-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 IQBhHpYrgXOAtRqI+NEJlpWEtnaJDbVpIV69swpIWmaVMn2+bK0jcTCRcDGXo2ef
 uM/FSA292Q8c8YqY1rhiCA==

<SEC-DOCUMENT>0000950134-07-008680.txt : 20070420
<SEC-HEADER>0000950134-07-008680.hdr.sgml : 20070420
<ACCEPTANCE-DATETIME>20070420165201
ACCESSION NUMBER:		0000950134-07-008680
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		5
FILED AS OF DATE:		20070420
DATE AS OF CHANGE:		20070420
EFFECTIVENESS DATE:		20070420

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NATURAL HEALTH TRENDS CORP
		CENTRAL INDEX KEY:			0000912061
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-MISCELLANEOUS NONDURABLE GOODS [5190]
		IRS NUMBER:				592705336
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-142269
		FILM NUMBER:		07779481

	BUSINESS ADDRESS:	
		STREET 1:		2050 DIPLOMAT DRIVE
		STREET 2:		--
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
		BUSINESS PHONE:		972-241-4080

	MAIL ADDRESS:	
		STREET 1:		2050 DIPLOMAT DRIVE
		STREET 2:		--
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>d45728sv8.htm
<DESCRIPTION>FORM S-8
<TEXT>
<HTML>
<HEAD>
<TITLE>sv8</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<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 align="center" style="font-size: 10pt; margin-top: 18pt"><B>As filed with the Securities and Exchange Commission on April&nbsp;20, 2007</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Registration No.&nbsp;333-</B>
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, DC 20549</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM S-8</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 1pt"><B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>NATURAL HEALTH TRENDS CORP.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in its Charter)</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="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>59-2705336</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other Jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Incorporation or Organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>2050 Diplomat Drive<BR>
Dallas, Texas 75234</B><BR>
(Address of Principal Executive Offices)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Natural Health Trends Corp.<BR>
2007 Equity Incentive Plan</B><BR>
(Full Title of the Plan)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Gary C. Wallace<BR>
General Counsel<BR>
Natural Health Trends Corp.<BR>
2050 Diplomat Drive</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Dallas, Texas 75234</B><BR>
(Name and Address of Agent for Service)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>(972)&nbsp;241-4080</B><BR>
(Telephone Number, Including Area Code, of Agent for Service)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><I>Copy to</I>:</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>John B. McKnight<BR>
Locke Liddell &#038; Sapp LLP<BR>
2200 Ross Avenue, Suite&nbsp;2200<BR>
Dallas, Texas 75201<BR>
(214)&nbsp;740-8000</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>CALCULATION OF REGISTRATION FEE</B></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="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Title of Securities</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount to be</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Offering Price</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Aggregate Offering</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount of</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>to be Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registered (1)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>per Share (2)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Price (2)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registration Fee(3)</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Common Stock, $0.001
par value per share</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">1,550,000</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$2.03</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$3,146,500</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">$96.60</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

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


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Pursuant to Rule 416(a) promulgated under the Securities Act of 1933, as amended, this
Registration Statement shall also cover such indeterminate number of additional shares of
Common Stock as may become issuable pursuant to terms designed to prevent dilution
resulting from stock splits, stock dividends, mergers or combinations or similar
transactions.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the registration fee. This fee was
calculated in accordance with Rule 457(c) and (h)&nbsp;under the Securities Act of 1933, as
amended, on the basis of the average of the high and low prices for the Common Stock on The
Nasdaq Global Market on April&nbsp;18, 2007.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Calculated pursuant to Section 6(b) of the Securities Act of 1933, as amended.</TD>
</TR>

</TABLE>



<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>










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

<!-- PAGEBREAK -->
<P><HR noshade><P>

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




<!-- TOC -->
<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>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">PART I INFORMATION REQUIRED IN THE SECTION 10(A) PROSPECTUS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;1. Plan Information</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">Item&nbsp;2. Registrant Information and Employee Plan Annual Information</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">PART II INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#004">Item&nbsp;3. Incorporation of Documents by Reference</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#005">Item&nbsp;4. Description of Securities</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#006">Item&nbsp;5. Interests of Named Experts and Counsel</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#007">Item&nbsp;6. Indemnification of Directors and Officers</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#008">Item&nbsp;7. Exemption From Registration Claimed</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#009">Item&nbsp;8. Exhibits</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#010">Item&nbsp;9. Undertakings</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="d45728exv5w1.htm">Opinion of Locke Liddell & Sapp LLP</A></TD></TR>
<TR><TD colspan="9"><A HREF="d45728exv23w1.htm">Consent of BDO Seidman, LLP</A></TD></TR>
<TR><TD colspan="9"><A HREF="d45728exv23w2.htm">Consent of Lane Gorman Trubitt, L.L.P.</A></TD></TR>
<TR><TD colspan="9"><A HREF="d45728exv99w1.htm">2007 Equity Incentive Plan</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>






<!-- link1 "PART I INFORMATION REQUIRED IN THE SECTION 10(A) PROSPECTUS" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART I</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION REQUIRED IN THE SECTION 10(A) PROSPECTUS</B>
</DIV>

<!-- link2 "Item&nbsp;1. Plan Information" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1. </B><B><I>Plan Information.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information specified by Item&nbsp;1 of Part&nbsp;I of Form S-8 is omitted from this Registration
Statement in accordance with Rule&nbsp;428 under the Securities Act of 1933, as amended (the &#147;Securities
Act&#148;), and the introductory note to Part&nbsp;I of Form S-8.
</DIV>
<!-- link2 "Item&nbsp;2. Registrant Information and Employee Plan Annual Information" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2. </B><B><I>Registrant Information and Employee Plan Annual Information.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information specified by Item&nbsp;2 of Part&nbsp;I of Form S-8 is omitted from this Registration
Statement in accordance with Rule&nbsp;428 under the Securities Act and the introductory note to Part&nbsp;I
of Form S-8.
</DIV>
<!-- link1 "PART II INFORMATION REQUIRED IN THE REGISTRATION STATEMENT" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</B>
</DIV>

<!-- link2 "Item&nbsp;3. Incorporation of Documents by Reference" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3. </B><B><I>Incorporation of Documents by Reference.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The documents set forth below are hereby incorporated by reference in this Registration
Statement:
</DIV>

