<PAGE>
                                                                   EXHIBIT (10p)

                                SUPPLY AGREEMENT


         This Agreement made this 28th day of December, 2001, by and between
Russell Corporation, a corporation organized and existing under the laws of the
State of Alabama, with its offices at 3330 Cumberland Blvd., Suite 800, Atlanta,
GA ("Russell"), Frontier Yarns, LLC, a limited liability company organized and
existing under the laws of the State of Alabama, with its offices at 1700
Central Plank Road, Wetumpka, Alabama 36092 ("Manufacturer") and Frontier
Spinning Mills, Inc., a corporation organized and existing under the laws of the
State of North Carolina, with its offices at 1823 Boone Trail Road, Sanford,
North Carolina 27330 ("Frontier").

         WHEREAS, Russell is engaged in the business of manufacturing, marketing
and selling apparel products; and

         WHEREAS, Manufacturer is a joint venture limited liability company
formed by Russell and Frontier to operate certain yarn manufacturing facilities;
and

         WHEREAS, Russell desires to purchase yarn from Manufacturer and
Manufacturer is willing to supply yarn to Russell, subject to the terms and
conditions of this Agreement.

         NOW, THEREFORE, in consideration of the premises and mutual covenants
and agreements contained in this Agreement and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Russell and Manufacturer agree as follows:


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1.       Definitions

         The following terms used in this Supply Agreement shall have the
         following meanings unless otherwise expressly provided herein:

         (a)      "Additional Capacity" shall mean an amount of Yarn in excess
                  of the Annual Minimum [PROVISION REDACTED](*).

         (b)      "Annual Minimum" shall mean the agreed upon production
                  capacity of the Manufacturer. Said capacity will be based upon
                  an average yarn count per plant and the total capacity
                  determined on the basis of a fifty (50) week production year
                  as specified in Schedule A. The Annual Minimum may be adjusted
                  as agreed upon in writing by Russell and the Manufacturer but,
                  in any event, shall be based upon the full capacity of the
                  mill.

         (c)      "Anticipated Shortfall" shall mean in any month the difference
                  between the pro-rated monthly portion of the Annual Minimum
                  and the amount of Yarn that Russell anticipates purchasing
                  from Manufacturer.

         (d)      "CPI" shall mean the Index now known as the "United States
                  Bureau of Labor Statistics, Consumer Price Index for Urban
                  Wage Earners and Clerical Workers-Revised", All items for
                  Birmingham, Alabama, SMSA (1982-84 = 100).

         (e)      "Idle Capacity Charge" shall be determined in accordance with
                  the following formula:

                  [PROVISION REDACTED] (*)


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(*) Material omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission (the "SEC"). The omitted material has
been filed separately with the SEC.


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<PAGE>

         (f)      "Idle Capacity Payment" shall mean the amount determined in
                  accordance with the formula specified above.

         (g)      "Manufacturer's Shortfall" shall mean in any month the
                  difference between the pro-rated monthly portion of the Annual
                  Minimum and/or the Additional Capacity that Manufacturer
                  determines that it will not be able to produce and deliver to
                  Russell.

         (h)      "Manufacturer's Shortfall Payment" shall mean the difference
                  between the replacement cost to Russell of Shortfall Yarn and
                  the agreed upon price in Paragraph 3.

         (i)      "Marginal Revenue" shall refer to a method of calculation of
                  cost per pound of Yarn whereby the revenue per frame is
                  determined as a constant value and is divided by the number of
                  pounds of production per frame to determine cost per pounds of
                  Yarn. This method of calculation is more specifically
                  described in the example contained in Paragraph 3(a) herein.

         (j)      "Non-conforming Yarn" shall mean Yarn that fails to meet the
                  Specifications and Quality Control Standards of Russell.

         (k)      "Price" shall mean the purchase price Russell shall pay to
                  Manufacturer for the Yarn as determined in accordance with
                  Paragraph 3.

         (l)      "Price Adjustment Notice" shall mean a written notice
                  delivered by either Manufacturer or Russell in which the
                  delivering party proposes an adjustment to the Price of the
                  Yarn.

         (m)      "Price Adjustment Notice Period" shall mean a period of 45
                  days after delivery of a Price Adjustment Notice in which the
                  parties attempt to negotiate an adjustment to the Price of the
                  Yarn.


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         (n)      "Purchase Order" shall mean a document delivered to
                  Manufacturer by Russell for the purchase of specific
                  quantities of Yarn. A copy of Russell's form of Purchase Order
                  is attached as Schedule 1(n).

         (o)      "Quality Control Standards" shall mean the quality control
                  procedures, specifications, processes and measurements as
                  specified by Russell in Schedule 1(o), as may be amended from
                  time to time upon written agreement of the parties, to be
                  utilized by Manufacturer in producing the Yarn.

         (p)      "Raw Materials" shall mean the raw materials, fiber,
                  components and supplies for the Yarn.

