Document:

<PAGE>

*** INDICATES CONFIDENTIAL MATERIAL OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT AND FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
SEPARATELY WITH A REQUEST FOR CONFIDENTIAL TREATMENT.

                                                                    EXHIBIT 4.10

        [LOGO]                                               [LOGO]

                                  AIRBUS S.A.S.

                                       AND

                     CHINA EASTERN AIRLINES CORPORATION LTD

                                       AND

                        CHINA EASTERN AVIATION IMPORT AND
                               EXPORT CORPORATION

                                    [PICTURE]

                                    [PICTURE]

                                    [PICTURE]

                                        1
<PAGE>

                                AMENDMENT NO. 9

                         TO THE A320 PURCHASE AGREEMENT

                                     BETWEEN

                                  AIRBUS S.A.S.

                                    AS SELLER

                                       AND

                     CHINA EASTERN AIRLINES CORPORATION LTD

                                   AS AIRLINE

                                       AND

              CHINA EASTERN AVIATION IMPORT AND EXPORT CORPORATION

                             AS TRADING CORPORATION

                  BOTH AIRLINE AND TRADING CORPORATION AS BUYER

                                   Page 1/14
<PAGE>

                                AMENDMENT NO. 9

This amendment No.9 to the A320 Purchase Agreement dated as of March 26, 2002 is
made as of the__________day of______________________2005.

BETWEEN

AIRBUS S.A.S., a societe par actions simplifiee, legal successor of Airbus
S.N.C., formerly known as Airbus G.I.E created and existing under French law and
registered with the Toulouse Registre du Commerce under number RCS Toulouse 383
474 814 and having its registered office at

            1 Rond-Point Maurice Bellonte
            31707 BLAGNAC Cedex
            FRANCE

(hereinafter referred to as "the Seller") of the one part,

CHINA EASTERN AIRLINES CORPORATION, LIMITED, having its principal office at:

            Pudong International Airport

            SHANGHAI 201202

            PEOPLE'S REPUBLIC OF CHINA

(hereinafter referred to as the "Airline") of the other part

AND

CHINA EASTERN AVIATION IMPORT AND EXPORT CORPORATION, having its principal
office at:

            Pudong International Airport

            SHANGHAI 201202

            PEOPLE'S REPUBLIC OF CHINA

(hereinafter referred to as the "Trading Corporation", the Airline and the
Trading Corporation hereinafter referred to jointly and severally as the
"Buyer").

                                   Page 2/14
<PAGE>

WHEREAS

      -     The parties hereto have signed on the 26th day of March 2002 an A320
            Purchase Agreement called hereinafter together with its Exhibits and
            Letter Agreements (the "Agreement") for the sale of a certain number
            of A320, collectively referred to as the "Aircraft".

      -     The parties hereto have signed on the 27th day of June 2002 an
            Amendment No. 1 to the Agreement to modify certain terms of Letter
            Agreement No. 6 to the Agreement.

      -     The parties hereto have signed on the 13th day of November 2002 an
            Amendment No. 2 to the Agreement to modify certain terms of Letter
            Agreement No. 6 to the Agreement.

      -     The parties hereto have signed on the 29th day of May 2003 an
            Amendment No. 3 to the Agreement to modify the delivery schedule of
            the Aircraft.

      -     The parties hereto have signed on the 29th day of August 2003 an
            Amendment No. 4 to the Agreement to modify the delivery schedule of
            the Aircraft.

      -     The parties hereto have signed on the 29th day of September 2003 an
            Amendment No. 5 to the Agreement to reflect the purchase by the
            Buyer of four (4) A321-200 model aircraft.

      -     The parties hereto have initialled on the 03rd day of September 2004
            an Amendment No. 6 to the Agreement for the purchase by the Buyer of
            three (3) A319-100 model aircraft. This Amendment No. 6 has been
            cancelled.

      -     The parties hereto have signed on the 14th day of October 2004 an
            Amendment No. 7 to the Agreement to modify the delivery schedule of
            the Aircraft.

      -     The parties hereto have signed on the 16th day of March 2005 an
            Amendment No. 8 to the Agreement to reflect the purchase by the
            Buyer of five (5) A319-100 model aircraft.

      -     On December 06th 2004, the Seller and China Aviation Supplies Import
            and Export Corporation ("CASC") have entered into a General Term
            Agreement ("GTA") for the sale and purchase of twenty three (23)
            A320 family aircraft (the "Twenty Three Aircraft"). As part of the
            Twenty Three Aircraft, fifteen (15) A320 family aircraft ("the
            Fifteen Aircraft") have been allocated to the Buyer.

      -     Now the Buyer wishes and the Seller agrees to enter into an
            amendment No. 9 (the "Amendment") to cover the basic terms and
            conditions for the purchase by the Buyer of such Fifteen Aircraft
            A320 Aircraft. The Fifteen Aircraft are composed of four (4) A320-
            200 model aircraft (the "A320 Aircraft") and eleven (11) A321-200
            model aircraft (the "A321 Aircraft").

      -     Except as provided herein in the Amendment, upon signature of this
            Amendment the A320 Aircraft and the A321 Aircraft shall be deemed
            Aircraft.

NOW THEREFORE IT IS AGREED AS FOLLOWS:

                                   Page 3/14
<PAGE>

1.    GENERAL

      The following paragraphs will define the specific amendments to the
      Agreement which will apply only to the Fifteen Aircraft to be delivered to
      the Buyer.

2.    A320 AIRCRAFT

2.1   SPECIFICATION

      The parties agree that, with respect to the A320 Aircraft, sub-Clause
      2.1.1 of the Agreement shall be deleted in its entirety and replaced by
      the following:

      QUOTE

      The Airframe shall be manufactured in accordance with the Standard
      Specification, as modified or varied prior to the date of this Agreement
      by the Specification Change Notices.

