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                                                                   EXHIBIT 10.20

                          SUBSIDIARY SECURITY AGREEMENT

          THIS SECURITY AGREEMENT, dated January 24, 2003, is made by RA BRANDS,
L.L.C., a Delaware limited liability company ("Grantor"), in favor of WACHOVIA
BANK, NATIONAL ASSOCIATION, a national banking association with an office at 301
South College Street, 6th Floor, Charlotte, North Carolina 28288, in its
capacity as administrative and collateral agent (together with its successors in
such capacities, the "Agent") for various financial institutions ("Lenders")
from time to time parties to that certain Credit Agreement dated January 24,
2003 (as the same may be amended, supplemented, waived or otherwise modified
from time to time, the "Credit Agreement"), among Remington Arms Company, Inc.
("Remington"), RA Factors, Inc. ("Factors", together with Remington, the
"Borrowers"), the Agent, Fleet Capital Corporation, in its capacity as
syndication agent, National City Commercial Finance, Inc., in its capacity as
documentation agent, and the Lenders.

                              W I T N E S S E T H :

          WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to
make Revolver Loans and provide other financial accommodations to the Borrowers
upon the terms and subject to the conditions set forth therein; and

          WHEREAS, Grantor has executed and delivered a Subsidiary Guaranty in
favor of Agent (the "Subsidiary Guaranty"), pursuant to which Grantor has
guaranteed the payment and performance of all of the indebtedness, liabilities
and other obligations of Borrowers under the Credit Documents to Agent and
Lenders; and

          WHEREAS, it is a condition precedent to the obligations of the Lenders
to make Revolver Loans and provide other financial accommodations to the
Borrowers under the Credit Agreement that Grantor shall have executed and
delivered this Agreement to the Agent for its benefit and the ratable benefit of
the Lenders;

          NOW, THEREFORE, in consideration of the premises and to induce the
Agent and the Lenders to enter into the Credit Agreement and to induce the
Lenders to make Revolver Loans and provide other financial accommodations to the
Borrowers thereunder, Grantor hereby agrees with the Agent, for its benefit and
the ratable benefit of the Lenders, as follows:

          1.     Defined Terms.

          (a)    Unless otherwise defined herein, capitalized terms defined in
the Credit Agreement are used herein as defined therein. The following terms are
used herein as defined in the UCC in effect from time to time: Accounts, Chattel
Paper, Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel
Paper, Equipment, Farm Products, Financial Assets, Fixtures, General
Intangibles, Goods, Instruments, Inventory, Investment Property,
Letter-of-Credit Rights, Payment Intangibles,

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Proceeds, Software and Supporting Obligations. The following terms shall have
the following meanings:

                 "Agreement": this Subsidiary Security Agreement, as the same
          may be amended, supplemented, waived or otherwise modified from time
          to time.

                 "Collateral": as defined in Section 2 of this Agreement.

                 "Computer Hardware and Software": all rights of Remington
          (including rights as licensee and lessee) with respect to (i) computer
          and other electronic data processing hardware, including all
          integrated computer systems, central processing units, memory units,
          display terminals, printers, computer elements, card readers, tape
          drives, hard and soft disc drives, cables, electrical supply hardware,
          generators, power equalizers, accessories, peripheral devices and
          other related computer hardware; (ii) all Software and all software
          programs designed for use on the computers and electronic data
          processing hardware described in clause (i) above, including all
          operating system software, utilities and application programs in any
          form (service code and object code in magnetic tape, disc or hard copy
          format or any other listings whatsoever); (iii) any firmware
          associated with any of the foregoing; (iv) any documentation for
          hardware, Software and firmware described in clauses (i), (ii) and
          (iii) above, including flow charts, logic diagrams, manuals,
          specifications, training materials, charts and pseudo codes; and all
          rights with respect thereto, including any and all licenses, options,
          warrants, service contracts, program services, test rights,
          maintenance rights, support rights, improvement rights, renewal rights
          and indemnifications, and any substitutions, replacements, additions
          or model conversions of any of the foregoing.

                 "Contracts": all contracts, agreements, instruments and
          indentures in any form, and portions thereof, to which Grantor is a
          party, or under which Grantor has any right, title or interest, or to
          which Grantor or any property of Grantor is subject, as the same may
          from time to time be amended, supplemented or otherwise modified,
          including, (a) all rights of Grantor to receive moneys due and to
          become due to Grantor thereunder or in connection therewith, (b) all
          rights of Grantor to damages arising out of, or for, breach or default
          in respect thereof and (c) all rights of Grantor to perform and to
          exercise all remedies thereunder.

                 "Copyright Licenses": all United States written license
          agreements to which Grantor is a party with any other Person in
          connection with any of the Copyrights or such other Person's
          copyrights, whether Grantor is a licensor or a licensee under any such
          license agreement, subject, in each case, to the terms of such license
          agreements, and the right to prepare for sale, sell and advertise for
          sale, all Inventory now or hereafter covered by such licenses.

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                 "Copyrights": all United States copyrights, whether or not the
          underlying works of authorship have been published, and whether or not
          the copyrights have been registered, copyright registrations and
          applications, and all works of authorship and other intellectual
          property rights therein, including (a) all renewals thereof, (b) all
          income, royalties, damages and other payments now and hereafter due or
          payable with respect thereto (including payments under all licenses
          entered into in connection therewith, and damages and payments for
          past or future infringements thereof), (c) the right to sue for past,
          present and future infringements and misappropriations thereof, and
          (d) all rights corresponding thereto throughout the world and all
          other rights of any kind whatsoever of Grantor accruing thereunder or
          pertaining thereto.

                 "Obligations": (a) all indebtedness, liabilities and
          obligations of Grantor to Agent and Lenders of every kind and
          description, whether direct or indirect, joint or several, absolute or
          contingent, due or to become due, now existing or hereafter arising
          under any of the Credit Documents and (b) all indebtedness,
          liabilities and obligations now or hereafter owing by the Borrowers
          under any of the Credit Documents.

                 "Patent License": all United States written license agreements
          to which Grantor is a party with any other Person in connection with
          any of the Patents or such other Person's patents, whether Grantor is
          a licensor or a licensee under any such license agreement, including
          the license agreements listed in Schedule II attached hereto and made
          a part hereof, subject, in each case, to the terms of such license
          agreements, and the right to prepare for sale, sell and advertise for
          sale, all Inventory now or hereafter covered by such licenses.

                 "Patents": all United States patents, patent applications and
          patentable inventions, including all patents and patent applications
          identified in Schedule II attached hereto and made a part hereof, and
          including (a) all inventions and improvements described and claimed
          therein, and patentable inventions, (b) the right to sue or otherwise
          recover for any and all past, present and future infringements and
          misappropriations thereof, (c) all income, royalties, damages and
          other payments now and hereafter due or payable with respect thereto
          (including payments under all licenses entered into in connection
          therewith, and damages and payments for past or future infringements
          thereof), and (d) all rights corresponding thereto in the United
          States and all reissues, divisions, continuations,
          continuations-in-part, substitutes, renewals, and extensions thereof,
          all improvements thereon, and all other rights of any kind whatsoever
          of Grantor accruing thereunder or pertaining thereto.

                 "Permitted  Liens":  Liens permitted  pursuant to
          Section 10.2.5 of the Credit Agreement or as otherwise expressly
          permitted to exist under any of the Credit Documents.

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                 "Trademark License": all United States written license
          agreements to which Grantor is a party with any other Person in
          connection with any of the Trademarks or such other Person's names or
          trademarks, whether Grantor is a licensor or a licensee under any such
          license agreement, including the license agreements listed in Schedule
          I attached hereto and made a part hereof, subject, in each case, to
          the terms of such license agreements, and the right to prepare for
          sale, sell and advertise for sale, all Inventory now or hereafter
          covered by such licenses.

                 "Trademarks": all United States trademarks, service marks,
          trade names, trade dress or other indicia of trade origin, trademark
          and service mark registrations, and applications for trademark or
          service mark registrations (except for "intent to use" applications
          for trademark or service mark registrations filed pursuant to Section
          1(b) of the Lanham Act, unless and until an Amendment to Allege Use or
          a Statement of Use under Sections 1(c) and 1(d) of said Act has been
          filed), and any renewals thereof, including each registration and
          application identified in Schedule I attached hereto and made a part
          hereof, and including (a) the right to sue or otherwise recover for
          any and all past, present and future infringements and
          misappropriations thereof, (b) all income, royalties, damages and
          other payments now and hereafter due or payable with respect thereto
          (including payments under all licenses entered into in connection
          therewith, and damages and payments for past or future infringements
          thereof), and (c) all rights corresponding thereto in the United
          States and all other rights of any kind whatsoever of Grantor accruing
          thereunder or pertaining thereto, together in each case with the
          goodwill of the business connected with the use of, and symbolized by,
          each such trademark, service mark, trade name, trade dress or other
          indicia of trade origin.

                 "UCC": the Uniform Commercial Code (or any successor statute)
          as adopted and in force in the State of New York or, when the laws of
          any other state govern the method or manner of the perfection or
          enforcement of any security interest in any of the Collateral, the
          Uniform Commercial Code (or any successor statute) of such state.

                 "Work": any work which is subject to copyright protection
          pursuant to Title 17 of the United States Code.

                 (b)      Certain Matters of Construction: The terms "herein,"
          "hereof" and "hereunder" and other words of similar import when used
          in this Agreement shall refer to this Agreement as a whole and not to
          any particular section, paragraph or subdivision. Any pronoun used
          shall be deemed to cover all genders. All references to statutes and
          related regulations shall include any amendments of same and any
          successor statutes and regulations; any of the Credit Documents shall
          include any and all amendment or modifications thereto and any and all
          restatements, extensions or renewals thereof; to any Person shall mean
          and include the successors and permitted assigns of such Person; to
          "including" and "include" shall be understood to mean "including,
          without limitation." A Default or an Event of Default shall be deemed
          to

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          exist at all times during the period commencing on the date that such
          Default or Event of Default occurs to the date on which such Default
          or Event of Default is waived in writing pursuant to this Agreement
          or, in the case of a Default, is cured within any period of cure
          expressly provided in this Agreement or the applicable Credit
          Document; and an Event of Default shall "continue" or be "continuing"
          until such Event of Default has been waived in writing by Agent. Any
          Lien referred to in this Agreement or any of the other Credit
          Documents as having been created in favor of Agent, any agreement
          entered into by Agent pursuant to this Agreement or any of the other
          Credit Documents, any payment made by or to or funds received by Agent
          pursuant to or as contemplated by any of the Credit Documents, or any
          other act taken or omitted to be taken by Agent shall, unless
          otherwise expressly provided, be created, entered into, made or
          received, or taken or omitted for its benefit and the benefit or
          account of the Lenders.

          2.     Grant of Security Interest. As collateral security for the
prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations, Grantor hereby
assigns, pledges and grants, subject to existing licenses to use Patents or
Trademarks granted by Grantor in the ordinary course of business, to the Agent a
security interest in and Lien on all of the following property now owned or at
any time hereafter acquired by Grantor or in which Grantor now has or at any
time in the future may acquire any right, title or interest (collectively, the
"Collateral"):

                 (i)      all Accounts;

                 (ii)     all Chattel Paper, including all Electronic Chattel
                          Paper;

                 (iii)    all Commercial Tort Claims;

                 (iv)     all Computer Hardware and Software;

                 (v)      all Contracts;

                 (vi)     all Deposit Accounts;

                 (vii)    all Documents;

                 (viii)   all Financial Assets;

                 (ix)     all General Intangibles;

                 (x)      all Goods, including all Equipment and all Inventory;

                 (xi)     all Instruments;

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                 (xii)    all Investment Property;

                 (xiii)   all Letter-of-Credit Rights

                 (xiv)    all Patent Licenses;

                 (xv)     all Patents;

                 (xvi)    all Payment Intangibles;

                 (xvii)   all Supporting Obligations;

                 (xviii)  all Trademark Licenses;

                 (xix)    all Trademarks;

                 (xx)     all monies now or at any time or times hereafter in
                          the possession or under the control of Agent or any
                          Lender, or a bailee or affiliate of Agent or any
                          Lender;

                 (xxi)    all accessions to, substitutions for and all
                          replacements, products, and cash and non-cash Proceeds
                          of (i) through (xx) above, including, Proceeds of and
                          unearned premiums with respect to insurance policies
                          insuring any of the Collateral and claims against any
                          Person for loss of, damage to, or destruction of any
                          of the Collateral; and

                 (xxii)   all books and records (including customer lists,
                          files, correspondence, tapes, computer programs,
                          print-outs and other computer materials and records)
                          of Grantor pertaining to any of (i) through (xxi)
                          above;

provided that in no event shall there be pledged, nor shall Grantor be required
to pledge, directly or indirectly, more than 65% of any series of the
outstanding Equity Interests of any Foreign Subsidiary.

Notwithstanding anything to the contrary set forth above, the types or items of
Collateral described shall not include any rights or interests in any
Instrument, Contract, Chattel Paper, General Intangible, Patent License or
Trademark License, as such, if under the terms of such Instrument, Contract,
Chattel Paper, General Intangible, Patent License or Trademark License, or
Applicable Law with respect thereto, the valid grant of a security interest or
Lien therein to Agent is prohibited and such prohibition has not been or is not
waived or the consent of the other party to such Instrument, Contract, Chattel
Paper, General Intangible, Patent License or Trademark License has not been or
is not otherwise obtained or under Applicable Law such prohibition cannot be
waived, provided that the foregoing exclusion shall

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in no way be construed (a) to apply if any such prohibition is unenforceable
under Sections 9-406 or 9-408 of the UCC or other Applicable Law or (b) so as to
limit, impair or otherwise affect Agent's unconditional continuing security
interests in and Liens upon any rights or interests of Grantor in or to monies
due or to become due under any such Instrument, Contract, Chattel Paper, General
Intangible, Patent License or Trademark License (including any Accounts).

