Document:

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                                                                    Exhibit 10.3

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

                  THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT is entered into
as of the 1st day of October, 2000 ("Effective Date"), by and between Rayovac
Corporation, a Wisconsin corporation (the "Company"), and David A. Jones (the
"Executive").

                  WHEREAS, the Executive and the Company were parties to an
Employment Agreement dated September 12, 1996, with respect to the employment of
the Executive by the Company (the "1996 Agreement");

                  WHEREAS, the Executive and the Company modified the terms of
Executive's employment with the Company by entering into an Amended and Restated
Employment Agreement dated April 27, 1998 (the "1998 Agreement"), and the
parties wish to amend and restate the provisions of the 1998 Agreement as set
forth herein; and

                  WHEREAS, the Company desires the benefit of the experience,
supervision and services of the Executive and desires to employ the Executive
upon the terms and conditions set forth herein; and

                  WHEREAS, 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, as
         the Chairman of the Board of Directors and Chief Executive Officer of
         the Company, reporting directly to the Board of Directors of the
         Company (the "Board"). In connection therewith, as Chairman of the
         Board and Chief Executive Officer, the Executive shall oversee and
         direct the operations of the Company and perform such other duties
         consistent with the responsibilities of Chairman of the Board and Chief
         Executive Officer, all subject to the direction and control of the
         Board. During the Term (as defined below), the Executive shall devote
         substantial time to such employment which will be his primary business
         activity.

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2.       TERM OF EMPLOYMENT. Subject to Section 4 hereof, the Executive's
         employment and appointment hereunder shall be for a term commencing on
         the date hereof and expiring on September 30, 2003 (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)      BASE SALARY. The Executive shall receive a base salary equal
                  to Five Hundred and Fifty Thousand Dollars ($550,000) per
                  annum effective October 1, 2000 for the duration of the Term
                  ("Base Salary"), which Base Salary shall be paid in equal
                  monthly installments each year, to be paid monthly in arrears.
                  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. Any such increased Base
                  Salary shall be and become the "Base Salary" for purposes of
                  this Agreement.

         (b)      BONUS. The Executive shall receive a bonus for each fiscal
                  year ending during the Term, payable annually in arrears,
                  which shall be based, as set forth on SCHEDULE A hereto, on
                  the Company achieving certain annual performance goals
                  established by the Board from time to time (the "Bonus"). The
                  Board may, in its discretion, increase the annual Bonus. Any
                  such increased annual Bonus shall be and become the "Bonus"
                  for such fiscal year for purposes of this Agreement.

         (c)      ADDITIONAL SALARY. In addition to the compensation described
                  above, (i) so long as the promissory note (the "Note") of the
                  Executive attached hereto as EXHIBIT A is not due and payable
                  in full, the Executive shall receive additional compensation
                  at an initial rate of Thirty-five Thousand Dollars ($35,000)
                  per annum during the Term, payable (A) at the time the Bonus
                  is payable hereunder, (B) if no Bonus is payable hereunder, at
                  the time the Board determines that no Bonus is payable
                  hereunder or (C) if payment of principal of and interest on
                  the Note is accelerated, at the time of the Executive's
                  payment in full of the Note; provided, however, that to the
                  extent the Note is prepaid, the rate set forth above shall be
                  decreased by the amount by which interest on the Note has been
                  reduced as a result of such prepayment and (ii) the Executive
                  shall also receive an additional $18,500 per annum during the
                  Term, payable at the time

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                  the first monthly installment of Base Salary is payable
                  hereunder and on each anniversary thereafter (all such
                  payments set forth in clauses (i) and (ii) above are referred
                  to herein as the "Additional Salary").

         (d)      INSURANCE COVERAGES AND PENSION PLANS. The Executive shall be
                  entitled to such insurance, pension and all other benefits as
                  are generally made available by the Company to its executive
                  officers from time to time.

         (e)      STOCK OPTIONS. All stock options previously granted to the
                  Executive shall remain in full force and effect in accordance
                  with their terms. If the Company implements a new stock option
                  program in the future, the Executive may participate to the
                  extent authorized by the Board.

         (f)      RESTRICTED STOCK AWARD. In connection with the Executive's
                  employment and appointment hereunder, the Executive is hereby
                  granted a Restricted Stock Award pursuant to The 1997 Rayovac
                  Incentive Plan (the "1997 Plan") and the terms and conditions
                  of the Rayovac Corporation Restricted Stock Award Agreement
                  attached hereto as Schedule B.

         (g)      VACATION. The Executive shall be entitled to four (4) weeks
                  vacation each year.

         (h)      HOUSING AND OTHER 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. In
                  addition, the Company will reimburse the Executive for
                  expenses associated with reasonable travel to and from Atlanta
                  and will pay or reimburse the Executive for the reasonable
                  expenses associated with providing the Executive with the use
                  of a suitable home purchased by the Company in the Madison
                  area, other than utilities and maintenance. All expense
                  reimbursements and other perquisites of the Executive are
                  reviewable periodically by the Compensation Committee of the
                  Board, if there be one, or the Board.

         (i)      AUTOMOBILE. The Company shall provide the Executive with the
                  use of a leased automobile suitable for a chief executive
                  officer of a company similar to the Company.

         (j)      D&O INSURANCE. The Executive shall be entitled to
                  indemnification from the Company to the maximum extent
                  provided by law, but not

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                  for any action, suit, arbitration or other proceeding (or
                  portion thereof) initiated by the Executive, unless authorized
                  or ratified by the Board. Such indemnification shall be
                  covered by the terms of the Company's policy of insurance for
                  directors and officers in effect from time to time (the "D&O
                  Insurance"). Copies of the Company's charter, by-laws and D&O
                  Insurance will be made available to the Executive upon
                  request.

         (k)      LEGAL FEES. The Company shall pay the Executive's actual and
                  reasonable legal fees incurred in connection with the
                  preparation of this Agreement.

         (l)      RETENTION BONUS; HOUSE SALE.

                  (i)      Within thirty (30) days after the Effective Date of
                           this Agreement, Company shall pay Executive Four
                           Hundred Thousand Dollars ($400,000) as a bonus for
                           past services to the Company, and then, on the
                           earlier of September 30, 2003 or a Sale (as described
                           in the first sentence of Section 4(d)), the Company
                           shall pay the Executive an additional amount of Four
                           Hundred Thousand Dollars ($400,000).

