Document:

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                                                                    EXHIBIT 10.6

                               Monroe Bank & Trust
                            Group Term Carve Out Plan

The following agreement was entered into by the Bank and H. Douglas Chaffin, as
well as with another unnamed officer.

THIS PLAN is made and entered into this 20th day of December 2001, by and
between the Monroe Bank & Trust, a Michigan-chartered commercial bank located in
Monroe, Michigan (the "Company") and the Participant selected to participate in
this Plan (the "Participant").

INTRODUCTION

The Company wishes to attract and retain highly qualified executives. To further
this objective, the Company is willing to divide the death proceeds of certain
life insurance policies which are owned by the Company on the lives of the
participating executives with the designated beneficiary of each insured
participating executive. The Company will pay the life insurance premiums from
its general assets.

Article 1

Definitions

         Whenever used in this Plan, the following terms shall have the meanings
specified:

         1.1 " Base Annual Salary" means the current base annual salary of the
Participant at the earliest of (1) the date of the Participant's death; (2) the
date of the Participant's Disability; (3) the Participant's Early Retirement
Date; or (4) the Participant's Normal Retirement Date. Current Base Annual
Salary shall be defined by reference to compensation of the type that would be
required to be reported by Securities and Exchange Commission Rule 228.402(b)
(17 C.F.R. ss.228.402(b)), specifically column (c) of that rule's Summary
Compensation Table (or any successor provision).

         1.2 [Intentionally Left Blank]

         1.3 "Compensation Committee" means either the Compensation Committee
designated from time to time by the Company's Board of Directors (as of the date
this Plan is created, the Company identifies the board committee performing this
function as the Personnel Committee) or a majority of the Company's Board of
Directors, either of which shall hereinafter be referred to as the Compensation
Committee.

         1.4 "Disability" means, if the Participant is covered by a
Company-sponsored disability policy, total disability as defined in such policy
without regard to any waiting period. If the Participant is not covered by such
a policy, Disability means the Participant suffering a sickness, accident or
injury which, in the judgment of a physician satisfactory to the Company,
prevents the Participant from performing substantially all of the Participant's
normal duties for the Company. As a condition to any benefits, the Company may
require the Participant to submit to such physical or mental evaluations and
tests as the Company's Board of Directors deems appropriate. Any one of the
following events also constitutes Disability: the total and irrecoverable loss
of speech or hearing; the loss of sight of both eyes; the severance of both
hands at or above the wrist; the severance of both feet at or above the ankles;
or the severance of one entire hand and one entire foot.

         1.5 "Early Retirement Age" means the Participant's attaining age 55,
provided the Participant must have at least 5 Years of Service with the Company
as of the Participant's 55th birthday.

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         1.6 "Early Termination" means the Termination of Employment before
Early Retirement Age for reasons other than death, Disability, or Termination
for Cause.

         1.7 "Early Termination Date" means the month, day and year in which
Early Termination Occurs.

         1.8 [Intentionally Left Blank]

         1.9 "Insured" means the individual whose life is insured.

         1.10 "Insurer" means the insurance company issuing the life insurance
policy on the life of the Insured.

         1.11 "Normal Retirement Age" means the Participant attaining age 65.

         1.12 "Normal Retirement Date" means the later of the Normal Retirement
Age or the date that the Participant terminates or is terminated for any reason
other than Termination for Cause.

         1.13 "Participant" means the employee who is designated by the
Compensation Committee as eligible to participate in the Plan, elects in writing
to participate in the Plan using the form attached hereto as Exhibit A, and
signs a Split Dollar Endorsement for the Policy in which he or she is the
Insured.

         1.14 "Policy" or "Policies" means the individual insurance policy or
policies adopted by the Compensation Committee for purposes of insuring a
Participant's life under this Plan.

         1.15 "Plan" means this instrument, including all amendments thereto.

         1.16 "Terminated for Cause" or "Termination for Cause" means that the
Company has terminated the Participant's employment for any of the following
reasons:

                  (a) Gross negligence or gross neglect of duties;
                  (b) Commission of a felony or of a gross misdemeanor involving
         moral turpitude; or
                  (c) Fraud, disloyalty, dishonesty or  willful violation of any
         law or significant Company policy committed in connection with the
         Participant's employment and resulting in an adverse effect on the
         Company. No act, or failure to act, on the Participant's part shall be
         considered "willful" unless he has acted, or failed to act, with an
         absence of good faith and without a reasonable belief that his action
         or failure to act was in the best interest of the Company.

