 trading days ended
    December&#160;31, 2009. Those indicated premiums are well above
    what acquirers normally pay as the average premium paid by
    purchasers for U.S.&#160;company acquisitions between
    $10&#160;million and $100&#160;million since January&#160;1,
    2006 has been 42.6%.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Given the risk and uncertainty of operating in these
    difficult economic times, Litex firmly believes our $3.25 per
    share proposal provides each Craftmade shareholder with
    immediate value well beyond that which could be achieved by
    Craftmade on a long-term, stand-alone basis. By all financial
    measures &#151; multiples of EBITDA, free cash flow, net income,
    and book value &#151; our proposal is a compelling realization
    event for Craftmade shareholders.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex sees consolidation in the ceiling fan and lighting
    industry increasing in pace for the foreseeable future. A
    company&#146;s size and financial strength will significantly
    impact its future success by 1)&#160;determining prices it can
    negotiate with suppliers, 2)&#160;spreading fixed costs over a
    larger revenue base, and 3)&#160;attracting </I>
</DIV>
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    <BR>
    13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    <I><FONT style="white-space: nowrap">and/or</FONT>
    negotiating the cost of capital. Litex&#146;s review of
    Craftmade&#146;s credit facilities and current market
    capitalization indicates Craftmade is simply not large enough to
    compete effectively as an independent company.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex is one of the largest independent ceiling fan and
    lighting distributors in the United States with revenues of
    approximately $200&#160;million. Litex&#146;s growth and
    profitability, even during the tough economic times of the past
    two years, are a direct result of our focused customer service,
    innovation, strategic acquisitions and internal growth. Litex
    has an exceptionally strong balance sheet with considerable cash
    on hand, no debt (excluding trade payables), significant
    retained earnings, and enviable financing options.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex intends to initially integrate Craftmade into its
    operations as an independent subsidiary. Full integration would
    occur at a later point in time. Additionally, Litex would retain
    sufficient Craftmade senior personnel to ensure the success of
    the combined entity and to provide for future management
    succession at Litex.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Due diligence would be normal and customary and we would
    expect to complete this process expeditiously. We would also
    permit Craftmade to conduct a &#147;market check&#148; to
    determine whether a superior proposal could be obtained. We do
    not anticipate any delays due to obtaining any required
    regulatory approvals.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>While it remains Litex&#146;s preference to negotiate a
    mutually acceptable transaction, Litex will pursue this
    transaction directly with your shareholders should you disregard
    this proposal. Litex may also make an announcement of its intent
    to acquire Craftmade during the upcoming Dallas Lighting Show
    because of the significance of this proposal.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Litex believes it is in Craftmade shareholders&#146; best
    interest that you consider our proposal and exercise your
    fiduciary responsibilities. Litex&#146;s officers, directors and
    advisors are prepared to meet with Craftmade&#146;s Board of
    Directors
    <FONT style="white-space: nowrap">and/or</FONT>
    executive management at your convenience. We look forward to
    your prompt response.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Please call me directly at
    <FONT style="white-space: nowrap">(972)&#160;871-4350</FONT>
    to discuss this proposal. You may also contact Jon Mahan of
    Stifel, Nicolaus&#160;&#038; Company, Incorporated, at
    <FONT style="white-space: nowrap">(443)&#160;224-1413,</FONT>
    or John C. Dickey of Greenberg Traurig, LLP, at
    <FONT style="white-space: nowrap">(214)&#160;665-3600.</FONT></I>
</DIV>

<DIV style="margin-top: 20pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Litex
    Industries, Limited</FONT></I>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">John
    Mares<BR>
    Chief Financial Officer and Board Member</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="95%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>cc:</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <I>J. Marcus Scrudder (CEO Craftmade International, Inc.)</I>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <I>Jon Mahan</I>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <I>John C. Dickey,&#160;Esq.</I>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <I>Alan Annex,&#160;Esq.</I>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <I>Bryan (sic) D. Barnard,&#160;Esq. (Haynes and Boone, LLP)</I>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;9, 2010, the Board met to consider Litex&#146;s
    unsolicited proposal. After careful consideration of
    presentations by management and advice from its advisors, the
    Board unanimously concluded that the Litex unsolicited proposal
    significantly undervalued the Company and was opportunistic. The
    Board decided,
</DIV>
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    14
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    however, to have members of management and a board member meet
    with representatives of Litex&#146;s board of directors and
    principal owners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;11, 2010, the Company&#146;s legal counsel
    telephoned Litex&#146;s legal counsel to reiterate the
    Company&#146;s position that it was not for sale and to
    communicate that representatives of the Company would meet with
    representatives of Litex the following week after the upcoming
    lighting industry market in Dallas, Texas. Litex&#146;s counsel
    then called the Company&#146;s legal counsel the next day
    stating that Litex wanted to meet before the lighting market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;14, 2010, representatives of the Company met
    with representatives of Litex and its financial advisor. Litex
    discussed its views of the benefits to Litex of a combination of
    the two companies, but did not address any meaningful benefit
    for the Company&#146;s stockholders. The Company responded by
    telling Litex that the Company was not for sale and was focused
    on implementing its strategic plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;15, 2010, Litex issued a press release
    announcing its offer for the Company, and, in addition made
    announcements regarding its offer at the Dallas lighting show.
    The Litex press release included a statement that &#147;Litex is
    very confident that a transaction can be consummated that is in
    the best interest of and that maximized the current investment
    value for Craftmade&#146;s stockholders.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Also on January&#160;15, 2010, the Company issued a press
    release announcing that the Board had unanimously rejected the
    unsolicited proposal from Litex because the Board believed that
    it significantly undervalued the Company and was not in the best
    interests of its stockholders. The Company also noted in the
    press release that it believed that Litex&#146;s statement about
    being confident in its ability to consummate a transaction was
    without foundation based on the prior communications between the
    Company and Litex.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;12, 2010, the Company&#146;s legal advisors
    contacted Litex to explain that the Company was continuing to
    receive comments from third parties that Litex&#146;s
    representatives were contacting customers of the Company and
    stating that the sale of the Company to Litex was imminent. The
    Company&#146;s legal advisors requested that Litex immediately
    (i)&#160;cease and desist from making any false and disparaging
    comments regarding its unsolicited and rejected efforts to
    acquire the Company; (ii)&#160;instruct its employees and
    representatives to cease telling those in the industry that an
    acquisition of the Company was imminent; and (iii)&#160;cease
    and desist from any activities that were intended to interfere
    with the Company&#146;s existing and prospective contractual and
    business relationships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;18, 2010, James R. Ridings, Chairman of the
    Board, and Lary C. Snodgrass, a Director of the Company, met
    with Mr.&#160;Mares for lunch at his request. During this time,
    Mr.&#160;Mares communicated his beliefs regarding the benefits
    to Litex of a sale of the Company. Messrs.&#160;Ridings and
    Snodgrass explained that the Company was not for sale and that
    the Company was executing its strategic plan for long-term
    growth and enhanced stockholder value. Messrs.&#160;Ridings and
    Snodgrass also expressed their concern over the comments the
    Company had received about Litex&#146;s statement to customers
    about a sale being imminent. Mr.&#160;Mares indicated he was not
    aware of this but would ensure that Litex would cease any such
    comments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;2, 2010, Litex and Purchaser commenced the Offer
    at a cash price of $5.25 per share. On March&#160;3, 2010, the
    Company issued a press release requesting that its stockholders
    take no action in response to the Offer and informing its
    stockholders that the Board, in consultation with its financial
    and legal advisors, intends to advise stockholders of its formal
    position regarding the Offer within ten business days by making
    available to stockholders and filing with the SEC a
    solicitation/recommendation statement on
    <FONT style="white-space: nowrap">Schedule&#160;14D-9.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;3, 2010, the Board met to discuss the Offer and
    agreed to engage B. Riley&#160;&#038; Co., LLC (&#147;B.
    Riley&#148;) as its financial advisor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;12, 2010, the Board met to review the terms of the
    Offer with the assistance of its financial advisor, B. Riley,
    and legal advisor, Haynes and Boone, LLP. During this meeting,
    B. Riley rendered an oral opinion to the Board, subsequently
    confirmed in writing, that as of March&#160;12, 2010, and based
    upon and subject to the factors and assumptions set forth in the
    written opinion, the consideration proposed to be paid to the
    holders of the Company&#146;s Common Stock (other than Litex and
    its affiliates) pursuant to the Offer was inadequate from a
    financial point of view to such holders. At the meeting, the
    Board unanimously determined
</DIV>
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    <BR>
    15
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    that the Offer significantly undervalues the Company and is not
    in the best interests of the Company and its stockholders.
    Accordingly, the Board unanimously determined to recommend that
    the stockholders reject the Offer and not tender their Shares
    into the Offer. The full text of the written opinion of B. Riley
    dated March&#160;12, 2010, which sets forth the assumptions
    made, procedures followed, matters considered and limitations on
    the review undertaken in connection with such opinion, is
    attached as <U>Annex&#160;A</U>. B. Riley provided its opinion
    for the information and assistance of the Board in connection
    with its consideration of the Offer. The opinion of B. Riley is
    not a recommendation as to whether or not any holder of the
    Shares should tender such Shares in connection with the Offer or
    any other matter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Reasons
    for the Recommendation of the Board</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In reaching the conclusions and in making the recommendation
    described above, the Board consulted with the Company&#146;s
    management and financial and legal advisors, and took into
    account numerous factors, including but not limited to the
    factors listed below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board believes that the Offer significantly undervalues the
    Company in light of the Company&#146;s superior track record and
    growth prospects, that the Offer&#146;s timing is extremely
    opportunistic, and that the Offer&#146;s litany of conditions
    create significant uncertainty as to when &#151;&#160;if
    ever&#160;&#151; the Company&#146;s stockholders would receive
    consideration under the Offer. The Board is confident that the
    Company will, consistent with its history, deliver greater value
    to its stockholders by executing its strategic plan than would
    be obtained under the Offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">I)&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">The
    Offer significantly undervalues the Company</FONT></U></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board believes that the Offer significantly undervalues the
    Company as it does not reflect the underlying value of the
    Company&#146;s assets, operations and strategic plan, including
    its industry-leading position, unrivaled platform and future
    growth prospects. Since its founding, the Company has delivered
    superior results for its stockholders and, by virtue of its
    industry position, strategic direction, management and culture,
    the Company is poised to resume the delivery of superior results
    for its stockholders. Thus, the Board believes that the Offer is
    disadvantageous to the Company stockholders for the following
    reasons:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>The Offer does not reflect the value of the Company as one of
    the largest and most respected distributors of ceiling fans,
    interior lighting and related products.</I>&#160;&#160;The
    Company is the one of the largest and most respected
    distributors, designers and marketers of ceiling fans, light
    kits, bath-strip lighting, interior lighting fixtures, light
    bulbs, door chimes, ventilation systems, outdoor patio furniture
    and related accessories in the U.S. The Company believes its
    position in its industries is preeminent. The Company&#146;s
    national scale, strong local presence and broad product and
    service offerings deliver a compelling value proposition to its
    diversified customer base. The Company&#146;s brands, including
    the &#147;Craftmade&#148; brand that has been around for over
    20&#160;years and the &#147;Woodard&#148; brand that has been
    around for around 150&#160;years, are valuable assets of the
    Company.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>The Offer fails to recognize the value of the recently
    acquired furniture business.</I>&#160;&#160;The Company believes
    that the recently acquired furniture segment of the
    Company&#146;s business has a significant value that is not
    attributed in Litex&#146;s offer. In various written and oral
    communications to the Company, Litex discussed the lighting
    industry, Litex&#146;s lighting business, the benefits of adding
    the &#147;Craftmade&#148; brand to Litex&#146;s business and the
    benefits of combining the Company&#146;s fan and lighting
    business with Litex&#146;s business. Litex has made little if
    any mention of the outdoor furniture business and of the
    Company&#146;s significant investment and efforts in this
    industry through its acquisition of the &#147;Woodard&#148;
    furniture line in 2008. In addition, Litex has made little if
    any mention of the strength or value of the &#147;Woodard&#148;
    brand. With the 2008 acquisition of certain assets of Woodard,
    LLC, the Company has broadened its product offering to include
    outdoor patio furniture, opened up new channels and outlets for
    existing Company products, and created avenues for cross selling
    both existing and new products to its customers. The Company
    believes that the successful integration of Woodard, LLC has
    enabled the Company to be in a superior position to its
    competitors. The Company further believes that the benefits of
    such integration will be more fully realized as the economy
    recovers and provides the Company with diversification from the
    lighting and ceiling fan business.
</TD>
</TR>

</TABLE>
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    <BR>
    16
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>The Company&#146;s ownership base indicates strong support
    for the Company&#146;s operations</I>.&#160;&#160;The
    Company&#146;s directors, executive officers, employees,
    representatives, customers and suppliers in the aggregate own
    approximately 22% of the Shares. The Company believes that this
    significant stock ownership, not only by insiders but by persons
    doing business with the Company, shows a strong support for the
    Company&#146;s management and operations as currently being
    conducted.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Deregistration and other cost savings have not been fully
    realized</I>.&#160;&#160;The Company is in the process of
    deregistering its Common Stock from the provisions of the
    Exchange Act. By deregistering, the Company believes that it
    will be able to realize significant cost savings over many years
    to come. In addition, the Company has focused for the past
    18&#160;months on implementing cost saving measures through the
    integration of its businesses and the creation of more
    synergies. However, because many of these cost savings began in
    the last twelve months, they have not yet been fully reflected
    in the financial statements or the Company&#146;s stock price
    and the Company believes that the value attributable to these
    cost savings is not reflected in the Offer price.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>The Offer does not reflect the value inherent in the
    Company&#146;s future prospects</I>.&#160;&#160;The Board
    believes that the value to stockholders reflected in the
    Company&#146;s current strategic plan is greater than the value
    achievable for stockholders with the Offer. The Company&#146;s
    strategic plan is to grow the Company organically and through
    acquisitions of companies in the lighting and related industries
    to increase long-term stockholder value. Thus, the Board
    believes that the Company will deliver more value to the
    Company&#146;s stockholders by operating the business in
    accordance with the current strategic plan than by accepting the
    Offer.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">II)&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">The
    timing of the Offer is extremely opportunistic</FONT></U></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board believes that the timing of the Offer is extremely
    opportunistic and disadvantageous to the Company&#146;s
    stockholders for the following reasons:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Litex knows that the risk to the success of its Offer
    increases dramatically as the Company resumes the growth and
    success which have been the hallmarks of its performance over
    its history</I>.&#160;&#160;The timing is excellent for
    Litex&#160;&#151; but very poor for the Company&#146;s
    stockholders&#160;&#151; in light of the depressed value of the
    Company&#146;s Common Stock prior to the announcement of the
    Offer. The Board believes that Litex decided that it could not
    wait any longer to launch its Offer because the improving
    economic conditions that Litex observed were at risk of soon
    becoming reflected in the Company&#146;s stock price.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>The Offer takes advantage of a severe economic downturn that
    has affected the entire housing industry as well as the entire
    economy</I>.&#160;&#160;At the beginning of the 2007 fiscal
    year, the slowing of housing-related demand affected the
    Company&#146;s business as well as business generally in the
    Company&#146;s industry. In 2009, housing starts equaled just
    over one-half of the housing starts in each of the annual
    periods from 2006 through 2008, and just over one-third of the
    housing starts in each of the annual periods from 1959 through
    2005. The decline in housing starts and housing turnover was
    compounded by a broad economic downturn which began in 2008 and
    has continued into 2009, and which has negatively impacted both
    consumer confidence and discretionary spending. In addition,
    management believes that consumers have chosen to delay home
    improvement projects and renovations due to well-publicized
    reports of economic weakness, job losses and declining home
    values.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>The timing of the Offer is opportunistic because it fails to
    consider the Company&#146;s significant efforts that have
    already been implemented to return to long-term
    profitability</I>.&#160;&#160;Despite the challenges faced by
    the housing industry in the last few years, the Company has
    continued to introduce innovative and distinctive products that
    reflect emerging consumer trends, including new lines of
    interior and exterior lighting fixtures, outdoor furniture,
    ceiling fans and vent fans. Between 2007 and the present, the
    Company introduced 166 new products including 47 new fans and 23
    outdoor furniture collections. These new introductions exceed
    the total new product introductions in the Company&#146;s
    history leading up to 2007. The Company continues to pursue its
    strategic plans to grow its business both organically and
    through acquisitions such as the Woodard acquisition, while also
    focusing on developing and implementing more immediate plans to
    mitigate the impact of the current economic downturn. The
</TD>
</TR>
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    <BR>
    17
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Company believes that by continuing to invest in, and enter
    into, innovative and distinctive lines of business, it will
    emerge from the recession earlier than its competitors and will
    be in a superior competitive position. The Company further
    believes that many of the benefits of the foregoing initiatives
    during the recession have not yet been fully realized.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>If Litex is able to complete the Offer now, Litex, and not
    the Company&#146;s stockholders, will reap the benefits of the
    Company&#146;s efforts to return to long-term
    profitability.&#160;&#160;</I>The Company&#146;s revenues have
    not decreased at the same rate as the recent decrease in housing
    starts. The Board believes that this fact is attributable to the
    innovative and distinctive products the Company has introduced
    since 2007. Even though there have been fewer housing starts in
    the last few years, the Company&#146;s revenues per housing
    start have increased because of the additional product offerings
    at a range of price points. In addition, the Company has been
    successful in maintaining relationships with its customers and
    has not suffered significant attrition in its customers during
    the downturn. If Litex is able to complete the Offer, Litex will
    reap the benefits sown by the Company&#146;s management, and the
    Company&#146;s stockholders will not realize the long-term
    stockholder value that the Company has been working to create.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">III)&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">The
    Company has received an inadequacy opinion from its financial
    advisor</FONT></U></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board considered the fact that B. Riley rendered an opinion
    to the Board, subsequently confirmed in writing, that as of
    March&#160;12, 2010, and based upon and subject to the factors
    and assumptions set forth in the written opinion, the
    consideration proposed to be paid to the holders of the Shares
    (other than Litex or its affiliates) pursuant to the Offer was
    inadequate from a financial point of view to such holders. The
    full text of the written opinion of B. Riley, dated
    March&#160;12, 2010, is attached as <U>Annex&#160;A</U>. The
    written opinion sets forth the assumptions made, procedures
    followed, matters considered and limitations on the review
    undertaken. B. Riley provided its opinion for the information
    and assistance of the Board in connection with its consideration
    of the Offer. The opinion of B. Riley is not a recommendation as
    to whether or not any holder of the Shares should tender such
    Shares in connection with the Offer or any other matter.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">IV)&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: 'Times New Roman', Times">The
    consummation of the Offer and the Proposed Merger is illusory
    and highly uncertain</FONT></U></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board believes that the consummation of the Offer and the
    Proposed Merger is illusory and highly uncertain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Litex and Purchaser have failed to disclose adequate funding
    to consummate the Offer.&#160;&#160;</I>Although Litex and
    Purchaser indicate in the Schedule&#160;TO that the Offer is not
    subject to a financing condition, the Board believes that this
    statement is not true because neither Litex nor Purchaser
    disclosed that they have a sufficient amount of available funds
    to complete the Offer and discharge the Company&#146;s
    outstanding indebtedness. At the same time, Litex and Purchaser
    disclosed in the Offer to Purchase that they do not have any
    alternative financing arrangements for the Offer. According to
    the Offer to Purchase, Purchaser estimates that approximately
    $29,000,000 will be required to consummate the Offer and that
    approximately $35,053,000 will be required to discharge current
    Company indebtedness, for a total of $64,053,000. However, Litex
    disclosed in the Offer to Purchase that it has &#147;liquid
    assets&#148; of only $57,000,000, comprised of approximately
    $340,000 in cash, approximately $19,660,000 of marketable
    securities and approximately $37,000,000 of other &#147;liquid
    assets,&#148; resulting in a shortfall of approximately
    $7,000,000 necessary to consummate the Offer and discharge the
    Company&#146;s indebtedness.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;&#160;
</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;The Company currently estimates
    that the total amount of funds that Litex and Purchaser would
    need to discharge all Company indebtedness, including prepayment
    penalties, is approximately $47,000,000, which indicates a total
    shortfall of approximately $19,000,000. If Litex and Purchaser
    do not or are not able to discharge the indebtedness under the
    Revolving Loan Agreement and the Term Loan Agreement and such
    indebtedness is accelerated as a result of the completion of the
    Offer, the lenders could foreclose on substantially all of the
    Company&#146;s assets. Because Litex and Purchaser have not
    disclosed adequate funding for the Offer, including the
    discharge of the indebtedness that may be
</TD>
</TR>

