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                                                                  EXHIBIT 10.25

                             JPS TEXTILE GROUP, INC.
                     555 NORTH PLEASANTBURG DRIVE, SUITE 202
                        GREENVILLE, SOUTH CAROLINA 29607

                                                                 October 9, 1997

Mr. David H. Taylor
105 Holbrook Trail
Greenville, South Carolina 29605

Dear David:

     We are writing with respect to your employment by JPS Textile Group, Inc.
(the "Company") as Executive Vice President--Finance and Secretary of the
Company. The Company acknowledges and recognizes the value of your experience
and abilities to the Company since the beginning of your employment with the
Company, and desires to continue to retain and make secure for itself such
experience and abilities on the terms and subject to the conditions set forth in
this agreement (the "Agreement").

     1.  Employment. The Company agrees to employ you and you agree to be
employed by the Company commencing on the consummation of the Joint Plan of
Reorganization of the Company and its wholly owned subsidiary, JPS Capital
Corp., dated October 9, 1997 (the "Effective Date") and ending on the third
anniversary thereof (unless sooner terminated as hereinafter provided) (the
"Employment Period"), on the terms and subject to the conditions set forth in
this Agreement; provided, however, that commencing on the third anniversary of
the Effective Date and each anniversary thereafter, the Employment Period shall
automatically be extended for one additional year (the "Extended Employment
Period") unless not later than the end of the Employment Period or the Extended
Employment Period, as the case may be, the Company or you shall have given
written notice to the other not to extend the Employment Period or any Extended
Employment Period. Unless specifically provided to the contrary, the Employment
Period shall be deemed to include any Extended Employment Period.

     2.  Duties. (a) You shall continue to be nominated as a director of the
Company, subject to your election thereto by the Board of Directors of the
Company (the "Board") or the stockholders of the Company. In addition, you shall
be employed as the Executive Vice President--Finance and Secretary of the
Company. In such capacities, you shall serve as a senior executive officer of
the Company and shall have the duties and responsibilities prescribed for such
positions by the By-Laws of the Company, and shall have such other duties and
responsibilities as may from time to time be prescribed by the Board and are
customarily performed by someone in your position, provided that such duties and
responsibilities are consistent with your positions as Executive Vice
President--Finance and Secretary of the Company. In the performance of your
duties, you shall be subject to the supervision and direction of the Chief
Executive Officer of the Company.

     (b) Subject to the terms of your employment hereunder, you shall devote
such time as is reasonably necessary to the proper performance of your duties
and responsibilities as Executive Vice President--Finance and Secretary of the
Company. You hereby represent and warrant to the Company that, except as
described above, you have no obligations under any existing employment or
service agreement and that your performance of the services required of you
hereunder will not conflict with your other existing obligations described
above.

     3.  Compensation.

     (a) (i) Base Salary. During the term of your employment hereunder, the
Company shall pay you, and you shall accept from the Company for your services,
a salary at the rate of not less than $225,000 per year (the "Base Salary"),
payable in accordance with the Company's policy with respect to the compensation
of executives.





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Mr. David H. Taylor
Page 2



The Board shall annually review your performance and determine, in its sole
discretion, whether or not to increase your Base Salary and, if so, the amount
of such increase.

         (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 (as hereinafter
     defined), you will be eligible to participate in the 1997 Management
     Incentive Bonus Plan (the "1997 Bonus Plan") and receive a bonus in an
     amount and based upon the attainment of the performance goals specified
     therein. The Board shall establish a performance-based annual bonus program
     for senior executives of the Company including you for fiscal years after
     1997 (a "Future Bonus Plan") and award you an annual bonus opportunity
     thereunder which is not less favorable than the opportunity provided
     pursuant to the 1997 Bonus Plan without restricting the discretion of the
     Board to set reasonable targets and criteria for such incentive
     compensation.

         (iii) Retention Grant. In addition to your Base Salary, you will
     receive on the Effective Date a cash payment in the amount of $163,694 and
     20,984 shares of common stock of the Company.

         (iv)  Incentive Compensation and Other Plans. During the term of your
     employment hereunder, you shall participate in any incentive compensation
     (including stock options, restricted stock and/or other long-term incentive
     compensation), deferred compensation, savings and retirement plans,
     practices, policies and programs as adopted and approved by the Board from
     time to time.