         1.17 "Years of Service" means the total number of twelve-month periods
during which the Participant serves as an employee of the Company.

Article 2

Participation

         2.1 Eligibility to Participate. The Compensation Committee in its sole
discretion shall designate from time to time Participants that are eligible to
participate in this Plan.

         2.2 Participation. The eligible executive may participate in this Plan
by executing an Election to Participate and a Split Dollar Endorsement. The
Split Dollar Endorsement shall bind the Participant and his or her
beneficiaries, assigns and transferees, to the terms and conditions of this
Plan. An executive's participation is limited to only Policies where he or she
is the Insured. Exhibit B attached hereto sets forth the original Insured
Participants and the Policies on their lives.

         2.3 Termination of Participation. A Participant's rights under this
Plan shall cease and his or her participation in this Plan shall terminate if
any of the following events occur:

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                  (a) If the Participant is Terminated for Cause.
                  (b) If the Participant's employment with the Company is
         terminated prior to the Early Retirement Age for reasons other than
         Disability.
                  (c) If the Participant terminates employment due to Disability
         and thereafter becomes gainfully employed with an entity other than the
         Company.

In the event that the Company decides to maintain the Policy after the
Participant's termination of participation in the Plan, the Company shall be the
direct beneficiary of the entire death proceeds of the Policy.

         2.4 Maintaining the Policy and Endorsement until Death. If any of the
events listed below occur, the Company shall maintain the Policy in full force
and effect and, in no event, shall the Company amend, terminate or otherwise
abrogate the Participant's interest in the Policy, unless the Participant agrees
pursuant to section 8.1. The Company may replace the Policy with a comparable
insurance policy to cover the benefit provided under this Agreement if the
Company and Participant execute a new Split Dollar Policy Endorsement for a
comparable benefit, which Policy or any comparable policy shall be subject to
the claims of the Company's creditors.

                 (a) Disability. If the Participant's employment with the
         Company is terminated due to Disability.
                 (b) Retirement. If the Participant's employment with the
         Company is terminated on or after Early Retirement Age.
                 (c) [Intentionally Left Blank]

Article 3

Policy Ownership/Interests

         3.1 Participant's Interest. With respect to each Policy, the
Participant or the Participant's assignee shall have the right to designate the
beneficiary of one of the following death benefit amounts:

                  (a) Pre-Retirement Death Benefit. If the Participant was
         employed by the Company at the time of death, the death benefit shall
         be the lesser of (i) two times the Participant's Base Annual Salary,
         less the Participant's $50,000 group term life insurance benefit under
         the Company's group term life insurance policy; or (ii) $1 million.

                  (b) Post-Retirement Death Benefit. If the Participant was no
         longer employed by the Company at the time of death, but had terminated
         employment due to Disability or on or after Early Retirement Age, the
         death benefit shall be the lesser of (i) one times the Participant's
         Base Annual Salary or (ii) $1 million.

The Participant shall also have the right to elect and change settlement options
with the consent of the Company and the Insurer.

         3.2 Company's Interest. The Company shall own the Policies and shall
have the right to exercise all incidents of ownership except that the Company
shall not sell, surrender or transfer ownership of a Policy so long as a
Participant has an interest in the Policy during the time periods as described
in section 3.1. This provision shall not impair the right of the Company to
terminate this Plan. With respect to each Policy, the Company shall be the
direct beneficiary of the remaining death proceeds of the Policy after the
Participant's Interest is determined according to section 3.1.

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Article 4

Premiums

         4.1 Premium Payment. The Company shall pay all premiums due on all
Policies.

         4.2 Imputed Income. The Company shall impute income to the Participant
in an amount equal to the current term rate for the Participant's age multiplied
by the aggregate death benefit payable to the Participant's beneficiary. The
"current term rate" is the minimum amount required to be imputed under Revenue
Rulings 64-328 and 66-110, or any subsequent applicable authority.