<TABLE>
<CAPTION>
AIRCRAFT TYPE        STANDARD SPECIFICATION                MTOW      MLW     MZFW
-------------        ----------------------                ----      ---     ----
<S>                  <C>                                   <C>       <C>     <C>
A32Q AIRCRAFT         D.000.02000, issue 5 revision 1      73.5 t    64.5 t  61.0 t
                      dated April 30, 2001
</TABLE>

      The Buyer has indicated that the A320 Aircraft will be operated at a
      higher MTOW of 77 t compared to the standard 73.5 t. The SCN price for
      such increase in design weights is of

      ***

      UNQUOTE

2.2   PROPULSION SYSTEMS

      No later than June 30th, 2005, the Buyer shall select between CFM
      INTERNATIONAL (CFM) Engines and INTERNATIONAL AERO ENGINES (IAE) one of
      the following Engines types in accordance with the terms and conditions of
      Clause 3 of the Agreement.

<TABLE>
<CAPTION>
AIRCRAFT TYPE                 CFM                             IAE
-------------              ------------                   ------------
<S>                        <C>                            <C>
A320 AIRCRAFT              CFM 56-5B4/P                   IAE V2527-A5
</TABLE>

      Should the buyer select CFM Engines, the terms and conditions of the
      Agreement shall apply to CFM engines.

      Should the buyer select IAE Engines, sub-Clause 3.2.2 of the Agreement
      shall be deleted in its entirety and replaced by the following:

      QUOTE

      International Aero Engines Propulsion Systems

      The Basic Price for a set of two (2) INTERNATIONAL AERO ENGINES V2527-A5
      Engines including standard equipment is:

                                       ***

                                   Page 4/14
<PAGE>

      at economic conditions prevailing for a theoretical delivery in January
      2000.

      Such Basic Price corresponds to the Reference Price of  ***  at delivery
      conditions prevailing in January 2001 and shall be subject to revision up
      to the Aircraft delivery date in accordance with the INTERNATIONAL AERO
      ENGINES Price Revision Formula set forth in Appendix 1 to this Amendment.
      Such Reference Price corresponds to the following Propulsion Systems
      Reference Price currently quoted by INTERNATIONAL AERO ENGINES at delivery
      conditions of January 2001 of: USD 14,458,518.

      UNQUOTE

2.3   TERMS AND CONDITIONS

      ***

      QUOTE

      ***

      UNQUOTE

3.    A321 AIRCRAFT

3.1   SPECIFICATION

      The parties agree that, with respect to the A321 Aircraft, Paragraph 2.2
      of Letter Agreement No. 2 to the Agreement shall be deleted in its
      entirety and replaced by the following:

                                   Page 5/14
<PAGE>

      QUOTE

      The A321 Aircraft will be manufactured in accordance with the Standard
      Specification Document No. E.000.02000, issue 2 Revision 1 dated April 30,
      2001 (the "Standard Specification"). The Specification shall be modified
      with an SCN increasing the operating weights to the following values:

<TABLE>
<CAPTION>
AIRCRAFT TYPE        STANDARD SPECIFICATION             MTOW      MLW       MZFW
-------------        ----------------------             ----      ---       ----
<S>                  <C>                                <C>       <C>       <C>
A321 AIRCRAFT        E.000.02000, issue 2 revision 1   93 t       77.8 t    73.8 t
                     dated April 30, 2001
</TABLE>

      The SCN price for such increase ***

      UNQUOTE

3.2   PROPULSION SYSTEMS

      No later than June 30th, 2005, the Buyer shall select between CFM
      INTERNATIONAL (CFM) Engines and INTERNATIONAL AERO ENGINES (IAE) one of
      the following Engines types in accordance with the terms and conditions of
      Letter Agreement No. 2 to the Agreement.

<TABLE>
<CAPTION>
AIRCRAFT TYPE                CFM                        IAE
-------------                ---                        ---
<S>                      <C>                        <C>
A321 Aircraft            CFM56-5B3/P                IAE V2533-A5
</TABLE>

      Should the buyer select CFM Engines, the terms and conditions of Paragraph
      3.2.2 of Letter Agreement No. 2 to the Agreement shall apply to CFM
      engines.

      Should the buyer select IAE Engines, Paragraph 3.2.3 of Letter Agreement
      No. 2 to the Agreement shall be deleted in its entirety and replaced by
      the following:

      QUOTE

      International Aero Engines Propulsion Systems

      The Basic Price for a set of two (2) INTERNATIONAL AERO ENGINES V2533-A5
      Engines including standard equipment is:

                                       ***

      at economic conditions prevailing for a theoretical delivery in January
      2000.

      Such Basic Price corresponds to the Reference Price of  ***  at delivery
      conditions prevailing in January 2001 and shall be subject to revision up
      to the Aircraft delivery date in accordance with the INTERNATIONAL AERO
      ENGINES Price Revision Formula set forth in Appendix A to this Amendment.
      Such Reference Price corresponds to the following Propulsion Systems
      Reference Price currently quoted by INTERNATIONAL AERO ENGINES at delivery
      conditions of January 2001 of ***

      UNQUOTE

                                   Page 6/14
<PAGE>

3.3   TERM AND CONDITIONS

      ***

      QUOTE

      ***

      UNQUOTE

3.4   PERFORMANCE GUARANTEES

      The Performance Guarantees defined in Letter Agreement No. 1 to Amendment
      No. 5 to the Agreement shall apply to the A321 Aircraft.