                  (ii)     If the Company does not terminate the Executive's
                           employment hereunder pursuant to Section 4(a) and the
                           Executive does not terminate his employment hereunder
                           pursuant to Section 4(d) (other than following a Sale
                           as described in the first sentence of Section 4(d)),
                           then at any time after the earlier of April 30, 2003
                           or the date on which the Executive's employment is
                           terminated, at the option of and upon the request of
                           the Executive or his estate, the Company shall sell
                           to the Executive or his estate fee simple title to
                           the home purchased by the Company for the use of the
                           Executive, free and clear of all liens and
                           encumbrances arising after the date of the Company's
                           acquisition of the home and not created by the
                           Executive other than liens or encumbrances that do
                           not materially affect the use or value thereof; the
                           purchase price shall be One Dollar ($1.00).

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"):

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                  (i)      the commission by the Executive of any deliberate and
                           premeditated act 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
                           Board, provided such failure or refusal continues
                           after thirty (30) days of the receipt of notice in
                           writing from 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

                  (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 the Executive's time-based
                  or performance-based Stock Option Agreement to purchase
                  455,786 shares of Common Stock at an exercise price of $4.39
                  per share (collectively the "Stock Option Agreements"), or any
                  agreements referred to therein, 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

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                  hereunder without prior 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). 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, or
                  upon thirty (30) days prior written notice after a Sale (as
                  such term is defined in the Stock Option Agreements). Any such
                  termination shall be treated as a termination by the Company
                  for "Cause" under Section 5, unless notice of such termination
                  was given within thirty (30) days after a Sale (as such term
                  is defined in the Stock Option Agreements), in which case such
                  termination shall be treated in accordance with Section 5(d)
                  hereof.

         (e)      CONSTRUCTIVE TERMINATION BY THE EXECUTIVE. The Executive shall
                  be entitled to terminate his employment and appointment
                  hereunder, without prior notice, upon the occurrence of a
                  Constructive Termination. Any such termination shall be
                  treated as a termination by the Company without Cause. For
                  this purpose, a "Constructive Termination" shall mean:

                  (i)      a reduction in Base Salary or Additional Salary
                           (other than as permitted hereby);

                  (ii)     a reduction in annual Bonus opportunity;

                  (iii)    a change in location of office of more than
                           seventy-five (75) miles from Madison, Wisconsin;

                  (iv)     unless with the express written consent of the
                           Executive, (a) the assignment to the Executive of any
                           duties inconsistent in any substantial respect with
                           the Executive's position, authority or
                           responsibilities as contemplated by Section 1 of this
                           Agreement or (b) any other substantial change in such

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                           position, including titles, authority or
                           responsibilities from those contemplated by Section 1
                           of the Agreement; or

                  (v)      any material reduction in any of the benefits
                           described in Section 3(g), (h), (i) or (j) hereof.

                  For purposes of the Stock Option Agreements, Constructive
                  Termination shall be treated as a termination of employment by
                  the Company without "Cause."

         (f)      NOTICE OF TERMINATION. Any termination by the Company for
                  Cause or by the Executive for Constructive Termination 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
                  any party to set forth in the Notice of Termination any fact
                  or circumstance which contributes to a showing of Cause or
                  Constructive Termination shall not waive any right of such
                  party hereunder or preclude such party 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)      DEATH OR DISABILITY. If the Executive's employment is
                  terminated by the death or disability of the Executive
                  (pursuant to Section 4(b)), the Executive's compensation
                  provided in Section 3 shall be paid to the Executive or, in
                  the event of the death of the Executive, the Executive's
                  estate, as follows:

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                  (i)      the Executive's Base Salary specified in Section 3(a)
                           shall continue to be paid in monthly installments
                           until the first to occur of (i) twenty-four (24)
                           months following such termination or (ii) such time
                           as the Executive or the Executive's estate breaches
                           the provisions of Sections 6 or 7 of this Agreement;

                  (ii)     double the PRO RATA portion (based on days worked and
                           percentage of achievement of annual performance
                           goals) of the annual Bonus payable to the Executive,
                           if any, specified in Section 3(b) shall be paid,
                           unless the Board determines to pay a greater amount
                           in its sole discretion;

                  (iii)    the Executive's Additional Salary (or, for any
                           partial year, the pro rata portion thereof) specified
                           in Section 3(c) shall continue to be paid until the
                           first to occur of (i) the remaining period of the
                           Term or (ii) such time as the Executive or the
                           Executive's estate breaches the provisions of
                           Sections 6 or 7 of this Agreement;

                  (iv)     If the Executive's employment is terminated as a
                           result of disability, the Executive's additional
                           benefits specified in Section 3(d) shall continue to
                           be available to the Executive until the first to
                           occur of (i) the remaining period of the Term (or
                           twenty-four (24) months following such termination,
                           if greater) or (ii) such time as the Executive
                           breaches the provisions of Sections 6 or 7 of this
                           Agreement; and

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

         (c)      WITHOUT CAUSE. If the Executive's employment is terminated by
                  the Company without Cause (pursuant to Section 4(c) or 4(e)),
                  the Executive's compensation provided in Section 3 shall be
                  paid as follows:

                  (i)      the Executive's Base Salary specified in Section 3(a)
                           shall continue to be paid in monthly installments
                           until the first to occur of (i) the remaining period
                           of the Term (or twenty-four (24) months following
                           such termination, if greater) or (ii) such time as
                           the Executive breaches the provisions of Sections 6
                           or 7 of this Agreement;

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                  (ii)     the Executive's annual Bonus shall continue to be
                           paid in accordance with this Section 5(c) at the
                           times set forth in Section 3(b) until the first to
                           occur of (i) the remaining period of the Term (or
                           twenty-four (24) months following such termination,
                           if greater) or (ii) such time as the Executive
                           breaches the provisions of Sections 6 or 7 of this
                           Agreement. The annual Bonus payable pursuant to this
                           Section 5(c) shall equal the amount of the annual
                           Bonus (if any) previously paid or required to be paid
                           pursuant to this Agreement (or the 1998 Agreement)
                           for the full fiscal year immediately prior to the
                           Executive's termination of employment;

                  (iii)    the Executive's Additional Salary (or, for any
                           partial year, the pro rata portion thereof) specified
                           in Section 3(c) shall continue to be paid until the
                           first to occur of (i) the remaining period of the
                           Term (or twenty-four (24) months following such
                           termination, if longer) or (ii) such time as the
                           Executive breaches the provisions of Sections 6 or 7
                           of this Agreement; and

                  (iv)     the Executive's additional benefits specified in
                           Section 3(d) shall continue to be available to the
                           Executive until the first to occur of (i) twenty-four
                           (24) months following such termination or (ii) such
                           time as the Executive breaches the provisions of
                           Sections 6 or 7 of this Agreement.

