Document:

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                                                                   EXHIBIT 10.53

                                RACI HOLDING, INC
                             2003 STOCK OPTION PLAN

                               Section 1. Purpose

        The purpose of this RACI Holding, Inc. 2003 Stock Incentive Plan is to
foster and promote the long-term financial success of Holding and the Company
and to increase materially stockholder value by (a) motivating superior
performance by Participants in the Plan, (b) providing Participants in the Plan
with an ownership interest in Holding and (c) enabling Holding, the Company and
the Subsidiaries to attract and retain the services of an outstanding management
team upon whose judgment, interest and special effort the successful conduct of
its operations is largely dependent.

                             Section 2. Definitions

        2.1.    Definitions. Whenever used herein, the following terms shall
have the respective meanings set forth below:

        (1)     "Alternative Option" has the meaning given in Section 8.2.

        (2)     "Board" means the Board of Directors of Holding.

        (3)     "BRS" means Bruckmann, Rosser, Sherrill & Co. II, L.P. and any
    successor or other investment vehicle managed by Bruckmann, Rosser, Sherrill
    & Co., Inc.

        (4)     "C&D Fund" means The Clayton & Dubilier Private Equity Fund IV
    Limited Partnership, a Connecticut limited partnership, and any successor or
    other investment vehicle managed by Clayton, Dubilier & Rice, Inc.

        (5)     "Cause" means, with respect to an Employee: (i) the willful
    failure by a Participant to perform substantially his duties as an employee
    of Holding, the Company or any Subsidiary (other than any such failure due
    to physical or mental illness) after a demand for substantial performance is
    delivered to the Participant by the executive to whom the Participant
    reports or by the Board, which notice identifies the manner in which such
    executive or the Board, as the case may be, believes that the Participant
    has not substantially performed his duties, (ii) the Participant's engaging
    in willful and serious misconduct that is injurious to Holding, the Company
    or any Subsidiary, (iii) the Participant's having been convicted of, or
    entered a plea of guilty or nolo contendere to, a crime that constitutes a
    felony, (iv) the willful and material breach by the Participant of any
    written covenant or

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    agreement with Holding, the Company or any Subsidiary not to disclose any
    information pertaining to Holding, the Company or any Subsidiary or not to
    compete or interfere with Holding, the Company or any Subsidiary or any code
    of conduct or ethics maintained by Holding, the Company or any Subsidiary or
    (v) the breach by the Participant of his obligations pursuant to the
    "take-along" provisions set forth in any Subscription Agreement to which he
    is or becomes a party; and, with respect to an Eligible Director, shall mean
    the removal of the Participant as a Director by a majority of the holders of
    Common Stock then entitled to vote at an election of directors due to (i)
    the willful failure by the Participant to perform substantially his duties
    as a Director (other than any such failure due to physical or mental
    illness) after receipt of a notice which identifies the manner in which the
    Board or the shareholders believe that the Participant has not substantially
    performed his duties, (ii) the Participant's engaging in willful and serious
    misconduct that is injurious to Holding, the Company or any Subsidiary,
    (iii) the Participant's having been convicted of, or entered a plea of
    guilty or nolo contendere to, a crime that constitutes a felony, (iv) the
    willful and material breach by the Participant of any written covenant or
    agreement with Holding, the Company or any Subsidiary not to disclose any
    information pertaining to Holding, the Company or any Subsidiary or not to
    compete or interfere with Holding, the Company or any Subsidiary or any code
    of conduct or ethics maintained by Holding, the Company or any Subsidiary
    applicable to Directors, (v) the breach by the Participant of his
    obligations pursuant to the "take-along" provisions set forth in any
    Subscription Agreement to which he is or becomes a party or (vi) for any
    other reason constituting cause under applicable Delaware corporate law.

        (6)     "Change in Control" means the first to occur of the following
    events after the Effective Date:

                (i)     the acquisition by any person, entity or "group" (as
        defined in Section 13(d) of the Securities Exchange Act of 1934, as
        amended), other than Holding, the Company, any Subsidiary, any employee
        benefit plan of Holding, the Company or any Subsidiary, or BRS or the
        C&D Fund, of 50% or more of the combined voting power of Holding's then
        outstanding voting securities;

                (ii)    the merger or consolidation of Holding, as a result of
        which persons who were stockholders of Holding immediately prior to such
        merger or consolidation, do not, immediately thereafter, own, directly
        or indirectly, more than 50% of the combined voting power entitled to
        vote generally in the election of directors of the merged or
        consolidated company;

                (iii)   the liquidation or dissolution of Holding or the Company
        other than a liquidation or dissolution of the Company into Holding or
        Holding into the

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        Company or for the purposes of effecting a corporate restructuring or
        reorganization as a result of which persons who were stockholders of
        Holding immediately prior to such liquidation or dissolution continue to
        own immediately therefore directly or indirectly, more than 50% of the
        combined voting power entitled to vote generally in the election of
        directors of the entity that owns, directly or indirectly, substantially
        all of the assets of Holding or the Company following such transaction;
        or

                (iv)    the sale, transfer or other disposition of all or
        substantially all of the assets of Holding or the Company to one or more
        persons or entities that are not, immediately prior to such sale,
        transfer or other disposition, affiliates of Holding, the Company, BRS
        or the C&D Fund.

        (7)     "Change in Control Price" means the price per share of Common
    Stock offered in conjunction with any transaction resulting in a Change in
    Control (as determined in good faith by the Board if any part of the offered
    price is payable other than in cash).

        (8)     "Code" means the Internal Revenue Code of 1986, as amended, and
    any successor provisions thereto.

        (9)     "Common Stock" means the Class A Common Stock, par value $.01
    per share, of Holding.

        (10)    "Company" means Remington Arms Company, Inc., a Delaware
    corporation and any successor thereto.

        (11)    "Director" means each individual serving as a director on the
    Board.

        (12)    "Effective Date" means the date on which the Plan is approved by
    a majority of the holders of the Common Stock.

        (13)    "Eligible Director" means each individual serving as a member of
    the Board who is not an employee of Holding, the Company or any Subsidiary
    and is not an employee of or associated with the C&D Fund, Clayton, Dubilier
    & Rice, Inc., BRS or Bruckmann, Rosser, Sherrill & Co., Inc.

        (14)    "Employee" means any executive or senior officer or other
    executive or key employee of Holding, the Company or any Subsidiary.

        (15)    "Exercise Shares" means shares of Common Stock that may be
    purchased by a Participant upon the exercise of his Covered Options.

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        (16)    "Fair Market Value" means, as of any date, the fair market value
    on such date per share of Common Stock as determined in good faith by the
    Board. In making a determination of Fair Market Value, the Board shall give
    due consideration for such factors as it deems appropriate, including,
    without limitation, the earnings and certain other financial and operating
    information of Holding in recent periods, the potential value of Holding as
    a whole, the future prospects of Holding and the industries in which it
    competes, the history and management of Holding, the general condition of
    the securities markets, the fair market value of securities of companies
    engaged in businesses similar to those of Holding and, if a valuation of the
    Common Stock shall have been performed by an independent valuation firm,
    such valuation. Nothing herein shall obligate the Board to obtain any such
    independent valuation. The determination of Fair Market Value will not give
    effect to any restrictions on transfer of the Shares or the fact that such
    Shares would represent a minority interest in Holding. The Fair Market Value
    as determined in good faith by the Board and in the absence of fraud shall
    be binding and conclusive upon Holding, the Company and each Participant.

