UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION ----------------------------------------------------------In re: x ) ) 1 ) COLLINS & AIKMAN CORPORATION,

et al. ) Debtors. ) ) ----------------------------------------------------------- x Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) Honorable Steven W. Rhodes

STIPULATION RESOLVING (I) ADVERSARY PROCEEDING NO. 07-05698 AND (II) MOTION OF JVIS-USA, LLC FOR ALLOWANCE AND PAYMENT OF ADMINISTRATIVE EXPENSE CLAIM This stipulation is made as of May 15, 2008, by and between the Collins & Aikman PostConsummation Trust (the Post-Consummation Trust), on behalf of itself, and the abovecaptioned debtors (collectively, the Debtors), and JVIS-USA, LLC, for itself and its agents, employees, officers, directors, members, attorneys, other representatives, successors and assigns (JVIS), resolving (i) Adversary Proceeding No. 07-05698, and (ii) Motion of JVIS-USA, LLC for Allowance and Payment of Administrative Expense Claim:
1

The Debtors in the jointly administered cases include: Collins & Aikman Corporation; Amco Convertible Fabrics, Inc., Case No. 05-55949; Becker Group, LLC (d/b/a/ Collins & Aikman Premier Mold), Case No. 05-55977; Brut Plastics, Inc., Case No. 05-55957; Collins & Aikman (Gibraltar) Limited, Case No. 05-55989; Collins & Aikman Accessory Mats, Inc. (f/k/a the Akro Corporation), Case No. 05-55952; Collins & Aikman Asset Services, Inc., Case No. 05-55959; Collins & Aikman Automotive (Argentina), Inc. (f/k/a Textron Automotive (Argentina), Inc.), Case No. 05-55965; Collins & Aikman Automotive (Asia), Inc. (f/k/a Textron Automotive (Asia), Inc.), Case No. 0555991; Collins & Aikman Automotive Exteriors, Inc. (f/k/a Textron Automotive Exteriors, Inc.), Case No. 05-55958; Collins & Aikman Automotive Interiors, Inc. (f/k/a Textron Automotive Interiors, Inc.), Case No. 05-55956; Collins & Aikman Automotive International, Inc., Case No. 05-55980; Collins & Aikman Automotive International Services, Inc. (f/k/a Textron Automotive International Services, Inc.), Case No. 05-55985; Collins & Aikman Automotive Mats, LLC, Case No. 05-55969; Collins & Aikman Automotive Overseas Investment, Inc. (f/k/a Textron Automotive Overseas Investment, Inc.), Case No. 05-55978; Collins & Aikman Automotive Services, LLC, Case No. 05-55981; Collins & Aikman Canada Domestic Holding Company, Case No. 05-55930; Collins & Aikman Carpet & Acoustics (MI), Inc., Case No. 05-55982; Collins & Aikman Carpet & Acoustics (TN), Inc., Case No. 05-55984; Collins & Aikman Development Company, Case No. 05-55943; Collins & Aikman Europe, Inc., Case No. 05-55971; Collins & Aikman Fabrics, Inc. (d/b/a Joan Automotive Industries, Inc.), Case No. 05-55963; Collins & Aikman Intellimold, Inc. (d/b/a M&C Advanced Processes, Inc.), Case No. 05-55976; Collins & Aikman Interiors, Inc., Case No. 05-55970; Collins & Aikman International Corporation, Case No. 05-55951; Collins & Aikman Plastics, Inc., Case No. 05-55960; Collins & Aikman Products Co., Case No. 05-55932; Collins & Aikman Properties, Inc., Case No. 0555964; Comet Acoustics, Inc., Case No. 05-55972; CW Management Corporation, Case No. 05-55979; Dura Convertible Systems, Inc., Case No. 05-55942; Gamble Development Company, Case No. 05-55974; JPS Automotive, Inc. (d/b/a PACJ, Inc.), Case No. 05-55935; New Baltimore Holdings, LLC, Case No. 05-55992; Owosso Thermal Forming, LLC, Case No. 05-55946; Southwest Laminates, Inc. (d/b/a Southwest Fabric Laminators Inc.), Case No. 05-55948; Wickes Asset Management, Inc., Case No. 05-55962; and Wickes Manufacturing Company, Case No. 05-55968.