<DIV style="margin-top: 6pt">
<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our annual report on Form 10-K for the year ended December&nbsp;31, 2006, filed with the
Commission on March&nbsp;28, 2007;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our current reports on Form 8-K filed with the Commission on January&nbsp;9, 2007,
February&nbsp;26, 2007, March&nbsp;6, 2007, March&nbsp;19, 2007, March&nbsp;28, 2007 and April&nbsp;17, 2007; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of our common stock contained in our registration statement on
Form 8-A dated June&nbsp;20, 1995, filed pursuant to Section&nbsp;12 of the Securities Exchange
Act of 1934, as amended (the &#147;Exchange Act&#148;), and any amendment or report filed for the
purpose of updating such information.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All documents subsequently filed by us pursuant to Sections&nbsp;13(a), 13(c), 14 and 15(d) of the
Exchange Act, prior to the filing of a post-effective amendment which indicates that all securities
offered hereby have been sold or that deregisters the securities offered hereby then remaining
unsold, shall be deemed to be incorporated by reference in this Registration Statement and to be a
part hereof commencing on the respective dates on which such documents are filed. Any statement
contained in a document incorporated or deemed to be incorporated by reference in this Registration
Statement shall be deemed to be modified or superseded for purposes of this Registration Statement
to the extent that a statement contained in this Registration Statement or in any other
subsequently filed document that also is or is deemed to be incorporated by reference in this
Registration Statement modifies or supersedes such statement. Any such statement so modified or
superseded shall not be deemed to constitute a part of this Registration Statement, except as such
statement is so modified or superceded.
</DIV>
<!-- link2 "Item&nbsp;4. Description of Securities" -->
<DIV align="left"><A NAME="005"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4. </B><B><I>Description of Securities.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>
<!-- link2 "Item&nbsp;5. Interests of Named Experts and Counsel" -->
<DIV align="left"><A NAME="006"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5. </B><B><I>Interests of Named Experts and Counsel.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>
<!-- link2 "Item&nbsp;6. Indemnification of Directors and Officers" -->
<DIV align="left"><A NAME="007"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6. </B><B><I>Indemnification of Directors and Officers.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The General Corporation Law of the State of Delaware and the Company&#146;s Certificate of
Incorporation and Bylaws provide for indemnification of the Company&#146;s directors and officers for
liabilities and expenses that they may incur in such capacities. In general, directors and officers
are indemnified with respect to actions taken in good
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-1<!-- /Folio -->
</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 align="left" style="font-size: 10pt; margin-top: 6pt">faith in a manner reasonably believed to be in, or not opposed to, the Company&#146;s best
interests and, with respect to any criminal action or proceeding, actions that the indemnitee had
no reasonable cause to believe were unlawful.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the indemnification provided by the Delaware General Corporation Law and the
Company&#146;s Certificate of Incorporation and Bylaws, the Company has entered into an Indemnification
Agreement with each of its directors and one executive officer (each, an &#147;Indemnified Party&#148;)
pursuant to which the Company agrees to indemnify each Indemnified Party (1)&nbsp;in general, for all
reasonable expenses (including attorneys&#146; fees) (which shall be advanced to the Indemnified Party)
incurred by the Indemnified Party in connection with any action, suit, arbitration, alternate
dispute resolution mechanism, investigation (including any internal corporate investigation),
administrative hearing or any other actual, threatened or completed proceeding, whether civil,
criminal, administrative or investigative, formal or informal and any appeal from any of the
foregoing, other than one initiated by the Indemnified Party (unless initiated by the Indemnified
Party to enforce the Indemnified Party&#146;s rights under such Indemnified Party&#146;s Indemnification
Agreement) (each of the foregoing, a &#147;Proceeding&#148;) to the fullest extent permitted by applicable
law, (2)&nbsp;for all reasonable expenses (including attorneys&#146; fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by such Indemnified Party or on behalf of such
Indemnified Party in connection with a Proceeding in which the Indemnified Party is, or is
threatened to be made, a party to or is otherwise involved in, other than a Proceeding by or in the
right of the Company, provided that the Indemnified Party acted in good faith and has not been
adjudged during the course of such Proceeding to have derived an improper personal benefit from the
transaction or occurrence forming the basis of such Proceeding, and (3)&nbsp;for all reasonable expenses
(including attorneys&#146; fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by such Indemnified Party or on behalf of such Indemnified Party in connection
with a Proceeding brought by or in the right of the Company to procure a judgment in its favor in
which the Indemnified Party is, or is threatened to be made, a party to or is otherwise involved
in, provided that the Indemnified Party acted in good faith and has not been adjudged during the
course of such Proceeding to have derived an improper personal benefit from the transaction or
occurrence forming the basis of such Proceeding, and provided further that no indemnification will
be provided in respect of any claim, issue or matter as to which such Indemnified Party is adjudged
to be liable to the Company if applicable law prohibits such indemnification, proved that, if
applicable law so permits, indemnification shall nevertheless be made by the Company in such event
if and only to the extent that the court which is considering the matter shall so determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has purchased directors&#146; and officers&#146; liability insurance policies indemnifying
its directors and officers and the directors and officers of its subsidiaries against claims and
liabilities, with stated exceptions, to which they may become subject by reason of their positions
with the Company or its subsidiaries as directors or officers.
</DIV>
<!-- link2 "Item&nbsp;7. Exemption From Registration Claimed" -->
<DIV align="left"><A NAME="008"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7. </B><B><I>Exemption From Registration Claimed.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>
<!-- link2 "Item&nbsp;8. Exhibits" -->
<DIV align="left"><A NAME="009"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8. </B><B><I>Exhibits.</I></B>
</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="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen Stock Certificate of the Company (incorporated by
reference to Exhibit&nbsp;4.1 to the Company&#146;s Annual Report on Form
10-K filed with the Securities and Exchange Commission on May&nbsp;8,
2006).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Incorporation of the Company (incorporated by
reference to Exhibit&nbsp;3.1 to the Company&#146;s Current Report on Form
8-K filed with the Securities and Exchange Commission on July&nbsp;12,
2005).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bylaws of the Company (incorporated by reference to Exhibit&nbsp;3.2 to
the Company&#146;s Current Report on Form&nbsp;8-K filed with the Securities
and Exchange Commission on July&nbsp;12, 2005).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Locke Liddell &#038; Sapp LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of BDO Seidman, LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Lane Gorman Trubitt, L.L.P.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-2<!-- /Folio -->
</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 align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.3*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Locke Liddell &#038; Sapp LLP (included in its opinion filed as Exhibit&nbsp;5.1).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (included on the signature page of this Registration Statement).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Natural Health Trends Corp. 2007 Equity Incentive Plan.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Filed herewith.</TD>
</TR>

</TABLE>


<!-- link2 "Item&nbsp;9. Undertakings" -->
<DIV align="left"><A NAME="010"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9. </B><B><I>Undertakings.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant hereby undertakes:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;to include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;to reflect in the prospectus any facts or events arising after the effective date of this
registration statement (or the most recent post-effective amendment hereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in this registration
statement; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;to include any material information with respect to the plan of distribution not
previously disclosed in this registration statement or any material change to such information in
this registration statement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provided, however, that paragraphs (i)&nbsp;and (ii)&nbsp;do not apply if the information required to be
included in a post-effective amendment by those paragraphs is contained in periodic reports filed
with or furnished to the Commission by the registrant pursuant to Section&nbsp;13 or Section 15(d) of
the Exchange Act that are incorporated by reference in this registration statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;That, for the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered herein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To remove from registration by means of a post-effective amendment any of the securities
being registered that remain unsold at the termination of the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;That, for purposes of determining any liability under the Securities Act, each filing of
the registrant&#146;s annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act that
is incorporated by reference in this registration statement shall be deemed to be a new
registration statement relating to the securities offered herein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;Insofar as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Commission such indemnification is against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities Act and will be
governed by the final adjudication of such issue.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-3<!-- /Folio -->
</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">
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="011"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act, Natural Health Trends Corp. certifies that
it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8
and has duly caused this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Dallas, State of Texas, on the 20th day of April, 2007.
</DIV>

<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" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">NATURAL HEALTH TRENDS CORP.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Chris T. Sharng
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-4<!-- /Folio -->
</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 align="center" style="font-size: 10pt; margin-top: 18pt"><B>POWER OF ATTORNEY</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>KNOW ALL MEN BY THESE PRESENTS</B>, that each person whose signature appears below hereby
constitutes and appoints Chris T. Sharng and Gary C. Wallace, each his true and lawful
attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his
name, place and stead, in any and all capacities, to sign any and all amendments (including
post-effective amendments) to this Registration Statement, and any registration statement related
to the offering contemplated by this Registration Statement that is to be effective upon filing
pursuant to Rule 462(b) under the Securities Act of 1933, and to file the same, with all exhibits
thereto, and all other documents in connection therewith, with the Securities and Exchange
Commission and any state or other securities authority, granting unto each said attorney-in-fact
and agent full power and authority to do and perform each and every act in person, hereby ratifying
and confirming all that said attorneys-in-fact and agents, or either of them or their or his
substitute or substitutes may lawfully do or cause to be done by virtue hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has
been signed by the following persons in the capacities and on the dates indicated.
</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="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Signatures</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Chris T. Sharng
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President (Principal Executive Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;20, 2007</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Chris T. Sharng
</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"><!-- Blank Space -->
    <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">/s/ Timothy S. Davidson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice President and Chief
Financial Officer (Principal Financial

</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;20, 2007</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Timothy S. Davidson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and Accounting Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <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">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice
Chairman of the Board
</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 style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Sir Brian Wolfson
</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"><!-- Blank Space -->
    <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">/s/ Randall A. Mason
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;20, 2007</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Randall A. Mason
</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"><!-- Blank Space -->
    <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">/s/ Anthony B. Martino
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;20, 2007</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Anthony B. Martino
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->II-5<!-- /Folio -->
</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 align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;10.</B>
</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="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen Stock Certificate of the Company (incorporated by reference to Exhibit
4.1 to the Company&#146;s Annual Report on Form&nbsp;10-K filed with the Securities and
Exchange Commission on May&nbsp;8, 2006).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Incorporation of the Company (incorporated by reference to Exhibit
3.1 to the Company&#146;s Current Report on Form&nbsp;8-K filed with the Securities and
Exchange Commission on July&nbsp;12, 2005).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bylaws of the Company (incorporated by reference to Exhibit&nbsp;3.2 to the Company&#146;s
Current Report on Form&nbsp;8-K filed with the Securities and Exchange Commission on
July&nbsp;12, 2005).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Locke Liddell &#038; Sapp LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of BDO Seidman, LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Lane Gorman Trubitt, L.L.P.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.3*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Locke Liddell &#038; Sapp LLP (included in its opinion filed as Exhibit&nbsp;5.1).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (included on the signature page of this Registration Statement).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Natural Health Trends Corp. 2007 Equity Incentive Plan.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Filed herewith.</TD>
</TR>