        (17)    "Grant Date" means, with respect to any Option, the date on
    which such Option is granted pursuant to the Plan.

        (18)    "Holding" means RACI Holding, Inc., a Delaware corporation and
    any successor thereto.

        (19)    "Involuntary Termination" means a termination of a Participant
    as an employee, consultant or Director, as the case may be, by the New
    Employer for any reason.

        (20)    "New Employer" means the Participant's employer or the entity
    retaining the Participant as a consultant or the entity for whom the
    Director serves as a director, as the case may be, or the parent or a
    subsidiary of such employer or entity, immediately following a Change in
    Control.

        (21)    "Option" means the right granted pursuant to the Plan to
    purchase one share of Common Stock at a price determined in accordance with
    Section 6.2.

        (22)    "Option Agreement" means an agreement between Holding and the
    Participant embodying the terms of any Options granted hereunder, which
    agreement shall, unless the Board otherwise determines, be substantially in
    the form of the management stock option agreement attached hereto as Exhibit
    A-1 in the case of a Participant who is an Employee and substantially in the
    form of the director stock option agreement attached hereto as Exhibit A-2
    in the case of a Participant who is an Eligible Director.

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        (23)    "Participant" means any Employee or Eligible Director who is a
    participant in the Plan.

        (24)    "Permanent Disability" means a physical or mental disability or
    infirmity that prevents the performance of a Participant's employment-
    related or director-related duties for a continuous period of six months or
    longer. The Board's reasoned and good faith judgment of Permanent Disability
    shall be final and shall be based on such competent medical evidence as
    shall be presented to it by the Participant or by any physician or group of
    physicians or other competent medical expert employed by the Participant or
    Holding to advise the Board.

        (25)    "Plan" means this RACI Holding, Inc. 2003 Stock Incentive Plan.

        (26)    "Public Offering" means the first day as of which sales of
    Common Stock are made to the public in the United States pursuant to an
    underwritten public offering of the Common Stock led by one or more
    underwriters at least one of which is an underwriter of nationally
    recognized standing.

        (27)    "Retirement" means a Participant's retirement at age 65 or
    later.

        (28)    "Special Termination" has the meaning given in Section 7.1.

        (29)    "Stock Purchase Right" shall mean the right to purchase one
    Share at a purchase price equal to the Fair Market Value during a limited
    period of time specified by the Board.

        (30)    "Subscription Agreement" means a stock subscription agreement
    between Holding and the Participant embodying the terms of any stock
    purchase made pursuant to the Plan, which agreement shall, unless the Board
    otherwise determines, be substantially in the form of the management stock
    subscription agreement attached hereto as Exhibit B-1 in the case of a
    Participant who is an Employee and substantially in the form of the director
    stock subscription agreement attached hereto as Exhibit B-2 in the case of a
    Participant who is an Eligible Director.

        (31)    "Subsidiary" means any corporation, a majority of whose
    outstanding voting securities is owned, directly or indirectly, by Holding.

        2.2.    Gender and Number. Except when otherwise indicated by the
context, words in the masculine gender used in the Plan shall include the
feminine gender, the singular shall include the plural, and the plural shall
include the singular.

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                    Section 3. Eligibility and Participation

        Participants in the Plan shall be those Employees and Eligible Directors
selected by the Board to participate in the Plan. The selection of any person as
a Participant shall neither entitle such person to nor disqualify such person
from participation in any other award or incentive plan.

                         Section 4. Powers of the Board

        4.1.    Power to Grant. The Board shall determine the Participants to
whom Options shall be granted and the terms and conditions of any and all
Options granted to Participants. In making such determination, the Board shall
give due consideration to such factors as it deems appropriate.

        4.2.    Administration. The Board shall be responsible for the
administration of the Plan. Any authority exercised by the Board under the Plan
shall be exercised by the Board in its sole discretion. Subject to the terms of
the Plan, the Board, by majority action thereof, is authorized to prescribe,
amend and rescind rules and regulations relating to the administration of the
Plan, to provide for conditions and assurances deemed necessary or advisable to
protect the interests of Holding and the Company, and to make all other
determinations necessary or advisable for the administration and interpretation
of the Plan in order to carry out its provisions and purposes. Determinations,
interpretations or other actions made or taken by the Board pursuant to the
provisions of the Plan shall be final, binding and conclusive for all purposes
and upon all persons.

        4.3.    Delegation by the Board. All of the powers, duties and
responsibilities of the Board specified in this Plan may, to the full extent
permitted by applicable law, be exercised and performed by any duly constituted
committee thereof to the extent authorized by the Board to exercise and perform
such powers, duties and responsibilities.

                        Section 5. Shares Subject to Plan

        5.1.    Number. Subject to the provisions of Sections 5.2 and 5.3, the
maximum number of shares of Common Stock that may be issued under the Plan or be
subject to Options granted under the Plan may not exceed 15,890. The shares of
Common Stock to be delivered under the Plan may consist, in whole or in part, of
treasury Common Stock or authorized but unissued Common Stock, not reserved for
any other purpose.

        5.2.    Canceled, Terminated or Forfeited Options. The shares of Common
Stock subject to any Option which for any reason is canceled, terminated or
otherwise forfeited, in whole or in part, without having been exercised, shall
again be available for grant under the Plan.

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        5.3.    Adjustment in Capitalization. The number of shares of Common
Stock available for issuance under the Plan and the number, class and exercise
price of any outstanding Options (and the number of shares of Common Stock
subject to outstanding Options), may be adjusted by the Board, in its sole
discretion, if it shall deem such an adjustment to be necessary or appropriate
to reflect any dividend payable in shares of capital stock, stock split or share
combination or any recapitalization, merger, consolidation, exchange of shares,
liquidation or dissolution of Holding.

                           Section 6. Terms of Options

        6.1.    Grant of Options. Options may be granted to Participants at such
time or times as shall be determined by the Board. Options granted pursuant to
the Plan will not be qualified as incentive stock options under the Code unless
otherwise determined by the Board. Each Option granted to a Participant shall be
evidenced by an Option Agreement that shall specify the number of shares of
Common Stock that may be purchased pursuant to such Option, the exercise price
at which a share of Common Stock may be purchased pursuant to such Option, the
duration of such Option and such other terms consistent with the Plan as the
Board shall determine, including customary representations, warranties and
covenants with respect to securities law matters.

        6.2.    Exercise Price. The exercise price per share of Common Stock to
be purchased upon exercise of an Option shall be determined by the Board but
shall not be less than the Fair Market Value on the Grant Date.

        6.3.    Exercise of Options. The Options granted to a Participant at any
time shall become exercisable in accordance with the vesting schedule and/or
upon the attainment of such performance criteria as shall be specified by the
Board on or before the Grant Date, provided that (a) 100% of such Options shall
become exercisable to the extent provided in Section 8.1, (b) the Board may
accelerate the exercisability of any Option, all Options or any class of
Options, at any time and from time to time and (c) if the Board does not specify
a vesting schedule for Options granted to any Participant on the Grant Date,
one-third of the Options shall vest and become exercisable at the end of each of
the third, fourth and fifth anniversaries of the date of the grant of such
Options. No Options may be exercised until all requisite governmental approvals
and consents have been obtained, the Exercise Shares to be issued in connection
with the exercise of such Options have been registered under the applicable
securities laws (or the issuance of such Exercise Shares is exempt from such
registration), and all applicable tax withholding requirements have been
satisfied. As a condition to the exercise of any Option, such Participant shall
enter into a Subscription Agreement. Notwithstanding any other provision of the
Plan, each Option shall terminate and shall not be exercisable on or after the
tenth anniversary of the Grant Date of such Option.