</TABLE>
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    <BR>
    18
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    accelerated in connection therewith, the Board believes it is
    highly unlikely that the Offer could be consummated.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>There is no assurance that even if the Offer is consummated,
    the Proposed Merger will be consummated.&#160;&#160;</I>Litex
    and Purchaser indicate in the Offer that even if the Offer is
    consummated, Litex and Purchaser may determine not to proceed
    with the Proposed Merger for a number of reasons, including a
    change in economic conditions and &#147;other unforeseen
    factors.&#148; The Board believes that this gives Litex and
    Purchaser wide discretion in determining not to cash out
    non-tendering stockholders, which makes it difficult, if not
    impossible, for the Board and the stockholders to consider the
    sufficiency of the Offer and whether the Offer will be
    consummated.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Litex and Purchaser have not disclosed any specific plans
    with respect to the Company.&#160;&#160;</I>Although the Offer
    to Purchase states that they &#147;are considering&#148; taking
    action to solicit consents to replace the Board with Litex
    nominees, Litex and Purchaser have evidently not yet formulated
    a plan to take control of the Board as soon as practicable after
    consummation of the Offer. The Company questions the real intent
    of Litex and Purchaser given the lack of disclosure on the
    specific plans.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>The Offer contains a lengthy list of conditions, the
    satisfaction of which is in Purchaser&#146;s sole
    discretion</I>.&#160;&#160;As described under Item&#160;2 of
    this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    and Item&#160;14 of the Offer to Purchase, the Offer is subject
    to numerous conditions, including, among others, the following
    conditions:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="2%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Adverse Effect Condition</I>.&#160;&#160;As described in
    Item&#160;2 of this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9,</FONT>
    the Offer is conditioned on the Adverse Effect Condition, which
    gives Litex and Purchaser the right not to consummate the Offer
    if, among other items, Litex becomes aware that any material
    amount of indebtedness of the Company has been or will be
    accelerated as a result of or in connection with the Offer. As
    described in Item&#160;2 above, a material amount of the
    Company&#146;s indebtedness may be accelerated upon the
    consummation of the Offer. The change in control and
    acceleration provisions are disclosed in the Company&#146;s
    public SEC filings. The fact that Litex and Purchaser have
    commenced an Offer that includes this condition when they have
    stated that they intend to discharge all Company indebtedness
    without having disclosed sufficient funds to do so and without a
    concrete plan to refinance or pay off this indebtedness when
    they know or should have known that the indebtedness may be
    accelerated upon the consummation of the Offer renders the Offer
    illusory.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>The MAE Condition</I>.&#160;&#160;As described in Item&#160;2
    of this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9,</FONT>
    the Offer is conditioned upon the MAE Condition, the
    requirements of which include, among other items, that there not
    have occurred any change to the business, operations or
    prospects of the Company that may be materially adverse with
    respect to the value of the Company or any of its subsidiaries
    or the value of the Shares to Litex or any of its affiliates.
    This condition is sufficiently broad that Litex or Purchaser
    could argue almost any change to the Company&#146;s business,
    including changes arising in the ordinary course of the
    operations of the Company, may cause this condition to be
    satisfied.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Equity Market Condition</I>.&#160;&#160;The Offer is
    conditioned upon the performance of the Dow Jones Industrial
    Average, the S&#038;P 500 index and the NASDAQ Composite Index
    (together, the &#147;<U>Indices</U>&#148;). To the extent that
    any of these Indices decline by an amount in excess of 15%
    measured from the close of business at the time of commencement
    of the Offer, Litex is not required to complete the Offer. In
    the past two years, the equity markets have dropped over 15% in
    a 20
    <FONT style="white-space: nowrap">trading-day</FONT>
    period numerous times.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Litigation Condition</I>.&#160;&#160;The Offer is conditioned
    on the absence of various types of litigation and the condition
    is sufficiently broad that Litex may argue that any litigation
    that may be filed in connection with the Offer could trigger
    this condition.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The effects of these, and other numerous conditions, is that the
    Company&#146;s stockholders cannot be assured that Litex will be
    required to consummate the Offer. A number of the conditions are
    broad, are of questionable relevance and are solely for the
    benefit of Litex and Purchaser. Compliance with some of these
    conditions
</DIV>
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    <BR>
    19
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    could restrict the Company&#146;s ability to manage its business
    in the ordinary course and may not be capable of being satisfied
    in the event that the Company continues to operate its business
    consistent with past practice.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Considerations
    of the Board</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing discussion of the information and factors
    considered by the Board is not meant to be exhaustive, but
    includes the material information, factors and analyses
    considered by the Board in reaching its conclusions and
    recommendation in relation to the Offer and the transaction
    proposed thereby. The members of the Board evaluated the various
    factors listed above in light of their knowledge of the
    business, financial consideration and prospects of the Company,
    taking into account the advice of the Company&#146;s financial
    and legal advisors. In light of the variety of factors and
    amount of information that the Board considered, the members of
    the Board did not find it practicable to provide specific
    assessment of, quantify or otherwise assign any relative weights
    to, the factors considered in determining its recommendation.
    However, the recommendation of the Board was made after
    considering the totality of the information and factors
    involved. Individual members of the Board may have given
    different weight to different factors. In addition, in arriving
    at its recommendation, the directors of the Company were aware
    of the interests of certain officers and directors of the
    Company as described above under &#147;Item&#160;3.&#160;Past
    Contracts, Transactions, Negotiations and Agreements.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Recommendation
    of the Board</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In light of the factors described above, the Board has
    unanimously determined that the Offer is inadequate and not in
    the best interests of the Company or its stockholders.
    <B>Therefore, the Board unanimously recommends that the
    stockholders reject the Offer and not tender their Shares to
    Purchaser pursuant to the Offer.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Intent to
    Tender</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the knowledge of the Company, after making reasonable
    inquiry, none of the Company&#146;s executive officers,
    directors, affiliates or subsidiaries currently intends to
    tender Shares held of record or beneficially by such person for
    purchase pursuant to the Offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;5.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='105'></A><B><I><FONT style="font-family: 'Times New Roman', Times">Person/Assets
    Retained, Employed, Compensated or Used</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has retained B. Riley as its financial advisor in
    connection with, among other things, the Company&#146;s analysis
    and consideration of, and response to, the Offer. B. Riley will
    receive a customary fee for its services. In addition, the
    Company has agreed to reimburse B. Riley for its reasonable
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses and indemnify B. Riley and certain related persons
    against certain liabilities arising out of or in connection with
    the engagement. B. Riley has acted as the Company&#146;s
    &#147;Dedicated Advisor for Disclosure&#148; for OTCQX since
    November 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company also has engaged D.F. King to assist it in
    connection with the Company&#146;s communications with its
    stockholders with respect to the Offer. D.F. King will receive a
    customary fee for its services. In addition, the Company has
    agreed to reimburse D.F. King for its reasonable
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses and to indemnify it and certain related persons against
    certain liabilities arising out of or in connection with the
    engagement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as set forth above, neither the Company nor any person
    acting on its behalf employs or currently intends to employ,
    retain, or compensate any person to make solicitations or
    recommendations to the stockholders of the Company on its behalf
    with respect to the Offer.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;6.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='106'></A><B><I><FONT style="font-family: 'Times New Roman', Times">Interest
    in Securities of the Subject Company</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the past 60&#160;days, no transactions with respect to
    the Common Stock have been effected by the Company or, to the
    Company&#146;s knowledge after reasonable inquiry and a review
    of Form&#160;4 filings, by any of its current executive
    officers, directors, affiliates or subsidiaries, except for the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="18%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Price Per<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name, Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Date</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Nature of Transaction</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>of Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Share</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Marcus J. Scrudder,<BR>
    Chief Executive Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    02/17/2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Rule 16b-3(d) Grant
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    C. Brett Burford,<BR>
    Chief Financial Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    02/17/2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Rule 16b-3(d) Grant
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brad Heimann, President and Chief Operating<BR>
    Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    02/17/2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Rule 16b-3(d) Grant
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Juan Carlos Loredo,<BR>
    Chief Marketing Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    02/17/2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Rule 16b-3(d) Grant
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Todd A. Teiber,<BR>
    Senior Vice President of<BR>
    Specialty Sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    02/17/2010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Rule 16b-3(d) Grant
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No information has been included in this Item&#160;6 with
    respect to any transactions that have been effected within the
    past 60&#160;days by persons or entities that hold 5% or more of
    the outstanding Shares but are otherwise unaffiliated with the
    Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;7.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='107'></A><B><I><FONT style="font-family: 'Times New Roman', Times">Purposes
    of the Transaction and Plans or Proposals</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise set forth in this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    (including in the Exhibits to this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9)</FONT>
    or as incorporated in this
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    by reference, the Company is not currently undertaking or
    engaged in any negotiations in response to the Offer that relate
    to, or would result in, (i)&#160;a tender offer for, or other
    acquisition of, the Common Stock by the Company, any of its
    subsidiaries, or any other person, (ii)&#160;any superior
    transaction, such as a merger, reorganization, or liquidation,
    involving the Company or any of its subsidiaries, (iii)&#160;any
    purchase, sale, or transfer of a material amount of assets of
    the Company or any of its subsidiaries, or (iv)&#160;any
    material change in the present dividend rate or policy, or
    indebtedness or capitalization, of the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;8.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='108'></A><B><I><FONT style="font-family: 'Times New Roman', Times">Additional
    Information</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information contained in all of the Exhibits referred to in
    Item&#160;9 below is incorporated herein by reference in its
    entirety.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stockholder
    Rights Agreement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With its stockholders&#146; interests in mind, and like many
    companies, the Company has taken measures to protect its value
    for its stockholders. One of these measures is the Rights
    Agreement, which is similar to rights agreements adopted by many
    other public companies. The purpose of the Rights Agreement is
    to prevent third parties from opportunistically acquiring the
    Company in a transaction that the Board believes is not in the
    best interests of the Company&#146;s stockholders. The Rights
    Agreement requires any party seeking to acquire 15% or more of
    the Company&#146;s outstanding Common Stock to obtain the
    approval of the Board or else the Rights held by the
    Company&#146;s stockholders other than the acquirer become
    exercisable for Common Stock or preferred stock of the Company,
    or Common Stock of the acquirer, at a discounted price that
    would make the transaction prohibitively expensive. The Board
    believes the Rights Agreement has helped the Company&#146;s
    stockholders at this time by effectively preventing Litex or
    Purchaser from opportunistically acquiring the Company at a
    price that the Board believes is inadequate for the reasons
    discussed above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the meeting of the Board on March&#160;12, 2010, the Board
    unanimously resolved that the &#147;Distribution Date&#148;
    under the Rights Agreement will be deferred until the earlier of
    (i)&#160;the close of business on the tenth calendar day after
    the &#147;Stock Acquisition Date&#148; (as defined in the Rights
    Agreement) and (ii)&#160;such date as may be determined by the
    Board. Until the Distribution Date, the Rights will continue to
    be evidenced by the certificate for the Common Stock, and the
    Rights will be transferable only in connection with the transfer
    of the associated Common Stock.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A copy of the Rights Agreement has been filed with the SEC as an
    exhibit to a Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;8-A,</FONT>
    filed on July&#160;9, 1999, and a
    <FONT style="white-space: nowrap">Form&#160;8-A/A</FONT>
    filed on June&#160;15, 2009, and is incorporated herein by
    reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Delaware
    General Corporation Law</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company is incorporated under the laws of the State of
    Delaware. The following provisions of the DGCL are therefore at
    issue with respect to the Offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Business Combination Statute.</I>&#160;&#160;Section&#160;203
    of the DGCL prevents an &#147;interested stockholder&#148;
    (generally defined as a person who, together with its affiliates
    and associates, beneficially owns 15% or more of a
    corporation&#146;s voting stock) from engaging in a
    &#147;business combination&#148; (which is defined to include,
    among other transactions, a merger, a consolidation, a sale of a
    significant amount of assets, and a sale of stock) with a
    Delaware corporation for three years following the time such
    person became an interested stockholder, unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;before such person became an interested stockholder,
    the board of directors of the corporation approved either the
    business combination or the transaction in which the interested
    stockholder became an interested stockholder;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;upon consummation of the transaction in which the
    interested stockholder became an interested stockholder, the
    interested stockholder owned at least 85% of the voting stock of
    the corporation outstanding at the time the transaction
    commenced (excluding, for purposes of determining the number of
    shares outstanding, stock held by directors who are also
    officers and by employee stock plans that do not allow plan
    participants to determine confidentially whether to tender
    shares);&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;following the transaction in which such person became
    an interested stockholder, the business combination is
    (a)&#160;approved by the board of directors of the corporation
    and (b)&#160;authorized at a meeting of stockholders by the
    affirmative vote of the holders of at least
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the outstanding voting stock of the corporation which is not
    owned by the interested stockholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company expressly elected in its certificate of
    incorporation not to be governed by Section&#160;203 of the DGCL
    relating to business combinations with interested stockholders.
    The restrictions set forth in Section&#160;203 of the DGCL are
    therefore not applicable to the Offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Appraisal Rights.</I>&#160;&#160;Holders of Shares will not
    have appraisal rights in connection with the Offer. However, if
    Purchaser purchases Shares in connection with the Offer, and a
    subsequent merger (including a short-form merger) involving the
    Company is consummated, holders of Shares immediately prior to
    the effective time of such merger may have the right pursuant to
    the provisions of Section&#160;262 of the DGCL to demand
    appraisal of their Shares. If appraisal rights are applicable,
    dissenting stockholders who comply with the applicable statutory
    procedures will be entitled, under Section&#160;262 of the DGCL,
    to receive a judicial determination of the fair value of their
    Shares (excluding any element of value arising from the
    accomplishment or expectation of such merger) and to receive
    payment of such fair value in cash, together with a fair rate of
    interest, if any. Any such judicial determination of the fair
    value of the Shares could be based upon factors other than, or
    in addition to, the price per Share ultimately paid in the Offer
    or any subsequent merger or the market value of the Shares. The
    value so determined could be more or less than the price per
    Share ultimately paid in the Offer or any subsequent merger.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Appraisal rights cannot be exercised at this time. If appraisal
    rights become available at a future time, the Company will
    provide additional information to the holders of Shares
    concerning their appraisal rights and the procedures to be
    followed in order to perfect their appraisal rights before any
    action has to be taken in connection with such rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing summary of the rights of stockholders to seek
    appraisal rights under Delaware law does not purport to be a
    complete statement of the procedures to be followed by
    stockholders desiring to exercise any appraisal rights available
    thereunder and is qualified in its entirety by reference to
    Section&#160;262 of the DGCL. The perfection of appraisal rights
    requires strict adherence to the applicable provisions of the
    DGCL.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Forward-Looking
    Statements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    contains statements that are forward looking. These
    forward-looking statements include, but are not limited to,
    (i)&#160;statements concerning future financial condition and
    operations, including future cash flows, revenues, gross
    margins, earnings and variations in quarterly results,
    (ii)&#160;statements relating to anticipated completion dates
    for new products and (iii)&#160;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
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended June&#160;30, 2009, filed with the SEC
    on September&#160;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.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;9.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <A name='109'></A><B><I><FONT style="font-family: 'Times New Roman', Times">Exhibits</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="12%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="87%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>EXHIBIT NO.</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>DESCRIPTION</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (a)(1)*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Press Release issued by the Company on March 15, 2010.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (a)(2)*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter, dated March 15, 2010, to Company&#146;s stockholders.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (a)(3)*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of B. Riley &#038; Co., LLC, dated as of March 12, 2010
    (attached as Annex A to the Schedule).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(1)*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Excerpts from the Company&#146;s Definitive Proxy Statement on
    Schedule 14A relating to the 2009 Annual Meeting of Stockholders
    as filed with the SEC on October 27, 2009.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Craftmade International, Inc. 2006 Long-Term Incentive Plan,
    previously filed as Exhibit 10.1 to the Company&#146;s Form 8-K
    on December 4, 2006, and incorporated by reference herein.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Incentive Stock Option Agreement, previously filed as
    Exhibit 10.2 to the Company&#146;s Form 8-K on December 4, 2006,
    and incorporated by reference herein.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Nonqualified Stock Option Agreement, previously filed as
    Exhibit 10.3 to the Company&#146;s Form 8-K on December 4, 2006,
    and incorporated by reference herein.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(5)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Stock Appreciation Rights Agreement, previously filed as
    Exhibit 10.4 to the Company&#146;s Form 8-K on December 4, 2006,
    and incorporated by reference herein.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(6)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Restricted Stock Award Agreement, previously filed as
    Exhibit 10.5 to the Company&#146;s Form 8-K on December 4, 2006,
    and incorporated by reference herein.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(7)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of Incorporation, filed as Exhibit 3(a)(2) to the
    Company&#146;s Post-Effective Amendment No. 1 to Form S-8 (File
    No. 33-33594-FW), and incorporated by reference herein.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(8)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of Amendment of Certificate of Incorporation, dated
    January&#160;15, 1988, and filed as Exhibit 4.2 to the
    Company&#146;s Form S-8 (File No. 333-44337), and incorporated
    by reference herein.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(9)*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Second Amended and Restated By-laws of the Company.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(10)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Director&#146;s Indemnification Agreement, previously
    filed as Exhibit 10.1 to the Company&#146;s Form 8-K on January
    27, 2010, and incorporated by reference herein.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(11)*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Amended and Restated Change in Control Agreement,
    entered into by and between the Company and each of J. Marcus
    Scrudder, C. Brett Burford, Brad Dale Heimann, Juan Carlos
    Loredo, Todd A. Teiber, and Ricardo DeCastro.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e)(12)*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Change in Control Agreement, entered into by and between
    the Company and each of Cliff Crimmings and J. Camp Roberts.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Filed herewith.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Annex&#160;A&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Opinion of B. Riley&#160;&#038; Co., LLC
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Annex&#160;B&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    List of Directors and Executive Officers
    </FONT>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>CRAFTMADE INTERNATIONAL, INC.</B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">C.
    Brett Burford</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C. Brett Burford
</DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Chief Financial Officer
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Dated:
    March&#160;15, 2010
    </FONT>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CONFIDENTIAL</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNEX&#160;A<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Opinion
    of B. Riley&#160;&#038; Co., LLC</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="d71441d7144100.gif" alt="">
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 73%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">4675
    MacArthur Court<BR>
    Suite&#160;1500<BR>
    Newport Beach, CA 92660<BR>
    Tel: 949.852.9911<BR>
    Fax: 949.852.0430<BR>
    <U>www.brileyco.com<BR>
    </U><I>Member FINRA and SIPC</I>
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    March&#160;12, 2010
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors<BR>
    Craftmade International, Inc.<BR>
    650 South Royale Lane<BR>
    Coppell, TX 75019<BR>
    Attention: J. Marcus Scrudder
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Members of the Board of Directors:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We understand that Craftmade International, Inc.
    (&#147;Craftmade&#148; or the &#147;Company&#148;) is in receipt
    of an unsolicited acquisition offer dated March&#160;2, 2010, to
    purchase all of the Company&#146;s common stock for a price of
    $5.25 per share in cash (the &#147;Offer&#148;) from Litex
    Industries, Limited and its wholly-owned subsidiary, Litex
    Acquisition&#160;#1, LLC (collectively referred to as
    &#147;Litex&#148;). Craftmade is considering alternatives in
    view of the Offer. In connection with the Offer and the analysis
    of alternatives, the Company retained B. Riley&#160;&#038; Co.,
    LLC (&#147;B. Riley&#148;) to provide financial advisory
    services.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You have requested our opinion (the &#147;Opinion&#148;) with
    respect to the adequacy, from a financial point of view, of the
    consideration to be received by the Company&#146;s stockholders
    in connection with the Offer (other than Litex and its
    affiliates). In connection with this Opinion, we have made such
    reviews, analyses and inquiries, as we have deemed necessary and
    appropriate under the circumstances. Among other things, we have:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Reviewed and analyzed certain historical and projected financial
    information as well as other financial and operating data for
    Craftmade;
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Reviewed Craftmade&#146;s audited financial statements for its
    fiscal years ended June&#160;30, 2005 through June&#160;30, 2009
    and for the six months ended December&#160;31, 2009;
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Reviewed certain internal financial statements and forecasts
    prepared by the Company&#146;s management and also reviewed
    other financial and operating data concerning the Company,
    including financial projections of the Company prepared by
    management of the Company (the &#147;Company Projections&#148;).
    With respect to the Company Projections, upon advice of the
    Company, we have assumed that such projections have been
    reasonably prepared on a basis reflecting the best currently
    available estimates and judgments of the management of the
    Company as to the future financial performance of the Company
    and that the Company will perform substantially in accordance
    with such projections;
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Interviewed Craftmade&#146;s management and discussed the
    Company&#146;s operations, financial conditions, future
    prospects and business plans;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Reviewed the financial terms, to the extent publicly available,
    of certain comparable merger and acquisition transactions of
    companies similar to Craftmade;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Conducted a series of financial analyses using valuation
    techniques typically employed to determine the adequacy of
    valuation in the context of a merger or acquisition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Reviewed historical prices, trading multiples and trading volume
    of Craftmade&#146;s common stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Reviewed certain publicly available financial data, stock market
    performance data and trading multiples of companies which we
    deemed generally comparable to Craftmade;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Performed such other analyses and inquires and considered such
    other factors in regards to Craftmade as deemed appropriate.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Opinion expressed herein is for the benefit of the
    Company&#146;s Board of Directors on their behalf as
    representatives of Craftmade stockholders. Our Opinion is
    rendered in connection with the Board&#146;s consideration of
    the Offer. It is further understood that this Opinion may not be
    used for any other purpose, nor may it be reproduced,
    disseminated, quoted or referred to at any time, in whole or in
    part, in any manner or for any purpose, without our prior
    written consent; provided, however, that this Opinion and any
    description thereof may be included in its entirety in any proxy
    statement,
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    or other similar communication required to be filed by the
    Company with the Securities and Exchange Commission and
    delivered to the Company&#146;s stockholders in connection with
    the Offer provided that any such inclusion or description shall
    be subject to our prior review.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have undertaken no independent analysis of any pending or
    threatened litigation, possible unasserted claims or other
    contingent liabilities to which either the Company is a party or
    may be subject and our Opinion makes no assumption concerning,
    and therefore does not consider, the possible assertion of
    claims, outcomes or damages arising out of any such matters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have relied upon and assumed, without independent
    verification, that the financial information, appraisals and
    reports provided to us have been reasonably prepared and reflect
    the best currently available estimates of the financial results
    and condition of the Company, and that there has been no
    material or adverse change in the assets, financial condition,
    business or prospects of the Company since the date of the most
    recent financial statements made available to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Without limiting the generality of the foregoing, for the
    purpose of this Opinion, we have assumed that the Company is not
    a party to any pending transactions, including external
    financing, recapitalizations, acquisitions, or merger
    discussions, other than the Offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not independently verified the accuracy and completeness
    of the information supplied to us with respect to the Company
    and do not assume any responsibility with respect to it. We have
    not made any physical inspection or independent appraisal of any
    of the properties or assets of the Company. Our Opinion is
    necessarily based on business, economic, market and other
    conditions as they currently exist and can be evaluated by us at
    the date of this letter. Our Opinion is subject to the
    assumptions, limitations, qualifications and other conditions
    contained herein and is necessarily based on economic, market
    and other conditions, and the information made available to us,
    as of the date hereof. We assume no responsibility for updating
    or revising our Opinion based on circumstances or events
    occurring after the date hereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For our services in rendering this Opinion, the Company has paid
    us a fee and has agreed to indemnify us against certain
    liabilities associated with the issuance of this Opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based upon and subject to the foregoing, it is our Opinion that,
    as of the date hereof, the consideration to be paid in
    connection with the Offer is inadequate from a financial point
    of view to the common stockholders of Craftmade (other than
    Litex and its affiliates).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Very truly yours,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    B. Riley&#160;&#038; Co., LLC
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="d71441d7144102.gif" alt="">
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-2
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNEX&#160;B<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LIST OF
    DIRECTORS AND EXECUTIVE OFFICERS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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<TR style="font-size: 1pt" valign="bottom">
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    <TD width="78%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
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<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J. Marcus Scrudder
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Executive Officer
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    C. Brett Burford
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Financial Officer
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brad Dale Heimann
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President and Chief Operating Officer
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Juan Carlos Loredo
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President of Marketing
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Todd A. Teiber
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Senior Vice President of Specialty Sales
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cliff Crimmings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President of Specialty Sales
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ricardo DeCastro
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President of Human Resources
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J. Camp Roberts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President of Corporate Accounts
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James R. Ridings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chairman of the Board
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    William E. Bucek
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    A. Paul Knuckley
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    R. Don Morris
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lary C. Snodgrass
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
</TABLE>

