Document:

<PAGE>   1

                                                                    EXHIBIT 10.5

                                SERVICE CONTRACT

                                     between

                        [COLLINS & AIKMAN PRODUCTS GmbH]

                   (hereinafter referred to as the "COMPANY")

                                       and

                                 MR. BRIAN BATEY

              (hereinafter referred to as the "MANAGING DIRECTOR")

By a resolution of the shareholders meeting dated [...............], Mr. Brian
Batey has been appointed as managing director of the Company.

                                        1

<PAGE>   2

1.       MANAGEMENT AND REPRESENTATION

         The rights and duties of the Managing Director are governed by the law,
         the articles of association of the Company, this service contract and
         [the rules of procedure, which may be adopted by the Company at any
         time]. The Company may modify or limit the Managing Director's power of
         representation at any time.

2.       TRANSACTIONS REQUIRING APPROVAL

         The scope of the power of representation and signing authority of the
         Managing Director are governed by the articles of association, [the
         rules of procedure] and relevant shareholders resolutions.

3.       DUTIES AND ACCOUNTABILITY

3.1      During the term of this Agreement, the Managing Director shall provide
         services as Geschafisfuhrer of the Company in the position of President
         European Automotive Interior Systems. The Managing Director shall be in
         a position to fulfil his statutory obligations and to continue to
         perform his duties as Managing Director of the Company at any time.

3.2      The Managing Director shall carry out the business of the Company with
         the care of a prudent businessman and conscientiously fulfill the
         obligations laid down by statute, the articles of association, the
         rules of procedure, and this service contract. Notwithstanding his
         claims for remuneration under clause 4, the Company may release the
         Managing Director from the performance of his duties at any time in
         whole or in part.

3.3      The Managing Director shall observe the rights and obligations of an
         employer within the meaning of the employment and social security
         regulations.

3.4      The Managing Director shall inform the Company on a regular basis of
         all facts and circumstances known to him which materially concern the
         business or profitability of the Company.

3.5      The Managing Director is currently also acting, with the Company's
         consent, for the following companies: [...........................].

4.       BASE SALARY

4.1      The Company shall pay to Managing Director base salary at an annual
         rate of not less than GBP 200,000 during the term of his employment
         hereunder. Such amount shall be reviewed annually by the shareholders
         of the Company and may be increased in the sole discretion of the
         shareholders.

4.2      Each time the exchange rate of British Pounds to Euros has increased or
         decreased by five percent (%5) or more from 1 Euro equals 0.6 pound
         sterling as of the date hereof or the exchange rate as of any
         adjustment date under this clause (as the case may be), Managing
         Director's base salary and automobile allowance shall automatically be
         adjusted so that following such adjustment Managing Director shall be
         receiving the substantially equivalent base salary and automobile
         allowance expressed in Euros.

                                        2

<PAGE>   3

5.       BONUS/STOCK OPTIONS

         The Company does not grant a Bonus. During the term of Managing
         Director's services hereunder, Managing Director shall however be
         eligible to participate in the Collins & Aikman Products CO. annual
         Executive Incentive Compensation Plan (the "EIC Plan") in accordance
         with the applicable provisions of the EIC Plan. Bonus details are
         attached (APPENDIX A) for information purposes. For the avoidance of
         doubt the Company itself is not the contractual partner of the Managing
         Director with regard to the EIC Plan and is not a guarantor for any
         Bonus.

         The Company does not grant stock options to the Managing Director.
         Managing Director shall, however, be eligible to participate in the
         Collins & Aikman Corporation Employee Stock Option Plans (collectively,
         the "Option Plan") (APPENDIX B) which is attached for information
         purposes. The vesting of stock options granted to Managing Director
         under the Option Plan upon termination prior to the expiration of the
         term of the Agreement and other terms in connection with stock options
         are stipulated in the Option Plan and its additional documents which
         are governed by the laws of Delaware.

         If a German court might apply German law under principles of conflicts
         of laws and if any clause regarding the vesting or compensation of
         options is nevertheless deemed contrary to public policy (sittenwidrig
         i.S.d ss. 138 BGB) by the German court in the context of German law,
         the following shall apply: the legal consequence shall be that the
         relevant clause is not deemed to be completely void. Instead of full
         compensation for the assignment of his interests or the lapse of any
         options, the Managing Director shall be compensated only up to the
         amount which would - in a legal sense - be necessary that the clause
         complies with public policy and is therefore still good in law
         (Anpassung an das noch zulassige Ma(beta))].

5.2      The Managing Director undertakes, to disclose to the local social or
         tax authorities any remuneration he receives form the Company or a
         Group Company, if he is requested to do so by local authorities or if
         he is legally obliged to do so in the context of his own income tax
         return.

6.       BENEFITS AND PERQUISITES

6.1      General.

         Managing Director shall be entitled to such fringe benefits and
         perquisites, and to participate in such benefit plans as are generally
         made available by COLLINS AIKMAN Products CO. to it executives during
         the term. These Benefits include Pension scheme, BUPA coverage, life
         insurance and appropriate annual holidays. Any supplemental retirement
         benefit or pension promise (Pensionszusage) by COLLINS AIKMAN Products
         CO., however, are not granted by the Company.

6.2      Remuneration in the event of incapacity to work and death

         In the event of sickness or other incapacity to work of the Managing
         Director through no fault of his own, the remuneration as per Clause 4
         [Base Salary] shall continue to be paid to the Managing Director for a
         period of six months, however, for a maximum of 130 working

                                        3

<PAGE>   4

         days within any one period of 12 months. The Managing Director shall
         comply with the Company's rules on notification and evidence of absence
         due to illness or injury, as amended.

