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                                                                    EXHIBIT 10.4
                                                                    ------------
                                                                    CONFIDENTIAL

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT
                    -----------------------------------------

         THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT is entered into as of
and is effective as of October 8, 1998, between ADVANCED LIGHTING TECHNOLOGIES,
INC., an Ohio corporation (the "Corporation" or "Advanced Lighting"), and WAYNE
R. HELLMAN ("Hellman").
                                   WITNESSETH:

         WHEREAS, Hellman and Advanced Lighting entered into an Employment
Agreement dated October 6, 1995 (the "Original Employment Agreement");

         WHEREAS, since the date of the Original Employment Agreement, Hellman
has served as the Chief Executive Officer, Chairman of the Board and President
of Advanced Lighting;

         WHEREAS, the Board of Directors, in recognition of the importance of
Hellman's continued and undistracted leadership to the future of the
Corporation, has authorized a loan to Hellman in the amount of $9,000,000, which
requires that Hellman extend the terms of the Original Employment Agreement for
an additional five (5) year term;

         WHEREAS, in connection with the ADLT Loan, Advanced Lighting and
Hellman desire to enter into this Amended and Restated Employment Agreement to
ensure Advanced Lighting of the services of Hellman as Chief Executive Officer,
Chairman of the Board and President, and to set forth the rights and duties of
the parties hereto.


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         NOW, THEREFORE, in consideration of the mutual promises herein
contained, the parties agree as follows:

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1.       EMPLOYMENT.
         (a)      Advanced Lighting hereby employs Hellman, and Hellman hereby
                  accepts employment, upon the terms and conditions hereinafter
                  set forth.
         (b)      During the term of this Employment Agreement, (for purposes
                  hereof, all references to the term of this Employment
                  Agreement shall be deemed to include all renewals or
                  extensions hereof, if any), Hellman shall devote his full-time
                  and best efforts to his employment and shall perform
                  diligently such duties as are, or may be, required by the
                  board of directors of Advanced Lighting (the "Board") within
                  the bounds of reasonableness and acceptable business standards
                  and ethics.
         (c)      During the term of this Employment Agreement, Hellman shall
                  not, without the prior written consent of the Board, directly
                  or indirectly, render services of a business, professional or
                  commercial nature to any other person or firm, whether for
                  compensation or otherwise, other than in the performance of
                  duties naturally inherent in the businesses of Advanced
                  Lighting or any subsidiary of Advanced Lighting.

2.       TERM AND POSITION.
         (a)      Subject to the termination provisions contained herein, the
                  term of this Employment Agreement shall commence as of January
                  1, 1996 and shall continue for a term of eight (8) years from
                  such date.

         (b)      Hellman shall serve as President and Chief Executive Officer
                  of Advanced Lighting, and in such substitute or further
                  offices or positions with Advanced Lighting as shall be
                  assigned by the Board, without, however, any change in
                  Hellman's compensation 

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                  (but such substitute or further offices or positions shall
                  be consistent with the office and position of President and
                  Chief Executive Officer).

3.       COMPENSATION.
         (a)      Subject to the provisions of this Employment Agreement, for
                  all services which Hellman may render to Advanced Lighting
                  during the term of this Employment Agreement and ending on the
                  last day of Advanced Lighting's fiscal year during which the
                  term of this Employment Agreement began, Hellman shall receive
                  a salary at the rate of One Hundred Ninety-Five Thousand
                  Dollars ($195,000.00) per annum, payable in equal, consecutive
                  biweekly installments.

         (b)      Provided that Hellman has satisfactorily performed his
                  services under this Employment Agreement, Hellman shall be
                  entitled to salary increases from time to time as determined
                  by the Compensation Committee of Advanced Lighting.

         (c)      Provided that Hellman has satisfactorily performed his
                  services under this Employment Agreement, Hellman shall be
                  entitled to annual bonuses from time to time as determined by
                  the Compensation Committee of Advanced Lighting.

4.       OTHER BENEFITS.

         During the term of this Employment Agreement, Hellman shall be entitled
to such vacation privileges, medical reimbursement and hospitalization benefits,
split dollar insurance and such other employment benefits Hellman currently
receives from the Company or any of its affiliates from time to time.

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5.       TERMINATION AND FURTHER COMPENSATION.

(a)               The employment of Hellman under this Employment Agreement, for
                  the term thereof, may be terminated by Advanced Lighting for
                  cause at any time by action of the Board. For purposes hereof,
                  the term "cause" shall mean: 

                    (i)       Hellman's fraud, dishonesty, willful misconduct,
                              moral turpitude or gross negligence in the
                              performance of his duties hereunder; or

                    (ii)      Hellman's material breach of any provision of this
                              Employment Agreement. 

Any termination by reason of the foregoing shall not be in limitation of any
other right or remedy Advanced Lighting may have under this Employment Agreement
or otherwise.