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        6.4.    Payment. The Board shall establish procedures governing the
exercise of Options, which procedures shall generally require that written
notice of the exercise thereof be given and that the exercise price thereof be
paid in full in cash or cash equivalents, including by personal check, at the
time of exercise. However, in the event that shares of Common Stock are listed
for trading on a national securities exchange or bid and ask prices for shares
of Common Stock are quoted over the NASDAQ National Market System operated by
the National Association of Securities Dealers, Inc., the Participant may, in
lieu of cash, tender shares of Common Stock having a market price on the date of
exercise of his Option equal to the purchase price of such Exercise Shares or
may deliver a combination of cash and shares of Common Stock having a market
price equal to the difference between the exercise price and the amount of such
cash being delivered as payment for the purchase price of such Exercise Shares,
subject to such rules and regulations as may be adopted by the Board to provide
for the compliance of such payment procedure with applicable law. Holding and
the Company may require the Participant to furnish or execute such other
documents as it shall reasonably deem necessary to (i) evidence such exercise,
(ii) determine whether registration is then required under the U.S. federal
securities laws, and (iii) comply with or satisfy the requirements of the U.S.
federal securities laws, applicable state or non-U.S. securities laws or any
other law. As soon as practicable after receipt of a written exercise notice and
payment in full of the exercise price of any Covered Options, Holding shall
deliver to the Participant a certificate or certificates representing the shares
of Common Stock acquired upon the exercise thereof.

                      Section 7. Termination of Employment

        7.1.    Special Termination. Unless otherwise provided in the agreement
governing any Option or otherwise determined by the Board at the Grant Date, in
the event that a Participant's employment with or, in the case of an Eligible
Director, service on the Board of Directors of , Holding, the Company and the
Subsidiaries terminates by reason of the Participant's death, Permanent
Disability or Retirement (each, a "Special Termination"), then any Options held
by the Participant shall immediately vest. Any such Option shall be exercisable
and shall remain exercisable until the first to occur of (i) the 180th day
following the date of the Participant's termination of employment, or (ii) the
expiration of the term of such Options. Any Options described in the preceding
sentence that are not exercised within the period specified shall terminate and
be canceled upon the expiration of such period.

        7.2.    Termination for Cause. In the event that a Participant's
employment with or, in the case of an Eligible Director, the Director's service
on the Board of Directors of, Holding, the Company and the Subsidiaries is
terminated for Cause, any Options (whether or not then exercisable) held by such
Participant shall terminate and be canceled immediately upon such termination of
employment or service, as applicable.

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        7.3.    Other Termination of Employment. Unless otherwise provided in
the agreement governing any Option or otherwise determined by the Board at or
after the Grant Date, in the event that a Participant's employment with or, in
the case of an Eligible Director, the director's service on the Board of
Directors of, Holding, the Company and the Subsidiaries terminates for any
reason other than (i) a Special Termination or (ii) for Cause, any Covered
Options held by such Participant shall remain exercisable for a period of 60
days after the termination of employment (or, if shorter, during the remaining
term of the Options). Any Options held by the Participant that are not
exercisable at the date of the Participant's termination of employment or
service, as applicable, shall terminate and be canceled immediately upon such
termination, and any Covered Options described in the preceding sentence that
are not exercised within the period specified shall terminate and be canceled
upon the expiration of such period.

        7.4.    Certain Rights upon Termination of Employment Prior to Public
Offering. Unless otherwise provided in the agreement governing an Option or
otherwise determined by the Board at the Grant Date, the Board shall provide in
each Subscription Agreement for any Employee that (a) upon the termination of a
Participant's employment for any reason prior to a Public Offering, Holding and
the C&D Fund and BRS shall have successive rights to purchase all or any of the
shares of Common Stock acquired by a Participant upon exercise of an Option
(whether acquired before or after such termination) at the purchase price
provided in such agreement and (b) a Participant may require Holding to
repurchase all (but not less than all) of his shares upon the termination of the
Participant's employment due to a Special Termination prior to a Public Offering
for a purchase price per share equal to the Fair Market Value of a share of
Common Stock, determined on the later of the date of the Participant's
termination of employment and six months and one day after the shares were
acquired by the Purchaser, and upon such additional terms and conditions as are
set forth in the applicable Option Agreement or Subscription Agreement. The
foregoing right of a Participant to require Holding to repurchase any shares
shall (a) be subject to the terms of the Subscription Agreement pursuant to
which shares are issued and to Holding having the ability to do so under the
terms of its financing arrangements and under Delaware law and (b) shall
terminate on a Public Offering.

                          Section 8. Change in Control

        8.1.    Accelerated Vesting and Payment. Unless the Board shall
otherwise determine in the manner set forth in Section 8.2, in the event of a
Change in Control, each Option shall be canceled in exchange for a payment in
cash of an amount equal to the excess, if any, of the Change in Control Price
over the exercise price for such Option.

        8.2.    Alternative Options. Notwithstanding Section 9.1, no
cancellation, acceleration of exercisability, issuance of shares, vesting or
cash settlement or other

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payment shall occur with respect to any Option if the Board reasonably
determines in good faith, prior to the occurrence of a Change in Control, that
such Option shall be honored or assumed, or new rights substituted therefor
(such honored, assumed or substituted Option being hereinafter referred to as an
"Alternative Option") by the New Employer, provided that any such Alternative
Option must:

        (a)     provide the Participant that held such Option with rights and
    entitlements substantially equivalent to or better than the rights, terms
    and conditions applicable under such Option, including, but not limited to,
    an identical or better exercise and vesting schedule, identical or better
    timing and methods of payment and, if the Alternative Option or the
    securities underlying them are not publicly traded, identical or better
    rights to require Holding or the New Employer to repurchase the Alternative
    Options;

        (b)     have substantially equivalent economic value to such Option
    (determined at the time of the Change in Control); and

        (c)     have terms and conditions that provide that if such Participant
    suffers an Involuntary Termination within two years following a Change in
    Control:

                (i)     any conditions on such Participant's rights under, or
        any restrictions on transfer or exercisability applicable to, each such
        Alternative Option shall be waived or shall lapse, as the case may be;
        or

                (ii)    such Participant shall have the right to surrender such
        Alternative Option within 30 days following such termination in exchange
        for a payment in cash equal to the excess of the Fair Market Value of
        the Common Stock subject to the Alternative Option over the price, if
        any, that such Participant would be required to pay to exercise such
        Alternative Option.

         Section 9. Amendment, Modification, and Termination of the Plan

        The Board at any time may terminate or suspend the Plan, and from time
to time may amend or modify the Plan. No amendment, modification, termination or
suspension of the Plan shall in any manner adversely affect any Option
theretofore granted under the Plan without the consent of the Participant
holding such Option. Shareholder approval of any such amendment, modification,
termination or suspension shall be obtained to the extent mandated by applicable
law, or if otherwise deemed appropriate by the Board.

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                      Section 10. Miscellaneous Provisions

        10.1.   Nontransferability of Options. No Options granted under the Plan
may be sold, transferred, pledged, assigned, encumbered or otherwise alienated
or hypothecated, other than by will or by the laws of descent and distribution
and provided that the deceased Participant's beneficiary or the representative
of his estate acknowledges and agrees in writing, in a form reasonably
acceptable to be bound by the provisions of the Plan (including the purchase
rights described in Section 7.4) and the agreement covering such Options as if
such beneficiary or estate were the Participant. All rights with respect to
Options granted to a Participant under the Plan shall be exercisable during his
life-time by such Participant only. Following a Participant's death, all rights
with respect to Options that were outstanding at the time of such Participant's
death and have not terminated shall be exercised by his designated beneficiary
or by his estate.