         (q)      "Reimbursement Notice" shall mean a written notice from
                  Manufacturer to Russell stating that it has been unable to
                  secure order(s) for all or part of the Shortfall.

         (r)      "Shortfall Notice" shall mean the written notice delivered to
                  Manufacturer by Russell that states that there will be an
                  Anticipated Shortfall.

         (s)      "Specifications" shall mean Russell's specifications for the
                  Yarn as set forth in Schedule 1(o), as may be amended from
                  time to time, or in a Purchase Order.

         (t)      "Term" shall have the meaning specified in Paragraph 5 below.

         (u)      "Yarn" shall mean the yarn meeting the Specifications and
                  Quality Control Standards purchased from Manufacturer by
                  Russell in accordance with the terms of this Agreement.

         (v)      "Year" shall mean the fiscal year of the Manufacturer
                  consisting of either fifty-two (52) or fifty-three (53) weeks,
                  which period shall commence on December 28, 2001. The initial
                  year of the


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                  Manufacturer shall consist if a period shorter than 52 or 53
                  weeks and will be measured from the closing until the end of
                  the fiscal year of the Manufacturer. All computations in the
                  initial year of the Manufacturer shall be pro-rated according
                  to the actual number of weeks the Manufacturer is in
                  existence.

2.       Supply

         (a)      Obligations of Russell and Manufacturer

                  (i)      Russell agrees to purchase Yarn from Manufacturer in
                           mutually agreed upon counts for Russell's use in
                           manufacturing apparel products. Subject to the terms
                           and conditions of this Agreement, during each Year of
                           the Term of this Agreement, Manufacturer agrees to
                           supply to Russell the Annual Minimum and Russell
                           agrees to purchase from Manufacturer at least the
                           Annual Minimum.

                  (ii)     Russell shall have the right to purchase Additional
                           Capacity within the terms outlined in Forecasts and
                           Orders (as specified in Paragraph 2(e) herein). The
                           price for Additional Capacity will be determined in
                           accordance with Schedule C. The terms and conditions
                           for the purchase of the Additional Capacity shall be
                           in accordance with the terms of this Agreement.

                  (iii)    If during any month Russell fails to timely notify
                           Manufacturer of its intent to utilize all or a
                           portion of the Additional Capacity, or if Russell
                           notifies Manufacturer that it intends to use a
                           portion of the Additional Capacity, Manufacturer
                           shall be free to sell any unused portion of the
                           Additional Capacity to a third party. Manufacturer
                           may sell any capacity of Yarn in excess of the Annual
                           Minimum and the Additional Capacity to a third party.


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                  (iv)     If Russell determines that it will not purchase the
                           monthly pro rata share of the Annual Minimum during a
                           month, Russell shall deliver a Shortfall Notice to
                           Manufacturer as soon as reasonably practicable to
                           enable Manufacturer to sell such Anticipated
                           Shortfall to a third party or parties. Upon receipt
                           of the Shortfall Notice, Manufacturer shall use its
                           best efforts to secure orders from third parties to
                           utilize such Anticipated Shortfall; provided,
                           however, that if Manufacturer is unable to secure
                           orders from third parties for all of the Anticipated
                           Shortfall within thirty (30) days of receipt of a
                           Shortfall Notice, it shall deliver a Reimbursement
                           Notice to Russell. The Reimbursement Notice shall
                           include a calculation of the Idle Capacity Payment in
                           accordance with the sample formula contained in
                           Paragraph 1(e). If Manufacturer sells the Anticipated
                           Shortfall to a third party, the Idle Capacity Payment
                           will be adjusted for the difference between the
                           outside selling price conversion and the agreed upon
                           conversion by Russell. If Manufacturer's sales of
                           Anticipated Shortfall exceed the amount which would
                           have constituted the Price if Russell had purchased
                           the Anticipated Shortfall, such excess will be used
                           by Manufacturer as an offset to future Idle Capacity
                           Payments due from Russell.

                  (v)      Russell shall remit the Idle Capacity Payment to
                           Manufacturer within thirty (30) days from the date of
                           receipt of the Reimbursement Notice.

                  (vi)     If, prior to or during a month, Manufacturer
                           determines that there will be a Manufacturer's
                           Shortfall, Manufacturer shall provide prompt written
                           notice to Russell. Within ten (10) days of the date
                           Manufacturer provides notice to Russell of a
                           Manufacturer's Shortfall, Frontier will provide
                           written notice to Russell of either: (A) its
                           agreement to supply the Manufacturer's Shortfall in
                           accordance with the terms and


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                           conditions of this Agreement or (B) its inability to
                           supply the Manufacturer's Shortfall in accordance
                           with the terms and conditions of this Agreement. In
                           the event of a Manufacturer's Shortfall and
                           Frontier's notice of inability to supply
                           Manufacturer's Shortfall or its failure to supply
                           Manufacturer's Shortfall in accordance with the terms
                           of this Agreement, Russell shall have the right to
                           purchase an amount of yarn equal to the
                           Manufacturer's Shortfall from a third party. In this
                           event, Russell's obligation to purchase the Annual
                           Minimum shall be reduced by the amount of the
                           Manufacturer's Shortfall and Manufacturer shall pay
                           to Russell the Manufacturer's Shortfall Payment
                           within thirty (30) days of receipt of written notice
                           from Russell.