6.3      Company Automobile

         The Company shall furnish to Managing Director a monthly automobile
         allowance of GBP 1,000 (grossed up for applicable taxes) and shall
         reimburse Managing Director for normal gasoline and maintenance charges
         for the operation thereof, subject to proper allocation of personal use
         for income tax purposes.

6.4      Reimbursement of Expenses

         The Company shall reimburse Managing Director for all reasonable
         travel, entertainment and other reasonable business expenses reasonably
         incurred by Managing Director in connection with the performance of his
         duties hereunder, provided that Managing Director furnishes to the
         Company adequate records or other evidence respecting such
         expenditures.

7.       BUSINESS SECRETS

7.1      The Managing Director undertakes, both during the term of this service
         contract and after its termination, not to use or disclose to others,
         directly or indirectly, any business secrets, unless the Managing
         Director is under a legal obligation to disclose specific information,
         or the Company has given its prior written consent to such use or
         disclosure. This restriction shall not apply to information which may
         have come into the public domain other than through unauthorised
         disclosure by the Managing Director.

7.2      "Business secrets" are all operational or business matters and other
         confidential information of a Group company or third party for which a
         Group company is responsible, or in respect of which a Group company
         has an obligation not to disclose information which it may have
         obtained in the course of the customer relationship.

7.3      The Managing Director may not, outside the ordinary course of business,
         copy or reproduce in another manner any documents, floppy discs,
         cassettes or other data carriers of any kind.

8.       TERM AND TERMINATION

8.1      The Company hereby agrees to employ the Managing Director, and the
         Managing Director hereby accepts employment commencing August 1, 2000.
         The agreement runs for an undefined period and may be terminated at any
         time by either party by giving (3) three months notice. In this case
         three months after notice of termination the service agreement expires
         (expiration of agreement). Either party may at any time terminate this
         Agreement for important cause without notice (Kundigung ous wichtigem
         Grund).

8.2      Any removal from office of the Managing Director by means of a
         shareholders resolution (Abberufung) shall also constitute a
         termination of this service contract by the Company with effect as on
         the earliest possible date.

8.3      Notwithstanding clause 8.1, this service contract will automatically
         expire on the day on which the Managing Director reaches the age of 65.

                                        4

<PAGE>   5

8.4      Any notice of termination must be in writing.

8.5      If either party gives notice of termination, the Company may revoke the
         appointment of the Managing Director with immediate effect. In the
         event of a termination by the Company, the Managing Director may, at
         the Company's sole discretion, be put on leave (Suspendierung) until
         the expiry of the notice period, any outstanding claim to vacation
         being set off. The contractual remuneration will continue to be paid
         during such period. During the period of leave and the term of this
         service contract, any other activity for remuneration, such as being a
         member of advisory or advisory boards, is subject to the express prior
         written consent of the Company and the shareholders. The Company may
         require that during the leave, the Managing Director works in a leading
         position, whether this position entails more or less responsibility
         and/or authority than that determined for him.

8.6      Termination for good cause by the Company which is deemed invalid by a
         court shall be deemed a termination with notice (ordentliche
         Kundigung).

8.7      In the event this agreement is terminated by the Company, except where
         terminated by the Company for important cause, the Managing Director
         shall be entitled to a compensation payment equal to the aggregate
         amount of his last monthly fix salary granted herein multiplied by 15
         plus a pro-rate target bonus payment according to Appendix A. The
         compensation payment shall be paid as a lump sum on the date of
         expiration of the prohibition of competition period. The amount of the
         compensation payment can however, be reduced by the Company by any
         amount claimed by the Managing Director in addition to the expected
         aggregate amount to be paid following notice of termination [i.e. the
         non-compete compensation according to clause 10.4 plus monthly fix
         salary payment during the (3 months) notice period plus monthly fix
         salary multiplied by 15].

9.       PROHIBITION TO ENTICE AWAY

         The Managing Director undertakes, for a period of 1 year from the date
         of termination of this service contract, not to employ, offer to
         employ, or solicit the employment, of any person who immediately prior
         to the date of termination was a managing director, executive employee,
         employee or adviser of a Group company and with whom the Managing
         Director worked together in the twelve months prior to the date of
         termination (whether or not such person would commit any breach of
         their employment agreement by leaving the service of the Company).

10.      PROHIBITION OF COMPETITION

10.1     Contractual prohibition of competition

         During the term of this service contract, the Managing Director shall
         refrain from competing with the Company or its subsidiaries in any way
         whatsoever within Europe or the United States. The Managing Director
         may perform collateral work (Nebentatigkeiten), which might impair the
         Company's interest, only with the approval of the Company.

10.2     Post-contractual prohibition of competition

                                        5

<PAGE>   6

         (a)      The Managing Director undertakes, for a period of
                  ..............[one year] following expiration of his service
                  relationship, not to become active for another business
                  enterprise, individual or in respect of a merger of business
                  enterprises competing with the Company in the area of
                  activities of the Company. The "area of activities" of the
                  Company and its Group companies is [the manufacture and sale
                  of car parts for vehicle interiors and supply...............]

                  No dependent or independent competitive activities shall be
                  permitted. The Managing Director may not become active for the
                  business enterprises to which the prohibition of competition
                  applies, be it directly or indirectly, as a free-lance, or
                  under a service or employment relationship. The Managing
                  Director may further not establish or acquire, or have a
                  capital interest in, a business enterprise competing with the
                  Company.