4.    DELIVERY DATES

      The A320 Aircraft shall be delivered at the following dates:

      A320 Aircraft No. 1:     ***
      A320 Aircraft No. 2:     ***
      A320 Aircraft No. 3:     ***
      A320 Aircraft No. 4:     ***

      The A321 Aircraft shall be delivered at the following dates:

                                   Page 7/14
<PAGE>

      A321 Aircraft No.  1:   ***
      A321 Aircraft No.  2:   ***
      A321 Aircraft No.  3:   ***
      A321 Aircraft No.  4:   ***
      A321 Aircraft No.  5:   ***
      A321 Aircraft No.  6:   ***
      A321 Aircraft No.  7:   ***
      A321 Aircraft No.  8:   ***
      A321 Aircraft No.  9:   ***
      A321 Aircraft No. 10:   ***
      A321 Aircraft No. 11:   ***
                              ***

5.    WARRANTY PERIOD AND SERVICE LIFE POLICY

5.1   Notwithstanding the terms and conditions of Clause 12.1.3 of the
      Agreement, the parties agree that, with respect to the Fifteen Aircraft,
      Clause 12.1.3 of the Agreement shall be deleted in its entirety and
      replaced by the following:

      QUOTE

      12.1.3 WARRANTY PERIOD

             The warranties contained in Clauses 12.1.1 and 12.1.2 of the
             Agreement shall be limited to those defects which become apparent
             within thirty six (36) months after Delivery of the affected
             Aircraft ("WARRANTY PERIOD").

      UNQUOTE

5.2   Notwithstanding the terms and conditions of Clause 12.2.2 of the
      Agreement, the parties agree that, with respect to the Fifteen Aircraft,
      Clause 12.2.2 of the Agreement shall be deleted in its entirety and
      replaced by the following:

      QUOTE

      12.2.2   PERIODS AND SELLER'S UNDERTAKINGS

               The Seller agrees that if a Failure occurs in an Item before the
               Aircraft in which such Item has been originally installed has
               completed thirty thousand (30,000) flying hours, or has completed
               twenty four thousand (24,000) flight cycles, or within twelve
               (12) years after the Delivery of said Aircraft to the Buyer,
               whichever shall first occur, the Seller shall at its own
               discretion and as promptly as practicable and with the Seller's
               financial participation as hereinafter provided either:

      12.2.2.1 design and furnish to the Buyer a correction for such Item with a
               Failure and provide any parts required for such correction
               (including Seller designed standard parts but excluding industry
               standard parts), or,

      12.2.2.2 replace such Item.

      12.2.3   SELLER'S PARTICIPATION IN THE COSTS

               ***

                                   Page 8/14
<PAGE>

      ***

        where:

      ***

              or,

      ***

      UNQUOTE

6     CUSTOMER SUPPORT

6.1   The Seller will provide free of charge to the Buyer ***
      maintenance trainee days for the total fleet of Fifteen Aircraft for
      Buyer's ground personnel;

6.2   ***               man-months of Resident Customer Support Manager ("RCSM")
      for the total fleet of Fifteen Aircraft.

6.3   ***

                                   Page 9/14
<PAGE>

7.    PREDELIVERY PAYMENTS

      With respect to the Fifteen Aircraft, the parties agree to add to Clause
      5.3.2 of the Agreement the following paragraph:

      QUOTE

      ***

      UNQUOTE

8.    ***

                                   Page 10/14
<PAGE>

      ***

9.    PROVISION OF THE AMENDMENT

      The provisions of the Agreement, its Exhibits, its Letter Agreement shall
      apply to the sale and delivery of the Aircraft herein defined except
      insofar as they may be expressly modified by the provisions of this
      Amendment.

      The Agreement shall be deemed amended and supplemented to the extent
      herein provided and as so amended and supplemented shall remain in full
      force and effect.

      If there is any inconsistency between the Agreement and this Amendment,
      the latter shall prevail to the extent of such inconsistency.

IN WITNESS WHEREOF, this Amendment No. 9 was entered into the day and year above
written.

For and on behalf of:                        For and on behalf of:

CHINA EASTERN AIRLINES                       AIRBUS S.A.S.
CORPORATION LIMITED

                                                 /s/ G. Bruwon
                                                 -----------------------------
By: /s/ Luo Chaogen                          By:
    ------------------------------
Its:                                         Its: VP Contracts
    ------------------------------                ----------------------------

CHINA EASTERN AVIATION IMPORT
AND EXPORT CORPORATION

By: /s/ Fan Erning
    ------------------------------
Its:
     -----------------------------

                                   Page 11/14
<PAGE>

                                   APPENDIX 1

      PROPULSION SYSTEMS PRICE REVISION FORMULA INTERNATIONAL AERO ENGINES

1     REFERENCE PRICE OF THE ENGINES

      The Reference Price of a set of two (2) INTERNATIONAL AERO ENGINES Engines
      is as indicated in this Amendment.

      This Reference Price is subject to adjustment for changes in economic
      conditions as measured by data obtained from the US Department of Labor,
      Bureau of Labor Statistics, and in accordance with the provisions hereof.

2     REFERENCE PERIOD

      The above Reference Price has been established in accordance with the
      averaged economic conditions prevailing in June 2000, July 2000, August
      2000 (delivery conditions January 2001), as defined, according to
      INTERNATIONAL AERO ENGINES by the ECIb and ICb index values indicated in
      Clause 4 of this Exhibit C.

