Document:

<PAGE>   1

                                                                   Exhibit 10.4

                              EMPLOYMENT AGREEMENT
                                      **

         This agreement made and entered into this 15th day of July, 1998,
between BIG LAKE NATIONAL BANK (hereinafter referred to as "the Bank") and BIG
LAKE FINANCIAL CORPORATION (hereinafter referred to as "the Holding Company")
and JOE G. MULLINS, (hereinafter referred to as "the Employee");

         WHEREAS, the bank is a national bank, regulated by the Office of the
Comptroller of the Currency, insured by the Federal Deposit Insurance
Corporation, and located in Okeechobee, Florida; and

         WHEREAS, the Holding Company is a Florida corporation which owns the
Bank; and

         WHEREAS, the Bank and the Holding Company want to employ the Employee
as President and Chief Executive Officer of the Bank; and

         WHEREAS, the parties desire to enter into this Agreement setting forth
the terms and conditions of the employment relationship of the Bank and the
Holding Company and the Employee.

         NOW, THEREFORE, it is agreed as follows:

1.       RELATIONSHIP ESTABLISHED AND DUTIES

         A. The Bank and the Holding Company hereby will employ the Employee as
President and Chief Executive Officer, to hold the title of President and Chief
Executive Officer, and to perform such services and duties as the Board of
Directors of the Bank and the Holding Company may, from time to time, designate
during the term hereof. Subject to the terms and conditions hereof, Employee
will perform such duties and exercise such authority as are customarily
performed and exercised by persons holding such office, subject to the general
direction of the Board of Directors of the Bank and the Holding Company,
exercised in good faith in accordance with standards of reasonable business
judgement. Without limiting the generality of the foregoing, to the extent
permitted by law and the governing instruments of the Bank, the Employee shall
have the ultimate responsibility and authority for the hiring and firing of any
and all employees and/or officers of the Bank.

         B. Employee shall serve on the Board of Directors of Big Lake National
Bank ("The Bank") and Big Lake Financial Corporation ("the Holding Company").

         C. Employee accepts such employment and shall devote his full time,
attention, and efforts to the diligent performance of his duties herein
specified and as an officer and director of the Bank and Holding Company and
will not accept employment with any other individual, corporation, partnership,
governmental authority, or any other entity, or engage in any other venture for
profit which the Bank and/or the Holding Company may consider to be in conflict

                                      -1-
<PAGE>   2

with his or its best interest or to be in competition with the Bank's or the
Holding Company's business, or which may interfere in any way with the
Employee's performance of his duties hereunder. Any exception to this must be
upon the prior written consent of the Board of Directors of the Bank and the
Company (hereinafter referred to as "the Board").

H.       TERMS OF EMPLOYMENT

         A. The initial term of employment under this Agreement shall commence
upon execution of this Agreement by all parties and shall continue until
December 31, 1999 unless such is terminated pursuant to the terms hereof or by
the first to occur of the conditions to be stated hereinafter. This Agreement
will be automatically extended each year after the initial term unless either
party give ninety (90) days contrary written notice to the other. The term
previously stated notwithstanding this contract shall be terminated by the
earlier to occur of any of the following:

         1.       Termination on Death or Disability: The employment period
                  shall automatically terminate upon the death of the Employee
                  or his disability as defined in this contract.

         2.       Benefits Payable to Employee Upon Disability: In the event of
                  the Employee's disability during the employment period, the
                  Bank shall have the obligation to provide the Employee, by
                  disability insurance or other mutually agreed-upon plan,
                  sixty-percent (60%) of the aggregate amount of the Base
                  Salary as in effect at the time such disability commences.
                  For purposes of this Agreement, "disability" shall mean the
                  employee's substantial inability, by reason of physical or
                  mental incapacity, to perform his services hereunder, which
                  shall continue for a period of six (6) months.

         3.       Termination for Cause: The employment period may be
                  terminated by the Bank for "cause" at any time during the
                  employment period upon fifteen (15) days' prior written
                  notice to the Employee, which notice shall state the facts
                  constituting such "cause", provided, however, the employee
                  shall have fifteen (15) days after receipt by him of such
                  notice to cure such state of affairs or facts constituting
                  "cause". Following notice by the Bank, the Employee may be
                  placed on paid administrative leave pending resolution as
                  described in this paragraph. For purposes of this section,
                  the term "cause" shall be limited to:

                  (a).  Gross neglect or gross misconduct by the Employee in
                        carrying out his duties resulting in material harm to
                        the Bank or the Holding Company;

                  (b).  The failure by the Employee to substantially perform
                        his

                                      -2-
<PAGE>   3

                        duties hereunder (other than any such failure resulting
                        from the Employee's incapacity physical or mental
                        illness), after a demand for substantial performance is
                        delivered to the Employee by the Board which
                        specifically identifies the manner in which the Board
                        believes that the Employee has not substantially
                        performed his duties; or

                  (c).  The order of a federal bank regulatory agency or a
                        court of competent jurisdiction requiring the
                        Employee's termination; or

                  (d).  Conviction of a felony or fraud on the part of the
                        Employee, or;

                  (e).  Conduct of such moral turpitude that the Employee's
                        reputation is impugned to such extent as to render him
                        ineffective in his position. The Employee may be
                        temporarily suspended with full pay, from duty if there
                        is substantial evidence of probable "cause" as
                        described herein, until "cause" is either proved or
                        cured; if cured, full reinstatement will immediately be
                        effected.