         (b)      The area of applicability of the restrictions set out under
                  (a) above is as follows:

                  (i)      The prohibition of competition applies to the entire
                           Group [ Definition of the Group....................],
                           provided that it applies only to competition with
                           such Group companies in respect of which the Managing
                           Director has, or has had, the actual opportunity to
                           inspect data relevant in terms of competition, or
                           actual access to information and knowledge relevant
                           in terms of competition or, as the case my be,
                           competitors of Group companies, for which the
                           Managing Director, subject to the aforementioned
                           opportunities to inspect and use, has obviously acted
                           exclusively in an area not relevant in terms of
                           competition. Any doubts in that respect shall be
                           dispelled by the Managing Director.

                  (ii)     Independently and notwithstanding the above, the
                           prohibition of competition applies in any event to
                           the following competing enterprises: Pelzer, Borgers,
                           Reiter, Lear, Magna, Textron, Sommer Allibert, JCI,
                           Dr. Schneider, Rutgers, (CWW Gherko) provided that it
                           shall only apply to the extent that such enterprises
                           or groups of enterprises, during his service or
                           thereafter, are resident in those countries in which
                           the Managing Director is, or has been, active for the
                           Company or a Group company, or are competing in such
                           countries in another manner.

                  (iii)    Independently and notwithstanding the above, the
                           prohibition of competition currently applies in any
                           event to the following competing enterprises: Pelzer,
                           Reiter, Rutgers (CWW Gherko), Borgers, Sommer
                           Allibert.

10.3     If doubts shall arise as to the exact scope of the prohibition of
         competition, or, as the case may be, in order to substantiate the
         restrictions set out above, the parties agree as follows:

         (a)      The parties acknowledge that the Managing Director will obtain
                  knowledge of sensitive information of the Company and Group
                  companies in many areas and has the opportunity to have access
                  to sensible information for furthering his own purposes. The
                  parties acknowledge further that the Company will normally
                  have no insight into the actual structure and control of the
                  Managing Director's access to information and his actual
                  selection of the same, and that, in particular, transparency

                                        6

<PAGE>   7

                  as to what information relevant in terms of competition the
                  Managing Director will actually obtain, cannot be established
                  by the Company alone, in particular due to practical relating
                  to data protection in the scope of his employment. The parties
                  acknowledge further that one consequence of the situation
                  described above is the fact that an exact definition of the
                  scope of limitation of the prohibition of competition is made
                  more difficult, whilst, on the other, any Group company which
                  may be jeopardised by reason of the Managing Director's actual
                  insights and access to information, or his activities in
                  general, has to be protected by a prohibition of competition
                  within the scope legally admissible.

(b)               Given the above, and with the aim to be in a position to
                  ascertain and keep transparent the actual scope of the
                  prohibition of competition at any time, the parties expressly
                  agree to establish mutual transparency in respect of facts on
                  which the actual scope of the prohibition of competition may
                  be used. By such arrangement, the parties are seeking to
                  safeguard the justified interests of the Company, which will
                  often not have an insight into the actual possibilities of
                  obtaining, and further use of, the knowledge obtained from the
                  Company.

10.4     Compensation

         The Company shall pay to the Managing Director for the term of the
         prohibition of competition a monthly compensation in the amount of 50
         per cent of the contractual remuneration (vertragliche
         Vergutungsbestandteilie) per month. For the avoidance of doubt it is
         expressly state that the aggregate compensation to which the Managing
         Director shall be entitled pursuant to the foregoing sentence shall in
         no event fall short of 50% of the average annual contractual
         remuneration which the Managing Director received under this Agreement
         during the three year period to the expiration of his services with the
         Company. Unemployment benefits which the Managing Director receives
         during the duration of the non-compete shall be set off against the
         compensation claim, if the relevant authority (Burdesanstalt fur
         Arbeit) seeks recovery from the Company.

10.5     Contractual penalty

         (a)      For each case of breach of the prohibition of competition, the
                  Managing Director undertakes to pay the Company a penalty in
                  the amount of 1/1 of his average annual earnings, as
                  determined in accordance with clause 10.4, received by him
                  during the last three full financial years prior to his
                  leaving the Company. In the case of a continuing breach, the
                  penalty shall be re-forfeited at the start of each month. Any
                  additional claims of the Company in relation to say breach of
                  the prohibition of competition shall remain unaffected. The
                  Managing Director's entitlement to compensation and to pension
                  payments shall cease for the duration of the breach.

         (b)      The assertion of higher claims for damages by the Company
                  shall not be excluded by the promise to pay a penalty.

         (c)      The Managing Director undertakes, during the notice period and
                  for the term of the prohibition of competition, to notify the
                  Company without undue delay and without being asked, and
                  furnish the evidence, if requested to do so by the Company,
                  of:

                                        7

<PAGE>   8

                  (i)      any future new employer, the area of activity of such
                           employer, any intended free-lance activities or the
                           planned future area and place of work;

                  (ii)     any change of his domicile, his future employer or
                           other contracting party, his professional activities
                           and place of work;

                  (iii)    any changes of his earnings;

                  (iv)     any employment relationship with a Group company.

                  Should the Managing Director fail to comply, or not comply in
                  full, with his duty to furnish information, the Company shall
                  have a right of retention in respect of the compensation until
                  the information is furnished.

10.6     Termination of service relationship

         (a)      If this service contract is terminated by either party for
                  important cause (aus wichtigem Grund), the terminating party
                  may release itself from the agreement restricting competition
                  by renouncing on the prohibition of competition in writing
                  prior to the expiry of one month from receipt of the notice of
                  termination.