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WHEREAS, on May 17, 2005 (the Petition Date), the Debtors filed voluntary petitions for relief (collectively, the Case) under chapter 11 of the Bankruptcy Code, 11 U.S.C. 1011330 (the Bankruptcy Code), in the United States Bankruptcy Court for the Eastern District of Michigan, Southern Division in Detroit (the Bankruptcy Court). WHEREAS, subsequent to the Petition Date, certain of the Debtors and/or their nondebtor affiliates issued purchase orders to JVIS, which JVIS accepted, for the fabrication of certain tools, molds or fixtures (the Tooling). JVIS used the Tooling to produce component parts (the Parts). WHEREAS, through various pleadings filed in the Case, JVIS alleged that it had a lien on the Tooling (the Secured Claim). WHEREAS, the Debtors and JVIS are the parties to an Adversary Proceeding filed in the Case, captioned In re Collins & Aikman Corporation, et al. v. JVIS-USA, LLC, Bankruptcy Case No. 05-55927, Adversary Proceeding No. 07-05698 (hereinafter, the Adversary Proceeding). WHEREAS, in the Adversary Proceeding, the Debtors have asserted various counts alleging that JVIS does not have a valid and properly perfected lien on the Tooling. WHEREAS, JVIS denies the Debtors allegations in the Adversary Proceeding in their entirety. WHEREAS, on November 12, 2007, JVIS filed in the Case its Motion of JVIS-USA, LLC for Allowance and Payment of Administrative Expense Claim (the Administrative Claim) alleging that it was owed $585,288.91 for Tooling and Parts provided to the Debtors after the Petition Date. WHEREAS, the Post-Consummation Trust and JVIS have exchanged information and agree that the Tooling and Parts were delivered to Debtors and/or their non-Debtor affiliates;

WHEREAS, JVIS has now been paid in full for the Tooling and Parts and, therefore, the Administrative Expense Claim heretofore asserted by JVIS has been fully paid and satisfied. NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is hereby stipulated and agreed to by and between the Post-Consummation Trust and JVIS as follows: 1. The Secured Claim, the Administrative Claim and any and all other claims, and/or

alleged corresponding liens, of any kind or nature, which have been, or which otherwise might be, asserted by JVIS in the Case, or otherwise as to any Tooling or Parts, are hereby deemed to have been paid or otherwise satisfied in full. JVIS covenants and agrees not to assert any further or other claims against the Debtors Estate, the Post-Consummation Trust and/or each of their respective employees, officers, directors, members, attorneys, other representatives and assigns, or otherwise with respect to any Tooling or Parts, and any claims of JVIS against the Debtors Estate, the Post-Consummation Trust and/or each of their respective employees, officers,

directors, members, attorneys, other representatives, successors and assigns, or otherwise with respect to any Tooling or Parts, which might otherwise exist are hereby deemed fully and forever waived, released, acquitted and discharged by JVIS. JVIS represents and warrants that it has not heretofore assigned to any third party any claim(s) which JVIS has, had, or might otherwise have against the Debtors Estate, the Post-Consummation Trust and/or each of their respective employees, officers, directors, members, attorneys, other representatives, successors and assigns, or otherwise with respect to any Tooling or Parts.

2. prejudice. 3.

The Administrative Claim is hereby deemed withdrawn in its entirety with

The parties hereto agree to cooperate in taking all actions reasonably necessary to

effect the Adversary Proceeding being dismissed with prejudice and without costs. 4. Any claims that the Debtors, the Debtors estates, or the Post-Consummation

Trust may have, of any kind or nature against JVIS with respect to the Tooling or Parts are hereby fully waived, released, and discharged. The Post-Consummation Trust agrees that it therefore will not assert any claims against JVIS with respect to the Tooling or Parts. The PostConsummation Trust also represents that it has not assigned any claim it may have or has had against JVIS with respect to the Tooling or Parts. 5. The Debtors and the Post-Consummation Trust represent that they are authorized

to take all actions necessary to effectuate the relief agreed upon by this Stipulation. JVIS counsel represents that it is authorized to execute this Stipulation and to take other action necessary to effectuate the relief agreed upon in this Stipulation. 6. The Bankruptcy Court shall retain jurisdiction (and the Post-Consummation Trust

and JVIS consent to such retention of jurisdiction) to resolve any disputes or controversies arising from or related to this Stipulation. 7. This Stipulation may be executed in multiple counterparts, any of which may be

transmitted by facsimile, and each of which shall be deemed an original, but all of which together shall constitute one instrument.

8.

This Stipulation constitutes the entire agreement between the parties with respect

to the subject matter hereof, and no prior or contemporaneous agreement may be used to alter the terms of the Stipulation. 9. The signatories to this Stipulation represent that they have been duly authorized

by their respective clients to execute this Stipulation. STIPULATED AND AGREED TO: CARSON FISCHER, P.L.C. /s/ Patrick J. Kukla Joseph M. Fischer (P13452) Lawrence A. Lichtman (P35403) Patrick J. Kukla (P60465) Counsel for the Post-Consummation Trust and Co-Counsel for the Debtors 4111 Andover Road, West 2nd Floor Bloomfield Hills, Michigan 48302 Telephone: (248) 644-4840 Dated: May 15, 2008
G:\Bankr\Collins & Aikman\Pleadings\Adversary Proceedings\JVIS\Stip for dismissal.DOC

ALLARD & FISH, P.C. /s/ Ralph R. McKee Ralph R. McKee (P39484) Counsel for JVIS-USA, LLC 2600 Buhl Building 535 Griswold Detroit, MI 48226 Telephone: (313) 961-6141

EXHIBIT A

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION ----------------------------------------------------------In re: x ) ) COLLINS & AIKMAN CORPORATION, et al.1 ) ) Debtors. ) ) ----------------------------------------------------------- x Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) Honorable Steven W. Rhodes

