Document:

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                                                                    EXHIBIT 4.48

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                                               Commission

121201                                     License Reference No. __________
                                           AGREEMENT with an effective date of
                                           January 1, 2001, between
                                           INTERNATIONAL BUSINESS MACHINES
                                           CORPORATION, a New York corporation
                                           (hereinafter called IBM), and
                                           CHARTERED SEMICONDUCTOR
                                           MANUFACTURING LTD., a
                                           corporation of Singapore
                                           (hereinafter called CHRT).

         Whereas, the parties desire to extend their License Agreement with an
Effective Date of January 1, 1995 to extend its term and to amend certain
definitions and other terms as provided herein.

         Whereas, each of the parties has the right (as GRANTOR herein) to grant
licenses to the other party (as GRANTEE herein) under certain patents and
desires to acquire a ********** license under such patents of the other party.

         Whereas, each of the parties expects to continue research and
development which will produce further patents and each party may require a
********** license under such patents of the other party.

         Whereas, in the interest of simplifying the record keeping and
accounting processes required with a full running royalty license for CHRT
Licensed Products, the parties have mutually agreed to this simplified, fixed
royalty percentage license based on CHRT's worldwide net revenue.

         Now, therefore, in consideration of the premises and mutual covenants
herein contained, IBM and CHRT agree as follows:

Section 1.            Definitions

1.1      "IBM Licensed Patents" shall mean all patents having claims reciting
methods or apparatus for manufacturing, assembling, testing and packaging
Semiconductor Apparatus:

1.1.1        issued or issuing on patent applications entitled to an

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         effective filing date prior to December 31, 2005;

1.1.2        which, but for this Agreement, would be infringed by
         CHRT's making, using, importing, leasing, offering for sale, selling or
         otherwise transferring a CHRT Licensed Product in the country in which
         such patent exists; and

1.1.3        under which patents or the applications therefor IBM or any of its
         Subsidiaries now has, or hereafter obtains, the right to grant licenses
         to CHRT of or within the scope granted herein without such grant or the
         exercise of rights
         thereunder resulting in the payment of royalties or other consideration
         by IBM or its Subsidiaries to third parties (except for payments
         between IBM and its Subsidiaries, and payments to third parties for
         inventions         made by said third parties while employed by IBM
         or any of its Subsidiaries).

The term "IBM Licensed Patents" shall also include said patent applications and
any patent reissuing on any of the aforesaid patents.

1.2      "IBM Licensed Products" shall mean Semiconductor Apparatus.

1.3      "Integrated Circuit" shall mean an integral unit including a plurality
of active and/or passive circuit elements formed at least in part of
Semiconductor Material and associated on, or in, one substrate comprising the
first level of packaging for such elements; such unit forming or contributing to
the formation of a circuit for performing electrical or electronic functions.

1.4      "Semiconductor Apparatus" shall mean Semiconductor Material,
Semiconductor Device, Semiconductor Circuit, Integrated Circuit and/or
Semiconductor Memories and any combination of such apparatus with other such
apparatus;

1.5      "Semiconductor Circuit" shall mean a circuit in which one or more
Semiconductor Devices are interconnected in one or more paths (including passive
circuit elements, if any) for performing

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fundamental electrical or electronic functions and, if provided therewith,
housing and/or supporting means therefor.

1.6      "Semiconductor Device" shall mean a device and any material therefor,
including but not limited to device structures such as transistors, diodes,
capacitors, resistors, conductors and dielectrics, comprising a body of one or
more Semiconductor Materials and one or more electrodes associated therewith
and, if provided therewith, housing and/or supporting means therefor.

1.7      "Semiconductor Material" shall mean any material whose conductivity is
intermediate to that of metals and insulators at room temperature and whose
conductivity, over some temperature range, increases with increases in
temperature. Such materials shall include, but not be limited to, refined
products, reaction products, reduced products, mixtures and compounds.

1.8      "Semiconductor Memory" shall mean any instrumentality or aggregate of
instrumentalities, which instrumentality or aggregate is designed only for
storing digital information, intelligence or data by selectively setting or
presetting detectable states in Semiconductor Material forming at least a part
of such instrumentality or aggregate, such instrumentality or aggregate may
include powering means and auxiliary and/or support circuits (such as
regeneration means, true-complement generations means, address decoding means,
sensing means and selection means) to control the flow of such information,
intelligence or data into and out of such Semiconductor Memory.

1.9      "Subsidiary" of a party hereto or of a third party shall mean a
corporation, company or other entity:

1.9.1             more than fifty percent (50%) of whose outstanding shares or
         securities (representing the right to vote for the election of
         directors or other managing authority) are, now

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         or hereafter, owned or controlled, directly or indirectly, by a party
         hereto or such third party, but such corporation, company or other
         entity shall be deemed to be a Subsidiary only so long as such
         ownership or control exists; or

1.9.2    which does not have outstanding shares or securities, as may be the
         case in a partnership, joint venture or unincorporated association, but
         more than fifty percent (50%) of whose ownership interest representing
         the right to make the decisions for such corporation, company or other
         entity is, now or hereafter, owned or controlled, directly
         or indirectly, by a party hereto or such third party, but such
         corporation, company or other entity shall be deemed to be a Subsidiary
         only so long as such ownership or control exists.

1.10     "CHRT Licensed Patents" shall mean all patents, including utility
models and including design patents and registrations for type fonts (but not
including any other design patents or registrations):

1.10.1            issued or issuing on patent applications entitled to an
         effective filing date prior to December 31, 2005;

1.10.2            which, but for this Agreement, would be infringed by IBM's
         making, using, importing, leasing, offering for sale, selling or
         otherwise transferring an IBM Licensed Product in the country in which
         such patent exists; and

1.10.3            under which patents or the applications therefor CHRT or any
         of its Subsidiaries now has, or hereafter obtains, the right to grant
         licenses to IBM of or within the scope granted herein without such
         grant or the exercise of rights thereunder resulting in the payment of
         royalties or other consideration by CHRT or its Subsidiaries to third
         parties (except for payments between CHRT and its Subsidiaries, and
         payments to third parties for inventions made by said third parties
         while employed by CHRT or any of its Subsidiaries).

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The term "CHRT Licensed Patents" shall also include said patent applications and
any patent reissuing on any of the aforesaid patents.

1.11     "CHRT Licensed Products" shall mean Semiconductor Apparatus.

1.12     "CHRT Elected Country" shall mean one additional country where CHRT
owns, controls or has contracted for its use, physical assets and/or real
property for the manufacture of CHRT Licensed Products during the term of this
Agreement. CHRT shall provide written notice to IBM of the CHRT Elected Country
no later than ninety (90) days after manufacturing begins in such country and no
country shall be deemed to be a CHRT Elected Country in the absence of such
notice.

Section 2.            Licenses

2.1      Subject to the provisions of Section 2.4, IBM on behalf of itself and
its Subsidiaries grants to CHRT a ********** license under the IBM Licensed
Patents:

2.1.1             to make CHRT Licensed Products only in Singapore and
         one CHRT Elected Country;

2.1.2             to use, import, and lease, offer for sale, sell or
         otherwise transfer CHRT Licensed Products worldwide;

2.1.3             to use any apparatus in the manufacture or testing of CHRT
         Licensed Products and to practice any method or process in such
         manufacture or testing of CHRT Licensed Products; and

2.1.4             to have CHRT Licensed Products made in whole or in part by
         another manufacturer for the use and/or lease, offer for sale, sale or
         other transfer by CHRT only when the designs and specifications for
         such CHRT Licensed Products were provided by CHRT to the other
         manufacturer, whether developed by CHRT or received by CHRT from
         customers to whom the Licensed Products are to be sold; provided,
         however, the license under this section 2.1.4:

2.1.4.1                    shall only be under claims of IBM Licensed
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                           Patents, the infringement of which would be
                           necessitated by compliance with such designs and
                           specifications; and

2.1.4.2                    shall not apply to any CHRT Licensed Products in the
                           form manufactured or marketed by said other
                           manufacturer prior to CHRT's furnishing of said
                           designs and specifications.