         (b)      The Company may before the end of the this service contract
                  waive observance of the post-contractual prohibition of
                  competition by written declaration with the effect that the
                  Company shall on expiry of twelve months from the declaration
                  coming into force be freed from the obligation to pay
                  compensation. In the event of a dismissal from important cause
                  (aus wichtigem Grund), the terminating party shall be entitled
                  to set aside the prohibition of competition within one month
                  of receipt of the notice of summary dismissal.

10.7     Supplementary provisions

         (a)      Should any of the provisions of the prohibition of competition
                  be ineffective in whole or in part, this shall not affect the
                  validity of the remaining provisions of the prohibition of
                  competition or, in particular, the scope of the prohibition of
                  competition (inhaltlicher und raumlicher Umfang) as laid down
                  in clause 10.2 above and the amount of compensation in clause
                  10.5. Any such ineffective provision or, as the case may be,
                  ineffective scope of limitations, shall be replaced by such
                  effective scope or provision. This applies in particular,
                  where the ineffective scope or provision. This applies in
                  particular, where the ineffectiveness of a limitation relates
                  to the scope of the limitation. In that respect, reference is
                  made in addition to Sections 74 et seq. Of the German
                  Commercial Code.

         (b)      The Managing Director acknowledges receipt of the deed
                  referred to in this service contract, signed by the Company.

         (c)      There are no collateral agreements. Any amendments and
                  supplements to this service contract must be in writing to be
                  effective.

11.      VACATION

                                        8

<PAGE>   9

11.1     The Managing Director shall be entitled to an annual vacation of [30]
         working days. Any decision as to the time at which such vacation is
         taken shall take due consideration of the business interests of the
         Company [shall be taken in consultation with the other managing
         directors].

11.2     If the vacation cannot be taken by the Managing Director for business
         or for personal reasons during the financial year, the remaining
         entitlement may be taken by the Managing Director up to 30 June of the
         following financial year. If vacation cannot, in whole or in part, be
         taken for business reason up to that date, the Managing Director shall
         be compensated for the outstanding time.

11.3     Should the vacation not have been taken or fully taken, due to the
         termination of the Managing Director's service relationship, the
         Managing Director shall be compensated for the outstanding time.

11.4     If the Managing Director is entitled to annual vacation from another
         Group company, such vacation shall be set off (angerechnet) against any
         vacation claimed against the company.

12.      INVENTIONS

12.1     The Managing Director is obliged to inform the Company immediately in
         writing of any inventions in accordance with the Employee Invention Act
         (Gesetz uber Arbeitnehmererfindungen). The Company may declare, within
         a period of four months following notification by the Managing
         Director, whether and in what way it will adopt the invention. In the
         event of the adoption of the invention by the Company, the Managing
         Director shall be entitled to remuneration in accordance with the
         provisions under the above Act and the guidelines issued in relation
         thereto.

12.2     The Company shall become the owner of all patenable work results not
         covered by Clause 12.1 above. The Managing Director shall inform the
         Company of any such patentable work results without undue delay. The
         Company shall be free to decide whether or not to file applications for
         design patens.

12.3     The Managing Director shall transfer to the Company free of charge any
         rights of exploitation and use of copyrights accruing from work
         results.

13.      RETURNING OF DOCUMENTS

13.1     Upon termination of this service contract, all loans or advance
         payments granted to the Managing Director by a Group company shall be
         due for repayment.

13.2     The Managing Director is required at any time, on the Company's request
         and upon termination of this service contract at the latest, to return
         to the Company all objects, goods and all documents given to him by the
         Company which arose in connection with his services to the Company or
         were placed at his disposal or were left with him by the Company. These
         documents include, among others, business papers, hardware and software
         including CD's and floppy disks, all saved data concerning any of the
         Group companies, including drafts, letters, minutes of meetings,
         hand-written notes, photos, literature, etc., as well as photocopies
         and copies of such documents.

                                        9

<PAGE>   10

13.3     Any right of retention shall be excluded.

14.      MISCELLANEOUS

14.1     Unless agreed otherwise, herein, this Service Contract is subject to
         German law. The place of jurisdiction is Wiesbaden. Any disputes
         arising out this Agreement shall not be submitted to the Labour Courts
         but to the Civil Courts.

14.2     Any amendments or supplements to this service contract must be in
         writing to be effective. This shall also apply to a waiver of this
         written form requirement.

14.3     This service contract comprises the entire arrangements concerning the
         Managing Director's services as managing director of the Company and
         supersedes any prior agreements, letters of intent, understandings,
         representations, warranties and other undertakings, whether written or
         oral, by the Company, their officers, employees, agents, or other
         representatives.

14.4     The assignment and pledging of claims under this service contract
         requires the express prior written approval by the Company.

14.5     The Managing Director shall inform the Company without undue delay of
         any changes of his private address.

14.6     If any provision of this service contract is or becomes invalid in
         whole or in part, or if the parties have omitted a provision of this
         service contract by mistake, or if there is a gap (Regelungslucke) in
         this service contract, then the validity of the remaining provisions
         shall not be affected thereby. In lieu of such invalid provision, a
         valid provision that most closely meets the spirit and purpose of the
         invalid provision will be deemed to be part of this Service Contractor.
         Where a provision has been omitted by mistake, then the provision the
         parties intended by omitted by mistake will be deemed to be part of
         this service contract. This also applies to any other gaps in this
         service contract and in the event that the invalidity of a provision is
         the result of a measure of performance or time laid down in this
         service contract, in which case such measure or time will be replaced
         by a legally permissible measure or time which comes as close as
         possible to the one originally agreed.