         (d)      FOLLOWING SALE. If the Executive elects to terminate his
                  employment within thirty (30) days following a Sale in
                  accordance with Section 4(d), such termination by the
                  Executive shall be treated as a termination by the Company
                  without Cause, and the Executive shall be entitled to the
                  compensation provided in Section 5(c); provided, however, that
                  Executive's Base Salary, annual Bonus, Additional Salary and
                  Section 3(d) additional benefits shall continue to be paid
                  only until the first to occur of (i) the remaining period of
                  the Term (or twelve (12) months following the expiration of
                  the Post-Term Period (as defined below)) or (ii) such time as
                  the Executive breaches the provisions of Sections 6 or 7 of
                  this Agreement. In no event, however, shall Executive receive
                  less than twelve (12) months Base Salary and annual Bonus
                  following the expiration of the Post-Term Period.
                  Notwithstanding the foregoing, the Company may require that
                  the Executive continue to remain in the employ of the Company
                  for up to a maximum of thirty (30) days following the Sale
                  (the "Post-Term Period"). The Company shall place the maximum
                  cash payments payable pursuant to Section 5(c) in escrow with
                  a

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                  commercial bank or trust company mutually acceptable to the
                  Company and the Executive as soon as practicable following the
                  Sale. For the Post-Term Period, the Company shall make the
                  cash payments that would otherwise be required pursuant to
                  Section 3 (all such cash payments to be deducted from the
                  amount placed in escrow). At the expiration of the Post-Term
                  Period, the Executive shall receive all cash amounts due the
                  Executive from the remaining amount held in escrow ratably
                  monthly over the Non-Competition Period (as defined below),
                  with the balance (if any) returned to the Company. If the
                  Company does not require that the Executive remain in the
                  employ of the Company, the Company shall pay the Executive all
                  cash amounts payable pursuant to Section 5(c) ratably monthly
                  over the Non-Competition Period (all such cash payments to be
                  deducted from the amount placed in escrow) with the balance
                  (if any) returned to the Company.

         The Executive shall not be required to mitigate the amount of any
         payment provided for herein by seeking other employment or otherwise,
         and if the Executive does obtain other employment, all amounts payable
         by the Company under this Agreement shall remain fully due and payable.

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 which is involved in the design,
                  manufacturing, marketing or sale of batteries or battery
                  operated lighting devices (excepting only the ownership of not
                  more than 5% of the outstanding securities of any class listed
                  on an exchange or the Nasdaq Stock Market). The
                  "Non-Competition Period" is (a) the longer of the Executive's
                  employment hereunder or time period which he serves as a
                  director of the Company plus (b) 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

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                  is for the general purpose of selling products that satisfy
                  the same general needs as any products that the Company had
                  available for sale to its customers or prospects during the
                  Non-Competition Period.

         (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 Non-Competition Period. During the Non-Competition
                  Period, the Executive shall not hire any employee of Company
                  for any other business.

         (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 revise the
                  foregoing restrictions to include the maximum restrictions
                  allowed under the applicable law.

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

7.       SECRET PROCESSES AND CONFIDENTIAL INFORMATION.

         (a)      The Executive agrees to hold in strict confidence and, except
                  as the Company may authorize or direct, not disclose to any
                  person or use (except in the performance of his services
                  hereunder) any confidential information or materials received
                  by the Executive from the Company and any confidential
                  information or materials of other parties received by the
                  Executive in connection with the performance of his duties
                  hereunder. For purposes of this Section 7(a), confidential
                  information or materials shall include existing and potential
                  customer information, existing and potential supplier
                  information, product information, design and construction
                  information, pricing and profitability information, financial
                  information, sales and marketing strategies and techniques and
                  business ideas or practices. The restriction on the
                  Executive's use or disclosure of the confidential information
                  or materials shall remain in force until such information is
                  of general knowledge in the industry through no fault of the
                  Executive or any agent of the Executive. The Executive also
                  agrees to return to the Company promptly upon its request any
                  Company information or materials in the Executive's possession
                  or under the Executive's control.

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         (b)      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, 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"). 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.

         (c)      Upon the request of, and, in any event, upon termination of
                  the Executive's employment with the Company, the Executive
                  shall promptly deliver to the Company all documents, data,
                  records, notes, drawings, manuals and all other tangible
                  information in whatever form which pertains to the Company,
                  and the Executive will not retain any such information or any
                  reproduction or excerpt thereof.

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 or telex, (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:

         (a)      For notices and communications to the Company:

                           Rayovac Corporation
                           601 Rayovac Drive
                           Madison, WI 53711
                           Facsimile: (608) 278-6666
                           Attention: Board of Directors

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                  with a copy to:

                           Thomas H. Lee Company
                           75 State Street
                           Boston, MA  02109
                           Facsimile: (617) 227-3514
                           Attention: Warren C. Smith, Jr.

                  and a copy to:

                           Skadden, Arps, Slate,
                             Meagher & Flom LLP
                           One Beacon Street,
                           Boston, MA  02108
                           Facsimile:  (617) 573-4822
                           Attention:  Louis A. Goodman, Esq.

         (b)      For notices and communications to the Executive:

                           David A. Jones
                           7912 Via Vecchia
                           Naples, Florida  34108

                  with a copy to:

                           Sutherland, Asbill & Brennan LLP
                           999 Peachtree Street, N.E.
                           Atlanta, GA  30309
                           Facsimile: (404) 853-8806
                           Attention: Mark D. Kaufman, Esq.

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

9.       GENERAL.

         9.1      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.

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         9.2      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.

         9.3      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.

         9.4      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.

         9.5      ATTORNEYS' FEES. In the event that any action is brought to
                  enforce any of the provisions of this Agreement, or to obtain
                  money damages for the breach thereof, and such action results
                  in the award of a judgment for money damages or in the
                  granting of any injunction in favor of one of the parties to
                  this Agreement, all expenses, including reasonable attorneys'
                  fees, shall be paid by the non-prevailing party.