        10.2.   Beneficiary Designation. Each Participant under the Plan may
from time to time name any beneficiary or beneficiaries (who may be named
contingently or successively) by whom any right under the Plan is to be
exercised in case of his death. Each designation will revoke all prior
designations by the same Participant, shall be in a form reasonably prescribed
by the Board, and will be effective only when filed by the Participant in
writing with the Board during his lifetime.

        10.3.   No Guarantee of Employment, Service or Participation. Nothing in
the Plan or in any agreement granted hereunder shall interfere with or limit in
any way the right of Holding, the Company, any Subsidiary or, in the case of a
Director, Holding's shareholders, to terminate any Participant's employment,
retention or service at any time, or confer upon any Participant any right to
continue in the employ or retention of, or service as a Director of, Holding,
the Company or any Subsidiary. No Employee or Eligible Director shall have a
right to be selected as a Participant or, having been so selected, to receive
any Options.

        10.4.   Tax Withholding. Holding, the Company or the Subsidiary
employing or retaining a Participant shall have the power to withhold, or to
require such Participant to remit to Holding, the Company or such Subsidiary,
subject to such other arrangements as the Board may set forth in the agreement
governing such Option to which such Participant is a party, an amount sufficient
to satisfy all federal, state, local and foreign withholding tax requirements in
respect of any Option granted under the Plan.

        10.5.   Indemnification. Each person who is or shall have been a member
of the Board or any committee of the Board shall be indemnified and held
harmless by Holding to the fullest extent permitted by law from and against any
and all losses, costs, liabilities and expenses (including any related
attorneys' fees and advances thereof) in connection with, based upon or arising
or resulting from any claim, action, suit or proceeding to

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which he may be made a party or in which he may be involved by reason of any
action taken or failure to act under or in connection with the Plan and from and
against any and all amounts paid by him in settlement thereof, with Holding's
approval, or paid by him in satisfaction of any judgment in any such action,
suit or proceeding against him, provided that he shall give Holding an
opportunity, at its own expense, to defend the same before he undertakes to
defend it on his own behalf. The foregoing right of indemnification shall not be
exclusive and shall be independent of any other rights of indemnification to
which such persons may be entitled under Holding's Certificate of Incorporation
or By-laws, by contract, as a matter of law, or otherwise.

        10.6.   No Limitation on Compensation. Nothing in the Plan shall be
construed to limit the right of Holding, the Company or any Subsidiary to
establish other plans or to pay compensation to its employees or consultants, in
cash or property, in a manner that is not expressly authorized under the Plan.

        10.7.   Requirements of Law. The granting of Options and the issuance of
shares of Common Stock pursuant to the Plan shall be subject to all applicable
laws, rules and regulations, and to such approvals by any governmental agencies
or national securities exchanges as may be required. No Options shall be granted
under the Plan, and no shares of Common Stock shall be issued under the Plan, if
such grant or issuance would result in a violation of applicable law, including
the federal securities laws and any applicable state securities laws.

        10.8.   Freedom of Action. Subject to Section 9, nothing in the Plan or
any Option Agreement shall be construed as limiting or preventing Holding, the
Company or any Subsidiary from taking any action that it deems appropriate or in
its best interest.

        10.9.   Term of Plan. The Plan shall be effective as of the Effective
Date. The Plan shall continue in effect, unless sooner terminated pursuant to
Section 9, until the tenth anniversary of the Effective Date. The provisions of
the Plan, however, shall continue thereafter to govern all outstanding Options
theretofore granted.

        10.10.  No Voting Rights. Except as otherwise required by law, no
Participant holding any Options granted under the Plan shall have any right, in
respect of such Options, to vote on any matter submitted to Holding's
stockholders until such time as the shares of Common Stock related to any Stock
Purchase Right or issuable upon exercise of such Options have been issued.

        10.11.  Governing Law. The Plan, and all agreements hereunder, shall be
governed by and construed in accordance with the law of the State of Delaware

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                                                                   EXHIBIT 10.54

                        MANAGEMENT STOCK OPTION AGREEMENT

        MANAGEMENT STOCK OPTION AGREEMENT, dated as of June 13, 2003, between
RACI Holding, Inc., a Delaware corporation ("Holding"), and the Grantee whose
name appears on the signature page hereof (the "Grantee").

                              W I T N E S S E T H:

        WHEREAS, the Board of Directors of Holding (the "Board") approved the
grant to the Grantee of nonqualified stock options to purchase shares of Class A
Common Stock, par value $.01 per share ("Common Stock"), of Holding set forth on
the signature page hereof (each, a "Share" and, collectively, the "Shares")
pursuant to the RACI Holding, Inc. 2003 Stock Option Plan (the "Plan") effective
as of June 13, 2003; and

        WHEREAS, the Grantee and Holding desire to enter into an agreement to
evidence and confirm the grant of such options on the terms and conditions set
forth herein;

        NOW, THEREFORE, to evidence the stock options so granted, and to set
forth the terms and conditions thereof, Holding and the Grantee hereby agree as
follows:

        1.      Confirmation of Grant; Option Price. Holding hereby evidences
and confirms its grant to the Grantee, effective as of the Grant Date, of (a)
service options (the "Service Options") to purchase the number of Shares set
forth on the signature page hereof and designated as Service Options and (b)
performance options (the "Performance Options" and, together with the Service
Options, the "Options") to purchase the number of Shares set forth on the
signature page hereof and designated as Performance Options, in each case at the
option price per share set forth on the signature page hereof (as adjusted from
time to time pursuant to Section 10, the "Option Price"). The Options are not
intended to be incentive stock options under the U.S. Internal Revenue Code of
1986, as amended. This Agreement is subordinate to, and the terms and conditions
of the Options granted hereunder are subject to, the terms and conditions of the
Plan.

        2.      Exercisability. (a) Service Options. Except as otherwise
provided in this Agreement, one-half of the Service Options shall become vested
and exercisable on the fourth anniversary of the Grant Date and the remaining
half of the Service Options shall become vested and exerciseable on the fifth
anniversary of the Grant Date, subject to the continued employment of the
Grantee until the applicable vesting date.

        (b)     Performance Options. Except as otherwise provided in this
Agreement and subject to the continuous employment of the Grantee with Holding,
the Company, or any Subsidiary until the applicable vesting date, the
Performance Options shall become vested as follows:

<PAGE>

                (i)     one-third of the total number of Performance Options
        granted hereunder shall become vested on each of the first three
        anniversaries of the Grant Date, provided in each such case that actual
        EBITDA achieved by Holding and its consolidated Subsidiaries during the
        immediately preceding Fiscal Year equals or exceeds the Annual EBITDA
        Target for such Fiscal Year;

                (ii)    if less than one-third of the total number of
        Performance Options granted hereunder shall have become vested on any of
        the first three anniversaries of the Grant Date in accordance with the
        preceding clause (i), such portion that has not become so vested shall
        become vested on the second or third anniversary, as applicable, of the
        Grant Date; provided in each such case that the actual aggregate EBITDA
        achieved by Holding, the Company and the Subsidiaries during the period
        from January 1, 2003 through the end of the Fiscal Year immediately
        preceding such anniversary equals or exceeds the Cumulative EBITDA
        Target for such period; and

                (iii)   any Performance Options that do not become vested in
        accordance with the preceding clauses (i) or (ii) shall become vested on
        the ninth anniversary of the Grant Date.

