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Exhibit 10.5  


 
 

AMENDED AND RESTATED
  EMPLOYMENT AGREEMENT    
    


        THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of the 1st day of January, 2004, by and between Rayovac Corporation, a
Wisconsin corporation (the "Company"), and Lester Lee (the "Executive"). 


        WHEREAS,
the Executive has been employed by the Company and its Remington Products Company, L.L.C. subsidiary ("Remington") as President, Remington North America pursuant to an
Employment Agreement between the Executive and the Company dated October 7, 2003 ("Previous Rayovac Agreement") and a Change of Control Agreement between Executive and Remington dated
September 20, 2000 ("Remington Change of Control Agreement"); and 



        WHEREAS,
the Company desires to amend and restate the Previous Rayovac Agreement and terminate and cancel the Remington Change of Control Agreement and to employ the Executive upon the
terms and conditions set forth herein and the Executive is willing and able to accept such employment on such terms and conditions. 


        NOW,
THEREFORE, in consideration of the premises and mutual agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Executive hereby agree as follows: 


	1.
	Employment Duties and Acceptance. The Company hereby employs the Executive, and the Executive agrees to serve and accept employment with
the Company as its President, North America. The Executive shall be based in Madison, Wisconsin, shall be a member of the Company's executive committee and shall report to the Chairman and Chief
Executive Officer. During the Term (as defined below), the Executive shall devote all of his working time to such employment and appointment, shall devote his best efforts to advance the interests of
the Company and shall not engage in any other business activities, as an employee, director, consultant or in any other capacity, whether or not he receives any compensation therefor, without the
prior written consent of the Board of Directors of the Company (the "Board"). Notwithstanding the foregoing, consent is not required for activities established prior to the date hereof.



	2.
	Term of Employment. Subject to Section 4 hereof, the Executive's employment and appointment hereunder shall be for a term
commencing on January 1, 2004 and expiring on December 31, 2006 (the "Term").



	3.
	Compensation. In consideration of the performance by the Executive of his duties hereunder, the Company shall pay or provide to the
Executive the following compensation, which the Executive agrees to accept in full satisfaction for his services, it being understood that necessary withholding taxes, FICA contributions and the like
shall be deducted from such compensation:



	(a)
	Initial Consideration. In consideration for Executive waiving rights under the Remington Change of Control Agreement and entering into
this Agreement, the Company will make a one-time, non-elective contribution to the Company's Deferred Compensation Plan on Executive's behalf in the amount of Seven Hundred
Forty Five Thousand Dollars ($745,000). Executive shall also retain all rights to Restricted Stock he had been granted in the Company pursuant to the Previous Rayovac Agreement.



	(b)
	Base Salary. The Executive shall receive a base salary equal to an amount no less than Three Hundred Seventy-Five Thousand
dollars ($375,000) per annum effective January 1, 2004 for the duration of the Term ("Base Salary"), which Base Salary shall be paid in equal semi-monthly installments. The Board
will review from time to time the Base Salary payable to the Executive hereunder and may, in its discretion, increase the Executive's Base Salary.



	(c)
	Bonus. The Executive shall be entitled to receive the bonus that would have been due as an employee of Remington for calendar year
2003, if and when such bonus would have been due 








 


under
the Remington bonus plan, including the Super Performance provisions as amended August 28, 2003. The Executive shall also receive a bonus for each fiscal year ending during the Term,
payable annually in arrears, which shall be based on seventy-five percent (75%) of Base Salary, provided the Company achieves certain annual performance goals established by the Board from
time to time (the "Bonus"). The Executive shall be entitled to receive only seventy-five percent (75%) of any Bonus earned during the Company's fiscal year ending September 30,
2004. 



	(d)
	Insurance Coverage and Benefit Plans. The Executive shall be entitled to such insurance and all other benefits as are generally made
available by the Company to its executive officers from time to time, including participation in the company's Comprehensive Medical Plan, Dental Insurance Plan, Long Term Disability Plan, Business
Travel Accident Plan, Profit Sharing and Savings Plan (401(k)), Executive Deferred Compensation and life insurance programs, and Supplemental Employment Retirement Plan (with the first contribution to
such Supplemental Employment Retirement Plan to be made October 1, 2004).