         Unless CHRT informs IBM to the contrary, CHRT shall be deemed to have
         authorized said other manufacturer to make said CHRT Licensed Products
         under the license granted to CHRT in this Section 2.1.4 when the
         conditions specified herein are fulfilled. Within thirty (30) days of a
         written request identifying a product and a manufacturer, CHRT shall
         inform IBM of the quantity of such product, if any, manufactured by
         such manufacturer.

In the event that neither IBM nor any of its Subsidiaries has the right to grant
a license under any particular IBM Licensed Patent of the scope set forth above
in this Section 2.1, then the license granted herein under said IBM Licensed
Patent shall be of the broadest scope which IBM or any of its Subsidiaries has
the right to grant within the scope set forth above.

2.2      Subject to the provisions of Section 2.3, CHRT on behalf of itself and
its Subsidiaries grants to IBM a worldwide, fully paid-up, ********** license
under the CHRT Licensed Patents:

2.2.1             to make, use, import, and lease, offer for sale, sell or
           otherwise transfer IBM Licensed Products;

2.2.2             in the manufacturing or testing of IBM Licensed Products,
           to use any apparatus and practice any method or process; and

2.2.3      to have IBM Licensed Products made by another manufacturer for the
           use and/or lease, offer for sale, sale or other transfer by IBM only
           when the designs and specifications for such IBM Licensed Products
           were created by IBM (either solely or jointly with one or more third
           parties); provided, however, the license

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           under this Section 2.2.3:

2.2.3.1                      shall only be under claims of CHRT Licensed
                             Patents, the infringement of which would be
                             necessitated by compliance with such designs and
                             specifications; and

2.2.3.2                      shall not apply to any IBM Licensed Products in
                             the form manufactured or marketed by said other
                             manufacturer prior to IBM's furnishing of said
                             designs and specifications.

         Unless IBM informs CHRT to the contrary, IBM shall be deemed to have
         authorized said other manufacturer to make said IBM Licensed Products
         under the license granted to IBM in this Section 2.2.3 when the
         conditions specified herein are fulfilled. Within thirty (30) days of a
         written request identifying a product and a manufacturer, IBM shall
         inform CHRT of the quantity of such product, if any, manufactured by
         such manufacturer.

In the event that neither CHRT nor any of its Subsidiaries has the right to
grant a license under any particular CHRT Licensed Patent of the scope set forth
above in this Section 2.2, then the license granted herein under said CHRT
Licensed Patent shall be of the broadest scope which CHRT or any of its
Subsidiaries has the right to grant within the scope set forth above.

2.3      No license or immunity is granted by CHRT either directly or by
implication, estoppel or otherwise to any third parties acquiring items from IBM
for the combination of such acquired items with other items (including items
acquired from either party hereto) or for the use of such combination, even if
such acquired items have no substantial use other than as part of such a
combination.

2.4      No license or immunity is granted by IBM either directly or by
implication, estoppel or otherwise to any third parties

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acquiring items from CHRT for the combination of such acquired items with other
items (including items acquired from either party hereto) or for the use of such
combination, even if such acquired items have no substantial use other than as
part of such a combination; except that IBM shall not make any claim of
infringement against third parties of any IBM Licensed Patents with respect to
products acquired by such third parties from CHRT, even if such products are
combined with other products.

2.5      The parties agree that CHRT is not paying under this Agreement for any
rights under any IBM patents claiming the design, architecture or operation of
Semiconductor Apparatus and that no rights under any such IBM patents are
granted herein to CHRT or any third parties, either expressly or by implication.
The parties further agree that IBM's sole recourse with respect to past, present
or future claims of infringement of IBM patents not licensed herein to CHRT,
which claims are based upon the design, architecture or operation of CHRT
Licensed Products designed by third parties and manufactured, sold, leased or
otherwise transferred by CHRT, shall be against third parties who acquire such
CHRT Licensed Products, and IBM shall have no recourse of any such claims of
infringement against CHRT with respect to such unlicensed IBM patents.

Section 3.        Extension of License to Subsidiaries

3.1      The licenses granted herein shall include the right of the parties
hereto to sublicense their respective Subsidiaries and the right of such
sublicensed Subsidiaries to sublicense other Subsidiaries. Each sublicensed
Subsidiary shall be bound by the terms and conditions of this Agreement (other
than those of Section 5) as if it were named herein in the place of the party
with whom the sublicense originated. If a Subsidiary ceases to be a Subsidiary
and holds any patents or patent applications under which a party hereto is
licensed, such licenses shall

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continue for the term of such party's license. Any sublicense granted to a
Subsidiary shall terminate on the date such Subsidiary ceases to be a
Subsidiary.

Section 4.            Releases

4.1      IBM, on behalf of itself and its Subsidiaries which are Subsidiaries as
of the date of this Agreement, shall irrevocably release CHRT, its Subsidiaries
which are Subsidiaries as of the date of this Agreement, and its and their
respective customers, mediate and immediate, from any and all claims of
infringement of any IBM Licensed Patents, which claims have been made or which
might be made at any time, with respect to any item manufactured, used, leased,
sold or otherwise transferred by CHRT or its Subsidiaries before the effective
date of this Agreement, and with respect to any method practiced or
Semiconductor Device made in the manufacture or use of such item, to the extent
that such item or method or Semiconductor Device would have been licensed or the
subject of any immunity hereunder had it been manufactured, used, or leased,
sold or otherwise transferred or practiced by CHRT after the date of this
Agreement. The release contained herein shall not apply to any person other than
those specified in this Section 4.1 and shall not apply to the manufacture of
such items by any person other than CHRT or its Subsidiaries.

4.2      CHRT, on behalf of itself and its Subsidiaries which are Subsidiaries
as of the date of this Agreement, hereby irrevocably releases IBM, its
Subsidiaries which are Subsidiaries as of the date of this Agreement, and its
and their respective customers, mediate and immediate, from any and all claims
of infringement of any CHRT Licensed Patents, which claims have been made or
which might be made at any time, with respect to any item manufactured, used, or
leased, sold or otherwise transferred by IBM or its Subsidiaries before the
effective date of this Agreement, and with respect to any method practiced in
the manufacture or use of such item, to the extent that such item or method
would have been

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licensed or the subject of any immunity hereunder had it been manufactured,
used, or leased, sold or otherwise transferred or practiced by IBM after the
date of this Agreement. The release contained herein shall not apply to any
person other than those specified in this Section 4.2 and shall not apply to the
manufacture of such items by any person other than IBM or its Subsidiaries.