The Board shall determine in good faith whether and the extent to which Holding,
the Company and the Subsidiaries have achieved the Annual EBITDA Targets and the
determination of the Board shall be final, binding and conclusive.

        (c)     Notwithstanding the foregoing, the Board may accelerate the
exercisability of any Option, all Options or any class of Options, at any time
and from time to time. Shares eligible for purchase pursuant to vested and
exercisable Options may be purchased, subject to the provisions hereof, and
pursuant to and subject to the provisions contained in the Management Stock
Subscription Agreement (as defined in Section 5) related to such Shares, at any
time and from time to time on or after the date the related Options become
vested and exercisable until the date one day prior to the date on which such
Options terminate.

        3.      Termination of Options.

        (a)     Normal Termination Date. Unless an earlier termination date is
specified in Section 3(b), the Options shall terminate on the tenth anniversary
of the date hereof (the "Normal Termination Date").

        (b)     Early Termination. If the Grantee's Active Employment (as
defined below) is voluntarily or involuntarily terminated for any reason other
than a Special Termination (as defined below) prior to the Normal Termination
Date, any Options that have not become vested and exercisable on or before the
effective date of such termination of employment shall terminate on such
effective date. If the Grantee's Active Employment is terminated by reason of
the Grantee's death, Permanent Disability

                                        2

<PAGE>

or Retirement (each a "Special Termination"), then all Options held by the
Grantee shall become immediately vested and exercisable and shall remain
exercisable until the first to occur of (A) the 180th day following the
effective date of such Special Termination or (B) the Normal Termination Date.
If the Grantee's Active Employment is terminated for any reason other than (i) a
Special Termination or (ii) for Cause, any vested and exercisable Options then
held by the Grantee shall remain exercisable for a period of sixty days
following the effective date of such termination of employment. Notwithstanding
anything else contained in this Agreement, if the Grantee's Active Employment is
terminated for Cause, then all Options (whether or not then vested or
exercisable) shall terminate and be canceled immediately upon such termination,
regardless of whether then vested or exercisable. Nothing in this Agreement
shall be deemed to confer on the Grantee any right to continue in the employ of
the Company or any of its direct or indirect subsidiaries, or to interfere with
or limit in any way the right of the Company or any of such subsidiaries to
terminate the Grantee's employment at any time.

        4.      Restrictions on Exercise; Non-Transferability of Option.

        (a)     Restrictions on Exercise. The Options may be exercised only with
respect to full shares of Common Stock. No fractional shares of Common Stock
shall be issued. Notwithstanding any other provision of this Agreement, the
Options may not be exercised in whole or in part, and no certificates
representing Shares shall be delivered, (i) unless all requisite approvals and
consents of any governmental authority of any kind having jurisdiction over the
exercise of the Options shall have been secured, (ii) unless the purchase of the
Shares upon the exercise of the Options shall be exempt from registration under
applicable U.S. federal and state securities laws, or the Shares shall have been
registered under such laws, (iii) unless all applicable U.S. federal, state and
local and non-U.S. tax withholding requirements shall have been satisfied or
(iv) if such exercise would cause a change in control of Holding and thereby
result in a violation of the terms or provisions of or a default or an event of
default under the Credit Agreement. Holding shall use reasonable best efforts to
obtain the consents and approvals referred to in clause of the preceding
sentence.

        (b)     Non-Transferability of Options. The Options may be exercised
only by the Grantee or by the Grantee's estate, are not assignable or
transferable, in whole or in part and they may not, directly or indirectly, be
offered, transferred, sold, pledged, assigned, alienated, hypothecated or
otherwise disposed of or encumbered (including without limitation by gift,
operation of law or otherwise) other than by will or by the laws of descent and
distribution to the estate of the Grantee upon the Grantee's death; provided
that the deceased Grantee's beneficiary or the representative of the Grantee's
estate shall acknowledge and agree in writing, in a form reasonably acceptable
to Holding, to be bound by the provisions of this Agreement and the Plan as if
such beneficiary or the estate were the Grantee.

                                        3

<PAGE>

        (c)     Certain Definitions. As used in this Agreement the following
terms shall have the following meanings:

                (i)     "Active Employment" shall mean the Grantee's active
        employment with the Company or any Subsidiary.

                (ii)    "Annual EBITDA Target" shall mean, with respect to each
        of the 2003, 2004 and 2005 Fiscal Years, actual aggregated EBITDA
        achieved by Holding, the Company and the Subsidiaries of $60 million;
        provided, however, that in the event Holding, the Company or any
        Subsidiary consummates a significant acquisition, disposition or other
        corporate transaction or series of transactions that, in the judgment of
        the Board, would reasonably be expected to impact the consolidated
        earnings of Holding, the Company and the Subsidiaries, the Annual EBITDA
        Target for the relevant Fiscal Years may be appropriately adjusted by
        the Board to reflect such transaction or series of transactions.

                (iii)   "BRS" shall mean Bruckmann, Rosser, Sherrill & Co. II,
        L.P. together with any successor or other investment vehicle managed by
        Bruckmann, Rosser, Sherrill & Co., Inc.

                (iv)    "C&D Fund" shall mean The Clayton & Dubilier Private
        Equity Fund IV Limited Partnership, a Connecticut limited partnership,
        together with any successor or other investment vehicle managed by
        Clayton, Dubilier & Rice, Inc.

                (v)     "Cause" shall mean (A) the willful failure by the
        Grantee to perform substantially his duties as an employee of Holding,
        the Company or any Subsidiary (other than any such failure due to
        physical or mental illness) after a demand for substantial performance
        is delivered to the Grantee by the executive to whom the Grantee reports
        or by the Board, which notice identifies the manner in which such
        executive or the Board, as the case may be, believes that the Grantee
        has not substantially performed his duties, (B) the Grantee's engaging
        in willful and serious misconduct that is injurious to Holding, the
        Company or any Subsidiary, (C) the Grantee's having been convicted of,
        or entered a plea of guilty or nolo contendere to, a crime that
        constitutes a felony, (D) the willful and material breach by the Grantee
        of any written covenant or agreement with Holding, the Company or any
        Subsidiary not to disclose any information pertaining to Holding, the
        Company or any Subsidiary or not to compete or interfere with Holding,
        the Company or any Subsidiary or any code of conduct or ethics
        maintained by Holding, the Company or any Subsidiary or (E) the breach
        by the Grantee of his obligations pursuant to the "take-along"
        provisions set forth in any Management Stock Subscription Agreement to
        which he is or becomes a party.

                (vi)    "Credit Agreement" shall mean the Credit Agreement,
        dated as of January 24, 2003, (the "Credit Agreement"), among the
        Company, RA Factors,

                                        4

<PAGE>

        Inc., Wachovia Bank, National Association, as administrative and
        collateral agent, Fleet Capital Corporation, as syndication agent,
        National City Commercial Finance, Inc., as documentation agent and the
        other banks and financial institutions party thereto from time to time;
        and the Indenture, dated as of January 24, 2003, (the "Indenture") among
        the Company and RBC Holding, Inc., RA Brands, L.L.C. and RA Factors,
        Inc., as guarantors, and U.S. Bank National Association, as Trustee, as
        the same may be amended, modified or supplemented from time to time.

                (vii)   "Company" shall mean Remington Arms Company, Inc., a
        Delaware corporation and any successor thereto.

