UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re COLLINS & AIKMAN CORPORATION, et al., Debtors.

) ) ) ) ) (Jointly Administered) _________________________________________ ) STIPULATION OF SETTLEMENT RELATING TO FINAL FEE APPLICATION OF AKIN GUMP STRAUSS HAUER & FELD LLP (a) The C&A Post-Consummation Trust (the Post-Consummation Trust), by its counsel, Wachtell, Lipton, Rosen & Katz and Dykema Gossett PLLC, (b) Judy A. ONeill, of Foley & Lardner LLP, in her capacity as fee examiner (the Fee Examiner), and (c) Akin Gump Strauss Hauer & Feld LLP (Akin), Co-Counsel for the Official Committee of Unsecured Creditors of Collins & Aikman Corporation, et al., have agreed upon this stipulation (the Stipulation) resolving the objection of the Post-Consummation Trust to the Application of Akin Gump Strauss Hauer & Feld LLP, Co-Counsel for the Official Committee of Unsecured Creditors of Collins & Aikman Corporation, et al., for Final Allowance of Compensation and for the Reimbursement of Expenses for Services Rendered During the Period from May 26, 2005 through October 12, 2007 (the Final Fee Application). RECITALS WHEREAS, by Order of this Court dated May 24, 2007, Judy A. ONeill was appointed as Fee Examiner in these cases; Case No. 05-55927 (SWR) Chapter 11 Honorable Steven W. Rhodes

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WHEREAS, the Chapter 11 Plan in these cases became effective on October 12, 2007 (the Effective Date); WHEREAS, on October 22, 2007, the Fee Examiner filed her final report (the Report) with the Court regarding fees and expenses incurred during these cases by various professionals, including Akin; WHEREAS, on November 12, 2007, Akin filed its Final Fee Application; WHEREAS, Akin has submitted to the Post-Consummation Trust two invoices for services rendered after the Effective Date: (i) an invoice dated November 7, 2007, relating to the period October 13, 2007 through October 31, 2007, for fees in the amount of $17,187.00 (the October Fees) and disbursements in the amount of $143.49 (the October Disbursements), and (ii) an invoice dated December 3, 2007, relating to the period November 1, 2007 through November 26, 2007, for fees in the amount of $16,802.00 (the November Fees) and disbursements in the amount of $3,239.94 (the November Disbursements); WHEREAS, on December 12, 2007, the Post-Consummation Trust filed an objection to the Final Fee Application urging that more than $673,796 of Akins requested fees and expenses not be allowed; WHEREAS, during the consultation period set forth in the Order Appointing Fee Examiner, the Post-Consummation Trust, the Fee Examiner, and Akin entered into negotiations, which have continued and culminated in a settlement (the Settlement) in respect of all issues related to Akins fees and expenses;

WHEREAS, the Fee Examiner supports the Settlement and believes that any concerns regarding Akins fees and expenses that are raised in the Report are adequately addressed herein; STIPULATION 1. Akin hereby agrees (a) to the allowance of its requested fees and expenses for the

period ending on the Effective Date in the amount of $6,099,769.15, which represents a $375,000 reduction in the amount requested in the Final Fee Application, (b) to withdraw the Final Fee Application to the extent it requests more than $6,099,769.15 in fees and disbursements, and (c) that the Post-Consummation Trust shall not be required to pay the November Fees, or any other amount to Akin for fees and disbursements attributable to periods after the Effective Date other than the October Fees, the October Disbursements, and the November Disbursements, in each case subject to the reduction described in clause (a) of this sentence being the only reduction in the Final Fee Application. 2. The Post-Consummation Trust hereby agrees to (a) support allowance of the Final

Fee Application as reduced in accordance with paragraph 1 above, and (b) pay to Akin the October Fees, the October Disbursements, and the November Disbursements following entry of an Order consistent with this Stipulation. 3. The Post-Confirmation Trust, Akin and the Fee Examiner approve the form of

Order annexed hereto as Exhibit A.