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    <BR>
    B-1
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<DOCUMENT>
<TYPE>EX-99.A.1
<SEQUENCE>2
<FILENAME>d71441exv99waw1.htm
<DESCRIPTION>EX-99.A.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99waw1</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit (a)(1)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="d71441d7144101.gif" alt="(CRAFTMADE INTERNATIONAL 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="25%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="25%">&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 OF DIRECTORS REJECTS<BR>
LITEX&#146;S HOSTILE TENDER OFFER</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Litex&#146;s Offer Significantly Undervalues Craftmade</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Board Strongly Urges Stockholders Not to Tender Shares into Litex&#146;s Offer</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>COPPELL, TEXAS, March&nbsp;15, 2010 </B>&#151; Craftmade International, Inc. (OTCQX: <U>CRFT</U>)
(&#147;Craftmade&#148; or the &#147;Company&#148;) today announced that its Board of Directors, after careful
consideration with its financial and legal advisors, voted unanimously to reject the unsolicited,
conditional tender offer from Litex Industries, Limited (&#147;Litex&#148;) to acquire all outstanding common
shares of Craftmade at a price of $5.25 per share in cash. The Board unanimously recommends that
Craftmade stockholders not tender their shares into Litex&#146;s offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The basis for the Board&#146;s recommendation with respect to the Litex tender offer is set forth in
Craftmade&#146;s Schedule&nbsp;14D-9 that will be filed today with the Securities and Exchange Commission
(&#147;SEC&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Although
we appreciate Litex&#146;s interest in Craftmade, it doesn&#146;t begin to recognize the intrinsic
value of our company,&#148; commented James R. Ridings, Craftmade&#146;s founder and Chairman of the Board.
&#147;Their interest, while understandable, is ill-timed for
Craftmade stockholders who stand to take
advantage of our company&#146;s upside as the industry it serves recovers. We believe that we are
extremely well-positioned to take advantage of market opportunities when industry conditions
improve.&#148; Mr.&nbsp;Ridings concluded, &#147;As a significant
stockholder of Craftmade, I do not believe that
it is in our best interests to sell at this time.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The reasons for the Craftmade&#146;s recommendation to reject Litex&#146;s offer, which the Company detailed
in its Schedule&nbsp;14D-9 filing, include:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Litex&#146;s Offer significantly undervalues Craftmade</B></U><B>. </B>Litex&#146;s Offer does not reflect the
underlying value of Craftmade&#146;s assets, operations and strategic plan, including its
industry-leading position and future growth prospects. Craftmade believes that the price offered
by Litex does not place value on its furniture business recently acquired from Woodard. Since its
founding, Craftmade has delivered superior results for its stockholders and, by virtue of its
industry position, strategic direction, management, and culture, Craftmade is poised to continue to
provide superior results for its stockholders. Craftmade&#146;s Board is confident that Craftmade will,
consistent with its history, deliver greater value to its stockholders by executing its strategic
plan than would be obtained under Litex&#146;s Offer.
</DIV>



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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>The timing of Litex&#146;s Offer is extremely opportunistic</B></U><B>. </B>Litex is trying to obtain the
future value of Craftmade at a bargain price. Craftmade has positioned itself to realize
significant benefits as the economy emerges from the recession, which makes the timing of Litex&#146;s
Offer the wrong time to sell. Despite the challenges faced by the housing industry the last few
years, the Company has continued to introduce innovative and distinctive products at an increasing
pace.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Craftmade has received an inadequacy opinion from its financial advisor</B></U><B>. </B>B. Riley &#038; Co.,
LLC rendered an opinion to Craftmade&#146;s Board that the consideration proposed to be paid to the
holders of Craftmade&#146;s shares (other than Litex or its affiliates) pursuant to Litex&#146;s Offer was
inadequate from a financial point of view to such holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>The Consummation of Litex&#146;s Offer and the proposed merger is illusory and highly uncertain</B></U><B>.</B>
The amount that Litex discloses it has to complete the Offer and pay off the Company&#146;s
indebtedness is $7&nbsp;million short based on the amount of debt Litex estimated the Company has. This
shortfall is actually closer to $19&nbsp;million because the Company&#146;s debt has increased since year-end to fund
ordinary seasonal increases in working capital. In addition, the numerous conditions of Litex&#146;s
Offer, many of which may be asserted by Litex in its sole discretion, create significant
uncertainty and risk as to whether Litex&#146;s Offer can be completed and the timing for completion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;During
this industry downturn, our strong management team has worked hard to create
a lean and efficient company,&#148; stated J. Marcus Scrudder, Chief Executive Officer of Craftmade.
&#147;Over the past two years, we&#146;ve introduced the most innovative and robust product lines in the
company&#146;s history. We&#146;ve done all of this with the best
interests of our stockholders in mind,
and I believe they deserve to reap the rewards and returns of these efforts.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board also took action under Craftmade&#146;s stockholder rights plan to defer the distribution of
rights that would otherwise occur ten business days after the announcement of Litex&#146;s offer, which
action is further described in Craftmade&#146;s Schedule&nbsp;14D-9.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s Schedule&nbsp;14D-9 filing will be available on the SEC&#146;s web site, <I>http://www.sec.gov</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">B. Riley &#038; Co., LLC is serving as financial advisor, and Haynes and Boone, LLP is serving as legal
counsel to Craftmade.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><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>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This communication does not constitute an offer to buy or solicitation of an offer to sell any
securities. In response to the tender offer commenced by Litex Acquisition #1, LLC, a wholly-owned
subsidiary of Litex, Craftmade will file 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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<TYPE>EX-99.A.2
<SEQUENCE>3
<FILENAME>d71441exv99waw2.htm
<DESCRIPTION>EX-99.A.2
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<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exhibit
    (a)(2)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="d71441d7144101.gif" alt="(CRAFTMADE INTERNATIONAL LOGO)"><B>
    </B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">YOUR
    BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU<BR>
    REJECT LITEX&#146;S OFFER AND NOT TENDER YOUR SHARES</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dear Fellow Stockholder:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;2, 2010, Litex Acquisition&#160;#1, a wholly-owned
    subsidiary of Litex Industries, Limited, commenced an
    unsolicited, conditional tender offer to acquire your Craftmade
    shares for $5.25 each.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After careful consideration, including a thorough review of
    Litex&#146;s Offer with our financial and legal advisors,
    Craftmade&#146;s Board of Directors unanimously determined that
    Litex&#146;s Offer is not in the best interests of
    Craftmade&#146;s stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Your Board Strongly Recommends that all Craftmade
    Stockholders Reject Litex&#146;s Offer and Not Tender their
    Shares.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In reaching its recommendation, your Board considered, among
    other things, that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>I)&#160;<U>Litex&#146;s Offer significantly undervalues
    Craftmade</U>.</B> Litex&#146;s Offer does not reflect the
    underlying value of Craftmade&#146;s assets, operations and
    strategic plan, including its industry-leading position and
    future growth prospects. Craftmade believes that the price
    offered by Litex does not place value on its furniture business
    recently acquired from Woodard. Since its founding, Craftmade
    has delivered superior results for its stockholders and, by
    virtue of its industry position, strategic direction,
    management, and culture, Craftmade is poised to continue to
    provide superior results for its stockholders. Craftmade&#146;s
    Board is confident that Craftmade will, consistent with its
    history, deliver greater value to its stockholders by executing
    its strategic plan than would be obtained under Litex&#146;s
    Offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>II)&#160;<U>The timing of Litex&#146;s Offer is extremely
    opportunistic</U>.</B> Litex is trying to obtain the future
    value of Craftmade at a bargain price. Craftmade has positioned
    itself to realize significant benefits as the economy emerges
    from the recession, which makes the timing of Litex&#146;s Offer
    the wrong time to sell. Despite the challenges faced by the
    housing industry the last few years, the Company has continued
    to introduce innovative and distinctive products that reflect
    emerging consumer trends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>III)&#160;<U>Craftmade has received an inadequacy opinion
    from its financial advisor</U>.</B> B. Riley&#160;&#038; Co.,
    LLC rendered an opinion to Craftmade&#146;s Board that the
    consideration proposed to be paid to the holders of
    Craftmade&#146;s shares (other than Litex or its affiliates)
    pursuant to Litex&#146;s Offer was inadequate from a financial
    point of view to such holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>IV)&#160;<U>The Consummation of Litex&#146;s Offer and the
    proposed merger is illusory and highly uncertain</U>.</B> The
    amount that Litex discloses it has to complete the Offer and pay
    off the Company&#146;s indebtedness is $7&#160;million short
    based on the amount of debt Litex estimated the Company has.
    This shortfall is actually closer to $19&#160;million because
    the Company&#146;s debt has increased since year-end to fund
    ordinary course seasonal increases in working capital. In
    addition, the numerous conditions of Litex&#146;s Offer, many of
    which may be asserted by Litex in its sole discretion, create
    significant uncertainty and risk as to whether Litex&#146;s
    Offer can be completed and the timing for completion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Your Board of Directors and management team will continue to
    act in the best interest of Craftmade and its stockholders.</B>
    Your Board of Directors and management team take their fiduciary
    responsibilities to you, our stockholders, extremely seriously.
    We are committed to creating value for all of our stockholders,
    and remain open to appropriate opportunities that will achieve
    that result. The enclosed
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    contains a detailed description of the reasons for your Board of
    Directors&#146; recommendation and the factors considered by the
    Board. We urge you to read the
    <FONT style="white-space: nowrap">Schedule&#160;14D-9</FONT>
    so you will be fully informed before you make your decision. If
    you have any questions or need assistance, please contact
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Craftmade&#146;s information agent, D.F. King&#160;&#038; Co.,
    at
    <FONT style="white-space: nowrap">1-800-967-5079</FONT>
    (toll free) or at 1-212-269-5550, or by email at
    <I>crft@dfking.com</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Thank you for your continued support.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;&#160;&#160;James
    R.
    Ridings</DIV><DIV style="font-size: 3pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>James
    R. Ridings<BR>
    Chairman of the Board of Directors<BR>
    Craftmade International, Inc.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="middle">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;&#160;&#160;J.
    Marcus
    Scrudder</DIV><DIV style="font-size: 3pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>J.
    Marcus Scrudder<BR>
    Chief Executive Officer<BR>
    Craftmade International, Inc.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.E.1
<SEQUENCE>4
<FILENAME>d71441exv99wew1.htm
<DESCRIPTION>EX-99.E.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wew1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit (e)(1)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Excerpts from Craftmade&#146;s 2009 Proxy Statement</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The table below sets forth, as of October&nbsp;16, 2009, the number of shares of Common Stock and
the percentage of outstanding shares owned of record by (i)&nbsp;each incumbent director and each
nominee for director of the Company; (ii)&nbsp;each named executive officer of the Company; (iii)&nbsp;all
directors and executive officers of the Company as a group; and (iv)&nbsp;each person who is known by us
to beneficially own more than 5% of our Common Stock. Except as otherwise noted, each named
individual has sole voting and investment power with respect to such shares. Unless otherwise
indicated, the address of each listed stockholder is c/o Craftmade International, Inc., 650 South
Royal Lane, Suite&nbsp;100, Coppell, Texas 75019.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Beneficial ownership is determined in accordance with the rules of the SEC. Beneficial ownership
information is based on the most recent Forms 3, 4 and 5 and Schedules 13D and 13G filings with the
SEC and reports made directly to us. In computing the number of shares of Common Stock beneficially
owned by a person and the beneficial ownership percentage of that person, shares of Common Stock
subject to stock options held by that person that are currently exercisable or exercisable within
60&nbsp;days of October&nbsp;16, 2009 are deemed outstanding, but are not deemed outstanding for computing
the percentage ownership of any other person.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Beneficially Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>James R. Ridings</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>580,566</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>10.2</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Chairman of the Board</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>J. Marcus Scrudder</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>24,750</B></TD>
    <TD nowrap><B>(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Chief Executive Officer</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Brad Dale Heimann</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>21,498</B></TD>
    <TD nowrap><B>(2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>President and Chief Operating Officer</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>A. Paul Knuckley</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>108,768</B></TD>
    <TD nowrap><B>(3)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>1.9</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Director</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Lary C. Snodgrass</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>311,445</B></TD>
    <TD nowrap><B>(4)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>5.5</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Director</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>William E. Bucek</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>9,058</B></TD>
    <TD nowrap><B>(5)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Director</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>R. Don Morris</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>14,171</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>*</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Director</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>All Directors and Executives Officers As a Group</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1,070,256</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>18.8</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Beneficially Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Forwoodco, LLC.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>700,000      </B></TD>
    <TD nowrap><B>(6)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>12.3</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>c/o Longview Management Group, LLC.<BR>
222 N. LaSalle Street, Suite&nbsp;1000<BR>
Chicago, Illinois 60601</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Fidelity Management &#038; Research Company</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>570,026      </B></TD>
    <TD nowrap><B>(7)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>10.0</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Fidelity Low Priced Stock Fund</B><BR>
<I>82 Devonshire Street <BR>
Boston, Massachusetts 02019</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>John P. Pecora</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>525,200      </B></TD>
    <TD nowrap><B>(8)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>9.2</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>130 Montadale Drive<BR>
Princeton, NJ 08540</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>Number of Common Shares Outstanding on October&nbsp;16, 2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5,704,500</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><B>100.0</B></TD>
    <TD nowrap><B>%</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Less than 1%.</TD>
</TR>

