<SUBMISSION>
<ACCESSION-NUMBER>0000950144-04-003437
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20040511
<FILING-DATE>20040402
<EFFECTIVENESS-DATE>20040402
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>APPLICA INC
<CIK>0000217084
<ASSIGNED-SIC>3634
<IRS-NUMBER>591028301
<STATE-OF-INCORPORATION>FL
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>001-10177
<FILM-NUMBER>04710713
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>5980 MIAMI LAKES DR
<CITY>MIAMI LAKES
<STATE>FL
<ZIP>33014
<PHONE>3053622611
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>5980 MIAMI LAKES DRIVE
<CITY>MIAMI LAKES
<STATE>FL
<ZIP>33014
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>WINDMERE DURABLE HOLDINGS INC
<DATE-CHANGED>19970224
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>WINDMERE CORP
<DATE-CHANGED>19920703
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>SAVE WAY INDUSTRIES INC
<DATE-CHANGED>19830815
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>g88047def14a.htm
<DESCRIPTION>APPLICA INCORPORATED
<TEXT>
<HTML>
<HEAD>
<TITLE>Applica Incorporated</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>SCHEDULE 14A INFORMATION<BR>
Proxy Statement Pursuant to Section&nbsp;14(a)<BR>
of the Securities Exchange Act of 1934</B>



<P align="left" style="font-size: 10pt">Filed by the
Registrant&nbsp;&nbsp;<font face="wingdings">&#120;</font><BR>
Filed by a Party other than the Registrant&nbsp;&nbsp;<font face="wingdings">&#111;</font>



<P align="left" style="font-size: 10pt">Check the appropriate box:<BR>
<font face="wingdings">&#111;</font>
&nbsp;Preliminary Proxy Statement<BR>
<font face="wingdings">&#111;</font>
&nbsp;Confidential, for the Use of the Commission Only (as permitted by Rule<BR>
<font face="wingdings">&#120;</font>
Definitive Proxy Statement<BR>
<font face="wingdings">&#111;</font>
&nbsp;Definitive Additional Materials<BR>
<font face="wingdings">&#111;</font>
&nbsp;Soliciting Material Under Rule14a-12


<P align="center" style="font-size: 16pt"><B>Applica Incorporated</B><BR>
<DIV align="center" style="font-size: 10pt">(Name of Registrant as Specified In Its Charter)</DIV>



<P align="center" style="font-size: 10pt">Not Applicable<BR>
(Name of Person(s) Filing Proxy Statement if other than Registrant))



<P align="left" style="font-size: 10pt">Payment of Filing Fee (Check the appropriate box):<BR>
<font face="wingdings">&#120;</font>
No fee required.<BR>
<font face="wingdings">&#111;</font>
&nbsp;Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(4) and 0-11

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
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    <TD width="3%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title of each class of securities to which transaction applies:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Aggregate number of securities to which transaction applies:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule&nbsp;0-11:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proposed maximum aggregate value of transaction:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Total fee paid:</TD>
</TR>

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</TABLE>
</DIV>



<P align="left" style="font-size: 10pt"><font face="wingdings">&#111;</font>

&nbsp;&nbsp;Fee paid previously with preliminary materials.


<P align="left" style="font-size: 10pt"><font face="wingdings">&#111;</font>

&nbsp;&nbsp;Check box if any part of the fee is offset as provided by Exchange Act
Rule&nbsp;0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the form or schedule and the date of its filing.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
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    <TD width="3%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amount Previously Paid:</TD>
</TR>

<TR valign="bottom">
<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form, Schedule or Registration Statement No.:</TD>
</TR>

<TR valign="bottom">
<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filing Party:</TD>
</TR>

<TR valign="bottom">
<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date Filed:</TD>
</TR>

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</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 16pt"><B>Applica Incorporated</B>



<P align="center" style="font-size: 10pt"><B>__________________</B>



<P align="center" style="font-size: 10pt"><B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</B>



<P align="center" style="font-size: 10pt"><B>TO BE HELD MAY 11, 2004</B>



<P align="center" style="font-size: 10pt"><B>__________________</B>



<P align="left" style="font-size: 10pt">To Our Shareholders:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cordially invite you to attend our annual meeting of shareholders. The
meeting will be held at the University of Miami, James W. McLamore Executive
Education Center, 5250 University Drive, Coral Gables, Florida 33124 on
Tuesday, May&nbsp;11, 2004, at 10:00&nbsp;a.m. local time. At the meeting, the holders
of our common stock will act on the following matters:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Election of three directors, each for a term of three years;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Ratification of the reappointment of Grant Thornton LLP as Applica&#146;s
independent accountants for the year ended December&nbsp;31, 2004; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Any other matters that properly come before the meeting.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All holders of record of shares of common stock at the close of business
on March&nbsp;22, 2004 are entitled to vote at the meeting and any postponements or
adjournments of the meeting.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your vote is important to us. Whether or not you expect to be present,
please sign, date and return the enclosed proxy card in the enclosed
pre-addressed envelope as promptly as possible. No postage is required if
mailed in the United States.


<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD valign="top"><FONT size="2">By Order of the Board of
Directors,<BR><BR>
<IMG src="g88047g8804701.gif" alt="David M. Friedson"><BR>
David M. Friedson<BR>
Chairman of the Board</FONT></TD>
</TR>
</TABLE>
</CENTER>

<P align="left" style="font-size: 10pt">Miami Lakes, Florida<BR>
April&nbsp;2, 2004



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We Encourage You To Attend The Meeting In Person. If You Are Unable To
Attend, We Respectfully Urge You To Execute And Return The Enclosed Proxy Card
As Promptly As Possible. Shareholders Who Execute A Proxy Card May
Nevertheless Attend The Meeting, Revoke Their Proxy And Vote Their Shares In
Person.</B>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

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<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="3%"></TD>
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	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">ABOUT THE MEETING</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">STOCK OWNERSHIP</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">PROPOSAL ONE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">ELECTION OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">Report of the Audit Committee</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">EXECUTIVE COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">PROPOSAL TWO</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">RATIFICATION OF REAPPOINTMENT OF INDEPENDENT ACCOUNTANTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">INFORMATION CONCERNING SHAREHOLDER PROPOSALS<BR> AND DIRECTOR NOMINATIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">OTHER BUSINESS</A></TD></TR>
</TABLE>
</CENTER>
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<P align="center" style="font-size: 10pt"><B>2004 ANNUAL MEETING OF SHAREHOLDERS</B>



<DIV align="center" style="font-size: 10pt"><B>OF</B><br>
<b>APPLICA INCORPORATED</B></div>



<P align="center" style="font-size: 10pt"><B>__________________</B>



<P align="center" style="font-size: 10pt"><B>PROXY STATEMENT</B>



<P align="center" style="font-size: 10pt"><B>__________________</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy statement contains information related to the annual meeting of
shareholders of Applica Incorporated to be held on Tuesday, May&nbsp;11, 2004,
beginning at 10:00&nbsp;a.m., at the University of Miami, James W. McLamore
Executive Education Center, 5250 University Drive, Coral Gables, Florida, and
at any adjournments or postponements thereof. We are first sending the proxy
materials to shareholders on or around April&nbsp;2, 2004.

<!-- link1 "ABOUT THE MEETING" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="center" style="font-size: 10pt"><B>ABOUT THE MEETING</B>



<P align="left" style="font-size: 10pt"><B><I>What is a proxy?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A proxy is your legal designation of another person to vote the stock that
you own. That other person is called a proxy. If you designate someone as
your proxy in a written document, that document is also called a proxy or proxy
card. As is our usual practice, two officers of the company have been
designated as proxies for the 2004 annual meeting of shareholders. These two
officers are Harry D. Schulman, President and Chief Executive Officer, and Adam
L. Kaplan, Vice President &#150; Finance and Corporate Treasurer.


<P align="left" style="font-size: 10pt"><B><I>What is a proxy statement?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A proxy statement is a document the Securities and Exchange Commission
requires us to give you when we ask you to sign a proxy card designating
Messrs.&nbsp;Schulman and Kaplan as proxies to vote on your behalf at the annual
meeting.


<P align="left" style="font-size: 10pt"><B><I>Who is soliciting my proxy?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors is soliciting your proxy in order to provide you an
opportunity to vote on all matters scheduled to come before the meeting,
whether or not you attend the meeting in person.


<P align="left" style="font-size: 10pt"><B><I>What is the purpose of the annual meeting?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At our annual meeting, shareholders will act upon the matters outlined in
the notice of meeting on the cover page of this proxy statement, including the
election of directors and the ratification of the reappointment of the
independent accountants. In addition, after adjournment of the formal meeting,
management will report on Applica&#146;s performance during 2003, give guidance on
future results and trends in operations, and respond to appropriate questions
from shareholders.


<P align="left" style="font-size: 10pt"><B><I>What is the record date?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The record date for the 2004 annual meeting of shareholders is March&nbsp;22,
2004.


<P align="left" style="font-size: 10pt"><B><I>Who is entitled to vote at the meeting?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Only shareholders of record at the close of business on the record date
are entitled to receive notice of and to participate in the annual meeting. If
you were a shareholder of record on the record date, you will be entitled to
vote all of the shares that you held on that date at the meeting, or any
postponements or adjournments of the meeting.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B><I>What are the voting rights of Applica common stock?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of Applica common stock will vote together as a single class on
all matters to be acted upon at the annual meeting. Each outstanding share of
Applica common stock will be entitled to one vote on each matter. Neither
Applica&#146;s Articles of Incorporation nor Bylaws provide for cumulative voting
rights.


<P align="left" style="font-size: 10pt"><B><I>Who can attend the meeting?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shareholders as of the record date, or their duly appointed proxies,
may attend the meeting, and each may be accompanied by one guest. Seating is
limited and admission to the meeting will be on a first-come, first-served
basis. Registration and seating will begin at 9:30 a.m. If you attend, please
note that you may be asked to present valid picture identification, such as a
driver&#146;s license or passport. Cameras, recording devices and other electronic
devices will not be permitted at the meeting.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please also note that if you hold your shares in &#147;street name&#148; (that is,
through a broker or other nominee), you will need to bring a copy of a
brokerage statement reflecting your stock ownership as of the record date and
check in at the registration desk at the meeting.


<P align="left" style="font-size: 10pt"><B><I>What constitutes a quorum?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The presence at the meeting, in person or by proxy, of the holders of a
majority of the aggregate voting power of the common stock outstanding on the
record date will constitute a quorum, permitting the meeting to conduct its
business. As of the record date, 23,802,458 shares of common stock,
representing the same number of votes, were outstanding. Thus, the presence of
the holders of common stock representing at least 11,901,230 votes will be
required to establish a quorum.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proxies received but marked as abstentions and broker non-votes will be
included in the calculation of the number of votes considered to be present at
the meeting.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If less than a majority of the outstanding shares of common stock are
represented at the meeting, a majority of the shares represented may adjourn
the meeting from time to time without further notice.


<P align="left" style="font-size: 10pt"><B><I>How do I vote?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you complete and properly sign the accompanying proxy card and return
it in the enclosed envelope, it will be voted as you direct. If you are a
registered shareholder and attend the meeting, you may deliver your completed
proxy card in person. &#147;Street name&#148; shareholders who wish to vote at the
meeting will need to obtain a proxy form from the institution that holds their
shares.


<P align="left" style="font-size: 10pt"><B><I>Can I change my vote or revoke my proxy after I return my proxy card?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes. Even after you have submitted your proxy, you may change your vote
or revoke your proxy at any time before the proxy is exercised by filing with
the Corporate Secretary of Applica either a notice of revocation or a duly
executed proxy bearing a later date. The powers of the proxy holders will be
suspended if you attend the meeting in person and so request, although
attendance at the meeting will not by itself revoke a previously granted proxy.


<P align="left" style="font-size: 10pt"><B><I>What are the Board&#146;s recommendations?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board recommends a vote:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>for </B>election of the nominated slate of directors (see
proposal one on page 6); and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>for </B>ratification of the reappointment of Grant Thornton LLP
as Applica&#146;s independent accountants for the year ended December&nbsp;31,
2004 (see proposal two on page 24).
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">2
</DIV>

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</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to any other matter that properly comes before the meeting,
the proxy holders will vote as recommended by the Board of Directors or, if no
recommendation is given, in their own discretion.


<P align="left" style="font-size: 10pt"><B><I>What if a shareholder does not specify a choice for a matter when returning a proxy?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders should specify their choice for each matter on the enclosed
form of proxy. Unless you give other instructions on your proxy card, the
persons named as proxy holders on the proxy card will vote in accordance with
the recommendations of the Board of Directors.