Section 5.                 Payment

5.1      As consideration for the licenses and other rights granted by IBM to
CHRT herein, CHRT, on behalf of itself and its Subsidiaries, shall pay a royalty
to IBM, no portion of which shall be refundable, at a rate computed at the
following percentages of CHRT's worldwide Net Revenue, which royalty shall be
due and payable in installments as specified under Section 5.1.1 (where "Net
Revenue" or "NR" means total revenue for a calendar year based on the CHRT's net
revenue as such term is used and reported in CHRT's periodic filings with the
United States Securities and Exchange Commission as required by the Securities
Exchange Act of 1934):

              Net Revenue range                         Royalty percentage(%)
         (M = millions of US dollars)                     for the NR range
         ---------------------------                      ------------------
         **************************                       ***************
         **************************                       ***************
         **************************                       ***************
         **************************                       ***************

         Sample royalty calculation, where NR = ***********:
         Royalty due = ************ * ************* * **************
         Royalty due = ******** * ******** * ********
         Royalty due = ********
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5.1.1    CHRT shall pay the royalty due under Section 5.1 in installments (in
U.S. dollars) as follows: (a) Royalties accrued during the period commencing on
January 1, 2001 through and including September 30, 2001 shall be payable before
December 21, 2001;

(b)      Royalties accrued during the annual calendar year periods commencing on
January 1, 2002 through December 31, 2004 and the period commencing on January
1, 2005 through September 30, 2005 shall be calculated by the following method
and payable before December 21 in each of the years 2002, 2003, 2004, and 2005.

         ********************************************* *
         ********************************************* *
         *********************************************; and

(C)      Royalties accrued during the period commencing on October 1, 2005
through December 31, 2005 shall be calculated by the following method
and payable before March 20, 2006.

         ********************************************* *
         *********************************************

On or before the payable date of each payment under Section 5.1.1(a)-(c), CHRT
shall provide to IBM a written report containing the information specified in
Section 5.1.2.

5.1.2    CHRT's written report shall be certified by an officer of CHRT and
shall contain the following information:

(a) the Net Revenue for each applicable accounting period; and

(b) the calculation of and the aggregate amount of all royalties due.

In the event no royalties are due, CHRT's report shall so state.

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Upon payment of all of the installments specified above in Section 5.1, the
license, immunities and other rights granted to CHRT in this Agreement shall be
fully paid up for the term of said rights.

5.2      CHRT shall be liable for interest on any overdue payment required to be
made pursuant to Section 5, commencing on the date such payment becomes due, at
an annual rate which is the greater of ********* or ************* than the prime
interest rate as quoted by the head office of Citibank N.A., New York, at the
close of banking on such date, or on the first business day thereafter if such
date falls on a non-business day. If such interest rate exceeds the maximum
legal rate in the jurisdiction where a claim therefor is being asserted, the
interest rate shall be reduced to such maximum legal rate.

5.3      If an installment payment set forth in Section 5.1 is not made by its
due date, and if such payment, plus interest pursuant to Section 5.2, is not
made prior to forty-five (45) days after notice from IBM of the delinquency,
then, at IBM's sole option, either:

5.3.1             all of the above installment payments which were due after
         such notice shall automatically become due and payable in full on the
         forty-fifth day after such notice without presentment, demand or
         additional notice of any kind (all of which are hereby expressly
         waived); or

5.3.2             all licenses and other rights granted herein to CHRT shall
         automatically terminate on the forty-fifth day after such notice; CHRT
         shall remain obligated to pay all installments which had become due
         prior to such notice (plus interest thereon) and CHRT shall not be
         obligated to make any other payments.

IBM's election of the option set forth in Section 5.3.1 or 5.3.2 shall be stated
in such notice. Such notice shall be given as stated in Section 9 herein.

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5.4      CHRT may deduct or withhold, in accordance with applicable law, from
the payments payable to IBM, any income or withholding taxes imposed by its
national government, including any political subdivision thereof. CHRT shall
furnish IBM the appropriate documentary proof of any such payment made to the
relevant authorities.

Section 6.            Other License Rights

6.1      It is recognized that the parties hereto or their respective
Subsidiaries may now have, or hereafter obtain, the right to grant licenses
under one or more patents of any country, including utility models and including
design patents and registrations for type fonts (but not including any other
design patents or registrations), issuing on patent applications entitled to an
effective filing date prior to December 31, 2005 and under the patent
applications therefor, but that such grant or the exercise of rights thereunder
shall result in payment of royalties or other consideration by GRANTOR or its
Subsidiaries to third parties. Each party (as GRANTOR herein) agrees that, upon
written request, it shall grant to the other party to the extent and subject to
the terms and conditions under which it then has the right to do so, a license
of the broadest scope which GRANTOR has the right to grant at any time but of no
greater scope than the scope of the licenses granted herein with respect to any
such patent or patent application. Such license shall be granted under a
separate agreement, upon payment of the same royalty or other consideration as
that which GRANTOR or any of its Subsidiaries is obligated to pay to a third
party because of the grant of such license or the exercise of rights thereunder.

6.2      Upon written request by a party, the other party shall inform the
requesting party of those patents or patent applications coming within the scope
of Section 6.1 at the time of such request.

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Section 7.            Term of Agreement

7.1      The term of this Agreement shall be from the effective date of this
Agreement until December 31, 2005.

7.2      If one party (referred to in this Section 7.2 as the Acquired Party) is
acquired by a third party becoming a Subsidiary of such third party:

7.2.1             said Acquired Party shall promptly give notice of such
         acquisition to the other party;

7.2.2             all rights granted hereunder to said Acquired Party together
         with any sublicenses theretofore granted by said Acquired Party shall
         terminate on a termination date one hundred and eighty (180) days after
         the date of such acquisition;

7.2.3             all licenses and immunities granted herein to said other Party
         under any patents issuing on patent applications having an effective
         filing date subsequent to said termination date and under said patent
         applications shall terminate; and

7.2.4             said Acquired Party shall be entitled, upon request
         made within one hundred and eighty (180) days after the date
         of such acquisition, to a nontransferable, ***************
         license under said other party's Licensed Patents (including
         the right to sublicense its Subsidiaries) to make, use,
         lease and sell only products identical with those
         manufactured and marketed by said Acquired Party within the
         licenses granted in this Agreement prior to such
         acquisition. As consideration for such license, said
         Acquired Party shall be required to pay to said other party
         all payments which said Acquired Party would have been
         obligated to pay after the date of acquisition pursuant to
         Section 5 of this Agreement. Such license shall be
         terminable by said Acquired Party upon any date a payment is
         due, by giving written notice of termination thirty (30)
         days prior to such due date and paying all payments due on
         such date.
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Section 8.            Warranty

8.1      Each party represents and warrants that it has the full right and power
to grant the license, immunities and release set forth in Sections 2 and 4 and
that there are no outstanding agreements, assignments or encumbrances
inconsistent, with the provisions of said Sections or with any other provision
of this Agreement. Each party (as a GRANTOR), further represents and warrants
that prior to the execution of this Agreement it has informed the other party of
any patent originating from inventions made by employees of GRANTOR or its
Subsidiaries, which patent is now owned by GRANTOR or its Subsidiaries and which
patent, owing to prior arrangements with third parties, does not, or shall not,
qualify as a GRANTOR Licensed Patent, under which licenses are granted of the
full scope set forth in Section 2.1. Neither party makes any other
representations or warranties, express or implied, nor does either party assume
any liability in respect of any infringement of patents or other rights of third
parties owing to the other party's operation under the license herein granted.