</TABLE>


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





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 7,500 shares that may be issued pursuant to stock options that are exercisable
within 60&nbsp;days of October&nbsp;16, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 100 shares owned by Mr.&nbsp;Heimann&#146;s spouse and 7,148 shares owned by a trust on behalf
of Mr.&nbsp;Heimann&#146;s spouse. Mr.&nbsp;Heimann disclaims beneficial ownership of such shares. The
number also includes 9,500 shares that may be issued pursuant to stock options that are
exercisable within 60&nbsp;days of October&nbsp;16, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 250 shares owned by Mr.&nbsp;Knuckley&#146;s spouse and 7,200 shares owned by a trust on
behalf of Mr.&nbsp;Knuckley&#146;s children, of which Mr.&nbsp;Knuckley is co-trustee. Mr.&nbsp;Knuckley
disclaims beneficial ownership of such shares. Also includes 7,500 shares that may be issued
pursuant to stock options that are exercisable within 60&nbsp;days of October&nbsp;16, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 203,878 shares held in the Lary Snodgrass Family Limited Partnership. Mr.&nbsp;Snodgrass
disclaims beneficial ownership of such shares. Includes 100,000 shares held in Snodgrass
Children&#146;s Ltd., a family limited partnership. Mr.&nbsp;Snodgrass disclaims beneficial ownership
of such shares. Also includes 7,500 shares that may be issued pursuant to stock options that
are exercisable within 60&nbsp;days of October&nbsp;16, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes 400 shares held in the Jerome Joseph Bucek Family Trust, of which Mr.&nbsp;Bucek is
co-trustee. Mr.&nbsp;Bucek disclaims beneficial ownership of such shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD>Forwoodco, LLC has shared voting power and shared dispositive power over 700,000 shares,
including 200,000 shares that may be issued pursuant to common stock warrants that are
exercisable within 60&nbsp;days of October&nbsp;16, 2009. Forwoodco, LLC acquired these shares on
January&nbsp;2, 2008 in partial consideration for the sale of substantially all of the assets of
Woodard, LLC to the Company.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD>Fidelity Management &#038; Research Company (&#147;Fidelity&#148;), a wholly-owned subsidiary of FMR LLC and
an investment adviser registered under Section&nbsp;203 of the Investment Advisers Act of 1940, is
the beneficial owner of 570,026 shares as a result of acting as investment advisor to Fidelity
Low Priced Stock Fund (the &#147;Fund&#148;). Edward C. Johnson 3d and FMR LLC, through its control of
Fidelity, each has sole power to dispose of the 570,026 shares owned by the Fund.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Members of the family of Edward C. Johnson 3d, Chairman of FMR LLC, are the predominant
owners, directly or through trusts, of Series&nbsp;B voting common shares of FMR LLC,
representing 49% of the voting power of FMR LLC. The Johnson family group and all other
Series&nbsp;B shareholders have entered into a shareholders&#146; voting agreement under which all
Series&nbsp;B voting common shares will be voted in accordance with the majority vote of Series&nbsp;B
voting common shares. Accordingly, through their ownership of voting common shares and the
execution of the shareholders&#146; voting agreement, members of the Johnson family may be
deemed, under the Investment Company Act of 1940, to form a controlling group with respect
to FMR LLC.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Neither FMR LLC nor Edward C. Johnson 3d, Chairman of FMR LLC, has the sole power to vote or
direct the voting of the shares owned directly by Fidelity or the Fund, which power resides
with the Funds&#146; Boards of Trustees. Fidelity carries out the voting of the shares under
written guidelines established by the Funds&#146; Boards of Trustees. The information included
in this table and this note is derived from a report on Schedule&nbsp;13F as filed by FMR LLC
with the SEC on June&nbsp;30, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD>John P. Pecora beneficially owns 525,200 shares. The information included in this table and
this note is derived from a report on Schedule&nbsp;13D as filed by Mr.&nbsp;Pecora with the SEC on
October&nbsp;31, 2008.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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" style="font-size: 10pt; margin-top: 18pt"><B>EXECUTIVE COMPENSATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth compensation awarded by the Company to its principal executive
officer, and two other most highly-compensated executive officers (&#147;Named Executive Officers&#148;)
during the fiscal years ended June&nbsp;30, 2008, and June&nbsp;30, 2009.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Summary Compensation Table</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="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>All Other</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fiscal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Bonus</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awards</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">J. Marcus Scrudder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">325,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,919</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">346,792</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Chief Executive Officer </I><SUP style="font-size: 85%; vertical-align: text-top"><I>(3)</I></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">253,526</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">3,592</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">295,991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Brad Dale Heinman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">275,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">295,791</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>President and</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">278,878</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">3,856</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">321,607</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Chief Operating Officer</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">James R. Ridings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">360,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">360,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Chairman of the Board </I><SUP style="font-size: 85%; vertical-align: text-top"><I>(4)</I></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">366,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">366,985</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Represents amounts expensed by the Company during the year for grants
made to executive officers in accordance with SFAS 123(R).</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes matching contributions under the Company&#146;s 401(k) savings plan.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Scrudder previously served as Chief Financial Officer and was
appointed Chief Executive Officer effective July&nbsp;1, 2008.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Ridings previously served as Chief Executive Officer until his
retirement, effective June&nbsp;30, 2008. Total 2009 salary includes
$240,000 receievd by Mr.&nbsp;Ridings for his role as Senior Executive
Advisor, which he performed from July&nbsp;1, 2008 until June&nbsp;30, 2009, as
well as $120,000 for his role as Chairman of the Board. Mr.&nbsp;Ridings&#146;
employment agreement as Senior Executive Advisor terminated on June&nbsp;30,
2009.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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: 12pt"><B>Outstanding Equity Awards at Year-End</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table shows outstanding equity awards for each of the Named Executive Officers at
June&nbsp;30, 2009:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Outstanding Equity Awards at Year-End</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="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>Option Awards</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unexercised</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unexercised</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Option</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Expiration</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Unexercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">J. Marcus Scrudder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2/4/2017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Chief Executive Officer </I><SUP style="font-size: 85%; vertical-align: text-top"><I>(1)</I></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2/4/1018</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Brad Dale Heinman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/28/2009</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>President and</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2/4/2017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><I>Chief Operating Officer</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2/4/2018</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">James R. Ridings<BR>
<I>Chairman of the Board </I><SUP style="font-size: 85%; vertical-align: text-top"><I>(2)</I></SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Scrudder previously served as Chief Financial Officer and was appointed Chief Executive Officer effective July&nbsp;1, 2008.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Ridings previously also served as Chief Executive Officer until his retirement, effective June&nbsp;30, 2008.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Heimann&#146;s 2,000 options expiring October&nbsp;28, 2009, were granted pursuant to the
Craftmade International, Inc. 1999 Stock Option Plan. The other options reported on the table
above were granted pursuant to the Craftmade International, Inc. 2006 Long-Term Incentive Plan (the
&#147;2006 Plan&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Vesting of Options Upon Termination or Change-in-Control</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the 2006 Plan, 100% of any unvested options shall vest and become
exercisable immediately prior to the effective date of a Change in Control. A &#147;Change in Control&#148;
shall be deemed to occur if: (a)&nbsp;there shall be consummated any consolidation or merger of the
Company into or with another corporation or other legal person, and as a result of such
consolidation or merger less than a majority of the combined voting power of the then-outstanding
securities of such corporation or person immediately after such transactions are held in the
aggregate by holders of voting stock of the Company immediately prior to such transactions; (b)
there shall be consummated any sale, lease, exchange or other transfer, whether in one transaction
or any series of related transactions, of all or significant portions of the assets of the Company
to any other corporation or other legal person, if less than a majority of the combined voting
power of the then-outstanding securities of such corporation or person immediately after such sale,
lease, exchange, or transfer is held in the aggregate by the holders of voting stock of the Company
immediately prior to such sale, lease, exchange, or transfer; (c)&nbsp;the stockholders of the Company
approve any plan for the liquidation or dissolution of the Company; (d)&nbsp;any person (as such term is
used in Sections 13(d) and 14(d)(2) of the Exchange Act), becomes, either directly or indirectly,
the beneficial owner (within the meaning of Rule&nbsp;13d-3 under the Exchange Act) of securities
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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">
representing more than 50% of the combined voting power of the then-outstanding securities entitled
to vote generally in the election of directors of the Company; or (e)&nbsp;at any time during a fiscal
year a majority of the Board shall be replaced by persons who were not recommended for those
positions by at least two-thirds of the directors of the Company who were directors of the Company
at the beginning of such fiscal year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June&nbsp;30, 2009, if a Change in Control were to occur, Mr.&nbsp;Heimann&#146;s and Mr.&nbsp;Scrudder&#146;s
(i)&nbsp;options to purchase collectively 16,000 shares of our Common Stock at an exercise price of
$17.62 per share and (ii)&nbsp;options to purchase collectively 20,000 shares of our Common Stock at an
exercise price of $8.01 per share would vest and become exercisable. The closing price of our
Common Stock as reported on the NASDAQ Global Market as of June&nbsp;30, 2009, was $2.14.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Equity Compensation Plan Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;27, 2000, the Company&#146;s stockholders approved the 1999 Stock Option Plan (&#147;1999
Plan&#148;) and the 2000 Non-Employee Director Plan (&#147;Non-Employee Plan&#148;), previously adopted by the
Board of Directors on October&nbsp;29, 1999, and February&nbsp;16, 2000, respectively. At June&nbsp;30, 2009,
there were 36,600 fully vested options which were exercisable under these plans. The 1999 Plan,
the Non-Employee Plan and the 146,500 shares that were reserved for future grants under these plans
were terminated upon adoption of the 2006 Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;28, 2006, the Company&#146;s stockholders approved the 2006 Plan. The 2006 Plan allows
a maximum of 400,000 shares of the Company&#146;s Common Stock to be issued. Options granted will be
designated as either Incentive Stock Options or Non-Qualified Stock Options. The options vest at a
rate of 25% on the first anniversary of the grant date and 25% on each successive anniversary.
Options may be exercised at any time once they become vested, but not more than 10&nbsp;years from the
date of grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth as of June&nbsp;30, 2009, (i)&nbsp;the number of securities to be issued
upon exercise of outstanding options, (ii)&nbsp;the weighted average of exercise price of such
outstanding options and (iii)&nbsp;the number of securities remaining available for future issuance
under equity compensation plans that have been approved by security holders of the Company:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Equity Compensation Plan Information</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="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Securities</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Remaining</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Securities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Available</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">to be Issued</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Average</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">for Future</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Upon</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Exercise</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Issuance</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Exercise of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Price of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Under Equity</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Compensation</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Plan Category</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Options (#)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Options ($)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Plans (#)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1999 Stock Option Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2000 Non-Employee Director Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006 Long-Term Incentive Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">239,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">239,500</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /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: 12pt"><B>Fiscal Year 2009 Compensation Events</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no adjustments to executive compensation during the fiscal year ended June&nbsp;30,
2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective July&nbsp;1, 2008, Mr.&nbsp;Ridings and the Company entered into a one-year employment
agreement to allow the Company to benefit from Mr.&nbsp;Ridings&#146; knowledge and goodwill. Pursuant to
the agreement, Mr.&nbsp;Ridings was paid an annual salary of $240,000 for his service as Senior
Executive Advisor to the Board of Directors and the Chief Executive Officer. This agreement ended
on June&nbsp;30, 2009. Effective July&nbsp;1, 2008, the Board of Directors agreed to pay Mr.&nbsp;Ridings $10,000
per month for his service as Chairman of the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Director Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-employee directors who are not otherwise salaried employees of the Company received the
following compensation during the fiscal year ended June&nbsp;30, 2009:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A fee of $5,000 for each board meeting attended in person.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A fee of $2,000 for committee meetings attended in person on days when no board
meeting is held.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A fee of $500 for each board or committee meeting attended via telephone.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An additional fee of $2,500 per meeting for the chairperson of the Audit Committee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An additional fee of $1,000 for the chairperson of the Compensation Committee and
Nominating and Corporate Governance Committee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company is also authorized to reimburse directors for travel and other
reasonable expenses in connection with attendance at meetings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes compensation paid to non-employee directors during fiscal year
2009:
</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="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Fees Earned</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>or Paid in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Cash</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lary C. Snodgrass</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">35,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">35,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William E. Bucek</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">47,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">47,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Don Morris</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">44,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A. Paul Knuckley</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">36,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">36,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">L. Dale Griggs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">7,000</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes fees earned or paid in cash. Excludes business-related travel reimbursement in
connection with attendance at meetings.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes compensation paid to Mr.&nbsp;Bucek for consulting services that he performed for the
Company in connection with facilitating the search for a new Chief Executive Officer,
developing a strategic marketing plan for the Company and overseeing the integration of
the acquisition of certain assets of Woodard, LLC. Effective September&nbsp;30, 2008, the
Board of Directors determined that Mr.&nbsp;Bucek had fulfilled his responsibilities under the
consulting agreement, and the agreement was terminated. Mr.&nbsp;Bucek performed such
consulting services in his capacity as a director of the Company.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Griggs retired from the Board of Directors at the 2008 annual meeting of shareholders.</TD>
</TR>