Dated: January 23, 2008

_/s/ Michael S. Stamer_________________ Michael S. Stamer AKIN GUMP STRAUSS HAUER & FELD, LLP 590 Madison Avenue New York, New York 10022 Telephone: (212) 872-1000 Facsimile: (212) 872-1001 Attorneys for the Official Committee of Unsecured Creditors of Collins & Aikman Corporation, et al.

/s/ Ronald L. Rose________________________ Ronald L. Rose DYKEMA GOSSETT PLLC 400 Renaissance Center Detroit, MI 48243 Telephone: (313) 568-6553 Facsimile: (313) 568-6893 Harold S. Novikoff WACHTELL, LIPTON, ROSEN & KATZ 51 West 52nd Street New York, New York 10019 Telephone: (212) 403-1000 Facsimile: (212) 403-2000 Attorneys for the C&A Post-Consummation Trust

_/s/ Judy A. ONeill___________________ Judy A. ONeill, as Fee Examiner FOLEY & LARDNER LLP One Detroit Center 500 Woodward Avenue, Suite 2700 Detroit, Michigan 48226 Telephone: (313) 234-7100 Facsimile: (313) 234-2800

EXHIBIT A UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In re COLLINS & AIKMAN CORPORATION, et al., Debtors. ) ) ) ) ) (Jointly Administered) _________________________________________ ) ORDER APPROVING APPLICATION OF AKIN GUMP STRAUSS HAUER & FELD LLP, CO-COUNSEL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF COLLINS & AIKMAN CORPORATION, ET AL., FOR FINAL ALLOWANCE OF COMPENSATION AND FOR THE REIMBURSEMENT OF EXPENSES FOR SERVICES RENDERED DURING THE PERIOD FROM MAY 26, 2005 THROUGH OCTOBER 12, 2007 Upon the Application of Akin Gump Strauss Hauer & Feld LLP, Co-Counsel for the Official Committee of Unsecured Creditors of Collins & Aikman Corporation, et al., for Final Allowance of Compensation and for the Reimbursement of Expenses for Services Rendered During the Period from May 26, 2005 through October 12, 2007 (the Final Fee Application) [Docket No. 8513] and the Stipulation of Settlement Relating to Final Fee Application of Akin Gump Strauss Hauer & Feld LLP, among the C&A Post-Consummation Trust, Judy ONeill, as Fee Examiner, and Akin Gump Strauss Hauer & Feld LLP (the Stipulation); it appearing that the relief requested is in the best interest of the Debtors estates, their creditors and other parties in interest; it appearing that the Court has jurisdiction over this matter pursuant to 28 U.S.C. 157 and 1334; it appearing that this proceeding is a core proceeding pursuant to 28 U.S.C. 157(b)(2); it appearing that venue of this proceeding and this Final Fee Application in this District is proper pursuant to 28 U.S.C. 1408 and 1409; it appearing that notice of this Final Case No. 05-55927 (SWR) Chapter 11 Honorable Steven W. Rhodes

Fee Application and the opportunity for a hearing on this Final Fee Application was appropriate under the particular circumstances and that no other or further notice need be given; and after due deliberation and sufficient cause appearing therefor, it is hereby ORDERED: 1. 2. The Final Fee Application is granted, on a final basis. The Court allows an administrative expense claim for Akin Gump Strauss Hauer

& Feld LLP in the amount of $6,099,769.15 for necessary professional services rendered and expenses incurred during the period commencing May 26, 2005 through and including October 12, 2007. 3. Pursuant to the Stipulation, the Court allows an administrative expense claim for

Akin Gump Strauss Hauer & Feld LLP in the amount of $20,570.43, attributable to fees earned and expenses incurred after October 12, 2007. 4. The C&A Post-Consummation Trust is authorized and directed to pay all amounts

approved herein and agreed upon in the Stipulation to the extent they have not previously been paid. 5. The terms and conditions of this Order shall be immediately effective and

enforceable upon its entry. 6. The Court retains jurisdiction with respect to all matters arising from or related to

the implementation of this Order.

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