                (viii)  "Cumulative EBITDA Target" shall mean, with respect to
        the period from January 1, 2003 through the end of the 2004 Fiscal Year,
        $120 million and, with respect to the period from January 1, 2003
        through the end of the 2005 Fiscal Year, $180 million; provided,
        however, that in the event Holding, the Company or any Subsidiary
        consummates a significant acquisition, disposition or other corporate
        transaction or series of transactions that, in the judgment of the
        Board, would reasonably be expected to impact the consolidated earnings
        of Holding, the Company and the Subsidiaries, the Cumulative EBITDA
        Target for the relevant Fiscal Years may be appropriately adjusted by
        the Board to reflect such transaction or series of transactions.

                (ix)    "EBITDA" shall have the meaning assigned to such term in
        the Credit Agreement.

                (x)     "Fiscal Year" shall mean a fiscal year of Holding ending
        on December 31.

                (xi)    "Permanent Disability" shall mean a physical or mental
        disability or infirmity that prevents the performance of the Grantee's
        employment-related duties lasting (or likely to last, based on competent
        medical evidence presented to the Board) for a continuous period of six
        months or longer. The Board's reasoned and good faith judgment of
        Permanent Disability shall be final, binding and conclusive on all
        parties hereto and shall be based on such competent medical evidence as
        shall be presented to it by the Grantee or by any physician or group of
        physicians or other competent medical expert employed by the Grantee or
        Holding to advise the Board.

                (xii)   "Retirement" shall mean the Grantee's retirement from
        Active Employment at age 65 or later.

                (xiii)  "Subsidiary" shall mean any corporation, a majority of
        whose outstanding voting securities is owned, directly or indirectly, by
        Holding.

                                        5

<PAGE>

        (d)     Withholding. Whenever Shares are to be issued pursuant to the
Options, Holding may require the recipient of the Shares to remit to Holding an
amount sufficient to satisfy any applicable U.S. federal, state and local and
non-U.S. tax withholding requirements.

        5.      Manner of Exercise. To the extent that any of the Options shall
have become and remain exercisable as provided in Section 2 and subject to such
reasonable administrative regulations as the Board may have adopted, the Options
may be exercised, in whole or in part, by notice to the Secretary of Holding in
writing given 15 business days prior to the date on which the Grantee will so
exercise the Options (the "Exercise Date"), specifying the number of Shares with
respect to which the Options are being exercised (the "Exercise Shares") and the
Exercise Date, provided that if shares of Common Stock are traded on a U.S.
national securities exchange or bid and ask prices for shares of Common Stock
are quoted over NASDAQ, notice may be given five business days before the
Exercise Date. On or before any Exercise Date occurring prior to a Public
Offering, Holding and the Grantee shall enter into a Management Stock
Subscription Agreement substantially in the form attached as Exhibit B-1 to the
Plan ("Management Stock Subscription Agreement"), or in such other form as may
be agreed upon by Holding and the Grantee, such Management Stock Subscription
Agreement to contain provisions corresponding to Section 4(c) hereof, and the
Exercise Shares shall be subject to the transfer restrictions, repurchase rights
and other provisions contained therein and in the Amended and Restated
Registration and Participation Agreement, dated as of February 12, 2003, among
Holding and each of the other persons party thereto (the "Registration and
Participation Agreement"). In addition, (a) on or before the Exercise Date, the
Grantee shall deliver to Holding full payment for the Exercise Shares in United
States dollars in cash, or cash equivalent satisfactory to Holding, and in an
amount equal to the product of the number of Exercise Shares and the Option
Price (the "Exercise Price") and (b) on the Exercise Date, subject to any
bailment arrangement agreed to by Holding and the Grantee, Holding shall deliver
to the Grantee a certificate or certificates representing the Exercise Shares,
registered in the name of the Grantee. If shares of Common Stock are traded on a
U.S. national securities exchange or bid and ask prices for shares of Common
Stock are quoted over NASDAQ, the Grantee may, in lieu of cash, tender shares of
Common Stock that have been owned by the Grantee for a minimum period of six
months, having a market price on the Exercise Date equal to the Exercise Price
or may deliver a combination of cash and such shares of Common Stock having a
market price equal to the difference between the Exercise Price and the amount
of such cash as payment of the Exercise Price, subject to such rules and
regulations as may be adopted by the Board to provide for the compliance of such
payment procedure with applicable law, including Section 16(b) of the Exchange
Act. Holding may require the Grantee to furnish or execute such other documents
as Holding shall reasonably deem necessary (i) to evidence such exercise, (ii)
to determine whether registration is then required under the U.S. Securities Act
of 1933, as amended (the "Securities Act"), and (iii) to comply with or satisfy
the requirements of the Securities Act, applicable state or non-U.S. securities
laws or any other law.

                                        6

<PAGE>

        6.      Grantee's Representations, Warranties and Covenants.

        (a)     Investment Intention. The Grantee represents and warrants that
the Options have been, and covenants that any Exercise Shares will be, acquired
by the Grantee solely for the Grantee's own account for investment and not with
a view to or for sale in connection with any distribution thereof. The Grantee
agrees that the Grantee will not, directly or indirectly, offer, transfer, sell,
pledge, hypothecate or otherwise dispose of all or any of the Options or any of
the Exercise Shares (or solicit any offers to buy, purchase or otherwise acquire
or take a pledge of all or any of the Options or any of the Exercise Shares),
except in compliance with the Securities Act and the rules and regulations of
the Securities and Exchange Commission (the "Commission") thereunder, and in
compliance with applicable state and foreign securities or "blue sky" laws. The
Grantee further understands, acknowledges and agrees that none of the Exercise
Shares may be transferred, sold, pledged, hypothecated or otherwise disposed of
unless the provisions of any related Management Stock Subscription Agreement
shall have been complied with or have expired.

        (b)     Legend. The Grantee acknowledges that any certificate
representing the Exercise Shares shall bear an appropriate legend, which will
include, without limitation, the following language in the case of any such
certificates issued prior to a Public Offering:

                "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
                PROVISIONS OF A MANAGEMENT STOCK SUBSCRIPTION AGREEMENT, DATED
                AS OF ___________, ____, AND NEITHER THIS CERTIFICATE NOR THE
                SHARES REPRESENTED BY IT ARE ASSIGNABLE OR OTHERWISE
                TRANSFERABLE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH
                MANAGEMENT STOCK SUBSCRIPTION AGREEMENT, AS THE SAME MAY BE
                AMENDED FROM TIME TO TIME, A COPY OF WHICH IS ON FILE WITH THE
                SECRETARY OF THE ISSUER. THE SHARES REPRESENTED BY THIS
                CERTIFICATE ARE BOUND BY THE OBLIGATIONS SET FORTH IN AND MAY BE
                ENTITLED TO SOME OF THE BENEFITS OF AN AMENDED AND RESTATED
                REGISTRATION AND PARTICIPATION AGREEMENT, DATED AS OF FEBRUARY
                12, 2003, AMONG THE ISSUER AND CERTAIN STOCKHOLDERS OF THE
                ISSUER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
                ISSUER."