3     INDEXES

      Labor Index: "Employment Cost Index for Workers in Aerospace
      manufacturing" hereinafter referred to as "ECI SIC 3721W", quarterly
      published by the US Department of Labor, Bureau of Labor Statistics, in
      "NEWS", and found in Table 6, "WAGES and SALARIES (not seasonally
      adjusted): Employment Cost Indexes for Wages and Salaries for private
      industry workers by industry and occupational group", or such other name
      that may be from time to time used for the publication title and/or table,
      (Aircraft manufacturing, standard industrial classification code SIC 3721,
      base month and year June 1989 = 100).

      The quarterly value released for a certain month (March, June, September
      and December) shall be the one deemed to apply for the two preceding
      months. Index code for access on the Web site of the US Bureau of Labor
      Statistics: ECU28102i.

      Material Index: "Industrial Commodities" (hereinafter referred to as "IC")
      as published in "PPI Detailed report" (found in Table 6. "Producer price
      indexes and percent changes for commodity groupings and individual items
      not seasonnally adjusted" or such other names that may be from time to
      time used for the publication title and/or table). (Base Year 1982 = 100).

      Index code for access on the Web site of the US Bureau of Labor
      Statistics: WPU03THRU15.

                                   Page 12/14
<PAGE>

4     REVISION FORMULA

      Pn = (Pb+F) x [(0.65 x (ECIn/ECIb)) + (0.35 x (ICn/ICb))]

      Where :

      F     : (0.005 x N x Pb)
              where N = the calendar year of Delivery of the Aircraft minus 2001

      Pn    : revised Reference Price at Aircraft Delivery

      Pb    : Reference Price at averaged economic conditions June 2000, July
              2000, August 2000

      ECIn  : ECIsic3721W Index for the Fifth (5th), Sixth (6th) and Seventh
              (7th) month averaged prior to the month of Aircraft Delivery

      ECIb  : ECIsic3721W Index for June 2000, July 2000, August 2000 averaged
              (=149.5)

      ICn   : IC-Index for the Fifth (5th), Sixth (6th) and Seventh (7th) month
              averaged prior to the month of Aircraft Delivery

      ICb   : IC-Index for June 2000, July 2000, August 2000 (=135.7)

5.    GENERAL PROVISIONS

5.1   Roundings

      (i)   ECIn and ICn shall be calculated to the nearest tenth (1 decimal)

      (ii)  Each quotient (ECIn/ECIb) and (ICn/ICb) shall be calculated to the
            nearest ten-thousandth (4 decimals).

      (iii) The final factor shall be rounded to the nearest ten-thousandth (4
            decimals).

      if the next succeeding place is five (5) or more the preceding decimal
      place shall be raised to the nearest higher figure.

      After final computation Pn shall be rounded to the nearest whole number
      (0.5 rounds to 1).

5.2   Final Index Values

      The revised Reference Price at the date of Aircraft Delivery shall be the
      final price and shall not be subject to any further adjustments in the
      indexes.

      If no final index values are available for any of the applicable month,
      the then published preliminary figures shall be the basis on which the
      Revised Reference Price shall be computed.

5.3   Interruption of Index Publication

      If the US Department of Labor substantially revises the methodology of
      calculation or discontinues any of the indexes referred to hereabove, the
      Seller shall reflect the

                                   Page 13/14
<PAGE>

      substitute for the revised or discontinued index selected by INTERNATIONAL
      AERO ENGINES, such substitute index to lead in application to the same
      adjustment result, insofar as possible, as would have been achieved by
      continuing the use of the original index as it may have fluctuated had it
      not been revised or discontinued.

      Appropriate revision of the formula shall be made to accomplish this
      result.

5.4   Annulment of Formula

      Should the above escalation provisions become null and void by action of
      the US Government, the price shall be adjusted due to increases in the
      costs of labor and material which have occurred from the period
      represented by the applicable Reference Price Indexes to the Fifth (5th),
      Sixth (6th) and Seventh (7th) months averaged prior to the scheduled
      Aircraft Delivery.

5.5   Limitation

      Should the revised Reference Price be lower than the Reference Price, the
      final price shall be computed with the Reference Price.

                                   Page 14/14
<PAGE>

     ON THIS DAY OF APRIL 21st, 2005, AIRBUS S.A.S., CHINA EASTERN AIRLINES

          CORPORATION LTD AND CHINA EASTERN AVIATION IMPORT AND EXPORT

       CORPORATION (BOTH REFERRED TO AS "CHINA EASTERN") HEREBY CELEBRATE

         THE CONCLUSION OF THE PURCHASE BY CHINA EASTERN OF TWENTY (20)

      AIRBUS A320 FAMILY AIRCRAFT (REFERENCE: AMENDMENT No. 8 FOR FIVE (5)

        A319-100 AND AMENDMENT No. 9 TO THE A320 PURCHASE AGREEMENT FOR

                  FOUR (4) A320-200 AND ELEVEN (11) A321-200).

For: CHINA EASTERN AIRLINES CORPORATION LTD        For: AIRBUS S.A.S

/s/ Luo Chaogen                                    /s/ Philippe Delmas
---------------                                    -----------------------------
By: LUO CHAOGEN                                    By: PHILIPPE DELMAS

Its: President                                     Its: Executive Vice President

For: CHINA EASTERN AVIATION IMPORT AND
     EXPORT CORPORATION

/s/ Fan Erning
--------------------
By: FAN ERNING

Its: General Manager

                                       2
<PAGE>

SIDE LETTER No. 1 to AMENDMENT No. 9

CHINA EASTERN AIRLINES CORPORATION, LTD
Pudong International Airport
Shanghai 201202
People's Republic of China

SUBJECT: AMENDMENT APPROVAL

CHINA EASTERN AIRLINES CORPORATION Ltd (the "Buyer") and AIRBUS S.A.S. (the
"Seller") have entered into an amendment No. 9 herewith dated as of April 21st,
2005 (the "Amendment") to the Agreement, which covers the manufacture and the
sale by the Seller and the purchase by the Buyer of fifteen (15) Aircraft model
aircraft as described in the Amendment.