Article 5

Assignment

         Any Participant may assign without consideration all interests in his
or her Policy and in this Plan to any person, entity or trust. In the event a
Participant shall transfer all of his or her interest in the Policy, then all of
that Participant's interest in his or her Policy and in the Plan shall be vested
in his or her transferee, who shall be substituted as a party hereunder, and
that Participant shall have no further interest in his or her Policy or in this
Plan.

Article 6

Insurer

         The Insurer shall be bound only by the terms of their corresponding
Policy. Any payments the Insurer makes or actions it takes in accordance with a
Policy shall fully discharge it from all claims, suits and demands of all
persons relating to that Policy. The Insurer shall not be bound by the
provisions of this Plan. The Insurer shall have the right to rely on the
Company's representations with regard to any definitions, interpretations, or
Policy interests as specified under this Plan.

Article 7

Claims Procedure

         7.1 Claims Procedure. The Company shall notify any person or entity
that makes a claim against this Plan (the "Claimant"), in writing, within ninety
(90) days of Claimant's written application for benefits, of his or her
eligibility or benefits under this Plan. If the Company determines that Claimant
is not eligible for benefits or full benefits, the notice shall set forth (1)
the specific reasons for such denial, (2) a specific reference to the provisions
of this Plan on which the denial is based, (3) a description of any additional
information or material necessary for the Claimant to perfect his or her claim,
and a description of why it is needed, and (4) an explanation of this Plan's
claims review procedure and other appropriate information as to the steps to be
taken if the Claimant wishes to have the claim reviewed. If the Company
determines that there are special circumstances requiring additional time to
make a decision, the Company shall notify the Claimant of the special
circumstances and the date by which a decision is expected to be made, and may
extend the time for up to an additional ninety (90) days.

         7.2 Review Procedure. If the Claimant is determined by the Company not
to be eligible for benefits, or if the Claimant believes that he or she is
entitled to greater or different benefits, the Claimant shall have the
opportunity to have such claim reviewed by the Company by filing a petition for
review with the Company within sixty (60) days after receipt of the notice
issued by the Company. Said petition shall state the specific reasons which the
Claimant believes entitles him or her to benefits or to greater or different
benefits. Within sixty (60) days after receipt by the Company of the petition,
the Company shall afford the Claimant (and counsel, if any) an opportunity to
present his or her

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position to the Company verbally or in writing, and the Claimant (or counsel)
shall have the right to review the pertinent documents. The Company shall notify
the Claimant of its decision in writing within the sixty-day period, stating
specifically the basis of its decision, written in a manner calculated to be
understood by the Claimant and the specific provisions of this Plan on which the
decision is based. If, because of the need for a hearing, the sixty-day period
is not sufficient, the decision may be deferred for up to another sixty (60)
days at the election of the Company, but notice of this deferral shall be given
to the Claimant.

Article 8

Amendments and Termination

         8.1 Amendment or Termination of Plan. Except as otherwise provided in
section 2.4 (i) the Company may amend or terminate the Plan at any time, and
(ii) the Company may amend or terminate a Participant's rights under the Plan at
any time prior to a Participant's death by written notice to the Participant.

         8.2 [Intentionally Left Blank]

         8.3 Participant Waiver. A Participant may, in the Participant's sole
and absolute discretion, waive his or her rights under the Plan at any time. Any
waiver permitted under this section 8.3 shall be in writing and delivered to the
Board of Directors of the Company.

Article 9

Miscellaneous

         9.1 Binding Effect. This Plan in conjunction with each Split Dollar
Endorsement shall bind each Participant and the Company, their beneficiaries,
survivors, executors, administrators and transferees and any Policy beneficiary.

         9.2 No Guarantee of Employment. This Plan is not an employment policy
or contract. It does not give a Participant the right to remain an employee of
the Company, nor does it interfere with the Company's right to discharge a
Participant. It also does not require a Participant to remain an employee nor
interfere with a Participant's right to terminate employment at any time.

         9.3 Applicable Law. The Plan and all rights hereunder shall be governed
by and construed according to the laws of the State of Michigan, except to the
extent preempted by the laws of the United States of America.