Section 9.            Communications

9.1      Payments shall be made by electronic funds transfer and shall be deemed
to have been made on the date they are credited to IBM's account. Any notice or
other communication required or permitted to be made or given to either party
hereto pursuant to this Agreement shall be sent to such party by registered
airmail (except that registered or certified mail may be used where delivery is
in the same country as mailing), postage prepaid, addressed to it at its address
set forth below, or to such other address as it shall designate by written
notice given to the other party, and shall be deemed to have been made or given
on the date of mailing. The addresses are as follows:

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9.1.1                      For electronic funds transfers of payments:

                  IBM, Director of Licensing
                  The Bank of New York
                  1 Wall Street
                  New York, New York 10286
                  United States of America
                  Credit Account No. 890-0209-674
                  ABA No. 0210-0001-8

9.1.2                      For mailing to IBM:

                  Director of Licensing
                  IBM Corporation
                  North Castle Drive MD-NC-119
                  Armonk, NY 10504-1785
                  United States of America

9.1.3                      For facsimile transmission to IBM:

                  (914) 765-4380

9.1.4                      For mailing to CHRT:

                The Legal Department
                Chartered Semiconductor Manufacturing Ltd.
                60 Woodlands, Industrial Park D, Street 2
                Singapore 738406

9.1.5                      For facsimile transmission to CHRT:

                  65-360-4970

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Section 10.       Assignments

10.1     Neither party shall assign or grant any right under any of its patents
or the applications therefor, which qualify as such party's Licensed Patents, or
any of its patents or the applications therefor or rights which are subject to
the other party's rights pursuant to Section 6, unless such assignment or grant
is made subject to the terms and conditions of this Agreement. Subject to the
provisions of Section 3, neither party shall assign any of its rights or
privileges hereunder without the prior written consent of the other party. Any
attempted assignment in derogation of the foregoing shall be void.

Section 11.       Know-How and Trade Secrets

11.1     No license or other right is granted herein to either party, directly
or by implication, estoppel or otherwise, with respect to any trade secrets or
know-how, and no such license or other right shall arise from the consummation
of this Agreement or from any acts, statements or dealings leading to such
consummation. Except as specifically provided herein, neither party is required
hereunder to furnish or disclose to the other any technical or other
information.

Section 12.       Applicable Law

12.1     This Agreement shall be construed, and the legal relations between the
parties hereto shall be determined, in accordance with the law of the State of
New York, United States of America, as such law applies to contracts signed and
fully performed in such State.

Section 13.       Miscellaneous

13.1     Nothing contained in this Agreement shall be construed as a warranty or
representation by either party as to the validity or scope of any of its
Licensed Patents and either party is free to contest in any proceeding said
validity or scope.
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13.2     Nothing contained in this Agreement shall be construed as conferring
any right to use in advertising, publicity, or other promotional activities any
name, trade name, trademark, or other designation of either party hereto
(including any contraction, abbreviation or simulation of any of the foregoing);
and each party hereto agrees not to use or refer to this Agreement or any
provision thereof in any promotional activity associated with apparatus licensed
hereunder, without the express written approval of the other party.

13.3     Nothing contained in this Agreement shall be construed as conferring
on either party any license or other right to copy the exterior design of the
products of the other party.

13.4     Nothing contained in this Agreement shall be construed as conferring
any rights by implication, estoppel or otherwise, to or under copyrights or mask
work or similar rights, or with respect to computer programs under any form of
statutory protection now existing or hereafter enacted, in any country or
countries, wherein the copying of a computer program is a requisite of
infringement under such form of protection.

13.5     Nothing contained in this Agreement shall be construed as limiting the
rights which the parties have outside the scope of the licenses granted
hereunder, or restricting the right of either party or any of its Subsidiaries
to make, have made, use, lease, sell or otherwise dispose of any particular
product or products not herein licensed.

13.6     Each party shall, upon request from the other party sufficiently
identifying any patent or patent application, inform the other party as to the
extent to which said patent or patent application is subject to the licenses and
rights granted hereunder. If such licenses or rights under said patent or patent
application are restricted in

<PAGE>

scope, copies of all pertinent provisions of any contract or other arrangement
creating such restrictions shall, upon request, be furnished to the party making
such request, unless such disclosure is prevented by such contract, and in that
event a statement of the nature of such restriction shall be provided.

13.7     Neither of the parties hereto, nor any of their respective Subsidiaries
shall be required hereunder to file any patent application, or to secure any
patent or patent rights, or to maintain any patent in force, or to provide
copies of patent applications to the other party or its Subsidiaries, or to
disclose any inventions described or claimed in such patent applications.

13.8     Neither party shall have any obligation hereunder to institute any
action or suit against third parties for infringement of any of its Licensed
Patents or to defend any action or suit brought by a third party which
challenges or concerns the validity of any of its Licensed Patents. In addition,
neither party shall have any right to institute any action or suit against third
parties for infringement of any of the other party's Licensed Patents.

13.9     If a third party has the right to grant licenses under a patent to a
party hereto (as a licensee) with the consent of the other party hereto, said
other party shall provide said third party with any consent required to enable
said third party to license said licensee on whatever terms and conditions such
third party may deem appropriate. Each party hereby waives any right it may have
to receive royalties or other consideration from said third party as a result of
said third party's so licensing said licensee within the scope of the license
granted under Section 2 of this Agreement.

13.10    Either party's Licensed Products leased, sold or otherwise transferred
by a party hereto or its sublicensed Subsidiary shall be

<PAGE>
considered to be licensed under any of the other party's Licensed Patents which
at any time covers such Licensed Products, notwithstanding that the Licensed
Product has been re-leased, re-sold or re-transferred by any entity in the same
or another country.

13.11    This Agreement shall not be binding upon the parties until it has been
signed hereinbelow by or on behalf of each party, in which event it shall be
effective as of the later of:

13.11.1  the date of this Agreement first above written; or

13.11.2  the date on which all necessary Singapore government approvals are
obtained.

If approvals referred to in Section 13.11.2 are required in order for CHRT to
perform its obligations under this Agreement, and all of such approvals are not
obtained within one hundred and twenty (120) days of the signing of this
Agreement by IBM, IBM, at its sole discretion, may void this Agreement, ab
initio. No amendment or modification hereof shall be valid or binding upon the
parties unless made in writing and signed as aforesaid.

13.12    This Agreement embodies the entire understanding of the parties with
respect to the subject matter hereof and merges all prior discussions between
them, and neither of the parties shall be bound by any conditions, definitions,
warranties, understandings or representations with respect to the subject matter
hereof other than as expressly provided herein.

13.13    The intent of the parties is to grant limited licenses to each other as
specified in Section 2. If anything in Section 2 is found by competent authority
to be invalid, illegal or unenforceable in any respect for any reason, either
party shall have the right to terminate this Agreement. If anything in any other

<PAGE>

Section of this Agreement is found by competent authority to be invalid, illegal
or unenforceable in any respect for any reason, the validity, legality and
enforceability of such other Section in every other respect and the remainder of
this Agreement shall continue in effect so long as the Agreement still expresses
the intent of the parties. However, if the intent of the parties cannot be
preserved, this Agreement shall be either renegotiated or terminated.

13.14    The headings of the several Sections are inserted for convenience of
reference only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly signed as of the date first above written.

                                            INTERNATIONAL BUSINESS
                                            MACHINES CORPORATION

                                            By
                                              ----------------------------------
                                                   Gerald Rosenthal
                                                    Vice President

                                            Date:
                                                 -------------------------------

                                            CHARTERED SEMICONDUCTOR
                                            MANUFACTURING LTD.

                                            By
                                              ----------------------------------
                                                       Barry Waite
                                                   President & CEO

                                            Date:
                                                 -------------------------------<PAGE>

                                  EXHIBIT 10.10

                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT (the "Agreement") is executed this 20th day of
November, 2001, by and between Applica Durable Manufacturing Limited, a Hong
Kong corporation (the "Company"), and Raymond So, an individual residing in Hong
Kong (the "Executive").

                                    RECITALS:

       A.     The Executive is currently employed as the Managing Director of
the Company.

       B.     The Executive possesses intimate knowledge of the business and
affairs of the Company and its subsidiaries, their policies, methods and
personnel.

       C.     The Directors of the Company (the "Board") recognize that the
Executive has contributed to the growth and success of the Company and its
subsidiaries, and desires to assure the Company and its subsidiaries of the
Executive's continued employment and to compensate him therefor.