</TABLE>




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<DOCUMENT>
<TYPE>EX-99.E.9
<SEQUENCE>5
<FILENAME>d71441exv99wew9.htm
<DESCRIPTION>EX-99.E.9
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99wew9</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit (e)(9)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SECOND AMENDED AND RESTATED BY-LAWS</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>OF</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CRAFTMADE INTERNATIONAL, INC.,</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>A Delaware corporation</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>ARTICLE I</U><BR>
<U>STOCKHOLDERS</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>CERTIFICATES REPRESENTING STOCK</U>. Certificates representing stock in the
corporation shall be signed by, or in the name of, the corporation by the Chairman or Vice Chairman
of the Board of Directors, if any, or by the Chief Executive Officer, the President or a Vice
President and by the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary
of the corporation. Any or all of the signatures on any such certificate may be a facsimile. In
case any officer, transfer agent, or registrar who has signed or whose facsimile signature has been
placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar before
such certificate is issued, it may be issued by the corporation with the same effect as if he were
such officer, transfer agent, or registrar at the date of issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever the corporation shall be authorized to issue more than one class of stock or more
than one series of any class of stock, and whenever the corporation shall issue any shares of its
stock as partly paid stock, the certificates representing shares of any such class or series or of
any such partly paid stock shall set forth thereon the statements prescribed by the General
Corporation Law of the State of Delaware (the &#147;General Corporation Law&#148;). Any restrictions on the
transfer or registration of transfer of any shares of stock of any class or series shall be noted
conspicuously on the certificate representing such shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The corporation may issue a new certificate of stock or uncertificated shares in place of any
certificate theretofore issued by it, alleged to have been lost, stolen, or destroyed, and the
Board of Directors may require the owner of the lost, stolen, or destroyed certificate, or his
legal representative, to give the corporation a bond sufficient to indemnify the corporation
against any claim that may be made against it on account of the alleged loss, theft, or destruction
of any such certificate or the issuance of any such new certificate or uncertificated shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>UNCERTIFICATED SHARES</U>. Subject to any conditions imposed by the General
Corporation Law, the Board of Directors of the corporation may provide by resolution or resolutions
that some or all of any or all classes or series of the stock of the corporation shall be
uncertificated shares. Within a reasonable time after the issuance or transfer of any
uncertificated shares, the corporation shall send to the registered owner thereof any written
notice prescribed by the General Corporation Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>FRACTIONAL SHARE INTERESTS</U>. The corporation may, but shall not be required to,
issue fractions of a share. If the corporation does not issue fractions of a share, it shall (a)
arrange for the disposition of fractional interests by those entitled thereto, (b)&nbsp;pay in cash the
fair value of fractions of a share as of the time when those entitled to receive such
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">fractions are determined, or (c)&nbsp;issue scrip or warrants in registered form (either
represented by a certificate or uncertificated) or bearer form (represented by a certificate) which
shall entitle the holder to receive a full share upon the surrender of such scrip or warrants
aggregating a full share. A certificate for a fractional share or an uncertificated fractional
share shall, but scrip or warrants shall not unless otherwise provided therein, entitle the holder
to exercise voting rights, to receive dividends thereon, and to participate in any of the assets of
the corporation in the event of liquidation. The Board of Directors may cause scrip or warrants to
be issued subject to the conditions that they shall become void if not exchanged for certificates
representing the full shares or uncertificated full shares before a specified date, or subject to
the conditions that the shares for which scrip or warrants are exchangeable may be sold by the
corporation and the proceeds thereof distributed to the holders of scrip or warrants, or subject to
any other conditions which the Board of Directors may impose.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>STOCK TRANSFERS</U>. Upon compliance with provisions restricting the transfer or
registration of transfer of shares of stock, if any, transfers or registration of transfers of
shares of stock of the corporation shall be made only on the stock ledger of the corporation by the
registered holder thereof, or by his attorney thereunto authorized by power of attorney duly
executed and filed with the Secretary of the corporation or with a transfer agent or a registrar,
if any, and, in the case of shares represented by certificates, on surrender of the certificate or
certificates for such shares of stock properly endorsed and the payment of all taxes due thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>RECORD DATE FOR STOCKHOLDERS</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In order that the corporation may determine the stockholders entitled to notice of or to
vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a
record date, which record date shall not precede the date upon which the resolution fixing the
record date is adopted by the Board of Directors, and which record date shall not be more than 60
nor less than 10&nbsp;days before the date of such meeting. If no record date is fixed by the Board of
Directors, the record date for determining stockholders entitled to notice of or to vote at a
meeting of stockholders shall be at the close of business on the day next preceding the day on
which notice is given, or, if notice is waived, at the close of business on the day next preceding
the day on which the meeting is held. A determination of stockholders of record entitled to notice
of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided,
however, that the Board of Directors may fix a new record date for the adjourned meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. In order that the corporation may determine the stockholders entitled to receive payment of
any dividend or other distribution or allotment of any rights or the stockholders entitled to
exercise any rights in respect of any change, conversion, or exchange of stock, or for the purpose
of any other lawful action, the Board of Directors may fix a record date, which record date shall
not precede the date upon which the resolution fixing the record date is adopted, and which record
date shall be not more than 60&nbsp;days prior to such action. If no record date is fixed, the record
date for determining stockholders for any such purpose shall be at the close of business on the day
on which the Board of Directors adopts the resolution relating thereto.
</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In order that the Corporation may determine the stockholders entitled to consent to
corporate action in writing without a meeting, the Board of Directors may fix a record date, which
record date shall not precede the date upon which the resolution fixing the record date is adopted
by the Board of Directors, and which date shall not be more than 10&nbsp;days after the date upon which
the resolution fixing the record date is adopted by the Board of Directors. Any stockholder of
record seeking to have the stockholders authorize or take corporate action by written consent
shall, by written notice to the Secretary, request that the Board of Directors fix a record date.
In order to be effective, such written notice must contain the information set forth in Article&nbsp;I,
Section&nbsp;7E hereof as if such stockholder were seeking to have the subject matter of the consent
considered at an annual meeting of stockholders. Within 10&nbsp;days after receipt of a request in
proper form and otherwise in compliance with this Section&nbsp;5 from any stockholder, the Board of
Directors may adopt a resolution fixing the record date (unless a record date has previously been
fixed by the Board of Directors pursuant to the first sentence of this Section&nbsp;5.C). If no record
date has been fixed by the Board of Directors pursuant to the first sentence of this Section&nbsp;5.C or
otherwise within 10&nbsp;days after the date on which such written notice is received, the record date
for determining stockholders entitled to corporate action in writing without a meeting, when no
prior action by the Board of Directors is required by applicable law, shall be the first date after
the expiration of such 10&nbsp;day time period on which a signed written consent setting forth the
action taken or proposed to be taken is delivered to the Corporation by delivery to its registered
office in Delaware, its principal place of business, or to any officer or agent of the Corporation
having custody of the book in which proceedings of meetings of stockholders are recorded. If no
record date has been fixed by the Board of Directors pursuant to the first sentence of this Section
5.C, the record date for determining stockholders entitled to consent to corporate action in
writing without a meeting if prior action by the Board of Directors is required by applicable law
shall be at the close of business on the date on which the Board of Directors adopts the resolution
taking such prior action.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. In connection with an action or actions proposed to be taken by written consent in
accordance with this Section&nbsp;5, the stockholder or stockholders seeking such action or actions
shall further update and supplement the information previously provided to the Corporation in
connection therewith, if necessary, so that the information provided or required to be provided
pursuant to this Section&nbsp;5 shall be true and correct as of the record date for determining the
stockholders eligible to take such action and as of the date that is five (5)&nbsp;business days prior
to the date the consent solicitation is commenced, and such update and supplement shall be
delivered to, or mailed and received by, the Secretary at the principal executive offices of the
Corporation not later than five (5)&nbsp;business days after the record date for determining the
stockholders eligible to take such action (in the case of the update and supplement required to be
made as of the record date), and not later than three (3)&nbsp;business days prior to the date that the
consent solicitation is commenced (in the case of the update and supplement required to be made as
of five (5)&nbsp;business days prior to the commencement of the consent solicitation).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. In the event of the delivery, in the manner provided by this Section&nbsp;5 and applicable law,
to the Corporation of written consent or consents to take corporate action and/or any related
revocation or revocations, the Corporation shall engage independent inspectors of elections for the
purpose of performing promptly a ministerial review of the validity of the consents and
revocations. For the purpose of permitting the inspectors to perform such review,
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">no action by written consent and without a meeting shall be effective until such inspectors
have completed their review, determined that the requisite number of valid and unrevoked consents
delivered to the Corporation in accordance with this Section&nbsp;5 and applicable law have been
obtained to authorize or take the action specified in the consents, and certified such
determination for entry in the records of the Corporation kept for the purpose of recording the
proceedings of meetings of stockholders. Nothing contained in this Section&nbsp;5 shall in any way be
construed to suggest or imply that the Board of Directors or any stockholder shall not be entitled
to contest the validity of any consent or revocation thereof, whether before or after such
certification by the independent inspectors, or to take any other action (including, without
limitation, the commencement, prosecution or defense of any litigation with respect thereto, and
the seeking of injunctive relief in such litigation).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Notwithstanding anything in these By-Laws to the contrary, no action may be taken by the
stockholders by written consent except in accordance with this Section&nbsp;5. If the Board of
Directors shall determine that any request to fix a record date or to take stockholder action by
written consent was not properly made in accordance with this Section&nbsp;5, or the stockholder or
stockholders seeking to take such action do not otherwise comply with this Section&nbsp;5, then the
Board of Directors shall not be required to fix a record date and any such purported action by
written consent shall be null and void to the fullest extent permitted by applicable law. In
addition to the requirements of this Section&nbsp;5 with respect to stockholders seeking to take an
action by written consent, each stockholder requesting that the Board of Directors set a record
date under this Section&nbsp;5 shall comply with all requirements of applicable law, including all
requirements of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), with respect
to such action.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>MEANING OF CERTAIN TERMS</U>. As used herein in respect of the right to notice of a
meeting of stockholders or a waiver thereof or to participate or vote thereat or to consent or
dissent in writing in lieu of a meeting, as the case may be, the term &#147;share&#148; or &#147;shares&#148; or &#147;share
of stock&#148; or &#147;shares of stock&#148; or &#147;stockholder&#148; or &#147;stockholders&#148; refers to an outstanding share or
shares of stock and to a holder or holders of record of outstanding shares of stock when the
corporation is authorized to issue only one class of shares of stock, and said reference is also
intended to include any outstanding share or shares of stock and any holder or holders of record of
outstanding shares of stock of any class upon which or upon whom the Certificate of Incorporation
confers such rights where there are two or more classes or series of shares of stock or upon which
or upon whom the General Corporation Law confers such rights notwithstanding that the Certificate
of Incorporation may provide for more than one class or series of shares of stock, one or more of
which are limited or denied such rights thereunder; provided, however, that no such right shall
vest in the event of an increase or a decrease in the authorized number of shares of stock of any
class or series which is otherwise denied voting rights under the provisions of the Certificate of
Incorporation, except as any provision of law may otherwise require.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>STOCKHOLDER MEETINGS</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <I>Time</I>. The annual meeting shall be held on the date and at the time fixed, from time to
time, by the Board of Directors, provided, that the first annual meeting shall be held on a date
within 13&nbsp;months after the organization of the corporation, and each successive annual
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">meeting shall be held on a date within 13&nbsp;months after the date of the preceding annual
meeting. A special meeting shall be held on the date and at the time fixed by the Board of
Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <I>Place</I>. Annual meetings and special meetings shall be held at such place, within or without
the State of Delaware, as the Board of Directors may, from time to time, fix. Whenever the
directors shall fail to fix such place, the meeting shall be held at the registered office of the
corporation in the State of Delaware.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <I>Call</I>. Annual meetings and special meetings may be called by a majority of the Board of
Directors or by any officer instructed by a majority of the Board of Directors to call the meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <I>Notice or Waiver of Notice</I>. Written notice of all meetings shall be given, stating the
place, date, and hour of the meeting and stating the place within the city or other municipality or
community at which the list of stockholders of the corporation may be examined. The notice of an
annual meeting shall state that the meeting is called for the election of directors and for the
transaction of other business which may properly come before the meeting, and shall (if any other
action which could be taken at a special meeting is to be taken at such annual meeting) state the
purpose or purposes. The notice of a special meeting shall in all instances state the purpose or
purposes for which the meeting is called. The notice of any meeting shall also include, or be
accompanied by, any additional statements, information, or documents prescribed by the General
Corporation Law. Except as otherwise provided by the General Corporation Law, a copy of the notice
of any meeting shall be given, personally, by mail or by electronic transmission, not less than 10
days nor more than 60&nbsp;days before the date of the meeting, unless the lapse of the prescribed
period of time shall have been waived, and directed to each stockholder at his record address or at
such other address which he may have furnished by request in writing to the Secretary of the
corporation. Notice by mail shall be deemed to be given when deposited, with postage thereon
prepaid, in the United States mail. Notice by electronic transmission shall be deemed given in the
manner provided in Section&nbsp;232 of the General Corporation Law. If a meeting is adjourned to
another time, not more than 30&nbsp;days hence, and/or to another place, and if an announcement of the
adjourned time and/or place is made at the meeting, it shall not be necessary to give notice of the
adjourned meeting unless the directors, after adjournment, fix a new record date for the adjourned
meeting. Notice need not be given to any stockholder who submits a written waiver of notice signed
by him before or after the time stated therein. Attendance of a stockholder at a meeting of
stockholders shall constitute a waiver of notice of such meeting, except when the stockholder
attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the
transaction of any business because the meeting is not lawfully called or convened. Neither the
business to the transacted at, nor the purpose of, any regular or special meeting of the
stockholders need be specified in any written waiver of notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <I>Annual Meeting of Stockholders</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;Nominations of persons for election to the Board of Directors and the proposal of other
business to be considered by the stockholders may be made at an annual meeting of stockholders (a)
as specified by the corporation&#146;s notice of meeting by or at the direction of the Board of
Directors, (b)&nbsp;by or at the direction of the Board of Directors or (c)&nbsp;by
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">any stockholder of the corporation who (i)&nbsp;was a stockholder of record at the time of giving
of notice provided for in this Bylaw and at the time of the annual meeting, (ii)&nbsp;is entitled to
vote at the meeting and (iii)&nbsp;complies with the notice procedures set forth in this Bylaw as to
such business or nomination; clause (c)&nbsp;shall be the exclusive means for a stockholder to make
nominations or submit other business (other than matters properly brought under Rule&nbsp;14a-8 under
the Exchange Act and included in the corporation&#146;s notice of meeting) before an annual meeting of
stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;Without qualification, for any nominations or any other business to be properly brought
before an annual meeting by a stockholder pursuant to Section&nbsp;7.E(1)(c) of this Bylaw, the
stockholder must have given timely notice thereof in writing to the Secretary and such other
business must otherwise be a proper matter for stockholder action. To be timely, a stockholder&#146;s
notice shall be delivered to the Secretary at the principal executive offices of the corporation
not earlier than the close of business on the 120th day and not later than the close of business on
the 90th day prior to the first anniversary of the preceding year&#146;s annual meeting; provided,
however, that in the event that the date of the annual meeting is more than 30&nbsp;days before or more
than 60&nbsp;days after such anniversary date, notice by the stockholder to be timely must be so
delivered not earlier than the close of business on the 120th day prior to the date of such annual
meeting and not later than the close of business on the later of the 90th day prior to the date of
such annual meeting or, if the first public announcement of the date of such annual meeting is less
than 100&nbsp;days prior to the date of such annual meeting, the 10th day following the day on which
public announcement of the date of such meeting is first made by the corporation. In no event
shall any adjournment or postponement of a meeting or the announcement thereof commence a new time
period for the giving of a stockholder&#146;s notice as described above. To be in proper form, a
stockholder&#146;s notice (whether given pursuant to this Section&nbsp;7.E(2) or Section&nbsp;7.F) to the
Secretary must: (a)&nbsp;set forth, as to the stockholder giving the notice and the beneficial owner,
if any, on whose behalf the nomination or proposal is made, (i)&nbsp;the name and address of such
stockholder, as they appear on the corporation&#146;s books, and of such beneficial owner, if any, (ii)
(A)&nbsp;the class or series and number of shares of the corporation which are, directly or indirectly,
owned beneficially and of record by such stockholder and such beneficial owner, if any, (B)&nbsp;any
option, warrant, convertible security, stock appreciation right, or similar right with an exercise
or conversion privilege or a settlement payment or mechanism at a price related to any class or
series of shares of the corporation or with a value derived in whole or in part from the value of
any class or series of shares of the corporation, whether or not such instrument or right shall be
subject to settlement in the underlying class or series of capital stock of the corporation or
otherwise (a &#147;Derivative Instrument&#148;) directly or indirectly owned beneficially by such stockholder
and such beneficial owner, if any, any other direct or indirect opportunity to profit or share in
any profit derived from any increase or decrease in the value of shares of the corporation, (C)&nbsp;any
proxy, contract, arrangement, understanding, or relationship pursuant to which such stockholder and
such beneficial owner, if any, has a right to vote any shares of any security of the corporation,
(D)&nbsp;any short interest of such stockholder or beneficial owner, if any, in any security of the
corporation (for purposes of this Bylaw a person shall be deemed to have a short interest in a
security if such person directly or indirectly, through any contract, arrangement, understanding,
relationship or otherwise, has the opportunity to profit or share in any profit derived from any
decrease in the value of the subject security), (E)&nbsp;any rights to dividends on the shares of the
corporation owned beneficially by such stockholder or beneficial owner, if any, that are separated
or separable from the underlying shares of the corporation, (F)
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">any proportionate interest in shares of the corporation or Derivative Instruments held,
directly or indirectly, by a general or limited partnership in which such stockholder or beneficial
owner, if any, is a general partner or, directly or indirectly, beneficially owns an interest in a
general partner and (G)&nbsp;any performance-related fees (other than an asset-based fee) that such
stockholder or beneficial owner, if any, is entitled to based on any increase or decrease in the
value of shares of the corporation or Derivative Instruments, if any, as of the date of such
notice, including without limitation any such interests held by members of such stockholder&#146;s or
beneficial owner&#146;s immediate family sharing the same household (which information in this clause
(ii)&nbsp;shall be supplemented by such stockholder and beneficial owner, if any, not later than 10&nbsp;days
after the record date for the meeting to disclose such ownership as of the record date), (iii)&nbsp;any
other information relating to such stockholder and beneficial owner, if any, that would be required
to be disclosed in a proxy statement or other filings required to be made in connection with
solicitations of proxies for, as applicable, the proposal and/or for the election of directors in a
contested election pursuant to Section&nbsp;14 of the Exchange Act and the rules and regulations
promulgated thereunder; and (iv)&nbsp;a representation (A)&nbsp;that the stockholder is a holder of record of
stock of the corporation entitled to vote at such annual meeting and intends to appear in person or
by proxy at the annual meeting to propose such business or nomination and (B)&nbsp;whether the
stockholder or the beneficial owner, if any, intends or is part of a group which intends (x)&nbsp;to
deliver a proxy statement and/or form of proxy to holders of at least the percentage of the
corporation&#146;s outstanding capital stock required to approve or adopt the proposal or elect the
nominee and/or (y)&nbsp;otherwise to solicit proxies from stockholders in support of such proposal or
nomination; (b)&nbsp;if the notice relates to any business other than a nomination of a director or
directors that the stockholder proposes to bring before the meeting, set forth (i)&nbsp;a brief
description of the business desired to be brought before the meeting, the reasons for conducting
such business at the meeting and any material interest of such stockholder and beneficial owner, if
any, in such business and (ii)&nbsp;a description of all agreements, arrangements and understandings
between such stockholder and beneficial owner, if any, and any other person or persons (including
their names) in connection with the proposal of such business by such stockholder, and (c)&nbsp;set
forth, as to each person, if any, whom the stockholder proposes to nominate for election or
reelection to the Board of Directors (i)&nbsp;all information relating to such person that would be
required to be disclosed in a proxy statement or other filings required to be made in connection
with solicitations of proxies for election of directors in a contested election pursuant to Section
14 of the Exchange Act and the rules and regulations promulgated thereunder (including such
person&#146;s written consent to being named in the proxy statement as a nominee and to serve as a
director if elected) and (ii)&nbsp;a description of all direct and indirect compensation and other
material monetary agreements, arrangements and understandings during the past three years, and any
other material relationships, between or among such stockholder and beneficial owner, if any, and
their respective affiliates and associates, or others acting in concert therewith, on the one hand,
and each proposed nominee, and his or her respective affiliates and associates, or others acting in
concert therewith, on the other hand, including, without limitation, all information that would be
required to be disclosed pursuant to Rule&nbsp;404 promulgated under Regulation&nbsp;S-K if the stockholder
making the nomination and any beneficial owner on whose behalf the nomination is made, if any, or
any affiliate or associate thereof or person acting in concert therewith, were the &#147;registrant&#148; for
purposes of such rule and the nominee were a director or executive officer of such registrant. The
corporation may require any proposed nominee to furnish such other information as may reasonably be
required by the corporation to
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">determine the eligibility of such proposed nominee to serve as an independent director of the
corporation or that could be material to a reasonable stockholder&#146;s understanding of the
independence, or lack thereof, of such nominee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;Notwithstanding anything in the second sentence of Section&nbsp;7.E(2) of this Bylaw to the
contrary, in the event that the number of directors to be elected to the Board of Directors is
increased and there is no public announcement by the corporation naming all of the nominees for
director or specifying the size of the increased Board of Directors at least 100&nbsp;days prior to the
first anniversary of the preceding year&#146;s annual meeting, a stockholder&#146;s notice required by this
Bylaw shall also be considered timely, but only with respect to nominees for any new positions
created by such increase, if it shall be delivered to the Secretary at the principal executive
offices of the corporation not later than the close of business on the 10th day following the day
on which such public announcement is first made by the corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <I>Special Meetings of Stockholders</I>. Only such business shall be conducted at a special
meeting of stockholders as shall have been brought before the meeting pursuant to the corporation&#146;s
notice of meeting. Nominations of persons for election to the Board of Directors may be made at a
special meeting of stockholders at which directors are to be elected pursuant to the corporation&#146;s
notice of meeting (a)&nbsp;by or at the direction of the Board of Directors or (b)&nbsp;provided that the
Board of Directors has determined that directors shall be elected at such meeting, by any
stockholder of the corporation who (i)&nbsp;is a stockholder of record at the time of giving of notice
provided for in this Bylaw and at the time of the special meeting, (ii)&nbsp;is entitled to vote at the
meeting, and (iii)&nbsp;complies with the notice procedures set forth in this Bylaw as to such
nomination. In the event the corporation calls a special meeting of stockholders for the purpose
of electing one or more directors to the Board of Directors, any such stockholder may nominate a
person or persons (as the case may be) for election to such position(s) as specified in the
corporation&#146;s notice of meeting, if the stockholder&#146;s notice required by Section&nbsp;7.E(2) of this
Bylaw with respect to any nomination shall be delivered to the Secretary at the principal executive
offices of the corporation not earlier than the close of business on the 120th day prior to the
date of such special meeting and not later than the close of business on the later of the 90th day
prior to the date of such special meeting or, if the first public announcement of the date of such
special meeting is less than 100&nbsp;days prior to the date of such special meeting, the 10th day
following the day on which public announcement is first made of the date of the special meeting and
of the nominees proposed by the Board of Directors to be elected at such meeting. In no event
shall any adjournment or postponement of a special meeting or the announcement thereof commence a
new time period for the giving of a stockholder&#146;s notice as described above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <I>General</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;Notwithstanding anything in these Bylaws to the contrary, no business shall be conducted
at an annual or special meeting except in accordance with the procedures set forth in this Bylaw.
Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, the chairman
of the meeting may, if the facts warrant, determine that the business was not properly brought
before the meeting in accordance with the provisions of this Bylaw; and if the chairman should so
determine, the chairman shall so declare to the meeting, and any such business not properly brought
before the meeting shall not be transacted.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nothing in this Bylaw shall be deemed to affect any rights of stockholders to request
inclusion of proposals in the corporation&#146;s proxy statement pursuant to Rule&nbsp;14a-8 under the
Exchange Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;No person shall be eligible for election as a director of the corporation unless nominated
in accordance with the procedures set forth in these Bylaws. Except as otherwise provided by law,
the Certificate of Incorporation or these Bylaws, the chairman of the meeting may, if the facts
warrant, determine that a nomination was not made in accordance with the procedures prescribed in
this Bylaw; and if the chairman should so determine, the chairman shall so declare to the meeting,
and the defective nomination shall be disregarded. Nothing in this Section&nbsp;7 shall be deemed to
affect any rights of the holders of any series of preferred stock of the corporation to elect
directors pursuant to any applicable provisions of the Certificate of Incorporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;Notwithstanding the foregoing provisions of this Bylaw, a stockholder shall also comply
with all applicable requirements of the Exchange Act and the rules and regulations thereunder with
respect to the matters set forth in this Bylaw; provided, however, that any references in these
Bylaws to the Exchange Act or the rules promulgated thereunder are not intended to and shall not
limit the requirements applicable to nominations or proposals as to any other business to be
considered pursuant to Section&nbsp;7.E(1)(c) or Section&nbsp;7.F of this Bylaw.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;For purposes of this Bylaw, &#147;public announcement&#148; shall mean disclosure in a press release
reported by a national news service or in a document publicly filed by the corporation with the
Securities and Exchange Commission pursuant to Section&nbsp;13, 14 or 15(d) of the Exchange Act and the
rules and regulations promulgated thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;Notwithstanding the foregoing provisions of this Bylaw, unless otherwise required by law,
if the stockholder (or a qualified representative of the stockholder) does not appear at the annual
or special meeting of stockholders of the corporation to present a nomination or proposed business,
such nomination shall be disregarded and such proposed business shall not be transacted
notwithstanding that proxies in respect of such vote may have been received by the corporation.
For purposes of this Bylaw, to be considered a qualified representative of the stockholder, a
person must be a duly authorized officer, manager, or partner of such stockholder or must be
authorized by a writing executed by such stockholder or an electronic transmission delivered by
such stockholder to act for such stockholder as proxy at the annual or special meeting and such
person must produce such writing or electronic transmission, or a reliable reproduction of the
writing or electronic transmission, at the annual or special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <I>Stockholder List</I>. The officer who has charge of the stock ledger of the corporation shall
prepare and make, at least 10&nbsp;days before every meeting of stockholders, a complete list of the
stockholders, arranged in alphabetical order, and showing the address of each stockholder and the
number of shares registered in the name of each stockholder. Such list shall be open to the
examination of any stockholder, for any purpose germane to the meeting, during ordinary business
hours, for a period of at least 10&nbsp;days prior to the meeting, either at a place within the city or
other municipality or community where the meeting is to be held, which place shall be specified in
the notice of the meeting, or if not so specified, at the place where the meeting is to be held.
The list shall also be produced and kept at the time and place of 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">meeting during the whole time thereof, and may be inspected by any stockholder who is present.
The stock ledger shall be the only evidence as to who are the stockholders entitled to examine
the stock ledger, the list required by this section or the books of the corporation, or to vote at
any meeting of stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <I>Conduct of Meeting</I>. Meetings of the stockholders shall be presided over by one of the
following officers in the order of seniority and, if present and acting, the Chairman of the Board,
if any, the Lead Director, if any, the Vice Chairman of the Board, if any, the Chief Executive
Officer, the President, a Vice President, or, if none of the foregoing is in office and present and
acting, by a chairman to be chosen by the stockholders. The Secretary of the corporation, or in
his absence, an Assistant Secretary, shall act as secretary of every meeting, but if neither the
Secretary nor an Assistant Secretary is present the Chairman of the meeting shall appoint a
secretary of the meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. <I>Proxy Representation</I>. Every stockholder may authorize another person or persons to act for
him by proxy in all matters in which a stockholder is entitled to participate, whether by waiving
notice of any meeting, voting or participating at a meeting, or expressing consent or dissent
without a meeting. Every proxy must be authorized by an instrument in writing or by a transmission
permitted by law. Any copy, electronic transmission or other reliable reproduction of the writing
or transmission created pursuant to this paragraph may be substituted or used in lieu of the
original writing or transmission for any and all purposes for which the original writing or
transmission could be used, provided that such copy, electronic transmission or other reproduction
shall be a complete reproduction of the entire original writing or transmission. No proxy shall be
voted or acted upon after three years from its date unless such proxy provides for a longer period.
A duly executed proxy shall be irrevocable if it states that it is irrevocable and, if, and only
as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A
proxy may be made irrevocable regardless of whether the interest with which it is coupled is an
interest in the stock itself or an interest in the corporation generally.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. <I>Inspectors</I>. The directors, in advance of any meeting, may, but need not, appoint one or
more inspectors of election to act at the meeting or any adjournment thereof. If an inspector or
inspectors are not appointed, the person presiding at the meeting may, but need not, appoint one or
more inspectors. In case any person who may be appointed as an inspector fails to appear or act,
the vacancy may be filled by appointment made by the Board of Directors in advance of the meeting
or at the meeting by the person presiding thereat. Each inspector, if any, before entering upon
the discharge of his duties, shall take and sign an oath faithfully to execute the duties of
inspectors at such meeting with strict impartiality and according to the best of his ability. The
inspectors, if any, shall determine the number of shares of stock outstanding and the voting power
of each, the shares of stock represented at the meeting, the existence of a quorum, the validity
and effect of proxies, and shall receive votes, ballots, or consents, hear and determine all
challenges and questions arising in connection with the right to vote, count and tabulate all
votes, ballots, or consents, determine the result, and do such acts as are proper to conduct the
election or vote with fairness to all stockholders. On request of the person presiding at the
meeting, the inspector or inspectors, if any, shall make a report in writing of any challenge,
question, or matter determined by him or them and execute a certificate of any fact found by him or
them.
</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. <I>Quorum</I>. The holders of a majority of the outstanding shares of stock shall constitute a
quorum at a meeting of stockholders for the transaction of any business. The stockholders present
may adjourn the meeting despite the absence of a quorum.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. <I>Voting</I>. Each share of stock shall entitle the holders thereof to one vote. Directors
shall be elected by a plurality of the votes of the shares present in person or represented by
proxy at the meeting and entitled to vote on the election of directors. Any other action shall be
authorized by a majority of the votes cast except where the General Corporation Law prescribes a
different percentage of votes and/or a different exercise of voting power, and except as may be
otherwise prescribed by the provisions of the Certificate of Incorporation and these By-Laws. In
the election of directors, and for any other action, voting need not be by ballot.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>STOCKHOLDER ACTION WITHOUT MEETINGS</U>. Any action required by the General
Corporation Law to be taken at any annual or special meeting of stockholders, or any action which
may be taken at any annual or special meeting of stockholders, may be taken without a meeting,
without prior notice and without a vote, if a consent in writing, setting forth the action so
taken, shall be signed by the holders of outstanding stock having not less than the minimum number
of votes that would be necessary to authorize or take such action at a meeting at which all shares
entitled to vote thereon were present and voted. Prompt notice of the taking of the corporate
action without a meeting by less than unanimous written consent shall be given to those
stockholders who have not consented in writing. Action taken pursuant to this paragraph shall be
subject to the provisions of Section&nbsp;228 of the General Corporation Law.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE II</U><BR>
<U>DIRECTORS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>FUNCTIONS AND DEFINITION</U>. The business and affairs of the corporation shall be
managed by or under the direction of the Board of Directors of the corporation. The Board of
Directors shall have the authority to fix the compensation of the members thereof. The use of the
phrase &#147;whole board&#148; herein refers to the total number of directors which the corporation would
have if there were no vacancies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>QUALIFICATIONS AND NUMBER</U>. A director need not be a stockholder, a citizen of the
United States, or a resident of the State of Delaware. The number of directors constituting the
whole board shall be at least one. Subject to the foregoing limitation and except for the first
Board of Directors, such number may be fixed from time to time by action of the stockholders or of
the Board of Directors. The number of directors may be increased or decreased by action of the
stockholders or of the directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>ELECTION AND TERM</U>. The first Board of Directors, unless the members thereof shall
have been named in the Certificate of Incorporation, shall be elected by the incorporator or
incorporators and shall hold office until the first annual meeting of stockholders and until their
successors are elected and qualified or until their earlier resignation or removal. Any director
may resign at any time upon written notice to the corporation. Thereafter, directors who are
elected at an annual meeting of stockholders, and directors who are elected in the interim to fill
vacancies and newly created directorships, shall hold office until the next annual meeting of
stockholders and until their successors are elected and qualified or until their earlier
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">resignation or removal. Except as the General Corporation Law may otherwise require, in the
interim between annual meetings of stockholders or of special meetings of stockholders called for
the election of directors and/or for the removal of one or more directors and for the filling of
any vacancy in that connection, newly created directorships and any vacancies in the Board of
Directors, including unfilled vacancies resulting from the removal of directors for cause or
without cause, may be filled by the vote of a majority of the remaining directors then in office,
although less than a quorum, or by the sole remaining director.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>LEAD DIRECTOR</U>. The Board of Directors will designate a non-management director as
Lead Director. The Lead Director shall (i)&nbsp;preside at meetings where the Chairman of the Board is
not present, including executive sessions and sessions where only independent directors are
present, (ii)&nbsp;determine the frequency and timing of executive sessions of non-management directors
and report to the Chairman of the Board and the Chief Executive Officer on all relevant matters
arising from those sessions, and shall invite the Chairman of the Board and the Chief Executive
Officer to join the executive session for further discussion as appropriate, (iii)&nbsp;serve as a
liaison between the Board of Directors and management and among the directors and the committees of
the Board of Directors, (iv)&nbsp;have authority to call meetings of the independent directors, provided
that notice of any such meeting is given to the Chairman of the Board, (v)&nbsp;review all Board of
Directors and committee agendas and provide input to management on the scope and quality of
information sent to the Board of Directors, (vi)&nbsp;serve as the point of contact for stockholders and
others to communicate with the Board of Directors, (vii)&nbsp;recommend to the Board of Directors and
committees the retention of advisors and consultants who report directly to the Board of Directors,
and (viii)&nbsp;perform all other duties as may be assigned by the Board of Directors from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>MEETINGS</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <I>Time</I>. Meetings shall be held at such time as the Board of Directors shall fix, except that
the first meeting of a newly elected Board of Directors shall be held as soon after its election as
the directors may conveniently assemble.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <I>Place</I>. Meetings shall be held at such place within or without the State of Delaware as
shall be fixed by the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <I>Call</I>. No call shall be required for regular meetings for which the time and place have
been fixed. Special meetings may be called by or at the direction of the Chairman of the Board, if
any, the Vice Chairman of the Board, if any, the Chief Executive Officer, the President, or of a
majority of the directors in office.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <I>Notice or Actual or Constructive Waiver</I>. No notice shall be required for regular meetings
for which the time and place have been fixed. Written, oral, or any other mode of notice of the
time and place shall be given for special meetings in sufficient time for the convenient assembly
of the directors thereat. Notice need not be given to any director or to any member of a committee
of directors who submits a written waiver of notice signed by him before or after the time stated
therein. Attendance of any such person at a meeting shall constitute a waiver of notice of such
meeting, except when he attends a meeting for the express purpose of objecting, at the beginning of
the meeting, to the transaction of any business because the meeting
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">is not lawfully called or convened. Neither the business to be transacted at, nor the purpose
of, any regular or special meeting of the directors need be specified in any written waiver of
notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <I>Quorum and Action</I>. A majority of the whole Board of Directors shall constitute a quorum
except when a vacancy or vacancies prevents such majority, whereupon a majority of the directors in
office shall constitute a quorum, provided, that such majority shall constitute at least one-third
of the whole Board of Directors. A majority of the directors present, whether or not a quorum is
present, may adjourn a meeting to another time and place. Except as herein otherwise provided, and
except as otherwise provided by the General Corporation Law, the vote of the majority of the
directors present at a meeting at which a quorum is present shall be the act of the Board of
Directors. The quorum and voting provisions herein stated shall not be construed as conflicting
with any provisions of the General Corporation Law and these By-Laws which govern a meeting of
directors held to fill vacancies and newly created directorships in the Board of Directors or
action of disinterested directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any member or members of the Board of Directors or of any committee designated by the Board of
Directors, may participate in a meeting of the Board of Directors, or any such committee, as the
case may be, by means of conference telephone or similar communications equipment by means of which
all persons participating in the meeting can hear each other.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <I>Chairman of the Meeting</I>. The Chairman of the Board, if any and if present and acting,
shall preside at all meetings. Otherwise, the Lead Director, if any and if present and acting, or
any other director chosen by the Board of Directors, shall preside.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>REMOVAL OF DIRECTORS</U>. Except as may otherwise be provided by the General
Corporation Law, any director or the entire Board of Directors may be removed, with or without
cause, by the holders of a majority of the shares then entitled to vote at an election of
directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>COMMITTEES</U>. The Board of Directors may, by resolution passed by a majority of the
whole Board of Directors, designate one or more committees, each committee to consist of one or
more of the directors of the corporation. The Board of Directors may designate one or more
directors as alternate members of any committee, who may replace any absent or disqualified member
at any meeting of the committee. In the absence or disqualification of any member of any such
committee or committees, the member or members thereof present at any meeting and not disqualified
from voting, whether or not he or they constitute a quorum, may unanimously appoint another member
of the Board of Directors to act at the meeting in the place of any such absent or disqualified
member. Any such committee, to the extent provided in the resolution of the Board of Directors,
shall have and may exercise the powers and authority of the Board of Directors in the management of
the business and affairs of the corporation with the exception of any authority the delegation of
which is prohibited by Section&nbsp;141 of the General Corporation Law, and may authorize the seal of
the corporation to be affixed to all papers which may require it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>WRITTEN ACTION</U>. Any action required or permitted to be taken at any meeting of the
Board of Directors or any committee thereof may be taken without a meeting if
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">all members of the Board of Directors or committee, as the case may be, consent thereto in
writing, and the writing or writings are filed with the minutes of proceedings of the Board of
Directors or committee.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE III</U><BR>
<U>OFFICERS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The officers of the corporation shall consist of a Chief Executive Officer, a President, a
Secretary, a Treasurer, and, if deemed necessary, expedient, or desirable by the Board of
Directors, a Chairman of the Board, a Vice Chairman of the Board, one or more Executive Vice
Presidents, one or more Vice Presidents, one or more Assistant Secretaries, one or more Assistant
Treasurers, and such other officers with such titles as the resolution of the Board of Directors
choosing them shall designate. Except as may otherwise be provided in the resolution of the Board
of Directors choosing him, no officer other than the Chairman or Vice Chairman of the Board of
Directors, if any, need be a director. Any number of offices may be held by the same person, as
the directors may determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise provided in the resolution choosing him, each officer shall be chosen for a
term which shall continue until the meeting of the Board of Directors following the next annual
meeting of stockholders and until his successor shall have been chosen and qualified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All officers of the corporation shall have such authority and perform such duties in the
management and operation of the corporation as shall be prescribed in the resolutions of the Board
of Directors designating and choosing such officers and prescribing their authority and duties, and
shall have such additional authority and duties as are incident to their office except to the
extent that such resolutions may be inconsistent therewith. The Secretary or an Assistant
Secretary of the corporation shall record all of the proceedings of all meetings and actions in
writing of stockholders, directors, and committees of directors, and shall exercise such additional
authority and perform such additional duties as the Board shall assign to him. Any officer may be
removed, with or without cause, by the Board of Directors. Any vacancy in any office may be filled
by the Board of Directors.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE IV</U><BR>
<U>CORPORATE SEAL</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The corporate seal shall be in such form as the Board of Directors shall prescribe.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE V</U><BR>
<U>FISCAL YEAR</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fiscal year of the corporation shall be fixed, and shall be subject to change, by the
Board of Directors.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE VI</U><BR>
<U>AMENDMENT OF BY-LAWS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The power to adopt, alter, amend or repeal By-Laws shall be vested in the Board of Directors.
The fact that such power has been so conferred upon the directors shall not divest 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">stockholders of the power, nor limit their power to adopt, amend or repeal By-Laws. By-Laws
adopted by the Board of Directors or by the stockholders may be repealed or changed, new By-Laws
may be adopted by the stockholders, and the stockholders may prescribe in any By-Law made by them
that such By-Law shall not be altered, amended or repealed by the Board of Directors.
</DIV>