</TABLE>




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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>2
<FILENAME>d45728exv5w1.htm
<DESCRIPTION>OPINION OF LOCKE LIDDELL & SAPP LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv5w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;5.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Locke Liddell &#038; Sapp LLP<BR>
2200 Ross Avenue, Suite&nbsp;2200<BR>
Dallas, Texas 75201-6776
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">April&nbsp;20, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Natural Health Trends Corp.<BR>
2050 Diplomat Drive<BR>
Dallas, Texas 75234

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as special counsel to Natural Health Trends Corp., a Delaware corporation (the
&#147;<U>Company</U>&#148;), in connection with the Registration Statement on Form S-8 filed by the Company
with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended,
relating to the offer and sale of up to 1,550,000 shares (the &#147;<U>Shares</U>&#148;) of the
Company&#146;s Common Stock, $0.001 par value per share (the &#147;<U>Common Stock</U>&#148;), that may be issued
pursuant to the Natural Health Trends Corp. 2007 Equity Incentive Plan (the &#147;<U>2007 Plan</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with this opinion, we have examined and are familiar with originals or copies,
certified or otherwise identified to our satisfaction, of such documents, corporate records,
certificates of public officials and other instruments as we have deemed necessary or advisable in
connection with this opinion, including the Company&#146;s Certificate of Incorporation, Bylaws and the
2007 Plan. In our examination we have assumed the genuineness of all signatures, the legal
capacity of natural persons, the authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to us as certified or photostatic
copies, the authenticity of originals of such copies and the authenticity of electronic or
telephonic confirmations of public officials and others. As to facts material to our opinion, we
have relied upon certificates or electronic or telephonic confirmations of public officials and
certificates, documents, statements and other information of the Company or its representatives or
officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the contemplated issuance of the Shares, we have assumed the receipt of
proper consideration for the issuance thereof in excess of the par value thereof, and compliance
with all applicable laws related to the issuance of the Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon the foregoing, and based on our review of the Delaware General Corporation Law,
applicable provisions of the Delaware Constitution and reported judicial decisions interpreting
these laws, we are of the opinion that the Shares, when issued and paid for in accordance with the
terms of the 2007 Plan, and in the manner contemplated in the Registration Statement, including the
prospectus relating to the offer and sale of such Shares, will be legally issued, fully paid and
non-assessable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion is being furnished in accordance with the requirements of Item&nbsp;601(b)(5) of
Regulation&nbsp;S-K under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion is limited to the laws of the State of Delaware, and we do not express any
opinion to the laws of any other jurisdiction and we express no opinion as to the effect of any
other laws on the opinions stated herein.
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The opinions expressed herein are as of the date hereof and are based on the assumptions set
forth herein and the laws and regulations currently in effect, and we do not undertake and hereby
disclaim any obligation to advise you of any change with respect to any matter set forth herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the filing of this opinion as an Exhibit to the Registration Statement.
In giving such opinion, we do not thereby admit that we are acting within the category of persons
whose consent is required under Section&nbsp;7 of the Securities Act and the rules and regulations
promulgated thereunder.
</DIV>

<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" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
<BR>
<BR>
LOCKE LIDDELL &#038; SAPP LLP<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ John B. McKnight
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">John B. McKnight&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>d45728exv23w1.htm
<DESCRIPTION>CONSENT OF BDO SEIDMAN, LLP
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;23.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>Consent of Independent Registered Public Accounting Firm</U>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Natural Health Trends Corp.<BR>
Dallas, Texas
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the incorporation by reference into the Registration Statement on Form S-8 our report
dated April&nbsp;28, 2006 except for Note 17 as to which the date is May&nbsp;5, 2006 and Note 2 as to which
the date is May&nbsp;29, 2006 relating to the consolidated financial statements of Natural Health Trends
Corp. as of December&nbsp;31, 2005 and for each of the two years in the period ended December&nbsp;31, 2005
appearing in the Company&#146;s Annual Report on Form 10-K. Our report contains an explanatory
(emphasis)&nbsp;paragraph stating sales of products to members in China represent a significant portion
of the Company&#146;s net sales. Any disruption of such sales would have a negative impact upon the
Company&#146;s future operations. Further, if it were determined that import duties into China are
underpaid, the Company could be required to satisfy part or all of the liability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">/s/ BDO Seidman, LLP
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">April&nbsp;20, 2007<BR>
Dallas, Texas

</DIV>

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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>4
<FILENAME>d45728exv23w2.htm
<DESCRIPTION>CONSENT OF LANE GORMAN TRUBITT, L.L.P.
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;23.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Consent of Independent Registered Public Accounting Firm
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consent to the incorporation by reference into the Registration Statement on Form S-8 of
our report dated March&nbsp;20, 2007, with respect to the consolidated financial statements of Natural
Health Trends Corp. included in its Annual Report (Form 10-K) for the year ended December&nbsp;31, 2006
filed with the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">/s/ Lane Gorman Trubitt, L.L.P.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dallas, Texas<BR>
April&nbsp;20, 2007

</DIV>


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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>5
<FILENAME>d45728exv99w1.htm
<DESCRIPTION>2007 EQUITY INCENTIVE PLAN
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99.1
</DIV>




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NATURAL HEALTH TRENDS CORP.<BR>
2007 EQUITY INCENTIVE PLAN</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. <U>Purpose and Eligibility</U>. The purpose of this 2007 Equity Incentive Plan (the &#147;Plan&#148;) of
Natural Health Trends Corp., a Delaware corporation (the &#147;Company&#148;) is to provide stock options,
stock issuances and other equity interests in the Company (each, an &#147;Award&#148;) to (a)&nbsp;Employees,
officers, directors, consultants and advisors of the Company and any Parent or Subsidiary thereof,
and (b)&nbsp;any other Person who is determined by the Committee of the Board of Directors of the
Company (the &#147;Board&#148;) to have made (or is expected to make) contributions to the Company or any
Parent or Subsidiary thereof. Any person to whom an Award has been granted under the Plan is
called a &#147;Participant.&#148; Additional definitions are contained in Section&nbsp;3 and certain other
Sections of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. <U>Restatement and Effective Date</U>. This Plan replaces in its entirety the Natural Health
Trends Corp. 2002 Stock Option Plan (the &#147;2002 Plan&#148;). As of the date this Plan is approved by the
Company&#146;s shareholders, the 2002 Plan shall be deemed terminated; provided, however, that, after
such date of termination, and for the period of time thereafter during which this Plan or any
successor thereto remains in existence, all &#147;Stock Options,&#148; as defined in the 2002 Plan, and
vested stock issuances with respect thereto, shall be subject to the terms of the 2002 Plan and the
applicable grant agreement executed thereunder, and not to the terms of this Plan, except to the
extent that (a)&nbsp;there is no conflict between the terms of the 2002 Plan and the terms of this Plan
with respect to such Stock Options and vested stock issuances or (b)&nbsp;the recipient of such Stock
Options and vested stock issuances consents to the applicability of this Plan. In the event of the
applicability of (a)&nbsp;or (b)&nbsp;of the immediately preceding sentence, the Committee shall take such
actions as are consistent with Section&nbsp;14j of this Plan and applicable law to apply the provisions
of this Plan to Stock Options and vested stock issuances with respect thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. <U>Certain Definitions</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<B>&#147;Base Salary&#148; </B>shall mean a Participant&#146;s rate of annual compensation for services performed
for the Company, Parent or Subsidiary, as applicable, in effect on the first day of an applicable
Performance Period. In computing Base Salary, only such compensation as would be includable in the
Participant&#146;s gross income for United States federal income tax purposes shall be included
(including amounts excludable under Section&nbsp;911 of the Code) or which would have been so includable
if the Participant had been a United States citizen or resident; provided, however, that a
Participant&#146;s pre-tax elective or salary reduction contributions to a cafeteria plan, cash or
deferred arrangement, qualified transportation fringe benefit plan, tax-sheltered annuity, and the
amounts credited to a Participant under a non-qualified deferred compensation plan, each within the
meaning of Treasury Regulation&nbsp;Section&nbsp;1.280G-1, Q&#038;A 21(a) shall be taken into account. For
purposes of this definition, Parent and Subsidiary shall be defined by applying the applicable
statutory references in Section&nbsp;3n and 3s, respectively, by replacing &#147;more than 50%&#148; with &#147;at
least 80%&#148; where the former term appears.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<B>&#147;Cause&#148; </B>shall mean
</DIV>

