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                                                                   EXHIBIT 10.59

                              JPS Industries, Inc.
                     555 North Pleasantburg Drive, Suite 202
                        Greenville, South Carolina 29607

                                  July 31, 2001

Mr. Michael L. Fulbright
620 Halton Road, #9201
Greenville, South Carolina 29607

Dear Mr. Fulbright:

         We are writing with respect to that certain letter agreement between
you and JPS Industries f/k/a JPS Textile Group, Inc. (the "Company"), dated as
of February 28, 1999 (the "Agreement"), pertaining to your employment by the
Company. In accordance with our recent discussions, this letter/agreement amends
the terms of your Agreement as follows (bolded text indicates modifications to
existing Agreement):

1.       Definitions. Unless otherwise specifically defined herein, each term
         used herein that is defined in the Agreement shall have the meaning
         assigned to such term in the Agreement. Each reference to "hereof",
         "hereunder", "herein" and "hereby", and each other similar reference,
         and each reference to "this Agreement" and each other similar reference
         contained in the Agreement, shall from and after the date hereof refer
         to the Agreement as amended hereby.

2.       Amendments to Section 1 (Employment). Section 1 of the Agreement is
         hereby deleted in its entirety and replaced with the following in lieu
         therefor:

                           1.       Employment. The Company agrees to employ
                  you, and you agree to be employed by the Company, commencing
                  on March 1, 1999 (the "Effective Date") and ending on October
                  31, 2003 (unless sooner terminated as hereinafter provided)
                  (the "INITIAL Employment Period"), on the terms and subject to
                  the conditions set forth in this Agreement (the "Agreement");
                  PROVIDED, HOWEVER, THAT THE INITIAL EMPLOYMENT PERIOD, AND THE
                  TERMS AND CONDITIONS OF THIS AGREEMENT, SHALL RENEW AND EXTEND
                  FOR A ONE (1) YEAR PERIOD BEGINNING ON NOVEMBER 1, 2003 AND
                  ENDING ON OCTOBER 31, 2004 (ANY SUCH EXTENSION PERIOD AND THE
                  INITIAL EMPLOYMENT PERIOD ARE COLLECTIVELY REFERRED TO HEREIN
                  AS THE "EMPLOYMENT PERIOD"), WITHOUT ANY FURTHER ACTION BY YOU
                  OR THE COMPANY TO EFFECTUATE SUCH RENEWAL AND EXTENSION,
                  UNLESS (I) YOU OR THE COMPANY PROVIDE WRITTEN NOTICE TO THE
                  OTHER PARTY ON OR BEFORE MAY 5, 2003 INDICATING THAT NO SUCH
                  RENEWAL OR EXTENSION SHALL OCCUR ON NOVEMBER 1, 2003, IN WHICH
                  EVENT THE EMPLOYMENT PERIOD SHALL EXPIRE ON OCTOBER 31, 2003,
                  OR (II) SOONER TERMINATED AS HEREINAFTER


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         PROVIDED. THE NON-RENEWAL REFERENCED IN THE IMMEDIATELY PRECEDING
         SENTENCE SHALL NOT OPERATE TO DEPRIVE YOU OF ANY OF THE COMPENSATION
         PROVIDED FOR IN SECTION 8(D) HEREOF WITH RESPECT TO ANY TERMINATION OF
         YOUR EMPLOYMENT FOLLOWING NOTICE OF NON-RENEWAL, BUT PRIOR TO
         EXPIRATION OF THE EMPLOYMENT PERIOD.

3.       Amendments to Section 3(a)(i) (Base Salary). Section 3(a)(i) of the
         Agreement is hereby deleted in its entirety and replaced with the
         following in lieu therefor:

                           (a)      (i)      Base Salary. During the Employment
                  Period, the Company shall pay you, and you shall accept from
                  the Company for your services, a salary at (A) an initial rate
                  of $550,000 per annum FOR THE PERIOD COMMENCING ON MARCH 1,
                  1999 THROUGH AND INCLUDING OCTOBER 31, 2001, AND (B) A RATE OF
                  $600,000 PER ANNUM FOR THE PERIOD COMMENCING ON NOVEMBER 1,
                  2001 AND THEREAFTER, subject to increase in the Board's sole
                  discretion (the "Base Salary"), payable in accordance with the
                  Company's policy with respect to the compensation of
                  executives. Your Base Salary will not be decreased during the
                  Employment Period.