         (b)      Raw Materials, etc.

                  (i)      All Raw Materials required by Manufacturer to fulfill
                           its obligations under this Agreement shall be
                           acquired by Manufacturer at its sole cost and
                           expense. The Raw Materials shall be of such grade and
                           quality as shall be necessary to meet the
                           Specifications for the Yarn set forth in Schedule
                           1(o) or as specified by Russell in a Purchase Order.

                  (ii)     All cotton for use in the Yarn shall be purchased by
                           contracts, with fixation of prices set by Russell.
                           All polyester for use in the Yarn shall be purchased
                           from vendors approved by Russell at mutually agreed
                           upon prices. Manufacturer covenants and agrees that
                           Russell shall be entitled to all rebates on the
                           purchase of Raw Materials, including cotton. Such
                           rebates shall be reflected as credits to Russell in
                           Manufacturer's invoices for Yarn purchases hereunder.

         (c)      Manufacturing


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         Either Manufacturer or Frontier shall manufacture the Yarn in
         accordance with (i) the Specifications set forth in Schedule 1(r), as
         may be amended from time-to-time, (ii) the Purchase Orders, (iii) any
         other documentation provided by Russell (iv) good manufacturing
         practices and (v) applicable laws and regulations.

         If the Specifications, excluding issues with Non-conforming Yarn and
         Quality Control Standards, affect the "full running capacity" of the
         mill (as agreed upon by Russell and Manufacturer), an adjustment will
         be made to the Price based upon Marginal Revenue.

         (d)      Title and Risk of Loss

         All Yarn sold to Russell by Manufacturer under this Agreement shall be
         F.O.B. mill. All Yarn sold to Russell by Frontier shall be delivered to
         Russell F.O.B. Russell's dock, less a freight allowance to Frontier of
         [PROVISION REDACTED](*).

         (e)      Forecasts and Orders

                  (i)      By the fifteenth (15th) of each month, Russell shall
                           deliver to Manufacturer a non-binding rolling
                           forecast by specific yarn counts of its requirements
                           of Yarn for the next succeeding six (6) months.

                  (ii)     Russell shall deliver Purchase Orders for its Yarn
                           requirements to Manufacturer at least fifteen (15)
                           days before the required delivery date. The Purchase
                           Orders will list the next two (2) weeks'
                           requirements. A Purchase Order is a purchase
                           commitment and will not be considered as Anticipated
                           Shortfall.

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(*) Material omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission (the "SEC"). The omitted material has
been filed separately with the SEC.


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<PAGE>

                  (iii)    Manufacturer shall acknowledge all Purchase Orders in
                           writing within two (2) business days of receipt.

         (f)      Non-conforming Yarn

                  (i)      All claims for Non-conforming Yarn shall be made by
                           Russell to the Manufacturer within sixty (60) days of
                           the date of receipt by Russell or, if the
                           non-conformity is of such a nature that it cannot be
                           readily discovered with the exercise of reasonable
                           diligence within sixty (60) days of the date Russell
                           receives such Non-conforming Yarn, then within thirty
                           (30) days of Russell's discovery of the
                           non-conformity. In the event the Manufacturer should
                           discover that a defect has occurred before delivery
                           of Yarn to Russell, then the Manufacturer will
                           immediately notify Russell of such defect. In no
                           event will any claim for Non-conforming Yarn be
                           allowed after three hundred sixty five (365) days
                           after delivery of the Non-conforming Yarn to Russell.

                  (ii)     Manufacturer shall replace all Non-conforming Yarn as
                           soon as reasonably possible at no cost to Russell and
                           shall reimburse Russell for all costs of handling
                           and/or disposal of Non-conforming Yarn.
                           Notwithstanding any other provision of this
                           Agreement, Manufacturer shall not be required to
                           reimburse Russell for Non-conforming Yarn if the
                           non-conformity resulted solely from Russell's
                           negligence or willful misconduct in the handling of
                           the Yarn.

         (g)      Sale of MVS and Other Yarns


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                  At Russell's request, Manufacturer may sell MVS or other yarn
                  to third parties. In this event, Frontier covenants and agrees
                  to replace from its other facilities the displaced capacity
                  resulting from such sale(s).

         3.       Price for Yarn

                  (a)      Initial Price

                  [PROVISION REDACTED (APPROXIMATELY ONE-HALF PAGE)](*)

                           (b)      Adjustment of Price

                  [PROVISION REDACTED (APPROXIMATELY ONE PAGE)](*)

                  (c)      Payment Terms

                  (i)      Manufacturer shall invoice Russell whenever Yarn is
         shipped to Russell, based upon a Bill of Lading that indicates the
         quantity shipped. Russell shall pay Manufacturer's invoices within
         thirty days of receipt thereof.