         B. Termination of Employee's employment shall constitute a tender by
Employee of his resignation as an officer and director of the Bank and the
Holding Company. In the event the Bank terminates the Employee for other than
"cause", the Employee is entitled to severance pay equal to two (2) weeks'
salary at the rate in effect on the date of termination for each year of
service commencing September 16, 1988, or portion thereof, not to exceed an
amount equal to 12 months salary.

III.     COMPENSATION

         For all services which Employee may render to the Bank during the term
hereof, the Bank shall pay to employee, subject to such deductions as may be
required by law:

         A. Base Salary. An annual salary of $127,000.00 until January 1, 1999.
Starting January, 1999 and in each January thereafter, annual increase reviews
will be done for a January 1 effective increase date during the term of this
Agreement so that for each calendar year starting January 1, 1999, the
Employee's salary increase will take effect. The Board has sole discretion as
to the amount of the Employee's compensation.

         B. Payment of Base Salary. The Bank shall pay the Base Salary due to
the Employee in accordance with the policy of the Bank as in effect from time
to time for the payment of salary to senior executive personnel.

                                      -3-
<PAGE>   4

         C. Stock Option Plan. (ROAA in this section refers to Big Lake
National Bank only). Each year, a Stock Option ranging from 1,000 shares to
7,000 shares will be awarded in January of each year starting with January 1,
1999, based upon mutually agreed upon goals such as the Return on Average
Assets achieved after the application of taxes based upon the following
formula. Option will be issued at Book Value as of the immediate preceding
December 31 to be exercised within five (5) years. In the event of the
Employee's death or disability, his estate or representative can exercise
options during the six-month period following the Employee's death or
disability.

         a.    ROAA greater than 1.0% but less than 1.10%     Shares     1,000

         b.    ROAA greater than 1.10% but less than 1.20%    Shares     2,000

         c.    ROAA equal to 1.20% but less than 1.30%        Shares     3,000

         d.    ROAA equal to 1.30% but less than 1.40%        Shares     4,000

         e.    ROAA equal to 1.40% but less than 1.60%        Shares     5,000

         f.    ROAA equal to 1.60% but less than 1.75%        Shares     6,000

         g.    ROAA equal to 1.75% but less than 2.00%        Shares     7,000

         D. The Board of Directors may, at its sole discretion, reduce the
Stock Options to be issued under the preceding section in the event the Bank
does not achieve the following annual (JANUARY 1 - DECEMBER 31) growth targets
with respect to average Total Loans and Total Deposits.

                  Average Total Loans                 10%

                  Average Total Deposits              10%

IV.      DIRECTOR'S FEES

         In addition to any other benefits or compensation provided for
hereunder, in return for his services as a member of the Board, the Bank and
Holding Company shall pay the Employee such Director's fees as it customarily
pays to corporate directors.

V.       OTHER BENEFITS

         A. The Employee shall be entitled to participate in any plan of the
Bank relating to stock options, stock purchased, profit sharing, thrift, group
life insurance, medical coverage, education, or other retirement or employee
benefits that the Bank may adopt for the benefit of

                                      -4-
<PAGE>   5

its employees.

         B. The Employee shall be eligible to participate in any other benefits
which may be or become applicable to the Bank's executive employees, shall be
furnished a vehicle (including all expenses of maintenance), a reasonable
expense account, the payment of reasonable expenses for attending annual and
periodic meetings of trade associations, and any other benefits which are
commensurate with the responsibilities and functions to be performed by the
Employee hereunder.

         C. At such reasonable times as the Board of Directors shall in its
discretion permit, the Employee shall be entitled, without loss of pay, to
absent himself voluntarily from the performance of his employment under this
Agreement, all such voluntary absences to count as vacation time, provided
that:

         1.       The Employee shall be entitled to an annual vacation of four
                  (4) weeks per year. The employee shall schedule at least two
                  (2) consecutive weeks of vacation each year.

         2.       The timing of vacations shall be scheduled in a reasonable
                  manner by the Employee. The Employee shall not be entitled to
                  receive any additional compensation from the Bank on account
                  of his failure to take a vacation; nor shall he be entitled
                  to accumulate unused vacation time from one calendar year to
                  the next.