         (b)      In the event of (i) termination of this Employment Agreement
                  for any of the reasons set forth in Subparagraph (a) of this
                  Paragraph 5, Hellman shall be entitled to no further salary,
                  bonus or other benefits under this Employment Agreement,
                  except as to that portion of any unpaid salary and other
                  benefits accrued and earned by him hereunder up to and
                  including the effective date of such termination.

         (c)      In the event of Hellman's death or permanent disability (as
                  defined herein below) occurring during the term of this
                  Employment Agreement, this Employment Agreement shall be
                  deemed terminated and Hellman or his estate, as the case may
                  be, shall be entitled to no further salary or other
                  compensation provided for herein except as to that portion of
                  any unpaid salary accrued or earned by Hellman hereunder up to
                  and including the date of death or disability, and any
                  benefits under any insurance policies or other plans.

         (d)      Permanent disability means the inability of Hellman to perform
                  satisfactorily his usual or customary occupation for a period
                  of one hundred twenty (120) days in the 

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                    aggregate out of one hundred fifty (150) consecutive days as
                    a result of a physical or mental illness or other
                    disability, which, in the written opinion of a physician
                    resident in Ohio of recognized ability and reputation
                    selected by Advanced Lighting, is likely to continue for a
                    significant period of time.

6.       RENEWAL.

         Not later than six (6) months prior to the termination of this
Agreement, Advanced Lighting shall be entitled to notify Hellman whether it
desires to renew this Employment Agreement with Hellman for an additional period
of three (3) years, which notice, if given, shall contain the compensation and
other benefits proposed to be paid and provided to Hellman by Advanced Lighting.
For a period of thirty (30) days after receipt of such notice, Hellman shall
have the option to accept such offer of renewal or, in the alternative, shall be
entitled to consult with Advanced Lighting with respect to different
compensation and/or benefits to be paid and provided to Hellman by Advanced
Lighting during said renewal period of employment. If at the end of said thirty
(30) day period Hellman and Advanced Lighting are unable to agree, then this
Employment Agreement shall not be renewed at the end of the term thereof, unless
otherwise agreed to by the parties. In the event, however, that Advanced
Lighting does not timely notify Hellman of its desire to renew this Employment
Agreement, then this Employment Agreement shall not be renewed at the end of the
term thereof, unless otherwise agreed upon by the parties.

 7.       REIMBURSEMENT.

         Advanced Lighting shall reimburse Hellman during the term of this
Employment Agreement for travel, entertainment and other expenses reasonably and
necessarily incurred by Hellman in the promotion of Advanced Lighting's
business.

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 8.       COVENANTS REGARDING NONCOMPETITION AND CONFIDENTIAL INFORMATION.

          (a)     Hellman agrees during the term of this Employment Agreement
                  and for a period of two (2) years thereafter he will not,
                  directly or indirectly, do or suffer any of the following:

                    (i)       Own, manage, control or participate in the
                              ownership, management, or control of, or be
                              employed or engaged by or otherwise affiliated or
                              associated as a consultant, independent contractor
                              or otherwise with any business of the type and
                              character of or in competition with the business
                              carried on by Advanced Lighting (as conducted on
                              the date Hellman ceases to be employed by Advanced
                              Lighting in any capacity) or its affiliates;
                              provided, however, that the ownership of not more
                              than one percent (1%) of the stock of any publicly
                              traded corporation shall not be deemed a violation
                              of this covenant;

                    (ii)      Employ, assist in employing, or otherwise
                              associate in business with any present or former
                              or future employee, officer or agent of Advanced
                              Lighting or its affiliates;

                    (iii)     Induce any person who is an employee, officer or
                              agent of Advanced Lighting or its affiliates to
                              terminate said relationship;

                    (iv)      Disclose, divulge, discuss, copy or otherwise use
                              or suffer to be used in any manner, in competition
                              with, or contrary to the interests of Advanced
                              Lighting or its affiliates, the customer lists,
                              manufacturing methods, product research or
                              engineering data or other trade secrets of
                              Advanced Lighting or its affiliates, it being
                              acknowledged by Hellman that all such information
                              regarding the business of Advanced Lighting or its
                              affiliates developed,

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                       compiled or obtained by, or furnished to, Hellman while
                       Hellman shall have been employed by or associated with
                       Advanced Lighting or its affiliates is confidential
                       information and Advanced Lighting's or its affiliates'
                       exclusive property.

          (b)       Hellman expressly agrees and understands that the remedy at
                    law for any breach by him of this Paragraph 8 will be
                    inadequate and that the damages flowing from such breach are
                    not readily susceptible to being measured in monetary terms.
                    Accordingly, it is acknowledged that upon adequate proof of
                    Hellman's violation of any legally enforceable provision of
                    this Paragraph 8, Advanced Lighting shall be entitled to
                    immediate injunctive relief and may obtain a temporary order
                    restraining any threatened or further breach. Nothing in
                    this Paragraph 8 shall be deemed to limit Advanced
                    Lighting's remedies at law or in equity for any breach by
                    Hellman of any of the provisions of this Paragraph 8 which
                    may be pursued or availed of by Advanced Lighting.