     (b) Reimbursement of Expenses. During your employment, you will be entitled
to receive prompt reimbursement for all reasonable expenses incurred by you in
performing your services hereunder, provided that you properly account therefor
in accordance with Company policy.

     4.  Vacations. During your employment, you shall be entitled to reasonable
vacations from time to time in accordance with the regular procedures of the
Company governing senior executives. You shall also be entitled to all paid
holidays given by the Company to its senior executives.

     5.  Participation in Benefit Plans; Automobile.

     (a) Benefit Plans. You shall be entitled to participate in and to receive
benefits under all the Company's employee benefit plans and arrangements in
effect on the date hereof, and you shall also be entitled to participate in or
receive benefits under any pension or retirement plan, savings plan, or
health-and-accident plan made available by the Company in the future to its
senior executives and other key management employees, subject to and on a basis
consistent with the terms, conditions and overall administration of such plans
and arrangements and provided that you meet the eligibility requirements
thereof.

     (b) Automobile. You shall be entitled to the use of an automobile supplied
by the Company. If you choose to use such automobile, the cost of insurance,
repair and maintenance shall be borne by the Company. If you elect not to accept
a Company automobile, you shall receive an annual payment of Five Thousand Six
Hundred Dollars ($5,600) in lieu of such automobile.

      6. Other Offices. You further agree to serve without additional
compensation, if elected or appointed thereto, as an officer or director of any
of the Company's subsidiaries or affiliates.




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Mr. David H. Taylor
Page 3



     7.   Termination.

     (a)  Death.   Your employment hereunder shall terminate upon your death.

     (b)  Disability. In the event of your permanent disability (as hereinafter
defined) during the term of your employment hereunder, the Company shall have
the right, upon written notice to you, to terminate your employment hereunder,
effective upon the giving of such notice. For purposes hereof, "permanent
disability" shall be defined as any physical or mental disability or incapacity
which renders you incapable of fully performing the services required of you in
accordance with your obligations hereunder for a period of 150 consecutive days
or for shorter periods aggregating 150 days during any period of twelve (12)
consecutive months.

     (c) Cause. The Company may terminate your employment hereunder for 
"Cause."  For purposes hereof, termination for "Cause" shall mean termination
after:

         (i)   your violation of any of the provisions of paragraph 9 hereof;

         (ii)  your commission of an intentional act of fraud, embezzlement,
     theft or dishonesty against the Company or its affiliates;

         (iii) your conviction of (or pleading by you of nolo contendere to) any
     crime which constitutes a felony or misdemeanor involving moral turpitude
     or which might, in the reasonable opinion of the Company, cause
     embarrassment to the Company; or

         (iv)  the gross neglect or willful failure by you to perform your 
     duties and responsibilities in all material respects as set forth in
     Paragraph 2 thereof, if such breach of duty is not cured within 30 days
     after written notice thereof to you by the Board.

For purposes of clause (iv), no act, or failure to act, on your part shall be
deemed "willful" unless done, or omitted to be done, by you not in good faith
and without reasonable belief that your act, or failure to act, was in the best
interest of the Company.

     (d) Termination by You. You may terminate your employment hereunder for
Good Reason. For purposes of this Agreement, "Good Reason" shall mean (A) any
assignment to you of any duties (other than incident to a promotion) materially
different than or in addition to those contemplated by, or any limitation of
your powers in any respect not contemplated by, paragraph 2 hereof, provided
that you first deliver written notice thereof to the Chairman of the Board and
the Company shall have failed to cure such non-permitted assignment or
limitation within thirty (30) days after receipt of such written notice, (B) a
reduction in your rate of base salary or the failure to maintain incentive bonus
arrangements substantially similar in earnings potential to those in effect on
the Effective Date, or a material reduction in your fringe benefits or any other
material failure by the Company to comply with paragraphs 3 through 5 hereof,
provided that you first deliver written notice thereof to the Chairman of the
Board and the Company shall have failed to cure such reduction or failure within
thirty (30) days after receipt of such written notice, (C) your being required
to relocate your principal residence from its existing location without your
consent, or (D) upon notice by the Company as set forth in paragraph 1 hereof
not to extend the Employment Period.