4.       Amendments to Section 3(a)(ii) (Bonus). Section 3(a)(ii) of the
         Agreement is hereby deleted in its entirety and replaced with the
         following in lieu therefor:

                                    (ii)     Bonus. In addition to your Base
                  Salary, unless you voluntarily terminate your employment for
                  other than Good Reason (as hereinafter defined), or are
                  terminated by the Company for Cause in accordance with the
                  requirements of paragraph 7(c) hereof (as hereinafter
                  defined), you will be eligible to participate in the Company's
                  1999 Management Incentive Bonus Plan (the "1999 Bonus Plan")
                  and receive a bonus (the "Incentive Bonus") based upon the
                  attainment of the performance goals specified therein in an
                  amount calculated by the Board (or its designee) which shall
                  be not less than 50% of your Base Salary and shall not exceed
                  200% of your Base Salary. The Board shall establish a
                  performance-based annual bonus program for senior executives
                  of the Company including you for fiscal years after 1999 (a
                  "Future Bonus Plan") and award you an annual bonus opportunity
                  thereunder which is not less favorable than the opportunity
                  provided pursuant to the 1999 Bonus Plan (i.e., at least 50%
                  of your Base Salary and not more than 200% of your Base
                  Salary) without restricting the discretion of the Board to set
                  reasonable targets and criteria for such incentive
                  compensation. Any bonus plan payment that is to be made for
                  the fiscal year IN WHICH THE EMPLOYMENT AGREEMENT EXPIRES
                  PURSUANT TO SECTION 1, shall be made to you on or before
                  January 31 OF THE YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH
                  THE EMPLOYMENT AGREEMENT SO EXPIRES.


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5.       Amendments to Section 7(d) (Termination by You). The first paragraph of
         Section 7(d) of the Agreement is hereby deleted in its entirety and
         replaced with the following in lieu therefor:

                           (d)      Termination by You. You may terminate your
                  employment hereunder for Good Reason. For purposes of this
                  Agreement, "Good Reason" shall mean (A) any material
                  diminution of your duties or status from that provided for in,
                  or any material limitation of your powers in any respect not
                  contemplated by, paragraph 2 hereof; provided, however that
                  you first deliver written notice thereof to the Board and the
                  Company shall have failed to cure such diminution or
                  limitation within thirty (30) days after receipt of such
                  written notice or (B) any material failure by the Company to
                  comply with paragraphs 3 through 5 hereof; provided, however
                  that you first deliver written notice thereof to the Board and
                  the Company shall have failed to cure such failure within ten
                  (10) days after receipt of such written notice or (C) your
                  election to terminate your employment WITHIN NINETY (90) DAYS
                  following a Change in Control (as hereinafter defined);
                  provided, however that you first deliver written notice
                  thereof to the Board or (D) your failure to be elected to the
                  Board during the Employment Period.

6.       Amendments to Section 8(d) (Other Than for Cause or For Good Reason).
         Section 8(d) of the Agreement is hereby deleted in its entirety and
         replaced with the following in lieu therefor:

                           (d)      Other Than for Cause or For Good Reason. If
                  the Company shall terminate your employment other than
                  pursuant to paragraphs 7(b) or 7(c) hereof or if you shall
                  terminate your employment for Good Reason pursuant to
                  paragraph 7(d) hereof, then:

                                    (i)      The Company shall continue to pay
                  you your Base Salary without interest through the later of (A)
                  October 31, 2003 and (B) TWO YEARS from the Date of
                  Termination, in accordance with normal payroll practices;
                  provided, however, that in the event of your death prior to
                  the expiration of payment hereunder, your estate or your
                  beneficiary shall have the right to elect to receive the
                  remaining amount hereunder in a lump sum payment; and
                  provided, further, that IF YOUR EMPLOYMENT IS TERMINATED BY
                  (A) THE COMPANY FOR ANY REASON OTHER THAN PURSUANT TO
                  PARAGRAPHS 7(B) OR 7(C) HEREOF or (B) YOU FOR GOOD REASON,
                  THEN you shall have the option to require the Company to pay
                  you the full amount required by this paragraph 8(d)(i) in one
                  lump sum on the business day immediately following the Date of
                  Termination [FOR AVOIDANCE OF DOUBT, THE AGGREGATE AMOUNT
                  PAYABLE UNDER THIS SUBSECTION IS $1.2 MILLION ($600,000 ANNUAL
                  SALARY X 2)];

                                    (ii)     The Company shall continue to pay
                  you, at the same time payable to other participants in the
                  1999 Bonus Plan or any Future


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                  Bonus Plan, an amount equal to the sum of (A) any bonus earned
                  as of the Date of Termination under the 1999 Bonus Plan or any
                  Future Bonus Plan for a fiscal year ending prior to the Date
                  of Termination but not paid as of such date, (B) a pro rata
                  portion (based on the number of days worked) of the target
                  bonus payable under the 1999 Bonus Plan (which target shall be
                  50% of your Base Salary) or any Future Bonus Plan in effect
                  for the fiscal year in which your Date of Termination occurs
                  (determined without regard to whether the performance goals
                  established under the applicable program are met) and (C) an
                  amount equal to your target bonus (which target shall be 50%
                  of your Base Salary) under the 1999 Bonus Plan or any Future
                  Bonus Plan in effect for the fiscal year in which your Date of
                  Termination occurs (determined without regard to whether the
                  performance goals established under the applicable program are
                  met), multiplied by TWO, provided, however, that IF YOUR
                  EMPLOYMENT IS TERMINATED BY (A) THE COMPANY FOR ANY REASON
                  OTHER THAN PURSUANT TO PARAGRAPHS 7(B) OR 7(C) HEREOF OR (B)
                  YOU FOR GOOD REASON, then you shall have the option to require
                  the Company to pay you the full amount required by this
                  paragraph 8(d)(ii) in one lump sum on the business day
                  immediately following the Date of Termination [FOR AVOIDANCE
                  OF DOUBT, THE AGGREGATE AMOUNT PAYABLE UNDER THIS SUBSECTION
                  IS $600,000 ($300,000 TARGET BONUS X 2)];

