EXHIBIT 10.49 [On GB Merchant Partners Letterhead] July 18, 2007 Quaker Fabric Corporation of Fall River 941 Grinnell Street Fall River, Massachusetts 02721 Attn: Paul J. Kelley, Chief Financial Officer Re: Additional Term Loan Advance...Term Loan Agreement • July 23rd, 2007 • Quaker Fabric Corp /De/ • Broadwoven fabric mills, man made fiber & silk
Reference is made to the Term Loan Agreement dated as of November 9, 2006, by and among Quaker Fabric Corporation of Fall River (the "Borrower"), Quaker Fabric Corporation, GB Merchant Partners, LLC, as Administrative Agent (the "Administrative Agent") and the Lenders party thereto (as amended and in effect, the "Loan Agreement"). Capitalized terms used in this letter without definition have the respective meanings ascribed to such terms in the Loan Agreement. Reference is further made to the letter dated July 3, 2007, sent by counsel to the Administrative Agent and the Lenders to the Borrower identifying certain Events of Default which have occurred and continue to exist under the Loan Agreement (the "Default Letter"). Currently, the Administrative Agent and the Lenders are forbearing from exercising rights and remedies in respect of the Events of Default identified in the Default Letter.