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<SEQUENCE>6
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<DESCRIPTION>EX-99.E.11
<TEXT>
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 <DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit (e)(11)
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORM OF AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amended and Restated Change in Control Agreement (this &#147;<B><I>Agreement</I></B>&#148;) is dated as of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (the &#147;<B><I>Effective Date</I></B>&#148;) and is entered into by and between <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
(&#147;<B><I>Executive</I></B>&#148;) and Craftmade International, Inc., a Delaware corporation (the &#147;<B><I>Company</I></B>,&#148; which term
includes, following a Change in Control, any successor in interest to the Company). This
Agreement amends, restates, and supersedes in its entirety that certain Change in Control Agreement
by and between Executive and the Company dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2010. As an inducement to render
services and superior performance to the Company, Executive and the Company agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Term of Agreement</U>. This Agreement shall become effective and binding immediately
upon the Effective Date, and shall remain in effect until the second (2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP>) anniversary
of the Effective Date or until later termination if this Agreement is renewed under this
<U>Section&nbsp;1</U>. This Agreement shall be automatically renewed each <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> for an
additional two (2)&nbsp;year term, unless either the Company or Executive provides written notice of
election not to renew at least three (3)&nbsp;months before the applicable renewal date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Benefits Payable Upon Change in Control</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the date immediately preceding the Closing Date, the Board of Directors of the
Company (the &#147;<B><I>Board</I></B>&#148;) shall approve the payment and amounts of the benefits set forth in
<U>Sections&nbsp;2(b), 2(c), and 2(d)</U> below, as applicable, and subject to the requirements
of <U>Section&nbsp;2(e)</U>; provided, that Executive has not been terminated by the Company for
Cause at any time between the Effective Date and the date immediately preceding the Closing
Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Closing Date, the Company shall pay to Executive a lump sum amount equal to
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>) months of Executive&#146;s annual base salary, at the rate in effect immediately
prior to the Change in Control.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event Executive&#146;s employment is terminated, other than for Cause, on the
Closing Date in connection with the Change in Control, the Company shall pay fifty percent
(50%) of the premiums for COBRA continuation coverage for Executive and his eligible
dependents, provided that Executive (i)&nbsp;is a current participant in the Company&#146;s group
health plan at the time of such termination of employment and (ii)&nbsp;properly and timely
elects continuation coverage for Executive and Executive&#146;s eligible dependents, who were
covered under the Company&#146;s group health plan immediately prior to Executive&#146;s termination
of employment. The Company will pay the premiums on Executive&#146;s behalf directly to the
insurer on a monthly basis for a period of eighteen (18)&nbsp;months, or if earlier, until the
date any of the following events occurs: (i)&nbsp;Executive obtains employment with another
entity under which Executive is offered and becomes eligible to receive health insurance
coverage as an employee; (ii)&nbsp;Executive breaches the terms of the Release; (iii)&nbsp;coverage
terminates under the terms of the Company&#146;s group health plan for any reason; or (iv)&nbsp;the
Company&#146;s group health plan in effect as of the Closing Date terminates. Thereafter, if
Executive is eligible and wishes to continue continuation coverage, and the maximum
applicable COBRA coverage period has not
</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%">expired, Executive may continue coverage, but Executive shall be solely responsible for
payment of any required COBRA premium. Any benefits provided under this <U>Section
2(c)</U> to Executive or Executive&#146;s dependents shall be modified to the extent benefits
under the group health plan are modified for active employees of the Company, and the
Company reserves the right to amend, terminate or modify the group health plan at any time.
To the extent such benefits are otherwise taxable to Executive, such benefits shall for
purposes of Section&nbsp;409A of the Code, and the regulations and other guidance issued
thereunder, be provided as separate monthly in-kind payments of those benefits, and to the
extent those benefits are subject to and not otherwise excepted from Section&nbsp;409A of the
Code, the provision of the in-kind benefits during one calendar year shall not affect the
in-kind benefits to be provided in any other calendar year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that Executive receives any payments from the Company (including
pursuant to any stock option or equity awards) or its affiliates, under this Agreement or
otherwise, that are subject to tax under Section&nbsp;4999 of the Code, the Company shall pay to
Executive the Gross-Up Payment described in <U>Schedule&nbsp;A</U> hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything herein to the contrary, the payments and benefits provided
under this <U>Section&nbsp;2</U> are conditioned on Executive&#146;s execution of a release of claims
in the form provided by the Company (the &#147;<B><I>Release</I></B>&#148;), and in accordance with the terms of the
Release.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Definitions</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &#147;<B><I>Cause</I></B>&#148; means (i)&nbsp;the failure by Executive to substantially perform Executive&#146;s
duties with the Company that has not been cured within thirty (30)&nbsp;days after a written
demand for substantial performance is delivered to Executive by the Company; (ii)&nbsp;the
willful engaging by Executive in conduct, which is deemed by the Company to be materially
injurious to the Company, monetarily or otherwise; (iii)&nbsp;the appropriation (or attempted
appropriation) of a business opportunity of the Company, including attempting to secure or
securing any personal profit in connection with any transaction entered into on behalf of
any member of the Company; (iv)&nbsp;the misappropriation (or attempted misappropriation) of
funds or property belonging to the Company; or (v)&nbsp;Executive&#146;s conviction of, or entry by
Executive of a guilty or no contest plea to, a misdemeanor (involving moral turpitude or
fraud) or a felony, the equivalent thereof, or any other crime with respect to which
imprisonment is a possible punishment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &#147;<B><I>Change in Control</I></B>&#148; means a change in (i)&nbsp;the Company&#146;s ownership; (ii)&nbsp;the
effective control of the Company; or (iii)&nbsp;the ownership of a substantial portion of its
assets, as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Change in Ownership</U>. A change in ownership of the Company occurs
on the date that any Person, other than (1)&nbsp;the current stockholders of the Company
or their respective Affiliates as of the Effective Date, (2)&nbsp;the Company or any of
its subsidiaries; (3)&nbsp;a trustee or other fiduciary holding securities either on
behalf of a current stockholder or pursuant to an employee benefit plan (or related
trust) sponsored or maintained by the Company or any of its Affiliates; or
</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: 4%">(4)&nbsp;an underwriter temporarily holding stock pursuant to an offering of such
stock, acquires ownership (either directly, or indirectly through application of the
attribution of stock ownership rules described in Treasury Regulation
&#167;1.409A-3(i)(5)(iii)) of the Company&#146;s stock that, together with stock held by such
Person, constitutes more than fifty percent (50%) of the total fair market value or
total voting power of the Company&#146;s stock. However, if any Person is considered to
own already more than fifty percent (50%) of the total fair market value or total
voting power of the Company&#146;s stock (either directly or indirectly through
application of the attribution of stock ownership rules described in Treasury
Regulation &#167;1.409A-3(i)(5)(iii)), the acquisition of additional stock by the same
Person is not considered to be a Change in Control;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>Change in Effective Control</U>. A change in the effective control of
the Company occurs on the date during any twelve (12)-month period when a majority
of members of the Board is replaced by directors whose appointment or election is
not endorsed by at least two-thirds (2/3) of the Board before the date of the
appointment or election; <U>provided</U>, <U>however</U>, that any such director
shall not be considered to be endorsed by the Board if his or her initial assumption
of office occurs as a result of an actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <U>Change in Ownership of Substantial Portion of Assets</U>. A change
in the ownership of a substantial portion of the Company&#146;s assets occurs on the date
that a Person acquires (or has acquired during the twelve (12)-month period ending
on the date of the most recent acquisition by such Person) total assets of the
Company (including the stock of its consolidated subsidiaries), that have a total
gross fair market value equal to at least eighty percent (80%) of the total gross
fair market value of all of the Company&#146;s assets (including the stock of its
consolidated subsidiaries) immediately before such acquisition or acquisitions.
However, there is no Change in Control when there is such a transfer to an entity
that is controlled by the current stockholders of the Company immediately after the
transfer, through a transfer to (1)&nbsp;a stockholder of the Company (immediately before
the asset transfer) in exchange for or with respect to the Company&#146;s stock; (2)&nbsp;an
entity, at least fifty percent (50%) of the total value or voting power of the stock
of which is owned, directly or indirectly, by the Company; (3)&nbsp;a Person that owns
directly or indirectly, at least fifty percent (50%) of the total value or voting
power of the Company&#146;s outstanding stock; or (4)&nbsp;an entity, at least fifty percent
(50%) of the total value or voting power of the stock of which is owned by a Person
that owns, directly or indirectly, at least fifty percent (50%) of the total value
or voting power of the Company&#146;s outstanding stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For purposes of this <U>Section&nbsp;3(b)</U>, the following terms shall have
the following definitions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &#147;<B><I>Person</I></B>&#148; shall have the meaning given in Section&nbsp;7701(a)(1) of the
Code. Person shall include more than one Person acting
</DIV>