Capitalized terms used herein and not otherwise defined in this Side Letter
shall have the meanings assigned thereto in the Amendment.

Both parties agree that this Side Letter, upon execution thereof, shall
constitute an integral, nonseverable part of said Amendment and shall be
governed by all its provisions, as such provisions have been specifically
amended pursuant to this Side Letter.

NOW THE BUYER AND THE SELLER AGREE THE FOLLOWING:

The Amendment is subject to the following conditions being fulfilled on or
before April 21st, 2005:

      1) Approval of the transaction contemplated under the Amendment being
      obtained from the government of the Buyer's country.

      2) Approval of the transaction contemplated under the Amendment being
      obtained from the board of directors of the Buyer.

      3) Approval of the transaction contemplated under the Amendment being
      obtained from the Buyer's shareholders.

The Buyer hereby commits to notify in writing the Seller on or before April
21st, 2005 that it has obtained the necessary approvals listed in paragraphs 1),
2) and 3) above.

                            Side Letter 1 - Page 1/2
<PAGE>

SIDE LETTER No. 1 to AMENDMENT No. 9

If the foregoing correctly sets forth our understanding, please execute three
(3) originals in the space provided below and return one (1) original of this
Letter Agreement to the Seller.

Agreed and Accepted                          Agreed and Accepted

For and on behalf of                         For and on behalf of

CHINA EASTERN AIRLINES CORPORATION LIMITED   AIRBUS S.A.S.

By: /s/ Luo Chaogen                          By: /s/ G. Bruwon
    ---------------                              ---------------
Its: LUO CHAOGEN                             Its:

                            Side Letter 1 - Page 2/2- 8 -

                                                                   EXHIBIT 10.32

                           WAIVER AND AMENDMENT NO. 4

     WAIVER AND AMENDMENT NO. 4 dated as of March 22, 2006 (this "Amendment") by
and among Quaker Fabric Corporation of Fall River, a Massachusetts corporation
(the "Borrower"), Quaker Fabric Corporation, a Delaware corporation (the
"Parent" and together with the Borrower and the Guarantors signatory hereto, the
"Loan Parties"), Bank of America, N.A. and the other lenders party hereto
(collectively, the "Lenders", and individually, a "Lender") and Bank of America,
N.A., as Administrative Agent, Issuing Bank and Cash Management Bank.

     WHEREAS, the Parent, the Borrower, the Lenders party thereto, the
Administrative Agent, the Issuing Bank and the Cash Management Bank are parties
to that certain Revolving Credit and Term Loan Agreement, dated as of May 18,
2005 (as amended and in effect from time to time, the "Credit Agreement");

     WHEREAS, (a) an Event of Default has occurred and is continuing under the
Credit Agreement as a result the Borrower's failure to comply with the financial
covenant contained in Section 9.1 of the Credit Agreement as of the fiscal month
ended March 4, 2006 and (b) the Borrower has advised the Lenders that an Event
of Default will occur as a result of the Borrower's failure to deliver audited
financial statements without qualification or expression of concern as to
uncertainty of the Parent to continue as a going concern within ninety (90) days
after the end of the 2005 Fiscal Year (the Events of Default referred to in
clauses (a) and (b) above are collectively referred to herein as the "Specified
Defaults").

     WHEREAS, on March 15, 2006, the Borrower delivered to the Administrative
Agent an irrevocable notice (the "Commitment Reduction Notice") of its election
to permanently reduce the Total Commitment to $30,000,000 pursuant to the
provisions of Section 2.3 of the Credit Agreement;

     WHEREAS, the Loan Parties have requested that the Administrative Agent and
the Lenders waive the Specified Defaults and amend certain of the terms and
provisions of the Credit Agreement, as specifically set forth in this Amendment.

     NOW THEREFORE, in consideration of the premises and the mutual agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

     Section l. Definitions. Except as otherwise defined in this Amendment,
terms defined in the Credit Agreement are used herein as defined therein.

     Section 2. Waiver. Subject to the satisfaction of the conditions specified
in Section 4 herein, the Administrative Agent and the Lenders hereby permanently
waive the Specified Defaults.

<PAGE>

                                     - 9 -

     Section 3. Amendments. Subject to the satisfaction of the conditions
precedent specified in Section 4 herein, the Credit Agreement shall be amended
as follows:

     (a) Section 1.1 of the Credit Agreement is hereby amended by deleting the
definition of "Availability Reserve" contained therein and substituting in lieu
thereof the following new definition:

          "Availability Reserve. means, (a) $8,500,000 during the period
     commencing on March 22, 2006 and ending on May 1, 2006 and (b) $7,500,000
     at all times thereafter."

     (b) Section 2.11.2 of the Credit Agreement is hereby amended by deleting
subsection (a) contained therein and substituting in lieu thereof the text
"[intentionally omitted]".