<DIV style="margin-top: 6pt">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;cause&#148; or words of similar import contained in the
Participant&#146;s written employment agreement, if any, with the Company; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>conduct, as determined by the Committee, involving one or more
of the following:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<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="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>gross misconduct or inadequate performance by
the Participant which is injurious to the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the commission of an act of embezzlement, fraud
or theft, which results in economic loss, damage or injury to the
Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(C)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the unauthorized disclosure of any trade secret
or confidential information of the Company (or any client, customer,
supplier or other third party who has a business relationship with the
Company) or the violation of any non-competition or non-solicitation
covenant or assignment of inventions obligation with the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(D)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the commission of an act which constitutes
unfair competition with the Company or which induces any customer or
prospective customer of the Company to breach a contract with the
Company or to decline to do business with the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(E)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the indictment of the Participant for a felony
or serious misdemeanor offense, either in connection with the
performance of his or her obligations to the Company or which shall
adversely affect the Participant&#146;s ability to perform such obligations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(F)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the commission of an act of fraud or breach of
fiduciary duty which results in loss, damage or injury to the Company;
or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(G)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the failure of the Participant to perform in a
material respect his or her employment, consulting or advisory
obligations without proper cause.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For purposes of this definition, &#147;Company&#148; shall be deemed to include any Parent or
Subsidiary.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<B>&#147;Change in Control&#148; </B>shall mean
</DIV>

<DIV style="margin-top: 6pt">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The acquisition by any individual, entity or group (within the
meaning of Section&nbsp;13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the <B>&#147;Exchange Act&#148;</B>)) of beneficial ownership (within the meaning of
Rule&nbsp;13d-3 promulgated under the Exchange Act) of 50% or more of the then
outstanding shares of voting stock of the Company (the <B>&#147;Voting Stock&#148;</B>);
provided, however, that any acquisition by the Company or its subsidiaries, or
any employee benefit plan (or related trust) of the Company or its subsidiaries
of 50% or more of Voting Stock shall not constitute a Change in Control; and
provided, further, that any acquisition by a corporation with respect to which,
following such acquisition, more than 50% of the then outstanding shares of
common
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>stock of such corporation, is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who
were the beneficial owners of the Voting Stock immediately prior to such
acquisition in substantially the same proportion as their ownership,
immediately prior to such acquisition, of the Voting Stock, shall not
constitute a Change in Control;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Individuals who, as of the Effective Date, constitute the Board
(the <B>&#147;Incumbent Directors&#148;</B>) cease for any reason (other than malfeasance) to
constitute a majority of the members of the Board; provided that any individual
who becomes a director after the Effective Date whose election or nomination
for election by the Company&#146;s shareholders was approved by a majority of the
members of the Incumbent Directors (other than an election or nomination of an
individual whose initial assumption of office is in connection with an actual
or threatened &#147;election contest&#148; relating to the election of the Directors of
the Company (as such terms are used in Rule&nbsp;14a-11 under the Exchange Act),
<B>&#147;tender offer&#148; </B>(as such term is used in Section 14(d) of the Exchange Act) or a
proposed Merger (as defined below) shall be deemed to be members of the
Incumbent Directors; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The consummation of (A)&nbsp;a reorganization, merger or
consolidation (any of the foregoing, a <B>&#147;Merger&#148;</B>), in each case, with respect to
which all or substantially all of the individuals and entities who were the
beneficial owners of the Voting Stock immediately prior to such Merger do not,
following such Merger, beneficially own, directly or indirectly, more than 50%
of the then outstanding shares of common stock of the corporation resulting
from Merger, (B)&nbsp;a complete liquidation or dissolution of the Company or (C)
the sale or other disposition of all or substantially all of the assets of the
Company, excluding a sale or other disposition of assets to a Subsidiary of the
Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<B>&#147;Code&#148; </B>means the Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<B>&#147;Committee&#148; </B>shall mean the Compensation Committee of the Board or such other committee
designated by the Board that satisfies any then applicable requirements of the New York Stock
Exchange, Nasdaq, or such other principal national stock exchange on which the Common Stock is then
traded, and which consists of two or more members of the Board, each of whom may be an outside
director within the meaning of Section 162(m) of the Code. Notwithstanding the foregoing, in the
case of any Award granted to any Participant who is a &#147;covered employee&#148; within the meaning of
Section&nbsp;162(m), the Committee shall consist of two or more members of the Board who are &#147;outside
directors&#148; within the meaning of such Section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<B>&#147;Common Stock&#148; </B>shall mean the common stock of the Company, par value of $.01 per share.
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.&nbsp;<B>&#147;Company,&#148; </B>for purposes of Awards other than Incentive Stock Options, shall include any
other business venture in which the Company has a direct or indirect significant interest, as
determined by the Committee in its sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.&nbsp;<B>&#147;Designated Beneficiary&#148; </B>shall mean the beneficiary designated by a Participant, in
accordance with Section&nbsp;16g hereof, to receive amounts due or exercise rights of the Participant in
the event of the Participant&#146;s death. In the absence of an effective designation by a Participant,
Designated Beneficiary shall mean the Participant&#146;s estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;<B>&#147;Determination Period&#148; </B>shall mean, with respect to any Performance Period, a period
commencing on or before the first day of the Performance Period and ending not later than the
earlier of (i)&nbsp;90&nbsp;days after the commencement of the Performance Period and (ii)&nbsp;the date on which
twenty-five percent (25%) of the Performance Period has been completed. Any action required to be
taken within a Determination Period may be taken at a later date if permissible under Section
162(m) of the Code or regulations promulgated thereunder, as they may be amended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.&nbsp;<B>&#147;Disability&#148; </B>shall mean the inability of the Participant to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.&nbsp;<B>&#147;Effective Date&#148; </B>shall mean January&nbsp;1, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.&nbsp;<B>&#147;Employee&#148; </B>shall mean an employee of the Company or any Parent or Subsidiary thereof, but
only if the employee is reported as such on the payroll records of such entity. For purposes of
eligibility under the Plan, an &#147;Employee&#148; shall include any person to whom an offer of employment
has been extended by the Company or any Parent or Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m.&nbsp;<B>&#147;ERISA&#148; </B>shall mean the Employee Retirement Income Security Act of 1974, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.&nbsp;<B>&#147;Good Reason&#148; </B>shall mean the occurrence of any one or more of the following events:
</DIV>

<DIV style="margin-top: 6pt">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a material breach by the Company of its obligation under this
Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a material diminution in the Participant&#146;s position or job
duties, as set forth in the Participant&#146;s written employment agreement with the
Company, Parent or Subsidiary, as applicable, or other written documentation;
or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any reduction in the Participant&#146;s Base Salary by more than 80
percent (80%), either in one step or a series of steps, within a Performance
Period;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">provided, however, that a Good Reason shall not exist involving any of the above
until the Company, in the case of (i)&nbsp;above, or the Company, Parent or Subsidiary,
as applicable, in the case of (ii)&nbsp;or (iii)&nbsp;above, has first failed to cure such
breach, diminution of position or job duties or reduction in Base Salary, as
applicable, within thirty (30)&nbsp;days of having been given written notice of the same
by the Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o.&nbsp;<B>&#147;Parent&#148; </B>shall mean a &#147;parent corporation,&#148; within the meaning of Section 424(e) of the
Code, with respect to the Company.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p.&nbsp;<B>&#147;Performance Period&#148; </B>shall mean a two or more-consecutive fiscal or calendar year period
for which performance or other goals are established herein with respect to an Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q.&nbsp;<B>&#147;Person&#148; </B>shall mean a person within Section&nbsp;3(a)(9) of the Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r.&nbsp;<B>&#147;Plan&#148; </B>shall mean the Natural Health Trends Corp. 2007 Equity Incentive Plan, as set forth
herein, as it may be amended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s.&nbsp;<B>&#147;Retirement&#148; </B>shall mean the voluntary termination of the Participant at any time on or
after attaining age 65.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t.&nbsp;<B>&#147;Subsidiary&#148; </B>shall mean a &#147;subsidiary corporation,&#148; within the meaning of Section 424(f) of
the Code, with respect to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">4. <U>Administration.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>General</U>. The Plan shall be administered by the Committee. The Committee, in its
sole discretion, shall have the authority to grant and amend Awards, to adopt, amend and repeal
rules relating to the Plan and to interpret and correct the provisions of the Plan and any Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Powers and Responsibilities</U>. Subject to the express limitation of the Plan, the
Committee shall have the following discretionary powers, rights and responsibilities, in addition
to those described in Section&nbsp;4a.:
</DIV>