<P align="left" style="font-size: 10pt"><B><I>What vote is required to approve each item?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Election of Directors</B>. The affirmative vote of a plurality of the votes
cast at the meeting is required for the election of directors. A properly
executed proxy marked &#147;WITHHOLD AUTHORITY&#148; with respect to the election of one
or more directors will not be voted with respect to the director or directors
indicated, although it will be counted for purposes of determining whether
there is a quorum.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Other Items</B>. For each other item, the affirmative vote of the holders of a
majority of the shares represented in person or by proxy and entitled to vote
on the item will be required for approval. A properly executed proxy marked
&#147;ABSTAIN&#148; with respect to any such matter will not be voted, although it will
be counted for purposes of determining whether there is a quorum.


<P align="left" style="font-size: 10pt"><B><I>How are abstentions and broker non-votes counted?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Abstentions and broker non-votes will not affect the outcome of any vote.


<P align="left" style="font-size: 10pt"><B><I>What is the difference between a shareholder of record and a shareholder who holds shares in street name?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If your shares are registered in your name, you are a shareholder of
record. If your shares are in the name of your broker or bank, your shares are
held in street name.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you hold your shares in street name through a broker or other nominee,
your broker or nominee may not be permitted to exercise voting discretion with
respect to some of the matters to be acted upon. Thus, if you do not give your
broker or nominee specific instructions, your shares may not be voted on those
matters and will not be counted in determining the number of shares necessary
for approval. Shares represented by such &#147;broker non-votes&#148; will, however, be
counted in determining whether there is a quorum.


<P align="left" style="font-size: 10pt"><B><I>Who pays for the proxy solicitation costs?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cost of preparing and mailing this proxy statement will be paid by
Applica. Employees of Applica may solicit proxies personally and by telephone
but will not receive any compensation other than their regular salaries for
such solicitation. Applica may request banks, brokers and other custodians,
nominees and fiduciaries to forward copies of the proxy material to their
principals and to request authority for the execution of proxies. Applica may,
upon request, reimburse such persons for their expenses in so doing.


<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV align="left"><A NAME="001"></A></DIV>

<P align="center" style="font-size: 10pt"><B>STOCK OWNERSHIP</B>



<P align="left" style="font-size: 10pt"><B><I>How many shares of Applica common stock do Applica&#146;s directors and executive officers own?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the number of shares of Applica common stock
beneficially owned (unless otherwise indicated) by:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our directors,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the executive officers named in the Summary Compensation Table on page 13, and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all of the directors and executive officers of Applica as a group.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">All information is as of the record date. Unless otherwise indicated, each
person has sole voting and investment power with respect to all such shares.
The address of each of the beneficial owners identified below is c/o Applica
Incorporated, 5980 Miami Lakes Drive, Miami Lakes, Florida 33014-2467.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Amount and Nature of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Beneficially Owned (1)</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Directors and Executive Officers</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>No. of Shares</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Albio Espinosa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">28,067</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Frederick E. Fair</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">18,500</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">David M. Friedson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,877,895</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.7</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Susan J. Ganz</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15,800</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Leonard Glazer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12,052</TD>
    <TD nowrap>(6)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">J. Maurice Hopkins</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD nowrap>(7)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Thomas J. Kane</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">68,269</TD>
    <TD nowrap>(8)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Lai Kin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,887,500</TD>
    <TD nowrap>(9)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.9</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Michael J. Michienzi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">129,183</TD>
    <TD nowrap>(10)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Terry Polistina</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">62,264</TD>
    <TD nowrap>(11)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Jerald I. Rosen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50,916</TD>
    <TD nowrap>(12)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Felix S. Sabates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">97,500</TD>
    <TD nowrap>(13)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Harry D. Schulman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">320,326</TD>
    <TD nowrap>(14)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Paul K. Sugrue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6,700</TD>
    <TD nowrap>(15)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">All directors and executive officers as a group (15 persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,614,972</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">18.5</TD>
    <TD nowrap>%</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Less than 1%.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to acquire shares that are exercisable within 60&nbsp;days of
the record date.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 28,067 shares of common stock. Does not
include options to purchase 1,666 shares of common stock exercisable in
December&nbsp;2004 and 2,767 shares of common stock exercisable in 2005.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 6,000 shares of common stock. Does not
include options to purchase 1,500 shares of common stock exercisable in
June&nbsp;2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 587,540 shares of common stock and 32,869
shares of common stock held in a 401(k) plan.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 10,500 shares of common stock and 5,000
shares owned by a corporation owned by Ms.&nbsp;Ganz&#146;s husband. Does not
include options to purchase 1,500 shares of common stock exercisable in
June&nbsp;2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 9,500 shares of common stock. Does not
include options to purchase 1,500 shares of common stock exercisable in
June&nbsp;2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Reflects options to purchase 6,000 shares of common stock. Does not
include options to purchase 1,500 shares of common stock exercisable in
June&nbsp;2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 50,500 shares of common stock. Does not
include options to purchase 1,500 shares of common stock exercisable in
June&nbsp;2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(9)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 44,000 shares of common stock and 1,839,000
shares of common stock owned by Ourimbah Investment Limited, of which Mr.
Lai is a principal shareholder and Managing Director.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(10)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 63,334 shares of common stock, 164 shares of
common stock held by Mr.&nbsp;Michienzi&#146;s son and 40,685 shares of common stock
held in 401(k) and employee stock purchase plans. Does not include
options to purchase 23,333 shares of common stock exercisable in December
2004 and 23,333 shares of common stock exercisable in December&nbsp;2005.
</TD>
</TR>

</TABLE>

<P align="right" style="font-size: 10pt">(Footnotes continued on next page.)
<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
</div>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">(11)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 14,297 shares of common stock held in 401(k) plan. Does not
include options to purchase 16,666 shares of common stock exercisable in
December&nbsp;2004 and 16,667 shares of common stock exercisable in December
2005.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(12)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 15,000 shares of common stock and 1,565
shares of common stock owned by Mr.&nbsp;Rosen&#146;s wife. Does not include
options to purchase 1,500 shares of common stock exercisable in June&nbsp;2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(13)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 88,500 shares of common stock and 9,000
shares of common stock owned by a corporation, of which Mr.&nbsp;Sabates is
president and sole shareholder. Does not include options to purchase 1,500
shares of common stock exercisable in June&nbsp;2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(14)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 124,667 shares of common stock and 33,775
shares of common stock held in a 401(k) plan. Does not include options to
purchase 16,666 shares of common stock exercisable in December&nbsp;2004 and
16,667 shares of common stock exercisable in December&nbsp;2005.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(15)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes options to purchase 4,500 shares of common stock. Does not
include options to purchase 1,500 shares of common stock exercisable in
June&nbsp;2004.</TD>
</TR>

</TABLE>



<P align="left" style="font-size: 10pt"><B><I>Who are the other large owners of Applica&#146;s stock</I></B>?



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth below and in the previous table, we know of no single
person or group that is the beneficial owner of more than 5% of Applica&#146;s
common stock.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="65%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="67%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Amount and Nature of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Common Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Beneficially Owned</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name and Address of 5% Beneficial Owners</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>No. of Shares</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Paradigm
Capital Management, Inc.</B><br>
Nine Elk Street<br>
Albany, New York 12207</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,869,500</TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.9</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Ourimbah
Investments Limited</B><br>
1F Efficiency House<br>
35 TaiYau Street<br>
Sanpokong, Kowloon, Hong Kong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,839,000</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.7</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">

<TD><DIV style="margin-left:10px; text-indent:-10px"><B>Dimensional
Fund Advisors Inc.</B><br>
1299 Ocean Avenue, 11th Floor<br>
Santa Monica, California 90401</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,571,300</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.6</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Barclays
Global Investors, NA, et al.</B><br>
45 Fremont Street<br>
San Francisco, California 94105</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,398,915</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.9</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>ICM Asset
Management, Inc.<br>
James M. Simmons </B>(5)<br>
601 W. Main Avenue, Suite&nbsp;600<br>
Spokane, Washington 99201</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,334,977</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.6</TD>
    <TD nowrap>%</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">As reported in the shareholder&#146;s Schedule&nbsp;13G filed with the SEC on
February&nbsp;12, 2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Mr.&nbsp;Lai Kin, a director of Applica Incorporated and the former Chairman
of the Board of Applica Durable Manufacturing Limited, is the Managing
Director and a principal shareholder of Ourimbah Investment Limited.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">As reported in the shareholder&#146;s Schedule&nbsp;13G filed with the SEC on
February&nbsp;16, 2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">As reported in the shareholder&#146;s Schedule&nbsp;13G filed with the SEC on
February&nbsp;17, 2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">As reported in the shareholder&#146;s Schedule&nbsp;13G filed with the SEC on
February&nbsp;11, 2004. James M. Simmons is the President and controlling
shareholder of ICM Asset Management, Inc.</TD>
</TR>

</TABLE>



<P align="left" style="font-size: 10pt"><B>Section&nbsp;16(a) Beneficial Ownership Reporting Compliance</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;16(a) of the Securities Exchange Act of 1934 requires Applica&#146;s
directors and executive officers and persons who own more than 10% of the
outstanding common stock to file with the Securities and Exchange Commission
initial reports of ownership and reports of changes in ownership of Applica
common stock. Such persons are required by SEC regulation to furnish Applica
with copies of all such reports they file. To our knowledge, based solely on a
review of the copies of such reports furnished to us and verbal confirmations
that no other reports were required, all Section 16(a) filing requirements
applicable to our officers, directors and greater than 10% beneficial owners
have been met.


<P align="center" style="font-size: 10pt">5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "PROPOSAL ONE" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center" style="font-size: 10pt"><B>PROPOSAL ONE</B>


<!-- link1 "ELECTION OF DIRECTORS" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt"><B>ELECTION OF
DIRECTORS</B></div>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors is presently composed of eleven directors, divided
among Class&nbsp;I, Class&nbsp;II and Class&nbsp;III. The terms of office of all of the
directors in any one class expire each year on a rotating basis. At the annual
meeting, three directors are to be nominated for election to Class&nbsp;II of the
Board of Directors to serve until the 2007 annual meeting of shareholders. The
term of the Class&nbsp;I directors expires in 2006 and the term of the Class&nbsp;III
directors expires in 2005.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the nominees for election as a director is presently a member of
our Board of Directors. The Board of Directors has no reason to believe that
any nominee will refuse to act or be unable to accept election; however, in the
event that a nominee is unable to accept election, proxies solicited hereunder
will be voted in favor of the remaining nominees, if any, and for such other
persons as may be designated by the Board of Directors, unless directed by a
proxy to do otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth information regarding each director and nominee
for director.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Director</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Age</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Position with Applica</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Since</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Nominees for Election to Class&nbsp;II of the Board:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Leonard Glazer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1979</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Lai Kin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1989</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Paul K. Sugrue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2000</TD>
    <TD>&nbsp;</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Continuing Members of the Board:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><I>Class&nbsp;I Directors</I>
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Susan J. Ganz</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1996</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">J. Maurice Hopkins</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1999</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Thomas J. Kane</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1996</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Felix S. Sabates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1991</TD>
    <TD>&nbsp;</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><I>Class&nbsp;III Directors</I>
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Frederick E. Fair</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1999</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">David M. Friedson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director and Chairman of the Board</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1982</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Jerald I. Rosen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1963</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Harry D. Schulman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director, President and Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1999</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt"><B>Class&nbsp;I Directors</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Susan J. Ganz </B>has served as President and Chief Executive Officer of each
of Lion Brothers Co. Ltd. (and as a senior officer of certain of its direct and
indirect subsidiaries and affiliates), a manufacturer of embroidered emblems,
and Chesapeake Cap Company, Inc., a manufacturer of headwear, for more than the
last five years.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>J.&nbsp;Maurice Hopkins </B>serves as the Principal Managing Director and a board
member of Virginia ARC Thrift Stores, Inc., a non-profit retailer. Mr.&nbsp;Hopkins
also has served as the President of Merchandise Sales Corporation, a consumer
products sales and marketing company, for more than the last five years.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Thomas J. Kane </B>has served as President of T.J.K. Sales, Inc., an
independent sales representative, since he founded the company in 1978. See
&#147;Certain Relationships and Related Transactions&#148; for a description of business
conducted between Mr.&nbsp;Kane, T.J.K. Sales, Inc. and Applica.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Felix S. Sabates </B>is the Chief Executive Officer of FSS Holdings, Inc., a
consulting company, and Chip Ganassi Racing with Felix Sabates, a NASCAR racing
franchise. Mr.&nbsp;Sabates also serves as the Chairman of Trinity Yachts, Inc., a
custom yacht-building company, and the Charlotte Checkers, an East Coast Hockey
League franchise, and serves as a member of the Board of Commissioners of the
Carolina Healthcare Systems, one of the largest public healthcare systems in
the nation. From January&nbsp;1965 to January&nbsp;2001, Mr.&nbsp;Sabates was the Chief
Executive Officer


<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">of Top Sales Company, Inc., an independent sales representative. Mr.
Sabates also served two terms as a North Carolina Banking Commissioner from
1985 to 1992.