                "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                REGISTERED PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
                THE

                                        7

<PAGE>

                SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER ANY STATE
                OR FOREIGN SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD,
                PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS (i) (A)
                SUCH DISPOSITION IS PURSUANT TO AN EFFECTIVE REGISTRATION
                STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (B) THE
                HOLDER HEREOF SHALL HAVE DELIVERED TO THE ISSUER AN OPINION OF
                COUNSEL, WHICH OPINION AND COUNSEL SHALL BE REASONABLY
                SATISFACTORY TO THE ISSUER, TO THE EFFECT THAT SUCH DISPOSITION
                IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF SUCH ACT OR (C) A
                NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION,
                REASONABLY SATISFACTORY TO COUNSEL FOR HOLDING, SHALL HAVE BEEN
                OBTAINED WITH RESPECT TO SUCH DISPOSITION AND (ii) SUCH
                DISPOSITION IS PURSUANT TO REGISTRATION UNDER ANY APPLICABLE
                STATE OR FOREIGN SECURITIES LAWS OR AN EXEMPTION THEREFROM.

        (c)     Securities Law Matters. The Grantee acknowledges receipt of
advice from Holding that (i) the Exercise Shares have not been registered under
the Securities Act based on an exemption provided under Rule 701 promulgated
under the Securities Act or qualified under any state or foreign securities or
"blue sky" laws, (ii) it is not anticipated that there will be any public market
for the Exercise Shares, (iii) the Exercise Shares must be held indefinitely and
the Grantee must continue to bear the economic risk of the investment in the
Exercise Shares unless the Exercise Shares are subsequently registered under the
Securities Act and such state laws or an exemption from registration is
available, (iv) Rule 144 promulgated under the Securities Act ("Rule 144") is
not presently available with respect to the sales of the Exercise Shares and
Holding has made no covenant to make Rule 144 available, (v) when and if the
Exercise Shares may be disposed of without registration in reliance upon Rule
144, such disposition can be made only in accordance with the terms and
conditions of such Rule, (vi) Holding does not plan to file reports with the
Commission or make public information concerning Holding available unless
required to do so by law or by the terms of its Financing Agreements (as
hereinafter defined), (vii) if the exemption afforded by Rule 144 is not
available, sales of the Exercise Shares may be difficult to effect because of
the absence of public information concerning Holding, (viii) a restrictive
legend in the form heretofore set forth shall be placed on the certificates
representing the Exercise Shares and (ix) a notation shall be made in the
appropriate records of Holding indicating that the Exercise Shares are subject
to restrictions on transfer set forth in this Agreement and, if Holding should
in the future engage the services of a stock transfer agent, appropriate
stop-transfer restrictions will be issued to such transfer agent with respect to
the Exercise Shares.

                                        8

<PAGE>

        (d)     Compliance with Rule 144. If any of the Exercise Shares are to
be disposed of in accordance with Rule 144 under the Securities Act, the Grantee
shall transmit to Holding an executed copy of Form 144 (if required by Rule 144)
no later than the time such form is required to be transmitted to the Commission
for filing and such other documentation as Holding may reasonably require to
assure compliance with Rule 144 in connection with such disposition.

        (e)     Ability to Bear Risk. The Grantee covenants that the Grantee
will not exercise all or any of the Options unless (i) the financial situation
of the Grantee is such that the Grantee can afford to bear the economic risk of
Holding the Exercise Shares for an indefinite period and (ii) the Grantee can
afford to suffer the complete loss of the Grantee's investment in the Exercise
Shares.

        (f)     Registration; Restrictions on Sale upon Public Offering. In
respect of any Shares purchased upon exercise of all or any of the Options, the
Grantee shall be entitled to the rights and subject to the obligations created
under the Registration and Participation Agreement to the extent set forth
therein. The Grantee agrees that, in the event that Holding files a registration
statement under the Securities Act with respect to a Public Offering of any
shares of its capital stock, the Grantee will not effect any public sale or
distribution of any shares of the Common Stock (other than as part of such
Public Offering) during the 20 days prior to and the 180 days after the
effective date of such registration statement.

        (g)     Section 83(b) Election. The Grantee agrees that, within 20 days
of any Exercise Date that occurs prior to a Public Offering, the Grantee shall
give notice to Holding as to whether or not the Grantee has made an election
pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, with
respect to the Exercise Shares purchased on such date, and acknowledges that the
Grantee will be solely responsible for any and all tax liabilities payable by
the Grantee in connection with the Grantee's exercise of any Options or receipt
of the Exercise Shares or attributable to the Grantee's making or failing to
make such an election.

        7.      Representations and Warranties of Holding. Holding represents
and warrants to the Grantee that (a) Holding has been duly incorporated and is
an existing corporation in good standing under the laws of the State of
Delaware, (b) this Agreement has been duly authorized, executed and delivered by
Holding and constitutes a valid and legally binding obligation of Holding
enforceable against Holding in accordance with its terms and (c) the Exercise
Shares, when issued, delivered and paid for, upon exercise of the Options in
accordance with the terms hereof and the Management Stock Subscription
Agreement, will be duly authorized, validly issued, fully paid and
nonassessable, and free and clear of any liens or encumbrances other than those
created pursuant to this Agreement, the Management Stock Subscription Agreement
or otherwise in connection with the transactions contemplated hereby.

                                        9

<PAGE>

        8.      Change in Control

        (a)     Accelerated Vesting and Payment. Unless the Board shall
otherwise determine in the manner set forth in Section 8(b), in the event of a
Change in Control, the Options shall be canceled in exchange for a payment in
cash of an amount equal to the product of (i) the excess, if any, of the Change
in Control Price over the Option Price multiplied by (ii) the number of Shares
then subject to the Options.

        (b)     Alternative Options. Notwithstanding Section 8(a), no
cancellation, acceleration of exercisability, vesting or cash settlement or
other payment shall occur with respect to the Options if the Board reasonably
determines in good faith, prior to the occurrence of a Change in Control, that
the Options shall be honored or assumed, or new rights substituted therefor
(such honored, assumed or substituted Options being hereinafter referred to as
an "Alternative Options") by the New Employer, provided that any such
Alternative Options must:

                (i)     provide the Grantee with rights and entitlements
        substantially equivalent to or better than the rights, terms and
        conditions applicable under the Options, including, but not limited to,
        an identical or better exercise and vesting schedule and identical or
        better timing and methods of payment;

                (ii)    have substantially equivalent economic value to the
        Options (determined at the time of the Change in Control); and

                (iii)   have terms and conditions which provide that in the
        event that the Grantee suffers an Involuntary Termination within two
        years following a Change in Control:

                        (A)     any conditions on the Grantee's rights under, or
                any restrictions on transfer or exercisability applicable to,
                each such Alternative Options shall be waived or shall lapse, as
                the case may be; or

                        (B)     the Grantee shall have the right to surrender
                such Alternative Options within 30 days following such
                termination in exchange for a payment in cash equal to the
                excess of the Fair Market Value of the Common Stock subject to
                the Alternative Options over the price, if any, that the Grantee
                would be required to pay to exercise such Alternative Options.