VI. CHANGE OF OWNERSHIP

         A. For purposes of this Agreement, a Change in Ownership shall be
deemed to have occurred if any person or entity becomes the "beneficial owner"
(as defined in Rule 13d-3 promulgated pursuant to the Securities Exchange Act
of 1934), directly or indirectly, of 505 or more of the common stock of Big
Lake Financial Corporation or Big Lake National Bank after the date of this
agreement.

         B. In the event a Change in Ownership occurs, Stock Options as
described in Section III-C, shall be declared accomplished and earned based
upon performance up to date of the Change in Ownership.

         C. In the event a Change in Ownership occurs, then the Employee shall
have the right within 365 days following such Change in Ownership, to resign
and elect to receive the following severance package upon the delivery of
written notice (the "Notice of Election") by the Employee to the Bank and the
Holding Company.

         1.       A lump sum payment equal to one year's salary at the rate in
                  effect at the time the Change in Ownership occurs. Said
                  amount to be paid to the

                                     - 5 -
<PAGE>   6

                  Employee in within thirty (30) business days following the
                  delivery by the Employee to the Bank and the Holding Company
                  of the Notice of Election.

         2.       Title to the automobile provided by the Bank to the
                  Employee, within thirty (30) business days following the
                  delivery by the Employee to the Bank of the Notice of
                  Election such title to be delivered by the Bank to the
                  Employee free and clear of all liens and encumbrances.

         3.       Provided Employee is insurable at standard rates, a paid-up
                  life insurance policy with a face amount equal to one year's
                  salary in effect on the date of the Notice of Election
                  insuring the life of the Employee (and payable to such
                  beneficiaries of as the Employee shall designate from time to
                  time). Said life insurance policy to be delivered by the Bank
                  to the Employee within thirty (30) business days following
                  the delivery by the Employee to the Bank of the Notice of
                  Election.

VII.     EFFECT OF TERMINATION OF EMPLOYMENT

         A. The parties intend that the Employee shall have the right to issue
the Notice of Election contemplated by this Agreement within 365 days following
a Change in Ownership. Accordingly, if the employment of the Employee is
terminated by either the Bank or the Holding Company, following a Change in
Ownership, then this termination of employment shall not affect the right of
the Employee to elect within the 365-day period following a Change in Ownership
to receive the benefits set forth in Section VI of this Agreement. Further, the
Employee shall be entitled to resign and elect the benefits set forth in
Section VI of this Agreement if any of the following occurs within 12 months
preceding a Change in Ownership (i) the Employee's employment is terminated by
the Bank or the Holding Company for any reason other than for "cause", or
(ii) the Employee's duties with Big Lake or the Bank are significantly reduced,
or (iii) if the Employee's title is changed to one other than President and
Chief Executive Officer. In this event, the 12-month period contemplated by
Section VI for the measurement of the Employee's salary shall be deemed to be
the 12-month period prior to the termination of employment or reduction in
responsibility or title of Employee, as the case may be, rather than the
12-month period prior to the Change in Ownership.

         B. In no event shall the severance paid under Section VI be cumulative
with the severance provided for in Section II-A. An election under Section VI
shall be deemed to be a waiver of severance under Section II-A of this
agreement. Should Section II-A severance have been paid prior to an election
under this Section, such payment made shall be deducted from the Section VI
payments due.

VIII.    POST TERMINATION COVENANTS

         A. If, during the term hereof, Employee shall cease employment
hereunder by

                                     - 6 -
<PAGE>   7

Employee' resignation (except following a Change in Ownership) or termination
for cause, then Employee agrees that for two (2) years following such
termination he will not be employed in the banking business in Okeechobee,
Florida or Okeechobee County, Florida and will not do the following during such
two-year period, without the prior written consent of the Bank and the Holding
Company.

         1.       furnish to anyone the name of, or any list or lists of
                  customers of the Bank or utilize such list or information
                  himself for banking purposes; or

         2.       furnish, use, or divulge to anyone any information acquired
                  by him for the Bank relating to the Bank's methods of doing
                  business or the Holding Company's method of doing business;
                  or

         3.       contact directly or indirectly any customer of the Bank for
                  banking solicitation purposes; or

         4.       hire for any other Bank or employer (including himself) any
                  employee of the Bank or Holding Company, or directly or
                  indirectly cause such employee to leave his or her employment
                  to work for another.

         B. It is understood and agreed by the parties hereto that the
provisions of this section are independent of each other, and the invalidity of
any such provision or portion thereof shall not affect the validity or
enforceability of any other provisions of this agreement.