<DIV style="margin-top: 6pt">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to construe and determine the respective Stock Option
Agreements, other Agreements, Awards and the Plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to prescribe, amend and rescind rules and regulations relating
to the Plan and any Awards;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to determine the extent to which Award vesting schedules shall
be accelerated or Award payments made to, or forfeited by, a Participant in the
event of (A)&nbsp;the Participant&#146;s termination of employment with the Company or
any Parent or Subsidiary thereof due to Disability, Retirement, death, Good
Reason, Cause or other reason, or (B)&nbsp;a Change in Control of the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to determine the terms and provisions of the respective Stock
Option Agreements, other Agreements and Awards, which need not be identical;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">v.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to reduce or eliminate, as of the end of any applicable
Performance Period, based upon objective or subjective measures, the minimum or
maximum amount to be paid to a Participant under any Award who has qualified
for such minimum or maximum amount, provided, that such reduction does not
result in an increase in the amount payable to another Participant under
another Award;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">vi.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to grant Awards to Participants who are not &#147;covered employees&#148;
within the meaning of Section 162(m) based upon the attainment of performance</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV style="margin-top: 6pt">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>goals that </U>do not constitute &#147;objective performance goals&#148; within
the meaning of Section&nbsp;162(m); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">vii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to make all other determinations in the judgment of the
Committee necessary or desirable for the administration and interpretation of
the Plan.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any Stock Option Agreement, other Agreement or Award
in the manner and to the extent it shall deem expedient to carry the Plan, any Stock
Option Agreement, other Agreement or Award into effect and it shall be the sole and
final judge of such expediency. All decisions by the Committee shall be final and
binding on all interested persons. Neither the Company nor any member of the
Committee shall be liable for any action or determination relating to the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Delegation of Power</U>. The Committee may delegate some or all of its power and
authority hereunder to the President and Chief Executive Officer of the Company or other executive
officer of the Company as the Committee deems appropriate. Notwithstanding the foregoing, with
respect to any person who is a &#147;covered employee&#148; within the meaning of Section 162(m) of the Code
or who, in the Committee&#146;s judgment, is likely to be a covered employee at any time during the
applicable Performance Period, only the Committee shall be permitted to (i)&nbsp;designate such person
to participate in the Plan for such Performance Period, (ii)&nbsp;establish performance goals and
Individual Award Opportunities for such person, and (iii)&nbsp;certify the achievement of such
performance goals. For purposes of the immediately preceding sentence, &#147;Committee&#148; shall mean two
or more members of the Board who are &#147;outside directors&#148; within the meaning of Section 162(m) of
the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5. <U>Performance Goals and Other Criteria</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Role of Committee</U>. The Committee shall establish within the Determination Period
of each Performance Period (i)&nbsp;one or more objective performance goals for each Participant or for
any group of Participants (or both), provided that the outcome of each goal is substantially
uncertain at the time the Committee establishes such goal and/or (ii)&nbsp;other criteria, including,
but not limited to, performance criteria that do not satisfy the requirements of Treasury
Regulation&nbsp;Section&nbsp;1.162-27(e)(2) or time vesting criteria, the satisfaction of which is required
for the payment of an Incentive Award Opportunity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Performance Factors</U>. Performance goals shall be based exclusively on one or more
of the following objective Company (including any division or operating unit thereof) or individual
measures, stated in either absolute terms or relative terms, such as rates of growth or
improvement, the attainment by a share of Common Stock of a specified fair market value for a
specified period of time, earnings per share, earnings per share excluding non-recurring, special
or extraordinary items, return to stockholders (including dividends), return on capital, return on
total capital deployed, return on assets, return on equity, earnings of the Company before or after
taxes and/or interest, revenues, revenue increase, distributor count, new distributor count, growth
in distributor count, distributor retention rate, distributor attrition rate, repeat purchase rate,
recurring revenue, recurring revenue increase, market share, cash flow or cost reduction goals,
cash flow provided by
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">operations, net cash flow, short-term or long-term cash flow return on investment, interest
expense after taxes, return on investment, return on investment capital, economic value created,
operating margin, gross profit margin, net profit margin, pre-tax income margin, net income margin,
net income before or after taxes, pretax earnings before interest, depreciation and amortization,
pre-tax operating earnings after interest expense and before incentives, and/or extraordinary or
special items, operating earnings, net cash provided by operations, and strategic business
criteria, consisting of one or more objectives based on meeting specified market penetration,
geographic business expansion goals, cost targets, customer satisfaction, reductions in errors and
omissions, reductions in lost business, management of employment practices and employee benefits,
supervision of litigation and information technology, quality and quality audit scores,
productivity, efficiency, and goals relating to acquisitions or divestitures, or any combination of
the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Participants Who Are Covered Employees</U>. With respect to Participants who are
&#147;covered employees&#148; within the meaning of Section 162(m) of the Code or who, in the Committee&#146;s
judgment, are likely to be covered employees at any time during the applicable Performance Period,
an Individual Award Opportunity may be based only on performance factors that are compliant with
the requirements of Treasury Regulation&nbsp;Section&nbsp;1.162-27(e)(2). For this purpose, the factors
listed in Section&nbsp;4.1(b) shall be deemed to be compliant with the requirements of such Treasury
Regulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Participants Who Are Not Covered Employees</U>. Notwithstanding any provision of this
Plan to the contrary, with respect to Participants who are not &#147;covered employees&#148; within the
meaning of Section 162(m) of the Code and who, in the Committee&#146;s judgment, are not likely to be
covered employees at any time during the applicable Performance Period, the performance or other
goals established for the Performance Period may consist of any objective Company (including any
division or operating unit thereof) or individual measures, whether or not listed in (b)&nbsp;above or
whether or not compliant with the requirements of Treasury Regulation&nbsp;Section&nbsp;1.162-27(e)(2), and
the Committee may grant Awards without regard to the need for satisfaction of any performance goals
whatsoever and/or without reference to any particular Performance Period. Without in any way
limiting the generality of the foregoing, such performance goals may include subjective goals, the
satisfaction of which shall be determined by the Committee, in its sole and absolute discretion,
and the Committee may grant Awards subject only to the requirement of time vesting. Performance or
other goals with respect to an Award shall be subject to such other special rules and conditions as