          3.     Rights of Agent and Lenders; Limitations on Agent's and
Lenders' Obligations.

                 (a)      No Liability of Agent or Lenders under Accounts or
          Contracts. None of the Agent nor any Lender shall have any obligation
          or liability under any Account (or any agreement giving rise thereto)
          or Contract by reason of or arising out of this Agreement or the
          receipt by the Agent or any such Lender of any payment relating to
          such Account or Contract pursuant hereto, nor shall the Agent or any
          Lender be obligated in any manner to perform any of the obligations of
          Grantor under or pursuant to any Account (or any agreement giving rise
          thereto) or Contract, to make any payment, to make any inquiry as to
          the nature or the sufficiency of any payment received by it or as to
          the sufficiency of any performance by any party under any Account (or
          any agreement giving rise thereto) or Contract, to present or file any
          claim, to take any action to enforce any performance or to collect the
          payment of any amounts which may have been assigned to it or to which
          it may be entitled at any time or times.

                 (b)      Notice to Account Debtors. At any time after the
          occurrence and during the continuance of an Event of Default, Agent
          may (and upon written instructions to do so from the Required Lenders,
          shall) direct Grantor to notify the Account Debtors on the Accounts
          and the parties to the Contracts that the Accounts and Contracts have
          been assigned to the Agent, and that payments in respect thereof shall
          be made directly to the Agent. The Agent may (and, upon written
          instructions to do so from the Required Lenders, shall) in its own
          name or in the name of others communicate with Account Debtors on the
          Accounts and the parties to the Contracts (i) to verify with them to
          its satisfaction the existence, amount and terms of any Accounts or
          Contracts, and (ii) at any time and from time to time after the
          occurrence and during the continuance of an Event of Default, to
          notify such Account Debtors or parties to make all payments owing to
          Grantor directly to Agent for application to the Obligations and to
          collect all amounts owing from any such Account Debtors or parties.

                 (c)      Collections on Accounts. If required by the Agent at
          any time when an Event of Default has occurred and is continuing, any
          payments of Accounts, when collected by Grantor, shall be immediately
          transferred by Grantor to the Agent, subject to disposition by the
          Agent for the account of the Lenders only. Until so turned over, all
          such payments shall be held by Grantor in trust for the benefit of the
          Agent and the Lenders, segregated from other funds of Grantor. All
          Proceeds constituting collections of Accounts while held by the Agent
          (or by Grantor in trust for the benefit of the Agent and the Lenders)
          shall continue to be collateral security for all of the Obligations
          and shall not constitute payment thereof until applied as hereinafter
          provided. At any time when an Event of Default has occurred and is

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          continuing, at the Agent's election, the Agent shall hold all or any
          part of such funds on account of the Obligations (whether matured or
          unmatured) and may apply such funds to the obligations then due and
          owing, and, except as otherwise may be required under the Credit
          Agreement, any part of such funds which the Agent does not so apply
          shall be paid over from time to time by the Agent to Grantor or to
          whomsoever may be lawfully entitled to receive the same. At any time
          when an Event of Default has occurred and is continuing, at the
          Agent's request, Grantor shall deliver to the Agent all original and
          other documents evidencing, and relating to, the agreements and
          transactions which gave rise to the Accounts, including all statements
          relating to the Accounts.

                 (d)      Deposit Accounts. With respect to the grant of a
          security interest in Grantor's Deposit Accounts, Grantor hereby
          authorizes and directs each such bank or other depository at which
          Grantor maintains a Deposit Account to pay or deliver to the Agent
          upon its written demand therefor made at any time upon the occurrence
          and during the continuation of an Event of Default and without further
          notice to Grantor (such notice being hereby expressly waived), all
          balances in each Deposit Account maintained by Grantor with such bank
          or other depository for application to the Obligations then
          outstanding, and the rights given the Agent in this Section shall be
          cumulative with and in addition to the Agent's other rights and
          remedies in regard to the foregoing property as proceeds of
          Collateral.

          4.     Representations and Warranties. Grantor hereby represents and
warrants that:

                 (a)      Title; No Other Liens. Except for Permitted Liens,
          Grantor owns each item of the Collateral free and clear of any and all
          Liens. No security agreement, financing statement or other public
          notice similar in effect with respect to all or any part of the
          Collateral that has been authorized or executed by the Grantor is on
          file or of record in any public office, except such as may have been
          filed in favor of the Agent, pursuant to this Agreement or any other
          Credit Document, or which are permitted pursuant to the Credit
          Documents.

                 (b)      Perfected First Priority Liens. (i) This Agreement is
          effective to create, as collateral security for the Obligations, valid
          and enforceable Liens on the Collateral in favor of the Agent, except
          with respect to Commercial Tort Claims acquired by Grantor after the
          date hereof, and except as enforceability may be affected by
          bankruptcy, insolvency, fraudulent conveyance, reorganization,
          moratorium and other similar laws relating to or affecting creditor's
          rights generally, general equitable principles (whether considered in
          a proceeding in equity or at law) and an implied covenant of good
          faith and fair dealing. (ii) Except with regard to Liens on Specified
          Assets, upon the completion of the Filings, and the delivery to and
          continuing possession by the Agent of all Instruments, Chattel Paper
          and Documents, Investment Property and monies, a security interest in
          which is perfected by possession, and the obtaining and maintenance of
          "control" (as described in the UCC) by the Agent of all Deposit
          Accounts, Electronic Chattel Paper, Investment Property, and
          Letter-of-Credit Rights, a security interest in which is perfected by
          "control", the Liens created pursuant to this Agreement will
          constitute valid Liens on and (to the extent provided herein)
          perfected security

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          interests in the Collateral in favor of the Agent, and will be prior
          to all other Liens of all other Persons other than Permitted Liens,
          and enforceable as such as against all other Persons other than
          Ordinary Course Buyers, and except as enforceability may be limited by
          the Assignment of Claims Act and except as enforceability may be
          limited by applicable bankruptcy, insolvency, reorganization,
          moratorium or similar laws affecting the enforcement of creditors'
          rights generally and by general equitable principles (whether
          enforcement is sought by proceedings in equity or at law) or by an
          implied covenant of good faith and fair dealing. As used in this
          Section 4(b)(ii), the following terms shall have the following
          meanings:

                          "Filings": the filing or recording of the Financing
                 Statements, any Patent and Trademark Security Agreement with
                 the U.S. Patent and Trademark Office, any Copyright Security
                 Agreement with the U.S. Copyright Office, and any filings after
                 the Closing Date in any jurisdiction as may be necessary under
                 any Applicable Law.

                          "Financing  Statements":  the financing statements
                 prepared by the Agent naming Grantor as debtor and the Agent as
                 secured party filed on or about the Closing Date in the
                 jurisdictions as may be necessary under any Applicable Law.

                          "Ordinary Course Buyers": (i) with respect to Goods
                 only, buyers in the ordinary course of business to the extent
                 provided in Section 9-320(a) and 9-321 of the UCC, (ii) with
                 respect to General Intangibles only, licensees in the ordinary
                 course of business to the extent provided in Section 9-321 of
                 the UCC as in effect from time to time in the relevant
                 jurisdiction and (iii) any other Person who is entitled to take
                 free of the Lien pursuant to the UCC or other applicable law.

                          "Specified Assets": the following property and assets
                 of Grantor: (1) Patents, Patent Licenses, Trademarks and
                 Trademark Licenses to the extent that Liens thereon cannot be
                 perfected by the filing of financing statements under the UCC
                 or by the filing and acceptance of a Patent and Trademark
                 Security Agreement in the United States Patent and Trademark
                 Office; (2) Collateral for which the perfection of Liens
                 thereon requires filings in or other actions under the laws of
                 jurisdictions outside the United States of America, any State,
                 territory or dependency thereof or the District of Columbia;
                 (3) Commercial Tort Claims acquired by Remington after the date
                 hereof, (4) motor vehicles, (5) monies and (6) goods included
                 in Collateral received by any Person for "sale or return"
                 within the meaning of Section 2-326 of the UCC of the
                 applicable jurisdiction, to the extent of claims of creditors
                 of such Person.

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                 (c)      Accounts. The places where Grantor keeps its records
          concerning the Accounts are 870 Remington Drive, Madison, North
          Carolina 27025 or such other location or locations of which Grantor
          shall have provided prior written notice to the Agent pursuant to
          Section 5(p).

                 (d)      Consents. Except as set forth in Schedules I and II
          hereto, no consent of any party (other than Grantor) to any Patent
          License or Trademark License constituting Collateral or any obligor in
          respect of any material Account constituting Collateral or which owes
          in the aggregate a material portion of all the Accounts constituting
          Collateral is required, or purports to be required, to be obtained by
          or on behalf of Grantor in connection with the execution, delivery and
          performance of this Agreement that has not been obtained. Each Patent
          License, Trademark License and Account constituting Collateral is in
          full force and effect and constitutes a valid and legally enforceable
          obligation of Grantor and (to the knowledge of Grantor) each other
          party thereto except as enforceability may be limited by bankruptcy,
          insolvency, reorganization, moratorium or similar laws affecting the
          enforcement of creditor's rights generally and by general equitable
          principles (whether enforcement is sought by proceedings in equity or
          at law) and except to the extent the failure of any such Patent
          License, Trademark License or Account constituting Collateral to be in
          full force and effect or valid or legally enforceable could not be
          reasonably expected, in the aggregate, to have a Material Adverse
          Effect on the value of the Collateral. Except as set forth in
          Schedules I and II hereto, no consent or authorization of, filing with
          or other act by or in respect of any Governmental Authority is
          required in connection with the execution, delivery, performance,
          validity or enforceability of any of the Patent Licenses and Trademark
          Licenses and Accounts constituting Collateral by any party thereto
          other than those which have been duly obtained, made or performed and
          are in full force and effect and those the failure of which to make or
          obtain could not be reasonably expected, in the aggregate, to have a
          Material Adverse Effect on the value of the Collateral. Except as set
          forth in Schedules I and II hereto, neither Grantor nor (to the
          knowledge of Grantor) any other party to any Patent License or
          Trademark License or Account constituting Collateral is in default in
          the performance or observance of any of the terms thereof, except for
          such defaults as could not reasonably be expected, in the aggregate,
          to have a Material Adverse Effect on the value of the Collateral. The
          right, title and interest of Grantor in, to and under each Patent
          License and Trademark License and each Account constituting Collateral
          are not subject to any defense, offset, counterclaim or claim which
          could be reasonably expected, either individually or in the aggregate,
          to have a Material Adverse Effect on the value of the Collateral.

                 (e)      Location of Tangible Property. Grantor's Inventory and
          Equipment are kept at the locations listed in Schedule III hereto or
          such other locations of which Grantor shall provide written notice to
          the Agent pursuant to Section 5(p), and after the date hereof at other
          locations to the extent permitted pursuant to Section 8.1.1 of the
          Credit Agreement.

                 (f)      Chief Executive Office. Grantor's chief executive
          office and chief place of business is located at 870 Remington Drive,
          Madison, North Carolina 27025 or such other

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          location of which Grantor shall have provided written notice to the
          Agent pursuant to Section 5(p).

                 (g)      Farm Products. None of the Collateral constitutes, or
          is the Proceeds of, Farm Products.

                 (h)      Patents and Trademarks. Schedules I and II hereto
          include all Trademarks and Patents owned by Grantor in its own name as
          of the date hereof and all material Trademark Licenses and all
          material Patent Licenses owned by Grantor in its own name as of the
          date hereof.

                 (i)      Governmental Obligors. As of the date hereof, none of
          the obligors on any Accounts, and none of the parties to any
          Contracts, is a Governmental Authority, except for any such Accounts
          or Contracts that are not material in relation to the business of
          Remington and its Subsidiaries, taken as a whole.

                 (j)      Copyrights. As of the date hereof, Grantor does not
          own any Copyrights and is not a party to any Copyright Licenses (other
          than Computer Hardware and Software licenses granted to Grantor in the
          Ordinary Course of Business) which are material to the business of
          Remington and its Subsidiaries, taken as a whole.

Grantor agrees that the foregoing representations and warranties shall be deemed
to have been made by Grantor on and as of each date on which an Revolver Loan is
made by the Lenders to the Borrowers under the Credit Agreement, in each case as
though made on and as of each such date (or, if any such representation or
warranty is expressly stated to have been made as of a specific date, as of such
specific date).

          5.     Covenants. Grantor covenants and agrees with the Agent and the
Lenders and, with respect to Section 5(a), the Agent covenants and agrees with
Grantor, that, from and after the date of this Agreement until the payment in
full of the Obligations (except for contingent obligations of any Obligor under
indemnifications that survive termination of the Revolver Commitments) and the
termination of all Revolver Commitments:

                 (a)      Further Documentation; Pledge of Instruments and
          Chattel Paper. At any time and from time to time, upon the written
          request of the Agent or Grantor, as the case may be, and at the sole
          expense of Grantor, Grantor or the Agent, as the case may be, will
          promptly and duly execute and deliver such further instruments and
          documents and take such further action as the Agent or Grantor may
          reasonably request for the purpose of obtaining or preserving the full
          benefits of this Agreement and of the rights and powers herein
          granted, including the filing of any financing or continuation
          statements under the UCC in effect in any jurisdiction with respect to
          the Liens created hereby, provided that Grantor shall not be required
          to take any action that the Agent would not be entitled to request a
          Borrower to take pursuant to Section 7.4 of the Credit Agreement.
          Grantor also hereby authorizes the Agent to

                                       11

<PAGE>

          prepare and file any such financing or continuation statement without
          the signature of Grantor to the extent permitted by Applicable Law.
          The Agent agrees to notify Grantor and Grantor agrees to notify the
          Agent of any financing or continuation statement filed by it pursuant
          to this Section 5(a), provided that any failure to give any such
          notice shall not affect the validity or effectiveness of any such
          filing. Unless an Event of Default shall have occurred and be
          continuing, Grantor shall be entitled to retain possession of all
          Collateral evidenced by any Instrument or Chattel Paper, and shall
          hold all such Collateral in trust for the Agent, and shall not
          commingle any of such Collateral with any other assets of Grantor. In
          the event an Event of Default shall have occurred and be continuing,
          upon the request of the Agent, such Collateral shall be immediately
          delivered to the Agent, duly endorsed in a manner satisfactory to the
          Agent, to be held as Collateral pursuant to this Agreement. Grantor
          shall not permit any other Person to possess any such Collateral other
          than in connection with any sale or other disposition of such
          Collateral as permitted by the Credit Agreement, or as otherwise
          consented to by Agent in writing.