IX.      WAIVER OF PROVISIONS

         Failure of any of the parties to insist, in one or more instances, on
performance by the other in strict accordance with the terms and conditions of
this agreement shall not be deemed a waiver or relinquishment of any right
granted hereunder of the future performance of any such term or condition of
any other term or condition of this agreement, unless such waiver is contained
in a writing signed by or on behalf of all the parties.

X.       GOVERNING LAW

         This agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Florida. This Agreement is being
entered into in Okeechobee County, Florida, which shall be the venue of any
action brought pursuant to the terms of this Agreement.

XI.      SEVERABILITY

         If, for any reason, any provision of this Agreement shall be held by a
court of competent jurisdiction to be void or unenforceable, the same shall not
affect the remaining provisions thereof.

                                     - 7 -
<PAGE>   8

XII.     MODIFICATION AND AMENDMENT

         This Agreement contains the sole and entire agreement among the
parties hereto and supersedes all prior discussions and agreements among the
parties, and any such prior agreements shall, from and after the date hereof,
be null and void. This Agreement shall not be modified or amended except by an
instrument in writing signed by on behalf of the parties hereto.

XIII.    COUNTERPARTS AND HEADINGS

         This agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument. The headings set out herein are for
convenience of reference and shall not be deemed a part of this agreement.

XIV.     CONTRACT NONASSIGNABLE

         This agreement may not be assigned or transferred by any party hereto,
in whole or in part, without prior written consent of the other. This Agreement
shall be binding upon the successors of the parties hereto.

                                     - 8 -
<PAGE>   9

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the year and date first above written.

Employee:

/s/ Eileen P. Casian                             /s/ Joe G. Mullins
----------------------------------               ------------------------------
Eileen P. Casian                                 JOE G. MULLINS
Witness as to Employee

                                                 Date: June 2, 1999
----------------------------------                     ------------------------
Witness as to Employee

BANK AND HOLDING COMPANY

/s/ Eileen P. Casian                             BY: Edwin E. Walpole III
----------------------------------               ------------------------------
Eileen P. Casian                                 Chairman of the Board of
Witness as to Bank/Holding Company               Big Lake Financial Corporation
                                                 And Big Lake National Bank

/s/ [ILLEGIBLE]
----------------------------------
Witness as to Bank/Holding Company

                                     - 9 -<PAGE>   1
                                                                    Exhibit 10.1

                 AMENDMENT NO. 1 TO REVOLVING CREDIT AGREEMENT

         THIS AMENDMENT NO. 1 TO REVOLVING CREDIT AGREEMENT (this "Amendment")
is dated effective as of February 23, 2000, among CROWN CRAFTS, INC. (the
"Borrower") and BANK OF AMERICA, N.A. (the "Lender");

                              W I T N E S S E T H:

         WHEREAS, the Borrower and the Lender executed and delivered that
certain Revolving Credit Agreement, dated as of August 9, 1999 (the "Credit
Agreement");

         WHEREAS, the Borrower has requested and the Lender has agreed to
certain amendments to certain provisions in the Credit Agreement, subject to the
terms and conditions hereof;

         NOW, THEREFORE, for and in consideration of the above premises and
other good and valuable consideration, the receipt and sufficiency of which
hereby is acknowledged by the parties hereto, the Borrower and the Lender hereby
covenant and agree as follows:

         1.       Definitions. Unless otherwise specifically defined herein,
each term used herein which is defined in the Credit Agreement shall have the
meaning assigned to such term in the Credit Agreement. Each reference to
"hereof", "hereunder", "herein" and "hereby" and each other similar reference
and each reference to "this Agreement" and each other similar reference
contained in the Credit Agreement shall from and after the date hereof refer to
the Credit Agreement as amended hereby.

         2.       Amendments to Credit Agreement. (a) Each of the following
definitions is hereby added to Section 1.1 of the Credit Agreement in
alphabetical order as follows:

                  "Additional Bridge Loan Conditions" means the following
         initial condition to the making of the CIT Bridge Loan and the
         effectiveness of treatment of CIT as a Secured Party under the Amended
         and Restated Intercreditor Agreement with respect to the CIT Bridge
         Loan, and the ongoing conditions for advances under the CIT Bridge
         Loan, which shall be set forth in and required by the Amended and
         Restated Intercreditor Agreement:

                           (a) the initial condition shall be the execution and
                  delivery of such amendments to the Security Documents as may
                  be necessary or desirable in connection therewith; and

                           (b) the ongoing conditions shall be that the Borrower
                  shall be required to obtain such Factor Advances from a
                  Permitted Factor as may be available from time to time
                  (without violating the provisions of Section 8.15 hereof)
                  before

<PAGE>   2

                  being entitled to request any advances under the CIT Bridge
                  Loan, and (ii) each advance under the CIT Bridge Loan shall be
                  requested through the Collateral Agent (which request shall
                  include a certification that no Factor Advances are available
                  from a Permitted Factor without violating the provisions of
                  Section 8.15 hereof for any amounts so requested to be
                  advanced and shall be accompanied by an update of the
                  Borrowing Base Certificate as required by Section 7.1(g), and
                  such advance shall be available to the Borrower only if the
                  Collateral Agent determines that, after giving effect to such
                  advance, the aggregate amount of Senior Debt outstanding would
                  not exceed the Borrowing Base, and so notifies CIT and the
                  Borrower.