	(e)
	Residence: The Company will provide Executive a suitable residence for Executive in the Madison, WI area during the Term of this
Agreement. Executive will furnish the residence at his expense and he will be responsible for day-to-day costs associated with use of such residence, such as utilities, general
maintenance, lawn care/snow removal. Executive's right to use the residence shall cease upon termination of his employment with the Company, regardless of reason for such termination.



	(f)
	Vacation. The Executive shall be entitled to four (4) weeks vacation each year.



	(g)
	Expenses. The Executive shall be entitled to reimbursement of all reasonable and documented expenses actually incurred or paid by the
Executive in the performance of the Executive's duties under this Agreement, upon presentation of expense statements, vouchers or other supporting information in accordance with Company policy.



	(h)
	Vehicle. The Executive shall be provided with the use of a leased vehicle in accordance with the terms and conditions of the Company's
executive leased vehicle policy.






	4.
	Termination.



	(a)
	Termination by the Company with Cause. The Company shall have the right at any time to terminate the Executive's employment hereunder
without prior notice upon the occurrence of any of the following (any such termination being referred to as a termination for "Cause"):



	(i)
	the
commission by the Executive of any deliberate and premeditated acts taken by the Executive in bad faith against the interests of the Company;



	(ii)
	the
Executive has been convicted of, or pleads nolo contendere with respect to, any felony, or of any lesser crime or
offense having as its predicate element fraud, dishonesty or misappropriation of the property of the Company;



	(iii)
	the
habitual drug addiction or intoxication of the Executive, which negatively impacts his job performance, or the Executive's failure of a Company-required drug test;



	(iv)
	the
willful failure or refusal of the Executive to perform his duties as set forth herein or the willful failure or refusal to follow the direction of the President,
the CEO or the Board, provided such failure or refusal continues after thirty (30) days of the receipt of notice in writing from the President, the CEO or the Board of such failure or refusal,
which notice refers to this Section 4(a) and indicates the Company's intention to terminate the Executive's employment hereunder if such failure or refusal is not remedied within such thirty
(30) day period; or 








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	(v)
	the
Executive breaches any of the terms of this Agreement or any other agreement between the Executive and the Company which breach is not cured within thirty
(30) days subsequent to notice from the Company to the Executive of such breach, which notice refers to this Section 4(a) and indicates the Company's intention to terminate the
Executive's employment hereunder if such breach is not cured within such thirty (30) day period. 








If
the definition of termination for "Cause" set forth above conflicts with such definition in any other agreements between the parties, the definition set forth herein shall control. 



	(b)
	Termination by Company for Death or Disability. The Company shall have the right at any time to terminate the Executive's employment
hereunder upon thirty (30) days prior written notice upon the Executive's inability to perform his duties hereunder by reason of any mental, physical or other disability for a period of at
least six (6) consecutive months (for purposes hereof, "disability" has the same meaning as in the Company's disability policy), if within 30 days after such notice of termination is
given, the Executive shall not have returned to the full-time performance of his duties. The Company's obligations hereunder shall, subject to the provisions of Section 5(b), also
terminate upon the death of the Executive.



	(c)
	Termination by Company without Cause. The Company shall have the right at any time to terminate the Executive's employment for any
other reason without Cause upon sixty (60) days prior written notice to the Executive.



	(d)
	Voluntary Termination by Executive. The Executive shall be entitled to terminate his employment and appointment hereunder upon sixty
(60) days prior written notice to the Company. Any such termination shall be treated as a termination by the Company for "Cause" under Section 5.



	(e)
	Notice of Termination. Any termination by the Company for Cause shall be communicated by Notice of Termination to the other party
hereto given in accordance with Section 8. For purposes of this Agreement, a "Notice of Termination" means a written notice given prior to the termination which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated and (iii) if the termination date is other than the date of receipt of such notice, specifies the termination date of this Agreement (which date
shall be not more than fifteen (15) days after the giving of such notice). The failure by the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a
showing of Cause shall not waive any right of the Company hereunder or preclude the Company from asserting such fact or circumstance in enforcing its rights hereunder.