         9.4 Notice. Any notice, consent or demand required or permitted to be
given under the provisions of this Plan by one party to another shall be in
writing, shall be signed by the party giving or making the same, and may be
given either by delivering the same to such other party personally, or by
mailing the same, by United States certified mail, postage prepaid, to such
party, addressed to his/her last known address as shown on the records of the
Company. The date of such mailing shall be deemed the date of such mailed
notice, consent or demand.

         9.5 Entire Agreement. This Plan constitutes the entire agreement
between the Company and the Participant as to the subject matter hereof. No
rights are granted to the Participant by virtue of this Plan other than those
specifically set forth herein.

         9.6 Administration. The Company shall have powers which are necessary
to administer this Plan, including but not limited to:

                  (a) Interpreting the provisions of the Plan;

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                  (b) Establishing and revising the method of accounting for the
         Plan;
                  (c) Maintaining a record of benefit payments; and
                  (d) Establishing rules and prescribing any forms necessary or
         desirable to administer the Plan.

         9.7 Designated Fiduciary. For purposes of the Employee Retirement
Income Security Act of 1974, if applicable, the Company shall be the named
fiduciary and plan administrator under the Agreement. The named fiduciary may
delegate to others certain aspects of the management and operation
responsibilities of the Plan including the employment of advisors and the
delegation of ministerial duties to qualified individuals.

         9.8 Severability. If for any reason any provision of this Agreement is
held invalid such invalidity shall not affect any other provision of this
Agreement not held so invalid, and each such other provision shall, to the full
extent consistent with the law, continue in full force and effect. If any
provision of this Agreement shall be held invalid in part, such invalidity shall
in no way affect the rest of such provision, not held so invalid, and the rest
of such provision, together with all other provisions of this Agreement shall,
to the full extent consistent with the law, continue in full force and effect.

         9.9 Headings. The headings of Sections herein are included solely for
convenience of reference and shall not affect the meaning or interpretation of
any provision of this Agreement.

         IN WITNESS WHEREOF, the Company executes this Plan as of the date
indicated above.

                                     COMPANY:

                                     MONROE BANK & TRUST

                                     By /s/ Ronald D. LaBeau

                                            Ronald D. LaBeau

                                     Title President & Chief Executive Officer

                         Split Dollar Policy Endorsement

                  Monroe Bank & Trust Group Term Carve Out Plan

         Policy No. ___________                            Insured: ___________

Supplementing and amending the application of Monroe Bank & Trust (the Company)
on December 27, 2001 to Jefferson-Pilot Life Insurance Company (the Insurer),
the applicant requests and directs that:

BENEFICIARIES

         1. The beneficiary designated by the Insured, or his/her transferee
shall be the beneficiary of one of the following death benefit amounts, subject
to the provisions of paragraph 5 below:

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         (a) Pre-Retirement Death Benefit. If the Insured/Participant was
employed by the Company at the time of death, the death benefit shall be the
lesser of: (i) two times the Participant's Base Annual Salary (defined in the
Monroe Bank & Trust Group Term Carve Out Plan dated December 20, 2001 (the
"Plan"), less $50,000; or (ii) $1 million.

         (b) Post-Retirement Death Benefit. If the Insured/Participant was no
longer employed by the Company at the time of death, but terminated due to
Disability (defined in the Plan) or on or after Early Retirement Age (defined in
the Plan), the death benefit shall be the lesser of: (i) one times the
Participant's Base Annual Salary (defined in the Plan); or (ii) $1 million.

The Insurer may rely on a certificate issued by an authorized officer of Monroe
Bank & Trust for a determination of the amount equal to one or two times Base
Annual Salary of the Insured.

         2. The beneficiary of any remaining death proceeds shall be Monroe Bank
& Trust, a Michigan-chartered commercial bank located in Monroe, Michigan (the
Company).

OWNERSHIP

         3. The Owner of the Policy shall be the Company. The Owner shall have
all ownership rights in the Policy except as may be specifically granted to the
Insured or his/her transferee in paragraph (4) of this endorsement.

         4. The Insured or his/her transferee shall have the right to assign all
rights and interests in the Policy with respect to that portion of the death
proceeds designated in paragraph (1) of this endorsement, and to exercise all
settlement options with respect to such death proceeds.