                  "Amended and Restated Intercreditor Agreement" means an
         amendment and restatement of the Intercreditor Agreement, in form and
         substance satisfactory to the Lender, which will contain, among other
         things: (i) the addition of CIT as a Secured Party thereunder with
         respect to the CIT Bridge Loan, subject to the Additional Bridge Loan
         Conditions; (ii) provisions pertaining to the application of proceeds
         of the Transaction (including distribution with respect to the CIT
         Bridge Loan prior to distributions to the other Secured Parties); (iii)
         provisions pertaining to the application of proceeds of any issuance of
         debt, equity or other capital (including distribution with respect to
         the CIT Bridge Loan prior to distributions to the other Secured
         Parties); (iv) provisions pertaining to a "true up" of outstanding
         claims of the Secured Parties (other than CIT) in the event of receipt
         of a "Default Notice", as defined therein; and (v) such other matters
         as the Secured Parties shall deem appropriate.

                  "CIT" means The CIT Group/Commercial Services, Inc.

                  "CIT Bridge Loan" means a loan or loans in the aggregate
         amount of up to $10,000,000 to be made to the Borrower by CIT after the
         First Amendment Effective Date, subject to the satisfaction of the CIT
         Bridge Loan Conditions.

                  "CIT Bridge Loan Conditions" means (i) the execution and
         delivery by the Borrower, the Collateral Agent and the Secured Parties
         (including CIT with respect to the CIT Bridge Loan) of the Amended and
         Restated Intercreditor Agreement; and (ii) the Additional Bridge Loan
         Conditions.

                  "Transaction" means the transaction conforming to the terms of
         that certain letter agreement dated as of February 23, 2000 among the
         Secured Parties and the Borrower.

         (b)      Each of the following definitions contained in Section 1.1 of
the Credit Agreement is amended and restated in its entirety in alphabetical
order as follows:

                                       2
<PAGE>   3

                  "Applicable Interest Addition" means (i) for each Base Rate
         Loan which is not an Overadvance Loan, 1.00%, and (ii) for each Base
         Rate Loan which is also an Overadvance Loan, 2.00%; provided, however,
         that if, for any period set forth in clauses (i) through (v) of the
         definition of Overadvance Amount, the Secured Parties agree to any
         Overadvance Loan in an amount in excess of the amount set forth in such
         definition for such period, the interest rate for the amount of such
         excess shall be such higher rate as the parties may agree upon. The
         increased amount of interest on any Overadvance Loans shall accrue from
         the effective date of each Borrowing Base Certificate and shall be
         based upon the amount of Overadvance Loans outstanding on such
         effective date as calculated from the Borrowing Base reported in such
         Borrowing Base Certificate.

                  "Bank of America" means Bank of America and its successors and
         assigns under the Bank of America Credit Agreement.

                  "Borrowing Base" means, as determined by the most recent
         Borrowing Base Certificate, or, in the event such Borrowing Base
         Certificate is not timely delivered, based upon the Lender's good faith
         estimate thereof for such period to be reported on the date such
         Borrowing Base Certificate was due, an amount equal to:

                           (a) all Net Receivables multiplied by 85%, less the
                  amount of all Factor Advances which have been received from
                  the applicable Permitted Factor; plus

                           (b) the lesser of the book value (net of all
                  reserves) or market value of all Inventory multiplied by 50%;
                  plus

                           (c) the Applicable Property Value multiplied by
                  80%; plus

                           (d) the Overadvance Amount.

                  "First Amendment Effective Date" means February 23, 2000.

                  "Overadvance Amount" means, for the purposes of each
         calculation of the Borrowing Base, an amount equal to: (i) for the
         period from the First Amendment Effective Date to February 25, 2000,
         $25,000,000; (ii) for the period from February 26, 2000 to March 10,
         2000, $26,000,000; (iii) for the period from March 11, 2000 to March
         17, 2000, $25,000,000; (iv) for the period from March 18, 2000 to March
         24, 2000, $24,000,000; and (v) from and after March 25, 2000,
         $23,000,000; provided, however, during any of the foregoing periods,
         the Overadvance Amount may be such higher amount, not to exceed
         $28,000,000, as all of the Secured Parties may agree upon in their sole
         and absolute discretion.