        (c)     Certain Definitions. As used in this Agreement the following
terms shall have the following meanings:

                (i)     "Change in Control" means the first to occur of the
        following events after the date hereof:

                                       10

<PAGE>

                        (A)     the acquisition by any person, entity or "group"
                (as defined in Section 13(d) of the Securities Exchange Act of
                1934, as amended), other than Holding, any Subsidiary, any
                employee benefit plan of Holding or any Subsidiary, or BRS or
                the C&D Fund, of 50% or more of the combined voting power of
                Holding's then outstanding voting securities;

                        (B)     the merger or consolidation of Holding as a
                result of which persons who were stockholders of Holding, as the
                case may be, immediately prior to such merger or consolidation,
                do not, immediately thereafter, own, directly or indirectly,
                more than 50% of the combined voting power entitled to vote
                generally in the election of directors of the merged or
                consolidated company;

                        (C)     the liquidation or dissolution of Holding or the
                Company other than a liquidation or dissolution of the Company
                into Holding or Holding into the Company or for the purposes of
                effecting a corporate restructuring or reorganization as a
                result of which persons who were stockholders of Holding
                immediately prior to such liquidation or dissolution continue to
                own immediately therefore directly or indirectly, more than 50%
                of the combined voting power entitled to vote generally in the
                election of directors of the entity that owns, directly or
                indirectly, substantially all of the assets of Holding or the
                Company following such transaction; or

                        (D)     the sale, transfer or other disposition of all
                or substantially all of the assets of Holding or the Company to
                one or more persons or entities that are not, immediately prior
                to such sale, transfer or other disposition, affiliates of
                Holding, the Company, BRS or the C&D Fund.

                (ii)    "Change in Control Price" means the price per share of
        Common Stock paid in conjunction with any transaction resulting in a
        Change in Control (as determined in good faith by the Board if any part
        of the offered price is payable other than in cash).

                (iii)   "Involuntary Termination" means a termination by the New
        Employer for any reason.

                (iv)    "New Employer" means the Grantee's employer, or the
        parent or a subsidiary of such employer, immediately following a Change
        in Control.

        9.      No Rights as Stockholder. The Grantee shall have no voting or
other rights as a stockholder of Holding with respect to any Shares covered by
the Options until the exercise of the Options and the issuance of a certificate
or certificates to the Grantee for such Shares. No adjustment shall be made for
dividends or other rights for which the record date is prior to the issuance of
such certificate or certificates.

                                       11

<PAGE>

        10.     Capital Adjustments. The number and price of the Shares covered
by the Options shall be proportionately adjusted to reflect any dividend payable
in shares of capital stock, stock split or share combination of the Common Stock
or any recapitalization of Holding. Subject to any required action by the
stockholders of Holding and Section 8 hereof, in any merger, consolidation,
reorganization, exchange of shares, liquidation or dissolution, the Options
shall pertain to the securities and other property, if any, that a holder of the
number of shares of Common Stock covered by the Options would have been entitled
to receive in connection with such event.

        11.     Miscellaneous.

        (a)     Notices. All notices and other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if delivered personally or sent by certified or
express mail, return receipt requested, postage prepaid, or by any recognized
international equivalent of such delivery, to Holding, the C&D Fund or the
Grantee, as the case may be, at the following addresses or to such other address
as Holding, the C&D Fund or the Grantee, as the case may be, shall specify by
notice to the others:

                (i)     if to Holding, to it at:

                        RACI Holding, Inc.
                        c/o Remington Arms Company, Inc.
                        870 Remington Drive
                        Madison, North Carolina  27025
                        Attention:  Chief Financial Officer

                (ii)    if to the Grantee, to the Grantee at the address set
        forth on the signature page hereof.

                (iii)   if to BRS, to:

                        Bruckmann, Rosser, Sherill & Co. II, L.P.
                        c/o Bruckmann, Rosser, Sherrill & Co., Inc.
                        126 East 56th Street
                        New York, NY 10022
                        Attention: Stephen C. Sherrill

                (iv)    if to the C&D Fund, to:

                        The Clayton & Dubilier Private Equity
                          Fund IV Limited Partnership
                        270 Greenwich Avenue
                        Greenwich, Connecticut  06830
                        Attention:  Clayton & Dubilier Associates

                                       12

<PAGE>

                                    IV Limited Partnership,
                                    Michael Babiarz

All such notices and communications shall be deemed to have been received on the
date of delivery or on the third business day after the mailing thereof. Copies
of any notice or other communication given under this Agreement shall also be
given to:

                        Clayton, Dubilier & Rice, Inc.
                        375 Park Avenue
                        New York, New York 10152
                        Attention:  Michael Babiarz

                        and

                        Debevoise & Plimpton
                        875 Third Avenue
                        New York, New York  10022
                        Attention:  Franci J. Blassberg, Esq.

BRS and the C&D Fund also shall be given a copy of any notice or other
communication between the Grantee and Holding under this Agreement at their
respective addresses as set forth above.

        (b)     Binding Effect; Benefits. This Agreement shall be binding upon
and inure to the benefit of the parties to this Agreement and their respective
successors and assigns. Except as provided in Section 4, nothing in this
Agreement, express or implied, is intended or shall be construed to give any
person other than the parties to this Agreement or their respective successors
or assigns any legal or equitable right, remedy or claim under or in respect of
any agreement or any provision contained herein.

        (c)     Waiver; Amendment.

                (i)     Waiver. Any party hereto or beneficiary hereof may by
        written notice to the other parties (A) extend the time for the
        performance of any of the obligations or other actions of the other
        parties under this Agreement, (B) waive compliance with any of the
        conditions or covenants of the other parties contained in this Agreement
        and (C) waive or modify performance of any of the obligations of the
        other parties under this Agreement, provided that any waiver of the
        second sentence of Section 5 must be consented to in writing by BRS and
        the C&D Fund. Except as provided in the preceding sentence, no action
        taken pursuant to this Agreement, including, without limitation, any
        investigation by or on behalf of any party or beneficiary, shall be
        deemed to constitute a waiver by the party or beneficiary taking such
        action of compliance with any representations, warranties, covenants or
        agreements contained herein. The waiver by any party hereto or
        beneficiary hereof of a breach of any provision of this Agreement shall
        not

                                       13

<PAGE>

        operate or be construed as a waiver of any preceding or succeeding
        breach and no failure by a party or beneficiary to exercise any right or
        privilege hereunder shall be deemed a waiver of such party's or
        beneficiary's rights or privileges hereunder or shall be deemed a waiver
        of such party's or beneficiary's rights to exercise the same at any
        subsequent time or times hereunder.

                (ii)    Amendment. This Agreement may not be amended, modified
        or supplemented orally, but only by a written instrument executed by the
        Grantee and Holding, and (in the case of any amendment, modification or
        supplement that adversely affects the rights of either or both of BRS
        and/or the C&D Fund hereunder) consented to by BRS and/or the C&D Fund,
        as applicable, in writing. The parties hereto acknowledge that Holding's
        consent to an amendment or modification of this Agreement may be subject
        to the terms and provisions of the Financing Agreements.

        (d)     Assignability. Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be
assignable by Holding or the Grantee without the prior written consent of the
other parties, BRS and the C&D Fund.

        (e)     Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE.

        (f)     Section and Other Headings, etc. The section and other headings
contained in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.

        (g)     Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original and all of which
together shall constitute one and the same instrument.

        (h)     Delegation by the Board. All of the powers, duties and
responsibilities of the Board specified in this Agreement may, to the full
extent permitted by applicable law, be exercised and performed by any duly
constituted committee thereof to the extent authorized by the Board to exercise
and perform such powers, duties and responsibilities.

                                       14

<PAGE>

                IN WITNESS WHEREOF, Holding and the Grantee have executed this
Agreement as of the date first above written.

                                        RACI HOLDING, INC.

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        THE GRANTEE:

                                        [Name]

                                        ----------------------------------------

                                        Address of the Grantee:

                                        [Address]

Total Number of Shares
Of Common Stock for
the Purchase of Which
Service Options
Have Been Granted:                      [Service_Options]

Total Number of Shares
of Common Stock for
the Purchase of Which
Performance Options
Have Been Granted:                      [Performance_Options]

Option Price:                           $[Price]

                                       15

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