         5. Notwithstanding the provisions of paragraph (4) above, the Insured
or the Insured's transferee shall have no rights or interests in the Policy with
respect to that portion of the death proceeds designated in paragraph (1) of
this endorsement if any of the following events occur:

                  (a) If the Insured/Participant is Terminated for Cause
         (defined in the Plan).

                  (b) If the Insured/Participant's employment with the Company
         is terminated prior to Early Retirement Age (defined in the Plan), for
         reasons other then Disability (defined in the Plan).

                  (c) If the Insured/Participant terminates employment due to
         Disability (defined in the Plan) and thereafter becomes gainfully
         employed with an entity other than the Company.

MODIFICATION OF ASSIGNMENT PROVISIONS OF THE POLICY
Upon the death of the Insured, the interest of any collateral assignee of the
Owner of the Policy designated in paragraph (3) above shall be limited to the
portion of the proceeds described in paragraph (2) above.

OWNER'S AUTHORITY
The Insurer is hereby authorized to recognize the Owner's claim to rights
hereunder without investigating the reason for any action taken by the Owner,
including the Owner's statement of the amount of premiums the Owner has paid on
the Policy. The signature of the Owner shall be sufficient for the exercise of
any rights under this Endorsement and the receipt of the Owner for any sums
received by it shall be a full discharge and release to the Insurer. The insurer
may rely on a sworn statement in form satisfactory to it furnished by the Owner,
its successors or assigns, as to their interest and any payment made pursuant to
such statement shall discharge the Company accordingly.

Any transferee's rights shall be subject to this Endorsement.

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The Owner accepts and agrees to this split dollar endorsement.

The undersigned is signing in a representative capacity and warrants that he or
she has the authority to bind the entity on whose behalf this document is being
executed.

Signed at Monroe, Michigan, this 28th day of December 2001.

COMPANY

Monroe Bank & Trust
By: /s/ Ronald D. LaBeau
        Ronald D. LaBeau
Its: President & Chief Executive Officer

                                       65<PAGE>

                                                                   EXHIBIT 10.59

                  SERVICES AGREEMENT (this "Agreement"), dated as of February
23, 2001, among Collins & Aikman Corporation, a Delaware corporation, Collins &
Aikman Products Co., a Delaware corporation (together with Collins & Aikman
Corporation, the "Company"), and Heartland Industrial Partners, L.P., a Delaware
limited partnership ("Heartland").

                  WHEREAS, Heartland, by and through itself, its affiliates and
their respective officers, employees and representatives, has expertise in the
areas of finance, strategy, investment and acquisitions relating to the business
of the Company; and

                  WHEREAS, the Company desires to avail itself, for the term of
this Agreement, of the expertise of Heartland in the aforesaid areas and
Heartland wishes to provide the services to the Company as herein set forth;

                  NOW, THEREFORE, in consideration of the foregoing recitals and
the covenants and conditions contained herein, the parties hereto agree as
follows:

                  1. Appointment. The Company hereby appoints Heartland to
render the advisory and consulting services described in Section 2 hereof for
the term of this Agreement. It is understood that the services rendered in
exchange for the annual Advisory Fee referred to herein shall be construed as
being extended to Collins & Aikman Products Co. and that the services rendered
in exchange for the fees referred to in Section 3(c) or otherwise agreed to
hereunder shall be construed as being extended to the particular entity or
entities engaging in the transaction for which fees are being paid. All monetary
obligations of the Company referred to herein shall nonetheless be construed as
joint and several obligations of each of Collins & Aikman Corporation and
Collins & Aikman Products Co.

                  2. Services. Heartland hereby agrees that, during the term of
this Agreement, it shall render to the Company, by and through itself and its
officers, employees and representatives as Heartland in its sole discretion
shall designate from time to time in consultation with the Company (it being
understood that any representatives not associated with Heartland must be
reasonably acceptable to the Company), advisory and consulting services in
relation to the affairs and strategic direction of the Company and its
subsidiaries, including, without limitation, (i) advice with respect to general
developments in the automotive industry and the manner in which those
developments may impact the Company; (ii) advice on market developments
concerning the purchase and sale of automotive suppliers in its market area and
other automotive industry entities identified by the Company and the manner in
which those developments may impact the Company; (iii) advice on the Company's
financial plans, strategic plans, and alternatives after review of such plans
and alternatives with management of the Company; and (iv) advice in other
business and financial areas as may be reasonably requested by the Company and
which are within the expertise of Heartland. Nothing herein shall be construed
as precluding Heartland or any of its affiliates from receiving fees in