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</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: 6%">as a group as defined by the Final Treasury Regulations issued under
Section&nbsp;409A of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &#147;<B><I>Affiliate</I></B>&#148; shall have the meaning set forth in Rule&nbsp;12b-2
promulgated under Section&nbsp;12 of the Securities Exchange Act of 1934, as
amended.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &#147;<B><I>Closing Date</I></B>&#148; means the &#147;closing date&#148; as such term is defined in the definitive
agreement governing the event described in <U>Section&nbsp;3(b)</U> that constitutes a Change in
Control, or in the event there is no definitive agreement governing such event, the date
that such event constituting the Change in Control is effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &#147;<B><I>Code</I></B>&#148; means the Internal Revenue Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Governing Law</U>. This Agreement is made and entered into in the State of Texas, and
the laws of Texas shall govern its validity and interpretation in the performance by the parties of
their respective duties and obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Entire Agreement</U>. This Agreement constitutes the entire agreement between the
parties concerning the subject matter hereof, and there are no representations, warranties or
commitments, other than those in writing executed by all of the parties. This is an integrated
agreement. This agreement shall not constitute a contract of employment between the Company, on
the one hand, and Executive, on the other hand. Nothing herein contained shall be deemed to (a)
give Executive the right to be retained in the employ of the Company; (b)&nbsp;interfere with the right
of the Company to discharge or retire Executive at any time; (c)&nbsp;give to the Company the right to
require Executive to remain in its employ; or (d)&nbsp;interfere with Executive&#146;s right to terminate its
employment at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Specific Performance</U>. The parties acknowledge that remedies at law will be
inadequate remedies for breach of this Agreement and consequently agree that this Agreement shall
be enforceable by specific performance. The remedy of specific performance shall be cumulative of
all of the right and remedies at law or in equity of the parties under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Assistance in Litigation</U>. Executive shall make himself available, upon the request
of the Company, to testify or otherwise assist in litigation, arbitration, or other disputes
involving the Company, or any of its directors, officers, employees, subsidiaries, or parent
corporations, at no additional cost during the term of this Agreement and at any time following the
termination of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Notices</U>. Any notice or communication required or permitted to be given to the
parties shall be delivered personally or sent by United States registered or certified mail,
postage prepaid and return receipt requested, and addressed or delivered as follows, or to such
other address as the party addressed may be substituted by notice pursuant to this Section.
</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">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If to the Company:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Craftmade International, Inc.</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;Address&#093;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ATTENTION: <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>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If to Executive:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;Name&#093;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;Address&#093;</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U>Nondisclosure of Confidential Information</U>. Executive agrees that during the term
of this Agreement and thereafter, Executive will not disclose any information or data concerning
the business or customers of the Company that is disclosed to Executive or acquired by Executive in
confidence at any time during the period of his employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U>Binding Agreement</U>. This Agreement shall inure to the benefit of and be
enforceable by Executive&#146;s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devises and legatees. If Executive should die while any amounts
would still be payable to him hereunder if he had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this Agreement to his
devisee, legatee, or other designee, or, if there be no such designee, to his estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U>No Mitigation of Amounts Payable Hereunder</U>. Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by seeking other employment or
otherwise, nor shall the amount of any payment provided for in this Agreement be reduced by any
compensation earned by Executive as the result of employment by another employer after the date of
termination, or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U>At-Will Employment</U>. Nothing in this Agreement shall modify the employment at-will
relationship which exists between the Company and Executive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U>Captions</U>. The captions of this Agreement are inserted for convenience and are not
part of the Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U>Severability</U>. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any other
respect, such invalidity, illegality or unenforceability shall not affect any other provision of
this Agreement. This Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been a part of the Agreement and there shall be deemed substituted therefor
such other provision as will most nearly accomplish the intent of the parties to the extent
permitted by the applicable law. In case this Agreement, or any one or more of its provisions,
shall be held to be invalid, illegal or unenforceable within any governmental jurisdiction or
subdivision, then such provision shall be of no force or effect, but the remainder of this
Agreement shall be enforceable.
</DIV>

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</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;15.&nbsp;<U>Counterparts</U>. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which shall together constitute
one in the same Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U>Amendment</U>. Except as otherwise provided herein, this Agreement may not be amended
or modified at any time except by a written instrument approved by the Board, and executed by the
Company and Executive. Any attempted amendment or modification without such approval and execution
shall be null and void ab initio and of no effect. Notwithstanding the foregoing provisions of
this <U>Section&nbsp;16</U>, the Board may change or modify this Agreement without Executive&#146;s consent
or signature if the Board determines, in its sole discretion, that such change or modification is
required for purposes of compliance with or exemption from the requirements of Section&nbsp;409A of the
Code.
</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">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;&nbsp;Executive:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;Date:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<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">CRAFTMADE INTERNATIONAL, INC.<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">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD colspan="1" align="left">Its:&nbsp;</TD>
    <TD colspan="1" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</tr>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Date:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>






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




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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Certain Supplemental Payments by the Company</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms not otherwise defined herein shall have the meanings set forth in the Change
in Control Agreement (the &#147;<B>Agreement</B>&#148;), of which this Schedule&nbsp;A is a part.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;If it shall be determined that any amount, right or benefit paid, distributed or treated as
paid or distributed by the Company or any of its affiliates to or for Executive&#146;s benefit (other
than any amounts payable pursuant to this Schedule&nbsp;A) (a &#147;<B>Payment</B>&#148;) would be subject to the excise
tax imposed by Section&nbsp;4999 of the Code, or any interest or penalties are incurred by Executive
with respect to such excise tax (such excise tax, together with any such interest and penalties,
collectively, the &#147;<B>Excise Tax</B>&#148;), then Executive shall be entitled to receive an additional payment
(a &#147;<B>Gross-Up Payment</B>&#148;) in an amount equal to the amount necessary such that after payment by
Executive of all federal, state and local taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and any interest and
penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;All determinations required to be made under this Schedule&nbsp;A, including whether and when a
Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such determination, shall be made by an independent public accounting firm
(the &#147;<B>Accounting Firm</B>&#148;). The Accounting Firm shall provide detailed supporting calculations to
both the Company and Executive within fifteen (15)&nbsp;business days following the receipt of notice
from Executive or the Company that there has been a Payment, or such earlier time as is requested
by the Company. All fees and expenses of the Accounting Firm shall be paid by the Company. Any
Gross-Up Payment, as determined pursuant to this Schedule&nbsp;A, shall be paid by the Company to
Executive (or to the Internal Revenue Service or other applicable taxing authority on Executive&#146;s
behalf) within five (5)&nbsp;days following the receipt of the Accounting Firm&#146;s determination. All
determinations made by the Accounting Firm shall be binding upon the Company and Executive;
<U>provided</U> that following any payment of a Gross-Up Payment to Executive (or to the Internal
Revenue Service or other applicable taxing authority on Executive&#146;s behalf), the Company may
require Executive to sue for a refund of all or any portion of the Excise Taxes paid on Executive&#146;s
behalf, in which event the provisions of paragraph (3)&nbsp;below shall apply. As a result of
uncertainty regarding the application of Section&nbsp;4999 of the Code hereunder, it is possible that
the Internal Revenue Service may assert that Excise Taxes are due that were not included in the
Accounting Firm&#146;s calculation of the Gross-Up Payments (an &#147;<B>Underpayment</B>&#148;). In the event that the
Company exhausts its remedies pursuant to this Schedule&nbsp;A and Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any additional Gross-Up Payments that are due as a result
thereof shall be promptly paid by the Company to Executive (or to the Internal Revenue Service or
other applicable taxing authority on Executive&#146;s behalf).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Executive shall notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of the Gross-Up
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment. Such notification shall be given as soon as practicable but no later than ten (10)
business days after Executive receives written notification of such claim and shall apprise the
Company of the nature of such claim and the date on which such claim is requested to be paid.
Executive shall not pay such claim prior to the expiration of the thirty (30)&nbsp;days period following
the date on which it gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due). If the Company notifies Executive in
writing prior to the expiration of such period that it desires to contest such claim, Executive
shall: (i)&nbsp;give the Company all information reasonably requested by the Company relating to such
claim; (ii)&nbsp;take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Company and
ceasing all efforts to contest such claim; (iii)&nbsp;cooperate with the Company in good faith in order
to effectively contest such claim; and (iv)&nbsp;permit the Company to participate in any proceeding
relating to such claim; <U>provided</U>, <U>however</U>, that the Company shall bear and pay
directly all reasonable costs and expenses (including additional interest and penalties) incurred
in connection with such contest and shall indemnify and hold Executive harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expense. Without limiting the
foregoing provisions of this Schedule&nbsp;A, the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect
of such claim and may, at its sole option, either direct Executive to pay the tax claimed and sue
for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as the Company shall determine and direct; <U>provided</U>,
<U>however</U>, that if the Company directs Executive to pay such claim and sue for a refund, the
Company shall, to the extent permitted by law, advance the amount of such payment to Executive, on
an interest-free basis, and shall indemnify and hold Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for Executive&#146;s taxable year with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company&#146;s control of the contest shall
be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and
Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;If, after Executive&#146;s receipt of an amount advanced by the Company pursuant to this
Schedule&nbsp;A, Executive becomes entitled to receive any refund with respect to such claim, Executive
shall promptly pay to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after Executive&#146;s receipt of an amount
advanced by the Company pursuant to this Schedule&nbsp;A, a determination is made that Executive shall
not be entitled to any refund with respect to such claim and the Company does not notify Executive
in writing of its intent to contest such denial of refund prior to the expiration of thirty (30)
days after the Company&#146;s receipt of notice of such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Notwithstanding anything to the contrary contained herein, in no event shall any payment be
made pursuant to this Schedule&nbsp;A after the end of Executive&#146;s taxable year next following
Executive&#146;s taxable year in which Executive remits any related taxes to the IRS.
</DIV>