/s/ Brian J . Batey
--------------------------------------------
Managing Director

/s/ Thomas E. Evans
--------------------------------------------
For the Company (Authorised Representative of the shareholders)

                                       10

<PAGE>   11

                                   APPENDIX A

                                      BONUS

During the term of Managing Director's services for COLLINS & AIKMAN PRODUCTS
GmbH in Wiesbaden Managing Director shall be eligible to participate in the
Collins & Aikman Products Co. annual Executive Incentive Compensation Plan (the
"EIC Plan") in accordance with the applicable provisions of the EIC Plan. The
Target bonus for Managing Director under the EIC Plan shall be fifty percent
(50%) of Managing Director's base salary. Managing Director shall be entitled to
receive a full bonus under the EIC Plan for the 2000 fiscal year notwithstanding
Managing Director's commencement of services on or before August 1, 2000 and
Managing Director's bonus for the 2000 fiscal year shall in no event be less
than (pound)100,000.

Consideration will be given regarding the payment of a sign-on bonus during a
three year period in the event the Managing Director does not collect severance
payments or amounts under the change of control agreement currently in place
with Cooper Standard.

For the avoidance of doubt the Company itself is not the contractual partner of
the Managing Director with regard to the Bonus and is not the guarantor for any
Bonus.

<PAGE>   12

                                   APPENDIX B

                                  STOCK OPTIONS

The Managing Director shall be eligible to participate in the Collins & Aikman
Employee Stock Option Plans (collectively, the "Option Plan") and shall be
granted the option to purchase up to 100,000 shares of the Common Stock of
Collins & Aikman Corporation, in accordance with the applicable terms and
conditions of the Option Plan and an Option Agreement between Collins & Aikman
Corporation and Managing Director to be entered into, dated and effective as of
the date Managing Director's employment under this Agreement commences. The
option price for all such shares shall be the closing price of Collins & Aikman
Corporation shares on the New York Stock Exchange on the date where approval is
obtained on the Collins & Aikman Corporation Committee. Subject to the terms and
conditions the Option Plan and the Option Agreement, the option of Managing
Director to purchase up to the 100,000 shares shall vest as follows:

--------------------------------------------------------------------------------
                                     Total Number of
       Vesting Date                   Shares Vested            Percentage Vested
--------------------------------------------------------------------------------
One year from date of grant               33,334                     33 1/3%
--------------------------------------------------------------------------------
Two years from date of grant              66,667                     66 2/3%
--------------------------------------------------------------------------------
Three years from date of grant           100,000                        100%
--------------------------------------------------------------------------------

The vesting of outstanding stock options granted to Managing Director under the
Option Plan upon termination prior to the expiration of the term of Mr. Batey's
Service Agreement and other terms in connection with stock options are
stipulated in the Option Plan and its additional documents which are governed by
the laws of Delaware.

                                       1<PAGE>   1

                                                                    EXHIBIT 10.6

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into
as of August 1, 2000, by and between COLLINS & AIKMAN PRODUCTS CO., a Delaware
corporation (the "Company"), and Graham Tompson ("Employee").

                               W I T N E S S E T H

         WHEREAS, the Company wishes to retain Employee's services by providing
Employee the compensation and benefits set forth in this Agreement;

         NOW, THEREFORE, in consideration of the mutual agreements contained
herein, the parties agree as follows:

         1. Term of Employment. The Company hereby agrees to employ Employee,
and Employee hereby accepts employment, for a period of 3 years, commencing
August 1, 2000 and ending July 31, 2003, subject to the terms and conditions of
this Agreement. At the end of such initial 3 year term, unless the Company shall
have given Employee 60 days prior written notice of its intention to terminate
this Agreement at the end of the initial term hereof, the term of this Agreement
shall automatically be extended by an additional one year period. Thereafter,
unless the Company shall have given Employee 60 days prior written notice of its
intention to terminate this Agreement at the end of the term then in effect, the
term of this Agreement shall automatically be extended by an additional one year
period.

         2. Position of Employment. During the term of this Agreement, Employee
shall be employed in the position of Senior Vice President - Product Development
and shall perform such services for the Company and its affiliates as may be
assigned to him from time to time by the Chairman or the Board of Directors of
the Company. Employee shall devote his entire business time and attention to the
affairs of the Company and the performance of his duties hereunder and shall
serve the Company diligently and to the best of his abilities.. The initial
location of Employee's employment hereunder shall be the Company's Global
Technical Center in Plymouth, Michigan.

         Nothing in this Agreement shall prohibit Employee from participating in
civic or community organizations or from making passive investments using his
personal assets so long as such participation and investments do not interfere
with the performance of Employee's duties under this Agreement. In addition,
Employee may, with the prior written approval of the Chairman or the Board of
Directors of the Company, serve as a member of the board of directors of any
business that is not a direct or indirect competitor of the Company and its
affiliates.

         3. Compensation.

         (a) Base Salary. The Company shall pay to Employee base salary at an
annual rate of not less than $190,000 during the term of his employment
hereunder. Such amount shall be

<PAGE>   2

reviewed annually by the Chairman and Chief Executive Officer of the Company and
may be increased in his sole discretion.

         (b) Bonus Plans. During the term of Employee's employment hereunder,
Employee shall be eligible to participate in the Company's annual Executive
Incentive Compensation Plan (the "EIC Plan") in accordance with the applicable
provisions of the EIC Plan. The standard bonus for Employee under the EIC Plan
shall be forty percent (40%) of Employee's base salary.