<P align="left" style="font-size: 10pt"><B>Class&nbsp;II Directors</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Leonard Glazer </B>retired in 1992 and is a private investor. Prior to
retirement, Mr.&nbsp;Glazer was President of Sasnett Engineering, Inc. and
Consulting Engineering, Inc., mechanical and electrical engineering consulting
firms.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Lai Kin </B>has been the Managing Director of Ourimbah Investment Ltd. since
1989. Ourimbah is a holding and investment company and owns approximately 7.7%
of the outstanding common stock of Applica. In addition, Mr.&nbsp;Lai served as the
Chairman of Applica Durable Manufacturing Limited from 1995 to 2003. From 1973
to 1995, Mr.&nbsp;Lai was Managing Director of such company. Mr.&nbsp;Lai has also
served as an Executive Member of the Shenzhen General Chamber of Commerce since
1988. Applica has agreed to use its best efforts to recommend to its
shareholders and directors that Mr.&nbsp;Lai remain a member of the Board of
Directors for such time as Mr.&nbsp;Lai continues to be an indirect shareholder of
Applica and continues to be employed by Applica Durable and/or any other
affiliate of Applica. See &#147;Certain Relationships and Related Transactions&#148; for
additional information and a description of certain transactions between Mr.
Lai, his family and Applica.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Paul K. Sugrue </B>has been the Dean of the University of Miami School of
Business Administration since 1992 and was Associate Dean from 1984 to 1987.
Dean Sugrue also serves as a professor in the Department of Management Science
in the School of Business Administration and has authored a significant number
of publications on business-related subjects. From 1987 to 1992, Dean Sugrue
served as Senior Vice Provost of the University of Miami.


<P align="left" style="font-size: 10pt"><B>Class&nbsp;III Directors</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Frederick E. Fair </B>is a private investor. In March&nbsp;1998, after 27&nbsp;years of
service, Mr.&nbsp;Fair retired as a Senior Vice President of Institutional Sales of
Raymond James Financial, Inc., an investment banking firm.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>David M. Friedson </B>has served as Chairman of the Board of Applica
Incorporated since April&nbsp;1996. From January&nbsp;1987 to February&nbsp;2003, Mr.
Friedson served as Chief Executive Officer of Applica Incorporated and Applica
Consumer Products, Inc. From January&nbsp;1985 to January&nbsp;2001, Mr.&nbsp;Friedson served
as President and from June&nbsp;1976 to January&nbsp;1985, Mr.&nbsp;Friedson held various
other management positions with Applica.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Jerald I. Rosen </B>has served as a member of Applica&#146;s Board of Directors
since its formation in 1963. Mr.&nbsp;Rosen has been engaged in the practice of law
since 1969 and has been a Certified Public Accountant since 1952. Mr.&nbsp;Rosen
also served as a bankruptcy trustee for the U.S. Bankruptcy Court, Middle
District of Florida, from 1989 to 2001.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Harry D. Schulman </B>has served as President of Applica Incorporated and
Applica Consumer Products, Inc. since January&nbsp;2001 and Chief Executive Officer
since February&nbsp;2003. Mr.&nbsp;Schulman previously served as Corporate Secretary
from January&nbsp;1999 to September&nbsp;2003 and Chief Operating Officer from November
1998 to February&nbsp;2002. From March&nbsp;1990 to January&nbsp;2001, Mr.&nbsp;Schulman served
as Chief Financial Officer of Applica. From February&nbsp;1998 until June&nbsp;1998, he
served as a Senior Vice President and from February&nbsp;1993 until June&nbsp;1998, Mr.
Schulman served as Executive Vice President &#151; Finance and Administration. Prior
thereto, he held other senior finance positions with Applica.


<P align="left" style="font-size: 10pt"><B><I>How are directors compensated?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Base Compensation</B>. Salaried employees of Applica do not receive any
additional cash compensation for serving as a director or committee member.
Applica pays fees to non-employee directors of $3,500 per month for service on
the Board of Directors. The presiding director receives an additional fee of
$1,500 per month. We also pay a fee of $750 to non-employee directors for each
Board of Directors&#146; meeting and each committee meeting attended, as well as
each continuing director education seminar attended.


<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Stock Options</B>. On June&nbsp;1, 2003, each non-employee director of Applica
received options to acquire 1,500 shares of common stock at a price of $6.10
per share, the fair market value of the common stock on such date. Applica
currently intends to continue to grant its non-employee directors options to
acquire 1,500 shares of common stock on June 1st of each year.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporate Governance and Nominating Committee is in the process of
reviewing Applica&#146;s current board compensation in light of the recent increases
in time commitment, performance expectations and accountability of the members
of our Board of Directors.


<P align="left" style="font-size: 10pt"><B><I>How often did the Board meet during 2003?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors held ten meetings during 2003 and met in executive
session four times. All of the directors attended more than 75% of the
aggregate of the total number of meetings of the Board of Directors and the
total number of meetings held by all committees of the Board of Directors on
which such person served, other than Felix Sabates.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a general matter, members of the Board of Directors are expected to
attend Applica&#146;s annual meetings of shareholders absent a pressing reason.
David Friedson was unable to attend Applica&#146;s 2003 annual meeting due to the
birth of his son and Lai Kin was unable to attend due to Applica&#146;s travel
restrictions related to the SARs outbreak. Felix Sabates was also unable to
attend the 2003 annual meeting of shareholders. We currently expect all of our
directors to be in attendance at the 2004 annual meeting of shareholders.


<P align="left" style="font-size: 10pt"><B><I>How many members of the Board are independent?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seven of the members of the Board of Directors are considered
&#147;independent&#148; directors under the New York Stock Exchange listing rules. David
Friedson and Harry Schulman are employed by Applica. Additionally, Lai Kin and
Tom Kane do not currently meet the independence requirements.


<P align="left" style="font-size: 10pt"><B><I>Has Applica adopted a code of ethics that applies to directors, officers and employees?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Business Ethics and Code of Conduct Policy and the Conflict of
Interest Policy, in their current forms, were adopted by the Board of Directors
in February&nbsp;2003 and apply to all directors, officers and employees. Both
policies are posted on Applica&#146;s website at www.applicainc.com. We will
provide copies of the each of the policies in print without charge to any
shareholder who makes a written request to: Corporate Secretary, Applica
Incorporated, 5980 Miami Lakes Drive, Miami Lakes, Florida 33014.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any waiver of these policies for any executive officer or director may
only be made by the Board of Directors or a committee thereof and will be
promptly disclosed to shareholders. Any amendment to the Business Ethics and
Code of Conduct Policy and the Conflict of Interest Policy will also be
promptly disclosed to shareholders.


<P align="left" style="font-size: 10pt"><B><I>What committees has the Board established?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of Applica has Corporate Governance and Nominating,
Compensation, Audit and Acquisition Committees. The members of each committee
have been appointed by the Board of Directors to serve until the next annual
meeting of the shareholders or until their respective successors are elected
and qualified.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Corporate Governance and Nominating Committee</I></B><I>. </I>The Corporate Governance
and Nominating Committee is responsible for developing and implementing
policies and practices relating to corporate governance, including the
development, implementation and monitoring of Applica&#146;s corporate governance
guidelines. In addition, the Committee identifies individuals to serve on the
Board of Directors and develops and periodically reviews a qualifications
profile for directors, including independence, experience relevant to the needs
of Applica, leadership qualities, diversity and ability to represent the
shareholders. The Corporate Governance and Nominating


<P align="center" style="font-size: 10pt">8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">Committee is composed of the following directors, each of whom is
independent of Applica under the standards set forth in the listing
requirements of the New York Stock Exchange:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Jerald Rosen, Chairman</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Leonard Glazer</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Felix Sabates</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">The Corporate Governance and Nominating Committee did not meet in 2003. The
Committee&#146;s written charter setting forth the Committee&#146;s purpose and
responsibilities can be accessed through Applica&#146;s website at
www.applicainc.com.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Compensation Committee</I></B><I>. </I>The Compensation Committee reviews and implements
Applica&#146;s general compensation philosophy and determines the cash and other
incentive compensation, if any, to be paid to the Chairman of the Board and the
President and Chief Executive Officer. The Compensation Committee is also
responsible for the administration and award of stock options under Applica&#146;s
stock option plans. The Compensation Committee is composed of the following
directors, each of whom is independent of Applica under the standards set forth
in the listing requirements of the New York Stock Exchange and an &#147;outside
director&#148; within the meaning of Section 162(m) of the Internal Revenue Code of
1986:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Jerald Rosen, Chairman</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Leonard Glazer</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Maurice Hopkins</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">The Compensation Committee met eleven times in 2003. The Committee&#146;s written
charter setting forth the Committee&#146;s purpose and responsibilities can be
accessed through Applica&#146;s website at www.applicainc.com.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Audit Committee</I></B><I>. </I>The functions of the Audit Committee and its activities
during fiscal 2003 are described below under the heading &#147;Report of the Audit
Committee&#148;. The Audit Committee is currently composed of the following
directors, each of whom is independent of Applica under the standards set forth
in the listing requirements of the New York Stock Exchange:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Jerald Rosen, Chairman</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Leonard Glazer</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Paul Sugrue</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">The Audit Committee met ten times in 2003. The Committee&#146;s written charter
setting forth the Committee&#146;s purpose and responsibilities is attached hereto
as Exhibit&nbsp;A and can be accessed through Applica&#146;s website at
www.applicainc.com.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Acquisition Committee</I></B>. The Acquisition Committee is responsible for
approving any acquisition or other business combination in which the aggregate
consideration paid by Applica or its subsidiaries is in excess of $150&nbsp;million.
The Acquisition Committee is currently composed of the following directors and
did not meet in 2003:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>David Friedson, Chairman</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Jerald Rosen</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Paul Sugrue</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B><I>Does Applica have an audit committee financial expert?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although each of the members of the Audit Committee are financially
literate and at least one member has accounting or related financial management
expertise as required by the New York Stock Exchange listing standards, none of
the members meet the definition of &#147;audit committee financial expert&#148; as
defined in Item 401(h) of Regulation&nbsp;S-K promulgated by the Securities and
Exchange Commission. Although, we believe that the present members of the
Audit Committee have sufficient knowledge and experience in financial affairs
to effectively perform


<P align="center" style="font-size: 10pt">9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">their duties, the Board is currently discussing whether or not to add such
an individual to the Board of Directors and Audit Committee.



<P align="left" style="font-size: 10pt"><B><I>Who is the Board&#146;s presiding director?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2003, the Board of Directors created a new position of
presiding director, whose primary responsibility is to preside over periodic
executive sessions of the Board of Directors in which management directors do
not participate. The presiding director also advises the Chairman of the Board
and the Committee chairs with respect to agendas and information needs relating
to Board and Committee meetings and performs other duties that the Board may
from time to time delegate to assist it in the fulfillment of its
responsibilities. The non-management members of the Board of Directors have
designated Jerald Rosen to serve in this position until the 2004 annual meeting
of shareholders.


<P align="left" style="font-size: 10pt"><B><I>How do I communicate with the Board of Directors?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders and other parties interested in communicating directly with
the presiding director or with the non-management directors as a group may do
so by writing to Presiding Director, Applica Incorporated, 5980 Miami Lakes
Drive, Miami Lakes, Florida 33014. Shareholders and other parties interested
in communicating directly with an individual directors may do so by writing to
such director, c/o Applica Incorporated, 5980 Miami Lakes Drive, Miami Lakes,
Florida 33014.


<P align="left" style="font-size: 10pt"><B><I>How do I recommend a director candidate?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Applica&#146;s Bylaws, nominations for director may be made by a
shareholder entitled to vote by delivering notice to Applica not less than 90
days nor more than 120&nbsp;days prior to the first anniversary of the date of the
notice of the preceding year&#146;s annual meeting. Such notice must be sent to the
Corporate Secretary and must set forth:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as to each person whom the shareholder proposes to nominate
for election or reelection as a director, all information relating
to such person that is required to be disclosed in solicitations of
proxies for elections of directors, or is otherwise required, in
each case pursuant to Regulation&nbsp;14A under the Securities Exchange
Act of 1934, as amended (including such person&#146;s written consent to
being named in the proxy statement as a nominee and to serving as a
director if elected);</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as to the shareholder giving the notice, the name and address
of such shareholder and the class and number of shares of Applica
which are beneficially owned by such shareholder and also which are
owned of record by such shareholder; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as to the beneficial owner, if any, on whose behalf the
nomination is made, the name and address of such person and the
class and number of shares of Applica which are beneficially owned
by such person.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">Applica may also require any proposed nominee to furnish such other information
as may reasonably be required by it to determine the eligibility of such
proposed nominee as a director. The Corporate Governance and Nominating
Committee will consider director candidates recommended by shareholders.