the Committee may establish at any time within the Determination Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>Applicability of Section&nbsp;Rule&nbsp;163</U>. Notwithstanding anything to the contrary in
the foregoing if, or at such time as, the Common Stock is or becomes registered under <U>Section
12</U> of the Securities and Exchange Act of 1934, as amended (the <B>&#147;Exchange Act&#148;</B>), or any
successor statute, the Plan shall be administered in a manner consistent with Rule&nbsp;163
promulgated thereunder, as it may be amended from time to time, or any successor rules <B>(&#147;Rule
163&#148;</B>), such that all subsequent grants of Awards hereunder to Reporting Persons, as hereinafter
defined, shall be exempt under such rule. Those provisions of the Plan which make express
reference to Rule&nbsp;163 or which are required in order for certain option transactions to qualify
for exemption under Rule&nbsp;163 shall apply only to such persons as are required to file reports
under Section&nbsp;16 (a)&nbsp;of the Exchange Act (a <B>&#147;Reporting Person&#148;</B>).
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<U>Applicability of Section&nbsp;162(m)</U>. Notwithstanding any provisions in this Plan to
the contrary, whenever the Committee is authorized to exercise its discretion in the administration
or amendment of this Plan or any Award hereunder or otherwise, the Committee may not exercise such
discretion in a manner that would cause any outstanding Award that would otherwise qualify as
performance-based compensation under Section&nbsp;162 (m)&nbsp;Code and the regulations thereunder (&#147;Section
162 (m)&#148;) to fail to so qualify under Section&nbsp;162 (m). To the extent necessary for an Award
granted hereunder to qualify as performance-based compensation under Section&nbsp;162(m), such Award
shall be made pursuant to preestablished objective performance criteria. In furtherance thereof,
performance goals shall be based exclusively on one or more of the objective Company (including any
division or operating unit thereof) or individual measures set forth in Section&nbsp;5b. hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6. <U>Stock Available for Awards</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Number of Shares</U>. Subject to adjustment under <U>Section&nbsp;6c</U>, the aggregate
number of shares of Common Stock of the Company that may be issued pursuant to the Plan is the
Available Shares (as defined on the last page). If any Award expires, or is terminated,
surrendered or forfeited, in whole or in part, the unissued Common Stock covered by such Award
shall again be available for the grant of Awards under the Plan. If an Award granted under the Plan
shall expire or terminate for any reason without having been exercised in full, the unpurchased
shares subject to such Award shall again be available for subsequent Awards under the Plan. Shares
issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury
shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Per-Participant Limit</U>. Subject to adjustment under <U>Section&nbsp;6c</U>, no
Participant may be granted Awards during any one fiscal year to purchase more than 150,000 shares
of Common Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Adjustment to Common Stock</U>. Subject to <U>Section&nbsp;14</U>, in the event of any
stock split, reverse stock split, stock dividend, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off,
split-up, or other similar change in capitalization or similar event, (i)&nbsp;the number and class of
securities available for Awards under the Plan and the per-Participant share limit and (ii)&nbsp;the
number and class of securities, vesting schedule and exercise price per share subject to each
outstanding Option and Stock Appreciation Right shall be adjusted by the Company (or substituted
Awards may be made if applicable) to the extent the Committee shall determine, in good faith, that
such an adjustment (or substitution) is appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7. <U>Stock Option Awards.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>General</U>. The Committee may grant options to purchase Common Stock (each, an
<B>&#147;Option&#148;</B>) and determine the number of shares of Common Stock to be covered by each Option, the
exercise price of each Option and the conditions and limitations applicable to the exercise of each
Option and the shares of Common Stock issued upon the exercise of each Option, including, but not
limited to, vesting provisions and restrictions relating to applicable federal or state securities
laws. Each Option will be evidenced by a Stock Option Agreement, consisting of
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">a Notice of Stock Option Award and a Stock Option Award Agreement (collectively, a <B>&#147;Stock
Option Agreement&#148;</B>).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Incentive Stock Options</U>. An Option that the Committee intends to be an incentive
stock option (an <B>&#147;Incentive Stock Option&#148;</B>) as defined in Section&nbsp;422 of the Code, as amended, or
any successor statute <B>(&#147;Section&nbsp;422&#148;</B>), shall be granted only to an Employee and shall be subject to
and shall be construed consistently with the requirements of Section&nbsp;422 and regulations
thereunder. The Committee, the Board and the Company shall have no liability if an Option or any
part thereof that is intended to be an Incentive Stock Option does not qualify as such. An Option
or any part thereof that does not qualify as an Incentive Stock Option is referred to herein as a
<B>&#147;Nonstatutory Stock Option&#148; </B>or <B>&#147;Nonqualified Stock Option.&#148;</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Dollar Limitation</U>. For so long as the Code shall so provide, Options granted to any
Employee under the Plan (and any other incentive stock option plans of the Company) which are
intended to qualify as Incentive Stock Options shall not qualify as Incentive Stock Options to the
extent that such Options, in the aggregate, become exercisable for the first time in any one
calendar year for shares of Common Stock with an aggregate Fair Market Value (as defined below and
determined as of the respective date or dates of grant) of more than $100,000. The amount of
Incentive Stock Options which exceed such $100,000 limitation shall be deemed to be Nonqualified
Stock Options. For the purpose of this limitation, unless otherwise required by the Code or
regulations of the Internal Revenue Service or determined by the Committee, Options shall be taken
into account in the order granted, and the Committee may designate that portion of any Incentive
Stock Option that shall be treated as Nonqualified Option in the event that the provisions of this
paragraph apply to a portion of any Option. The designation described in the preceding sentence
may be made at such time as the Committee considers appropriate, including after the issuance of
the Option or at the time of its exercise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Exercise Price</U>. The Committee shall establish the exercise price (or determine the
method by which the exercise price shall be determined) at the time each Option is granted and
specify the exercise price in the applicable Stock Option Agreement; provided, however, in no event
may the per share exercise price be less than the Fair Market Value (as defined below) of the
Common Stock on the date of grant; and provided, further, however, that, except as may be required
under <U>Section&nbsp;6c</U>, the Committee may not reduce, directly or indirectly, at any time
following the grant of the Option, the exercise price per share of Common Stock underlying the
Option to a level below the Fair Market Value per share of Common Stock on the date of grant. In
the case of an Incentive Stock Option granted to a Participant who, at the time of grant of such
Option, owns stock representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, then the exercise price shall be no less than
110% of the Fair Market Value of the Common Stock on the date of grant. In the case of a grant of
an Incentive Stock Option to any other Participant, the exercise price shall be no less than 100%
of the Fair Market Value of the Common Stock on the date of grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>Term of Options</U>. Each Option shall be exercisable at such times and subject to
such terms and conditions as the Committee may specify in the applicable Stock Option Agreement;
provided, that the term of any Incentive Stock Option may not be more than ten (10)&nbsp;years from the
date of grant. In the case of an Incentive Stock Option granted to a Participant
</DIV>