	5.
	Effect of Termination of Employment.



	(a)
	With Cause. If the Executive's employment is terminated with Cause, the Executive's salary and other benefits specified in
Section 3 shall cease at the time of such termination, and the Executive shall not be entitled to any compensation specified in Section 3 which was not required to be paid prior to such
termination; provided, however, that the Executive shall be entitled to continue to participate in the Company's medical benefit plans to the extent required by law.



	(b)
	Without Cause, Death or Disability. If the Executive's employment is terminated by the Company without Cause or by reason of death or
disability, then the Company shall pay the Executive the amounts and provide the Executive the benefits as follows:



	(i)
	The
Company shall pay to the Executive as severance, an amount in cash equal to double the sum of (i) the Executive's Base Salary, and (ii) the annual
Bonus (if any) earned by 








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the
Executive pursuant to any annual bonus or incentive plan maintained by the Company in respect of the fiscal year ending immediately prior to the fiscal year in which the termination occurs, such
cash amount to be paid to the Executive ratably monthly in arrears over the Non-Competition Period (as defined below). 



	(ii)
	For
the greater of (i) the 24-month period immediately following such termination or (ii) the remainder of the Term, the Company shall arrange
to provide the Executive and his dependents the additional benefits specified in Section 3(c). Benefits otherwise receivable by the Executive pursuant to this
Section 5(b)(ii) shall cease immediately upon the discovery by the Company of the Executive's breach of the covenants contained in Section 6 or 7 hereof.



	(iii)
	The
Executive's accrued vacation (determined in accordance with Company policy) at the time of termination shall be paid as soon as reasonably practicable.



	(iv)
	Any
payments provided for hereunder shall be paid net of any applicable withholding required under federal, state, or local law and any additional withholding to which
the Executive has agreed.



	(v)
	If
the Executive's employment with the Company terminates during the Term, the Executive shall not be required to seek other employment or to attempt in any way to
reduce any amounts payable to the Executive by the Company pursuant to this Section 5.







	6.
	Agreement Not to Compete.



	(a)
	The
Executive agrees that during the Non-Competition Period (as defined below), he will not, directly or indirectly, in any capacity, either separately, jointly or in
association with others, as an officer, director, consultant, agent, employee, owner, principal, partner or stockholder of any business, or in any other capacity, engage or have a financial interest
in any business that is involved in the manufacturing, sourcing, distributing, repairing, servicing or retail sale of consumer batteries, consumer battery accessories, men's or women's consumer
electric shavers and hair trimming and clipping products in North America (a "Competing Business") (excepting only (a) the ownership of not more than 5% of the outstanding securities of any
class listed on an exchange or the Nasdaq Stock Market and (b) acting as an officer, director, consultant, agent, employee, principal or partner of a division, subsidiary (direct or indirect)
or parent (direct or indirect) of a Competing Business, which division, subsidiary (direct or indirect) or parent (direct or indirect) is not involved
in the manufacturing, sourcing, distributing, repairing, servicing or retail sale of consumer batteries, consumer battery accessories, men's or women's consumer electric shavers or hair trimming or
clipping products in North America. The "Non-Competition Period" is (i) the longer of the Executive's employment with the Company or the time period which he serves as a director of
the Company or any subsidiary of the Company plus (ii) a period of one (1) year thereafter.



	(b)
	Without
limiting the generality of clause (a) above, the Executive further agrees that during the Non-Competition Period, he will not, directly or indirectly, in
any capacity, either separately, jointly or in association with others, solicit or otherwise contact any of the Company's customers or prospects, as shown by the Company's records, that were customers
or prospects of the Company at any time during the Non-Competition Period if such solicitation or contact is for the general purpose of selling products as defined in Section 6(a).



	(c)
	The
Executive agrees that during the Non-Competition Period, he shall not, other than in connection with employment for the Company, solicit the employment or services of
any employee of Company who is or was an employee of Company at any time during the Term, nor hire any active employee of Company for any other business; provided, however that the provisions of this
Section 6(c) shall not apply with respect to any employee whose employment 





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with
the Company or Remington was terminated at any time following the close of the transaction. 