                  (ii)     Russell shall have the right to offset any amounts
         Manufacturer may owe to Russell hereunder against any amounts Russell
         owes Manufacturer hereunder, unless such dispute involves an issue over
         whether the Yarn has been manufactured in accordance with the Quality
         Control Standards. In the case of such a dispute over quality issues,
         the right to offset will not apply until the dispute is resolved.

         4.       Quality Control


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(*) Material omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission (the "SEC"). The omitted material has
been filed separately with the SEC.


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         (a)      To insure compliance with applicable laws and regulations and
                  to assure that only Yarn meeting the Specifications and
                  Quality Control Standards is sold to Russell hereunder,
                  Manufacturer shall strictly conform to such Quality Control
                  Standards as Russell may reasonably request from time to time.

         (b)      Upon reasonable prior notice, Russell's representatives shall
                  have the right to inspect the premises, equipment, procedures,
                  and facilities of Manufacturer prior to and during the period
                  of manufacturing of the Yarn. Russell's representatives shall
                  have access to all portions of the storage, production, and
                  other facilities of Manufacturer that are involved in, or
                  committed to, the production of the Yarn. Manufacturer shall
                  have the right to accompany Russell's representatives during
                  any such inspection. In the event that an inspection shall
                  require access to any plant owned by Frontier, Russell's
                  representatives shall have access to such plants upon the
                  execution of a confidentiality agreement reasonably designed
                  to protect Frontier's confidential and proprietary
                  information.

         (c)      Manufacturer shall immediately notify Russell of any
                  inspection of its facility by any governmental agency, and
                  shall thereupon furnish Russell with copies of all reports
                  relating to such inspections if such inspections involve or
                  may involve the production and storage of the Yarn.

         (d)      Manufacturer shall inspect all Raw Materials in accordance
                  with industry standards. Should Manufacturer discover any
                  non-conforming (whether by defect or otherwise) Raw Materials,
                  it shall discontinue any use of such non-conforming Raw
                  Materials and immediately notify Russell if non-conforming Raw
                  Materials have been used in Yarn supplied to Russell.


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         (e)      Manufacturer shall comply with the Business Partner Guidelines
                  of Russell, a copy of which is attached as Schedule 4(e)
                  hereto, and agrees to submit to any on-site monitoring of its
                  manufacturing facilities in order to verify compliance with
                  such Business Partner Guidelines.

5.       Term of Agreement

The Term of this Agreement shall commence on October 15, 2001, or upon the
establishment of Manufacturer, whichever is later, and continue indefinitely
unless terminated pursuant to Paragraph 6 below.

6.       Early Termination

         (a)      Either party may immediately terminate this Agreement in the
                  case of:

                  (i)      The breach by any party of a material covenant or
                           obligation under this Agreement and the failure of
                           the breaching party to cure, or to make substantial
                           progress toward curing, such breach within thirty
                           (30) days after receipt of written notice of the
                           breach from the terminating party; or

                  (ii)     A party becoming insolvent, bankrupt, entering into
                           an arrangement with creditors or similar action, or a
                           petition or action for dissolution or liquidation of
                           the other party; or

                  (iii)    Any of the circumstances of force majeure set forth
                           in Paragraph 9 occurs and continues for a period of
                           ninety (90) days; or

                  (iv)     Assignment, in whole or in part, of any rights and
                           obligations derived from this Agreement without prior
                           and express authorization from the other party.


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         (b)      If Manufacturer fails to comply in any material way with any
                  of its material obligations three (3) or more times in any
                  consecutive 12-month period, such repeated failures shall
                  constitute grounds for immediate termination, regardless of
                  the corrections of such failures.

         (c)      After the first five (5) years of the Term of this Agreement,
                  Russell may terminate this Agreement for any reason and at any
                  time upon two (2) years prior written notice to Manufacturer.

         (d)      At Russell's option, if there is a change of control in
                  Manufacturer resulting in Frontier no longer having at least a
                  fifty-one percent (51%) interest.

         (e)      If there is a change of control of Frontier resulting in the
                  current shareholders of Frontier owning less than fifty-one
                  percent (51%) of the voting control of Frontier, Russell shall
                  have the option to purchase the assets of Manufacturer at book
                  value.

         (f)      Upon the termination of this Agreement for any reason, Russell
                  will only be liable for any confirmed Purchase Orders pursuant
                  to Paragraph 2(e).

         (g)      Upon termination of this Agreement, all rights, obligations,
                  and causes of action accruing hereunder prior to such
                  termination shall survive and the provisions of this Agreement
                  shall continue to be controlling for the purpose of
                  determining the rights of the parties hereto. The waiver or
                  repeated waiver by either party hereto of any breach of any
                  provision of this Agreement by the other party shall not be
                  deemed a waiver of a future breach.