          (c)       In the event Hellman shall violate any legally enforceable
                    provision of this Paragraph 8 as to which there is a
                    specific time period during which he is prohibited from
                    taking certain actions or from engaging in certain
                    activities as set forth in such provision then, in such
                    event, such violation shall toll the running of such time
                    period from the date of such violation until such violation
                    shall cease.
 
9.       SEVERABLE PROVISIONS.



            The provisions of this Employment Agreement are severable and if any
one or more provisions may be determined to be illegal or otherwise
unenforceable, in whole or in part, the

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remaining provisions and any partially unenforceable provision to the extent
enforceable in any jurisdiction shall, nevertheless, be binding and enforceable.

 10.      BINDING AGREEMENT.

         The rights and obligations of Advanced Lighting under this Employment
Agreement shall inure to the benefit of, and shall be binding upon, Advanced
Lighting and its successors and assigns, and the rights and obligations of
Hellman under this Employment Agreement shall inure to the benefit of, and shall
be binding upon, Hellman and his heirs, personal representatives and estate
except as otherwise provided herein.

 11.      ARBITRATION.

         Any controversy or claim arising out of or relating to this Employment
Agreement, or the breach thereof, shall be settled by arbitration in accordance
with the Rules of the American Arbitration Association then pertaining in the
City of Cleveland, Ohio, and judgment upon the award rendered by the Arbitrator
or Arbitrators may be entered in any court having jurisdiction thereof. The
Arbitrator or Arbitrators shall be deemed to possess the powers to issue
mandatory orders and restraining orders in connection with such arbitration;
provided, however, that nothing in this Paragraph 11 shall be construed so as to
deny Advanced Lighting the right and power to seek and obtain injunctive relief
in a court of equity for any breach or threatened breach of Hellman of any of
his covenants contained in Subparagraph (a) of Paragraph 8 hereof.

 12.      NOTICES.


         Any Notice to be given under this Employment Agreement shall be
personally delivered in writing or shall have been deemed duly given when
received after it is posted in the United States mails, postage prepaid,
registered or certified, return receipt requested, and if mailed to Advanced
Lighting, shall be addressed to its principal place of business, Attention:
Louis S. Fisi, and if mailed 

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to Hellman, shall be addressed to Hellman at his home address last known on the
records of Advanced Lighting, or at such other address or addresses as either
Advanced Lighting or Hellman may hereafter designate in writing to the other.

13.      WAIVER.

         The failure of either party to enforce any provision or provisions of
this Employment Agreement shall not in any way be construed as a waiver of any
such provision or provisions as to any future violations thereof, nor prevent
that party thereafter from enforcing each and every other provision of this
Employment Agreement. The rights granted the parties herein are cumulative and
the waiver of any single remedy shall not constitute a waiver of such party's
right to assert all other legal remedies available to it under the
circumstances.

 13.      ENTIRE AGREEMENT.

         This Agreement contains the entire agreement between the parties hereto
and supersedes all prior agreements and understandings between the parties. This
Agreement may not be modified or terminated orally. No modification, termination
or attempted waiver shall be valid unless in writing and signed by the party
against whom the same it is sought to be enforced.

15.      GOVERNING LAW.

         This Employment Agreement shall be governed by and construed according
to the laws of the State of Ohio.

 14.      BOARD APPROVAL.

         Notwithstanding any provision of this Employment Agreement to the
contrary, this Employment Agreement shall not become effective for any purpose
unless and until shall have been approved by the Board at a meeting duly held or
by the Directors' unanimous written consent in lieu of such meeting, which
action shall be considered by the Board within ninety (90) days hereof.

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 15.      CAPTIONS AND PARAGRAPH HEADINGS.

         Captions and paragraph headings used herein are for convenience and are
not a part of this Employment Agreement and shall not be used in construing it.

 16.      MISCELLANEOUS.

         Where necessary or appropriate to the meaning hereof, the singular and
plural shall be deemed to include each other, and the masculine feminine and
neuter shall be deemed to include each other.

         IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Employment Agreement on the day and year first set forth above.

ATTEST:                                    ADVANCED LIGHTING TECHNOLOGIES, INC.



 /S/ Nicholas R. Sucic                     By:   /S/ Louis S. Fisi
-----------------------------                 --------------------------------
Name:  Nicholas R. Sucic                   Name:    Louis S. Fisi
                                                -------------------------------
/s/ Rick Barone                            Its: Executive Vice President
-----------------------------                  ---------------------------------
Name:  Rick Barone

ATTEST:

 /s/ Nicholas R. Sucic                       By: /s/ Wayne R. Hellman
-----------------------------                  --------------------------------
Name: Nicholas R. Sucic                           Wayne  R.  Hellman

 /s/ Rick Barone
----------------------------
Name: Rick Barone

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