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


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">who, at the time of grant of such Option, owns stock representing more than ten percent (10%)
of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of
the Option shall be no longer than five (5)&nbsp;years from the date of grant. The term of any
Nonqualified Stock Option may not be more than ten (10)&nbsp;years from the date of grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<U>Exercise of Option</U>. Options may be exercised only by delivery to the Company of a
written notice of exercise signed by the proper person together with payment in full as specified
in <U>Section&nbsp;7g</U> and the Stock Option Agreement for the number of shares for which the Option
is exercised.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.&nbsp;<U>Payment Upon Exercise</U>. Common Stock purchased upon the exercise of an Option shall
be paid for by one or any combination of the following forms of payment as permitted by the
Committee in its sole and absolute discretion:
</DIV>

<DIV style="margin-top: 6pt">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by check payable to the order of the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>only if the Common Stock is then publicly traded, by delivery
of an irrevocable and unconditional undertaking by a creditworthy broker
(selected by the Participant and otherwise without the financial involvement of
the Company) to deliver promptly to the Company sufficient funds to pay the
exercise price, or delivery by the Participant to the Company of a copy of
irrevocable and unconditional instructions to a creditworthy broker to deliver
promptly to the Company cash or a check sufficient to pay the exercise price
(each, a <B>&#147;Cashless Exercise&#148;</B>);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the extent explicitly provided in the applicable Stock
Option Agreement, by delivery of shares of Common Stock owned by the
Participant valued at Fair Market Value (as determined by the Committee or as
determined pursuant to the applicable Stock Option Agreement);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>payment of such other lawful consideration as the Committee may
determine.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Except as otherwise expressly set forth in a Stock Option Agreement, the Committee shall have no
obligation to accept consideration other than cash and in particular, unless the Committee so
expressly provides, in no event will the Company accept the delivery of shares of Common Stock that
have not been owned by the Participant at least six months prior to the exercise or permit a
Cashless Exercise if such Cashless Exercise would contravene any provision of applicable law. The
Fair Market Value of any shares of the Company&#146;s Common Stock or other non-cash consideration which
may be delivered upon exercise of an Option shall be determined in such manner as may be prescribed
by the Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.&nbsp;<U>Acceleration, Extension, Etc</U>. The Committee may, in its sole discretion, and in all
instances subject to any relevant tax and accounting considerations which may adversely impact or
impair the Company, (i)&nbsp;accelerate the date or dates on which all or any particular Options or
Awards granted under the Plan may be exercised, or (ii)&nbsp;extend the dates during which all or any
particular Options or Awards granted under the Plan may be exercised or vest.
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;<U>Determination of Fair Market Value</U>. If, at the time an Option is granted under the
Plan, the Company&#146;s Common Stock is publicly traded under the Exchange Act, &#147;Fair Market Value&#148;
shall mean (i)&nbsp;if the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market or The Nasdaq Small Cap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the last reported sales price for such
stock (on that date) or the closing bid, if no sales were reported as quoted on such exchange or
system as reported in <I>The Wall Street Journal </I>or such other source as the Committee deems reliable;
or (ii)&nbsp;the average of the closing bid and asked prices last quoted (on that date) by an
established quotation service for over-the-counter securities, if the Common Stock is not reported
on a national market system. In the absence of an established market for the Common Stock, the Fair
Market Value thereof shall be determined in good faith by the Committee after taking into
consideration all factors which it deems appropriate.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8. <U>Restricted Stock Awards.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Grants</U>. The Committee may grant Awards entitling recipients to acquire shares of
Common Stock, subject to (i)&nbsp;restrictions on transfer as set forth in the applicable Award
instrument and (ii)&nbsp;forfeiture unless and until all specified employment, vesting and/or
performance conditions, as set forth in the applicable Award instrument, are met (such shares of
Common Stock, <B>&#147;Restricted Stock,&#148; </B>and each such Award, a <B>&#147;Restricted Stock Award&#148;</B>).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Terms and Conditions</U>. The Committee shall determine the terms and conditions of
any such Restricted Stock Award. Any stock certificates issued in respect of a Restricted Stock
Award shall be registered in the name of the Participant and, unless otherwise determined by the
Committee, deposited by the Participant, together with a stock power endorsed in blank, with the
Company (or its designee). Restricted Stock Awards shall be issued for no cash consideration or
such minimum consideration as may be required by law. After the expiration of the applicable
restriction periods, the Company (or such designee) shall deliver the certificates no longer
subject to such restrictions to the Participant or, if the Participant has died, to the Designated
Beneficiary.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9. <U>Restricted Stock Unit Awards.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Grant</U>. The Committee may grant Awards entitling recipients to the right to
acquire, at some time in the future, shares of Restricted Stock, subject to such other conditions
as the Committee may prescribe in the applicable Award Agreement (each such Award, a <B>&#147;Restricted
Stock Unit Award&#148;</B>). Restricted Stock Unit Awards are subject to forfeiture unless and until all
specified Award conditions are met, as determined by the Committee and set forth in the particular
Agreements applicable to such Awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Terms and Conditions</U>. The Committee shall determine the terms and conditions of
any such Restricted Stock Unit Award. No stock certificates shall be issued in respect of a
Restricted Stock Unit Award at the time of grant. However, upon the lapse of all applicable
restrictions, the Company (or the Company&#146;s counsel as its designee) shall deliver stock
certificates to the Participant or, if the Participant has died, to the Designated Beneficiary.
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10. <U>Stock Appreciation Right Awards.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Grant</U>. The Committee may grant Awards entitling recipients to the right to
acquire, at some time in the future, upon exercise, one or more shares of Common Stock, in an
amount equal to the product of (i)&nbsp;the excess of (A)&nbsp;the Fair Market Value of a share of Common
Stock on the date of exercise over (B)&nbsp;the exercise price per share set forth in the applicable
Award Agreement and (ii)&nbsp;the number of shares of Common Stock with respect to which the right is
exercised, subject to such other conditions as the Committee may prescribe in the applicable Award
Agreement (each, a <B>&#147;Stock Appreciation Right Award&#148;</B>). Stock Appreciation Right Awards are subject
to forfeiture unless and until all specified Award conditions are met, as determined by the
Committee and set forth in the particular Agreements applicable to such Awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Terms</U>. The Committee shall determine the terms and conditions of any such Stock
Appreciation Right Award. A Stock Appreciation Right Award may be issued either in tandem with, or
by reference to, an Option (each such Award, a <B>&#147;Tandem SAR&#148;</B>) or not so issued (each such Award, a
<B>&#147;Free-Standing SAR&#148;</B>). It is the intention of the Committee that the exercise of Tandem SARs assist
the recipient of an Option with the ability to pay the exercise price of the Option. The exercise
price of a Tandem SAR shall be the exercise price per share of the related Option. The exercise
price of a Free-Standing SAR shall be determined by the Committee in its sole discretion; provided,
however, that exercise price shall not be less than 100% of the Fair Market Value of a share of
Common Stock on the date of grant; and provided, further, however, that, except as may be required
under <U>Section&nbsp;6c</U>, the Committee may not reduce, at any time following the grant of the
Free-Standing SAR, the exercise price per share of Common Stock underlying such Free-Standing SAR
to a level below the Fair Market Value per share of Common Stock on the date of grant. No stock
certificates shall be issued in respect of a Stock Appreciation Right Award, and such Award shall
be reflected merely in book entry form on the Company&#146;s books and records. However, upon exercise,
the Company (or the Company&#146;s counsel as its designee) shall deliver stock certificates to the
Participant or, if the Participant has died, to the Designated Beneficiary.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11. <U>Performance Share Awards</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Grants</U>. The Committee may grant Awards entitling recipients to acquire shares of
Common Stock upon the attainment of specified performance goals within a specified Performance
Period, which shares may or may not be shares of Restricted Stock, subject to such other conditions
as the Committee may prescribe in the applicable Award (each such share of Common Stock, a
<B>&#147;Performance Share,&#148; </B>and each such Award, a <B>&#147;Performance Share Award&#148;</B>). Performance Share Awards
are subject to forfeiture unless and until all specified Award conditions are met, as determined by
the Committee and set forth in the particular Agreements applicable to such Awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Terms and Conditions</U>. The Committee shall determine the terms and conditions of
any such Performance Share Award. Unless otherwise determined by the Committee, the payment value
of the Performance Share Awards shall be based upon the Fair Market Value of the Common Stock
underlying such Award on the date the Performance Shares are earned or on the date the Committee
determines that the Performance Shares have been earned. The
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Committee shall establish performance goals for each Performance Period for the purpose of
determining the extent to which Performance Shares awarded for such cycle are earned. As soon as
administratively practicable after the end of a performance cycle, the Committee shall determine
the number of Performance Shares which have been earned in relation to the established performance
goals. No stock certificates shall be issued in respect of a Performance Share Award at the time
of grant unless the Performance Shares are shares of Restricted Stock, in which case the rules of
Section&nbsp;10b with respect to the issuance of certificates shall apply. However, upon the lapse of
all applicable restrictions, the Company (or the Company&#146;s counsel as its designee) shall deliver
stock certificates to the Participant or, if the Participant has died, to the Designated
Beneficiary.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12. <U>Award Shares</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Grants</U>. The Committee may grant Awards entitling recipients to acquire shares of
Common Stock, subject to such terms, restrictions, conditions, performance criteria, vesting
requirements and payment needs, if any, as the Committee shall determine in the applicable Award
Agreement (each such Award, an <B>&#147;Award Share.&#148;</B>) Award Shares are subject to forfeiture unless and
until all specified Award conditions are met, as determined by the Committee and set forth in the
particular Agreements applicable to such Awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Terms and Conditions</U>. The Committee shall determine the terms and conditions of
any such Award Share. Award Shares shall be issued for no cash consideration or such minimum
consideration as may be required by law. When paid, the Company (or the Company&#146;s counsel as its
designee) shall deliver stock certificates for the Award Shares to the Participant or, if the
Participant has died, to the Designated Beneficiary.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">13. <U>Other Stock-Based Awards</U>. The Committee shall have the right to grant other Awards
based upon the Common Stock having such terms and conditions as the Committee may determine,
including, without limitation, the grant of securities convertible into Common Stock and the grant
of phantom stock awards or stock units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">14. <U>General Provisions Applicable to Awards.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Transferability of Awards</U>. Except as the Committee may otherwise determine or
provide in an Award, Awards shall not be sold, assigned, transferred, pledged or otherwise
encumbered by the person to whom they are granted, either voluntarily or by operation of law,
except by will or the laws of descent and distribution, and, during the life of the Participant,
shall be exercisable only by the Participant; provided, however, except as the Committee may
otherwise determine or provide in an Award, that Nonstatutory Options and Restricted Stock Awards
may be transferred pursuant to a qualified domestic relations order (as defined in ERISA) or to a
grantor-retained annuity trust or a similar estate-planning vehicle in which the trust is bound by
all provisions of the Stock Option Agreement and Restricted Stock Award, which are applicable to
the Participant. References to a Participant, to the extent relevant in the context, shall include
references to authorized transferees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Documentation</U>. Each Award under the Plan shall be evidenced by a written
instrument (each, an <B>&#147;Agreement&#148;</B>) in such form as the Committee shall determine or as
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">executed by an officer of the Company pursuant to authority delegated by the Committee or
Board. Each Award Agreement may contain terms and conditions in addition to those set forth in the
Plan, provided that such terms and conditions do not contravene the provisions of the Plan or
applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Committee Discretion</U>. The terms of each type of Award need not be identical, and
the Committee need not treat Participants uniformly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Additional Award Provisions</U>. The Committee may, in its sole discretion, include
additional provisions in any Stock Option Agreement, Restricted Stock Award or other Award granted
under the Plan, including without limitation restrictions on transfer, commitments to pay cash
bonuses, to make, arrange for or guaranty loans (subject to compliance with <U>Section&nbsp;14m</U>) or
to transfer other property to Participants upon exercise of Awards, or transfer other property to
Participants upon exercise of Awards, or such other provisions as shall be determined by the
Committee; provided that such additional provisions shall not be inconsistent with any other term
or condition of the Plan or applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>Termination of Status</U>. The Committee shall determine the effect on an Award of the
Disability, death, Retirement, authorized leave of absence or other change in the employment or
other status of a Participant and the extent to which, and the period during which, the
Participant, or the Participant&#146;s legal representative, conservator, guardian or Designated
Beneficiary, may exercise rights under the Award, subject to applicable law and the provisions of
the Code related to Incentive Stock Options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<U>Change in Control of the Company</U>.
</DIV>