                                    (iii)    You shall immediately become fully
                  vested in any stock options previously granted to you
                  hereunder or otherwise, with such options remaining
                  exercisable for one year from the date of your termination of
                  employment; and

                                    (iv)     The Company shall maintain in full
                  force and effect, for your continued benefit through (A) the
                  later of October 31, 2003 and (B) TWO YEARS from the Date of
                  Termination, all employee benefit plans and programs providing
                  medical, dental and/or life insurance benefits in which you
                  (and, in the case of medical and dental insurance, your
                  spouse) were entitled to participate immediately prior to the
                  Date of Termination; provided, however that your continued
                  participation is possible under the general terms and
                  provisions of such plans and programs. In the event that your
                  participation in any such plan or program is barred, the
                  Company shall provide you (and your spouse) with comparable
                  benefits under a mirror benefit plan. Notwithstanding the
                  above, if you are employed by a new employer and you (and your
                  spouse) are eligible to and have elected to receive comparable
                  coverage from such employer (including the waiver of any
                  pre-existing condition limitation) at a comparable cost to
                  you, you shall no longer be eligible to receive coverage under
                  this paragraph.


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7.       Amendments to Section 9(a) (Restrictive Covenants and Confidentiality;
         Injunctive Relief). Section 9(a) of the Agreement is hereby deleted in
         its entirety and replaced with the following in lieu therefor:

                           (a)      You agree, as a condition to the performance
                  by the Company of its obligations hereunder, particularly its
                  obligations under paragraphs 3 through 5 hereof, that from the
                  Effective Date through THE LATER OF (X) DATE ON WHICH THE
                  EMPLOYMENT PERIOD EXPIRES PURSUANT TO SECTION 1 HEREOF OR (Y)
                  OCTOBER 31, 2003 (THE "NON-COMPETE EXPIRATION DATE"), and
                  during the additional period, if any, extending until the due
                  date of the final payment owed to you by the Company following
                  any termination of your employment by the Company other than
                  pursuant to paragraphs 7(b) or 7(c) hereof or by you for Good
                  Reason pursuant to paragraph 7(d) hereof (but without regard
                  to any election by you to take any such payment in a lump
                  sum), and, with respect to clauses (i) and (ii) below but not
                  clause (iii) below, during the further period of ONE (1) YEAR
                  following THE NON-COMPETE EXPIRATION DATE or the end of any
                  such additional period, you shall not, without the prior
                  written approval of the Board, directly or indirectly through
                  any other person, firm or corporation:

8.       Amendments to Section 12 (Notice). Section 12 of the Agreement is
         hereby deleted in its entirety and replaced with the following in lieu
         therefor:

                           12.      Notice. For purposes of this Agreement,
                  notices and all other communications provided for shall be in
                  writing and shall be deemed to have been duly given when
                  delivered or mailed by United States registered or certified
                  mail, return receipt requested, postage prepaid, addressed as
                  follows:

                           If to you:

                                  Michael L. Fulbright
                                  620 Halton Road, #9201
                                  Greenville, South Carolina 29607

                           with a copy to:

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                           If to the Company:

                                  JPS Industries, Inc.
                                  555 North Pleasantburg Drive, Suite 202
                                  Greenville, South Carolina 29607
                                  Attention: Board of Directors

                           with a copy to:

                                  Jones, Day, Reavis & Pogue
                                  3500 SunTrust Plaza
                                  303 Peachtree Street, N.E.
                                  Atlanta, Georgia 30308-3242
                                  Attention: Lizanne Thomas

                  or to such other address as any party may have furnished to
                  the other in writing in accordance herewith, except that
                  notices of change of address shall be effective only upon
                  receipt.

9.       Effect of Amendment. Except as amended hereby, the terms of the
         Agreement shall remain in full force and effect without change.

         Assuming this letter correctly sets forth our agreement regarding
amendments to the Agreement, please sign duplicate acknowledgment copies of same
and return one to me.

                                    Very truly yours,

                                    JPS INDUSTRIES, INC.

                                    By:      /s/ Charles R. Tutterow
                                       ----------------------------------------
                                    Title:   Executive Vice President and Chief
                                             Financial Officer

This letter correctly sets forth the amendments to terms and conditions of the
Agreement pertaining to my employment by the Company.


/s/ Michael L. Fulbright
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Michael L. Fulbright