       D.     The Directors have determined that this Agreement will reinforce
and encourage the Executive's continued attention and dedication to the Company
and its subsidiaries and affiliates.

       E.     The Executive is willing to make his services available to the
Company on the terms and conditions hereinafter set forth.

                                       AGREEMENT

      Therefore, in consideration of the premises, mutual covenants and
agreements of the parties contained herein, and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the
Company and the Executive hereby agree as follows:

       1.     Employment. Commencing on the Closing Date, the Company shall
              employ the Executive and the Executive shall accept employment by
the Company, upon the terms and conditions set forth in this Agreement.

       2.     Term. The term of employment (the "Term") of this Agreement shall
begin on the date hereof and shall terminate as provided herein. Except as
otherwise provided in Sections 7, 8, 9, 10, 11 and 12 below, the Term shall be
for a continuous three-year period commencing on this date and running for a
period such that on each "Anniversary Date" (as defined below) an additional
year automatically shall be added. At any time on or up to 30 days' prior to any
Anniversary Date, either party may provide written notice to the other party of
that party's
<PAGE>
intention not to extend the Term of this Agreement beyond the number of years
then remaining in the Term, which shall always be three. Such written notice
shall be deemed the notice to terminate this Agreement at the end of the
three-year term then in effect. The "Anniversary Date," as used herein, shall be
the first day of the second year of the Term and the first day of each
subsequent year, including each year beyond the first three years of the Term.
It is the intention of the parties that the Term as of each Anniversary Date
automatically shall be three years, that three years' written notice shall be
required to terminate this Agreement, except as otherwise provided in Sections
7, 8, 9, 10, 11 and 12 below, and that said written notice to terminate may only
be given on an Anniversary Date.

       3.     Duties. The Executive will have such duties as are assigned or
delegated to the Executive by the Board of Directors or Chief Executive Officer
of Applica Incorporated, a Florida corporation and the parent corporation of the
Company ("Applica"), and will initially serve as the Managing Director of the
Company. The Executive will devote his entire business time, attention, skill,
and energy exclusively to the business of the Company and its subsidiaries and
affiliates, will use his best efforts to promote the success of the Company and
its subsidiaries, and will cooperate fully with the Directors in the advancement
of the best interests of the Company and its subsidiaries, as well as Applica.

       4.     Compensation. During the Term, the Company shall compensate
Executive as follows:

              (a) Salary. The Company shall pay Executive an annual salary of US
$450,000 (the "Annual Base Salary"), to be distributed in equal periodic
installments according to the Company's customary payroll practices.

              (b) Annual Bonus. The Executive shall be entitled to receive
incentive compensation (the "Incentive Compensation") for each year during the
Term as set forth below:

                  (i) Performance Bonus. At the beginning of each calendar year
      during the Term, the Chief Executive Officer of Applica shall establish
      target goals for (A) (1) earnings before interest, taxes, depreciation and
      amortization ("EBITDA") of the Company on a consolidated basis and Applica
      on a consolidated basis, (2) annual inventory levels for Applica and (3)
      customer service and (B) the Executive's personal performance
      (collectively, the "Performance Goals"). The Executive shall be entitled
      to an annual bonus (the "Performance Bonus") based 50% on the achievement
      of the Performance Goal set forth in (A) above and 50% on the achievement
      of the Performance Goal set forth in (B) above, it being understood that a
      pro rata Performance Bonus may be earned by the Executive as set forth
      below in any year in which either Performance Goal is met. Such
      Performance Bonus shall be equal to a percentage of his Annual Base Salary
      to be determined as follows:

<TABLE>
<CAPTION>
                    AGGREGATE PERCENTAGE OF             BONUS AS PERCENTAGE
                  PERFORMANCE GOALS ACHIEVED           OF ANNUAL BASE SALARY
            --------------------------------           ---------------------
<S>                                                    <C>
            75% - 79% (Threshold Performance)                   20%
</TABLE>

                                       2
<PAGE>
<TABLE>
<S>                                                    <C>
            80% - 84%                                           23%
            85% - 89%                                           26%
            90% - 94%                                           29%
            95% - 99%                                           32%
            100% - 104% (Target Performance)                    35%
            105% - 109%                                         38%
            110% - 114%                                         41%
            115% - 119%                                         44%
            120% - 124%                                         47%
            125% and above (Maximum Performance)                50%
</TABLE>

              (ii) Cumulative Synergy Bonus. If the Company achieves $45 million
in certain cumulative synergies resulting from the integration of the Household
Products business into Applica (the "Cumulative Synergy Goals") on or before
December 31, 2001, the Company shall establish a bonus pool in an amount equal
to 30% of the aggregate Annual Base Salaries of all employees entitled to a
cumulative synergy bonus. Upon the achievement of the Cumulative Synergy Goals,
the Employee shall be entitled to receive a one-time cash bonus (the "Cumulative
Synergy Bonus") to be paid in the first quarter of 2002, if the Employee is
employed with the Company. The amount of the Cumulative Synergy Bonus shall be
determined in the sole discretion of the Board (or the Compensation Committee,
as applicable).

              (iii) Special Bonus. From time to time during the Term, as
determined by the Chief Executive Officer of Applica, the Executive shall be
entitled to additional bonuses to be paid in cash, stock or otherwise.

       5.     Expense Reimbursement and Other Benefits.

              (a) Reimbursement of Expenses. During the term of Executive's
employment hereunder, the Company, upon the submission of proper substantiation,
including copies of all relevant invoices, receipts or other evidence reasonably
requested by the Company, by the Executive, shall reimburse the Executive for
all reasonable expenses actually paid or incurred by the Executive in the course
of and pursuant to the business of the Company, including first class or
business class air travel.

              (b) Executive Benefits. Executive shall participate in the
Company's insurance plans (collectively, the "Welfare Benefits") and executive
benefits and bonuses covering the Company's senior executive officers as are now
or may in the future be in effect, subject to applicable eligibility
requirements.

              (c) Stock Options. During the Term of this Agreement, the
Executive shall be eligible to be granted options to acquire shares of the
Common Stock of Applica under (and therefore subject to all terms and conditions
of) Applica's stock option plans as then in effect, and all rules and
regulations of the United States Securities and Exchange Commission applicable
to stock option plans. Such options will contain such restrictions as required
by the Board of Directors of Applica or the applicable committee of such Board
charged with

                                       3
<PAGE>
administration of the stock option plan. The number of shares of Common Stock
subject to the stock options shall be adjusted for any subsequent stock splits,
stock dividends or similar recapitalizations of Applica's Common Stock which
results in an increase or decrease of the number of shares of outstanding Common
Stock. The number of options and terms and conditions of options shall be
determined in the sole discretion of the Board of Directors of Applica, or
applicable committee thereof, and shall be based on several factors, including
the performance of the Company and Applica.

              (d) Automobile. During the Term, the Company shall provide
Executive with an automobile or a monthly automobile allowance.

              (e) Vacation. During the Term, the Executive will be entitled to
four weeks' paid vacation for each year. The Executive will also be entitled to
the paid holidays and other paid leave set forth in the Company's policies.

