EXHIBIT 10.64

First Union National Bank

SC8467
Post Office Box 1329
Greenville, South Carolina 29602

[FIRST UNION LOGO]

On April 1, 2002 First Union National Bank changed its name to Wachovia Bank,
National Association.

December 31, 2002

Mr. Charles R. Tutterow

Executive Vice President
JPS Industries, Inc.
555 North Pleasantburg Drive
Suite 202
Greenville, SC 29607

Re:     Obligor # 4794862899, Obligation # 1331016

Dear Chuck:

      Reference is made to that certain Revolving Credit and Security Agreement
dated as of May 9, 2001, between JPS Industries, Inc. (the “Borrower”) and
Wachovia Bank, National Association (the “Bank”). The Revolving Credit and
Security Agreement and all other documents executed and delivered in connection
therewith are collectively referred to herein as the “Loan Documents”. All
capitalized terms used but not defined herein shall have the meanings assigned
in the Loan Documents.

      The document provides:

Tangible Net Worth.     Borrower shall at all times, maintain, on a consolidated
basis, a Tangible Net Worth of at least $48,000,000. “Total Liabilities” shall
mean all liabilities of Borrower, including capitalized leases and all reserves
for deferred taxes and other deferred sums appearing on the liabilities side of
a balance sheet of Borrower in accordance with GAAP applied on a consistent
basis. “Tangible Net Worth” shall mean the total assets (including goodwill)
minus Total Liabilities. For purposes of this computation, the aggregate amount
flowing from any officers, stockholders or other Affiliates of Borrower shall be
subtracted from total assets, and Total Liabilities shall include debt fully
subordinated to Bank on terms and conditions acceptable to Bank.

      The Bank has determined that the Borrower has violated the
above-referenced provision due to the following:

  Per the quarterly compliance report dated 11/02/2002, Tangible Net Worth is
$14,031,960.00

      The Borrower has requested the Bank’s waiver, and the Bank does hereby
waive the Borrower’s default under this provision through 11/02/2003, subject to
Borrower’s execution of and return of this letter. This waiver is limited to the
default recited above and shall not be construed to be a waiver of any
subsequent default under the referenced provision, or of any existing or future
defaults under any other provision of any Loan Document.

544377

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Bank and Borrower agree to reduce the principal amount of the Line of Credit to
$25,000,000.00, which will be evidenced by a separate modification agreement.

      The Borrower, by signature below, represents and warrants that there exist
no defaults or event of default under the Loan Documents other than those
specifically waived herein, that the Loan Documents are in full force and
effect, and that Borrower does not have any defenses to its obligations under
the Loan Documents nor any claims against Bank.

      Please evidence your acceptance of the terms of this waiver by signing and
returning to the Bank a copy of this letter bearing original authorized
signature of each of the parties indicated.

  Very Truly Yours,     WACHOVIA BANK, NATIONAL ASSOCIATION

  By:  /s/ CLAIRE M. RIPLEY

 

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  Claire M. Ripley   Vice President   Risk Management

ACCEPTED AND AGREED TO:

JPS Industries, Inc.

      By:   /s/ Charles R. Tutterow   By: 

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            Name:  Charles R. Tutterow               Name:             Title:
Executive VP & CFO               Title:   Date:  12/31/02   Date: 

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