     (c) Section 2.11.2 of the Credit Agreement is hereby amended by deleting
the text contained in the first two lines of subsection (b) thereof and
substituting in lieu thereof the following:

          "Prior to the occurrence of an Event of Default of which the account
     officers of the Administrative Agent active on the Borrower's account have
     knowledge, all funds transferred to the Concentration Account and for which
     the Borrower has received credits shall be applied to the Obligations of
     the Borrowers as follows:"

     (d) Section 3.2.1(a) of the Credit Agreement is hereby amended by deleting
the chart contained therein and substituting in lieu thereof the following new
chart:

           ----------------------------------------------------------
            Term Loan Installment Payment      Term Loan Installment
                       Date
           ----------------------------------------------------------
                  November 1, 2005                  $1,000,000
           ----------------------------------------------------------
                  February 1, 2006                  $1,000,000
           ----------------------------------------------------------
                     May 1, 2006                    $1,000,000
           ----------------------------------------------------------
                    June 1, 2006                      $333,333
           ----------------------------------------------------------
                    July 1, 2006                      $333,333
           ----------------------------------------------------------
                   August 1, 2006                     $333,333
           ----------------------------------------------------------
                 September 1, 2006                    $333,333
           ----------------------------------------------------------
                  October 1, 2006                     $333,333
           ----------------------------------------------------------

<PAGE>

                                     - 10 -

           ----------------------------------------------------------
                  November 1, 2006                    $333,333
           ----------------------------------------------------------
                  December 1, 2006                    $333,333
           ----------------------------------------------------------
                   January 1, 2007                    $333,333
           ----------------------------------------------------------
                  February 1, 2007                    $333,333
           ----------------------------------------------------------
                   March 1, 2007                      $333,333
           ----------------------------------------------------------
                   April 1, 2007                      $333,333
           ----------------------------------------------------------
                    May 1, 2007                       $333,333
           ----------------------------------------------------------
                    June 1, 2007                      $333,333
           ----------------------------------------------------------
                    July 1, 2007                      $333,333
           ----------------------------------------------------------
                   August 1, 2007                     $333,333
           ----------------------------------------------------------
                 September 1, 2007                    $333,333
           ----------------------------------------------------------
                  October 1, 2007                     $333,333
           ----------------------------------------------------------
                  November 1, 2007                    $333,333
           ----------------------------------------------------------
                  December 1, 2007                    $333,333
           ----------------------------------------------------------
                  January 1, 2008                     $333,333
           ----------------------------------------------------------
                  February 1, 2008                    $333,333
           ----------------------------------------------------------
                   March 1, 2008                      $333,333
           ----------------------------------------------------------
                   April 1, 2008                      $333,333
           ----------------------------------------------------------
                     May 1, 2008                      $333,333
           ----------------------------------------------------------
                    June 1, 2008                      $375,000
           ----------------------------------------------------------
                    July 1, 2008                      $375,000
           ----------------------------------------------------------
                   August 1, 2008                     $375,000
           ----------------------------------------------------------
                 September 1, 2008                    $375,000
           ----------------------------------------------------------

<PAGE>

                                     - 11 -

           ----------------------------------------------------------
                  October 1, 2008                     $375,000
           ----------------------------------------------------------
                  November 1, 2008                    $375,000
           ----------------------------------------------------------
                  December 1, 2008                    $375,000
           ----------------------------------------------------------
                  January 1, 2009                     $375,000
           ----------------------------------------------------------
                  February 1, 2009                    $375,000
           ----------------------------------------------------------
                   March 1, 2009                      $375,000
           ----------------------------------------------------------
                   April 1, 2009                      $375,000
           ----------------------------------------------------------
                     May 1, 2009                      $375,000
           ----------------------------------------------------------
                    June 1, 2009                      $375,000
           ----------------------------------------------------------
                    July 1, 2009                      $375,000
           ----------------------------------------------------------
                   August 1, 2009                     $375,000
           ----------------------------------------------------------
                 September 1, 2009                    $375,000
           ----------------------------------------------------------
                  October 1, 2009                     $375,000
           ----------------------------------------------------------
                  November 1, 2009                    $375,000
           ----------------------------------------------------------
                  December 1, 2009                    $375,000
           ----------------------------------------------------------
                  January 1, 2010                     $375,000
           ----------------------------------------------------------
                  February 1, 2010                    $375,000
           ----------------------------------------------------------
                   March 1, 2010                      $375,000
           ----------------------------------------------------------
                   April 1, 2010                      $375,000
           ----------------------------------------------------------
                   Maturity Date                  $375,008 or the
                                               remaining outstanding
                                                   amount of the
                                                     Term Loan
           ----------------------------------------------------------

     (e) Section 3.2.1(d) of the Credit Agreement is hereby amended by deleting
the text "to be applied against the remaining scheduled installments of
principal of the Term Loan on a pro rata basis" occurring in clauses (i) and
(ii) of such Section, and substituting in lieu thereof the following: "to be
applied against the remaining scheduled installments of principal of the Term
Loan in the inverse order of maturity".

<PAGE>

                                     - 12 -

     (f) Section 3.2.2 of the Credit Agreement is hereby amended by deleting the
text "shall be applied pro rata to the remaining scheduled installments of
principal of the Term Loan on a pro rata basis" occurring therein, and
substituting in lieu thereof the following: "shall be applied against the
remaining scheduled installments of principal of the Term Loan in the inverse
order of maturity".

     (g) Section 7.4 is hereby further amended by deleting the text "and"
contained immediately after subsection (h) thereof, deleting the period
contained at the end of subsection (i) thereof and substituting in lieu thereof
the text "; and" and by inserting the following new subsections:

          "(j) simultaneously with the delivery of the financial statements
     referred to in subsection (c) above, a Compliance Certificate setting forth
     in reasonable detail computations evidencing compliance with the financial
     covenant contained in ss.9.1;

          (k) as soon as available, but in any event not later than May 12,
     2006, (A) a revised 2006 business plan for the Parent, prepared by the
     Parent with the assistance of the Additional Financial Consultant (as
     defined in Section 7.21) and (B) an initial assessment and action item
     report, prepared by the Additional Financial Consultant, in form
     satisfactory to the Administrative Agent, which outlines the Additional
     Financial Consultant's assessment of the Loan Parties' business prospects
     and sets forth the Additional Financial Consultant's initial
     recommendations as to performance and operating efficiency initiatives as
     well as restructuring plans and strategic alternatives for the Loan
     Parties; and

          (l) weekly, commencing not later than May 12, 2006, a 13-week forecast
     of cash flows, in form satisfactory to the Administrative Agent. Without
     limiting the generality of the foregoing, such forecast shall detail, on a
     weekly basis, the projected outstanding amount of Revolving Loans and the
     Maximum Drawing Amount for all Letters of Credit for the period, such
     forecast to be in form and substance satisfactory to the Administrative
     Agent."