                 (b)      Indemnification. Grantor agrees to pay, and to save
          harmless and defend the Agent and the Lenders from, any and all
          liabilities and reasonable costs and expenses (including reasonable
          legal fees and expenses) (i) with respect to, or resulting from, any
          delay by Grantor in paying, any and all excise, sales or other similar
          taxes which may be payable or determined to be payable with respect to
          any of the Collateral, (ii) with respect to, or resulting from, any
          delay by Grantor in complying with any material requirement of
          Applicable Law with respect to any of the Collateral or (iii) in
          connection with any of the transactions contemplated by this
          Agreement, provided that such indemnity shall not, as to the Agent or
          any Lender, be available to the extent that such liabilities, costs
          and expenses resulted from the gross negligence or willful misconduct
          of the Agent or any Lender. In any suit, proceeding or action brought
          by the Agent or any Lender under any Account for any sum owing
          thereunder, or to enforce any provisions of any Account, Grantor will
          save, indemnify and keep harmless and defend the Agent and such Lender
          from and against all expense, loss or damage suffered by reason of any
          defense, setoff, counterclaim, recoupment or reduction or liability
          whatsoever of the account debtor thereunder, arising out of a material
          breach by Grantor of any obligation thereunder.

                 (c)      Maintenance of Records. Grantor will keep and maintain
          at its own cost and expense reasonably satisfactory and complete
          records of the Collateral, including a record of all payments received
          and all credits granted with respect to the Accounts constituting
          Collateral. For the Agent's and the Lenders' further security, the
          Agent shall have a security interest in all of Grantor's books and
          records pertaining to the Collateral, and Grantor shall permit the
          Agent or its representatives to review such books and records upon
          reasonable advance notice during normal business hours at the location
          where such books and records are kept and at the reasonable request of
          the Agent.

                 (d)      Right of Inspection. Upon reasonable advance notice to
          Grantor and at reasonable intervals, or at any time and from time to
          time after the occurrence and during the

                                       12

<PAGE>

          continuance of an Event of Default, the Agent and the Lenders shall
          have reasonable access during normal business hours to all the books,
          correspondence and records of Grantor, and the Agent and the Lenders
          and their respective representatives may examine the same, and to the
          extent reasonable take extracts therefrom and make photocopies
          thereof, and Grantor agrees to render to the Agent and the Lenders, at
          Grantor's reasonable cost and expense, such clerical and other
          assistance as may be reasonably requested with regard thereto. The
          Agent and the Lenders and their respective representatives shall also
          have the right upon reasonable advance notice to Grantor to enter
          during normal business hours into and upon any premises where any of
          Grantor's Inventory or Equipment is located for the purpose of
          inspecting the same, observing its use or otherwise protecting its
          interests therein.

                 (e)      Compliance with Laws, etc. Grantor will comply in all
          material respects with all Applicable Law with respect to the
          Collateral or any part thereof, except to the extent that the failure
          to so comply could not be reasonably expected to have a Material
          Adverse Effect, in the aggregate, on the Agent's or the Lenders'
          rights hereunder, the priority of their Liens on the Collateral or the
          value of the Collateral.

                 (f)      Compliance with Contractual Obligations. Grantor will
          perform and comply in all material respects with all its contractual
          obligations relating to the Collateral, unless (i) such performance or
          compliance is fully excused by breach by the other party or parties
          thereto or (ii) such failure to comply or perform could not be
          reasonably expected, in the aggregate, to have a Material Adverse
          Effect on the value of the Collateral.

                 (g)      Payment of Obligations. Grantor will pay promptly when
          due all taxes, assessments and governmental charges or levies imposed
          upon the Collateral, as well as all claims of any kind (including
          claims for labor, materials and supplies) against or with respect to
          the Collateral, except that no such tax, assessment, charge or levy
          need be paid if (i) the validity thereof is being contested in good
          faith by appropriate proceedings diligently conducted and (ii) such
          tax, assessment, charge or levy is adequately reserved against on
          Grantor's books in accordance with GAAP.

                 (h)      Limitation on Liens on Collateral. Grantor will not
          create, incur or permit to exist, will defend the Collateral against,
          and will take such other action as is reasonably necessary to remove,
          any Lien or material adverse claim on or to any of the Collateral,
          other than the Liens created hereby and other than Permitted Liens,
          and will defend the right, title and interest of the Agent and the
          Lenders in and to any of the Collateral against the claims and demands
          of all Persons whomsoever.

                 (i)      Limitations on Dispositions of Collateral. Without the
          prior written consent of the Agent, Grantor will not sell, assign,
          transfer, exchange or otherwise dispose of, or grant any option with
          respect to, the Collateral, or attempt, offer or contract to do so,
          except with respect to exclusive licenses in the Ordinary Course of
          Business or as permitted by this Agreement or the Credit Documents.

                                       13

<PAGE>

                 (j)      Limitations on Modifications, Waivers, Extensions of
          Contracts, Licenses and Accounts. Grantor will not, except in the
          Ordinary Course of Business, amend, modify, terminate or waive any
          provision of any material Trademark License or any agreement giving
          rise to a material Account constituting Collateral in any manner which
          could reasonably be expected to materially adversely affect the value
          of such Trademark License or Account as Collateral.

                 (k)      Limitations on Discounts, Compromises, Extensions of
          Accounts. At all times, Grantor will not, except in the Ordinary
          Course of Business, grant any extension of the time of payment of any
          material Account constituting Collateral, compromise, compound or
          settle the same for less than the full amount thereof, release, wholly
          or partially, any Person liable for the payment thereof, or allow any
          credit or discount whatsoever thereon, unless such extensions,
          compromises, compoundings, settlements, releases, credits or discounts
          are permitted by the Credit Documents.

                 (l)      Maintenance of Equipment. Grantor will maintain each
          material item of its Equipment in good operating condition, ordinary
          wear and tear and immaterial impairments of value and damage by the
          elements excepted, and will provide all maintenance, service and
          repairs necessary for such purpose, except to the extent that the
          failure to do any of the foregoing could not be reasonably expected to
          have a Material Adverse Effect.

                 (m)      Maintenance of Insurance. Grantor will maintain, with
          financially sound and reputable insurance companies, (i) insurance
          (including property insurance) in at least such amounts and against at
          least such risks (but including in any event public liability, product
          liability and business interruption where reasonably obtainable) as
          are usually insured against in the same general area by companies
          engaged in the same or a similar business; and furnish to the Agent,
          upon written request, information in reasonable detail as to the
          insurance carried and (ii) insurance policies relating to Grantor's
          Inventory and Equipment (A) insuring Grantor's Inventory and Equipment
          against loss by fire, explosion, theft and such other casualties as
          are usually insured against by companies engaged in the same or a
          similar business, (B) insuring Grantor against liability for personal
          injury and property damage relating to such Inventory and Equipment,
          (C) providing that no cancellation, material reduction in amount or
          material change in the coverage referred to in clause (A) shall be
          effective until at least 10 days after receipt by the Agent of written
          notice thereof, (D) naming the Agent and the Lenders as additional
          insured parties and (E) being otherwise reasonably satisfactory in all
          material respects to the Agent.

                 (n)      Further Identification of Collateral. Grantor will
          furnish to the Agent and the Lenders from time to time such statements
          and schedules further identifying and describing the Collateral, and
          such other reports in connection with the Collateral, as the Agent may
          reasonably request, all in reasonable detail.

                                       14

<PAGE>

                 (o)      Notices. Grantor will advise the Agent and the Lenders
          promptly, in reasonable detail, at their respective addresses set
          forth in the Credit Agreement, (i) of any Lien (other than Permitted
          Liens) on, or material adverse claim asserted against, any of the
          Collateral and (ii) of the occurrence of any other event which could
          reasonably be expected, in the aggregate, to have a Material Adverse
          Effect on the aggregate value of the Collateral or the Liens created
          hereunder.

                 (p)      Changes in Locations, Name, etc. Grantor will not (i)
          change the location of its chief executive office/chief place of
          business from that specified in Section 4(f) or remove its books and
          records from the locations specified in Section 4(c), (ii) except as
          permitted pursuant to Section 8.1.1 of the Credit Agreement, permit
          any of the Inventory or the Equipment to be kept at locations other
          than those listed in Schedule III hereto, unless such Inventory or
          Equipment is conveyed, sold, leased, transferred, assigned or
          otherwise disposed of as permitted by Section 10.2.9 of the Credit
          Agreement or (iii) change its name, identity or corporate structure to
          such an extent that any financing statement filed by the Agent in
          connection with this Agreement would become seriously misleading,
          unless Grantor shall have complied with the following: (A) with
          respect to clause (i) and (ii) above, Grantor shall have given the
          Agent prior written notice thereof, (B) with respect to clause (iii)
          above, Grantor (x) shall have given the Agent at least 30 days' prior
          written notice thereof and (y) prior to effecting any such change,
          shall have taken such actions as may be necessary or, upon the
          reasonable request of the Agent, advisable to continue the perfection
          and priority of the Liens granted pursuant hereto; provided in each
          case under clause (B)(y), that the Agent shall have taken all actions
          required by Section 5(a) hereof in connection with such actions of
          Grantor.

                 (q)      Copyrights. Grantor will not own nor at any time in
          the future acquire any right, title or interest in or to any Copyright
          or Copyright License which is material to the business of Grantor and
          its Subsidiaries, taken as a whole, other than (i) with respect to
          Computer Hardware and Software licenses or other Copyright licenses
          granted to Grantor in the Ordinary Course of Business, (ii) in
          connection with any rights of Grantor in respect of security interests
          in collateral or (iii) with respect to which (A) the Agent shall have
          been given prior written notice of the acquisition of any right, title
          or interest therein or thereto and (B) if reasonably requested by the
          Agent, a security agreement reasonably satisfactory to the Agent shall
          have been executed by Grantor.

                 (r)      Commercial Tort Claims. If Grantor shall at any time
          hold or acquire a Commercial Tort Claim, Grantor shall promptly notify
          Agent in a writing signed by Grantor of the brief details thereof and
          grant to Agent in such writing a security interest therein and in the
          proceeds thereof, all upon the terms of this Agreement, with such
          writing to be in form and substance satisfactory to Agent.

          6.     Agent's Appointment as Attorney-in-Fact.

                                       15

<PAGE>

                 (a)      Powers. Grantor hereby irrevocably constitutes and
          appoints the Agent and any officer or agent thereof, with full power
          of substitution, as its true and lawful attorney-in-fact with full
          irrevocable power and authority in the place and stead of Grantor and
          in the name of Grantor or in its own name, from time to time in the
          Agent's discretion, for the purpose of carrying out the terms of this
          Agreement, to take any and all appropriate action and to execute any
          and all documents and instruments which may be necessary or desirable
          to accomplish the purposes of this Agreement, and, without limiting
          the generality of the foregoing, Grantor hereby gives the Agent the
          power and right, on behalf of Grantor, without notice to or assent by
          Grantor, to do the following at any time when any Event of Default
          shall have occurred and be continuing, and to the extent permitted by
          Applicable Law:

                          (i) in the name of Grantor or its own name, or
                 otherwise, to take possession of and indorse and collect any
                 checks, drafts, notes, acceptances or other instruments for the
                 payment of moneys due under any Account, Contract, Instrument
                 or General Intangible (to the extent any of the foregoing
                 constitute Collateral) or with respect to any other Collateral
                 and to file any claim or to take any other action or institute
                 any proceeding in any court of law or equity or otherwise
                 deemed appropriate by the Agent for the purpose of collecting
                 any and all such moneys due under any such Account, Contract,
                 Instrument or General Intangible or with respect to any such
                 other Collateral whenever payable;

                          (ii) to pay or discharge taxes and Liens levied or
                 placed on the Collateral, other than Permitted Liens, to effect
                 any repairs or any insurance required by the terms of this
                 Agreement and to pay all or any part of the premiums therefor
                 and the costs thereof; and

                          (iii)(A) to direct any party liable for any payment
                 with respect to any of the Collateral to make payment of any
                 and all moneys due or to become due thereunder directly to the
                 Agent or as the Agent shall direct; (B) to ask for, or demand,
                 collect, receive payment of and receipt for, any and all
                 moneys, claims and other amounts due or to become due at any
                 time in respect of or arising out of any Collateral; (C) to
                 sign and indorse any invoices, freight or express bills, bills
                 of lading, storage or warehouse receipts, drafts against
                 debtors, assignments, verifications, notices and other
                 documents in connection with any of the Collateral; (D) to
                 commence and prosecute any suits, actions or proceedings at law
                 or in equity in any court of competent jurisdiction to collect
                 the Collateral or any thereof and to enforce any other right in
                 respect of any Collateral; (E) to defend any suit, action or
                 proceeding brought against Grantor with respect to any of the
                 Collateral; (F) to settle, compromise or adjust any suit,
                 action or proceeding described in clause (E) above and, in
                 connection therewith, to give such discharges or releases as
                 the Agent may deem appropriate; (G) subject to any pre-existing
                 rights or licenses, to assign

                                       16

<PAGE>

                 any Patent or Trademark (along with the goodwill of the
                 business to which any such Patent or Trademark pertains), for
                 such term or terms, on such conditions, and in such manner, as
                 the Agent shall in its sole discretion determine; and (H)
                 generally, to sell, transfer, pledge and make any agreement
                 with respect to or otherwise deal with any of the Collateral as
                 fully and completely as though the Agent were the absolute
                 owner thereof for all purposes, and to do, at the Agent's
                 option and Grantor's expense, at any time, or from time to
                 time, all acts and things which the Agent deems necessary to
                 protect, preserve or realize upon the Collateral and the
                 Agent's Liens thereon and to effect the intent of this
                 Agreement, all as fully and effectively as Grantor might do.

          Grantor hereby ratifies all that said attorneys shall lawfully do or
          cause to be done by virtue hereof. This power of attorney is a power
          coupled with an interest and shall be irrevocable until payment in
          full of the Obligations (except for contingent obligations of any
          Obligor under indemnifications that survive termination of the
          Revolver Commitments) and the termination of all the Revolver
          Commitments.