         (h)      In the event of either a fundamental decrease in the demand
                  for Yarn or the cost of the Yarn becoming uncompetitive,
                  Russell shall have the right to cause the Manufacturer to
                  close any plant


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                  operated by the Manufacturer upon sixty (60) days notice. If
                  Russell shall exercise this right, the Manufacturer will sell
                  the assets of the plant to be closed and Russell shall
                  reimburse the Manufacturer the difference between the asset
                  selling price and the book value of the asset sold, in
                  addition to the reasonable expenses of closing the plant.

7.       Indemnification and Insurance

         (a)      Manufacturer shall indemnify, defend, and hold Russell, its
                  employees and agents and/or any direct or indirect customer of
                  Russell, harmless from and against any and all liabilities,
                  injuries, claims, suits, costs, expenses, losses and damages,
                  including reasonable attorneys' fees, (i) brought by any
                  lawful governmental authority against or concerning the Yarn
                  or (ii) that may in any way arise out of damage, death,
                  illness, or injury to any person or property, in connection
                  with Manufacturer's performance or failure to perform in
                  accordance with this Agreement or other liabilities arising
                  out of any act or omission on the part of the Manufacturer;
                  provided, however, that (A) Russell shall give Manufacturer
                  prompt notice of any such claim and Russell shall cooperate
                  with Manufacturer in defending against any such claim and (B)
                  such liabilities, damages, etc. are not caused solely by the
                  negligence or willful misconduct of Russell. Damages of an
                  indirect or consequential nature, such as lost profits, shall
                  not be recoverable hereunder.

         (b)      Russell shall indemnify, defend, and hold Manufacturer, its
                  employees and agents, harmless from and against any and all
                  liabilities, injuries, suits, costs, expenses, losses and
                  damages, including reasonable attorneys' fees, arising out of
                  damage, death, illness, or injury to any person or property
                  arising from Russell's performance or failure to perform in
                  accordance with this Agreement or other liabilities arising
                  out of any act or omission on the part of Russell; provided,
                  however, that (i)


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                  Manufacturer shall give Russell prompt notice of any such
                  claim and Manufacturer shall cooperate with Russell in
                  defending against any such claim and (ii) such liabilities,
                  damages, etc. are not caused solely by the negligence or
                  willful misconduct of Manufacturer.

         (c)      Manufacturer agrees to obtain and maintain at its own expense,
                  through and until the expiration of the last of the
                  limitations periods under any applicable legislation,
                  insurance coverage written on an occurrence basis and
                  providing protection to Russell from any and all losses,
                  liabilities, claims, demands, fines, damages, judgments,
                  settlement actions and causes of action of every kind and
                  nature, including all legal fees and all expenses in
                  connection therewith, arising out of Manufacturer's operations
                  or Manufacturer's negligence or intentional misconduct. Such
                  insurance shall be maintained as follows: (i) comprehensive
                  general liability, including bodily injury and/or property
                  damage in amounts not less than [PROVISION REDACTED](*) per
                  occurrence/[PROVISION REDACTED](*) aggregate; (ii) workers'
                  compensation insurance at statutory limits; and products
                  liability coverage in the amount of [PROVISION REDACTED](*).
                  Within thirty (30) days from the date of execution of this
                  Agreement, Manufacturer shall submit to Russell a copy of such
                  insurance policy or policies, or an acceptable certificate of
                  insurance from a licensed carrier acceptable to Russell,
                  evidencing the insurance coverage required herein and naming
                  Russell, its subsidiaries, divisions, and affiliates and each
                  of their respective officers, directors and employees as
                  additional insured parties and loss payees. Such policies
                  shall provide that the insurer shall not terminate or
                  materially modify such coverage without written notice to
                  Russell at least thirty (30) days in advance thereof.
                  Manufacturer acknowledges and agrees that its acquisition of
                  the


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(*) Material omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission (the "SEC"). The omitted material has
been filed separately with the SEC.


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                  insurance coverage required hereunder shall in no way affect
                  or limit its duties of indemnity provided for in this
                  Agreement. Manufacturer shall provide Russell with renewal
                  policies or certificates of insurance in accordance with the
                  terms hereof on an annual basis.

8.       Independent Contractor

         Manufacturer is an independent contractor. This Agreement does not make
or constitute Manufacturer as the agent or representative of Russell or Frontier
for any purpose whatsoever. Manufacturer shall have no power or authority to act
on behalf or in the name of Russell or Frontier or to bind Russell or Frontier,
either directly or indirectly, in any manner or thing, without the express
written authorization of Russell or Frontier. The operation of any equipment or
machinery or devices used by Manufacturer and the employment of labor to
manufacture, store, assemble, load and deliver the Yarn shall be the sole
responsibility of Manufacturer. Neither Russell nor Frontier shall be liable for
any injuries or damages incurred by Manufacturer or its agents or employees as a
result of its activities in the performance of this Agreement. The duty of
Frontier to supply Additional Capacity under the terms of this Agreement shall
not affect the status of Manufacturer as an independent contractor.