<P align="left" style="font-size: 10pt"><B><I>How does the Corporate Governance and Nominating Committee evaluate director nominees?</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee seeks to create a Board that will bring to Applica a broad
range of experience, knowledge and judgment. The Committee believes that
director nominees should posses the highest personal and professional ethics,
integrity and values and must be committed to representing the long-term
interests of shareholders. A candidate&#146;s breadth of experience should enable
him or her to contribute significantly to the governance of Applica. The
Committee will consider the candidate&#146;s independence, as defined by the listing
standards of the New York Stock Exchange. Additionally, director nominees
should have sufficient time to effectively carry out their duties.


<P align="center" style="font-size: 10pt">10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Therefore, the Committee will also consider a candidate&#146;s service on other
boards. Although it does not have a formal policy regarding the identification
and evaluation of director nominees, the Corporate Governance and Nominating
Committee is in the process of developing such policy that will apply to all
director nominees, including candidates recommended by shareholders.


<P align="center" style="font-size: 10pt"><B>* * * * *</B>


<!-- link1 "Report of the Audit Committee" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center" style="font-size: 10pt"><B>Report of the Audit Committee</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following Report of the Audit Committee does not constitute soliciting
material and should not be deemed filed or incorporated by reference into any
other filing of Applica under the Securities Act of 1933 or the Securities
Exchange Act of 1934, except to the extent Applica specifically incorporates
this Report by reference therein.</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As set forth in more detail in the Audit Committee Charter, the purpose of
the Audit Committee is to assist the Board of Directors in its oversight of:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the integrity of Applica&#146;s financial statements;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Applica&#146;s compliance with legal and regulatory requirements;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the independent auditor&#146;s qualifications and independence; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the performance of the Applica&#146;s internal audit function and independent auditors;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and to prepare this Report as required by the Securities and Exchange
Commission.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee consists entirely of independent directors who are not
officers or employees of Applica. Each member is financially literate and at
least one member has accounting or related financial management expertise as
required by the New York Stock Exchange listing standards. However, Applica
does not currently have a &#147;financial expert&#148; as defined in the rules of the
Securities and Exchange Commission and is currently considering whether to add
such an individual to the Board of Directors and the Audit Committee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee has implemented procedures to ensure that during the course
of each year it devotes the attention that it deems necessary or appropriate to
each of the matters assigned to it under the Committee&#146;s charter. The Audit
Committee has reviewed the relevant requirements of the Sarbanes-Oxley Act of
2002, the rules of the Securities and Exchange Commission adopted pursuant to
the Sarbanes-Oxley Act and the new listing standards of the New York Stock
Exchange regarding audit committee procedures and responsibilities. Although
the Audit Committee&#146;s existing procedures and responsibilities generally
complied with the requirements of these rules and standards, the Board of
Directors has revised the Committee&#146;s charter to make explicit its adherence to
them. The Committee&#146;s written charter setting forth the Committee&#146;s purpose
and responsibilities is attached hereto as Exhibit&nbsp;A.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To carry out its responsibilities, the Committee met ten times during
2003. These meetings included private sessions with Applica&#146;s independent
auditors and Applica&#146;s internal auditors at which candid discussions of
financial management, accounting and internal control issues took place.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In overseeing the preparation of Applica&#146;s financial statements, the
Committee met with both management and Applica&#146;s independent accountants to
review and discuss all financial statements prior to their issuance and to
discuss significant accounting issues. Management advised the Committee that
all financial statements were prepared in accordance with accounting principles
generally accepted in the United States of America, and the Committee discussed
the statements with both management and the outside auditors. The Committee&#146;s
review included discussion with the outside auditors of matters required to be
discussed pursuant to Statement on Auditing Standards No.&nbsp;61 (Communication
With Audit Committees), including the quality of Applica&#146;s accounting
principles, the reasonableness of significant judgments and the clarity of
disclosures in the financial statements.


<P align="center" style="font-size: 10pt">11
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to Applica&#146;s outside auditors, Grant Thornton LLP, the
Committee, among other things, received and discussed with them their written
report on matters relating to their independence, including the disclosures
made to the Committee as required by the Independence Standards Board Standard
No.&nbsp;1 (Independence Discussions with Audit Committees), and considered with the
auditors whether the provision of non-audit services provided by them to
Applica during 2003 was compatible with the auditors&#146; independence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, the Committee reviewed major initiatives and programs aimed at
strengthening the effectiveness of Applica&#146;s internal and disclosure control
structure and continued to monitor the scope and adequacy of Applica&#146;s internal
auditing program.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the basis of these reviews and discussions, the Committee recommended
to the Board of Directors that the Board approve the inclusion of the audited
financial statements in Applica&#146;s Annual Report on Form 10-K for the fiscal
year ended December&nbsp;31, 2003 for filing with the Securities and Exchange
Commission. Additionally, the Audit Committee approved the appointment of
Grant Thornton LLP as the independent auditor for Applica for the 2004&nbsp;year,
subject to shareholder ratification.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management is responsible for Applica&#146;s financial reporting process and
for the preparation of consolidated financial statements in accordance with
accounting principles generally accepted in the United States of America, and
the independent auditors are responsible for auditing those financial
statements. The Audit Committee is responsible for monitoring and reviewing
these processes, not to conduct auditing or accounting reviews and procedures.
Members of the Audit Committee are not required to be accountants or auditors
by profession.


<P align="left" style="font-size: 10pt; margin-left: 50%"><B>The Audit Committee</B><BR>
<I>Jerald I. Rosen (Chairman)<BR>
Leonard Glazer<BR>
Paul K. Sugrue</I>


<P align="center" style="font-size: 10pt">12
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "EXECUTIVE COMPENSATION" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="center" style="font-size: 10pt"><B>EXECUTIVE COMPENSATION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Summary Compensation Table</I></B><I>. </I>The following table sets forth the aggregate
compensation paid during 2003, 2002 and 2001 to Applica&#146;s President and Chief
Executive Officer (the &#147;CEO&#148;) and each of the four most highly compensated
executive officers other than the CEO. The CEO and such other executive
officers are sometimes referred to herein as the &#147;Named Executive Officers.&#148;

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="41%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Long-Term</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Annual</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awards</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Compensation (1)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities<br>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>All Other</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options/SARs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name and Principal Position</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Year</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Salary ($)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Bonus ($)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(#)(2)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>($)</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>David M. Friedson</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,098,087</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7,714</TD>
    <TD nowrap>(3)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Chairman of the Board</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">375,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000</TD>
    <TD>&nbsp;</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Harry D. Schulman</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">536,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12,380</TD>
    <TD nowrap>(4)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">President and Chief Executive</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500,006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,930</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">471,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,845</TD>
    <TD>&nbsp;</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Michael J. Michienzi</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">339,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">290,000</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">11,776</TD>
    <TD nowrap>(6)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Senior Vice President &#150; Global</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">319,670</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,350</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Business Development of</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">309,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,990</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Applica Consumer Products,
Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Terry Polistina</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">265,005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">250,000</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6,646</TD>
    <TD nowrap>(7)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Senior Vice President and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,899</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,689</TD>
    <TD>&nbsp;</TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>Albio Espinosa</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">384,648</TD>
    <TD nowrap>(8)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2,383</TD>
    <TD nowrap>(9)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Vice President &#150; Worldwide</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277,176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,462</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Manufacturing of Applica</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221,028</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Consumer Products, Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">The column for &#147;Other Annual Compensation&#148; has been omitted because there
is no compensation required to be reported in such column. The aggregate
amount of perquisites and other personal benefits provided to each Named
Executive Officer, including car allowances and club memberships, did not
exceed the lesser of $50,000 or 10% of the total of annual salary and
bonus of such officer. The car allowance in 2003 for Mr.&nbsp;Friedson was
$24,000, for Mr.&nbsp;Schulman was $24,000, for Mr.&nbsp;Michienzi was $11,700, for
Mr.&nbsp;Polistina was $10,800 and for Mr.&nbsp;Espinosa was $27,400.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">See &#147;Aggregated Option/SAR Exercises and Year-End Option/SAR Value Table&#148;
below for additional information about these options. Applica has not
granted any SARs.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This amount includes life insurance premiums of $3,714 paid by Applica
and matching contributions made by Applica of $4,000 to its 401(k) Profit
Sharing Plan.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This amount includes life insurance premiums of $8,380 paid by Applica
and matching contributions made by Applica of $4,000 to its 401(k) Profit
Sharing Plan.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">These bonuses were awarded by management to enable these officers to
repay outstanding loans to Applica, which were awarded under a lending
policy adopted in 2000. The lending policy was terminated in 2002.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This amount includes life insurance premiums of $2,646 paid by Applica
and matching contributions made by Applica of $4,000 to its 401(k) Profit
Sharing Plan.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This amount includes life insurance premiums of $7,776 paid by Applica
and matching contributions made by Applica of $4,000 to its 401(k) Profit
Sharing Plan.</TD>
</TR>

</TABLE>



<P align="right" style="font-size: 10pt">(Footnotes continued on next page.)




<P align="center" style="font-size: 10pt">13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
</div>




<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This bonus payment was a mandatory requirement under Mexican law. This
is a non-recurring cash bonus, which was not tied to annual performance.
</TD>
</TR>


<TR valign="top">
    <TD width="1%" nowrap align="right">(9)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This amount represents life insurance premiums that were paid by Applica
Manufacturing, S. de R.L. de C.V., Applica&#146;s Mexican manufacturing
subsidiary.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Option/SAR Grants Table</I></B><I>. </I>There were no grants of stock options made
during 2003 to any of the Named Executive Officers. Applica does not grant any
stock appreciation rights.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Aggregated Option/SAR Exercises and Year-End Option/SAR Value Table</I></B><I>. </I>The
following table sets forth certain information concerning unexercised stock
options held by the Named Executive Officers as of the end of 2003. No stock
options were exercised during 2003 by the Name Executive Officers.


<p align="center"  style="font-size: 10pt"><B>Aggregated Option/SAR
Exercises in Fiscal Year 2003<br>
and Fiscal Year-End Option/SAR Values</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="65%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Value of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Underlying</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unexercised</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unexercised</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>In-the-Money</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options/SARs at</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Options/SARs at</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003 Fiscal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003 Fiscal</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Year-End (#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Year-End ($)(1)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares Acquired</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exercisable (E)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exercisable (E)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>on Exercise (#)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Realized ($)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unexercisable( U)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unexercisable(U)</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">David M. Friedson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">687,540</TD>
    <TD nowrap>(E)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">2,063,039</TD>
    <TD nowrap>(E)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>(U)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">0</TD>
    <TD nowrap>(U)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Harry D. Schulman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">164,667</TD>
    <TD nowrap>(E)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">379,626</TD>
    <TD nowrap>(E)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">33,333</TD>
    <TD nowrap>(U)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">89,999</TD>
    <TD nowrap>(U)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Michael J. Michienzi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">63,334</TD>
    <TD nowrap>(E)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">102,752</TD>
    <TD nowrap>(E)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">46,666</TD>
    <TD nowrap>(U)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">125,998</TD>
    <TD nowrap>(U)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Terry Polistina</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">49,167</TD>
    <TD nowrap>(E)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">86,688</TD>
    <TD nowrap>(E)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">33,333</TD>
    <TD nowrap>(U)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">89,999</TD>
    <TD nowrap>(U)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Albio Espinosa</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26,967</TD>
    <TD nowrap>(E)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">36,001</TD>
    <TD nowrap>(E)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5,533</TD>
    <TD nowrap>(U)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">8,999</TD>
    <TD nowrap>(U)</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Based on the closing price of Applica&#146;s common stock on December&nbsp;31, 2003
as reported by the New York Stock Exchange, which was $7.60.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">&#147;Value Realized&#148; is the difference between the exercise price and the
market price on the exercise date multiplied by the number of options
exercised. &#147;Value Realized&#148; numbers do not necessarily reflect what the
executive might receive if he sells the shares acquired by the option
exercise, because the market price of the shares at the time of sale may
be higher or lower than the price on the exercise date of the option.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">14


