Exhibit (4)(c)(12) Mellon Business Credit - ---------------------- December 30, 1998 Mr. Kent Anderson Chairman of the Board B.B. Walker Company 414 E. Dixie Drive Asheboro, NC 27203 Dear Kent: As you have requested, Mellon Business Credit has approved a modification in the method of calculation of your financial covenants. With the change in the date of expiration of the term Facility to June 30, 1999, all of that debt must be classified as short term for accounting purposes. By this letter, Mellon approves that that portion of the Mellon Term Facility that would otherwise have been due greater than one year hence, had the expiration of the Term Facility not been modified, shall be permitted to be classified as long term debt for covenant calculation purposes. This modification will apply only through June 30, 1999. Failure by B.B. Walker Company, Inc. to sell their Asheboro, NC facility and thus pay off this term debt or seek an alternative solution acceptable to Mellon will constitute an event of default. Sincerely, ROGER D. ATTIX - -------------- Roger D. Attix Vice President Mellon Business Credit Mellon Bank Center 1735 Market Street Philadelphia, PA 19101-7899 RDA:mjs ACKNOWLEDGED: KENT T. ANDERSON - ---------------- Kent T. Anderson Chairman of the Board