     For purposes of this Agreement, a "Change in Control" means the occurrence
     of any one of the following events following the Effective Date (other than
     the consummation of the Joint Plan of Reorganization of the Company and its
     wholly owned subsidiary, JPS Capital Corp.): (a) any person or other entity
     (other than any of the Company's subsidiaries), including any person as
     defined in Section 13(d)(3) of the Securities



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Mr. David H. Taylor
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     Exchange Act of 1934, as amended (the "Exchange Act"), becoming the
     beneficial owner, as defined in Rule 13d-3 of the Exchange Act, directly or
     indirectly, of more than fifty percent (50%) of the total combined voting
     power of all classes of capital stock of the Company ordinarily entitled to
     vote for the election of directors of the Company, (b) the sale of all or
     substantially all of the property or assets of the Company (other than a
     sale to any of the Company's subsidiaries), (c) the consolidation or merger
     of the Company with another corporation (other than with any of the
     Company's subsidiaries or in which the Company is the surviving
     corporation), the consummation of which would result in the shareholders of
     the Company immediately before the occurrence of the consolidation or
     merger owning, in the aggregate, less than 50% of the voting stock of the
     surviving entity immediately following the occurrence of such consolidation
     or merger, or (d) a change in the Board occurring with the result that the
     members of the Board on the Effective Date (the "Incumbent Directors") no
     longer constitute a majority of such Board, provided that any person
     becoming a director whose election or nomination for election was supported
     by a majority of the Incumbent Directors (other than you if you are a
     Director) shall be considered an Incumbent Director for purposes hereof.

     (e) Notice. Any termination by the Company pursuant to paragraphs 7(b) or
7(c) above or by you pursuant to paragraph 7(d) above shall be communicated by
written Notice of Termination to the other party hereto. For the purposes
hereof, a "Notice of Termination" shall mean a notice which shall indicate the
specific termination provision in this Agreement relied upon and shall set forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of your employment under the provision so indicated.

     (f) Date of Termination. "Date of Termination" shall mean (i) if your
employment is terminated by your death, the date of your death, and (ii) if your
employment is terminated for any other reason, the date on which a Notice of
Termination is given.

     8.  Compensation Upon Termination of Employment or During Disability.

     Subject to paragraph 8(e) below:

     (a) Death. If your employment shall be terminated by reason of your death,
the Company shall pay or grant, to such person as you shall designate in a
notice filed with the Company, or, if no such person shall be designated, to
your estate as a lump sum death benefit, (i) an amount equal to any accrued but
unpaid Base Salary at the time of your death, plus an additional payment equal
to your Base Salary for the period from such date through the end of the month
following the month in which you die, (ii) an amount equal to any accrued but
unpaid bonus under the 1997 Bonus Plan or any bonus payable pursuant to any
Future Bonus Plans, to the extent earned but not paid with respect to any year
prior to the year in which your death occurs, and (iii) a pro rata portion
(based on the number of days worked) of the bonus payable under the 1997 Bonus
Plan or any Future Bonus Plan in effect for the year in which your death occurs
based upon the assumption that the performance goals established under the
applicable program with respect to the entire year in which your death occurs
are met. In addition, you shall retain all stock options that are vested in
accordance with the terms of the stock option plan and grant letter controlling
such stock options, with such options remaining exercisable for six months from
the date of your death and you shall receive such additional benefits as may be
provided by the then existing plans, programs and/or arrangements of the
Company. This amount and these benefits shall be exclusive of and in addition to
any payments your widow, beneficiaries or estate may be entitled to receive
pursuant to any pension or employee benefit plan maintained by the Company. Your
designated beneficiary or the executor of your estate, as the case may be, shall
accept the payment provided for in this paragraph 8 in full discharge and
release of the Company of and from any further obligations under this Agreement.