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Equity Compensation Plans</I></B><I>. </I>The following table summarizes our equity
compensation plans as of December&nbsp;31, 2003. Applica has not granted any
warrants or stock appreciation rights.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="85%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>securities</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>remaining</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>available for</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>the future</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>issuance under</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>securities to be</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Weighted-</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>equity</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>issued upon</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>average</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>compensation</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>exercise of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>exercise price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>plans</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(excluding</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>options,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>options,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>securities</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>warrants and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>warrants and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>reflected in</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>rights</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>rights</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>column(a))</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Plan Category</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(a)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(b)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(c)</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Equity compensation plans approved by security holders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,376,703</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,124,392</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Employee stock purchase plan approved by security holders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">236,042</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Equity compensation not approved by security holders(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">466,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,843,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,360,434</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Applica has granted non-qualified stock options, which were not issued
under a formal plan and which were not approved by security holders. No such
options have been granted since 1998.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><B>Report of the Compensation Committee on Executive Compensation</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following Report of the Compensation Committee and the performance
graph which follows do not constitute soliciting material and should not be
deemed filed or incorporated by reference into any other filing of Applica
under the Securities Act of 1933 or the Securities Exchange Act of 1934, except
to the extent Applica specifically incorporates this Report or the performance
graph by reference therein.</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Role and Composition of the Compensation Committee. </I></B>The Compensation
Committee approves Applica&#146;s overall compensation philosophy and administers
and periodically reviews Applica&#146;s short-term and long-term incentive plans for
its executive officers. The Committee establishes the salaries and other
compensation of the Chairman of the Board and the President and Chief Executive
Officer, establishes and reviews their respective corporate goals and
objectives and evaluates each such officer&#146;s annual performance against such
goals and objectives. The Committee also reviews and approves the actions of
Applica&#146;s Benefits Committee and Applica&#146;s pension and employee welfare benefit
plans. The Committee&#146;s written charter setting forth the Committee&#146;s purpose
and responsibilities can be accessed through Applica&#146;s website at
www.applica.com.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee consists entirely of independent directors who are not
officers or employees of Applica.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee makes use of Applica resources and has retained independent
counsel to assist it in fulfilling its duties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Philosophy</I></B><I>. </I>The Committee&#146;s executive compensation philosophy is to
attract, motivate and retain high quality executives necessary to enable
Applica to achieve its business goals in order to drive profitable growth and
superior long-term shareholder value. To accomplish this goal, Applica strives
to provide competitive levels of total target compensation. The Committee&#146;s
policy is that a significant portion of the executive&#146;s total target
compensation should be tied both to achievement of Applica&#146;s annual and
long-term performance goals, and achievement of certain identified personal
goals.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee believes that Applica&#146;s compensation philosophy should be
measured over a sufficiently long period to enable it to determine whether its
compensation programs are in line with, and responsive to,


<P align="center" style="font-size: 10pt">15
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">shareholder expectations. The Compensation Committee does not rely solely
on predetermined formulas or a limited set of criteria when it determines
appropriate compensation for the Chairman and the President and Chief Executive
Officer. It also relies on its business judgment.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Components of Executive Compensation</I></B><I>. </I>In order to establish total target
compensation levels for Applica executives, the Committee considers total
compensation in the competitive market. The total compensation package for
Applica executives consists of the three basic components of salary, annual
incentive and long-term incentives, as discussed below. Base salary and target
bonus levels are generally set at the market median with differences where
warranted. Information about appropriate salary levels has been determined by
reviewing public disclosures of a comparison group of 12 companies in the
consumer durable goods manufacturing industry, compensation surveys and
Applica&#146;s recruiting activities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Base Salaries. </B>Base salary is the only fixed portion of an executive&#146;s
compensation. Base salaries are determined based upon relative responsibilities
and functions, as well as the executive&#146;s experience and skills. Base salaries
are reviewed annually and any additional increases are based on competitive
practices, as well as the performance of Applica and the executive officer,
including the executive&#146;s contribution to the achievement of financial
performance and other key goals established for Applica during the year.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The salaries paid to the Named Executive Officers for the past three years
are shown in the table on page 13. Certain of Applica&#146;s executive officers
(including the five Named Executive Officers) are parties to employment
agreements with Applica. Some of these employment agreements provide for an
annual salary increase equal to the increase in the consumer price index.
These adjustments were not made during certain of the past four years. In
2003, the base salaries of David Friedson, Harry Schulman and Michael Michienzi
were increased prospectively by an amount equal to the cumulative foregone
increase for the years in which they did not receive the consumer price index
increase required by their contracts.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Annual Incentive Bonuses</B><I>. </I>Annual bonus payments to executive officers are
generally tied to Applica&#146;s achievement of certain objective goals and the
executive&#146;s achievement of certain personal performance goals. The corporate
goal for 2003 was an internally defined cash flow number. The personal goals
for senior management are evaluated and approved by the Committee each year.
Maximum annual performance bonuses range from 15% to 115% of base salary
measured as of the end of the preceding year. The percentage is determined by
the executive&#146;s position and responsibilities. Mr.&nbsp;Friedson and Mr.&nbsp;Schulman
are also eligible for a special bonus in an amount set by the Committee in its
sole discretion. Certain management employees of Applica&#146;s subsidiaries in
Hong Kong and Mexico receive an annual cash bonus in an amount which ranges
from one to three months base salary. These bonuses are in accordance with the
customary practice in those countries and are not tied to achievement of
individual or company performance goals.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applica did not meet the cash flow goals established for 2003; as a result
no cash bonuses were paid to executive officers pursuant to this portion of
their bonus formula.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonuses are generally paid in the first quarter of the following year.
The bonuses paid to the Named Executive Officers for the past three years are
shown in the table on page 13.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Long-Term Incentive Compensation. </B>The Committee supports awards of equity
based compensation in order to align the interests of Applica executives with
Applica shareholders. At the current time, the Committee is authorized to grant
stock options to Applica&#146;s executive officers pursuant to the 1996 Stock Option
Plan, the 1998 Stock Option Plan and the 2000 Stock Option Plan. The
Compensation Committee has the authority to determine the individuals to whom
stock options are awarded, the terms upon which option grants are made, the
duration of the options and the number of shares subject to each option.
Historically, it was the Compensation Committee&#146;s intention that, over time,
compensation opportunities from option grants would constitute a significant
portion of each executive officer&#146;s total compensation. However, the Committee
is closely monitoring the trend regarding expensing stock options and
re-evaluating the role of stock options as a component of long-term
compensation. Currently, the Board of Directors has chosen not to expense
stock options because of the debate over the methodologies for calculating the
expense. If the accounting treatment


<P align="center" style="font-size: 10pt">16
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">of stock options is modified, the Committee will have to weigh the
financial impact to Applica with the benefits of stock option compensation. The
Compensation Committee is also in the process of reviewing other alternative
forms of long-term compensation that will motivate Applica&#146;s executives and
align their interests with those of the shareholders.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The size of the stock option grant is generally based on the position of
the recipient. The Compensation Committee reviews the overall performance of
Applica and of each individual executive officer, as well as past option grants
to each executive officer, and makes decisions about recipients and grant sizes
for the year. Stock options are granted at the market price of Applica&#146;s stock
on the grant date, generally vest over a period of five years and expire after
ten years. Stock options will only have value if the stock appreciates after
the options are granted. No stock options were granted to executive officers in
2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Compensation of Chairman of the Board</I></B><I>. </I>David M. Friedson is Applica&#146;s
Chairman of the Board. The terms and conditions of Mr.&nbsp;Friedson&#146;s compensation
are set by his employment agreement which is described on page 19. After
nearly seven years of serving as Applica&#146;s Chief Executive Officer and Chairman
of the Board, Mr.&nbsp;Friedson assumed the position of Applica&#146;s Chairman of the
Board and Harry D. Schulman was promoted to serve as Applica&#146;s President and
Chief Executive Officer. The Compensation Committee is in the process of
reviewing the terms and conditions of Mr.&nbsp;Friedson&#146;s employment agreement and
anticipates that it will be modified in 2004. Pursuant to Mr.&nbsp;Friedson&#146;s
employment agreement, he is entitled to receive an annual salary increase equal
to the increase in the consumer price index. However, from 1999 to 2002, these
adjustments were not made. In January&nbsp;2003, Mr.&nbsp;Friedson&#146;s salary was
increased prospectively for the cumulative foregone consumer price index
increase for the years in which such increase was not received. Mr.&nbsp;Friedson
did not otherwise receive an increase in base salary in 2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Friedson is also eligible to receive an annual performance bonus based
upon the achievement by Applica of certain objective earnings goals and the
completion of personal performance goals set by the Compensation Committee each
year. The performance bonus can range from 85% to 115% of his base salary,
depending on his performance and the performance of Applica. Mr.&nbsp;Friedson did
not receive an annual performance bonus in 2003 because the corporate
performance goal previously established by the Compensation Committee was not
met.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Friedson is eligible to receive a discretionary incentive bonus
determined by the Compensation Committee. In 1996, Applica made an equity
investment in Anasazi Partners, L.P., a limited partnership, which made an
investment in the ZonePerfect Nutrition Company. The sale of this business by
Anasazi in 2003 resulted in a significant gain to Applica. This investment
opportunity was originally offered to Mr.&nbsp;Friedson personally, at a time when
he served as President and Chief Executive Officer of Applica. However, he
realized that there was a business opportunity for Applica and presented the
opportunity to Applica. The Committee determined that David Friedson&#146;s
creativity, initiative and management skills were primarily responsible for
Applica&#146;s ability to realize this significant gain. The cash realized from the
Anasazi investment was used to pay down high yield debt, resulting in a
significant ongoing benefit to Applica. The Committee believes that David
Friedson&#146;s efforts and achievements in connection with the Anasazi transaction
were exceptional. However, in light of the fact that Applica was in the midst
of a cost-reduction program in 2003, the Committee did not award Mr.&nbsp;Friedson a
discretionary incentive bonus for 2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Compensation of President and Chief Executive Office. </I></B>In February&nbsp;2003,
Harry D. Schulman was elected President and Chief Executive Officer. Mr.
Schulman is a party to an employment agreement that sets the terms and
conditions of his employment. This agreement is described on page 19. Pursuant
to Mr.&nbsp;Schulman&#146;s employment agreement, he is entitled to receive an annual
salary increase equal to the increase in the consumer price index. However, in
2000 and 2002, these adjustments were not made. In January&nbsp;2003, Mr.
Schulman&#146;s base salary was increased prospectively for the cumulative foregone
consumer price index increase for the years in which such increase was not
received. Mr.&nbsp;Schulman did not otherwise receive an increase in base salary in
2003.


<P align="center" style="font-size: 10pt">17
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Schulman is also eligible to receive an annual performance bonus based
upon the achievement by Applica of certain objective earnings goals and the
completion of personal performance goals set by the Compensation Committee each
year. The performance bonus can range from 35% to 75% of his base salary,
depending on his performance and the performance of Applica. Mr.&nbsp;Schulman did
not receive an annual performance bonus in 2003 because the corporate and
individual performance goals previously established by the Compensation
Committee were not met.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee is in the process of reviewing Mr.&nbsp;Schulman&#146;s compensation
and anticipates that Mr.&nbsp;Schulman&#146;s compensation will be increased in 2004 in
light of his increased duties and responsibilities.


<P align="left" style="font-size: 10pt; margin-left: 50%"><B>The Compensation Committee</B><BR>
<I>Jerald I. Rosen (Chairman)<BR>
Leonard Glazer<BR>
J. Maurice Hopkins</I>


<P align="left" style="font-size: 10pt"><B>Compensation Committee Interlocks and Insider Participation</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee of the Board of Directors consists of Jerald I.
Rosen, Leonard Glazer and J. Maurice Hopkins. Messrs.&nbsp;Rosen, Glazer and
Hopkins are independent directors of Applica and are not affiliated with any
principal shareholder of Applica.