                                       3
<PAGE>   4

                  "Overadvance Loan" means, as determined by the most recent
         Borrowing Base Certificate, that portion of the Revolving Loans equal
         to (x) all Obligations divided by total Senior Debt outstanding,
         multiplied by (y) the amount of total Senior Debt outstanding in excess
         of (i) the Borrowing Base minus (ii) the Overadvance Amount.

                  "Prudential" means The Prudential Insurance Company of America
         and its successors and assigns under the Prudential Note Agreement.

                  "Revolving B Credit Termination Date" means (i) April 3, 2000
         or (ii) such earlier date of termination of Lender's obligations
         pursuant to Section 9.1 upon the occurrence of an Event of Default, or
         (iii) such date as the Borrower may permanently terminate the Revolving
         B Credit Facility by payment in full of all Revolving B Credit
         outstanding and cancellation of the Revolving B Credit Commitment
         pursuant to Section 2.3 hereof.

                  "Senior Debt" means (a) all Indebtedness of the Borrower and
         its Subsidiaries owing to the Secured Parties pursuant to the Senior
         Debt Documents and (ii) upon satisfaction of and subject to the CIT
         Bridge Loan Conditions, all Indebtedness of the Borrower and its
         Subsidiaries owing to CIT pursuant to the financing or credit agreement
         governing the CIT Bridge Loan.

                  "Senior Debt Documents" means, collectively, (i) this
         Agreement, the Bank of America Credit Agreement and the Prudential Note
         Agreement, together with all material related documents executed in
         connection with the transactions contemplated thereby and (ii) upon
         satisfaction of and subject to the CIT Bridge Loan Conditions, the
         financing or credit agreement governing the CIT Bridge Loan, and all
         material related documents executed in connection with the transactions
         contemplated thereby; provided, that the reference to Senior Debt
         Documents contained in clause (xiv) of Section 5.1 shall mean only the
         documents described in clause (i) of this definition.

                  "Secured Parties" means, collectively, the Lender, Bank of
         America and Prudential, and from and after satisfaction of the CIT
         Bridge Loan Conditions, shall also mean and include CIT, with respect
         to the CIT Bridge Loan.

         (c)      Section 3.1 is amended and restated in its entirety as
         follows:

                  3.1      Interest Rate. From and after the First Amendment
         Effective Date all new Loans shall be made as Base Rate Loans; no
         Eurodollar Rate Loans may be elected. Eurodollar Rate Loans in effect
         on the First Amendment Effective Date shall continue as such until the
         end of the applicable Interest Period for such Eurodollar Rate Loans,
         at which time they shall be Converted to Base Rate Loans, and may not
         be Continued as Eurodollar Rate Loans, and all references in and
         provisions of this Agreement or any

                                       4
<PAGE>   5

         Exhibits hereto to a selection by the Borrower, of a Eurodollar Rate
         shall be ignored and shall have no force or effect on or after, the
         First Amendment Effective Date.

         (d)      Section 3.2 is amended and restated in its entirety as
follows:

                  3.2      Discontinuance of Conversion and Continuation
         Elections. From and after the First Amendment Effective Date, the
         Borrower shall have no option to Convert a Base Rate Loan to a
         Eurodollar Rate Loan or to Continue a Eurodollar Rate Loan as a
         Eurodollar Rate Loan, and all references in and provisions of this
         Agreement or any Exhibits hereto to such option, or to any Conversion
         or Continuation, shall be ignored and shall have no force or effect as
         to any Loans in existence on or made after the First Amendment
         Effective Date.

         (e)      Section 3.3 is amended and restated in its entirety as
follows:

                  3.3      Payment of Interest . The Borrower shall pay interest
         on the outstanding and unpaid principal amount of each Revolving Credit
         Loan, commencing on the first date of such Loan until such Loan shall
         be repaid, at the applicable Base Rate or, with respect to Eurodollar
         Rate Loans in effect on the First Amendment Effective Date, at such
         Eurodollar Rate. Interest on Eurodollar Loans in effect on the First
         Amendment Effective Date shall be paid on the earlier of (a) monthly in
         arrears on the last Business Day of each month, commencing February 29,
         2000, until the Revolving A Credit Termination Date or the Revolving B
         Credit Termination Date, as applicable, at which date the entire
         principal amount of and all accrued interest on such Loans shall be
         paid in full, and (b) upon payment in full of the related Loan;
         provided, however, that if any Event of Default shall occur and be
         continuing, all amounts outstanding hereunder shall bear interest
         thereafter until paid in full at the Default Rate.

         (f)      Section 7.1 hereby is amended by adding a new paragraph (g)
thereto, as follows:

                           (g) Updates of Borrowing Base Certificates. On each
                  Business Day, an uncertified, good faith estimated updates of
                  most recently furnished complete Borrowing Base Certificate as
                  to the information under the heading "Accounts Receivable"
                  pertaining to "Factored Accounts" and "Factor Advances"; and
                  the information under the heading "Senior Debt".