         9.6      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

                                       14
<PAGE>

                  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.

         9.7      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. In the event that the Executive shall give a Notice
                  of Termination for Constructive Termination and it shall
                  thereafter be determined that Constructive Termination did not
                  take place, the employment of the Executive shall, unless the
                  Corporation and the Executive shall otherwise mutually agree,
                  be deemed to have terminated, at the date of giving such
                  purported Notice of Termination, and the Executive shall be
                  entitled to receive only those payments and benefits which he
                  would have been entitled to receive at such date had he
                  terminated his employment voluntarily at such date under
                  Section 4(d) of this Agreement.

         9.8      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.

         9.9      TERMINATION OF 1998 AGREEMENT. The 1998 Agreement is hereby
                  terminated.

         9.10     ENTIRE AGREEMENT. This Agreement and the exhibit and 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.

                                       15
<PAGE>

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

                                          RAYOVAC CORPORATION

                                          By
                                            ------------------------------------
                                          Kent J. Hussey
                                          President and Chief Operating Officer

EXECUTIVE:

------------------------------------
David A. Jones

                                       16
<PAGE>

                                   SCHEDULE A

                            EXECUTIVE BONUS SCHEDULE
<TABLE>
<CAPTION>
===============================================================================
                                                       Bonus Available
             Percentage of                              as Percentage
             Plan Achieved                          of Annual Base Salary
-------------------------------------------------------------------------------
             <S>                                         <C>
              137.5%                                        120%
-------------------------------------------------------------------------------
              130                                           110
-------------------------------------------------------------------------------
              122.5                                         100
-------------------------------------------------------------------------------
              115                                            90
-------------------------------------------------------------------------------
              107.5                                          75
-------------------------------------------------------------------------------
              100                                            60
-------------------------------------------------------------------------------
               90                                            30
-------------------------------------------------------------------------------
               80                                             0
===============================================================================
</TABLE>

         Any level of Company performance which falls between two specific
points set forth above under "Percentage of Plan Achieved" shall entitle the
Executive to receive a percentage of Base Salary determined on a straight line
basis between such two points. Such amount shall be calculated as follows:

         [(A-B) x .1] x (C-D) + D

Where:

A  =  The actual Percentage of Plan Achieved.

B  =  The Percentage of Plan Achieved set forth above which is less than and
      closest to actual results.

C  =  The Bonus Available as Percentage of Base Salary set forth above
      which is greater than and closest to the percentage that would apply
      based on actual results.

D  =  The Bonus Available as Percentage of Base Salary set forth above
      which is less than and closest to the percentage that would apply based
      on actual results.

                                       17
<PAGE>

                                   SCHEDULE B

                               RAYOVAC CORPORATION
                        RESTRICTED STOCK AWARD AGREEMENT

         This is a Restricted Stock Award Agreement ("Agreement") dated as of
October 1, 2000 by and between Rayovac Corporation, a Wisconsin corporation (the
"Company"), and David A. Jones (the "Executive") pursuant to The 1997 Rayovac
Incentive Plan (the "Plan"), and, in consideration of the mutual promises set
forth below and other good and valuable consideration, the mutuality and
sufficiency of which are hereby acknowledged, the parties to this Agreement
hereby agree as follows:

         1. BACKGROUND. The Company has adopted the Plan to provide additional
incentive compensation to its officers and other employees and to encourage such
individuals, including the Executive, to remain in the employ of the Company.
The Company desires to grant an award (the "Award") to the Executive of shares
of the Company's common stock, par value $.01 per share ("Common Stock"), as
additional incentive for the Executive's services and as an inducement to the
continued services by the Executive to the Company and its subsidiaries, subject
to all of the terms, conditions and restrictions contained herein. The Executive
acknowledges that he has received a copy of the Plan and any prospectus related
thereto from the Company.

         2. GRANT OF AWARD. Pursuant to the Plan and subject to the terms and
conditions of this Agreement and the Plan, the Company hereby grants to the
Executive an Award of Fifty-One Thousand Three Hundred Eighty-Seven (51,387)
shares of Common Stock, subject to certain restrictions (individually, a "Share"
and collectively, the "Shares").

         3. RESTRICTIONS. Until expiration of the restrictions provided in this
Agreement or in the Plan, the Shares shall be subject to the following
restrictions:

            (a) CONTINUED EMPLOYMENT. The Executive shall remain in the
employment of the Company or one of its subsidiaries and if, prior to the lapse
of restrictions on the Shares, the Executive's employment by the Company
terminates for any reason other than termination by the Company without Cause or
by reason of death or disability of Executive prior to the date the restrictions
lapse, the Shares shall immediately be forfeited to the Company and the
Executive shall have no further rights with respect the Shares. The terms
"Cause" and "disability" shall be defined as set forth in Sections 4(a) and (b)
of Executive's Amended and Restated Employment Agreement of October 1, 2000.

                                       18
<PAGE>

            (b) TRANSFER. The Shares may not be sold, assigned, transferred,
exchanged, pledged, hypothecated, or otherwise encumbered in any manner by the
Executive.

         4. LAPSE OF RESTRICTIONS.

            (a) GENERAL. Subject to the terms of this Agreement, restrictions on
the Shares shall expire on September 30, 2003, and the Executive shall receive
the Shares with respect to which such restrictions expire within thirty (30)
days after such vesting date.

            (b) FORFEITURE OF SHARES. The Executive shall forfeit all of the
Shares subject to restrictions upon the Executive's termination of employment
with the Company or any of its subsidiaries for any reason other than
termination by the Company without Cause or by reason of death or disability.

            (c) TERMINATION OF RESTRICTIONS. Notwithstanding the foregoing, the
Compensation Committee of the Board of Directors of the Company shall have the
power, in its sole discretion, to accelerate the expiration of the applicable
restriction period, to waive any restriction with respect to any part or all of
the Shares, or to waive the forfeiture of Shares and to retain restrictions on
Shares that would have been forfeited pursuant to the terms of this Agreement.