       6.     Restrictions.

              (a) Non-Competition. During the Term and for a one year period
after the termination of the Term for any reason, the Executive shall not,
directly or indirectly, engage in or have any interest in any sole
proprietorship, partnership, corporation or business or any other person or
entity (whether as an Executive, officer, director, partner, agent, security
holder, creditor, consultant or otherwise) that directly or indirectly (or
through any affiliated entity) engages in competition with the Company (for this
purpose, any business that engages in the manufacture or distribution of
products similar to those products manufactured or distributed by the Company at
the time of termination of the Agreement shall be deemed to be in competition
with the Company); provided that such provision shall not apply to the
Executive's ownership of Common Stock of Applica or the acquisition by the
Executive, solely as an investment, of securities of any issuer that is
registered under Section 12(b) or 12(g) of the United States Securities Exchange
Act of 1934, as amended, and that are listed or admitted for trading on any
United States national securities exchange or that are quoted on Nasdaq or any
similar system or automated dissemination of quotations of securities prices in
common use, so long as the Executive does not control, acquire a controlling
interest in or become a member of a group which exercises direct or indirect
control or, more than five percent of any class of capital stock of such
corporation.

              (b) Nondisclosure. During the Term and after the termination of
the Term for any reason, the Executive shall not at any time divulge,
communicate, use to the detriment of the Company or for the benefit of any other
person or persons, or misuse in any way, any Confidential Information (as
hereinafter defined) pertaining to the business of the Company. Any Confidential
Information or data now or hereafter acquired by the Executive with respect to
the business of the Company shall be deemed a valuable, special and unique asset
of the Company that is received by the Executive in confidence and as a
fiduciary, and Executive shall remain a fiduciary to the Company with respect to
all of such information. For purposes of this Agreement, "Confidential
Information" means information disclosed to the Executive or known by the
Executive as a consequence of or through his employment by the Company
(including

                                       4
<PAGE>
information conceived, originated, discovered or developed by the Executive)
prior to or after the date hereof, and not generally known, about the Company or
its business. Confidential Information shall include, but not be limited to, any
and all:

                  (i) trade secrets and data concerning the past, current and
      planned business, strategy, operations and affairs of the Company, data,
      know-how, compositions, processes, designs, sketches, photographs, graphs,
      drawings, samples, inventions and ideas, past, current, and planned
      research and development, customer lists, client lists, agent lists,
      current and anticipated customer and client requirements, price lists,
      commission information, market studies, business plans, computer software
      and programs (including object code and source code), computer software
      and database technologies, systems, concepts, ideas, designs, methods and
      information relating directly or indirectly to the Company;

                  (ii) information concerning the past, current and planned
      business, strategy, operations and affairs of the Company, which includes
      historical financial statements, financial projections and budgets,
      historical and projected income, capital spending budgets and plans, the
      names and backgrounds of key personnel, suppliers, distributors,
      manufacturers, customers and clients, and any and all information

                  (iii) notes, analysis, compilations, studies, summaries, and
      other material prepared by or for the Company containing or based, in
      whole or in part, on any information included in the foregoing.

              Notwithstanding the foregoing, nothing herein shall be deemed to
restrict the Executive from disclosing Confidential Information to the extent
required by law; provided, however, that the Executive provides prior notice of
such disclosure to the Company and provides the Company with a reasonable
opportunity to prevent, limit or protect such disclosure. None of the foregoing
obligations and restrictions apply to any Confidential Information that the
Executive demonstrates was or became generally available to the public other
than as a result of disclosure by the Executive.

              (c) Nonsolicitation of Executives and Clients. During the Term and
for a one year period after the termination of the Term for any reason, the
Executive shall not, directly or indirectly, for himself or for any other
person, firm, corporation, partnership, association or other entity, other than
in connection with the performance of Executive's duties under this Agreement,
(a) employ or attempt to employ or enter into any contractual arrangement with
any Executive or former Executive of the Company, unless such Executive or
former Executive has not been employed by the Company for a period in excess of
six months, (b) call on or solicit any of the actual or targeted prospective
clients of the Company on behalf of any person or entity in connection with any
business competitive with the business of the Company, and/or (c) make known the
names and addresses of such clients or any information relating in any manner to
the Company's trade or business relationships with such customers (unless the
Executive can

                                       5
<PAGE>
demonstrate that such information was or became generally available to the
public other than as a result of a disclosure by the Executive).

              (d) Ownership of Developments. All copyrights, patents, trade
secrets, or other intellectual property rights associated with any ideas,
concepts, techniques, inventions, processes, or works of authorship developed or
created by Executive during the course of performing work for the Company or its
customers (collectively, the "Work Product") shall belong exclusively to the
Company and shall, to the extent possible, be considered a work made by the
Executive for hire for the Company within the meaning of Title 17 of the United
States Code. To the extent the Work Product may not be considered work made by
the Executive for hire for the Company, the Executive agrees to assign, and
automatically assign at the time of creation of the Work Product, without any
requirement of further consideration, any right, title, or interest the
Executive may have in such Work Product. Upon the request of the Company, the
Executive shall take such further actions, including execution and delivery of
instruments of conveyance, as may be appropriate to give full and proper effect
to such assignment.

              (e) Books and Records. All books, records, and accounts relating
in any manner to the customers of the Company, whether prepared by the Executive
or otherwise coming into the Executive's possession, shall be the exclusive
property of the Company and shall be returned immediately to the Company on
termination of the Executive's employment hereunder or on the Company's request
at any time. The Executive will not remove from the Company's premises any other
proprietary or confidential document, agreement, record, notebook, plan, model,
component, device, or computer software or code, whether embodied in a disk or
in any other form (collectively, the "Proprietary Items"). The Executive
recognizes that, as between the Company and the Executive, all of the
Proprietary Items, whether or not developed by the Executive, are the exclusive
property of the Company. Upon termination of this Agreement by either party, or
upon the request of the Company during the term of this Agreement, the Executive
will promptly return to the Company all of the Proprietary Items in the
Executive's possession or subject to the Executive's control, and the Executive
shall not retain any copies or other physical embodiment of any of the
Proprietary Items.

              (f) Definition of Company. Solely for purposes of this Section 6,
the term "Company" shall mean Applica, along with its current direct and
indirect subsidiaries, any existing or future subsidiaries of Applica that are
operating during the time periods described herein and any other entities that
directly or indirectly, through one or more intermediaries, control, are
controlled by or are under common control with Applica during the periods
described herein.

              (g) Acknowledgment by Executive. The Executive acknowledges and
confirms that (a) the restrictive covenants contained in this Section 6 are
reasonably necessary to protect the legitimate business interests of the
Company, and (b) the restrictions contained in this Section 6 (including without
limitation the length of the term of the provisions of this Section 6) are not
overbroad, overlong, or unfair and are not the result of overreaching, duress or
coercion of any kind. The Executive further acknowledges and confirms that his
full, uninhibited and faithful observance of each of the covenants contained in
this Section 6 will not cause him any

                                       6
<PAGE>
undue hardship, financial or otherwise, and that enforcement of each of the
covenants contained herein will not impair his ability to obtain employment
commensurate with his abilities and on terms fully acceptable to him or
otherwise to obtain income required for the comfortable support of him and his
family and the satisfaction of the needs of his creditors. The Executive
acknowledges and confirms that his special knowledge of the business of the
Company is such as would cause the Company serious injury or loss if he were to
use such ability and knowledge to the benefit of a competitor or were to compete
with the Company in violation of the terms of this Section 6. The Executive
further acknowledges that the restrictions contained in this Section 6 are
intended to be, and shall be, for the benefit of and shall be enforceable by,
the Company's successors and assigns.

              (h) Reformation by Court. In the event that a court of competent
jurisdiction shall determine that any provision of this Section 6 is invalid or
more restrictive than permitted under the governing law of such jurisdiction,
then only as to enforcement of this Section 6 within the jurisdiction of such
court, such provision shall be interpreted and enforced as if it provided for
the maximum restriction permitted under such governing law.