	(d)
	If
a court determines that the foregoing restrictions are too broad or otherwise unreasonable under applicable law, including with respect to time or space, the court is hereby
requested and authorized by the parties hereto to modify the foregoing restrictions to include the maximum restrictions allowed under the applicable law. The covenants and agreements set forth in this
Section 6 shall be deemed, and shall be construed as, separate and independent covenants and agreements, and should any part or provision of such covenants or agreements be held invalid, void
or unenforceable by any court of competent jurisdiction, such invalidity, voidness or unenforceability shall in no way render invalid, void or unenforceable any other part or provision thereof or any
separate covenant not declared invalid, void or unenforceable; and this Section 6 shall in that case be construed as if the void, invalid or unenforceable provisions were omitted



	(e)
	For
purposes of this Section 6 and Section 7, the "Company" refers to the Company and any incorporated or unincorporated subsidiaries and affiliates of the Company,
including Remington.






	7.
	Secret Processes and Confidential Information.



	(a)
	The
Executive recognizes and acknowledges that he has had and will have access to certain highly sensitive, special, unique information of the Company that is confidential or
proprietary. The Executive hereby covenants and agrees that he will not (except in the performance of his services under this Agreement): (a) use or disclose any Trade Secrets during the Term
and for a period of five years thereafter for so long as they remain Trade Secrets and (b) use or disclose any Confidential Information during the term of his employment with the Company and
for a period of three (3) years thereafter; provided, however, that the foregoing restrictions shall not apply to (1) items that have
entered the public domain other than by an unauthorized disclosure by the Executive, (2) any items required to be disclosed by a governmental authority or under applicable law, or
(3) Confidential Information received subsequently from third parties not known by the Executive to be subject to confidentiality restrictions.



	(b)
	For
purposes of this Agreement, (A) "Trade Secret" means any currently existing information of the Company, including, without limitation, technical or
non-technical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a set of guidelines, a procedure, a drawing, a process, financial data, financial
plans, product plans, or a list of actual or potential customers or suppliers of the Company, that derives economic value, actual or potential, from not being generally known to and not being readily
ascertainable by proper means by other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances to maintain its
secrecy or otherwise constitutes a trade secret under applicable law; and (B) "Confidential Information" is any currently existing data or information of the Company other than Trade Secrets,
which is competitively sensitive and not generally known to the public.



	(c)
	The
Executive will promptly disclose to the Company and to no other person, firm or entity all inventions, discoveries, improvements, trade secrets, formulas, techniques, processes,
know-how and similar matters, whether or not patentable and whether or not reduced to practice, in each case pertaining to products produced and sold by the Company which are conceived or
learned by the Executive during the period of the Executive's employment with the Company, either alone or with others, which relate to or result from the actual or anticipated business or research of
the Company or which result, to any extent, from the Executive's use of the Company's premises or property (collectively called the "Inventions"). 





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The
Executive acknowledges and agrees that all the Inventions shall be the sole property of the Company, and the Executive hereby assigns to the Company all of the Executive's rights and interests in
and to all of the Inventions, it being acknowledged and agreed by the Executive that all the Inventions are works made for hire. The Company shall be the sole owner of all domestic and foreign rights
and interests in the Inventions. The Executive agrees to assist the Company at the Company's expense to obtain and from time to time enforce patents and copyrights on the Inventions. 



	(d)
	The
Executive acknowledges that all Trade Secrets and Confidential Information are and shall be the sole, exclusive and valuable property of the Company, and that he does not have and
shall not acquire any right, title or interest therein. Any and all printed, typed, written or other material that the Executive may have in his possession or obtain with respect to Trade Secrets or
Confidential Information (including without limitation all copyrights therein) shall be and remain the exclusive property of the Company, and any and all material (including any copies) shall, upon
request of the Company, be promptly delivered by the Executive to the Company.






	8.
	Notices. All notices or other communications hereunder shall be in writing and shall be deemed to have been duly given (a) when
delivered personally, (b) upon confirmation of receipt when such notice or other communication is sent by facsimile, (c) one day after delivery to an overnight delivery courier, or
(d) on the fifth day following the date of deposit in the United States mail if sent first class, postage prepaid, by registered or certified mail. The addresses for such notices shall be as
follows: 



For
notices and communications to the Company: 




Rayovac
Corporation

601 Rayovac Drive

Madison, WI 53711

Facsimile: (608) 278-6666

Attention: James T. Lucke 





For
notices and communications to the Executive: 




Lester
Lee

172 Catalpa Road

Wilton, Connecticut 06897 





Any
party hereto may, by notice to the other, change its address for receipt of notices hereunder. 



