EXHIBIT (4)(c)(4) MELLON BUSINESS CREDIT Mellon Bank Center 1735 Market Street February 6, 1996 6th Floor Philadelphia, PA 19101-7899 Mr. William C. Massie Vice President-Finance B.B. Walker Company 414 East Dixie Drive Asheboro, NC 27203 Dear Mr. Massie: As we have previously discussed, Mellon Bank has agreed to modify the financial covenants of B.B. Walker for the period ending October 31, 1995 and subsequent periods. These covenant changes are outlined on the attached term sheet along with various changes to the structure of the loan facility. The modifications were based on the Company's draft audited financial statements results for the fiscal year ended October 31, 1995 and the Company's projections for fiscal 1996. These are the only amendments to the Credit Agreement contemplated at this time. All the other terms and conditions of the Credit Agreement remain in full force and effect. The Amendment to the Credit Agreement formalizing these changes is now being prepared by Ben Howell of Reed, Smith, Shaw & McClay. Sincerely, ROGER D. ATTIX Roger D. Attix Vice President cc: Rogers Anderson Price Waterhouse TERM SHEET B.B. WALKER COMPANY Loan Restructure of February 1996 Original As Approved -------- ----------- Revolving Line $20,000,000 $16,000,000 Inventory Sublimit $9,000,000 May-Sept $8,000,000 Jan-Mar; Aug-Oct $8,000,000 Apr & Oct $7,000,000 Apr-July; Nov-Dec $7,000,000 Mar & Nov $300,000 Retail $6,500,000 Dec-Feb $300,000 Retail Seasonal Overadvances $750,000 March-Nov $500,000 Oct-March Stockholder Notes $750,000 Minimum $1,100,000 Minimum (If level falls below $1,200,000 - seasonal overadvance becomes unavailable) Pricing-Revolver Prime + .50% Prime + 1.00% LIBOR Option Yes No Performance Pricing Yes Tied to reaching original covenants as projected in August, 1995. Collateral Mgt. Fee $16,000 $36,000 Overadvance Fee $15,000 $10,000 Restructure Fee $N/A $25,000 All other terms and conditions to remain unchanged.