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Mr. David H. Taylor
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     (b) Disability. During any period that you fail to perform your duties
hereunder as a result of incapacity due to physical or mental illness, you shall
continue to receive your full Base Salary until your employment is terminated
pursuant to paragraph 7(b) hereof. If your employment is terminated by the
Company pursuant to paragraph 7(b), the Company shall pay to you in a lump sum
payment, an amount equal to (i) any accrued but unpaid bonus under the 1997
Bonus Plan or any bonus payable pursuant to any Future Bonus Plans, to the
extent earned but not paid with respect to any year prior to the year in which
your disability occurs; and (ii) a pro rata portion (based on the number of days
worked) of the bonus payable under the 1997 Bonus Plan or any Future Bonus Plan
in effect for the year in which your disability occurs based upon the assumption
that the performance goals established under the applicable program with respect
to the entire year in which your disability occurs are met. In addition, you
shall retain all stock options that are vested in accordance with the terms of
the stock option plan and grant letter controlling such stock options, with such
options remaining exercisable for six months from the date of your disability
and you shall receive such additional benefits as may be provided by the then
existing plans, programs and/or arrangements of the Company. During any such
period and thereafter you shall continue to bear the obligations provided for in
paragraph 9 below in accordance with the terms of such paragraph 9.

     (c) Cause or Other Than Good Reason. If your employment shall be terminated
for Cause or you shall terminate your employment other than for Good Reason, the
Company shall be discharged and released of and from any further obligations
under this Agreement except for any Base Salary through the Date of Termination
or the date on which you terminate your employment at the rate in effect at the
time Notice of Termination is given or the date on which you terminate your
employment, to the extent required by law. Thereafter you shall continue to have
the obligations provided for in paragraph 9 below. Nothing contained herein
shall be deemed to be a waiver by the Company of any rights that it may have
against you in respect of your actions which gave rise to the termination of
your employment for Cause or for any reason other than for Good Reason.

     (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, then:

         (i)  The Company shall continue to pay you your Base Salary, at the 
     rate in effect at the time that the Notice of Termination is given in
     accordance with paragraph 7(e) hereof, without interest through the later
     of (A) the third anniversary of the Effective Date and (B) one year 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 beneficiary shall receive the remaining
     amount hereunder in a lump sum payment;

         (ii) The Company shall pay you an amount equal to the sum of (A) any
     bonus earned as of the Date of Termination under the 1997 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 (not in excess of fifty percent (50%)
     of your Base Salary) payable under the 1997 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) and (C) an amount equal to your
     target bonus (not in excess of fifty percent (50%) of your Base Salary)
     under the 1997 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 (1) if the Date of Termination is during the initial
     three year Employment Period, the greater of (x) the number (not in excess
     of three) of years and fractions of years remaining in the initial three
     year Employment Period or (y) one or (2) if the Date of Termination is
     during any Extended Employment Period, one;





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Mr. David H. Taylor
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         (iii) You shall become fully vested in any stock options, with such
     options remaining exercisable for six months from the date of your
     termination of employment; and

         (iv)  The Company shall maintain in full force and effect, for your
     continued benefit for twenty-four months after termination of employment,
     all employee benefit plans and programs providing health and/or life
     insurance benefits in which you were entitled to participate immediately
     prior to the Date of Termination provided 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 with comparable benefits under a
     mirror benefit plan. Notwithstanding the above, if you are employed by a
     new employer and are eligible 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.

     (e) Parachute Payment. Notwithstanding anything herein to the contrary, if
any of the payments or benefits received or to be received by you in connection
with a Change in Control or your termination of employment (whether such
payments or benefits are provided pursuant to the terms of this Agreement or any
other plan, arrangement or agreement with the Company, any person whose actions
result in a Change in Control or any person affiliated with the Company or such
person) (such payments or benefits being hereinafter referred to as the "Total
Payments") would be subject to the excise tax (the "Excise Tax") imposed under
Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code"), then
the payments under this paragraph 8 hereof shall be reduced (by the minimal
amount necessary) so that no portion of the Total Payments is subject to the
Excise Tax.