	9.
	General.



	(a)
	Governing Law. This Agreement shall be construed under and governed by the laws of the State of Wisconsin, without reference to its
conflicts of law principles. The parties agree that they shall submit to the exclusive jurisdiction of the state and federal courts located in the State of Wisconsin with respect to any dispute
arising under this Agreement.



	(b)
	Amendment; Waiver. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms hereof may be
waived, only by a written instrument executed by all of the parties hereto or, in the case of a waiver, by the party waiving compliance. The failure of any party at any time or times to require
performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver by any party of the breach of any term or covenant contained in this Agreement,
whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or
covenant contained in this Agreement. 





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	(c)
	Successors and Assigns. This Agreement shall be binding upon the Executive, without regard to the duration of his employment by the
Company or reasons for the cessation of such employment, and inure to the benefit of his administrators, executors, heirs and assigns, although the obligations of the Executive are personal and may be
performed only by him. This Agreement shall also be binding upon and inure to the benefit of the Company and its subsidiaries, successors and assigns, including any corporation with which or into
which the Company or its successors may be merged or which may succeed to their assets or business.



	(d)
	Counterparts. This Agreement may be executed in two counterparts, each of which shall be deemed an original but which together shall
constitute one and the same instrument.



	(e)
	Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Executive's continuing or future
participation during his employment hereunder in any benefit, bonus, incentive or other plan or program provided by the Company or any of its affiliates and for which the Executive may qualify.
Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan or program of the Company or any affiliated company at or subsequent to the date of the
Executive's termination of employment with the Company shall, subject to the terms hereof or any other agreement entered into by the Company and the Executive on or subsequent to the date hereof, be
payable in accordance with such plan or program.



	(f)
	Mitigation. In no event shall the Executive be obligated to seek other employment by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement.



	(g)
	Equitable Relief. The Executive expressly agrees that breach of any provision of Sections 6 or 7 of this Agreement would result in
irreparable injuries to the Company, that the remedy at law for any such breach will be inadequate and that upon breach of such provisions, the Company, in addition to all other available remedies,
shall be entitled as a matter of right to injunctive relief in any court of competent jurisdiction without the necessity of proving the actual damage to the Company.



	(h)
	Entire Agreement. This Agreement and the schedule hereto constitute the entire understanding of the parties hereto with respect to the
subject matter hereof and supersede all prior negotiations, discussions, writings and agreements between them with respect to the subject matter hereof.



	(i)
	Prior Agreements. This Agreement constitutes the entire understanding of the parties hereto with respect to Executive's employment with
the Company and Remington and supersedes all prior negotiations, discussions, writings and agreements between them with respect to the subject matter hereof. This Agreement supercedes and cancels the
Previous Rayovac Agreement, the Remington Change of Control Agreement, and all other previous agreements relating to the employment of Executive by the Company or Remington; provided, however, that
(i) Restricted Stock Agreements between the Company and the Executive entered into prior to the date of this Agreement and (ii) the Super Performance Agreement between Executive and
Remington as amended August 28, 2003 relating to Remington bonuses payable for calendar year 2003 shall continue in full force and effect.



	(j)
	Attorney's Fees. The Company shall reimburse the Executive for any and all legal fees and expenses incurred by the Executive, as such
fees and expenses are incurred, in connection with any litigation or dispute between the parties under this Agreement including, but not limited to, legal fees and expenses incurred by the Executive
in connection with any litigation brought in good faith by the Executive under this Agreement. The Company shall also reimburse the Executive as such fees and expenses are incurred by him in
connection with the review and negotiation of this Agreement. 



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



	 	 	RAYOVAC CORPORATION
	

 	
 	

By:	

/s/  DAVID A. JONES      
 David A. Jones

Chairman and

Chief Executive Officer





EXECUTIVE:




	

/s/  LESTER LEE      
 Name: Lester Lee	
 	

 




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AMENDED AND RESTATED EMPLOYMENT AGREEMENT