              (i) Extension of Time. If the Executive shall be in violation of
any provision of this Section 6, then each time limitation set forth in this
Section 6 shall be extended for a period of time equal to the period of time
during which such violation or violations occur. If the Company seeks injunctive
relief from such violation in any court, then the covenants set forth in this
Section 6 shall be extended for a period of time equal to the pendency of such
proceeding including all appeals by the Executive.

              (j) Survival. The provisions of this Section 6 shall survive the
termination of this Agreement, as applicable.

              (k) Injunctive Relief. The Executive acknowledges that the injury
that would be suffered by the Company as a result of a breach of any provision
of this Section 6 would be irreparable and that an award of monetary damages for
such a breach would be an inadequate remedy. Consequently, the Executive
consents to, and the Company will have the right (in addition to any other
rights it may have) to request, the issuance of a temporary restraining order or
a preliminary or permanent injunction to prohibit or restrain any breach or
threatened breach or otherwise to specifically enforce any provision of this
Section 6, or to maintain the status quo pending the outcome of any proceeding
which may be initiated. The Company will not be obligated to post bond or other
security in seeking such relief.

       7.     Death. The Term shall terminate upon the death of Executive and be
of no further force or effect. Upon such termination, the Company will pay the
Executive's estate a lump sum equal to the sum of (A) the Annual Base Salary at
the date of termination multiplied by the number of years remaining in the Term,
and (B) the product of the sum of the Performance Bonus for the prior year
multiplied by the number of years remaining in the Term.

       8.     Disability. If during the Term Executive is unable to perform his
services, by reason of illness or incapacity, for a period of 180 consecutive
days or more, the Company may,

                                       7
<PAGE>
at its option, upon written notice to Executive, terminate the Term and his
employment hereunder. If the Term is terminated as a result of the Executive's
disability, the Company will pay the Executive (A) his Annual Base Salary at the
date of termination for the period remaining in the Term to be distributed in
periodic installments according to the Company's customary payroll practices,
and (B) a lump sum equal to the product of the sum of the Performance Bonus for
the prior year multiplied by the number of years remaining in the Term, to be
paid at the time of such termination. The Company shall also continue to pay the
premiums for the same or substantially similar Welfare Benefits for the
remainder of the Term. Notwithstanding the foregoing, if the Executive shall
find other employment during the period he is receiving payments pursuant to
this Section 8, then the Executive shall promptly notify the Company in writing
of the date and terms of such employment and the Company shall be entitled to
reduce the amount payable to the Executive pursuant to this Section 8 during the
period from the commencement of such other employment by the cash compensation
received and to be received by the Executive for services rendered in connection
with such other employment.

      9.    Termination for Cause.

              (a) The Company shall have the right to terminate the Term and the
Executive's employment hereunder for Cause (as defined below). Upon any
termination pursuant to this Section 9, the Company shall pay to the Executive
any unpaid Annual Base Salary through the effective date of termination
specified in such notice. The Company shall have no further liability hereunder
(other than for reimbursement for reasonable business expenses incurred prior to
the date of termination, subject, however, to the provisions of Section 5(a)).

              (b) For purposes hereof, the term "Cause" shall mean: (A) the
willful and continued failure by the Executive to substantially perform his
duties with the Company, other than any such failure resulting from his
incapacity due to physical or mental illness or any such actual or anticipated
failure after the issuance by the Executive of a notice of termination for Good
Reason (as defined in section 11 hereof), after a written demand for substantial
performance is delivered to the Executive by the Directors of the Company, the
Board of Directors of Applica or the Chief Executive Officer of Applica, which
demand specifically identifies the manner in which the Executive has not
substantially performed the Executive's duties, or (B) the willful engaging by
the Executive in conduct which is demonstrably and materially injurious to the
Company or Applica, monetarily or otherwise. For purposes of this section, no
act or failure to act on the part of the Executive shall be deemed "willful"
unless done, or omitted to be done, by the Executive not in good faith and
without reasonable belief that his action or omission was in the best interest
of the Company or Applica.

       10.    Termination Without Cause. At any time the Company shall have the
right to terminate the Term and the Executive's employment hereunder by written
notice to the Executive. Upon any termination pursuant to this Section 10 (that
is not a termination under any of Sections 7, 8, 11 or 12), the Company shall
pay to the Executive a lump sum equal to the sum of (A) the Annual Base Salary
at the date of termination multiplied by the number of years remaining in the
Term, and (B) the product of the sum of the Performance Bonus for the prior

                                       8
<PAGE>
year multiplied by the number of years remaining in the Term. The Company shall
also continue to pay the premiums for the same or substantially similar Welfare
Benefits and the Executive shall be entitled to the other benefits set forth in
Section 5(b), (d) and (e) for the remainder of the Term. Further, any Applica
stock option granted to Executive shall be exercisable immediately and the
Applica stock acquired pursuant to such exercise may be sold by Executive
subject to no restrictions by the Company whatsoever (other than those imposed
by United States federal and state securities laws). The Company shall have no
further liability hereunder (other than for reimbursement for reasonable
business expenses incurred prior to the date of termination, subject, however,
to the provisions of Section 5(a)). The Executive shall be entitled to receive
all severance payments and benefits hereunder regardless of any future
employment undertaken by the Executive as long as he is in full compliance with
the terms of this Agreement.

      11.   Termination by Executive.

              (a) The Executive shall at all times have the right, upon 60 days
written notice to the Company, to terminate the Term and his employment
hereunder.

              (b) Upon any termination pursuant to this Section 11 by the
Executive without Good Reason (as defined below), the Company shall pay to the
Executive any unpaid Annual Base Salary through the effective date of
termination specified in such notice. The Company shall have no further
liability hereunder (other than for reimbursement for reasonable business
expenses incurred prior to the date of termination, subject, however, to the
provisions of Section 5(a)). The Executive shall be entitled to receive all
severance payments and benefits hereunder regardless of any future employment
undertaken by the Executive as long as he is in full compliance with the terms
of this Agreement.

              (c) Upon any termination pursuant to this Section 11 by the
Executive for Good Reason, the Company shall pay to the Executive the same
amounts that would have been payable by the Company to the Executive under
Section 10 of this Agreement if the Executive's employment had been terminated
by the Company without Cause. The Company shall have no further liability
hereunder (other than for reimbursement for reasonable business expenses
incurred prior to the date of termination, subject, however, to the provisions
of Section 5(a)).

              (d) For purposes of this Agreement, "Good Reason" shall mean (i)
the assignment to the Executive of any duties inconsistent in any material
respect with the Executive's position (including status, offices, titles and
reporting requirements), authority, duties or responsibilities as contemplated
by Section 3 of this Agreement, or any other action by the Company which results
in a material diminution in such position, authority, duties or
responsibilities, excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Executive; (ii) the
relocation of the Executive to another location more than 50 miles from his
current location without his consent, or (iii) any failure by the Company to
comply with any of the material provisions of Section 4 of this Agreement, other
than an

                                       9
<PAGE>
isolated, insubstantial and inadvertent failure not occurring in bad faith and
which is remedied by the Company promptly after receipt of notice thereof given
by the Executive.