9.       Force Majeure

         Delay or failure of performance of either party shall be excused to the
extent that such failure shall be caused by an act of God, strike or other labor
dispute, war or war conditions, riot, civil disorder, government regulation or
action, embargo, fire, flood, accident or other casualty not resulting from the
negligence of either party hereto or by any other cause beyond the control of
the party whose performance shall be delayed or prevented thereby. The party
invoking the provisions of this section shall give the other party prompt notice
in writing of the pending of or the occurrence of any such cause and shall make
all reasonable efforts to remove such force majeure within thirty (30) days of
such notice. The time


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for performance hereof shall be extended for a period equal to the duration of
such disabling cause, unless this Agreement is terminated pursuant to the
provisions of Paragraph 6 of this Agreement.

10.      Records

         (a)      Manufacturer shall maintain and retain, for a period of three
                  (3) years, accurate records of production, shipments, rejected
                  Raw Material, rejected or Non-conforming Yarn, quality control
                  records, records of production, and records of shipment for
                  the Yarn, as well as other records required to be kept by
                  applicable local, state or federal law or as may be reasonably
                  requested by Russell or Frontier. All records required
                  hereunder shall be maintained at yarn count level detail where
                  applicable. Such records shall be available to Russell or
                  Frontier for audit verification upon reasonable prior notice
                  during Manufacturer's regular business hours and shall be
                  retained in Manufacturer's files for inspection by Russell or
                  Frontier for a period of not less than two (2) years after
                  completion of production, unless otherwise agreed upon in
                  writing by the parties. Notwithstanding anything to the
                  contrary contained herein, Manufacturer shall retain any
                  financial, accounting, tax, fixed asset or any other records
                  relevant to tax and financial information for a period of time
                  corresponding to the relevant statute of limitations for
                  examination of tax returns of Manufacturer.

         (b)      Manufacturer shall provide Russell and Frontier with monthly
                  accounting reports of Raw Material purchases (including at
                  Russell's or Frontier's request, copies of paid invoices),
                  usage's, inventory values, Yarn manufactured for Russell under
                  this Agreement as well as Yarn held in storage by Manufacturer
                  at the end of each month.

11.      Notices


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All notices or other communications necessitated under the provisions of this
Agreement shall be deemed given if delivered by hand or if sent by U.S.
certified mail, postage prepaid, return receipt requested, or by facsimile, with
confirmation sent by certified mail, to the parties at the following addresses:

                  If to Russell:        Russell Corporation
                                        Attn:  Legal Department
                                        3330 Cumberland Blvd., Suite 800
                                        Atlanta, GA 30339
                                        Facsimile: 678-742-8514

                  If to Manufacturer:   Frontier Yarns, LLC
                                        1700 Central Plank Road
                                        Wetumpka, AL 36092

                  If to Frontier:       Frontier Spinning Mills, Inc.
                                        Attn: Mr. George Perkins
                                        1823 Boone Trail Road
                                        Sanford, NC 27330
                                        Facsimile: 919-777-2659

12.      Governing Law

This Agreement shall be governed by and construed in all matters in accordance
with the laws of the State of Alabama, including questions regarding validity,
construction, performance and compliance.

13.      Severability


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<PAGE>

If any provision of this Agreement shall be held illegal, unenforceable, or in
conflict with any law governing this Agreement, the offending provision shall be
deleted and the remaining provisions of the Agreement shall not be affected
thereby.

14.      Assignment

This Agreement may not be assigned by any party hereto without the prior written
consent of the other parties. A consent to one assignment shall not relieve the
assignee of the obligation to obtain the consent of the other parties to a
subsequent assignment.

15.      Modification or Waiver

The terms of this Agreement may not be modified nor shall any provision be
waived as it applies to one party unless such modification or waiver shall be
incorporated in a written amendment to this Agreement, executed by all parties
with respect to a modification, or executed by the party which has the benefit
of any term or provision which the other parties desire to have waived.

16.      Confidentiality

         (a)      In order for Manufacturer to perform the services provided in
                  this Agreement, the parties must disclose to Manufacturer
                  certain trade secrets, including but not limited to,
                  processes, equipment, specifications, manufacturing techniques
                  and business data which the parties consider to be proprietary
                  and confidential. Manufacturer shall regard as confidential
                  and proprietary all of the information communicated to it by
                  the parties in connection with this Agreement (which
                  information shall at all times be the property of the party
                  disclosing such information).


                                                                              19
<PAGE>

         (b)      Manufacturer shall not at any time (i) use such information
                  for any purpose other than in connection with the performance
                  of its obligations under this Agreement or (ii) disclose any
                  portion of the such information to third parties.

         (c)      Manufacturer shall promptly upon the termination of this
                  Agreement return to the disclosing party, without retaining
                  copies thereof, all such information which is in written or
                  tangible form (including, without limitation, all copies,
                  summaries and notes of the contents thereof), regardless of
                  the party causing the same to be in such form, and destroy all
                  written materials prepared by Manufacturer which incorporates
                  or include any such information.