         4. Benefits and Perquisites.

         (a) General. Employee shall be entitled to such fringe benefits and
perquisites, and to participate in such pension, profit sharing and benefit
plans as are generally made available to executives of the Company during the
term hereof, including consideration for annual stock option awards, major
medical, extended medical and disability insurance, supplemental retirement
income plan, group term life insurance and appropriate annual holidays, sick
days and vacation time with no fixed schedule. The Company also shall pay the
monthly dues at a luncheon club in the Plymouth, Michigan area of Employee's
choice. The Company shall reimburse Employee for the reasonable initiation fee
payable by Employee to such club.

         (b) Company Automobile. The Company shall furnish to Employee the use
of a Buick Park Avenue or comparable automobile or an annual allowance in
accordance with the Company's policy in effect from time to time and shall
reimburse Employee for normal gasoline and maintenance charges for the operation
thereof, subject to proper allocation of personal use for income tax purposes.

         (c) Relocation Expenses. The Company shall reimburse Employee for the
reasonable expenses incurred by Employee in connection with the relocation of
Employee and his wife and any minor children from Weisbaden, Germany to the
Plymouth, Michigan area, in accordance with the relocation policy of the
Company. The Company shall pay Employee a one-time relocation allowance of
$30,000, payable in a lump sum payment upon completion of the purchase of a
principal residence by Employee in the Plymouth, Michigan area. In addition to
the payment of the relocation allowance as provided in this Paragraph 4(c), the
Company shall pay Employee an additional amount such that after all applicable
federal, state and local income, employment and other taxes on Employee's
relocation allowance and on any additional amount payable in accordance with
this sentence, Employee has received the entire $30,000 relocation allowance on
an after-tax basis.

         5. Reimbursement of Expenses. The Company shall reimburse Employee for
all reasonable travel, entertainment and other reasonable business expenses
reasonably incurred by Employee in connection with the performance of his duties
hereunder, provided that Employee furnishes to the Company adequate records or
other evidence respecting such expenditures.

         6. Termination of Employment. Employee's employment under this
Agreement may be terminated:

<PAGE>   3

                  (a) by the Company upon Employee's death (which shall be
         referred to as a "Death Termination") or Employee's physical or mental
         disability for any consecutive six-month period (measured from the
         first date on which Employee is absent from work due to such disability
         to the same date in the sixth succeeding calendar month, or, if there
         is no such date or such date is not a business day, the next succeeding
         business day) (which shall be referred to as an "Inability
         Termination");

                  (b) by the Company for Cause, which means (i) fraud or
         misappropriation with respect to the business of the Company or
         intentional material damage to the property or business of the Company,
         (ii) willful failure by Employee to perform his duties and
         responsibilities and to carry out his authority, (iii) willful
         malfeasance or misfeasance or breach of fiduciary duty or
         representation to the Company or its stockholders, (iv) willful failure
         to act in accordance with any specific lawful instructions of a
         majority of the Board of Directors of the Company, or (v) conviction of
         Employee of a felony (which shall be referred to as a "For Cause
         Termination");

                  (c) by the Company at any time for any reason other than a For
         Cause Termination, Death Termination or Inability Termination (which
         shall be referred to as a "No Cause Termination");

                  (d) by Employee at any time for any reason other than a
         "Constructive Termination" (as defined below) (which shall be referred
         to as a "Voluntary Termination"); or

                  (e) by Employee within 30 days after the occurrence of one or
         more of the following: (i) any reduction in Employee's base salary,
         unless such reduction is being made in conjunction with an
         across-the-board reduction in the salaries of all senior executives of
         the Company in response to adverse economic conditions, (ii) a material
         breach of this Agreement by the Company, (iii) a material reduction in
         Employee's total compensation and benefits package or (iv) the
         Company's giving notice of the non-renewal of this Agreement at the end
         of the term then in effect pursuant to Paragraph 1 hereof (which shall
         be referred to as a "Constructive Termination"); provided, however, no
         event or circumstance described in clause (ii) or (iii) shall give rise
         to a "Constructive Termination" for purposes of this Agreement unless
         Employee shall have given notice to the Company of Employee's
         determination of the occurrence of an event or circumstance described
         in clause (ii) or (iii) and such event or circumstance shall be
         continuing as of the end of 45 days after the giving of such notice.

For purposes of Paragraph 6(c), no act or failure to act on Employee's part
shall be considered "willful" unless knowingly done or failed to be done by
Employee in bad faith and without the reasonable belief that Employee's action
or omission was in the best interest of the Company.

         7. Termination Procedure.

         (a) Notice of Termination. Any termination of Employee's employment by
the Company or by Employee under Paragraph 6 hereof shall be communicated by
written Notice

                                        3

<PAGE>   4

of Termination to the other party hereto in accordance with Paragraph 13. For
purposes of this Agreement, a "Notice of Termination" shall mean a notice that
indicates the specific termination provision in this Agreement relied upon and
sets forth in reasonable detail the facts and circumstances providing a basis
for termination of Employee's employment under the provision so indicated.

         (b) Termination Date. " Termination Date" shall mean (i) if Employee's
employment is terminated pursuant to Paragraph 6(a) or (b) above, the date on
which a Notice of Termination is given or (ii) if Employee's employment is
terminated pursuant to Paragraph 6(c), (d) or (e) above, 30 days after the date
on which a Notice of Termination is given.