       12.    Change in Control.

              (a) In the event that (i) a Change in Control (as defined in
paragraph (b) of this Section 12) of Applica shall occur during the Term, and
(ii) prior to the earlier of the expiration of the Term and one year after the
date of the Change in Control, the Term and Executive's employment with the
Company is terminated by the Company without Cause, as defined in Section 9(b)
(and other than pursuant to Section 7 by reason of the Executive's death or
Section 8 by reason of the Executive's disability) or the Executive terminates
the Term and his employment for Good Reason, as defined in Section 11(d), the
Company shall (1) pay to the Executive any unpaid Annual Base Salary through the
effective date of termination, (2) pay to the Executive the Incentive
Compensation, if any, not yet paid to the Executive for any year prior to such
termination, at such time as the Incentive Compensation otherwise would have
been payable to the Executive, (3) at the time of such termination, pay to the
Executive a lump sum equal to the sum of (A) the Annual Base Salary at the date
of termination multiplied by the number of years remaining in the Term, and (B)
the product of the sum of the Performance Bonus for the prior year multiplied by
the number of years remaining in the Term. The Company shall also continue to
pay the premiums for the same or substantially similar Welfare Benefits for the
number of years remaining in the Term. Further, any Applica stock option granted
to Executive shall be exercisable immediately and the Applica stock acquired
pursuant to such exercise may be sold by Executive subject to no restrictions by
the Company whatsoever (other than those imposed by United States federal and
state securities laws). The Company shall have no further liability hereunder
(other than for reimbursement for reasonable business expenses incurred prior to
the date of termination, subject, however, to the provisions of Section 5(a)).

              (b) For purposes of this Agreement, the term "Change in Control"
shall mean:

                     (i) Approval by the shareholders of Applica of (x) a
              reorganization, merger, consolidation or other form of corporate
              transaction or series of transactions, in each case, with respect
              to which persons who were the shareholders of Applica immediately
              prior to such reorganization, merger or consolidation or other
              transaction do not, immediately thereafter, own more than 50% of
              the combined voting power entitled to vote generally in the
              election of directors of the reorganized, merged or consolidated
              company's then outstanding voting securities, or (y) a liquidation
              or dissolution of Applica or (z) the sale of all or substantially
              all of the assets of Applica (unless such reorganization, merger,
              consolidation or other corporate transaction, liquidation,
              dissolution or sale is subsequently abandoned); or

                     (ii) Individuals who, as of the date hereof, constitute the
              Board of Directors of Applica (as of the date hereof the
              "Incumbent Board") cease for any reason to constitute at least a
              majority of the Board of Directors of Applica, provided that any
              person becoming a director subsequent to the date hereof whose
              election, or nomination

                                       10
<PAGE>
              for election by Applica's shareholders, was approved by a vote of
              at least a majority of the directors then comprising the Incumbent
              Board (other than an election or nomination of an individual whose
              initial assumption of office is in connection with an actual or
              threatened election contest relating to the election of the
              Directors of Applica, as such terms are used in Rule 14a-11 of
              Regulation 14A promulgated under the United States Securities
              Exchange Act) shall be, for purposes of this Agreement, considered
              as though such person were a member of the Incumbent Board; or

                     (iii) The acquisition (other than from Applica) by any
              person, entity or "group", within the meaning of Section 13(d)(3)
              or 14(d)(2) of the Securities Exchange Act (excluding, for this
              purpose, Applica or its subsidiaries, or any Executive benefit
              plan of Applica or its subsidiaries) which acquires beneficial
              ownership (within the meaning of Rule 13d-3 promulgated under the
              Securities Exchange Act), of 20% or more of either the then
              outstanding shares of the Applica's Common Stock or the combined
              voting power of Applica's then outstanding voting securities
              entitled to vote generally in the election of directors.

              (c) The payments made pursuant to paragraph (a) above shall be in
lieu of any and all compensation due to Executive for the years that would
otherwise be remaining in the Term. Upon receipt of said lump sum payment, this
Agreement and all rights and duties of the parties shall be terminated, except
as follows. In consideration for such lump sum payment and for the right to
terminate under the conditions set forth above, Executive agrees to consult with
the Company and Applica (or their successors), and their officers if requested
to do so for a period of at least two years from the date of such termination.
However, Executive shall be required to devote only such part of his time to
such services as Executive believes reasonable in Executive's sole discretion,
and the time and date such services are offered shall be determined by Executive
so long as that time and date is within a reasonable period of time after the
request. It is expressly agreed that the Company's and Applica's rights to avail
itself of the advice and consultation services of Executive shall at all times
be exercised in a reasonable manner, that adequate notice shall be given to
Executive in such events, and that non-compliance with any such request by
Executive for good reason, including, but not limited to, ill health or prior
commitments, shall not constitute a breach or violation of this Agreement.
Executive agrees that, except for reimbursement of all reasonable expenses
incurred by him with respect to such consultation and advisory services, payable
as such consultation and advisory services are rendered, he shall not be
entitled to any further compensation. It is understood that in furnishing any
advisory and consulting services provided herein, Executive shall not be an
Executive of the Company or Applica but shall act in the capacity of independent
contractor.

       13.    Waivers. It is understood that either party may waive the strict
performance of any covenant or agreement made herein; however, any waiver made
by a party hereto must be duly made in writing in order to be considered a
waiver, and the waiver of one covenant or agreement shall not be considered a
waiver of any other covenant or agreement unless specifically in writing as
aforementioned.

                                       11
<PAGE>
       14.    Savings Provisions. The invalidity, in whole or in part, of any
covenant or restriction, or any section, subsection, sentence, clause, phrase or
word, or other provisions of this Agreement, as the same may be amended from
time to time shall not affect the validity of the remaining portions thereof.

       15.    Governing Law. This Agreement shall be construed in accordance
              with and governed by the laws of the State of Florida without
giving effect to its choice of law provision.

       16.    Notices. If either party desires to give notice to the other in
connection with any of the terms and provisions of this Agreement, said notice
must be in writing and shall be deemed given when (a) delivered by hand (with
written confirmation of receipt), (b) sent by facsimile (with written
confirmation of receipt), provided that a copy is mailed by registered mail,
return receipt requested, or (c) when received by the addressee, if sent by a
nationally recognized overnight delivery service (receipt requested), in each
case addressed to the party for whom it is intended as follows (or such other
addresses as either party may designated by notice to the other party):

            If to the Company:        Applica Durable Manufacturing Limited
                                      5980 Miami Lakes Drive
                                      Miami, Lakes, Florida 33014
                                      Attn: David M. Friedson

            If to Executive:          At the most recent home address of
                                      Executive on the official records of the
                                      Company

       17.    Default. In the event either party defaults in the performance of
its obligations under this Agreement, the non-defaulting party may, after giving
30 days notice to the defaulting party to provide a reasonable opportunity to
cure such default, proceed to protect its rights by suit in equity, action at
law, or, where specifically provided for herein, by arbitration, to enforce
performance under this Agreement or to recover damages for breach thereof,
including all costs and attorneys' fees, whether settled out of court,
arbitrated, or tried (at both trial and appellate levels).

       18.    No Third Party Beneficiary. Nothing expressed or implied in this
Agreement is intended, or shall be construed, to confer upon or give any person
other than the Company, the parties hereto and their respective heirs, personal
representatives, legal representatives, successors and assigns, any rights or
remedies under or by reason of this Agreement.

       19.    Waiver of Jury Trial. ALL PARTIES KNOWINGLY WAIVE THEIR RIGHTS TO
REQUEST A TRIAL BY JURY IN ANY LITIGATION IN ANY COURT OF LAW, TRIBUNAL OR LEGAL
PROCEEDING INVOLVING THE PARTIES HERETO OR ANY DISPUTES ARISING OUT OF OR
RELATED TO THIS AGREEMENT.

                         [Signatures on following page.]

                                       12
<PAGE>
       IN WITNESS WHEREOF, the Company, by its appropriate officer, signed this
Agreement and Executive have signed this Agreement, as of the day and year first
above written.

                                        APPLICA DURABLE MANUFACTURING LIMITED

                                        By: /s/ Harry D. Schulman
                                            ---------------------
                                        Name: Harry D. Schulman
                                        Its: Director

                                        EXECUTIVE

                                        /s/ Raymond So
                                            ----------------------
                                          Raymond So

                                       13

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