         5. CERTIFICATES. Each certificate issued in respect of the Shares shall
be registered in the name of Executive and deposited with the Company or its
designee and shall bear the following legend:

            "This certificate and the shares of common stock represented hereby
            are subject to the terms and conditions (including forfeiture and
            restrictions against transfer) contained in The 1997 Rayovac
            Incentive Plan and an Agreement entered into between Rayovac
            Corporation and the registered owner. Release from such terms and
            conditions shall be obtained only in accordance with the provisions
            of such Plan and Agreement, copies of which are on file in the
            office of the Secretary of Rayovac Corporation, Madison, Wisconsin."

         The Executive shall execute and deliver to the Company a stock power or
powers in blank with respect to the Shares.

         6. SECTION 83 ELECTION. The Executive agrees not to file an election
under section 83(b) of the Internal Revenue Code of 1986, as amended, with
respect to the Shares.

                                       19
<PAGE>

         7. CHANGE IN CONTROL. As more particularly provided in the Plan, all
restrictions with respect to any of the Shares that have not been previously
forfeited as provided in this Agreement shall expire and lapse upon the
occurrence of a Change in Control (as defined in the Plan). If a Change in
Control has occurred, all restrictions on the Shares shall expire immediately
prior to the effective date of the Change in Control .

         8. INCORPORATION OF PLAN; DEFINED TERMS. The Plan is incorporated
herein by reference and made a part of this Agreement as if each provision of
the Plan were specifically set forth herein. In the event of a conflict between
the Plan and this Agreement, the terms and conditions of the Plan shall govern.
Unless otherwise expressly defined in this Agreement, all capitalized terms in
this Agreement shall have the meanings given such terms in the Plan.

         9. MISCELLANEOUS.

            (a) SUCCESSORS; GOVERNING LAW. This Agreement shall bind and inure
to the benefit of the parties, their heirs, personal representative, successors
in interest and assigns. This Agreement shall be governed by and construed in
accordance with the laws of the State of Wisconsin.

            (b) DIVIDENDS. The Company shall have the discretion to pay to the
Executive any special or regular cash dividends declared by the Board of
Directors, or to defer the payment of cash dividends until the expiration of the
restrictions with respect to the Shares, or reinvest such amounts in additional
shares of Restricted Stock. Any cash payments of dividends that become payable
while any of the Shares remain subject to restrictions hereunder to Executive
with respect to the restricted shares may, in the Company's discretion, be net
of an amount sufficient to satisfy any federal, state and local withholding tax
requirements with respect to such dividends.

            (c) CONTINUED EMPLOYMENT. The Agreement does not constitute a
contract of employment. Participation in the Plan does not give the Executive
the right to remain in the employ of the Company or a subsidiary and does not
limit in any way the right of the Company or a subsidiary to change the duties
or responsibilities of the Executive.

            (d) AMENDMENT. The Company may amend this Agreement or modify the
provisions for the termination of the restrictions on the Shares without the
approval of the Executive to comply with any rules or regulations under
applicable tax, securities or other laws or the rules and regulations
thereunder, or to correct any omission in this Agreement.

                                       20
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement, effective
as of the date set forth below.

                                                 Rayovac Corporation

October 1, 2000                                  By:
                                                    ---------------------------
                                                    Kent J. Hussey
                                                    President and
                                                    Chief Operating Officer

EXECUTIVE

-------------------------------------
Name:    David A. Jones
Address: 7912 Via Vecchia
         Naples, Florida  34108

                                       21<PAGE>

                                                                    Exhibit 10.4

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

                  THIS AMENDED AND RESTATED AGREEMENT (this "Agreement") is
entered into as of the 1st day of October, 2000, by and between Rayovac
Corporation, a Wisconsin corporation (the "Company"), and Kent J.
Hussey (the "Executive").

                  WHEREAS, the Company and the Executive wish to amend and
restate the provisions of the Executive's Employment Agreement with the Company,
dated April 27, 1998, as amended October 1, 1998 and January 13, 2000, because
the Company desires to employ the Executive upon the terms and conditions set
forth herein; and

                  WHEREAS, 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, as the President
     and Chief Operating Officer of the Company, reporting directly to the Chief
     Executive Officer of the Company (the "CEO"). In connection therewith, as
     President and Chief Operating Officer, the Executive shall have general
     supervision of the day-to-day affairs of the Company and the supervision
     and direction of the actions of the other officers of the Company, subject
     to the supervision of the CEO. 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.

2.   TERM OF EMPLOYMENT. Subject to Section 4 hereof, the Executive's employment
     and appointment hereunder shall be for a term commencing on the date hereof
     and expiring on September 30, 2003 (the "Term"). Upon expiration of the
     Term, this Agreement shall automatically extend for successive periods of
     one (1) year, unless the Executive or the Company shall give notice to the
     other at least ninety (90) days prior to the end of the Term (or any annual
     extension thereof) indicating that it does not intend to renew the
     Agreement.

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

                                       1
<PAGE>

     taxes, FICA contributions and the like shall be deducted from such
     compensation:

     (a)    BASE SALARY. The Executive shall receive a base salary equal to
            Three Hundred Eighty-Five Thousand Dollars ($385,000) per annum
            effective October 1, 2000 for the duration of the Term ("Base
            Salary"), which Base Salary shall be paid in equal monthly
            installments each year, to be paid monthly in arrears. 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. Any such increased Base Salary shall be and
            become the "Base Salary" for purposes of this Agreement.

     (b)    BONUS. The Executive shall receive a bonus for each fiscal year
            ending during the Term, payable annually in arrears, which shall be
            based, as set forth on SCHEDULE A hereto, on the Company achieving
            certain annual performance goals established by the Board from time
            to time (the "Bonus"). The Board may, in its discretion, increase
            the annual Bonus. Any such increased annual Bonus shall be and
            become the "Bonus" for such fiscal year for purposes of this
            Agreement.

     (c)    INSURANCE COVERAGES AND PENSION PLANS. The Executive shall be
            entitled to such insurance, pension and all other benefits as are
            generally made available by the Company to its executive officers
            from time to time.

     (d)    STOCK OPTIONS. All stock options previously granted to the Executive
            shall remain in full force and effect in accordance with their
            terms. In connection with the Executive's employment and appointment
            hereunder, the Executive was previously granted certain time-based
            and performance-based options to purchase, in the aggregate, 72,106
            shares of Common Stock at an exercise price of $22.88 per share. If
            the Company implements a new stock option program in the future, the
            Executive may participate to the extent authorized by the Board.