     (h) Section 7.17.1(b) of the Credit Agreement is hereby by amended by
deleting the comma contained immediately prior to clause (v) contained therein
and substituting in lieu thereof a period, by deleting clauses (v) and (vi)
contained therein in their entirety and by inserting the following new sentence
of the end thereof:

          "The Borrower hereby agrees that all amounts received by the
     Administrative Agent in the Concentration Account will be the sole and
     exclusive property of the Administrative Agent, for the accounts of the
     applicable Lenders and the Administrative Agent, to be applied in
     accordance with ss.2.11 or ss.2.12 as applicable."

<PAGE>

                                     - 13 -

     (i) Section 7 of the Credit Agreement is hereby amended by adding the
following new section immediately after Section 7.20 contained therein:

          7.21. Additional Financial Consultant. Not later than April 3, 2006,
     the Parent shall engage an experienced financial consultant acceptable to
     the Administrative Agent (the "Additional Financial Consultant") to work
     collaboratively with the senior management team of the Parent, the board of
     directors of the Parent and the Parent's professionals to assist the Parent
     in evaluating and implementing strategic and tactical options for the
     restructuring process, including without limitation, to (i) assist the
     Parent in implementing a rolling 13-week cash receipts and disbursements
     forecast, together with an actual-to-forecast variance reporting process,
     to provide on-time information related to the Parent's liquidity consistent
     with Section 7.4(l), (ii) assist the Parent and its professionals in the
     ongoing development of overall strategic and business plans including
     analyzing alternative strategic plans, including without limitation (A)
     turnaround, restructuring options and alternative transactions, (B)
     potential modification of the Credit Agreement or refinancing or (C) any
     combination of the foregoing, (iii) assist the Parent and its professionals
     with the analysis and, if applicable, negotiation of the divestiture of
     assets in conjunction with considering other strategic alternatives, (iv)
     assist management with assessing organizational and operational structure
     of the Parent and work with the Parent regarding potential changes and
     efficiencies, (v) meet with the Administrative Agent and the Lenders and
     potential refinancing lenders and their respective advisors with respect to
     the Parent's financial and operational matters, and discuss the matters set
     forth in this ss.7.21 with the Administrative Agent and the Lenders;
     provided that the Parent shall be given prior notice of any meetings
     wherein a substantive issue will be discussed, and may participate in such
     meetings, (vi) assist the Parent in analyzing performance improvement and
     cash enhancement opportunities, and (vii) assist with such other matters as
     may be requested by the Administrative Agent that fall within the
     Additional Financial Consultant's expertise and that are mutually agreeable
     to the Parent, the Administrative Agent and the Additional Financial
     Consultant, all upon terms and a timetable reasonably acceptable to the
     Administrative Agent. The scope and other terms of engagement shall be
     reasonably acceptable to the Administrative Agent.

     (j) The Credit Agreement is hereby further amended by deleting Section 9.1
thereof and substituting in lieu thereof the following:

          "9.1. Minimum Consolidated EBITDA. The Parent and the Borrower shall
     not permit Consolidated EBITDA, determined as at the end of each month set
     forth in the table below for the period of the two (2) consecutive prior
     months then ending, to be less than the amount set forth opposite such
     month in such table:

<PAGE>

                                     - 14 -

                ----------------------------------------------------
                    Month               Minimum Consolidated EBITDA
                ----------------------------------------------------
                 April of 2006                  $1,475,000
                ----------------------------------------------------
                  May of 2006                   $1,975,000
                ----------------------------------------------------

          (k) Notwithstanding anything to the contrary contained in the Credit
     Agreement, from and after the date hereof, the Borrower shall not be
     entitled to borrow, request, convert or continue any LIBOR Rate Loans. Any
     LIBOR Rate Loans outstanding on the date hereof shall continue as such
     until the end of the current Interest Period with respect thereto, at which
     time such LIBOR Rate Loans shall be converted to Base Rate Loans.

     Section 4. Conditions Precedent. The Administrative Agent, the Lenders, and
each of the Loan Parties agree that this Amendment shall become effective as of
the date hereof upon the satisfaction of the following conditions precedent,
each in form and substance reasonably satisfactory to the Agent:

     (a) The Loan Parties and the Required Lenders shall have executed and
delivered to the Administrative Agent this Amendment;

     (b) The Administrative Agent shall have received payment from the Borrower
for the pro rata account of each Lender executing this Amendment an amendment
fee in the amount of $125,000.

     (c) After giving effect to this Amendment, the representations and
warranties of each of the Loan Parties in each of the Loan Documents to which it
is a party shall be true and correct on and as of the date hereof, except to the
extent of changes resulting from transactions contemplated or permitted by the
Credit Agreement and the other Loan Documents and changes occurring in the
ordinary course of business that singly or in the aggregate are not materially
adverse, and to the extent that such representations and warranties relate
expressly to an earlier date;

     (d) As of the date hereof, after giving effect to this Amendment, there
shall be no Default or Event of Default existing;

     (e) The Administrative Agent shall have received the Commitment Reduction
Notice.