<PAGE>
                                      -2-

addition those contemplated hereby for acquisitions and dispositions and for
providing its personnel for general advice (in any such case with the requisite
approvals of the Company). Additional services to which such fees may relate may
include, but not be limited to, the negotiation and arrangement of financings
(whether in the form of debt, equity, lease financing, public or private
offerings of securities or otherwise), work-outs and other traditional and
non-traditional investment banking, consultant or management services.

                  3. Fees. (a) In consideration of the services contemplated by
Section 2, for the term of this Agreement, the Company and its successors agree
to pay to Heartland an annual fee (the "Advisory Fee") equal to (x) a fee of
$404,494.38 in cash for the period from Closing Date through March 31, 2001,
payable on February 23, 2001, (y) $3,000,000 in cash for the balance of calendar
year 2001 and (z) $4,000,000 for each calendar year thereafter, in each case
under clauses (y) and (z) payable in quarterly installments in advance on
January 1, April 1, July 1 and October 1 of each year beginning March 31, 2001
through the date (the "Termination Date") which is the earlier of (x) the tenth
anniversary hereof (unless extended by the Company) or (y) the date on which
Heartland and its affiliates (including, without limitation, the "Heartland
Entities" and their "Permitted Transferees" referred to, in each case, in the
Stockholders Agreement entered into on the date hereof) hold, directly or
indirectly, beneficial ownership of less than 25% of the common equity interests
(including shares underlying preferred stock held by Heartland) of the Company
acquired on the Closing Date, or such earlier date as the Company and Heartland
shall agree. Any Advisory Fee for the last calendar year of this Agreement shall
be prorated for the period of such year ending on the Termination Date. The
"Closing Date" shall mean the date of the closing of the transactions
contemplated by the Primary Share Purchase Agreement dated January 12, 2001
between Heartland and the Company (the "Primary SPA").

                  (b) Upon the Closing Date, the Company shall pay to Heartland
or its designees a fee for services rendered in connection with the transactions
contemplated by the Primary SPA in the amount of $12,000,000 and will reimburse
Heartland and its affiliates for their reasonable out-of-pocket expenses
incurred in connection with such Transactions on the basis described in the
Primary SPA.

                  (c) In addition, commencing on February 23, 2002 and for the
balance of the term of this Agreement, the Company shall pay to Heartland or its
designees a transaction fee in connection with the consummation of each
acquisition or divestiture by the Company or any of its subsidiaries (with
respect to which Heartland provides any significant advisory services) of any
business constituting a going concern or any division or line of business or
separable plant or manufacturing facility or significant set of related assets
in an amount equal to 1% of the aggregate total enterprise value of the business
or assets being acquired or divested, for Heartland's services in negotiating,
analyzing, arranging and executing such acquisitions and divestitures.

<PAGE>
                                      -3-

                  (d) To the extent required by any debt financing of the
Company or its subsidiaries, any fees payable hereunder shall be deferred until
the earlier of (i) the liquidation or dissolution of the Company, and (ii) the
time that payment of such deferred amounts is permitted under such debt
financing. Any deferred fees and Out-of-Pocket Expenses shall bear interest at a
rate of ten percent (10%) per annum, compounded annually, from the date deferred
until paid.

                  4. Reimbursements. In addition to the fees payable pursuant to
this Agreement, the Company shall pay directly or reimburse Heartland for its
Out-of-Pocket Expenses. For the purposes of this Agreement, the term
"Out-of-Pocket Expenses" shall mean the reasonable out-of-pocket costs and
expenses (which, for the avoidance of doubt, shall not include any payment of
salaries, bonuses or other compensation to personnel of Heartland) reasonably
incurred by Heartland or its affiliates in connection with the services rendered
hereunder in pursuing, or otherwise related to, the business of the Company,
including, without limitation, (i) fees and disbursements of any independent
professionals and organizations, including independent accountants, outside
legal counsel or consultants, incurred in consultation with the Company, (ii)
costs of any outside services or independent contractors such as financial
printers, couriers, business publications, on-line financial services or similar
services and (iii) transportation, per diem costs, word processing expenses or
any similar expense not associated with its ordinary operations. All
reimbursements for Out-of-Pocket Expenses shall be made promptly upon or as soon
as practicable after presentation by Heartland to the Company of a written
statement thereof with supporting invoices as reasonably requested by the
Company.