<P align="left">
<B><FONT size="2">Comparative Performance by Applica</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Set forth below is a five-year graphic comparison
of the yearly percentage change in Applica&#146;s cumulative
shareholder return on its common stock with the cumulative total
return of the Standard&nbsp;&#38; Poor&#146;s 500 Stock Index
and the Standard&nbsp;&#38; Poor&#146;s SmallCap 600 Stock Index.
</FONT>

<P align="center">
<IMG src="g88047g8804700.gif" alt="(PERFORMANCE GRAPH)">



<CENTER>
<TABLE width="40%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="16%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Fiscal&nbsp;Year</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Applica</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">SmallCap&nbsp;600</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">S&#38;P 500</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1998
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$100
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$100
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$100
    </FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1999
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$219
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$112
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$121
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$63
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$126
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$110
    </FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$116
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$134
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$97
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$65
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$114
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$76
    </FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$98
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$159
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$97
    </FONT></TD>
</TR>

</TABLE>
</CENTER>



</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">NOTE:&nbsp;</FONT></TD>
    <TD align="left">
    <B><FONT size="2">The comparisons in this table are required by
    the SEC and are not intended to forecast or be indicative of
    possible future performance of the Applica common
    stock.</FONT></B><FONT size="2"> Assumes that $100 was invested
    on December&nbsp;31, 1998 in the Applica common stock, the
    S&#38;P 500 Index and the S&#38;P SmallCap 600 Index and that
    dividends were reinvested quarterly.
    </FONT></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">18


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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Employment Agreements</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>David M. Friedson</B>. In June&nbsp;1999, Applica Incorporated entered into an
employment agreement with David M. Friedson, its Chairman of the Board and
former Chief Executive Officer. Under this agreement, Mr.&nbsp;Friedson is employed
for continuous five-year periods such that on each anniversary of the
agreement, the term is automatically extended for an additional year unless
written notice of an intention not to extend is given by either party. The
agreement provides for minimum annual base salary, subject to adjustment based
on the increase in the consumer price index, in addition to other benefits and
annual stock option grants at the discretion of the Compensation Committee.
Mr.&nbsp;Friedson&#146;s current base salary is $1,102,010. The agreement also provides
for an automobile allowance of $2,000 per month. Under the agreement, Mr.
Friedson is entitled to an annual performance bonus based upon Applica&#146;s
achievement of certain objective earnings goals and his completion of personal
performance goals set by the Compensation Committee each year. The performance
bonus can be between 85% and 115% of his base salary, depending on his
performance. Mr.&nbsp;Friedson is also entitled to such additional bonuses as may
be determined from time to time by the Compensation Committee. Additionally,
Applica may provide Mr.&nbsp;Friedson with life insurance in an amount equal to five
times his annual base salary. Mr.&nbsp;Friedson also receives reimbursement of (1)
annual dues in a country club and (2)&nbsp;tax preparation and financial planning on
an annual basis up to a maximum of $20,000. Pursuant to the agreement,
Applica will reimburse Mr.&nbsp;Friedson, on an after tax basis, for the net
increase in his total federal, state, and local income tax liability that
results from the compensation received being subject to any New York state or
local income taxes. The reimbursement amount is determined by the Compensation
Committee, upon the submission of proper substantiation Mr.&nbsp;Friedson.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Friedson&#146;s employment agreement contains certain non-competition,
non-disclosure and non-solicitation covenants. Mr.&nbsp;Friedson can be terminated
for cause, in which case all obligations of Applica under the agreement
immediately terminate, or without cause, in which case he is entitled to a lump
sum payment equal to (1)&nbsp;five times his annual base salary and (2)&nbsp;five times
his prior year performance bonus, plus specified welfare benefits. If, at any
time during the term of the agreement, there is a change in control of Applica
and within one year after such change in control, (1)&nbsp;Mr.&nbsp;Friedson is
terminated without cause or (2)&nbsp;if he terminates his employment under specific
circumstances, then Applica must pay Mr.&nbsp;Friedson a lump sum equal to five
times his base salary and five times his prior year performance bonus, along
with specified welfare benefits. Additionally, any outstanding options held by
Mr.&nbsp;Friedson may be exercised and the underlying shares sold without
restrictions imposed by Applica. Pursuant to his employment agreement, if any
portion of the change-in-control payment made to Mr.&nbsp;Friedson is subject to an
excise tax pursuant to Section&nbsp;4999 of the Internal Revenue Code, Applica must
also make a payment to him in an amount equal to the excise tax imposed.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the termination of his employment contract (other than as a result of
a change in control), Mr.&nbsp;Friedson will be retained by Applica as an advisor
and consultant for a five-year term, which is automatically extended for an
additional year on each anniversary of the term. Mr.&nbsp;Friedson&#146;s annual
compensation during such advisory term will be 60% of his average annual base
salary and bonuses for the three years prior to the start of such term. If
there is a change in control of Applica during the advisory term, Mr.&nbsp;Friedson
has the option of terminating his services. In such event, Applica must pay
Mr.&nbsp;Friedson a lump sum equal to the compensation he would have earned during
the remainder of the term, discounted by 10% for each year by which such
payments are accelerated.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Harry D. Schulman</B>. In August&nbsp;1999, Applica Incorporated entered into an
employment agreement with Harry D. Schulman, its President and Chief Executive
Officer. Under this agreement, Mr.&nbsp;Schulman is employed for continuous
three-year periods such that on each anniversary of the agreement, the term is
automatically extended for an additional year unless written notice of an
intention not to extend is given by either party. The agreement provides for
minimum annual base salary, subject to adjustment based on the increase in the
consumer price index, in addition to other benefits and annual stock option
grants at the discretion of the Compensation Committee. Mr.&nbsp;Schulman&#146;s current
annual base salary is $561,834. The agreement also provides for an automobile
or monthly automobile allowance. Under the agreement, Mr.&nbsp;Schulman is entitled
to an annual performance bonus based upon Applica&#146;s achievement of certain
objective earnings goals and his completion of personal performance goals set
by the Compensation Committee each year. Mr.&nbsp;Schulman is also entitled to such
additional bonuses as may be determined from time to time by the Compensation
Committee. Additionally, Applica provides Mr.&nbsp;Schulman with life insurance in
an amount equal to five times his annual base salary. Mr.&nbsp;Schulman also
receives reimbursement of (1)&nbsp;annual dues in a country club and (2)&nbsp;tax
preparation and financial planning on an annual basis up to a maximum of
$5,000.


<P align="center" style="font-size: 10pt">19
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Schulman&#146;s employment agreement contains certain non-competition,
non-disclosure and non-solicitation covenants. Mr.&nbsp;Schulman can be terminated
for cause, in which case all obligations of Applica under the agreement
immediately terminate, or without cause, in which case he shall be entitled to
a lump sum payment equal to (1)&nbsp;three times his annual base salary and (2)
three times his prior year performance bonus, plus specified welfare benefits.
If, at any time during the term of the agreement, there is a change in control
of Applica and within one year after such change in control (1)&nbsp;Mr.&nbsp;Schulman is
terminated without cause or (2)&nbsp;if he terminates his employment under specific
circumstances, then Applica must pay Mr.&nbsp;Schulman a lump sum equal to three
times his base salary and three times his prior year performance bonus, along
with specified welfare benefits. Additionally, any outstanding options held
by Mr.&nbsp;Schulman may be exercised and the underlying shares sold without
restrictions imposed by Applica. Pursuant to his employment agreement, if any
portion of the change-in-control payment made to Mr.&nbsp;Schulman is subject to an
excise tax pursuant to Section&nbsp;4999 of the Internal Revenue Code, Applica must
also make a payment to him in an amount equal to the excise tax imposed.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Michael J. Michienzi</B>. In July&nbsp;2000, Applica Consumer Products, Inc.
entered into an employment agreement with Michael J. Michienzi, its Senior Vice
President &#150; Global Business Development. Under this agreement, Mr.&nbsp;Michienzi
is employed until June&nbsp;30, 2004, which term is automatically extended each year
for an additional one-year period unless written notice of an intention not to
extend is given by either party. The agreement provides for minimum annual
base salary, subject to adjustment based on the increase in the consumer price
index, in addition to other benefits and annual stock option grants at the
discretion of the Compensation Committee. Mr.&nbsp;Michienzi&#146;s current annual base
salary is $345,358. The agreement also provides for an automobile allowance of
$975 per month. Under the agreement, Mr.&nbsp;Michienzi is entitled to an annual
performance bonus based upon Applica&#146;s achievement of certain objective
earnings goals and his completion of personal performance goals set by the
Compensation Committee each year. The performance bonus can be between 20% and
50% of his base salary, depending on his performance. Additionally, Applica
provides Mr.&nbsp;Michienzi with life insurance in an amount equal to five times his
annual base salary. Mr.&nbsp;Michienzi also receives reimbursement of (1)&nbsp;annual
dues in a country club and (2)&nbsp;tax preparation and financial planning on an
annual basis up to a maximum of 1% of his annual base salary.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Michienzi&#146;s agreement contains certain non-competition, non-disclosure
and non-solicitation covenants. Mr.&nbsp;Michienzi can be terminated for cause, in
which case all obligations of the company under the agreement immediately
terminate, or without cause, in which case he is entitled to a lump sum payment
equal to two and one-half times his base salary and two and one-half times his
prior year performance bonus, plus specified welfare benefits. If, at any time
during the term of the agreement, there is a change in control of Applica and
within one year after such change in control (1)&nbsp;Mr.&nbsp;Michienzi is terminated
without cause or (2)&nbsp;if he terminates his employment under specific
circumstances, the company must pay Mr.&nbsp;Michienzi a lump sum equal to two and
one-half times his base salary and two and one-half times his prior year
performance bonus, along with specified welfare benefits. Additionally, any
outstanding options held by Mr.&nbsp;Michienzi may be exercised and the underlying
shares sold without restrictions imposed by Applica. Pursuant to his
employment agreement, if any portion of the change-in-control payment made to
Mr.&nbsp;Michienzi is subject to an excise tax pursuant to Section&nbsp;4999 of the
Internal Revenue Code, the company must also make a payment to him in an amount
equal to the excise tax imposed.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Terry Polistina</B>. In July&nbsp;2000, Applica Incorporated entered into an
employment agreement with Terry Polistina, its Senior Vice President and Chief
Financial Officer. Under this agreement, Mr.&nbsp;Polistina is employed until June
30, 2004, which term will be automatically extended each year for an additional
one-year period unless written notice of an intention not to extend is given by
either party. The agreement provides for minimum annual base salary, subject
to adjustment based on the increase in the consumer price index, in addition to
other benefits and annual stock option grants at the discretion of the
Compensation Committee. Mr.&nbsp;Polistina&#146;s current annual base salary is
$275,002. The agreement also provides for an automobile allowance of $900 per
month. Under the agreement, Mr.&nbsp;Polistina is entitled to an annual performance
bonus based upon Applica&#146;s achievement of certain objective earnings goals and
his completion of personal performance goals set by the Compensation Committee
each year. The performance bonus can be between 5% and 25% of his base salary,
depending on his performance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Polistina&#146;s agreement contains certain non-competition, non-disclosure
and non-solicitation covenants. Mr.&nbsp;Polistina can be terminated for cause, in
which case all obligations of the company under the agreement immediately
terminate, or without cause, in which case he is entitled to a lump sum payment
equal to one and one-half times his base salary and one and one-half times his
prior year performance bonus, plus specified welfare benefits. If, at any time
during the term of the agreement, there is a change in control of Applica and
within one year


<P align="center" style="font-size: 10pt">20
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">after such change in control (1)&nbsp;Mr.&nbsp;Polistina is terminated without cause
or (2)&nbsp;if he terminates his employment under specific circumstances, the
company must pay Mr.&nbsp;Polistina a lump sum equal to one and one-half times his
base salary and one and one-half times his prior year performance bonus, along
with specified welfare benefits. Additionally, any outstanding options held
by Mr.&nbsp;Polistina may be exercised and the underlying shares sold without
restrictions imposed by Applica. Pursuant to his employment agreement, if any
portion of the change-in-control payment made to Mr.&nbsp;Polistina is subject to an
excise tax pursuant to Section&nbsp;4999 of the Internal Revenue Code, the company
must also make a payment to him in an amount equal to the excise tax imposed.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Albio Espinosa</B>. In July&nbsp;1989, Applica Manufacturing, S. de R.L. de C.V.
entered into an employment agreement with Albio Espinosa, who currently serves
as Vice President &#150; Worldwide Manufacturing of Applica Consumer Products, Inc.
The contract is a standard agreement required by Mexican law and includes
typical provisions for vacation and payment of salary, which at December&nbsp;31,
2003 was approximately $230,145. The contract also includes certain
non-disclosure provisions.