                 (b)      Other Powers. Grantor also authorizes the Agent, from
          time to time if an Event of Default shall have occurred and be
          continuing, to execute, in connection with any sale provided for in
          Section10 hereof, any endorsements, assignments or other instruments
          of conveyance or transfer with respect to the Collateral.

                 (c)      No Duty on the Part of Agent or Lenders. The powers
          conferred on the Agent and the Lenders hereunder are solely to protect
          the Agent's and the Lenders' interests in the Collateral and shall not
          impose any duty upon the Agent or any Lender to exercise any such
          powers. The Agent and the Lenders shall be accountable only for
          amounts that they actually receive as a result of the exercise of such
          powers, and neither they nor any of their officers, directors,
          employees or agents shall be responsible to Grantor for any act or
          failure to act hereunder, except for their own gross negligence or
          willful misconduct.

          7.     Performance by Agent of Grantor's Obligations. If Grantor fails
to perform or comply with any of its agreements contained herein and the Agent,
as provided for by the terms of this Agreement, shall itself perform or comply,
or otherwise cause performance or compliance, with such agreement, the
reasonable expenses of the Agent incurred in connection with such performance or
compliance, together with interest thereon at the Default Rate shall be payable
by Grantor to the Agent on demand and shall constitute Obligations secured
hereby.

          8.     Proceeds. It is agreed that if an Event of Default shall occur
and be continuing, (a) all Proceeds of any Collateral received by Grantor
consisting of cash, checks and other near-cash items shall be held by Grantor in
trust for the Agent and the Lenders, segregated from other funds of Grantor, and
at the request of the Agent shall, forthwith upon receipt by Grantor, be turned
over to the Agent in the exact form received by Grantor (duly indorsed by
Grantor to the Agent, if required by the

                                       17

<PAGE>

Agent), and (b) any and all such Proceeds received by the Agent (whether from
Grantor or otherwise) may, in the sole discretion of the Agent, be held by the
Agent, as collateral security for the Obligations (whether matured or
unmatured), and then or at any time thereafter may be applied by the Agent
against, the Obligations then due and owing. Any balance of such Proceeds
remaining after the payment in full of the Obligations (except for contingent
obligations of any Obligor under indemnifications that survive termination of
the Revolver Commitments) and the termination of all the Revolver Commitments,
shall be paid over to Grantor or to whomsoever may be lawfully entitled to
receive the same.

          9.     Events of Default. It is understood and agreed that an event of
default shall be deemed to have occurred under this Agreement, and Agent shall
be entitled to take such actions as are elsewhere provided herein, in the event
that an Event of Default under and (as defined in) the Credit Agreement or any
of the other Credit Documents shall have occurred.

          10.    Remedies. If an Event of Default shall occur and be continuing,
the Agent may (and upon written instructions to do so from the Required Lenders,
shall) exercise all rights and remedies of a secured party under the UCC,
together with every right and remedy available to Agent, under any other
Applicable Law, and, to the extent permitted by Applicable Law, all other rights
and remedies granted to them in this Agreement and in any other instrument or
agreement securing, evidencing or relating to the Obligations. Without limiting
the generality of the foregoing, the Agent, without demand of performance or
other demand, presentment, protest, advertisement or notice of any kind (except
any notice required by law referred to below) to or upon Grantor or any other
Person (all and each of which demands, defenses, advertisements and notices are
hereby waived), may (and upon written instructions to do so from the Required
Lenders, shall) in such circumstances, to the extent permitted by Applicable
Law, forthwith collect, receive, appropriate and realize upon the Collateral, or
any part thereof, and may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), whether on Grantor's premises
or elsewhere, but subject to any pre-existing rights or licenses, in one or more
parcels at public or private sale or sales, at any exchange, broker's board or
office of the Agent or any Lender or elsewhere upon such terms and conditions as
it may deem advisable and at such prices as it may deem best, for cash or on
credit or for future delivery without assumption of any credit risk. The Agent
or any Lender shall have the right, to the extent permitted by Applicable Law,
upon any such sale or sales, to purchase the whole or any part of the Collateral
so sold, free of any right or equity of redemption in Grantor, which right or
equity is hereby waived or released. Grantor further agrees, at the Agent's
request, upon the occurrence and during the continuance of an Event of Default,
to assemble the Collateral and make it available to the Agent at places which
the Agent shall reasonably select, whether at Grantor's premises or elsewhere.
Alternatively, Agent may peaceably by its own means or with judicial assistance
enter Grantor's premises and take possession of the Collateral or dispose of the
Collateral on Grantor's premises without resistance or interference by Grantor.
The Agent shall apply the net proceeds of any such collection, recovery,
receipt, appropriation, realization or sale, after deducting all reasonable
costs and expenses of every kind incurred therein or incidental to the care or
safekeeping of any of the Collateral or in any way relating to the Collateral or
the rights of the Agent and the Lenders

                                       18

<PAGE>

hereunder, including reasonable attorneys' fees and disbursements, to the
payment in whole or in part of the Obligations then due and owing, and only
after such application and after the payment by the Agent of any other amount
required by any provision of Applicable Law, need the Agent account for the
surplus, if any, to Grantor. To the extent permitted by Applicable Law, Grantor
waives all claims, damages and demands it may acquire against the Agent or any
Lender arising out of the repossession, retention or sale of the Collateral,
other than any such claims, damages and demands that may arise from the gross
negligence or willful misconduct of any of them. If any notice of a proposed
sale or other disposition of Collateral shall be required by law, such notice
shall be deemed reasonable and proper if given at least 10 days before such sale
or other disposition. Grantor shall remain liable for any deficiency if the
proceeds of any sale or other disposition of the Collateral are insufficient to
pay the then outstanding Obligations, including the reasonable fees and
disbursements of any attorneys employed by the Agent or any Lender to collect
such deficiency.

          11.    Limitation on Duties Regarding Preservation of Collateral. The
Agent's sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession, under Section 9-207 of the UCC
or otherwise, shall be to deal with it in the same manner as the Agent deals
with similar property for its own account. Except as provided in the foregoing
sentence or elsewhere herein or in any other Credit Document, neither the Agent
nor any Lender shall be liable or responsible to Grantor in any way for the
safeguarding of any of the Collateral, for any loss or damage thereto, for any
diminution in the value thereof, or for any act or default of any carrier,
warehouseman, forwarding agency, or other person whomsoever, but the same shall
be at all times at Grantor's risk.

          12.    Waivers. In addition to the other waivers contained herein and
in any other Credit Document, Grantor hereby expressly waives, to the extent
permitted by Applicable Law: demand, protest, notice of protest, notice of
default or dishonor, notice of payments and nonpayments, or of any default,
release, compromise, settlement, extension or renewal of all commercial paper,
instruments or guaranties at any time held by Agent or any of the Lenders on
which Grantor may in any way be liable; notice or hearing in connection with,
and the requirement to post a bond as a condition to, the issuance of an
immediate writ of possession with respect to any of the Collateral; any
requirement that the Agent or any of the Lenders protect, secure, perfect or
insure any Lien or any property subject thereto or exhaust any right or take any
action against any Obligor or any other Person or any Collateral, including any
rights any Obligor may otherwise have under the New York General Obligations
Law; and notice of any action taken by the Agent, in each case unless expressly
required by this Agreement, any other Credit Document or by Applicable Law.

          13.    Powers Coupled with an Interest. All authorizations and
agencies herein contained with respect to the Collateral are powers coupled with
an interest and are irrevocable until payment in full of the Obligations (except
for contingent obligations of any Obligor under indemnifications that survive
termination of the Revolver Commitments) and the termination of all Revolver
Commitments.

          14.    Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or

                                       19

<PAGE>

unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

          15.    Section Headings. The section headings used in this Agreement
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

          16.    No Waiver; Cumulative Remedies. Neither the Agent nor any
Lender shall by any act (except by a written instrument pursuant to Section 17
hereof), delay, indulgence, omission or otherwise be deemed to have waived any
right or remedy hereunder or to have acquiesced in any Default or Event of
Default or in any breach of any of the terms and conditions hereof. No failure
to exercise, nor any delay in exercising, on the part of the Agent or any
Lender, any right, power or privilege hereunder shall operate as a waiver
thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Agent or any Lender of
any right or remedy hereunder on any one occasion shall not be construed as a
bar to any right or remedy which the Agent or such Lender would otherwise have
on any future occasion. The rights and remedies herein provided are cumulative,
may be exercised singly or concurrently and are not exclusive of any rights or
remedies provided by law.

          17.    Amendments in Writing; No Waiver; Cumulative Remedies;
Successors and Assigns. None of the terms or provisions of this Agreement may be
waived, amended, supplemented or otherwise modified except by a written
instrument executed by Grantor and the Agent. This Agreement shall be binding
upon the successors and assigns of Grantor and shall inure to the benefit of the
Agent and the Lenders and their respective successors and assigns, except that
Grantor may not assign, transfer or delegate any of its rights or obligations
under this Agreement without the prior written consent of the Agent.

          18.    Notices. All notices, requests and demands to or upon the
respective parties hereto shall be made in accordance with Section 15.9 of the
Credit Agreement, and if to Grantor shall be sent to:

                       RA Brands, L.L.C.
                       c/o Remington Arms Company, Inc.
                       870 Remington Drive
                       Madison, North Carolina 27025
                       Attention:  Mr. Mark Little, VP, Chief Financial Officer
                       Telecopy No.: (336) 548-7779

                                       20

<PAGE>

                       With a copy to:
                       -------------------------------

                       Clayton, Dubilier & Rice, Inc.
                       375 Park Avenue
                       New York, New York 10152
                       Attention:  Mr. Michael Babiarz
                       Telecopy No.: (212) 893-7050

                       and

                       Debevoise & Plimption
                       919 Third Avenue
                       New York, New York 10022
                       Attention: William B. Beekman, Esq.
                       Telecopy No.: (212) 909-6836

          19.    Authority of Agent. Grantor acknowledges that the rights and
responsibilities of the Agent under this Agreement with respect to any action
taken by the Agent or the exercise or non-exercise by the Agent of any option,
voting right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Agreement shall, as among the Agent and the
Lenders, be governed by the Credit Documents and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Agent and Grantor, the Agent shall be conclusively presumed to be acting as
agent for the Lenders with full and valid authority so to act or refrain from
acting, and Grantor shall not be under any obligation to make any inquiry
respecting such authority.

          20.    GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING
EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF, OTHER THAN SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW); PROVIDED, HOWEVER, THAT IF ANY COLLATERAL
SHALL BE LOCATED IN ANY JURISDICTION OTHER THAN NEW YORK, THE LAWS OF SUCH
JURISDICTION SHALL GOVERN THE METHOD, MANNER AND PROCEDURE FOR FORECLOSURE OF
AGENT'S LIEN UPON COLLATERAL AND THE ENFORCEMENT OF AGENT'S OTHER REMEDIES OF
COLLATERAL TO THE EXTENT THAT THE LAWS OF SUCH JURISDICTION ARE DIFFERENT FROM
OR INCONSISTENT WITH THE LAWS OF THE STATE OF NEW YORK. NOTWITHSTANDING THE
FOREGOING PROVISION FOR THE NOTICE AND SALE OF COLLATERAL UNDER THE LAW OF THE
SITUS, IT IS THE PARTIES' INTENTION THAT NEW YORK LAW CONTROL THE OBLIGATIONS OF
GRANTOR UNDER THE CREDIT DOCUMENTS AND THE ENFORCEMENT OF THE SAME SUCH THAT,
FOR EXAMPLE, GRANTOR AGREES AND ACKNOWLEDGES THAT PURSUANT TO NEW YORK LAW
GRANTOR SHALL BE LIABLE FOR A DEFICIENCY JUDGMENT NOTWITHSTANDING THE SALE OF
REAL PROPERTY COLLATERAL UNDER A POWER OF SALE AND FURTHER

                                       21

<PAGE>

THAT LENDERS OR AGENT MAY, AT THEIR ELECTION, SEEK A MONEY JUDGMENT UNDER THE
CREDIT DOCUMENTS WITHOUT FIRST EXHAUSTING ALL COLLATERAL SECURING THE
OBLIGATIONS THEREUNDER.

          21.    Release of Collateral and Termination.

                 (a)      At such time as the payment in full of the Obligations
          (except for contingent obligations of any Obligor under
          indemnifications that survive termination of the Revolver Commitments)
          and the termination of all Revolver Commitments shall have occurred,
          the Collateral shall be released from the Liens created hereby, and
          this Agreement and all obligations (other than those expressly stated
          to survive such termination) of the Agent and Grantor hereunder shall
          terminate, all without delivery of any instrument or performance of
          any act by any party, and all rights to the Collateral shall revert to
          Grantor. Upon request of Grantor following any such termination, the
          Agent shall deliver (at the sole cost and expense of Grantor) to
          Grantor any Collateral held by the Agent hereunder, and execute and
          deliver (at the sole cost and expense of Grantor) to Grantor such
          documents as Grantor shall reasonably request to evidence such
          termination.

                 (b)      If any of the Collateral shall be sold, transferred or
          otherwise disposed of by Grantor in a transaction permitted by the
          Credit Agreement, then the Agent shall execute and deliver to Grantor
          (at the sole cost and expense of Grantor) all releases or other
          documents reasonably necessary or desirable for the release of the
          Liens created hereby on such Collateral.

                   REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

                                       22

<PAGE>

          IN WITNESS WHEREOF, Grantor has caused this Agreement to be duly
executed and delivered as of the date first above written.

                                 RA BRANDS, L.L.C.