     For purposes of determining whether any of the Total Payments will be
subject to the Excise Tax and the amount of such Excise Tax, (i) all of the
Total Payments shall be treated as "parachute payments" (within the meaning of
Section 280G(b)(2) of the Code) unless, in the opinion of tax counsel (the "Tax
Counsel") selected by the Company and reasonably acceptable by you, such
payments or benefits (in whole or in part) do not constitute parachute payments,
including by reason of Section 280G(b)(4)(A) of the Code, (ii) all "excess
parachute payments" within the meaning of Section 280G(b)(1) of the Code shall
be treated as subject to the Excise Tax unless, in the opinion of Tax Counsel,
such excess parachute payments (in whole or in part) represent reasonable
compensation for services actually rendered (within the meaning of Section
280G(b)(4)(B) of the Code) in excess of the "base amount" (as defined in Section
280G(b)(3) of the Code) allocable to such payment, or are otherwise not subject
to the Excise Tax, and (iii) the value of any noncash benefits or any deferred
payment or benefit shall be determined by Tax Counsel in accordance with the
principles of Sections 280G(d)(3) and (4) of the Code.

     9.  Restrictive Covenants and Confidentiality; Injunctive Relief.

     (a) You agree, as a condition to the performance by the Company of its
obligations hereunder, particularly its obligations under paragraph 3 hereof,
that during the term of your employment, except for a termination of employment
without Cause or for Good Reason, hereunder and during the further period of one
(1) year after the termination of such employment, you shall not, without the
prior written approval of the Board, directly or indirectly through any other
person, firm or corporation:

         (i) Solicit, raid, entice or induce any person, firm or corporation
     that presently is or at any time during the term of your employment
     hereunder shall be a customer of the Company, or any of its subsidiary
     companies, to become a customer of any other person, firm or corporation,
     and you shall not approach any such person, firm or corporation for such
     purpose or authorize or knowingly approve the taking of such actions by any
     other person;





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Mr. David H. Taylor
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         (ii)  Solicit, raid, entice or induce any person that presently is or
     at any time during the term of your employment hereunder shall be an
     employee of the Company, or any of its subsidiary companies, to become
     employed by any person, firm or corporation, and you shall not approach any
     such employee for such purpose or authorize or knowingly approve the taking
     of such actions by any other person; or

         (iii) Engage, participate, make any financial investment in, or become
     employed by any person, firm, corporation or other business enterprise in
     the United States which is engaged, directly or indirectly, during the term
     of your employment or at the time of your termination of employment, as the
     case may be, which (x) derives in excess of 20% of its gross revenues from
     the sale of products substantially the same as the products of the Company
     and/or any of its subsidiary companies or (y) has substantially the same
     customer base for the same products as the Company and/or any of its
     subsidiary companies. The foregoing covenant shall not be construed to
     preclude you from making any investments in the securities of any company,
     whether or not engaged in competition with the Company and/or any of its
     subsidiary companies, to the extent that such securities are actively
     traded on a national securities exchange or in the over-the-counter market
     in the United States or any foreign securities exchange and, after giving
     effect to such investment, you do not beneficially own securities
     representing more than 5% of the combined voting power of the voting
     securities of such company.

     (b) Recognizing that the knowledge, information and relationship with
customers, suppliers, and agents, and the knowledge of the Company's and its
subsidiary companies' business methods, systems, plans and policies which you
shall hereafter establish, receive or obtain as an employee of the Company or
its subsidiary companies, are valuable and unique assets of the respective
businesses of the Company and its subsidiary companies, you agree that, during
and after the term of your employment hereunder, you shall not (otherwise than
pursuant to your duties hereunder) disclose or use, without the prior written
approval of the Board, any such knowledge or information pertaining to the
Company or any of its subsidiary companies, their business, personnel or
policies, to any person, firm, corporation or other entity, for any reason or
purpose whatsoever. The provisions of this paragraph 9 shall not apply to
information which is or shall become generally known to the public or the trade
(except by reason of your breach of your obligations hereunder), information
which is or shall become available in trade or other publications, information
known to you prior to entering the employ of the Company, and information which
you are required to disclose by law or an order of a court of competent
jurisdiction (provided that prior to your disclosure of any such information you
shall provide the Company with reasonable notice and a reasonable opportunity to
seek a protective order to prevent such disclosure).

     (c) The provisions of paragraph 9(b) above shall survive the termination of
your employment hereunder, irrespective of the reason therefor.