     (e)    RESTRICTED STOCK AWARD. In connection with the Executive's
            employment and appointment hereunder, the Executive is hereby
            granted a Restricted Stock Award pursuant to The 1997 Rayovac
            Incentive Plan (the "1997 Plan") and the terms and conditions of the
            Rayovac Corporation Restricted Stock Award Agreement attached hereto
            as Schedule B.

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

     (g)    OTHER 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. All
            expense reimbursements and other perquisites of the Executive

                                       2
<PAGE>

            are reviewable periodically by the Compensation Committee of the
            Board, if there be one, or the Board.

     (h)    AUTOMOBILE. The Company shall provide the Executive with the use of
            a leased automobile suitable for a chief operating officer of a
            company similar to the Company. Unless the Executive's employment is
            terminated by the Company for Cause or by the Executive pursuant to
            Section 5(c), the Executive shall be entitled to purchase such
            automobile for $100 upon the earlier of (i) the expiration of the
            lease for such automobile or (ii) the termination of Executive's
            employment.

     (i)    D&O INSURANCE. The Executive shall be entitled to indemnification
            from the Company to the maximum extent provided by law, but not for
            any action, suit, arbitration or other proceeding (or portion
            thereof) initiated by the Executive, unless authorized or ratified
            by the Board. Such indemnification shall be covered by the terms of
            the Company's policy of insurance for directors and officers in
            effect from time to time (the "D&O Insurance"). Copies of the
            Company's charter, by-laws and D&O Insurance will be made available
            to the Executive upon request.

     (j)    LEGAL FEES. The Company shall pay the Executive's actual and
            reasonable legal fees incurred in connection with the preparation of
            this Agreement.

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 act 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 CEO or the Board, provided such
                  failure or refusal continues after thirty (30) days of the
                  receipt of notice in writing from the CEO or the Board of such
                  failure or refusal, which notice refers to this Section 4(a)
                  and

                                       3
<PAGE>

                  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

            (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 the Executive's time-based or
            performance- based Stock Option Agreements to purchase 227,894
            shares of Common Stock at an exercise price of $4.39 per share
            (collectively, the "Stock Option Agreements") or any agreements
            referred to therein, 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, unless notice of such termination was given within sixty
            (60) days after a Sale (as such term is defined in the Stock Option
            Agreements), in which case such termination shall be treated in
            accordance with Section 5(c) hereof.

     (e)    CONSTRUCTIVE TERMINATION BY THE EXECUTIVE. The Executive shall be
            entitled to terminate his employment and appointment hereunder,
            without prior notice, upon the occurrence of a Constructive
            Termination. Any such termination shall be treated as a termination
            by the Company without Cause. For this purpose, a "Constructive
            Termination" shall mean:

                                       4
<PAGE>

            (i)   a reduction in Base Salary (other than as permitted hereby);

            (ii)  a reduction in annual Bonus opportunity;

            (iii) a change in location of office of more than seventy-five (75)
                  miles from Madison, Wisconsin;

            (iv)  unless with the express written consent of the Executive, (a)
                  the assignment to the Executive of any duties inconsistent in
                  any substantial respect with the Executive's position,
                  authority or responsibilities as contemplated by Section 1 of
                  this Agreement or (b) any other substantial change in such
                  position, including titles, authority or responsibilities from
                  those contemplated by Section 1 of the Agreement; or

            (v)   any material reduction in any of the benefits described in
                  Section 3(f), (g), (h) or (i) hereof.

            For purposes of the Stock Option Agreements, Constructive
            Termination shall be treated as a termination of employment by the
            Company without "Cause."

     (f)    NOTICE OF TERMINATION. Any termination by the Company for Cause or
            by the Executive for Constructive Termination 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 any party to set forth in
            the Notice of Termination any fact or circumstance which contributes
            to a showing of Cause or Constructive Termination shall not waive
            any right of such party hereunder or preclude such party 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

                                       5
<PAGE>

            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 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.

     (c)    FOLLOWING SALE. If the Executive elects to terminate his employment
            within sixty (60) days following a Sale in accordance with Section
            4(d), such termination by the Executive shall be treated as a
            termination by the Company without Cause, and the Executive shall be
            entitled to the compensation provided in Section 5(b) except that
            instead of the payment provided for in Section 5(b)(i)(ii) hereof,
            the Executive shall be entitled to the annual Bonus (if any) earned
            pursuant to any annual bonus or incentive plan maintained by the
            Company in respect of the fiscal year in which such termination
            occurs, and he shall be entitled to the full amount of such Bonus
            even if he terminates his employment pursuant to this Section 5(c)
            before the end of such fiscal year. Notwithstanding the foregoing,
            the Company may require that the Executive continue to remain in the
            employ of the Company for up to a maximum of six (6) months
            following the Sale (the "Post-Term Period"). The Company shall place
            the maximum cash payments payable pursuant to Section 5(b) (as
            modified by the provisions of this Section 5(c) above with respect
            to Section 5(b)(i)(ii) hereof) in escrow with a commercial bank

                                       6
<PAGE>

            or trust company mutually acceptable to the Company and the
            Executive as soon as practicable following the Sale. For the
            Post-Term Period, the Company shall make the cash payments that
            would otherwise be required pursuant to Section 3 (all such cash
            payments to be deducted from the amount placed in escrow). At the
            expiration of the Post-Term Period, the Executive shall receive all
            cash amounts due the Executive from the remaining amount held in
            escrow ratably monthly over the Non-Competition Period (as defined
            below), with the balance (if any) returned to the Company. If the
            Company does not require that the Executive remain in the employ of
            the Company, the Company shall pay the Executive all cash amounts
            payable pursuant to Section 5(b) (as modified by the provisions of
            this Section 5(c) above with respect to Section 5(b)(i)(ii) hereof)
            ratably monthly over the Non-Competition Period (all such cash
            payments to be deducted from the amount placed in escrow) with the
            balance (if any) returned to the Company.

The Executive shall not be required to mitigate the amount of any payment
provided for in this Agreement by seeking other employment or otherwise, and if
the Executive does obtain other employment, all amounts payable by the Company
under this Agreement shall remain fully due and payable.

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 which
            is involved in the design, manufacturing, marketing or sale of
            batteries or battery operated lighting devices (excepting only the
            ownership of not more than 5% of the outstanding securities of any
            class listed on an exchange or the Nasdaq Stock Market). The
            "Non-Competition Period" is (a) the longer of the Executive's
            employment hereunder or time period which he serves as a director of
            the Company plus (b) 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 that satisfy the same
            general needs as any products that the Company had available for
            sale to its customers or prospects during the Non-Competition
            Period.