                                 By: /s/  Thomas Millner
                                     ----------------------------------------
                                 Name:  Thomas Millner
                                       --------------------------------------
                                 Title: President
                                       --------------------------------------

                                       23

<PAGE>

                                 ACKNOWLEDGED AND AGREED AS OF THE
                                 DATE HEREOF BY:

                                 WACHOVIA BANK, NATIONAL ASSOCIATION,
                                 as Agent

                                 By: /s/  Brian R. O'Fallon
                                     ----------------------------------------
                                 Name:  Brian R. O'Fallon
                                       --------------------------------------
                                 Title: Director
                                       --------------------------------------

                                       24<PAGE>

                                                                   EXHIBIT 10.21

                          SUBSIDIARY SECURITY AGREEMENT

          THIS SECURITY AGREEMENT, dated January 24, 2003, is made by RBC
HOLDING, INC., a Delaware corporation ("Grantor"), in favor of WACHOVIA BANK,
NATIONAL ASSOCIATION, a national banking association with an office at 301 South
College Street, 6th Floor, Charlotte, North Carolina 28288, in its capacity as
administrative and collateral agent (together with its successors in such
capacities, the "Agent") for various financial institutions ("Lenders") from
time to time parties to that certain Credit Agreement dated January 24, 2003 (as
the same may be amended, supplemented, waived or otherwise modified from time to
time, the "Credit Agreement"), among Remington Arms Company, Inc. ("Remington"),
RA Factors, Inc. ("Factors", together with Remington, the "Borrowers"), the
Agent, Fleet Capital Corporation, in its capacity as syndication agent, National
City Commercial Finance, Inc., in its capacity as documentation agent, and the
Lenders.

                              W I T N E S S E T H :

          WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to
make Revolver Loans and provide other financial accommodations to the Borrowers
upon the terms and subject to the conditions set forth therein; and

          WHEREAS, Grantor has executed and delivered a Subsidiary Guaranty in
favor of Agent (the "Subsidiary Guaranty"), pursuant to which Grantor has
guaranteed the payment and performance of all of the indebtedness, liabilities
and other obligations of Borrowers under the Credit Documents to Agent and
Lenders; and

          WHEREAS, it is a condition precedent to the obligations of the Lenders
to make Revolver Loans and provide other financial accommodations to the
Borrowers under the Credit Agreement that Grantor shall have executed and
delivered this Agreement to the Agent for its benefit and the ratable benefit of
the Lenders;

          NOW, THEREFORE, in consideration of the premises and to induce the
Agent and the Lenders to enter into the Credit Agreement and to induce the
Lenders to make Revolver Loans and provide other financial accommodations to the
Borrowers thereunder, Grantor hereby agrees with the Agent, for its benefit and
the ratable benefit of the Lenders, as follows:

          1.     Defined Terms.

          (a)    Unless otherwise defined herein, capitalized terms defined in
the Credit Agreement are used herein as defined therein. The following terms are
used herein as defined in the UCC in effect from time to time: Accounts, Chattel
Paper, Commercial Tort Claims, Deposit Accounts, Documents, Electronic Chattel
Paper, Equipment, Farm Products, Financial Assets, Fixtures, General
Intangibles,

                                        1

<PAGE>

Goods, Instruments, Inventory, Investment Property, Letter-of-Credit Rights,
Payment Intangibles, Proceeds, Software and Supporting Obligations. The
following terms shall have the following meanings:

                 "Agreement": this Subsidiary Security Agreement, as the same
          may be amended, supplemented, waived or otherwise modified from time
          to time.

                 "Collateral": as defined in Section 2 of this Agreement.

                 "Computer Hardware and Software": all rights of Remington
          (including rights as licensee and lessee) with respect to (i) computer
          and other electronic data processing hardware, including all
          integrated computer systems, central processing units, memory units,
          display terminals, printers, computer elements, card readers, tape
          drives, hard and soft disc drives, cables, electrical supply hardware,
          generators, power equalizers, accessories, peripheral devices and
          other related computer hardware; (ii) all Software and all software
          programs designed for use on the computers and electronic data
          processing hardware described in clause (i) above, including all
          operating system software, utilities and application programs in any
          form (service code and object code in magnetic tape, disc or hard copy
          format or any other listings whatsoever); (iii) any firmware
          associated with any of the foregoing; (iv) any documentation for
          hardware, Software and firmware described in clauses (i), (ii) and
          (iii) above, including flow charts, logic diagrams, manuals,
          specifications, training materials, charts and pseudo codes; and all
          rights with respect thereto, including any and all licenses, options,
          warrants, service contracts, program services, test rights,
          maintenance rights, support rights, improvement rights, renewal rights
          and indemnifications, and any substitutions, replacements, additions
          or model conversions of any of the foregoing.

                 "Contracts": all contracts, agreements, instruments and
          indentures in any form, and portions thereof, to which Grantor is a
          party, or under which Grantor has any right, title or interest, or to
          which Grantor or any property of Grantor is subject, as the same may
          from time to time be amended, supplemented or otherwise modified,
          including, (a) all rights of Grantor to receive moneys due and to
          become due to Grantor thereunder or in connection therewith, (b) all
          rights of Grantor to damages arising out of, or for, breach or default
          in respect thereof and (c) all rights of Grantor to perform and to
          exercise all remedies thereunder.

                 "Copyright Licenses": all United States written license
          agreements to which Grantor is a party with any other Person in
          connection with any of the Copyrights or such other Person's
          copyrights, whether Grantor is a licensor or a licensee under any such
          license agreement, subject, in each case, to the terms of such license
          agreements, and the right to prepare for sale, sell and advertise for
          sale, all Inventory now or hereafter covered by such licenses.

                                        2

<PAGE>

                 "Copyrights": all United States copyrights, whether or not the
          underlying works of authorship have been published, and whether or not
          the copyrights have been registered, copyright registrations and
          applications, and all works of authorship and other intellectual
          property rights therein, including (a) all renewals thereof, (b) all
          income, royalties, damages and other payments now and hereafter due or
          payable with respect thereto (including payments under all licenses
          entered into in connection therewith, and damages and payments for
          past or future infringements thereof), (c) the right to sue for past,
          present and future infringements and misappropriations thereof, and
          (d) all rights corresponding thereto throughout the world and all
          other rights of any kind whatsoever of Grantor accruing thereunder or
          pertaining thereto.

                 "Obligations": (a) all indebtedness, liabilities and
          obligations of Grantor to Agent and Lenders of every kind and
          description, whether direct or indirect, joint or several, absolute or
          contingent, due or to become due, now existing or hereafter arising
          under any of the Credit Documents and (b) all indebtedness,
          liabilities and obligations now or hereafter owing by the Borrowers
          under any of the Credit Documents.

                 "Patent License": all United States written license agreements
          to which Grantor is a party with any other Person in connection with
          any of the Patents or such other Person's patents, whether Grantor is
          a licensor or a licensee under any such license agreement, including
          the license agreements listed in Schedule II attached hereto and made
          a part hereof, subject, in each case, to the terms of such license
          agreements, and the right to prepare for sale, sell and advertise for
          sale, all Inventory now or hereafter covered by such licenses.

                 "Patents": all United States patents, patent applications and
          patentable inventions, including all patents and patent applications
          identified in Schedule II attached hereto and made a part hereof, and
          including (a) all inventions and improvements described and claimed
          therein, and patentable inventions, (b) the right to sue or otherwise
          recover for any and all past, present and future infringements and
          misappropriations thereof, (c) all income, royalties, damages and
          other payments now and hereafter due or payable with respect thereto
          (including payments under all licenses entered into in connection
          therewith, and damages and payments for past or future infringements
          thereof), and (d) all rights corresponding thereto in the United
          States and all reissues, divisions, continuations,
          continuations-in-part, substitutes, renewals, and extensions thereof,
          all improvements thereon, and all other rights of any kind whatsoever
          of Grantor accruing thereunder or pertaining thereto.

                 "Permitted Liens": Liens permitted pursuant to Section 10.2.5
          of the Credit Agreement or as otherwise expressly permitted to exist
          under any of the Credit Documents.

                                        3

<PAGE>

                 "Trademark License": all United States written license
          agreements to which Grantor is a party with any other Person in
          connection with any of the Trademarks or such other Person's names or
          trademarks, whether Grantor is a licensor or a licensee under any such
          license agreement, including the license agreements listed in Schedule
          I attached hereto and made a part hereof, subject, in each case, to
          the terms of such license agreements, and the right to prepare for
          sale, sell and advertise for sale, all Inventory now or hereafter
          covered by such licenses.

                 "Trademarks": all United States trademarks, service marks,
          trade names, trade dress or other indicia of trade origin, trademark
          and service mark registrations, and applications for trademark or
          service mark registrations (except for "intent to use" applications
          for trademark or service mark registrations filed pursuant to Section
          1(b) of the Lanham Act, unless and until an Amendment to Allege Use or
          a Statement of Use under Sections 1(c) and 1(d) of said Act has been
          filed), and any renewals thereof, including each registration and
          application identified in Schedule I attached hereto and made a part
          hereof, and including (a) the right to sue or otherwise recover for
          any and all past, present and future infringements and
          misappropriations thereof, (b) all income, royalties, damages and
          other payments now and hereafter due or payable with respect thereto
          (including payments under all licenses entered into in connection
          therewith, and damages and payments for past or future infringements
          thereof), and (c) all rights corresponding thereto in the United
          States and all other rights of any kind whatsoever of Grantor accruing
          thereunder or pertaining thereto, together in each case with the
          goodwill of the business connected with the use of, and symbolized by,
          each such trademark, service mark, trade name, trade dress or other
          indicia of trade origin.

                 "UCC": the Uniform Commercial Code (or any successor statute)
          as adopted and in force in the State of New York or, when the laws of
          any other state govern the method or manner of the perfection or
          enforcement of any security interest in any of the Collateral, the
          Uniform Commercial Code (or any successor statute) of such state.

                 "Work": any work which is subject to copyright protection
          pursuant to Title 17 of the United States Code.

                 (b)    Certain Matters of Construction: The terms "herein,"
          "hereof" and "hereunder" and other words of similar import when used
          in this Agreement shall refer to this Agreement as a whole and not to
          any particular section, paragraph or subdivision. Any pronoun used
          shall be deemed to cover all genders. All references to statutes and
          related regulations shall include any amendments of same and any
          successor statutes and regulations; any of the Credit Documents shall
          include any and all amendment or modifications thereto and any and all
          restatements, extensions or renewals thereof; to any Person shall mean
          and include the successors and permitted assigns of such Person; to
          "including" and "include" shall be understood to mean

                                        4

<PAGE>

          "including, without limitation." A Default or an Event of Default
          shall be deemed to exist at all times during the period commencing on
          the date that such Default or Event of Default occurs to the date on
          which such Default or Event of Default is waived in writing pursuant
          to this Agreement or, in the case of a Default, is cured within any
          period of cure expressly provided in this Agreement or the applicable
          Credit Document; and an Event of Default shall "continue" or be
          "continuing" until such Event of Default has been waived in writing by
          Agent. Any Lien referred to in this Agreement or any of the other
          Credit Documents as having been created in favor of Agent, any
          agreement entered into by Agent pursuant to this Agreement or any of
          the other Credit Documents, any payment made by or to or funds
          received by Agent pursuant to or as contemplated by any of the Credit
          Documents, or any other act taken or omitted to be taken by Agent
          shall, unless otherwise expressly provided, be created, entered into,
          made or received, or taken or omitted for its benefit and the benefit
          or account of the Lenders.

          2.     Grant of Security Interest. As collateral security for the
prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations, Grantor hereby
assigns, pledges and grants, subject to existing licenses to use Patents or
Trademarks granted by Grantor in the ordinary course of business, to the Agent a
security interest in and Lien on all of the following property now owned or at
any time hereafter acquired by Grantor or in which Grantor now has or at any
time in the future may acquire any right, title or interest (collectively, the
"Collateral"):

                 (i)      all Accounts;

                 (ii)     all Chattel Paper, including all Electronic Chattel
                          Paper;

                 (iii)    all Commercial Tort Claims;

                 (iv)     all Computer Hardware and Software;

                 (v)      all Contracts;

                 (vi)     all Deposit Accounts;

                 (vii)    all Documents;

                 (viii)   all Financial Assets;

                 (ix)     all General Intangibles;

                 (x)      all Goods, including all Equipment and all Inventory;

                                        5

<PAGE>

                 (xi)     all Instruments;

                 (xii)    all Investment Property;

                 (xiii)   all Letter-of-Credit Rights

                 (xiv)    all Patent Licenses;

                 (xv)     all Patents;

                 (xvi)    all Payment Intangibles;

                 (xvii)   all Supporting Obligations;

                 (xviii)  all Trademark Licenses;

                 (xix)    all Trademarks;

                 (xx)     all monies now or at any time or times hereafter in
                          the possession or under the control of Agent or any
                          Lender, or a bailee or affiliate of Agent or any
                          Lender;

                 (xxi)    all accessions to, substitutions for and all
                          replacements, products, and cash and non-cash Proceeds
                          of (i) through (xx) above, including, Proceeds of and
                          unearned premiums with respect to insurance policies
                          insuring any of the Collateral and claims against any
                          Person for loss of, damage to, or destruction of any
                          of the Collateral; and

                 (xxii)   all books and records (including customer lists,
                          files, correspondence, tapes, computer programs,
                          print-outs and other computer materials and records)
                          of Grantor pertaining to any of (i) through (xxi)
                          above;

provided that in no event shall there be pledged, nor shall Grantor be required
to pledge, directly or indirectly, more than 65% of any series of the
outstanding Equity Interests of any Foreign Subsidiary.

Notwithstanding anything to the contrary set forth above, the types or items of
Collateral described shall not include any rights or interests in any
Instrument, Contract, Chattel Paper, General Intangible, Patent License or
Trademark License, as such, if under the terms of such Instrument, Contract,
Chattel Paper, General Intangible, Patent License or Trademark License, or
Applicable Law with respect thereto, the valid grant of a security interest or
Lien therein to Agent is prohibited and such prohibition has not been or is not
waived or the consent of the other party to such Instrument, Contract, Chattel
Paper, General Intangible, Patent License or Trademark License has not been or
is not otherwise obtained or

                                        6

<PAGE>

under Applicable Law such prohibition cannot be waived, provided that the
foregoing exclusion shall in no way be construed (a) to apply if any such
prohibition is unenforceable under Sections 9-406 or 9-408 of the UCC or other
Applicable Law or (b) so as to limit, impair or otherwise affect Agent's
unconditional continuing security interests in and Liens upon any rights or
interests of Grantor in or to monies due or to become due under any such
Instrument, Contract, Chattel Paper, General Intangible, Patent License or
Trademark License (including any Accounts).