         8. Benefits Upon Termination.

         (a) Termination as a Result of Death, Inability, Voluntary or For Cause
Termination. If Employee's employment under this Agreement is terminated prior
to the expiration of the term of this Agreement as a result of a Death
Termination, an Inability Termination, a Voluntary Termination or a For Cause
Termination, the Company shall pay Employee or, if applicable, Employee's estate
or legal representative, (i) Employee's unpaid base salary under Paragraph 3(a)
accrued to the date on which his employment terminates, (ii) any accrued but
unused vacation and (iii) all vested and accrued benefits earned by Employee
under any employee benefit plans and programs sponsored by the Company in which
Employee participates.

         (b) Termination as a Result of No Cause Termination or Constructive
Termination. If Employee's employment under this Agreement is terminated prior
to the expiration of the term of this Agreement as a result of a No Cause
Termination or a Constructive Termination, the Company shall pay and provide to
Employee the following benefits:

                  (i) Employee's unpaid base salary accrued to the Termination
         Date and any accrued but unused vacation;

                  (ii) base salary for 24 months, based on the rate of base
         salary in effect immediately preceding the Termination Date;

                  (iii) an amount equal to Employee's standard annual bonus
         under Paragraph 3(b); and

                  (iv) continued participation in the benefit plans, programs
         and arrangements described in Paragraphs 4(a) and (b) during the
         severance period described in Paragraph 8(b)(ii) above (other than the
         annual executive physical program, long-term disability plan and
         supplemental retirement income plan); provided, however, that
         participation in such benefit plans, programs and arrangements shall
         cease prior to the expiration of the severance period to the extent
         Employee actually participates in comparable benefit plans, programs or
         arrangements during such period, and Employee shall report any such
         participation to the Company.

                                        4

<PAGE>   5

         In addition, all outstanding stock options granted to Employee under
the Company's stock option plans will immediately vest upon a No Cause
Termination or a Constructive Termination prior to the expiration of the term of
this Agreement and will continue to be fully exercisable until the earlier of 90
days after the Termination Date or the original expiration date of said options.
The Company shall also cause Employee to receive all vested and accrued benefits
earned by Employee under all employee benefit plans and programs sponsored by
the Company in which Employee participates.

         (c) Method of Payment of Severance Compensation. The amount due to
Employee pursuant to Paragraph 8(b)(ii) above shall be paid on a periodic basis
in accordance with the Company's normal pay practice. The amount due to Employee
pursuant to Paragraph 8(b)(iii) above shall be paid in a lump sum upon the
expiration of the severance period described in Paragraph 8(b)(ii).

         9. Covenants of Employee.

         (a) Non-disparagement. Employee shall at all times refrain from taking
any action or making any statements, written or oral, which are intended to and
do disparage the goodwill or reputation of the Company or any of its
subsidiaries or affiliates or any directors or officers thereof or which could
adversely affect the morale of employees of the Company or its subsidiaries.

         (b) Non-Competition. Employee shall not Compete (as hereinafter
defined) with the Company or any of its subsidiaries or affiliates in any way
during the term of his employment with the Company and for the 24 month period
following the Date of Termination (the "Restricted Period"). "Compete" means to
engage in any business activity whatsoever related in any manner or fashion to
any business of the Company or any of its subsidiaries or affiliates. Without
limiting the generality of the foregoing, Employee shall not, during the
Restricted Period, directly or indirectly (whether for compensation or
otherwise), alone or as an agent, principal, partner, officer, employee,
trustee, director, shareholder or in any other capacity, own, manage, operate,
join, control or participate in the ownership, management, operation or control
of, or furnish any capital to, or be connected in any manner with, or provide
any services as a consultant for, any business which Competes with the Company
or any of its subsidiaries of affiliates; provided, however, that
notwithstanding the foregoing, nothing contained in the Agreement shall be
deemed to preclude Employee from owning not more than 5% of the publicly traded
securities of any entity which Competes with the Company.

         (c) Non-Solicitation. Employee covenants and agrees that he will not,
during the Restricted Period, (i) solicit, employ or otherwise engage as an
employee, independent contractor or otherwise, any person who is or was an
employee of the Company or any of its subsidiaries or affiliates at any time
during the 12 month period immediately preceding Employee's Date of Termination,
(ii) induce or attempt to induce any employee of the Company or any of its
subsidiaries or affiliates to terminate such employment or (iii) interfere with
the relationship of the Company or any of its subsidiaries or affiliates with
any person, including any person who, at any time during the 12 month period
immediately preceding Employee's Date of Termination,

                                        5

<PAGE>   6

was an employee, contractor, supplier or customer of the Company or any of its
subsidiaries or affiliates.

         (d) Confidential Information. Employee understands that in the
performance of services hereunder Employee may obtain knowledge of "confidential
information" (as hereinafter defined) relating to the business of the Company
(or of any of its subsidiaries or affiliates). Employee shall not, without the
prior written consent of the Chairman or the Board of Directors of the Company,
either during Employee's employment by the Company or thereafter, (i) use or
disclose any such confidential information outside the Company (or any of its
subsidiary or affiliated companies) except as otherwise required by law, (ii)
publish any article with respect thereto, (iii) except in the performance of
services hereunder, remove from the premises of the Company, or aid in such
removal, any such confidential information or any property or material related
thereto or (iv) sell, exchange or give away or otherwise dispose of any such
confidential information now or hereafter owned by the Company whether or not
the same shall or may have been originated, discovered or developed by Employee.
It is understood that for purposes of this Agreement the term "confidential
information" shall be construed broadly to include all information or
compilations of information which (i) is, or designed to be, used in the
business of the Company (or any of its subsidiaries or affiliates) or results
from its (or their) research or development activities, (ii) is private or
confidential in that it is not generally known or available to the public and
(iii) gives the Company (or any of its subsidiaries or affiliates) an
opportunity to obtain an advantage over competitors who do not know or use it.