     (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

                                       7
<PAGE>

            Company who is or was an employee of Company at any time during the
            Non-Competition Period. During the Non-Competition Period, the
            Executive shall not hire any employee of Company for any other
            business.

     (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 revise the foregoing
            restrictions to include the maximum restrictions allowed under the
            applicable law.

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

7.   SECRET PROCESSES AND CONFIDENTIAL INFORMATION.

     (a)    The Executive agrees to hold in strict confidence and, except as the
            Company may authorize or direct, not disclose to any person or use
            (except in the performance of his services hereunder) any
            confidential information or materials received by the Executive from
            the Company and any confidential information or materials of other
            parties received by the Executive in connection with the performance
            of his duties hereunder. For purposes of this Section 7(a),
            confidential information or materials shall include existing and
            potential customer information, existing and potential supplier
            information, product information, design and construction
            information, pricing and profitability information, financial
            information, sales and marketing strategies and techniques and
            business ideas or practices. The restriction on the Executive's use
            or disclosure of the confidential information or materials shall
            remain in force until such information is of general knowledge in
            the industry through no fault of the Executive or any agent of the
            Executive. The Executive also agrees to return to the Company
            promptly upon its request any Company information or materials in
            the Executive's possession or under the Executive's control.

     (b)    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, 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"). 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

                                       8
<PAGE>

            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.

     (c)    Upon the request of, and, in any event, upon termination of the
            Executive's employment with the Company, the Executive shall
            promptly deliver to the Company all documents, data, records, notes,
            drawings, manuals and all other tangible information in whatever
            form which pertains to the Company, and the Executive will not
            retain any such information or any reproduction or excerpt thereof.

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 or telex, (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:

     (a)   For notices and communications to the Company:

               Rayovac Corporation
               601 Rayovac Drive
               Madison, WI 53711
               Facsimile: (608) 278-6666
               Attention: Board of Directors

            with a copy to:

               Thomas H. Lee Company
               75 State Street
               Boston, MA  02109
               Facsimile: (617) 227-3514
               Attention: Warren C. Smith, Jr.

            and a copy to:

               Skadden, Arps, Slate,
                 Meagher & Flom LLP
               One Beacon Street,
               Boston, MA  02108
               Facsimile: (617) 573-4822
               Attention: Louis A. Goodman

     (b)    For notices and communications to the Executive:

               Kent J. Hussey
               7801 Noll Valley Road
               Verona, WI  53593
               Facsimile: (608) 798-0715

            with a copy to:

               Sutherland, Asbill & Brennan LLP
               999 Peachtree Street, N.E.
               Atlanta, GA 30309
               Facsimile: (404) 853-8806
               Attention: Mark D. Kaufman

                                       9
<PAGE>

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

9.       GENERAL.

         9.1 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.

         9.2 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.

         9.3 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.

         9.4 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.

         9.5 ATTORNEYS' FEES. In the event that any action is brought to enforce
any of the provisions of this Agreement, or to obtain money damages for the
breach thereof, and such action results in the award of a judgment for money
damages or in the granting of any injunction in favor of one of the parties to
this Agreement, all expenses, including reasonable attorneys' fees, shall be
paid by the non-prevailing party.

         9.6 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

                                       10
<PAGE>

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.

         9.7 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. In the event that the Executive
shall give a Notice of Termination for Constructive Termination and it shall
thereafter be determined that Constructive Termination did not take place, the
employment of the Executive shall, unless the Corporation and the Executive
shall otherwise mutually agree, be deemed to have terminated, at the date of
giving such purported Notice of Termination, and the Executive shall be entitled
to receive only those payments and benefits which he would have been entitled to
receive at such date had he terminated his employment voluntarily at such date
under Section 4(d) of this Agreement.

         9.8 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.

         9.9 ENTIRE AGREEMENT. This Agreement and the schedules 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.

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

                               RAYOVAC CORPORATION

                               By:
                                  ---------------------------------------------
                                  David A. Jones
                                  Chief Executive Officer

EXECUTIVE:

-----------------------
Kent J. Hussey

                                       11
<PAGE>

                                   SCHEDULE A

                            EXECUTIVE BONUS SCHEDULE
<TABLE>
<CAPTION>
           =====================================================================================
                                                                  Bonus Available
                        Percentage of                              as Percentage
                        Plan Achieved                          of Annual Base Salary
           -------------------------------------------------------------------------------------
                        <S>                                      <C>
                            137.5%                                      120%
           -------------------------------------------------------------------------------------
                              130                                       110
           -------------------------------------------------------------------------------------
                            122.5                                       100
           -------------------------------------------------------------------------------------
                              115                                        90
           -------------------------------------------------------------------------------------
                            107.5                                        75
           -------------------------------------------------------------------------------------
                              100                                        60
           -------------------------------------------------------------------------------------
                               90                                        30
           -------------------------------------------------------------------------------------
                               80                                        0
           -------------------------------------------------------------------------------------
</TABLE>

         Any level of Company performance which falls between two specific
points set forth above under "Percentage of Plan Achieved" shall entitle the
Executive to receive a percentage of Base Salary determined on a straight line
basis between such two points. Such amount shall be calculated as follows:

         [(A-B) x .1] x (C-D) + D

Where:

A = The actual Percentage of Plan Achieved.

B = The Percentage of Plan Achieved set forth above which is less than and
    closest to actual results.

C = The Bonus Available as Percentage of Base Salary set forth above
    which is greater than and closest to the percentage that would apply
    based on actual results.

D = The Bonus Available as Percentage of Base Salary set forth above
    which is less than and closest to the percentage that would apply based
    on actual results.