         (g)      Section 8.1(b) is amended and restated in its entirety as
follows:

                  (b)      Consolidated EBITDA. Permit Consolidated EBITDA as of
         the end of any fiscal month for any Twelve Month Period ending on or
         about the dates indicated below to be less than the amount set forth
         below opposite such date:

                                       5
<PAGE>   6
<TABLE>
<CAPTION>
                                                                   Minimum
                                                                Consolidated
                Twelve Month Period Ending Date                    EBITDA
                -------------------------------                 ------------
                <S>                                             <C>
                  December 26, 1999                             $14,500,000
                  January 30, 2000                              $10,000,000
                  February 27, 2000                             $ 8,500,000
                  April 2, 2000                                 $ 7,500,000
</TABLE>

         (h)      Section 8.1(c) is amended and restated in its entirety as
follows:

                  (c)      Consolidated Fixed Charge Coverage Ratio. Permit at
         any time the Consolidated Fixed Charge Ratio of the Borrower to be less
         than 0.00 to 1.00.

                                       6

<PAGE>   7

         (i)      Section 8.7 is amended and restated in its entirety as
         follows:

                  8.7      Restricted Payments . Make any Restricted Payments
         (including, without limitation, any cash dividends or other
         distributions or settlement payments with respect to any class of stock
         of the Borrower or any of its Subsidiaries) or apply or set apart any
         of their assets therefor or agree to do any of the foregoing in any
         Fiscal Year, and the provisions of that certain letter agreement dated
         August 6, 1999 among the Borrower, the Lender and Bank of America
         hereby are rescinded, and such letter agreement hereby is terminated.

                 (j)      Section 8.15 is amended and restated in its entirety
         as follows:

                  8.15     Factor Advances. Permit to exist any Factor Advances,
         other than Factor Advances from a Permitted Factor, in an aggregate
         amount exceeding $25,000,000 at any time.

                  (k)      Effective upon satisfaction of the CIT Bridge Loan
         Conditions, Exhibit J to the Credit Agreement (the form of Borrowing
         Base Certificate) is amended by adding under the heading "Senior Debt"
         and after the line item for Wachovia debt, an additional line item for
         CIT debt under the CIT Bridge Loan.

                  3.       Consent to CIT Bridge Loan. The Lender hereby
consents to the CIT Bridge Loan, subject to satisfaction of the CIT Bridge Loan
Conditions.

                  4.       Restatement of Representations and Warranties. The
Borrower hereby restates and renews each and every representation and warranty
heretofore made by it in the Credit Agreement (as amended and modified hereby)
and the other Loan Documents as fully as if made on the date hereof and with
specific reference to this Amendment and all other loan documents executed
and/or delivered in connection herewith.

                  5.       Effect of Amendment. Except as set forth expressly
hereinabove, all terms of the Credit Agreement and the other Loan Documents
shall be and remain in full force and effect, and shall constitute the legal,
valid, binding and enforceable obligations of the Borrower. The agreements
contained herein shall be deemed to have prospective application only, unless
otherwise specifically stated herein.

                  6.       Ratification. The Borrower hereby restates, ratifies
and reaffirms each and every term, covenant and condition set forth in the
Credit Agreement and the other Loan Documents effective as of the date hereof
and agrees that this Amendment is one of the Loan Documents.

                  7.       Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and

                                       7
<PAGE>   8

delivered shall be deemed to be an original and all of which counterparts, taken
together, shall constitute but one and the same instrument.

                  8.       Section References. Section titles and references
used in this Amendment shall be without substantive meaning or content of any
kind whatsoever and are not a part of the agreements among the parties hereto
evidenced hereby.

                  9.       No Default or Claims. To induce the Lender to enter
into this Amendment and to continue to make advances pursuant to the Credit
Agreement, the Borrower hereby acknowledges and agrees that, as of the date
hereof, and after giving effect to the terms hereof, (i) no Default or Event of
Default exists, (ii) no right of offset, recoupment, defense, counterclaim,
claim or objection exists in favor of the Borrower arising out of or with
respect to any of the Loans or other obligations of the Borrower owed to the
Lenders under the Credit Agreement, and (iii) the Bank has acted in good faith
and has conducted its relationships with the Borrower in a commercially
reasonable manner in connection with the negotiations, execution and delivery of
this Amendment and in all respects in connection with the Credit Agreement, the
Borrower hereby waiving and releasing any such claims to the contrary that may
exist as of the date of this Amendment.