ORDER APPROVING STIPULATION RESOLVING (I) ADVERSARY PROCEEDING NO. 07-05698 AND (II) MOTION OF JVIS-USA, LLC FOR ALLOWANCE AND PAYMENT OF ADMINISTRATIVE EXPENSE CLAIM Upon the stipulation (the Stipulation) by and between the Collins & Aikman PostConsummation Trust (the Post-Consummation Trust), on behalf of the above-captioned debtors (collectively, the Debtors), and JVIS-USA, LLC, for itself and its agents, employees, officers, directors, members, attorneys, other representatives, successors and assigns (JVIS) resolving (i) Adversary Proceeding No. 07-05698 and (ii) Motion of JVIS-USA, LLC for
1

The Debtors in the jointly administered cases include: Collins & Aikman Corporation; Amco Convertible Fabrics, Inc., Case No. 05-55949; Becker Group, LLC (d/b/a/ Collins & Aikman Premier Mold), Case No. 05-55977; Brut Plastics, Inc., Case No. 05-55957; Collins & Aikman (Gibraltar) Limited, Case No. 05-55989; Collins & Aikman Accessory Mats, Inc. (f/k/a the Akro Corporation), Case No. 05-55952; Collins & Aikman Asset Services, Inc., Case No. 05-55959; Collins & Aikman Automotive (Argentina), Inc. (f/k/a Textron Automotive (Argentina), Inc.), Case No. 05-55965; Collins & Aikman Automotive (Asia), Inc. (f/k/a Textron Automotive (Asia), Inc.), Case No. 0555991; Collins & Aikman Automotive Exteriors, Inc. (f/k/a Textron Automotive Exteriors, Inc.), Case No. 05-55958; Collins & Aikman Automotive Interiors, Inc. (f/k/a Textron Automotive Interiors, Inc.), Case No. 05-55956; Collins & Aikman Automotive International, Inc., Case No. 05-55980; Collins & Aikman Automotive International Services, Inc. (f/k/a Textron Automotive International Services, Inc.), Case No. 05-55985; Collins & Aikman Automotive Mats, LLC, Case No. 05-55969; Collins & Aikman Automotive Overseas Investment, Inc. (f/k/a Textron Automotive Overseas Investment, Inc.), Case No. 05-55978; Collins & Aikman Automotive Services, LLC, Case No. 05-55981; Collins & Aikman Canada Domestic Holding Company, Case No. 05-55930; Collins & Aikman Carpet & Acoustics (MI), Inc., Case No. 05-55982; Collins & Aikman Carpet & Acoustics (TN), Inc., Case No. 05-55984; Collins & Aikman Development Company, Case No. 05-55943; Collins & Aikman Europe, Inc., Case No. 05-55971; Collins & Aikman Fabrics, Inc. (d/b/a Joan Automotive Industries, Inc.), Case No. 05-55963; Collins & Aikman Intellimold, Inc. (d/b/a M&C Advanced Processes, Inc.), Case No. 05-55976; Collins & Aikman Interiors, Inc., Case No. 05-55970; Collins & Aikman International Corporation, Case No. 05-55951; Collins & Aikman Plastics, Inc., Case No. 05-55960; Collins & Aikman Products Co., Case No. 05-55932; Collins & Aikman Properties, Inc., Case No. 0555964; Comet Acoustics, Inc., Case No. 05-55972; CW Management Corporation, Case No. 05-55979; Dura Convertible Systems, Inc., Case No. 05-55942; Gamble Development Company, Case No. 05-55974; JPS Automotive, Inc. (d/b/a PACJ, Inc.), Case No. 05-55935; New Baltimore Holdings, LLC, Case No. 05-55992; Owosso Thermal Forming, LLC, Case No. 05-55946; Southwest Laminates, Inc. (d/b/a Southwest Fabric Laminators Inc.), Case No. 05-55948; Wickes Asset Management, Inc., Case No. 05-55962; and Wickes Manufacturing Company, Case No. 05-55968.

Allowance and Payment of Administrative Expense Claim; the Court having reviewed the Stipulation and finding good cause for entry of this Order: IT IS HEREBY ORDERED that: 1. 2. The Stipulation is approved in its entirety; The Secured Claim2 and the Administrative Claim are hereby deemed to have

been paid or otherwise satisfied in full. 3. 4. The Administrative Claim is withdrawn in its entirety with prejudice. The Debtors, the Post-Consummation Trust and JVIS will cooperate in taking all

actions reasonably necessary to effect the Adversary Proceeding being dismissed with prejudice and without costs. 5. The Post-Consummation Trust and the Debtors are authorized and directed to take

all actions necessary to effectuate the relief granted pursuant to this Order in accordance with the Stipulation. 6. The terms and conditions of this Order shall be immediately effective and

enforceable upon its entry. 7. This Court retains jurisdiction with respect to all matters arising from or related to

the implementation of this Order.

2 Capitalized terms used but not defined herein shall have the meaning ascribed to them as set forth in the Stipulation.