                                       12

<PAGE>

                                   SCHEDULE B

                               RAYOVAC CORPORATION
                        RESTRICTED STOCK AWARD AGREEMENT

         This is a Restricted Stock Award Agreement ("Agreement") dated as of
October 1, 2000 by and between Rayovac Corporation, a Wisconsin corporation (the
"Company"), and Kent J. Hussey (the "Executive") pursuant to The 1997 Rayovac
Incentive Plan (the "Plan"), and, in consideration of the mutual promises set
forth below and other good and valuable consideration, the mutuality and
sufficiency of which are hereby acknowledged, the parties to this Agreement
hereby agree as follows:

         1. BACKGROUND. The Company has adopted the Plan to provide additional
incentive compensation to its officers and other employees and to encourage such
individuals, including the Executive, to remain in the employ of the Company.
The Company desires to grant an award (the "Award") to the Executive of shares
of the Company's common stock, par value $.01 per share ("Common Stock"), as
additional incentive for the Executive's services and as an inducement to the
continued services by the Executive to the Company and its subsidiaries, subject
to all of the terms, conditions and restrictions contained herein. The Executive
acknowledges that he has received a copy of the Plan and any prospectus related
thereto from the Company.

         2. GRANT OF AWARD. Pursuant to the Plan and subject to the terms and
conditions of this Agreement and the Plan, the Company hereby grants to the
Executive an Award of Thirty-Five Thousand Nine Hundred Seventy-One (35,971)
shares of Common Stock, subject to certain restrictions (individually, a "Share"
and collectively, the "Shares").

         3. RESTRICTIONS. Until expiration of the restrictions provided in this
Agreement or in the Plan, the Shares shall be subject to the following
restrictions:

            (a) CONTINUED EMPLOYMENT. The Executive shall remain in the
employment of the Company or one of its subsidiaries and if, prior to the lapse
of restrictions on the Shares, the Executive's employment by the Company
terminates for any reason other than termination by the Company without Cause or
by reason of death or disability of Executive prior to the date the restrictions
lapse, the Shares shall immediately be forfeited to the Company and the
Executive shall have no further rights with respect the Shares. The terms
"Cause" and "disability" shall be defined as set forth in Sections 4(a) and (b)
of Executive's Amended and Restated Employment Agreement of October 1, 2000.

                                       13

<PAGE>
            (b) TRANSFER. The Shares may not be sold, assigned, transferred,
exchanged, pledged, hypothecated, or otherwise encumbered in any manner by the
Executive.

         4. LAPSE OF RESTRICTIONS.

            (a) GENERAL. Subject to the terms of this Agreement, restrictions on
the Shares shall expire on September 30, 2003, and the Executive shall receive
the Shares with respect to which such restrictions expire within thirty (30)
days after such vesting date.

            (b) FORFEITURE OF SHARES. The Executive shall forfeit all of the
Shares subject to restrictions upon the Executive's termination of employment
with the Company or any of its subsidiaries for any reason other than
termination by the Company without Cause or by reason of death or disability.

            (c) TERMINATION OF RESTRICTIONS. Notwithstanding the foregoing, the
Compensation Committee of the Board of Directors of the Company shall have the
power, in its sole discretion, to accelerate the expiration of the applicable
restriction period, to waive any restriction with respect to any part or all of
the Shares, or to waive the forfeiture of Shares and to retain restrictions on
Shares that would have been forfeited pursuant to the terms of this Agreement.

         5. CERTIFICATES. Each certificate issued in respect of the Shares shall
be registered in the name of Executive and deposited with the Company or its
designee and shall bear the following legend:

            "This certificate and the shares of common stock represented hereby
            are subject to the terms and conditions (including forfeiture and
            restrictions against transfer) contained in The 1997 Rayovac
            Incentive Plan and an Agreement entered into between Rayovac
            Corporation and the registered owner. Release from such terms and
            conditions shall be obtained only in accordance with the provisions
            of such Plan and Agreement, copies of which are on file in the
            office of the Secretary of Rayovac Corporation, Madison, Wisconsin."

         The Executive shall execute and deliver to the Company a stock power or
powers in blank with respect to the Shares.

         6. SECTION 83 ELECTION. The Executive agrees not to file an election
under section 83(b) of the Internal Revenue Code of 1986, as amended, with
respect to the Shares.

         7. CHANGE IN CONTROL. As more particularly provided in the Plan, all
restrictions with respect to any of the Shares that have not been previously
forfeited

                                       14
<PAGE>

as provided in this Agreement shall expire and lapse upon the occurrence of a
Change in Control (as defined in the Plan). If a Change in Control has occurred,
all restrictions on the Shares shall expire immediately prior to the effective
date of the Change in Control .

         8. INCORPORATION OF PLAN; DEFINED TERMS. The Plan is incorporated
herein by reference and made a part of this Agreement as if each provision of
the Plan were specifically set forth herein. In the event of a conflict between
the Plan and this Agreement, the terms and conditions of the Plan shall govern.
Unless otherwise expressly defined in this Agreement, all capitalized terms in
this Agreement shall have the meanings given such terms in the Plan.

         9. MISCELLANEOUS.

            (a) SUCCESSORS; GOVERNING LAW. This Agreement shall bind and inure
to the benefit of the parties, their heirs, personal representative, successors
in interest and assigns. This Agreement shall be governed by and construed in
accordance with the laws of the State of Wisconsin.

            (b) DIVIDENDS. The Company shall have the discretion to pay to the
Executive any special or regular cash dividends declared by the Board of
Directors, or to defer the payment of cash dividends until the expiration of the
restrictions with respect to the Shares, or reinvest such amounts in additional
shares of Restricted Stock. Any cash payments of dividends that become payable
while any of the Shares remain subject to restrictions hereunder to Executive
with respect to the restricted shares may, in the Company's discretion, be net
of an amount sufficient to satisfy any federal, state and local withholding tax
requirements with respect to such dividends.

            (c) CONTINUED EMPLOYMENT. The Agreement does not constitute a
contract of employment. Participation in the Plan does not give the Executive
the right to remain in the employ of the Company or a subsidiary and does not
limit in any way the right of the Company or a subsidiary to change the duties
or responsibilities of the Executive.

            (d) AMENDMENT. The Company may amend this Agreement or modify the
provisions for the termination of the restrictions on the Shares without the
approval of the Executive to comply with any rules or regulations under
applicable tax, securities or other laws or the rules and regulations
thereunder, or to correct any omission in this Agreement.

                                       15
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement, effective
as of the date set forth below.

                                    Rayovac Corporation

October 1, 2000                     By:
                                        ---------------------------------------
                                        David A. Jones
                                        Chief Executive Officer

EXECUTIVE

--------------------------------
Name:    Kent J. Hussey

Address: 7801 Noll Valley Road
         Verona, WI 53593

                                       16

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