EXHIBIT 10.11

(LOGO)

ARBITRATION AND NOTICE OF FINAL AGREEMENT

As of the effective date of this Notice, Borrower and THE FROST NATIONAL BANK, a national banking association (“ Lender ”) have consummated a transaction pursuant to which Lender has agreed to renew and extend an existing loan to Borrower, in an aggregate amount up to $23,000,000.00 minus the outstanding principal balance of a $2,000,000.00 Revolving Promissory Note, dated June 14, 2004, executed by Design Trends, LLC, a Delaware limited liability company (collectively, whether one or more, the “ Loan ”).

ARBITRATION

Upon written request of either Lender or Borrower, any controversy or claim between or among the parties hereto including but not limited to those arising out of or relating to the Loan, any of the loan documents or any related agreements or instruments executed in connection with the Loan (the “ Loan Documents ”), including any claim based on or arising from an alleged tort, shall be determined by binding arbitration in accordance with the Federal Arbitration Act (or if not applicable, the applicable state law), the Commercial Arbitration Rules of the American Arbitration Association, and the “Special Rules” set forth below unless both Lender and Borrower, in their respective sole discretion, agree in writing to mediate the dispute prior to submitting to binding arbitration. In the event of any inconsistency, the Special Rules shall control. Judgment upon any arbitration award may be entered in any court having jurisdiction. Any party to this Agreement may bring an action, including a summary or expedited proceeding, to compel arbitration of any controversy or claim t