     (f) The Administrative Agent and the Lenders shall have received payment
for all fees and expenses including, without limitation, reasonable legal fees
and expenses, for which invoices or reasonable estimates therefor have been
provided to the Borrower on or prior to the date hereof.

     Section 5. Representations and Warranties. Each of the Loan Parties hereby
represents and warrants to the Lenders as follows:

     (a) The execution and delivery by the Borrower and each Guarantor and the
performance by each of the Borrower and each Guarantor of each of its
obligations and agreements under this Amendment and the Credit Agreement and the
other Loan Documents, as amended hereby, are within the organizational authority
of each such Person, have been duly authorized by all necessary proceedings on
behalf of each such Person, and do not and will not contravene any provision of
law, statute, rule or regulation to which any such Person is subject or any of
such Person's organizational documents or of any agreement or other instrument
binding upon any such Person;

<PAGE>

                                     - 15 -

     (b) This Amendment and the Credit Agreement and the other Loan Documents,
as amended hereby, constitute legal, valid and binding obligations of each of
the Borrower and each Guarantor, enforceable in accordance with their respective
terms, except as limited by bankruptcy, insolvency, reorganization, moratorium
or other laws relating to or affecting generally the enforcement of creditors'
rights in general, and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law);

     (c) No approval or consent of, or filing with, any governmental agency or
authority is required to make valid and legally binding the execution, delivery
or performance by the Borrower and/or each Guarantor of this Amendment or the
Credit Agreement and the other Loan Documents as amended hereby, except for such
filings which have been made prior to the date hereof and are in full force and
effect;

     (d) After giving effect to this Amendment, the representations and
warranties contained in Section 6 of the Credit Agreement are true and correct
at and as of the date made and as of the date hereof, except to the extent of
changes resulting from transactions contemplated or permitted by the Credit
Agreement and the other Loan Documents and changes occurring in the ordinary
course of business that singly or in the aggregate are not materially adverse,
and to the extent that such representations and warranties relate expressly to
an earlier date; and

     (e) Each of the Borrower and each Guarantor has performed and complied in
all material respects with all terms and conditions herein required to be
performed or complied with by it prior to or at the time hereof, and as of the
date hereof, after giving effect to the provisions hereof, there exists no Event
of Default or Default.

     Section 6. Affirmation and Acknowledgment.
     ---------- -------------------------------

     (a) The Borrower hereby ratifies and confirms all of its Obligations to the
Administrative Agent and the Lenders and the Borrower hereby affirms its
absolute and unconditional promise to pay to the Lenders the Loans and all other
amounts due under the Credit Agreement, as amended hereby. The Borrower hereby
confirms that the Obligations are and remain secured pursuant to the Security
Documents, and pursuant to all other instruments and documents executed and
delivered by the Borrower as security for the Obligations.

     (b) Each Guarantor hereby acknowledges the provisions of this Amendment and
hereby confirms and ratifies all of its obligations under the Guaranty and each
Loan Document (as amended hereby) to which such Guarantor is a party. Each
Guarantor hereby confirms (i) that the Guaranties and each of the other Loan
Documents remain in full force and effect and (ii) that its obligations under
the Guaranty to which it is a party are and remain secured pursuant to the
Security Documents to which it is a party.

<PAGE>

                                     - 16 -

     Section 7. No Waiver. Except as otherwise expressly provided for in this
Amendment, all of the terms and conditions of the Credit Agreement and the other
Loan Documents shall remain in full force and effect without modification or
waiver.

     Section 8. Expenses. The Borrower agrees to pay to the Administrative Agent
and the Lenders upon written demand therefor an amount equal to any and all
reasonable out-of-pocket costs, expenses, and liabilities incurred or sustained
by the Administrative Agent and the Lenders in connection with the preparation
of this Amendment, and the on-going administration of the Loan Documents after
the date hereof. Amounts payable pursuant to this Section 8 shall be subject to
the provisions of Section 15 of the Credit Agreement, as fully as if set forth
therein.

     Section 9. Miscellaneous.
     ---------- --------------

     (a) This Amendment shall be governed by and construed in accordance with
the internal laws of the Commonwealth of Massachusetts.

     (b) This Amendment shall constitute a Loan Document under the Credit
Agreement, and all obligations included in this Amendment (including, without
limitation, all obligations for the payment of principal, interest, fees, and
other amounts and expenses) shall constitute obligations under the Loan
Documents and be secured by the collateral security for the Obligations.

     (c) This Amendment may be executed in any number of counterparts, and all
such counterparts shall together constitute but one instrument. In making proof
of this Amendment it shall not be necessary to produce or account for more than
one counterpart signed by each party hereto by and against which enforcement
hereof is sought.

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered as of the day and year first above written.

                                              QUAKER FABRIC CORPORATION OF
                                              FALL RIVER
                                              QUAKER FABRIC CORPORATION
                                              QUAKER TEXTILE CORPORATION
                                              QUAKER FABRIC MEXICO, S.A. de C.V.

                                              By:_______________________________
                                                 Name: Paul J. Kelly
                                                 Title: Vice President Finance

<PAGE>

                                     - 2 -

                                          BANK OF AMERICA, N.A. individually and
                                          as Administrative Agent, Issuing Bank
                                          and Cash Management Bank

                                          By:___________________________________
                                             Name: Matthew T. O'Keefe
                                             Title: Senior Vice President

                                          WELLS FARGO FOOTHILL, LLC

                                          By:___________________________________
                                             Name:
                                             Title:

                                          MERRILL LYNCH CAPITAL, A DIVISION OF
                                          MERRILL LYNCH BUSINESS
                                          FINANCIAL SERVICES INC.

                                          By:___________________________________
                                             Name:
                                             Title:

                                       2

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