                  5. Indemnification. The Company will indemnify and hold
harmless Heartland, its affiliates and their respective partners (both general
and limited), members (both managing and otherwise), officers, directors,
employees, agents and representatives (each such person being an "Indemnified
Party") from and against any and all losses, claims, damages and liabilities,
whether joint or several (the "Liabilities"), related to, arising out of or in
connection with the advisory and consulting services contemplated by this
Agreement or the engagement of Heartland pursuant to, and the performance by
Heartland of the services contemplated by, this Agreement, whether or not
pending or threatened, whether or not an Indemnified Party is a party, whether
or not resulting in any liability and whether or not such action, claim, suit,
investigation or proceeding is initiated or brought by the Company; provided
that if initiated or brought by the Company, such Indemnified Party shall not
have been adjudged liable to the Company. The Company will reimburse any
Indemnified Party for all reasonable costs and expenses (including reasonable
attorneys' fees and expenses) as they are incurred in connection with
investigating, preparing, pursuing, defending or assisting in the defense of any
action, claim, suit, investigation or proceeding for which the Indemnified Party
would be entitled to indemnification under the terms of the previous sentence,
or any action or proceeding arising therefrom, whether or not such Indemnified
Party is a party thereto. The

<PAGE>
                                      -4-

Company will not be liable under the foregoing indemnification provision with
respect to any Indemnified Party, to the extent that any loss, claim, damage,
liability, cost or expense is determined by a court, in a final judgment from
which no further appeal may be taken, to have resulted primarily from the gross
negligence, bad faith or willful misconduct of Heartland. If an Indemnified
Party is reimbursed hereunder for any expenses, such reimbursement of expenses
shall be promptly refunded to the Company to the extent it is finally judicially
determined that the Liabilities in question resulted primarily from the gross
negligence, bad faith or willful misconduct of Heartland.

                  The Indemnified Parties shall give prompt written notice to
the Company of any pending or threatened claim or any action or proceeding
arising therefrom. The failure of an Indemnified Party to so notify the Company
of any such matter shall not release the Company, in whole or in part, from its
obligations to indemnify hereunder except to the extent that such failure
materially prejudices the ability of the Company to defend such action. If it so
elects, the Company may assume the defense of such action with counsel chosen by
it, and upon such assumption, the Company shall not be liable for any legal
costs subsequently incurred by any Indemnified Party, unless (i) the Company has
failed to provide counsel to such Indemnified Parties in a timely manner of (ii)
either counsel provided by the Company or counsel to such Indemnified Parties
reasonably determines that its representation of such Indemnified Parties would
present it with a conflict of interest or the interests of the Company and the
Indemnified Parties are materially in conflict other than by reason of those
provisions, in which case the Company shall pay the reasonable fees and expenses
of separate counsel for the Indemnified Parties, provided, however, that in no
event shall the Company be liable for the fees and expenses of more than one
counsel for the Indemnified Parties.

                  The Company shall not be required to make payment for any
settlement effected without its prior written consent, which shall not be
unreasonably withheld, and the Company shall not settle any claim against it by
a third party that does not result in the unconditional release of the
Indemnified Parties.

                  6. Accuracy of Information. The Company shall furnish or cause
to be furnished to Heartland such information as Heartland reasonably believes
appropriate to its advisory services hereunder and to the ownership by
affiliates of Heartland of equity interests of the Company (all such information
so furnished being the "Information"). The Company recognizes and confirms that
Heartland (i) will use and rely primarily on the Information and on information
available from generally recognized public sources in performing the services
contemplated by this Agreement without having independently verified the same,
(ii) does not assume responsibility for the accuracy or completeness of the
Information and such other information and (iii) is entitled to rely upon the
Information without independent verification.