         (e) Return of Materials. Upon the termination of Employee's employment,
Employee shall return to the Company all property of the Company in or under
Employee's possession or control, including without limitation all tangible
"confidential information" described in Paragraph 9(d) above. Such return shall
be made at such place in Troy, Michigan as the Company shall specify and shall
be made within 5 days after Employee's Date of Termination.

         (f) Cooperation. During Employee's employment by the Company and
thereafter, Employee shall promptly notify the Company of any threatened,
pending or completed investigation, claim, action, suit or proceeding, whether
civil, criminal, administrative or investigative ("Proceeding"), in which he may
be involved, whether as an actual or potential party or witness or otherwise, or
with respect to which he may receive requests for information, by reason of his
future, present or past association with the Company or any of its subsidiaries
or affiliates. Employee shall cooperate fully with the Company and its
subsidiaries and affiliates in connection with any Proceeding at no expense to
the Company or any of its subsidiaries or affiliates other than the
reimbursement of Employee's reasonable out-of-pocket expenses. Employee shall
not disclose any confidential or privileged information in connection with any
Proceeding without the consent of the Company and shall give prompt notice to
the Company of any request therefor.

         (g) Acknowledgement Regarding Covenants. Executive acknowledges and
agrees that the promises and restrictive covenants set forth in this Paragraph 9
are reasonable and necessary to protect the interest of the Company and
reasonably limited in time, scope and territory. Executive acknowledges that,
given his former position and the information he possesses regarding the Company
and its operations, the business of the Company would be substantially and
materially

                                        6

<PAGE>   7

damaged in the event of any violation of the promises and covenants herein
contained, and the Company shall be entitled (in addition to any other remedy
that may be available to it) to (i) a decree or order for specific performance
of any such promise or covenant and (ii) an injunction restraining the violation
or threatened violation of any such promise or covenant. The covenants of
Employee contain in this Paragraph 9 shall survive the expiration of this
Agreement or the termination of this Agreement by either party.

         10. Release. In consideration of the compensation continuance available
in certain events pursuant to this Agreement, Employee unconditionally releases
and covenants not to sue the Company and its subsidiaries and affiliates and
directors, officers, employees and stockholders thereof, from any and all
claims, liabilities and obligations of any nature pertaining to termination of
employment other than those explicitly provided for by this Agreement including,
without limitation, any claims arising out of alleged legal restrictions on the
Company's rights to terminate its employees, such as any implied contract of
employment or termination contrary to public policy, and Employee shall be
required to provide written confirmation of such release upon his Date of
Termination as a condition precedent to the Company's obligation to provide any
severance benefits under Paragraph 8.

         11. Governing Law. The validity, interpretation and performance of this
Agreement shall be governed by the laws of Michigan, regardless of the laws that
might be applied under applicable principles of conflicts of laws.

         12. Entire Agreement. This Agreement constitutes the entire agreement
and understanding between the parties hereto with respect to the matters
referred to herein and supersedes all prior agreements and understandings
between the parties hereto with respect to the matters referred to herein.

         13. Notice. Any written notice required to be given by one party to the
other party hereunder shall be deemed effective if mailed by certified or
registered mail:

      To the Company:         Collins & Aikman Products Co.
                              5755 New King Court
                              Troy, Michigan  48098
                              Attention:  Mr. Thomas E. Evans,
                                          Chairman and Chief Executive Officer

      To Employee:            Mr. Graham Tompson

                              --------------------------------

                              --------------------------------

or such other address as may be stated in notice given under this Paragraph 13.

         14. Severability. The invalidity, illegality or enforceability of any
provision of this Agreement in any jurisdiction shall not affect the validity,
legality or enforceability of the remainder of this Agreement in such
jurisdiction or the validity, legality or enforceability of this Agreement or
such provision in any other jurisdiction, it being the intent of the parties
hereto that

                                       7

<PAGE>   8

all rights and obligations of the parties hereto under this Agreement shall be
enforceable to the fullest extent permitted by law.

         15. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their personal representatives,
and, in the case of the Company, its successors and assigns, and Paragraph 10
shall also inure to the benefit of the other persons and entities identified
therein; provided, however, that Employee shall not, without the prior written
consent of the Company, transfer, assign, convey, pledge or encumber this
Agreement or any interest under this Agreement. Employee understands that the
assignment of this Agreement or any benefits hereof or obligations hereunder by
the Company to any of its subsidiaries or affiliates or to any purchaser of all
or a substantial portion of the assets of the Company or of any affiliated
company then employing Employee, and the employment of Employee by such
subsidiary or affiliate or by any such purchaser or by any successor of the
Company in a merger or consolidation, shall not be deemed a termination of
Employee's employment for purposes of Paragraphs 6, 7 and 8 or otherwise.

         16. Amendment. This Agreement may be amended or canceled only by an
instrument in writing duly executed and delivered by each party to this
Agreement.

         17. Headings. Headings contained in this Agreement are for or
convenience only and shall not limit this Agreement or affect the interpretation
thereof.

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

                                         /s/ Graham Tompson
                                         -------------------------------------
                                         Graham Tompson

                                         COLLINS & AIKMAN PRODUCTS CO.

                                         By: /s/ Thomas E. Evans
                                             ---------------------------------
                                             Thomas E. Evans, Chairman and Chief
                                             Executive Officer

                                        8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]