          3.     Rights of Agent and Lenders; Limitations on Agent's and
Lenders' Obligations.

                 (a)    No Liability of Agent or Lenders under Accounts or
          Contracts. None of the Agent nor any Lender shall have any obligation
          or liability under any Account (or any agreement giving rise thereto)
          or Contract by reason of or arising out of this Agreement or the
          receipt by the Agent or any such Lender of any payment relating to
          such Account or Contract pursuant hereto, nor shall the Agent or any
          Lender be obligated in any manner to perform any of the obligations of
          Grantor under or pursuant to any Account (or any agreement giving rise
          thereto) or Contract, to make any payment, to make any inquiry as to
          the nature or the sufficiency of any payment received by it or as to
          the sufficiency of any performance by any party under any Account (or
          any agreement giving rise thereto) or Contract, to present or file any
          claim, to take any action to enforce any performance or to collect the
          payment of any amounts which may have been assigned to it or to which
          it may be entitled at any time or times.

                 (b)    Notice to Account Debtors. At any time after the
          occurrence and during the continuance of an Event of Default, Agent
          may (and upon written instructions to do so from the Required Lenders,
          shall) direct Grantor to notify the Account Debtors on the Accounts
          and the parties to the Contracts that the Accounts and Contracts have
          been assigned to the Agent, and that payments in respect thereof shall
          be made directly to the Agent. The Agent may (and, upon written
          instructions to do so from the Required Lenders, shall) in its own
          name or in the name of others communicate with Account Debtors on the
          Accounts and the parties to the Contracts (i) to verify with them to
          its satisfaction the existence, amount and terms of any Accounts or
          Contracts, and (ii) at any time and from time to time after the
          occurrence and during the continuance of an Event of Default, to
          notify such Account Debtors or parties to make all payments owing to
          Grantor directly to Agent for application to the Obligations and to
          collect all amounts owing from any such Account Debtors or parties.

                 (c)    Collections on Accounts. If required by the Agent at any
          time when an Event of Default has occurred and is continuing, any
          payments of Accounts, when collected by Grantor, shall be immediately
          transferred by Grantor to the Agent, subject to disposition by the
          Agent for the account of the Lenders only. Until so turned over, all
          such payments shall be held by Grantor in trust for the benefit of the
          Agent and the Lenders, segregated from other funds of Grantor. All
          Proceeds constituting collections of Accounts while held by the Agent
          (or by Grantor in trust for the benefit of the Agent and the Lenders)
          shall continue to be collateral security for all of the Obligations
          and shall not constitute payment thereof until

                                        7

<PAGE>

          applied as hereinafter provided. At any time when an Event of Default
          has occurred and is continuing, at the Agent's election, the Agent
          shall hold all or any part of such funds on account of the Obligations
          (whether matured or unmatured) and may apply such funds to the
          obligations then due and owing, and, except as otherwise may be
          required under the Credit Agreement, any part of such funds which the
          Agent does not so apply shall be paid over from time to time by the
          Agent to Grantor or to whomsoever may be lawfully entitled to receive
          the same. At any time when an Event of Default has occurred and is
          continuing, at the Agent's request, Grantor shall deliver to the Agent
          all original and other documents evidencing, and relating to, the
          agreements and transactions which gave rise to the Accounts, including
          all statements relating to the Accounts.

                 (d)    Deposit Accounts. With respect to the grant of a
          security interest in Grantor's Deposit Accounts, Grantor hereby
          authorizes and directs each such bank or other depository at which
          Grantor maintains a Deposit Account to pay or deliver to the Agent
          upon its written demand therefor made at any time upon the occurrence
          and during the continuation of an Event of Default and without further
          notice to Grantor (such notice being hereby expressly waived), all
          balances in each Deposit Account maintained by Grantor with such bank
          or other depository for application to the Obligations then
          outstanding, and the rights given the Agent in this Section shall be
          cumulative with and in addition to the Agent's other rights and
          remedies in regard to the foregoing property as proceeds of
          Collateral.

          4.     Representations and Warranties. Grantor hereby represents and
warrants that:

                 (a)    Title; No Other Liens. Except for Permitted Liens,
          Grantor owns each item of the Collateral free and clear of any and all
          Liens. No security agreement, financing statement or other public
          notice similar in effect with respect to all or any part of the
          Collateral that has been authorized or executed by the Grantor is on
          file or of record in any public office, except such as may have been
          filed in favor of the Agent, pursuant to this Agreement or any other
          Credit Document, or which are permitted pursuant to the Credit
          Documents.

                 (b)    Perfected First Priority Liens. (i) This Agreement is
          effective to create, as collateral security for the Obligations, valid
          and enforceable Liens on the Collateral in favor of the Agent, except
          with respect to Commercial Tort Claims acquired by Grantor after the
          date hereof, and except as enforceability may be affected by
          bankruptcy, insolvency, fraudulent conveyance, reorganization,
          moratorium and other similar laws relating to or affecting creditor's
          rights generally, general equitable principles (whether considered in
          a proceeding in equity or at law) and an implied covenant of good
          faith and fair dealing. (ii) Except with regard to Liens on Specified
          Assets, upon the completion of the Filings, and the delivery to and
          continuing possession by the Agent of all Instruments, Chattel Paper
          and Documents, Investment Property and monies, a security interest in
          which is perfected by possession, and the obtaining and maintenance of
          "control" (as described in the UCC) by the Agent of all Deposit
          Accounts, Electronic Chattel Paper, Investment Property, and
          Letter-of-Credit Rights, a security interest in which is perfected by
          "control", the Liens created pursuant to this

                                        8

<PAGE>

          Agreement will constitute valid Liens on and (to the extent provided
          herein) perfected security interests in the Collateral in favor of the
          Agent, and will be prior to all other Liens of all other Persons other
          than Permitted Liens, and enforceable as such as against all other
          Persons other than Ordinary Course Buyers, and except as
          enforceability may be limited by the Assignment of Claims Act and
          except as enforceability may be limited by applicable bankruptcy,
          insolvency, reorganization, moratorium or similar laws affecting the
          enforcement of creditors' rights generally and by general equitable
          principles (whether enforcement is sought by proceedings in equity or
          at law) or by an implied covenant of good faith and fair dealing. As
          used in this Section 4(b)(ii), the following terms shall have the
          following meanings:

                        "Filings": the filing or recording of the Financing
                 Statements, any Patent and Trademark Security Agreement with
                 the U.S. Patent and Trademark Office, any Copyright Security
                 Agreement with the U.S. Copyright Office, and any filings after
                 the Closing Date in any jurisdiction as may be necessary under
                 any Applicable Law.

                        "Financing Statements": the financing statements
                 prepared by the Agent naming Grantor as debtor and the Agent as
                 secured party filed on or about the Closing Date in the
                 jurisdictions as may be necessary under any Applicable Law.

                        "Ordinary Course Buyers": (i) with respect to Goods
                 only, buyers in the ordinary course of business to the extent
                 provided in Section 9-320(a) and 9-321 of the UCC, (ii) with
                 respect to General Intangibles only, licensees in the ordinary
                 course of business to the extent provided in Section 9-321 of
                 the UCC as in effect from time to time in the relevant
                 jurisdiction and (iii) any other Person who is entitled to take
                 free of the Lien pursuant to the UCC or other applicable law.

                        "Specified Assets": the following property and assets of
                 Grantor: (1) Patents, Patent Licenses, Trademarks and Trademark
                 Licenses to the extent that Liens thereon cannot be perfected
                 by the filing of financing statements under the UCC or by the
                 filing and acceptance of a Patent and Trademark Security
                 Agreement in the United States Patent and Trademark Office; (2)
                 Collateral for which the perfection of Liens thereon requires
                 filings in or other actions under the laws of jurisdictions
                 outside the United States of America, any State, territory or
                 dependency thereof or the District of Columbia; (3) Commercial
                 Tort Claims acquired by Remington after the date hereof, (4)
                 motor vehicles, (5) monies and (6) goods included in Collateral
                 received by any Person for "sale or return" within the meaning
                 of Section 2-326 of the UCC of the applicable jurisdiction, to
                 the extent of claims of creditors of such Person.

                                        9

<PAGE>

                 (c)    Accounts. The places where Grantor keeps its records
          concerning the Accounts are 870 Remington Drive, Madison, North
          Carolina 27025 or such other location or locations of which Grantor
          shall have provided prior written notice to the Agent pursuant to
          Section 5(p).

                 (d)    Consents. Except as set forth in Schedules I and II
          hereto, no consent of any party (other than Grantor) to any Patent
          License or Trademark License constituting Collateral or any obligor in
          respect of any material Account constituting Collateral or which owes
          in the aggregate a material portion of all the Accounts constituting
          Collateral is required, or purports to be required, to be obtained by
          or on behalf of Grantor in connection with the execution, delivery and
          performance of this Agreement that has not been obtained. Each Patent
          License, Trademark License and Account constituting Collateral is in
          full force and effect and constitutes a valid and legally enforceable
          obligation of Grantor and (to the knowledge of Grantor) each other
          party thereto except as enforceability may be limited by bankruptcy,
          insolvency, reorganization, moratorium or similar laws affecting the
          enforcement of creditor's rights generally and by general equitable
          principles (whether enforcement is sought by proceedings in equity or
          at law) and except to the extent the failure of any such Patent
          License, Trademark License or Account constituting Collateral to be in
          full force and effect or valid or legally enforceable could not be
          reasonably expected, in the aggregate, to have a Material Adverse
          Effect on the value of the Collateral. Except as set forth in
          Schedules I and II hereto, no consent or authorization of, filing with
          or other act by or in respect of any Governmental Authority is
          required in connection with the execution, delivery, performance,
          validity or enforceability of any of the Patent Licenses and Trademark
          Licenses and Accounts constituting Collateral by any party thereto
          other than those which have been duly obtained, made or performed and
          are in full force and effect and those the failure of which to make or
          obtain could not be reasonably expected, in the aggregate, to have a
          Material Adverse Effect on the value of the Collateral. Except as set
          forth in Schedules I and II hereto, neither Grantor nor (to the
          knowledge of Grantor) any other party to any Patent License or
          Trademark License or Account constituting Collateral is in default in
          the performance or observance of any of the terms thereof, except for
          such defaults as could not reasonably be expected, in the aggregate,
          to have a Material Adverse Effect on the value of the Collateral. The
          right, title and interest of Grantor in, to and under each Patent
          License and Trademark License and each Account constituting Collateral
          are not subject to any defense, offset, counterclaim or claim which
          could be reasonably expected, either individually or in the aggregate,
          to have a Material Adverse Effect on the value of the Collateral.

                 (e)    Location of Tangible Property. Grantor's Inventory and
          Equipment are kept at the locations listed in Schedule III hereto or
          such other locations of which Grantor shall provide written notice to
          the Agent pursuant to Section 5(p), and after the date hereof at other
          locations to the extent permitted pursuant to Section 8.1.1 of the
          Credit Agreement.

                 (f)    Chief Executive Office. Grantor's chief executive office
          and chief place of business is located at 870 Remington Drive,
          Madison, North Carolina 27025 or such other

                                       10

<PAGE>

          location of which Grantor shall have provided written notice to the
          Agent pursuant to Section 5(p).

                 (g)    Farm Products. None of the Collateral constitutes, or is
          the Proceeds of, Farm Products.

                 (h)    Patents and Trademarks. Schedules I and II hereto
          include all Trademarks and Patents owned by Grantor in its own name as
          of the date hereof and all material Trademark Licenses and all
          material Patent Licenses owned by Grantor in its own name as of the
          date hereof.

                 (i)    Governmental Obligors. As of the date hereof, none of
          the obligors on any Accounts, and none of the parties to any
          Contracts, is a Governmental Authority, except for any such Accounts
          or Contracts that are not material in relation to the business of
          Remington and its Subsidiaries, taken as a whole.

                 (j)    Copyrights. As of the date hereof, Grantor does not own
          any Copyrights and is not a party to any Copyright Licenses (other
          than Computer Hardware and Software licenses granted to Grantor in the
          Ordinary Course of Business) which are material to the business of
          Remington and its Subsidiaries, taken as a whole.

Grantor agrees that the foregoing representations and warranties shall be deemed
to have been made by Grantor on and as of each date on which an Revolver Loan is
made by the Lenders to the Borrowers under the Credit Agreement, in each case as
though made on and as of each such date (or, if any such representation or
warranty is expressly stated to have been made as of a specific date, as of such
specific date).

          5.     Covenants. Grantor covenants and agrees with the Agent and the
Lenders and, with respect to Section 5(a), the Agent covenants and agrees with
Grantor, that, from and after the date of this Agreement until the payment in
full of the Obligations (except for contingent obligations of any Obligor under
indemnifications that survive termination of the Revolver Commitments) and the
termination of all Revolver Commitments:

                 (a)    Further Documentation; Pledge of Instruments and Chattel
          Paper. At any time and from time to time, upon the written request of
          the Agent or Grantor, as the case may be, and at the sole expense of
          Grantor, Grantor or the Agent, as the case may be, will promptly and
          duly execute and deliver such further instruments and documents and
          take such further action as the Agent or Grantor may reasonably
          request for the purpose of obtaining or preserving the full benefits
          of this Agreement and of the rights and powers herein granted,
          including the filing of any financing or continuation statements under
          the UCC in effect in any jurisdiction with respect to the Liens
          created hereby, provided that Grantor shall not be required to take
          any action that the Agent would not be entitled to request a Borrower
          to take pursuant to Section 7.4 of the Credit Agreement. Grantor also
          hereby authorizes the Agent to

                                       11

<PAGE>

          prepare and file any such financing or continuation statement without
          the signature of Grantor to the extent permitted by Applicable Law.
          The Agent agrees to notify Grantor and Grantor agrees to notify the
          Agent of any financing or continuation statement filed by it pursuant
          to this Section 5(a), provided that any failure to give any such
          notice shall not affect the validity or effectiveness of any such
          filing. Unless an Event of Default shall have occurred and be
          continuing, Grantor shall be entitled to retain possession of all
          Collateral evidenced by any Instrument or Chattel Paper, and shall
          hold all such Collateral in trust for the Agent, and shall not
          commingle any of such Collateral with any other assets of Grantor. In
          the event an Event of Default shall have occurred and be continuing,
          upon the request of the Agent, such Collateral shall be immediately
          delivered to the Agent, duly endorsed in a manner satisfactory to the
          Agent, to be held as Collateral pursuant to this Agreement. Grantor
          shall not permit any other Person to possess any such Collateral other
          than in connection with any sale or other disposition of such
          Collateral as permitted by the Credit Agreement, or as otherwise
          consented to by Agent in writing.