                  Except as contemplated by the terms hereof or as required by
applicable law, regulation or regulatory oversight or pursuant to an order
entered or subpoena issued by a

<PAGE>
                                      -5-

court of competent jurisdiction, Heartland will keep confidential all material
nonpublic Information provided to it by the Company pursuant to the terms
hereof, and will not disclose any such Information to any third party, other
than such of its employees, counsel, consultants, partners and investors, actual
and potential financing sources to it or the Company and its subsidiaries and
advisors as Heartland determines have a need to know. Any written material
produced by Heartland for the Company or attributable to the services performed
for the Company shall be the property of the Company and any and all of such
materials and documents and other information supplied by the Company to
Heartland in connection with this Agreement shall be promptly returned to the
Company upon written request.

                  7. Term. This Agreement shall be effective as of the date
hereof and shall continue until the Termination Date, provided that Section 4
shall remain in effect with respect to Out-of-Pocket Expenses incurred prior to
the Termination Date. The provisions of Sections 5 shall survive the termination
of this Agreement.

                  8. Permissible Activities. Subject to applicable law, nothing
herein shall in any way preclude Heartland, its affiliates or their respective
partners (both general and limited), members (both managing and otherwise),
officers, directors, employees, agents or representatives from engaging in any
business activities or from performing services for its or their own account or
for the account of others, including for companies that may be in competition
with the business conducted by the Company.

                  9. Miscellaneous. (a) No amendment or waiver of any provision
of this Agreement, or consent to any departure by either party hereto from any
such provision, shall be effective unless the same shall be in writing and
signed by all of the parties hereto. Any amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given. The waiver by any party of any breach of this Agreement shall not operate
as or be construed to be a waiver by such party of any subsequent breach.

                  (b) Any notices or other communications required or permitted
hereunder shall be sufficiently given if delivered personally or sent by
facsimile, Federal Express, or other overnight courier, addressed as follows or
to such other address of which the parties may have given notice:

<PAGE>
                                      -6-

If to Heartland:              55 Railroad Avenue
                              Greenwich, CT  06830
                              Attention:  David Stockman
                              Facsimile:  (203) 861-2722

If to the Company:            Collins & Aikman Corporation
                              5755 New King Court
                              Troy, Michigan 48098
                              Attention:  Ronald T. Lindsay, General Counsel
                              Facsimile:  (248) 824-1882

Unless otherwise specified herein, such notices or other communications shall be
deemed received (i) on the date delivered, if delivered personally or sent by
facsimile, and (ii) one business day after being sent by Federal Express or
other overnight courier.

                  (c) This Agreement shall constitute the entire agreement
between the parties with respect to the subject matter hereof, and shall
supersede all previous oral and written (and all contemporaneous oral)
negotiations, commitments, agreements and understandings relating hereto.

                  (d) This Agreement shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York. This
Agreement shall inure to the benefit of, and be binding upon, Heartland, the
Company and their respective successors and permitted assigns; provided that
Heartland may not assign this Agreement or delegate its obligations hereunder to
any person other than its affiliates without the prior written consent of the
Company, which shall not be unreasonably withheld. Any assignment in violation
of this Agreement shall be null and void. The provisions of Section 5 shall
inure to the benefit of each Indemnified Party.

                  (e) This Agreement may be executed by one or more parties to
this Agreement on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

                  (f) Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

<PAGE>
                                      -7-

                  IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed and delivered by their duly authorized officers or agents as of the
date first above written.

                        HEARTLAND INDUSTRIAL PARTNERS, L.P.

                        By:  Heartland Industrial Associates
                                 L.L.C., its general partner

                        By:    /s/ Daniel P. Tredwell
                               ---------------------------------------------
                               Name:  Daniel P. Tredwell
                               Title: Member

                        COLLINS & AIKMAN CORPORATION

                        By:    /s/ Ronald T. Lindsay
                               ----------------------------------------------
                               Name:  Ronald T. Lindsay
                               Title: Senior Vice President

                        COLLINS & AIKMAN PRODUCTS CO.

                        By:    /s/ Ronald T. Lindsay
                               ----------------------------------------------
                               Name:  Ronald T. Lindsay
                               Title: Senior Vice President

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