         (d)      Manufacturer shall disseminate such information to its
                  employees only on a "need-to-know" basis. Manufacturer shall
                  cause each of its employees who have access to such
                  information to comply with the terms and provisions of this
                  paragraph 16 in the same manner as Manufacturer is bound
                  hereby, with Manufacturer remaining responsible for the
                  actions and disclosures of any such employees. In addition,
                  except as otherwise provided herein, Manufacturer shall not
                  disclose to third parties any such information disclosed by
                  the parties or developed for the parties by Manufacturer or
                  the terms and conditions of this Agreement. Manufacturer
                  agrees that any breach of this paragraph 16 by Manufacturer or
                  its employees shall cause irreparable injury to Russell, that
                  the parties shall be entitled, among other remedies, to
                  specific performance and injunctive or other equitable relief
                  as a remedy against Manufacturer and/or the employee(s), as
                  the case may be, for any such breach.


                                                                              20
<PAGE>

         IN WITNESS WHEREOF the parties have executed this Supply Agreement in
three (3) counterparts, all of which shall be deemed an original instrument, in
the presence of the undersigned witnesses.


RUSSELL CORPORATION



By
   ---------------------------------
Its
   ---------------------------------


FRONTIER YARNS, LLC



By
   ---------------------------------
Its
   ---------------------------------


FRONTIER SPINNING MILLS, INC.



By
   ---------------------------------
Its
   ---------------------------------


                                                                              21
<PAGE>

                                   SCHEDULE A


[PROVISION REDACTED (APPROXIMATELY ONE PAGE)](*)


--------------
(*) Material omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission (the "SEC"). The omitted material has
been filed separately with the SEC.


                                                                              22
<PAGE>

                                   SCHEDULE B


[PROVISION REDACTED (APPROXIMATELY ONE PAGE)](*)


--------------
(*) Material omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission (the "SEC"). The omitted material has
been filed separately with the SEC.


                                                                              23
<PAGE>

                                   SCHEDULE C

                                  (Not Final)






                                                                              24
<PAGE>

                                  SCHEDULE 1(n)


                             Russell Purchase Order

                                  (not final)


                                                                              25
<PAGE>

                                  Schedule 1(o)


                  Quality Control Standards and Specifications

                                  (not final)


                                                                              26
<PAGE>

                                  SCHEDULE 4(e)


                      Russell's Business Partner Guidelines

Russell Corporation will only do business with companies and individuals that
share the company's adherence to high legal, ethical and moral standards.
Russell's goal is to create and encourage creation of model operations that
provide good jobs at fair wages and also improve conditions in their
communities.

All suppliers, joint ventures, vendors and other business partners (the
"Business Partners") are expected to comply with the Russell International
Operating Principles attached hereto and to assure compliance in all
contracting, subcontracting or other relationships. In establishing these
guidelines, Russell believes it is effectively exercising its economic leverage
with business partners to encourage their full compliance with laws designed to
protect their employees and to support the highest standards of business
conduct.

The following Guidelines have been developed to ensure consistent compliance by
all Business Partners. Russell recognizes that the Guidelines will also assist
management in selecting business partners that follow work place standards and
practices consistent with Russell's International Operating Principles.

         Selection Guidelines

         Legal and Ethical Standards

Russell will require that all Business Partners fully comply with all applicable
legal and ethical standards and requirements of the countries in which they are
doing business, including the United States. Russell will not do business with
any Business Partner that violates the legal and ethical rights of employees in
any way.


                                                                              27
<PAGE>

EMPLOYMENT PRACTICES

         Wages and Benefits

Russell will only do business with Business Partners who provide reasonable
wages and benefits that equal or exceed the prevailing local industry standard.

         Working Hours

Russell will only do business with Business Partners that comply with the
prevailing local work hours and do not exceed them, except for appropriately
compensated overtime.

         Child Labor

Russell will not do business with Business Partners that use child labor.
Russell will not use vendors/suppliers who employ people in violation of local
mandatory school age or under the legal employment age in each country. If
Russell deems the work being done is inappropriate or poses possible risk to
employees at the legal minimum employment age, it reserves the right to
establish its own minimum age limit for Business Partners on a
country-by-country basis. Under no circumstances will the minimum age be under
15. Russell supports the development of legitimate workplace apprenticeship
programs for the educational benefits of younger people.

         Prison/Forced Labor

Russell will not knowingly do business with Business Partners that use
involuntary, indentured or forced labor, including prison labor that is not on a
voluntary basis. This includes labor that is required as a means of political
coercion or as punishment for holding or for peacefully expressing political
views.


                                                                              28
<PAGE>

         Discrimination

While Russell recognizes and respects cultural differences, the company believes
that employees should be employed on the basis of their ability to do the job,
rather that on the basis of personal characteristics or beliefs. In-country
laws, however, will take precedent over company policies and directions.

DISCIPLINARY PRACTICES

Russell will not do business with Business Partners that use corporal punishment
or other forms of mental or physical coercion.