<P align="center" style="font-size: 10pt">21
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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="center" style="font-size: 10pt"><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Matters Relating to Ourimbah Investment Limited</B>. Ourimbah Investment
Limited, a Hong Kong company, owns approximately 7.7% of the outstanding common
stock of Applica. Messrs.&nbsp;Lai Kin and Lam King Loi are majority owners of
Ourimbah. Mr.&nbsp;Lai Kin serves as a member of the Board of Directors of Applica
and is the former Chairman of Applica Durable Manufacturing Limited, Applica&#146;s
Hong Kong manufacturing subsidiary. Mr.&nbsp;Lam King Loi is the former Vice
Chairman of Applica Durable Manufacturing Limited.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;1994, in connection with the purchase by Applica of the remaining
20% of the outstanding shares of Applica Durable Manufacturing Limited from
Ourimbah, Applica agreed, upon a change of control of Applica prior to July
2009 (as defined in the acquisition agreement), to make an additional payment
to Ourimbah in respect of the shares of Applica Durable being purchased under
the agreement. The payment is equal to the greater of (i)&nbsp;the same multiple of
earnings per share paid for the shares of common stock of Applica received in
connection with such change of control or (ii)&nbsp;the same multiple of net asset
value per share paid for the shares of common stock of Applica received in
connection with such change of control.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, Applica agreed to use its best efforts to recommend to its
shareholders and directors that two individuals be nominated by Mr.&nbsp;Lai Kin and
deemed suitable by Applica be appointed as members of Applica&#146;s Board of
Directors. Applica further agreed to maintain the composition of Durable&#146;s
Board of Directors equally divided between designees of Ourimbah and persons
selected by Applica. Accordingly, for so long as (i)&nbsp;such designees of
Ourimbah who are present members of the Board of Directors of Durable remain
shareholders of Ourimbah, and (ii)&nbsp;Ourimbah remains a shareholder of Applica,
Applica must vote its shares of Durable to appoint such designees of Ourimbah
to the Durable Board. When any member of the Durable Board who has been
designated by Ourimbah ceases to be a shareholder of Ourimbah, such designee
shall no longer be entitled to serve on the Durable Board, and Applica shall
have the right to designate a replacement member to the Durable Board in its
sole discretion.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, Applica has agreed to use its best efforts to recommend to
its shareholders and directors that Lai Kin be appointed as, and remain a
member of, Applica&#146;s Board of Directors for such time as Mr.&nbsp;Lai (or Ourimbah)
continues to be a shareholder of Applica and continues to be employed by
Durable and/or any other affiliate of Applica.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applica Durable Manufacturing Limited leases certain factories and worker
dormitories in China from Ourimbah, which facilitated the building of such
factories and dormitories with the local government. The rental payments made
to Ourimbah during the year ended December&nbsp;31, 2003 totaled approximately
$838,000. The rental charges are generally comparable to the rates charged
Applica Durable Manufacturing Limited by the local government for similar
buildings and dormitories.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Loans</B>. Applica has a loan outstanding to David M. Friedson, its Chairman
of the Board. The loan, which is unsecured, bears interest at LIBOR plus 1.5%
per annum (2.62% at December&nbsp;31, 2003) and is payable upon demand. Interest is
payable on the due date. At December&nbsp;31, 2003, the balance of such loan,
including accrued interest, was approximately $1,039,000.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;1999, Applica sold 210,000 shares of its common stock to Mr.
Friedson at the fair market value of $7.125 per share and provided a loan in
the amount of $1,496,250 that was used in connection with the purchase of such
shares. The loan is on a full recourse basis and is secured by shares of
common stock held by Mr.&nbsp;Friedson. The loan is due in April&nbsp;2005. The loan
bears interest at the rate of LIBOR plus 2.75% per annum (3.87% at December&nbsp;31,
2003). Interest is payable on the due date. The amount due to Applica,
including accrued interest, at December&nbsp;31, 2003 was approximately $1,949,000.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Sales Representative Relationships. </B>Applica Consumer Products, Inc. uses
the services of TJK Sales, Inc. (&#147;TJK&#148;), an independent sales representative.
Thomas J. Kane, a member of Applica&#146;s Board of Directors, is the sole
shareholder and Chief Executive Officer of TJK. Applica Consumer Products,
Inc. entered into an agreement with TJK, pursuant to which Applica agreed to
pay $3,000 per month plus certain expenses in return for TJK&#146;s services as a
sales representative to J.C. Penney. The agreement may be terminated by either
party on 30&nbsp;days&#146; notice. Payments to TJK totaled approximately $36,000 in
2003. Applica also reimburses TJK for related out-of-pocket expenses.


<P align="center" style="font-size: 10pt">22
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Employment and Related Matters</B>. In 1983, Belvin Friedson, the founder of
Applica, entered into an employment agreement with Applica. Pursuant to his
employment agreement, Mr.&nbsp;Friedson currently provides advisory services to
Applica. In 2003, Mr.&nbsp;Friedson received annual compensation from Applica of
approximately $375,000 under such agreement. He also participates in the
executive life insurance plan and has use of a company car. Mr.&nbsp;Friedson is
the father of David M. Friedson, Applica&#146;s Chairman of the Board.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barbara Friedson Garrett, the sister of David Friedson, has been employed
by Applica Consumer Products, Inc. as a Senior Vice President since 1983 and
served in other capacities with Applica since 1973. Ms.&nbsp;Garrett&#146;s current
employment agreement, dated July&nbsp;18, 1983, will be terminated in July&nbsp;2004.
After such time, Ms.&nbsp;Garrett will remain an employee of Applica Consumer
Products, Inc., but her compensation will be reduced to approximately $175,000.
Ms.&nbsp;Garrett was paid $358,000 for her services during the year ended December
31, 2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Lai Kin, a majority owner of Ourimbah, serves as a member of the Board
of Directors of Applica and the former Chairman of Applica Durable
Manufacturing Limited and was paid total compensation of approximately $563,000
for his services during the year ended December&nbsp;31, 2003. Mr.&nbsp;Lai has been
employed by Applica Durable since 1970. Mr.&nbsp;Lam King Loi, a majority owner of
Ourimbah, is the former Vice Chairman of Applica Durable Manufacturing Limited
and was paid total compensation of approximately $295,000 for his services
during the year ended December&nbsp;31, 2003. Mr.&nbsp;Lam has been employed by Applica
Durable since 1970.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ben Lai, the son of Mr.&nbsp;Lai Kin, is employed by Applica Durable
Manufacturing Limited as the Managing Director and was paid total compensation
of approximately $368,000 for his services during the year ended December&nbsp;31,
2003. Ben Lai has been employed by Applica Durable since 1990. Desmond Lai,
the son of Mr.&nbsp;Lai Kin, is employed by Applica Consumer Products, Inc. and was
paid total compensation of approximately $321,000 for his services during 2003.
Desmond Lai has been employed by Applica Durable since 1986. Eliza Lai, the
daughter of Mr.&nbsp;Lai Kin, is employed by Applica Durable Manufacturing Limited
as the General Manager &#151; Purchasing and was paid total compensation of
approximately $187,000 for her services during the year ended December&nbsp;31,
2003, respectively. Eliza Lai has been employed by Applica Durable since 1983.
Jannie Fung, Desmond Lai&#146;s wife, was employed by Applica Durable Manufacturing
Limited as a Senior Product Manager and was paid total compensation of
approximately $83,530 for her services during 2003. Jannie Fung has been
employed by Applica Durable since 1977 and resigned her position effective
April&nbsp;2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Dubel Industrial Limited</B>. Applica Durable Manufacturing was the majority
shareholder of Dubel Industrial Limited, which owned a dormitory building
located in China. Certain employees of Durable who resided in the dormitories
were given shares of Dubel as a form of employee benefit. As a shareholder,
these employees would also receive cash distributions based on the rental
payments received by Dubel. In December&nbsp;2003, Applica Durable purchased the
shares of Dubel held by employees and Dubel is currently a 100% owned
subsidiary of Applica Durable. In 2003, in connection with the cash
distributions and the repurchase of the shares, Lai Kin and his family received
approximately $109,400 and Lam King Loi received $17,800.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Charitable Contributions</B>. During 2003, Applica made contributions to the
United Way of approximately $203,000. Barbara Friedson Garrett serves as a
member of the Executive Committee of the United Way of Miami-Dade County.


<P align="center" style="font-size: 10pt">23
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
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<P align="center" style="font-size: 10pt"><B>PROPOSAL TWO</B>


<!-- link1 "RATIFICATION OF REAPPOINTMENT OF INDEPENDENT ACCOUNTANTS" -->
<DIV align="left"><A NAME="008"></A></DIV>

<DIV align="center" style="font-size: 10pt"><B>RATIFICATION OF
REAPPOINTMENT OF INDEPENDENT ACCOUNTANTS</B></div>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee of the Board of Directors has appointed Grant Thornton
LLP as Applica&#146;s independent accountants for the fiscal year ended December&nbsp;31,
2004, subject to the ratification of the appointment by the shareholders.
Grant Thornton has served as Applica&#146;s independent accountants since 1976. A
representative of Grant Thornton LLP is expected to be present at the annual
meeting to make a statement, if he desires to do so, and to respond to
appropriate questions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Audit Fees</B>. Fees paid to Grant Thornton relating to the audit of the
consolidated annual financial statements, including statutory audits of foreign
subsidiaries, and its limited reviews of Applica&#146;s unaudited condensed
consolidated interim financial statements totaled approximately $667,000 in
2003 and $661,000 in 2002.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Audit-Related Fees</B>. Fees for audit related services paid to Grant Thornton
totaled approximately $137,000 in 2003 and $71,000 in 2002. Audit related
services included fees for employee benefit plans, internal control reviews and
accounting advice.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Tax Fees</B>. Fees for tax services paid to Grant Thornton, including tax
compliance, tax advice and tax planning, totaled approximately $326,000 in 2003
and $250,000 in 2002.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>All Other Fees</B>. No other fees were paid to Grant Thornton LLP during 2003
or 2002.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Pre-Approval Policy</B>. The Audit Committee has adopted the Audit and
Non-Audit Services Pre-Approval Policy, which sets forth the procedures and the
conditions pursuant to which services proposed to be performed by Grant
Thornton may be pre-approved. As permitted by applicable regulations, the
policy uses a combination of specific pre-approval on a case-by-case basis of
individual engagements and general pre-approval of certain categories of
engagements up to predetermined dollar thresholds that are reviewed annually by
the Audit Committee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pre-approval policy was adopted on April&nbsp;28, 2003. All engagements of
Grant Thornton to perform any audit services and non-audit services since that
date have been pre-approved by the Audit Committee in accordance with the
policy. The policy has not been waived in any instance. The Audit Committee
has considered whether the provision of non-audit services is compatible with
maintaining the auditor&#146;s independence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that shareholders do not ratify the appointment of Grant
Thornton, the Audit Committee of the Board of Directors will reconsider the
appointment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends that the shareholders vote &#147;FOR&#148;
ratification of the appointment of Grant Thornton LLP as Applica&#146;s independent
accountants for fiscal 2004.</B>

<!-- link1 "INFORMATION CONCERNING SHAREHOLDER PROPOSALS<BR> AND DIRECTOR NOMINATIONS" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="center" style="font-size: 10pt"><B>INFORMATION CONCERNING SHAREHOLDER PROPOSALS<BR>
AND DIRECTOR NOMINATIONS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Shareholder Proposals</B>. Any shareholder who intends to present a proposal
at the 2005 annual meeting of shareholders and who wishes to have their
proposal included in the proxy statement for that meeting, must deliver the
proposal, not exceeding 500 words in length, to the Corporate Secretary of
Applica in writing not later than December&nbsp;2, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Advance Notice Procedures</B>. Under Applica&#146;s Bylaws, nominations for
director may be made only by the Board or a Board committee, or by a shareowner
entitled to vote who delivers notice to Applica not less than 90&nbsp;days nor more
than 120&nbsp;days prior to the first anniversary of the date of the notice of the
preceding year&#146;s annual meeting. For Applica&#146;s meeting in the year 2005, we
must receive this notice on or after December&nbsp;2, 2004, and on or before January
1, 2005. Nominations that are timely received will be considered by the
Corporate Governance and Nominating Committee of the Board of Directors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bylaws also provide that no business may be brought before an annual
meeting except as specified in the notice of meeting or as otherwise brought
before the meeting by or at the direction of the Board or by a shareholder
entitled to vote who has delivered notice to the company (containing certain
information specified in the


<P align="center" style="font-size: 10pt">24
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">Bylaws) within the time limits described above for delivering notice of a
nomination for the election of a director. Therefore, any shareholder proposal
submitted other than for inclusion in our proxy materials must be received
within the time limits or will be considered untimely.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the full text of the Bylaw provisions discussed above may be
obtained by writing to Applica&#146;s Corporate Secretary at 5980 Miami Lakes Drive,
Miami Lakes, Florida 33014-2467.