     (d) You acknowledge that the services to be rendered by you are of a
special, unique and extraordinary character and, in connection with such
services, you will have access to confidential information vital to the
Company's and its subsidiary companies' businesses. By reason of this, you
consent and agree that if you violate any of the provisions of this Agreement
with respect to diversion of the Company's or its subsidiary companies'
customers or employees, or confidentiality, the Company and its subsidiary
companies would sustain irreparable harm and, therefore, in addition to any
other remedies which the Company may have under this Agreement or otherwise, the
Company shall be entitled to an injunction restraining you from committing or
continuing any such violation of this Agreement.

     10. Deductions and Withholdings. The Company shall be entitled to withhold
any amounts payable under this Agreement on account of payroll taxes and similar
matters as are required by applicable law, rule or regulation of appropriate
governmental authorities.





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Mr. David H. Taylor
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     11.  Successors; Binding Agreement.

     (a)  The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company, by agreement in form and substance
reasonably satisfactory to you, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. Failure of the
Company to obtain such agreement prior to the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle you to
compensation from the Company in the same amount and on the same terms as you
would be entitled to hereunder if you terminated your employment for Good
Reason, except that for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Date of
Termination. As used in this Agreement, "Company" shall include any successor to
the Company's business and/or assets as aforesaid which executes and delivers
the agreement provided for in this paragraph 11 or which otherwise becomes bound
by all the terms and provisions of this Agreement by operation of law.

     (b)  This Agreement and all your rights hereunder shall inure to the 
benefit of and be enforceable by your personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. If you should die while any amounts would still be payable to you
hereunder if you had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement
to your devisee, legatee, or other designee or, if there be no such designee,
to your estate. Your obligations hereunder may not be delegated, and except as
otherwise provided herein relating to the designation of a devisee, legatee or
other designee, you may not assign, transfer, pledge, encumber, hypothecate or
otherwise dispose of this Agreement or any of your rights hereunder, and any
such attempted delegation or disposition shall be null and void and without
effect.

     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:

     Mr. David H. Taylor
     105 Holbrook Trail
     Greenville, South Carolina 29605

     If to the Company:

     JPS Textile Group, Inc.
     555 North Pleasantburg Drive, Suite 202
     Greenville, South Carolina 29607
     Attention: Chairman of the Board

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.

     13.  Miscellaneous. No provision of this Agreement may be modified, waived
or discharged unless such waiver, modification or discharge is agreed to in
writing signed by you and by the Company. No waiver by either party hereto at
any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar




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Mr. David H. Taylor
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provisions or conditions at the same or at any prior or subsequent time. This
Agreement constitutes the complete understanding between the parties with
respect to your employment and supersedes any other prior oral or written
agreements, arrangements or understandings between you and the Company. This
Agreement amends, restates and supersedes any existing employment, retention,
severance and change-in-control agreements (collectively, the "Prior
Agreements") between you and the Company and/or any of its subsidiary companies
upon the Effective Date, and any and all claims under or in respect of the Prior
Agreements that you may have or assert shall, as of the Effective Date, be
governed by, and completely satisfied and discharged in accordance with, the
terms and conditions of this Agreement. No agreements or representations, oral
or otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not set forth expressly in this Agreement.
This Agreement may not be changed or terminated orally but only by an agreement
in writing signed by the parties hereto. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of South Carolina.

     14. Arbitration. All differences, claims or matters in dispute arising out
of this Agreement, the breach hereof or otherwise arising between the Company or
any of its affiliates and you shall, at the election of either party, by notice
to the other, be submitted to arbitration by the American Arbitration
Association or its successor, in Greenville, South Carolina. Such arbitration
shall be governed by the then existing rules of the American Arbitration
Association and the laws of the State of South Carolina as then in effect. The
expenses, including your reasonable attorneys' fees, in connection with such
arbitration shall be borne by the Company.

     15. Validity; Effectiveness. The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect.

     16. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

     If the foregoing is satisfactory, please so indicate by signing and
returning to the Company the enclosed copy of this letter whereupon this will
constitute our agreement on the subject.


                                           JPS TEXTILE GROUP, INC.


                                           By: /s/ Jerry E. Hunter
                                               --------------------------------
                                               Name:  Jerry E. Hunter
                                               Title:  Chief Executive Officer

ACCEPTED AND AGREED TO:


/s/ David H. Taylor
---------------------------------
David H. Taylor