                  10.      Additional Agreements; Further Assurances. (a) The
Borrower agrees to deliver to the Lender the following items on or before March
31, 2000: (i) such surveys as the Lender may reasonably request and title
policies (reflecting negotiated changes to each title commitment therefor) for
all real property of the Borrower and its Subsidiaries (other than for Excluded
Locations), and (ii) opinion letters from local counsel relating to the
perfection of the Secured Parties' liens against the personal and real property
of the Borrower and its Subsidiaries located in Watauga County, North Carolina,
and Louisiana.

                  (b)      The Borrower acknowledges that the amendments to the
Credit Agreement contained in this Amendment were approved by the Lender on an
expedited basis at the Borrower's request and on the Borrower's behalf, and,
therefore, certain matters contemplated by this Amendment and the other Loan
Documents and amendments thereto executed and delivered in connection with this
Amendment may not be documented to the complete satisfaction of the Lender. The
Borrower agrees to promptly take such further actions as the Lender shall
request from time to time in connection with this Amendment in order to further
document and evidence the agreements contemplated by this Amendment and to
provide the Lender with such other customary rights, powers and remedies with
respect to the agreements contemplated by this Amendment that might not be
contained herein. The failure by the Borrower to timely comply with any such
request by the Lender and any other obligation of the Borrower under this
Amendment, time being of the essence, shall constitute an Event of Default under
the Credit Agreement.

                                       8
<PAGE>   9

                  11.      Governing Law. This Amendment shall be governed by
and construed and interpreted in accordance with, the laws of the State of
Georgia.

                  12.      Conditions Precedent; Attorney Fees; Etc.. This
Amendment shall become effective only upon (A) execution and delivery of (i)
this Amendment by each of the parties hereto, (ii) the Consent and Reaffirmation
of Guarantors at the end hereof by each of the Guarantors, (iii) an amendment,
satisfactory to the Lender in all respects, to that certain Revolving Credit
Agreement dated as of August 9, 1999, between the Borrower and Wachovia Bank,
N.A., whereby the amendments set forth in paragraph 2 of this Amendment are
agreed to with respect to such Revolving Credit Agreement and, to the extent not
remedied by such amendments, any existing defaults or events of default
thereunder are waived, (iv) a waiver, satisfactory to the Lender in all
respects, with respect to that certain Note Agreement dated as of October 12,
1995 between the Borrower and The Prudential Insurance Company of America,
whereby any existing defaults or events of default thereunder are waived for a
period not less than one year, and (v) the letter agreement described in the
definition of "Transaction" added to the Credit Agreement hereby, and (B)
payment to the Lender in immediately available funds of the fees, costs and
expenses described in a letter agreement of even date herewith between the
Borrower and the Lender.

                                       9
<PAGE>   10

         IN WITNESS WHEREOF, the Borrower and the Lender have caused this
Amendment to be duly executed, under seal, by their duly authorized officers as
of the day and year first above written.

                                 CROWN CRAFTS, INC.                 (SEAL)

                                 By: /s/ David S. Fraser
                                    -------------------------------------------
                                 Name: David S. Fraser
                                      -----------------------------------------
                                 Title: Vice President, Chief Financial Officer
                                       ----------------------------------------

                                 BANK OF AMERICA, N.A.              (SEAL)

                                 By: /s/ John F. Register, Jr.
                                    -------------------------------------------
                                 Name: John F. Register, Jr.
                                      -----------------------------------------
                                 Title: Principal
                                       ----------------------------------------

                                       10
<PAGE>   11

                     CONSENT AND REAFFIRMATION OF GUARANTORS

     Each of the undersigned (i) acknowledges receipt of the foregoing Amendment
No. 1 to Revolving Credit Agreement (the "Amendment"), (ii) consents to the
execution and delivery of the Amendment by the parties thereto, and (iii)
reaffirms all of its obligations and covenants under that certain Subsidiary
Guaranty Agreement dated as of August 9, 1999, and agrees that none of such
obligations and covenants shall be affected by the execution and delivery of the
Amendment. This Consent and Reaffirmation may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed to be an original and all
of which counterparts, taken together, shall constitute but one and the same
instrument.

                                   GUARANTORS:

                                   CHURCHILL WEAVERS, INC.
                                   CROWN CRAFTS DESIGNER, INC.
                                   CROWN CRAFTS FURNISHINGS, INC.
                                   CROWN CRAFTS FURNISHINGS OF
                                       ILLINOIS, INC.
                                   G.W. STORES, INC.
                                   HAMCO, INC.
                                   CROWN CRAFTS INFANT PRODUCTS, INC.
                                     (as successor to Noel Joanna, Inc. and
                                     The Red Calliope and Associates, Inc.)

                                   By: /s/ David S. Fraser
                                      -----------------------------------------
                                   Name: David S. Fraser
                                        ---------------------------------------
                                   Title: Vice President
                                         --------------------------------------

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}]]