                 (b)    Indemnification. Grantor agrees to pay, and to save
          harmless and defend the Agent and the Lenders from, any and all
          liabilities and reasonable costs and expenses (including reasonable
          legal fees and expenses) (i) with respect to, or resulting from, any
          delay by Grantor in paying, any and all excise, sales or other similar
          taxes which may be payable or determined to be payable with respect to
          any of the Collateral, (ii) with respect to, or resulting from, any
          delay by Grantor in complying with any material requirement of
          Applicable Law with respect to any of the Collateral or (iii) in
          connection with any of the transactions contemplated by this
          Agreement, provided that such indemnity shall not, as to the Agent or
          any Lender, be available to the extent that such liabilities, costs
          and expenses resulted from the gross negligence or willful misconduct
          of the Agent or any Lender. In any suit, proceeding or action brought
          by the Agent or any Lender under any Account for any sum owing
          thereunder, or to enforce any provisions of any Account, Grantor will
          save, indemnify and keep harmless and defend the Agent and such Lender
          from and against all expense, loss or damage suffered by reason of any
          defense, setoff, counterclaim, recoupment or reduction or liability
          whatsoever of the account debtor thereunder, arising out of a material
          breach by Grantor of any obligation thereunder.

                 (c)    Maintenance of Records. Grantor will keep and maintain
          at its own cost and expense reasonably satisfactory and complete
          records of the Collateral, including a record of all payments received
          and all credits granted with respect to the Accounts constituting
          Collateral. For the Agent's and the Lenders' further security, the
          Agent shall have a security interest in all of Grantor's books and
          records pertaining to the Collateral, and Grantor shall permit the
          Agent or its representatives to review such books and records upon
          reasonable advance notice during normal business hours at the location
          where such books and records are kept and at the reasonable request of
          the Agent.

                 (d)    Right of Inspection. Upon reasonable advance notice to
          Grantor and at reasonable intervals, or at any time and from time to
          time after the occurrence and during the

                                       12

<PAGE>

          continuance of an Event of Default, the Agent and the Lenders shall
          have reasonable access during normal business hours to all the books,
          correspondence and records of Grantor, and the Agent and the Lenders
          and their respective representatives may examine the same, and to the
          extent reasonable take extracts therefrom and make photocopies
          thereof, and Grantor agrees to render to the Agent and the Lenders, at
          Grantor's reasonable cost and expense, such clerical and other
          assistance as may be reasonably requested with regard thereto. The
          Agent and the Lenders and their respective representatives shall also
          have the right upon reasonable advance notice to Grantor to enter
          during normal business hours into and upon any premises where any of
          Grantor's Inventory or Equipment is located for the purpose of
          inspecting the same, observing its use or otherwise protecting its
          interests therein.

                 (e)    Compliance with Laws, etc. Grantor will comply in all
          material respects with all Applicable Law with respect to the
          Collateral or any part thereof, except to the extent that the failure
          to so comply could not be reasonably expected to have a Material
          Adverse Effect, in the aggregate, on the Agent's or the Lenders'
          rights hereunder, the priority of their Liens on the Collateral or the
          value of the Collateral.

                 (f)    Compliance with Contractual Obligations. Grantor will
          perform and comply in all material respects with all its contractual
          obligations relating to the Collateral, unless (i) such performance or
          compliance is fully excused by breach by the other party or parties
          thereto or (ii) such failure to comply or perform could not be
          reasonably expected, in the aggregate, to have a Material Adverse
          Effect on the value of the Collateral.

                 (g)    Payment of Obligations. Grantor will pay promptly when
          due all taxes, assessments and governmental charges or levies imposed
          upon the Collateral, as well as all claims of any kind (including
          claims for labor, materials and supplies) against or with respect to
          the Collateral, except that no such tax, assessment, charge or levy
          need be paid if (i) the validity thereof is being contested in good
          faith by appropriate proceedings diligently conducted and (ii) such
          tax, assessment, charge or levy is adequately reserved against on
          Grantor's books in accordance with GAAP.

                 (h)    Limitation on Liens on Collateral. Grantor will not
          create, incur or permit to exist, will defend the Collateral against,
          and will take such other action as is reasonably necessary to remove,
          any Lien or material adverse claim on or to any of the Collateral,
          other than the Liens created hereby and other than Permitted Liens,
          and will defend the right, title and interest of the Agent and the
          Lenders in and to any of the Collateral against the claims and demands
          of all Persons whomsoever.

                 (i)    Limitations on Dispositions of Collateral. Without the
          prior written consent of the Agent, Grantor will not sell, assign,
          transfer, exchange or otherwise dispose of, or grant any option with
          respect to, the Collateral, or attempt, offer or contract to do so,
          except with respect to exclusive licenses in the Ordinary Course of
          Business or as permitted by this Agreement or the Credit Documents.

                                       13

<PAGE>

                 (j)    Limitations on Modifications, Waivers, Extensions of
          Contracts, Licenses and Accounts. Grantor will not, except in the
          Ordinary Course of Business, amend, modify, terminate or waive any
          provision of any material Trademark License or any agreement giving
          rise to a material Account constituting Collateral in any manner which
          could reasonably be expected to materially adversely affect the value
          of such Trademark License or Account as Collateral.

                 (k)    Limitations on Discounts, Compromises, Extensions of
          Accounts. At all times, Grantor will not, except in the Ordinary
          Course of Business, grant any extension of the time of payment of any
          material Account constituting Collateral, compromise, compound or
          settle the same for less than the full amount thereof, release, wholly
          or partially, any Person liable for the payment thereof, or allow any
          credit or discount whatsoever thereon, unless such extensions,
          compromises, compoundings, settlements, releases, credits or discounts
          are permitted by the Credit Documents.

                 (l)    Maintenance of Equipment. Grantor will maintain each
          material item of its Equipment in good operating condition, ordinary
          wear and tear and immaterial impairments of value and damage by the
          elements excepted, and will provide all maintenance, service and
          repairs necessary for such purpose, except to the extent that the
          failure to do any of the foregoing could not be reasonably expected to
          have a Material Adverse Effect.

                 (m)    Maintenance of Insurance. Grantor will maintain, with
          financially sound and reputable insurance companies, (i) insurance
          (including property insurance) in at least such amounts and against at
          least such risks (but including in any event public liability, product
          liability and business interruption where reasonably obtainable) as
          are usually insured against in the same general area by companies
          engaged in the same or a similar business; and furnish to the Agent,
          upon written request, information in reasonable detail as to the
          insurance carried and (ii) insurance policies relating to Grantor's
          Inventory and Equipment (A) insuring Grantor's Inventory and Equipment
          against loss by fire, explosion, theft and such other casualties as
          are usually insured against by companies engaged in the same or a
          similar business, (B) insuring Grantor against liability for personal
          injury and property damage relating to such Inventory and Equipment,
          (C) providing that no cancellation, material reduction in amount or
          material change in the coverage referred to in clause (A) shall be
          effective until at least 10 days after receipt by the Agent of written
          notice thereof, (D) naming the Agent and the Lenders as additional
          insured parties and (E) being otherwise reasonably satisfactory in all
          material respects to the Agent.

                 (n)    Further Identification of Collateral. Grantor will
          furnish to the Agent and the Lenders from time to time such statements
          and schedules further identifying and describing the Collateral, and
          such other reports in connection with the Collateral, as the Agent may
          reasonably request, all in reasonable detail.

                                       14

<PAGE>

                 (o)    Notices. Grantor will advise the Agent and the Lenders
          promptly, in reasonable detail, at their respective addresses set
          forth in the Credit Agreement, (i) of any Lien (other than Permitted
          Liens) on, or material adverse claim asserted against, any of the
          Collateral and (ii) of the occurrence of any other event which could
          reasonably be expected, in the aggregate, to have a Material Adverse
          Effect on the aggregate value of the Collateral or the Liens created
          hereunder.

                 (p)    Changes in Locations, Name, etc. Grantor will not (i)
          change the location of its chief executive office/chief place of
          business from that specified in Section 4(f) or remove its books and
          records from the locations specified in Section 4(c), (ii) except as
          permitted pursuant to Section 8.1.1 of the Credit Agreement, permit
          any of the Inventory or the Equipment to be kept at locations other
          than those listed in Schedule III hereto, unless such Inventory or
          Equipment is conveyed, sold, leased, transferred, assigned or
          otherwise disposed of as permitted by Section 10.2.9 of the Credit
          Agreement or (iii) change its name, identity or corporate structure to
          such an extent that any financing statement filed by the Agent in
          connection with this Agreement would become seriously misleading,
          unless Grantor shall have complied with the following: (A) with
          respect to clause (i) and (ii) above, Grantor shall have given the
          Agent prior written notice thereof, (B) with respect to clause (iii)
          above, Grantor (x) shall have given the Agent at least 30 days' prior
          written notice thereof and (y) prior to effecting any such change,
          shall have taken such actions as may be necessary or, upon the
          reasonable request of the Agent, advisable to continue the perfection
          and priority of the Liens granted pursuant hereto; provided in each
          case under clause (B)(y), that the Agent shall have taken all actions
          required by Section 5(a) hereof in connection with such actions of
          Grantor.

                 (q)    Copyrights. Grantor will not own nor at any time in the
          future acquire any right, title or interest in or to any Copyright or
          Copyright License which is material to the business of Grantor and its
          Subsidiaries, taken as a whole, other than (i) with respect to
          Computer Hardware and Software licenses or other Copyright licenses
          granted to Grantor in the Ordinary Course of Business, (ii) in
          connection with any rights of Grantor in respect of security interests
          in collateral or (iii) with respect to which (A) the Agent shall have
          been given prior written notice of the acquisition of any right, title
          or interest therein or thereto and (B) if reasonably requested by the
          Agent, a security agreement reasonably satisfactory to the Agent shall
          have been executed by Grantor.

                 (r)    Commercial Tort Claims. If Grantor shall at any time
          hold or acquire a Commercial Tort Claim, Grantor shall promptly notify
          Agent in a writing signed by Grantor of the brief details thereof and
          grant to Agent in such writing a security interest therein and in the
          proceeds thereof, all upon the terms of this Agreement, with such
          writing to be in form and substance satisfactory to Agent.

          6.     Agent's Appointment as Attorney-in-Fact.

                                       15

<PAGE>

                 (a)    Powers. Grantor hereby irrevocably constitutes and
          appoints the Agent and any officer or agent thereof, with full power
          of substitution, as its true and lawful attorney-in-fact with full
          irrevocable power and authority in the place and stead of Grantor and
          in the name of Grantor or in its own name, from time to time in the
          Agent's discretion, for the purpose of carrying out the terms of this
          Agreement, to take any and all appropriate action and to execute any
          and all documents and instruments which may be necessary or desirable
          to accomplish the purposes of this Agreement, and, without limiting
          the generality of the foregoing, Grantor hereby gives the Agent the
          power and right, on behalf of Grantor, without notice to or assent by
          Grantor, to do the following at any time when any Event of Default
          shall have occurred and be continuing, and to the extent permitted by
          Applicable Law:

                        (i) in the name of Grantor or its own name, or
                 otherwise, to take possession of and indorse and collect any
                 checks, drafts, notes, acceptances or other instruments for the
                 payment of moneys due under any Account, Contract, Instrument
                 or General Intangible (to the extent any of the foregoing
                 constitute Collateral) or with respect to any other Collateral
                 and to file any claim or to take any other action or institute
                 any proceeding in any court of law or equity or otherwise
                 deemed appropriate by the Agent for the purpose of collecting
                 any and all such moneys due under any such Account, Contract,
                 Instrument or General Intangible or with respect to any such
                 other Collateral whenever payable;

                        (ii) to pay or discharge taxes and Liens levied or
                 placed on the Collateral, other than Permitted Liens, to effect
                 any repairs or any insurance required by the terms of this
                 Agreement and to pay all or any part of the premiums therefor
                 and the costs thereof; and

                        (iii) (A) to direct any party liable for any payment
                 with respect to any of the Collateral to make payment of any
                 and all moneys due or to become due thereunder directly to the
                 Agent or as the Agent shall direct; (B) to ask for, or demand,
                 collect, receive payment of and receipt for, any and all
                 moneys, claims and other amounts due or to become due at any
                 time in respect of or arising out of any Collateral; (C) to
                 sign and indorse any invoices, freight or express bills, bills
                 of lading, storage or warehouse receipts, drafts against
                 debtors, assignments, verifications, notices and other
                 documents in connection with any of the Collateral; (D) to
                 commence and prosecute any suits, actions or proceedings at law
                 or in equity in any court of competent jurisdiction to collect
                 the Collateral or any thereof and to enforce any other right in
                 respect of any Collateral; (E) to defend any suit, action or
                 proceeding brought against Grantor with respect to any of the
                 Collateral; (F) to settle, compromise or adjust any suit,
                 action or proceeding described in clause (E) above and, in
                 connection therewith, to give such discharges or releases as
                 the Agent may deem appropriate; (G) subject to any pre-existing
                 rights or licenses, to assign

                                       16

<PAGE>

                 any Patent or Trademark (along with the goodwill of the
                 business to which any such Patent or Trademark pertains), for
                 such term or terms, on such conditions, and in such manner, as
                 the Agent shall in its sole discretion determine; and (H)
                 generally, to sell, transfer, pledge and make any agreement
                 with respect to or otherwise deal with any of the Collateral as
                 fully and completely as though the Agent were the absolute
                 owner thereof for all purposes, and to do, at the Agent's
                 option and Grantor's expense, at any time, or from time to
                 time, all acts and things which the Agent deems necessary to
                 protect, preserve or realize upon the Collateral and the
                 Agent's Liens thereon and to effect the intent of this
                 Agreement, all as fully and effectively as Grantor might do.

          Grantor hereby ratifies all that said attorneys shall lawfully do or
          cause to be done by virtue hereof. This power of attorney is a power
          coupled with an interest and shall be irrevocable until payment in
          full of the Obligations (except for contingent obligations of any
          Obligor under indemnifications that survive termination of the
          Revolver Commitments) and the termination of all the Revolver
          Commitments.