HEALTH AND SAFETY

Russell will use Business Partners that who provide employees with safe,
adequate work environments and protections from exposure to hazardous conditions
or materials. Any Business Partner that provides residential facilities for
employees must ensure that it is safe, healthy and adequate housing.

ENVIRONMENTAL REQUIREMENTS

Russell will use only those Business Partners that share the company's
commitment to the community and to the environment. They must conform to all
legal requirements regarding environmental codes and guidelines. Further,
Russell will seeks Business Partners who demonstrate a commitment to progressive
environmental practices and to preserving the earth's resources.

RIGHT OF INSPECTION


                                                                              29
<PAGE>

Russell will assure proper implementation of and compliance with the standards
set forth in these Guidelines by implementing affirmative measures such as on
site inspection of Business Partners' facilities.

RUSSELL CORPORATION

OPERATING PRINCIPLES

RUSSELL CORPORATION is a manufacturer and marketer of the highest quality
apparel products with superior customer value. To maintain its tradition and
reputation as a superior employer and a responsible corporate citizen, Russell
has established International Operating Principles for the corporation and its
business partners.

Russell expects its commitment to the highest standards of business ethics and
regards for human rights throughout the world to extend to all locations in
which it operates. While Russell recognizes that legal and cultural differences
exist and standards may vary by country, there are certain fundamental
principles that should apply universally. As Russell expands operations and
businesses internationally, these principles provide the foundation for ongoing
evaluation of employment practices and environmental compliance.

Russell has also defined certain standards and guidelines for our business
partners, including vendors, suppliers, contractors, and joint ventures. In
developing these guidelines, it is Russell's desire to identify and give
preference to potential partners who share our commitment to quality products as
well as to quality business and community relationships.

LEGAL AND ETHICAL PRACTICES

Russell expects operating facilities and employees to comply with all applicable
laws, practices and regulations of the countries in which they are


                                                                              30
<PAGE>

doing business, including those of the United States. The company will not
condone any violation of any such regulation or laws.

Russell believes in maintaining high ethical standards in conducting business
activities and will not approve or be involved in practices of questionable
conduct.

EMPLOYMENT PRACTICES

Use of child labor is not permissible. Employees must be over the applicable
minimum legal age requirements or be at least 17 years old, whichever is
greater. Russell facilities must observe all child labor laws, specifically
wages, working conditions, hours of work and education.

Russell will not condone or permit the use of forced, involuntary or
uncompensated labor under any circumstances. The use of corporal punishment,
other mental or physical disciplinary actions or sexual harassment will not be
allowed. Russell will not knowingly use or purchase materials or products
manufactured by involuntary or forced labor of any type, including prison labor
that is not on a voluntary basis.

Russell will provide reasonable wages and benefits that match or exceed the
prevailing local industry practices and that are at or above legal mandates.
Paying employees at competitive levels supports the company's goal to motivate
and keep the best employees within its business activity. Russell strongly
encourages employee participation through the sharing of ideas, which fosters an
open relationship. There is also an ongoing emphasis on employee training,
education, and development.

While Russell recognizes and respects cultural differences, the company believes
that employees should be hired on the basis of their ability to do the job, not
on the basis of their personal characteristics or beliefs. Russell strictly
prohibits discrimination with regard to race, color, national origin,


                                                                              31
<PAGE>

religion, gender, age, sexual orientation or disability. Russell will actively
respect, promote and manage diversity within its employees. In-country laws
will, however, always take precedent over company policies.

Russell believes in positive employee relations that are firmly established in
mutual respect, fairness, and openness in the expression of ideas and opinions.
Russell recognizes and rewards excellent performance and encourages its
employees to participate in the decision making process because this permits the
company to successfully compete in a global economy.

HEALTH AND ENVIRONMENTAL

Russell is committed to protect and preserve the environment, as well as to
fully comply with all local government laws and international standards. All
operations must adhere to national laws regarding the protection and
preservation of the environment.

Russell believes in providing a safe and healthy workplace in compliance with
local laws, including adequate facilities and protections from exposure to
hazardous conditions or materials. Employees will be trained in safety rules,
practices and use of protective equipment.

COMMUNITY RELATIONS AND CONTRIBUTIONS

Russell Corporation is committed to being a good corporate citizen in every
country where it operates. All facilities are encouraged to contribute to
improving their communities by participating and sponsoring activities, such as
adopting schools, promoting educational programs and involvement in service
organizations.

COMMUNICATION


                                                                              32
<PAGE>

Russell Corporation believes in maintaining appropriate confidential records,
but strongly encourages open communication with its employees and business
partners.

INSPECTION

Russell will make it clear to all employees that the company expects them to
comply with all laws and with its broader Operating Principles. To further
assure proper implementation of and compliance with its established standards,
Russell Corporation, or a third party designated by Russell Corporation, will
undertake affirmative measures, such as on-site inspection of the facilities, to
implement and monitor these standards.


                                                                              33