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</DIV>

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<DOCUMENT>
<TYPE>EX-99.E.12
<SEQUENCE>7
<FILENAME>d71441exv99wew12.htm
<DESCRIPTION>EX-99.E.12
<TEXT>
<HTML>
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<TITLE>exv99wew12</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit (e)(12)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORM OF CHANGE IN CONTROL AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Change in Control Agreement (this &#147;<B><I>Agreement</I></B>&#148;) is dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (the
&#147;<B><I>Effective Date</I></B>&#148;) and is entered into by and between <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (&#147;<B><I>Executive</I></B>&#148;) and Craftmade
International, Inc., a Delaware corporation (the &#147;<B><I>Company</I></B>,&#148; which term includes, following a Change
in Control, any successor in interest to the Company). As an inducement to render services and
superior performance to the Company, Executive and the Company agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Term of Agreement</U>. This Agreement shall become effective and binding immediately
upon the Effective Date, and shall remain in effect until the second (2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP>) anniversary
of the Effective Date or until later termination if this Agreement is renewed under this
<U>Section&nbsp;1</U>. This Agreement shall be automatically renewed each <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> for an
additional two (2)&nbsp;year term, unless either the Company or Executive provides written notice of
election not to renew at least three (3)&nbsp;months before the applicable renewal date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Benefits Payable Upon Termination of Employment Following a Change in Control</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event Executive&#146;s employment is terminated, other than for Cause, on the
Closing Date, or within sixty (60)&nbsp;days following the Closing Date, the Company shall pay to
Executive a lump sum amount equal to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>) months of Executive&#146;s annual base
salary, at the rate in effect immediately prior to the Change in Control, within <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
days following the date of termination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event Executive&#146;s employment is terminated, other than for Cause, on the
Closing Date, or within sixty (60)&nbsp;days following the Closing Date, the Company shall pay
fifty percent (50%) of the premiums for COBRA continuation coverage for Executive and his
eligible dependents, provided that Executive (i)&nbsp;is a current participant in the Company&#146;s
group health plan at the time of such termination of employment and (ii)&nbsp;properly and timely
elects continuation coverage for Executive and Executive&#146;s eligible dependents, who were
covered under the Company&#146;s group health plan immediately prior to Executive&#146;s termination
of employment. The Company will pay the premiums on Executive&#146;s behalf directly to the
insurer on a monthly basis for a period of eighteen (18)&nbsp;months, or if earlier, until the
date any of the following events occurs: (i)&nbsp;Executive obtains employment with another
entity under which Executive is offered and becomes eligible to receive health insurance
coverage as an employee; (ii)&nbsp;Executive breaches the terms of the Release; (iii)&nbsp;coverage
terminates under the terms of the Company&#146;s group health plan for any reason; or (iv)&nbsp;the
Company&#146;s group health plan in effect as of the Closing Date terminates. Thereafter, if
Executive is eligible and wishes to continue continuation coverage, and the maximum
applicable COBRA coverage period has not expired, Executive may continue coverage, but
Executive shall be solely responsible for payment of any required COBRA premium. Any
benefits provided under this <U>Section&nbsp;2(b)</U> to Executive or Executive&#146;s dependents
shall be modified to the extent benefits under the group health plan are modified for active
employees of the Company, and the Company reserves the right to amend, terminate or modify
the group health plan
</DIV>

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</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%">at any time. To the extent such benefits are otherwise taxable to Executive, such
benefits shall for purposes of Section&nbsp;409A of the Code, and the regulations and other
guidance issued thereunder, be provided as separate monthly in-kind payments of those
benefits, and to the extent those benefits are subject to and not otherwise excepted from
Section&nbsp;409A of the Code, the provision of the in-kind benefits during one calendar year
shall not affect the in-kind benefits to be provided in any other calendar year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that Executive receives any payments from the Company (including
pursuant to any stock option or equity awards) or its affiliates, under this Agreement or
otherwise, that are subject to tax under Section&nbsp;4999 of the Code, the Company shall pay to
Executive the Gross-Up Payment described in <U>Schedule&nbsp;A</U> hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything herein to the contrary, the payments and benefits provided
under this <U>Section&nbsp;2</U> are conditioned on Executive&#146;s execution of a release of claims
in the form provided by the Company (the &#147;<B><I>Release</I></B>&#148;), and in accordance with the terms of the
Release.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Definitions</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &#147;<B><I>Cause</I></B>&#148; means (i)&nbsp;the failure by Executive to substantially perform Executive&#146;s
duties with the Company that has not been cured within thirty (30)&nbsp;days after a written
demand for substantial performance is delivered to Executive by the Company; (ii)&nbsp;the
willful engaging by Executive in conduct, which is deemed by the Company to be materially
injurious to the Company, monetarily or otherwise; (iii)&nbsp;the appropriation (or attempted
appropriation) of a business opportunity of the Company, including attempting to secure or
securing any personal profit in connection with any transaction entered into on behalf of
any member of the Company; (iv)&nbsp;the misappropriation (or attempted misappropriation) of
funds or property belonging to the Company; or (v)&nbsp;Executive&#146;s conviction of, or entry by
Executive of a guilty or no contest plea to, a misdemeanor (involving moral turpitude or
fraud) or a felony, the equivalent thereof, or any other crime with respect to which
imprisonment is a possible punishment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &#147;<B><I>Change in Control</I></B>&#148; means a change in (i)&nbsp;the Company&#146;s ownership; (ii)&nbsp;the
effective control of the Company; or (iii)&nbsp;the ownership of a substantial portion of its
assets, as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Change in Ownership</U>. A change in ownership of the Company occurs
on the date that any Person, other than (1)&nbsp;the current stockholders of the Company
or their respective Affiliates as of the Effective Date, (2)&nbsp;the Company or any of
its subsidiaries; (3)&nbsp;a trustee or other fiduciary holding securities either on
behalf of a current stockholder or pursuant to an employee benefit plan (or related
trust) sponsored or maintained by the Company or any of its Affiliates; or (4)&nbsp;an
underwriter temporarily holding stock pursuant to an offering of such stock,
acquires ownership (either directly, or indirectly through application of the
attribution of stock ownership rules described in Treasury Regulation
&#167;1.409A-3(i)(5)(iii)) of the Company&#146;s stock that, together with stock held by such
Person, constitutes more than fifty percent (50%) of the total fair market value or
total
</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: 4%">voting power of the Company&#146;s stock. However, if any Person is considered to
own already more than fifty percent (50%) of the total fair market value or total
voting power of the Company&#146;s stock (either directly or indirectly through
application of the attribution of stock ownership rules described in Treasury
Regulation &#167;1.409A-3(i)(5)(iii)), the acquisition of additional stock by the same
Person is not considered to be a Change in Control;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>Change in Effective Control</U>. A change in the effective control of
the Company occurs on the date during any twelve (12)-month period when a majority
of members of the Board is replaced by directors whose appointment or election is
not endorsed by at least two-thirds (2/3) of the Board before the date of the
appointment or election; <U>provided</U>, <U>however</U>, that any such director
shall not be considered to be endorsed by the Board if his or her initial assumption
of office occurs as a result of an actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <U>Change in Ownership of Substantial Portion of Assets</U>. A change
in the ownership of a substantial portion of the Company&#146;s assets occurs on the date
that a Person acquires (or has acquired during the twelve (12)-month period ending
on the date of the most recent acquisition by such Person) total assets of the
Company (including the stock of its consolidated subsidiaries), that have a total
gross fair market value equal to at least eighty percent (80%) of the total gross
fair market value of all of the Company&#146;s assets (including the stock of its
consolidated subsidiaries) immediately before such acquisition or acquisitions.
However, there is no Change in Control when there is such a transfer to an entity
that is controlled by the current stockholders of the Company immediately after the
transfer, through a transfer to (1)&nbsp;a stockholder of the Company (immediately before
the asset transfer) in exchange for or with respect to the Company&#146;s stock; (2)&nbsp;an
entity, at least fifty percent (50%) of the total value or voting power of the stock
of which is owned, directly or indirectly, by the Company; (3)&nbsp;a Person that owns
directly or indirectly, at least fifty percent (50%) of the total value or voting
power of the Company&#146;s outstanding stock; or (4)&nbsp;an entity, at least fifty percent
(50%) of the total value or voting power of the stock of which is owned by a Person
that owns, directly or indirectly, at least fifty percent (50%) of the total value
or voting power of the Company&#146;s outstanding stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For purposes of this <U>Section&nbsp;3(b)</U>, the following terms shall have
the following definitions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &#147;<B><I>Person</I></B>&#148; shall have the meaning given in Section&nbsp;7701(a)(1) of the
Code. Person shall include more than one Person acting as a group as
defined by the Final Treasury Regulations issued under Section&nbsp;409A of the
Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &#147;<B><I>Affiliate</I></B>&#148; shall have the meaning set forth in Rule&nbsp;12b-2
promulgated under Section&nbsp;12 of the Securities Exchange Act of 1934, as
amended.
</DIV>

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</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%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &#147;<B><I>Closing Date</I></B>&#148; means the &#147;closing date&#148; as such term is defined in the definitive
agreement governing the event described in <U>Section&nbsp;3(b)</U> that constitutes a Change in
Control, or in the event there is no definitive agreement governing such event, the date
that such event constituting the Change in Control is effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &#147;<B><I>Code</I></B>&#148; means the Internal Revenue Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Governing Law</U>. This Agreement is made and entered into in the State of Texas, and
the laws of Texas shall govern its validity and interpretation in the performance by the parties of
their respective duties and obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Entire Agreement</U>. This Agreement constitutes the entire agreement between the
parties concerning the subject matter hereof, and there are no representations, warranties or
commitments, other than those in writing executed by all of the parties. This is an integrated
agreement. This agreement shall not constitute a contract of employment between the Company, on
the one hand, and Executive, on the other hand. Nothing herein contained shall be deemed to (a)
give Executive the right to be retained in the employ of the Company; (b)&nbsp;interfere with the right
of the Company to discharge or retire Executive at any time; (c)&nbsp;give to the Company the right to
require Executive to remain in its employ; or (d)&nbsp;interfere with Executive&#146;s right to terminate its
employment at any time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Specific Performance</U>. The parties acknowledge that remedies at law will be
inadequate remedies for breach of this Agreement and consequently agree that this Agreement shall
be enforceable by specific performance. The remedy of specific performance shall be cumulative of
all of the right and remedies at law or in equity of the parties under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Assistance in Litigation</U>. Executive shall make himself available, upon the request
of the Company, to testify or otherwise assist in litigation, arbitration, or other disputes
involving the Company, or any of its directors, officers, employees, subsidiaries, or parent
corporations, at no additional cost during the term of this Agreement and at any time following the
termination of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Notices</U>. Any notice or communication required or permitted to be given to the
parties shall be delivered personally or sent by United States registered or certified mail,
postage prepaid and return receipt requested, and addressed or delivered as follows, or to such
other address as the party addressed may be substituted by notice pursuant to this Section.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;Craftmade<BR>
&nbsp;&nbsp;&nbsp;&#091;Address&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;ATTENTION:&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>





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</DIV>

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



<DIV align="left" style="font-size: 10pt; margin-left: 4%; margin-top: 6pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Executive:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&#091;Name&#093;<BR>
&nbsp;&nbsp;&nbsp;&#091;Address&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U>Nondisclosure of Confidential Information</U>. Executive agrees that during the term
of this Agreement and thereafter, Executive will not disclose any information or data concerning
the business or customers of the Company that is disclosed to Executive or acquired by Executive in
confidence at any time during the period of his employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U>Binding Agreement</U>. This Agreement shall inure to the benefit of and be
enforceable by Executive&#146;s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devises and legatees. If Executive should die while any amounts
would still be payable to him hereunder if he had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this Agreement to his
devisee, legatee, or other designee, or, if there be no such designee, to his estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U>No Mitigation of Amounts Payable Hereunder</U>. Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by seeking other employment or
otherwise, nor shall the amount of any payment provided for in this Agreement be reduced by any
compensation earned by Executive as the result of employment by another employer after the date of
termination, or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U>At-Will Employment</U>. Nothing in this Agreement shall modify the employment at-will
relationship which exists between the Company and Executive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U>Captions</U>. The captions of this Agreement are inserted for convenience and are not
part of the Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U>Severability</U>. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any other
respect, such invalidity, illegality or unenforceability shall not affect any other provision of
this Agreement. This Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been a part of the Agreement and there shall be deemed substituted therefor
such other provision as will most nearly accomplish the intent of the parties to the extent
permitted by the applicable law. In case this Agreement, or any one or more of its provisions,
shall be held to be invalid, illegal or unenforceable within any governmental jurisdiction or
subdivision, then such provision shall be of no force or effect, but the remainder of this
Agreement shall be enforceable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U>Counterparts</U>. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which shall together constitute
one in the same Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U>Amendment</U>. Except as otherwise provided herein, this Agreement may not be amended
or modified at any time except by a written instrument approved by the Board, and executed by the
Company and Executive. Any attempted amendment or modification without
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such approval and execution shall be null and void ab initio and of no effect. Notwithstanding the
foregoing provisions of this <U>Section&nbsp;16</U>, the Board may change or modify this Agreement
without Executive&#146;s consent or signature if the Board determines, in its sole discretion, that such
change or modification is required for purposes of compliance with or exemption from the
requirements of Section&nbsp;409A of the Code.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 46%">Executive:&nbsp;
<DIV style="border-bottom: 1px solid #000000; MARGIN-LEFT: 9%; Font-Size: 1px; WIDTH: 69%" align="left">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 46%">Date:
<DIV style="border-bottom: 1px solid #000000; MARGIN-LEFT: 9%; Font-Size: 1px; WIDTH: 69%" align="left">&nbsp;</DIV>
</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 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">CRAFTMADE INTERNATIONAL, INC.<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">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Its:&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>    <TD>&nbsp;</TD></TR>
<TR>
    <TD align="left">&nbsp;</TD>

    <TD align="left" colspan="2">Date:&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

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</DIV>

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


<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>

</TABLE>

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Certain Supplemental Payments by the Company</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms not otherwise defined herein shall have the meanings set forth in the Change
in Control Agreement (the &#147;<B>Agreement</B>&#148;), of which this Schedule&nbsp;A is a part.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;If it shall be determined that any amount, right or benefit paid, distributed or treated as
paid or distributed by the Company or any of its affiliates to or for Executive&#146;s benefit (other
than any amounts payable pursuant to this Schedule&nbsp;A) (a &#147;<B>Payment</B>&#148;) would be subject to the excise
tax imposed by Section&nbsp;4999 of the Code, or any interest or penalties are incurred by Executive
with respect to such excise tax (such excise tax, together with any such interest and penalties,
collectively, the &#147;<B>Excise Tax</B>&#148;), then Executive shall be entitled to receive an additional payment
(a &#147;<B>Gross-Up Payment</B>&#148;) in an amount equal to the amount necessary such that after payment by
Executive of all federal, state and local taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and any interest and
penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;All determinations required to be made under this Schedule&nbsp;A, including whether and when a
Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such determination, shall be made by an independent public accounting firm
(the &#147;<B>Accounting Firm</B>&#148;). The Accounting Firm shall provide detailed supporting calculations to
both the Company and Executive within fifteen (15)&nbsp;business days following the receipt of notice
from Executive or the Company that there has been a Payment, or such earlier time as is requested
by the Company. All fees and expenses of the Accounting Firm shall be paid by the Company. Any
Gross-Up Payment, as determined pursuant to this Schedule&nbsp;A, shall be paid by the Company to
Executive (or to the Internal Revenue Service or other applicable taxing authority on Executive&#146;s
behalf) within five (5)&nbsp;days following the receipt of the Accounting Firm&#146;s determination. All
determinations made by the Accounting Firm shall be binding upon the Company and Executive;
<U>provided</U> that following any payment of a Gross-Up Payment to Executive (or to the Internal
Revenue Service or other applicable taxing authority on Executive&#146;s behalf), the Company may
require Executive to sue for a refund of all or any portion of the Excise Taxes paid on Executive&#146;s
behalf, in which event the provisions of paragraph (3)&nbsp;below shall apply. As a result of
uncertainty regarding the application of Section&nbsp;4999 of the Code hereunder, it is possible that
the Internal Revenue Service may assert that Excise Taxes are due that were not included in the
Accounting Firm&#146;s calculation of the Gross-Up Payments (an &#147;<B>Underpayment</B>&#148;). In the event that the
Company exhausts its remedies pursuant to this Schedule&nbsp;A and Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any additional Gross-Up Payments that are due as a result
thereof shall be promptly paid by the Company to Executive (or to the Internal Revenue Service or
other applicable taxing authority on Executive&#146;s behalf).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Executive shall notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of the Gross-Up
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment. Such notification shall be given as soon as practicable but no later than ten (10)
business days after Executive receives written notification of such claim and shall apprise the
Company of the nature of such claim and the date on which such claim is requested to be paid.
Executive shall not pay such claim prior to the expiration of the thirty (30)&nbsp;days period following
the date on which it gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due). If the Company notifies Executive in
writing prior to the expiration of such period that it desires to contest such claim, Executive
shall: (i)&nbsp;give the Company all information reasonably requested by the Company relating to such
claim; (ii)&nbsp;take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Company and
ceasing all efforts to contest such claim; (iii)&nbsp;cooperate with the Company in good faith in order
to effectively contest such claim; and (iv)&nbsp;permit the Company to participate in any proceeding
relating to such claim; <U>provided</U>, <U>however</U>, that the Company shall bear and pay
directly all reasonable costs and expenses (including additional interest and penalties) incurred
in connection with such contest and shall indemnify and hold Executive harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expense. Without limiting the
foregoing provisions of this Schedule&nbsp;A, the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect
of such claim and may, at its sole option, either direct Executive to pay the tax claimed and sue
for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as the Company shall determine and direct; <U>provided</U>,
<U>however</U>, that if the Company directs Executive to pay such claim and sue for a refund, the
Company shall, to the extent permitted by law, advance the amount of such payment to Executive, on
an interest-free basis, and shall indemnify and hold Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for Executive&#146;s taxable year with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company&#146;s control of the contest shall
be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and
Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;If, after Executive&#146;s receipt of an amount advanced by the Company pursuant to this
Schedule&nbsp;A, Executive becomes entitled to receive any refund with respect to such claim, Executive
shall promptly pay to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after Executive&#146;s receipt of an amount
advanced by the Company pursuant to this Schedule&nbsp;A, a determination is made that Executive shall
not be entitled to any refund with respect to such claim and the Company does not notify Executive
in writing of its intent to contest such denial of refund prior to the expiration of thirty (30)
days after the Company&#146;s receipt of notice of such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Notwithstanding anything to the contrary contained herein, in no event shall any payment be
made pursuant to this Schedule&nbsp;A after the end of Executive&#146;s taxable year next following
Executive&#146;s taxable year in which Executive remits any related taxes to the IRS.
</DIV>

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