                 (b)    Other Powers. Grantor also authorizes the Agent, from
          time to time if an Event of Default shall have occurred and be
          continuing, to execute, in connection with any sale provided for in
          Section10 hereof, any endorsements, assignments or other instruments
          of conveyance or transfer with respect to the Collateral.

                 (c)    No Duty on the Part of Agent or Lenders. The powers
          conferred on the Agent and the Lenders hereunder are solely to protect
          the Agent's and the Lenders' interests in the Collateral and shall not
          impose any duty upon the Agent or any Lender to exercise any such
          powers. The Agent and the Lenders shall be accountable only for
          amounts that they actually receive as a result of the exercise of such
          powers, and neither they nor any of their officers, directors,
          employees or agents shall be responsible to Grantor for any act or
          failure to act hereunder, except for their own gross negligence or
          willful misconduct.

          7.     Performance by Agent of Grantor's Obligations. If Grantor fails
to perform or comply with any of its agreements contained herein and the Agent,
as provided for by the terms of this Agreement, shall itself perform or comply,
or otherwise cause performance or compliance, with such agreement, the
reasonable expenses of the Agent incurred in connection with such performance or
compliance, together with interest thereon at the Default Rate shall be payable
by Grantor to the Agent on demand and shall constitute Obligations secured
hereby.

          8.     Proceeds. It is agreed that if an Event of Default shall occur
and be continuing, (a) all Proceeds of any Collateral received by Grantor
consisting of cash, checks and other near-cash items shall be held by Grantor in
trust for the Agent and the Lenders, segregated from other funds of Grantor, and
at the request of the Agent shall, forthwith upon receipt by Grantor, be turned
over to the Agent in the exact form received by Grantor (duly indorsed by
Grantor to the Agent, if required by the

                                       17

<PAGE>

Agent), and (b) any and all such Proceeds received by the Agent (whether from
Grantor or otherwise) may, in the sole discretion of the Agent, be held by the
Agent, as collateral security for the Obligations (whether matured or
unmatured), and then or at any time thereafter may be applied by the Agent
against, the Obligations then due and owing. Any balance of such Proceeds
remaining after the payment in full of the Obligations (except for contingent
obligations of any Obligor under indemnifications that survive termination of
the Revolver Commitments) and the termination of all the Revolver Commitments,
shall be paid over to Grantor or to whomsoever may be lawfully entitled to
receive the same.

          9.     Events of Default. It is understood and agreed that an event of
default shall be deemed to have occurred under this Agreement, and Agent shall
be entitled to take such actions as are elsewhere provided herein, in the event
that an Event of Default under and (as defined in) the Credit Agreement or any
of the other Credit Documents shall have occurred.

          10.    Remedies. If an Event of Default shall occur and be continuing,
the Agent may (and upon written instructions to do so from the Required Lenders,
shall) exercise all rights and remedies of a secured party under the UCC,
together with every right and remedy available to Agent, under any other
Applicable Law, and, to the extent permitted by Applicable Law, all other rights
and remedies granted to them in this Agreement and in any other instrument or
agreement securing, evidencing or relating to the Obligations. Without limiting
the generality of the foregoing, the Agent, without demand of performance or
other demand, presentment, protest, advertisement or notice of any kind (except
any notice required by law referred to below) to or upon Grantor or any other
Person (all and each of which demands, defenses, advertisements and notices are
hereby waived), may (and upon written instructions to do so from the Required
Lenders, shall) in such circumstances, to the extent permitted by Applicable
Law, forthwith collect, receive, appropriate and realize upon the Collateral, or
any part thereof, and may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), whether on Grantor's premises
or elsewhere, but subject to any pre-existing rights or licenses, in one or more
parcels at public or private sale or sales, at any exchange, broker's board or
office of the Agent or any Lender or elsewhere upon such terms and conditions as
it may deem advisable and at such prices as it may deem best, for cash or on
credit or for future delivery without assumption of any credit risk. The Agent
or any Lender shall have the right, to the extent permitted by Applicable Law,
upon any such sale or sales, to purchase the whole or any part of the Collateral
so sold, free of any right or equity of redemption in Grantor, which right or
equity is hereby waived or released. Grantor further agrees, at the Agent's
request, upon the occurrence and during the continuance of an Event of Default,
to assemble the Collateral and make it available to the Agent at places which
the Agent shall reasonably select, whether at Grantor's premises or elsewhere.
Alternatively, Agent may peaceably by its own means or with judicial assistance
enter Grantor's premises and take possession of the Collateral or dispose of the
Collateral on Grantor's premises without resistance or interference by Grantor.
The Agent shall apply the net proceeds of any such collection, recovery,
receipt, appropriation, realization or sale, after deducting all reasonable
costs and expenses of every kind incurred therein or incidental to the care or
safekeeping of any of the Collateral or in any way relating to the Collateral or
the rights of the Agent and the Lenders

                                       18

<PAGE>

hereunder, including reasonable attorneys' fees and disbursements, to the
payment in whole or in part of the Obligations then due and owing, and only
after such application and after the payment by the Agent of any other amount
required by any provision of Applicable Law, need the Agent account for the
surplus, if any, to Grantor. To the extent permitted by Applicable Law, Grantor
waives all claims, damages and demands it may acquire against the Agent or any
Lender arising out of the repossession, retention or sale of the Collateral,
other than any such claims, damages and demands that may arise from the gross
negligence or willful misconduct of any of them. If any notice of a proposed
sale or other disposition of Collateral shall be required by law, such notice
shall be deemed reasonable and proper if given at least 10 days before such sale
or other disposition. Grantor shall remain liable for any deficiency if the
proceeds of any sale or other disposition of the Collateral are insufficient to
pay the then outstanding Obligations, including the reasonable fees and
disbursements of any attorneys employed by the Agent or any Lender to collect
such deficiency.

          11.    Limitation on Duties Regarding Preservation of Collateral. The
Agent's sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession, under Section 9-207 of the UCC
or otherwise, shall be to deal with it in the same manner as the Agent deals
with similar property for its own account. Except as provided in the foregoing
sentence or elsewhere herein or in any other Credit Document, neither the Agent
nor any Lender shall be liable or responsible to Grantor in any way for the
safeguarding of any of the Collateral, for any loss or damage thereto, for any
diminution in the value thereof, or for any act or default of any carrier,
warehouseman, forwarding agency, or other person whomsoever, but the same shall
be at all times at Grantor's risk.

          12.    Waivers. In addition to the other waivers contained herein and
in any other Credit Document, Grantor hereby expressly waives, to the extent
permitted by Applicable Law: demand, protest, notice of protest, notice of
default or dishonor, notice of payments and nonpayments, or of any default,
release, compromise, settlement, extension or renewal of all commercial paper,
instruments or guaranties at any time held by Agent or any of the Lenders on
which Grantor may in any way be liable; notice or hearing in connection with,
and the requirement to post a bond as a condition to, the issuance of an
immediate writ of possession with respect to any of the Collateral; any
requirement that the Agent or any of the Lenders protect, secure, perfect or
insure any Lien or any property subject thereto or exhaust any right or take any
action against any Obligor or any other Person or any Collateral, including any
rights any Obligor may otherwise have under the New York General Obligations
Law; and notice of any action taken by the Agent, in each case unless expressly
required by this Agreement, any other Credit Document or by Applicable Law.

          13.    Powers Coupled with an Interest. All authorizations and
agencies herein contained with respect to the Collateral are powers coupled with
an interest and are irrevocable until payment in full of the Obligations (except
for contingent obligations of any Obligor under indemnifications that survive
termination of the Revolver Commitments) and the termination of all Revolver
Commitments.

          14.    Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or

                                       19

<PAGE>

unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

          15.    Section Headings. The section headings used in this Agreement
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

          16.    No Waiver; Cumulative Remedies. Neither the Agent nor any
Lender shall by any act (except by a written instrument pursuant to Section 17
hereof), delay, indulgence, omission or otherwise be deemed to have waived any
right or remedy hereunder or to have acquiesced in any Default or Event of
Default or in any breach of any of the terms and conditions hereof. No failure
to exercise, nor any delay in exercising, on the part of the Agent or any
Lender, any right, power or privilege hereunder shall operate as a waiver
thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Agent or any Lender of
any right or remedy hereunder on any one occasion shall not be construed as a
bar to any right or remedy which the Agent or such Lender would otherwise have
on any future occasion. The rights and remedies herein provided are cumulative,
may be exercised singly or concurrently and are not exclusive of any rights or
remedies provided by law.

          17.    Amendments in Writing; No Waiver; Cumulative Remedies;
Successors and Assigns. None of the terms or provisions of this Agreement may be
waived, amended, supplemented or otherwise modified except by a written
instrument executed by Grantor and the Agent. This Agreement shall be binding
upon the successors and assigns of Grantor and shall inure to the benefit of the
Agent and the Lenders and their respective successors and assigns, except that
Grantor may not assign, transfer or delegate any of its rights or obligations
under this Agreement without the prior written consent of the Agent.

          18.    Notices. All notices, requests and demands to or upon the
respective parties hereto shall be made in accordance with Section 15.9 of the
Credit Agreement, and if to Grantor shall be sent to:

                        RBC Holding, Inc.
                         c/o Remington Arms Company, Inc.
                        870 Remington Drive
                        Madison, North Carolina 27025
                        Attention:  Mr.Mark Little, VP, Chief Financial Officer
                        Telecopy No.: (336)548-7779

                                       20

<PAGE>

                        With a copy to:

                        Clayton, Dubilier & Rice, Inc.
                        375 Park Avenue
                        New York, New York 10152
                        Attention:  Mr.Michael Babiarz
                        Telecopy No.: (212)893-7050

                        and

                        Debevoise & Plimption
                        919 Third Avenue
                        New York, New York 10022
                        Attention: William B. Beekman, Esq.
                        Telecopy No.:(212)909-6836

          19.    Authority of Agent. Grantor acknowledges that the rights and
responsibilities of the Agent under this Agreement with respect to any action
taken by the Agent or the exercise or non-exercise by the Agent of any option,
voting right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Agreement shall, as among the Agent and the
Lenders, be governed by the Credit Documents and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Agent and Grantor, the Agent shall be conclusively presumed to be acting as
agent for the Lenders with full and valid authority so to act or refrain from
acting, and Grantor shall not be under any obligation to make any inquiry
respecting such authority.

          20.    GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING
EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF, OTHER THAN SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW); PROVIDED, HOWEVER, THAT IF ANY COLLATERAL
SHALL BE LOCATED IN ANY JURISDICTION OTHER THAN NEW YORK, THE LAWS OF SUCH
JURISDICTION SHALL GOVERN THE METHOD, MANNER AND PROCEDURE FOR FORECLOSURE OF
AGENT'S LIEN UPON COLLATERAL AND THE ENFORCEMENT OF AGENT'S OTHER REMEDIES OF
COLLATERAL TO THE EXTENT THAT THE LAWS OF SUCH JURISDICTION ARE DIFFERENT FROM
OR INCONSISTENT WITH THE LAWS OF THE STATE OF NEW YORK. NOTWITHSTANDING THE
FOREGOING PROVISION FOR THE NOTICE AND SALE OF COLLATERAL UNDER THE LAW OF THE
SITUS, IT IS THE PARTIES' INTENTION THAT NEW YORK LAW CONTROL THE OBLIGATIONS OF
GRANTOR UNDER THE CREDIT DOCUMENTS AND THE ENFORCEMENT OF THE SAME SUCH THAT,
FOR EXAMPLE, GRANTOR AGREES AND ACKNOWLEDGES THAT PURSUANT TO NEW YORK LAW
GRANTOR SHALL BE LIABLE FOR A DEFICIENCY JUDGMENT NOTWITHSTANDING THE SALE OF
REAL PROPERTY COLLATERAL UNDER A POWER OF SALE AND FURTHER

                                       21

<PAGE>

THAT LENDERS OR AGENT MAY, AT THEIR ELECTION, SEEK A MONEY JUDGMENT UNDER THE
CREDIT DOCUMENTS WITHOUT FIRST EXHAUSTING ALL COLLATERAL SECURING THE
OBLIGATIONS THEREUNDER.

          21.    Release of Collateral and Termination.

                 (a)    At such time as the payment in full of the Obligations
          (except for contingent obligations of any Obligor under
          indemnifications that survive termination of the Revolver Commitments)
          and the termination of all Revolver Commitments shall have occurred,
          the Collateral shall be released from the Liens created hereby, and
          this Agreement and all obligations (other than those expressly stated
          to survive such termination) of the Agent and Grantor hereunder shall
          terminate, all without delivery of any instrument or performance of
          any act by any party, and all rights to the Collateral shall revert to
          Grantor. Upon request of Grantor following any such termination, the
          Agent shall deliver (at the sole cost and expense of Grantor) to
          Grantor any Collateral held by the Agent hereunder, and execute and
          deliver (at the sole cost and expense of Grantor) to Grantor such
          documents as Grantor shall reasonably request to evidence such
          termination.

                 (b)    If any of the Collateral shall be sold, transferred or
          otherwise disposed of by Grantor in a transaction permitted by the
          Credit Agreement, then the Agent shall execute and deliver to Grantor
          (at the sole cost and expense of Grantor) all releases or other
          documents reasonably necessary or desirable for the release of the
          Liens created hereby on such Collateral.

                                       22

<PAGE>

          IN WITNESS WHEREOF, Grantor has caused this Agreement to be duly
executed and delivered as of the date first above written.

                                RBC HOLDING, INC.

                                By: /s/ Mark Little
                                   ------------------------------------

                                Name:   Mark Little
                                     ----------------------------------
                                Title:  Vice President
                                      ---------------------------------

                                       23

<PAGE>

                                ACKNOWLEDGED AND AGREED AS OF THE
                                DATE HEREOF BY:

                                WACHOVIA BANK, NATIONAL ASSOCIATION,
                                as Agent

                                By: /s/ Brian R. O'Fallon
                                   ------------------------------------
                                Name:   Brian R. O'Fallon
                                     ----------------------------------
                                Title:  Director
                                      ---------------------------------

                                       24

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