<!-- link1 "OTHER BUSINESS" -->
<DIV align="left"><A NAME="010"></A></DIV>

<P align="center" style="font-size: 10pt"><B>OTHER BUSINESS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this proxy statement, the Board of Directors knows of no
other business to be presented at the 2004 annual meeting of shareholders. If
any other business should properly come before the meeting, including any
matter omitted from the proxy statement pursuant to the rules of the Securities
and Exchange Commission, the persons named in the accompanying proxy will vote
thereon in accordance with the recommendation of the Board of Directors, or, in
the absence of such a recommendation, in accordance with their judgment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Mailing Address</B>. The mailing address of our principal executive offices
is 5980 Miami Lakes Drive, Miami Lakes, Florida 33014.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3">By Order of the Board of Directors<BR>
<BR>
&nbsp;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000">/s/ Lisa R. Carstarphen
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">Lisa R. Carstarphen&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">Corporate Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Miami Lakes, Florida<BR>
April&nbsp;2, 2004


<P align="center" style="font-size: 10pt">25
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>Exhibit&nbsp;A</B>



<P align="center" style="font-size: 10pt"><B>APPLICA INCORPORATED<BR>
AUDIT COMMITTEE CHARTER</B>



<P align="left" style="font-size: 10pt"><B><I>Purpose</I></B>




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the Audit Committee shall be (1)&nbsp;to assist the Board of
Directors in its oversight of:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the integrity of the financial statements of the Company;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company&#146;s compliance with legal and regulatory requirements;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the independent auditor&#146;s qualifications and independence; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the performance of the Company&#146;s internal audit function and independent auditors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">and (2)&nbsp;to prepare an Audit Committee Report as required by the Securities and
Exchange Commission to be included in the Company&#146;s Annual Proxy Statement.


<P align="left" style="font-size: 10pt"><B><I>Duties and Responsibilities</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee shall have the following duties and responsibilities:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To discuss the Company&#146;s annual audited financial statements and
quarterly financial statements with management and the independent
auditor, including the Company&#146;s disclosures under &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations&#148;
and all matters required to be reviewed under applicable legal, regulatory
or New York Stock Exchange requirements.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To discuss the Company&#146;s earnings press releases, as well as financial
information and earnings guidance provided to analysts and rating
agencies.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review the Company&#146;s financial reporting and accounting standards and
principles, significant changes in such standards or principles, or in
their application, and the key accounting decisions affecting the
Company&#146;s financial statements, including alternatives to, and the
rationale for, the decisions made.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review with the independent auditor its judgments as to the quality,
not just the acceptability, of the Company&#146;s accounting principles and
such matters as are required to be discussed with the Audit Committee
under generally accepted accounting principles.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To recommend, for shareholder approval, the independent auditor to
examine the Company&#146;s accounts, controls and financial statements.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To be directly responsible for the appointment, compensation, retention,
evaluation, termination and oversight of the work of the Company&#146;s
independent auditor. The Committee shall be directly responsible for
overseeing the work of the independent auditor (including resolution of
disagreements between management and the auditor regarding financial
reporting) for the purpose of preparing and issuing an audit report or
performing other audit, review or attest services for the Company. The
Company&#146;s independent auditor shall report directly to the Audit
Committee.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To establish policies and procedures for the review and pre-approval of
all audit and non-audit services provided to the Company by the
independent auditor (including the fees and terms thereof), with
exceptions for de minimis amounts under certain circumstances as described
by law. The Committee has the sole authority to approve all engagement
fees and terms, as well as all significant non-audit engagements with the
independent auditor.
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;&nbsp;&nbsp;8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At least annually, to obtain and review a report by the independent
auditor describing (a)&nbsp;the firm&#146;s internal quality-control procedures and
(b)&nbsp;any material issues raised by the most recent internal quality-control
review, or peer review, of the firm, or by any inquiry or investigation by
governmental or professional authorities, within the preceding five years,
respecting one or more independent audits carried out by the firm, and any
steps taken to deal with such issues.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;&nbsp;&nbsp;9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review at least annually all relationships between the independent
auditor and the Company in order to assess the independence of the
auditor.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review and discuss with the independent auditor (a)&nbsp;its audit plans,
and audit procedures, including the scope, fees and timing of the audit;
(b)&nbsp;the results of the annual audit examination and accompanying
management letters; and (c)&nbsp;the results of the independent auditor&#146;s
procedures with respect to interim periods.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review and evaluate the qualifications, performance and independence
of the independent auditor and of the lead audit partner of the
independent auditory and present its conclusions with respect to the
independent auditor to the full Board not less than annually.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review with management and the independent auditor, as appropriate,
any audit problems or difficulties encountered in the course of the audit
work and management&#146;s response thereto, including any restrictions on the
scope of the independent auditor&#146;s activities or on access to requested
information and any significant disagreements with management.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To set clear hiring policies for employees or former employees of the
independent auditors.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review and approve the internal audit staff function, including (a)
purpose, authority and organizational reporting lines; (b)&nbsp;annual audit
plan, budget and staffing; and (c)&nbsp;concurrence in the appointment and
compensation of the Director of the Internal Audit Department.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review with the management, the independent auditor, the Director of
the Internal Audit Department, or such others as the Audit Committee deems
appropriate, (a)&nbsp;the adequacy and effectiveness of the Company&#146;s internal
controls (including any significant deficiencies and significant changes
in internal controls reported to the Audit Committee by the independent
auditor or management); (b)&nbsp;the Company&#146;s internal audit procedures and
internal system of audit and financial controls and (c)&nbsp;the adequacy and
effectiveness of the Company&#146;s disclosure controls and procedures, and
management&#146;s report thereon.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review policies and procedures with respect to executive officers&#146;
expense accounts and perquisites, including their use of corporate assets,
and consider the results of any review of these areas by the Internal
Audit Department or the independent auditor.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review and approve related party transactions.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To discuss policies with respect to risk assessment and risk management,
including the Company&#146;s major financial risk exposure and steps taken by
management to monitor and mitigate such exposure.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To establish procedures for (a)&nbsp;the receipt, retention and treatment of
complaints received by the Company regarding accounting, internal
accounting controls, or audit and (b)&nbsp;the confidential, anonymous
submission by employees of the Company of concerns regarding questionable
accounting or auditing matters.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To review and investigate any matters pertaining to the integrity of
management, including conflicts of interest, or adherence to standards of
business conduct as required in the policies of the Company. In
connection with these reviews, the Committee shall meet, as deemed
appropriate, with the Vice President &#150; Legal and other company officers or
employees.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To prepare and publish an annual Committee report in the Company&#146;s proxy
statement.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At least annually, to review the adequacy of this Charter and recommend
any proposed changes to the Board of Directors for approval.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When appropriate, to designate one or more of its members to perform
certain of its duties on its behalf, subject to such reporting to or
ratification by the Audit Committee as it shall direct.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To perform any other activities consistent with this Charter, the
Corporation&#146;s By-laws and governing law, as the Committee or the Board
deems necessary or appropriate.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B><I>Membership</I></B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Committee will have a minimum of three directors.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All Committee members shall be &#147;independent&#148; directors as determined in accordance with the New York Stock Exchange and
Securities and Exchange Commission rules and regulations, and shall be free from any relationship that, in the opinion of
the Board, would interfere with the exercise of his or her independent judgment as a member of the Committee.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All members of the Committee shall be financially literate and have sufficient financial experience and ability to enable
them to discharge their duties and responsibilities.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At least one member of the Committee shall have accounting or related financial management expertise, as the Company&#146;s
Board of Directors interprets such qualification in its business judgment.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board will appoint the Committee members and a Chairman on an annual basis.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board may fill vacancies on the Committee.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board may remove a Committee member from the membership of the Committee at any time with or without cause.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Committee members shall not serve simultaneously on the audit committee of more than two other public companies.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B><I>Meetings</I></B>


<P align="left" style="font-size: 10pt">The Committee shall meet at least six times annually, or more frequently as
circumstances dictate. As part of its job to foster open communication, the
Committee shall meet at least annually with management, the director of the
Internal Audit Department and the independent auditors in separate executive
sessions to discuss any matters that the Committee or each of these groups
believe should be discussed. The Committee may require any Company officer or
employee or the Company&#146;s outside counsel or external auditor to attend a
Committee meeting or to meet with any members of, or consultants to, the
Committee, and to provide pertinent information, as necessary.


<P align="left" style="font-size: 10pt">The Committee shall maintain minutes and other relevant documentation of all
its meetings.



<P align="left" style="font-size: 10pt"><B><I>Consultants</I></B>


<P align="left" style="font-size: 10pt">The Committee has sole authority to retain and terminate independent legal or
accounting experts and other advisors of its selection as it determines
necessary to carry out its duties and responsibilities, including sole
authority to approve such consultant&#146;s fees and other retention terms.



<P align="left" style="font-size: 10pt"><B><I>Board of Directors</I></B>


<P align="left" style="font-size: 10pt">The Committee shall report its actions and recommendations to the Board of
Directors after each Committee meeting and provide copies of the minutes of the
Committee meetings to the Board of Directors.



<P align="left" style="font-size: 10pt"><B><I>Annual Performance Evaluation</I></B>


<P align="left" style="font-size: 10pt">The Committee shall perform an annual self-evaluation of the performance of its
duties and responsibilities.




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>APPLICA INCORPORATED</B>



<P align="center" style="font-size: 10pt"><B>PROXY SOLICITED ON BEHALF OF BOARD OF DIRECTORS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints Adam L. Kaplan and Harry D. Schulman and
each of them, each with full power of substitution, proxies to vote at the
Annual Meeting of Shareholders of Applica Incorporated (the &#147;Company&#148;) to be
held at the University of Miami, James W. McLamore Executive Education Center,
5250 University Drive, Coral Gables, Florida 33124 on Tuesday, May&nbsp;11, 2004, at
10:00&nbsp;a.m., local time, and at any adjournments thereof, hereby revoking any
proxies heretofore given, to vote all shares of common stock of the Company
held or owned by the undersigned as directed on the reverse side of this card,
and in their discretion upon such other matters as may come before the meeting.

<P align="left" style="font-size: 10pt"><B>This Proxy when properly executed will be voted as specified on the reverse
side. If no direction is made, the Proxy will be voted &#147;FOR&#148; Proposal 1 and
Proposal 2.</B>



<P align="center" style="font-size: 10pt"><B>(Continued and to be signed on the other side)</B>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>Annual Meeting of Shareholders of<BR>
APPLICA INCORPORATED</B>



<P align="center" style="font-size: 10pt"><B>May&nbsp;11, 2004</B>



<P align="center" style="font-size: 10pt"><B>Please date, sign and mail your proxy card back as soon as possible.</B>



<P align="center" style="font-size: 10pt"><B>Please detach and mail in the envelope provided.</B>



<P align="center" style="font-size: 10pt"><B>THE BOARD OF DIRECTORS RECOMMENDS A VOTE &#147;FOR&#148; THE ELECTION OF DIRECTORS AND<BR>
&#147;FOR&#148; PROPOSAL 2. PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED<BR>
ENVELOPE. PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE</B>


<P align="left" style="font-size: 10pt"><B>Proposal 1. </B>Election of three members to Class&nbsp;II of the Company&#146;s Board of
Directors to serve until the 2007 Annual Meeting of Shareholders or until their
successors are duly elected and qualified.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font face="wingdings">&#111;</font>

</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FOR ALL THE NOMINEES</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font face="wingdings">&#111;</font>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>WITHHOLD AUTHORITY FOR ALL NOMINEES</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font face="wingdings">&#111;</font>

</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FOR ALL EXCEPT </B>(See instructions below)</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nominees:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">o
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leonard Glazer</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">o
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lai Kin</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">o
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paul K. Sugrue</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><B>INSTRUCTION: </B>To withhold authority for any individual nominee(s), mark &#147;FOR ALL
EXCEPT&#148; and fill in the circle next to each nominee you wish to withhold, as
shown here <FONT face="wingdings">&#108;</FONT>.


<P align="left" style="font-size: 10pt"><B>Proposal 2. </B>Ratification of the reappointment of Grant Thornton LLP as the
Company&#146;s independent accountants for the year ended December&nbsp;31, 2004.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font face="wingdings">&#111;</font>


</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FOR</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font face="wingdings">&#111;</font>


</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>AGAINST</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><font face="wingdings">&#111;</font>


</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ABSTAIN</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">The undersigned hereby acknowledges receipt of a Notice of Annual Meeting of
Shareholders of the Company called for May&nbsp;11, 2004 and a Proxy Statement for
the Annual Meeting prior to the approving of this proxy.



<P align="left" style="font-size: 10pt"><B>PLEASE MARK, SIGN, DATE AND RETURN IMMEDIATELY.</B>


<P align="left" style="font-size: 10pt">To change the address on your account, please check the box at right and
indicate your new address in the address space above. Please note that changes
to the registered name(s) on the account may not be submitted via this method.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" nowrap valign="top">Signature of
Shareholder ________________________________________________</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Date: ___________________________</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">Signature of
Shareholder ________________________________________________</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Date: ___________________________</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Note</B>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">This proxy must be signed exactly as the name appears hereon. Where
shares are held jointly, each holder should sign. When signing as
executor, administrator, executor, attorney, trustee or guardian, please
give full title as such. If the signer is a corporation, please sing full
corporate name by duly authorized officer, giving full title as such. If
signer is a partnership, please sign in partnership name by authorized
person.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


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