<DIV style="margin-top: 6pt">
<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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise expressly provided in the applicable
Agreement, in connection with the occurrence of a Change in Control, the
Committee shall, in its sole discretion as to any outstanding Award (including
any portion thereof; on the same basis or on different bases, as the Committee
shall specify), take one or any combination of the following actions:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<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="7%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make appropriate provision for the
continuation of such Award by the Company or the assumption of such
Award by the surviving or acquiring entity and by substituting on an
equitable basis for the shares then subject to such Award either (x)
the consideration payable with respect to the outstanding shares of
Common Stock in connection with the Change in Control, (y)&nbsp;shares of
stock of the surviving or acquiring corporation or (z)&nbsp;such other
securities as the Committee deems appropriate, the fair market value of
which (as determined by the Committee in its sole discretion) shall not
materially differ from the fair market value of the shares of Common
Stock subject to such Award immediately preceding the Change in
Control;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>accelerate the date of exercise or vesting of
such Award;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<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="7%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>permit the exchange of such Award for the
right to participate in any stock option or other employee benefit plan
of any successor corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide for the repurchase of the Award for an
amount equal to the difference of (x)&nbsp;the consideration received per
share for the securities underlying the Award in the Change in Control
minus (y)&nbsp;the per share exercise price of such securities. Such amount
shall be payable in cash or the property payable in respect of such
securities in connection with the Change in Control. The value of any
such property shall be determined by the Committee in its discretion;
or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">E.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide for the termination of such Award
immediately prior to the consummation of the Change in Control;
provided that no such termination will be effective if the Change in
Control is not consummated.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.&nbsp;<U>Dissolution or Liquidation</U>. In the event of the proposed dissolution or
liquidation of the Company, the Committee shall notify each Participant as soon as practicable
prior to the effective date of such proposed transaction. The Committee in its sole discretion may
provide for a Participant to have the right to exercise his or her Award until fifteen (15)&nbsp;days
prior to such transaction as to all of the shares of Common Stock covered by the Option or Award,
including shares as to which the Option or Award would not otherwise be exercisable, which exercise
may in the sole discretion of the Committee, be made subject to and conditioned upon the
consummation of such proposed transaction. To the extent it has not been previously exercised, an
Award will terminate upon the consummation of such proposed action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.&nbsp;<U>Assumption of Awards Upon Certain Events</U>. In connection with a merger or
consolidation of an entity with the Company or the acquisition by the Company of property or stock
of an entity, the Committee may grant Awards under the Plan in substitution for stock and
stock-based awards issued by such entity or an affiliate thereof. The substitute Awards shall be
granted on such terms and conditions as the Committee considers appropriate in the circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;<U>Parachute Payments and Parachute Awards</U>. Notwithstanding the provisions of
<U>Section&nbsp;14f</U>, but subject to any contrary provisions in a Participant&#146;s employment agreement
with the Company or any Parent or Subsidiary, if, in connection with a Change in Control, a tax
under Section&nbsp;4999 of the Code would be imposed on the Participant (after taking into account the
exceptions set forth in Sections&nbsp;280G(b)(4) and 280G(b)(5) of the Code), then the number of Awards
which shall become exercisable, realizable or vested as provided in such Section shall be reduced
(or delayed), to the minimum extent necessary, so that no such tax would be imposed on the
Participant (the Awards not becoming so accelerated, realizable or vested, the <B>&#147;Parachute Awards&#148;</B>);
provided, however, that if the &#147;aggregate present value&#148; of the Parachute Awards would exceed the
tax that, but for this sentence, would be imposed on the Participant under Section&nbsp;4999 of the Code
in connection with the Change in Control, then the Awards shall become immediately exercisable,
realizable and vested without regard to the provisions of this sentence. For purposes of the
preceding sentence, the &#147;aggregate present value&#148; of an Award
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">shall be calculated on an after-tax basis (other than taxes imposed by Section&nbsp;4999 of the
Code) and shall be based on economic principles rather than the principles set forth under Section
280G of the Code and the regulations promulgated thereunder. All determinations required to be made
under this <U>Section&nbsp;14i</U> shall be made by the Company or such advisors as the Company shall
retain for such purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.&nbsp;<U>Amendment of Awards</U>. The Committee may amend, modify or terminate any outstanding
Award including, but not limited to, substituting therefor another Award of the same or a different
type, changing the date of exercise or realization, and converting an Incentive Stock Option to a
Nonstatutory Stock Option, provided that the Participant&#146;s consent to such action shall be required
unless the Committee determines that the action, taking into account any related action, would not
materially and adversely affect the Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.&nbsp;<U>Conditions on Delivery of Stock</U>. The Company will not be obligated to deliver any
shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously
delivered under the Plan until (i)&nbsp;all conditions of the Award have been met or removed to the
satisfaction of the Company, (ii)&nbsp;in the opinion of the Company&#146;s counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied, including any
applicable securities laws and any applicable stock exchange or stock market rules and regulations,
and (iii)&nbsp;the Participant has executed and delivered to the Company such representations or
agreements as the Company may consider appropriate to satisfy the requirements of any applicable
laws, rules or regulations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.&nbsp;<U>Acceleration</U>. The Committee may at any time provide that any Options shall become
immediately exercisable in full or in part, that any Restricted Stock Awards shall be free of some
or all restrictions, or that any other stock-based Awards may become exercisable in full or in part
or free of some or all restrictions or conditions, or otherwise realizable in full or in part, as
the case may be, despite the fact that the foregoing actions may (i)&nbsp;cause the application of
Sections&nbsp;280G and 4999 of the Code if a change in control of the Company occurs, or (ii)&nbsp;disqualify
all or part of the Option as an Incentive Stock Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m.&nbsp;<U>Sarbanes-Oxley Act Compliance</U>. Notwithstanding any provision of the Plan to the
contrary, the Committee, in accordance with any applicable rules or regulations promulgated by the
Securities and Exchange Commission (the &#147;SEC&#148;) and/or the United States Department of Labor, shall
(i)&nbsp;notify in a timely manner each Participant who is a Reporting Person of any transaction
occurring under the Plan that requires reporting by the Reporting Person on SEC Form&nbsp;4 or 5 as
applicable, each as revised pursuant to changes to Exchange Act Rule&nbsp;16a-3, 16a-6 or 16a-8, as
applicable, made by Sarbanes-Oxley Act of 2002, P.L. No.&nbsp;107-204 (the <B>&#147;Act&#148;</B>); (ii)&nbsp;otherwise comply
with all notice, disclosure and reporting requirements applicable to the Program pursuant to such
Act; and (iii)&nbsp;prohibit the making or guaranteeing of loans under Section&nbsp;8c of this Program to the
extent necessary to comply with Section&nbsp;402 of the Act.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">15. <U>Taxes/Code 409A</U>. The Company shall have the right to deduct from payments of any kind
otherwise due to the optionee or recipient of an Award any federal, state or local taxes of any
kind required by law to be withheld with respect to any shares issued upon exercise of Options or
other Awards under the Plan, the purchase of shares subject to the Award or the grant of Common
Stock free and clear of any restrictions thereon. Subject to the prior approval of the
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company, which may be withheld by the Company in its sole discretion, the optionee or recipient of
an Award may elect to satisfy such obligation, in whole or in part, (a)&nbsp;by causing the Company to
withhold shares of Common Stock otherwise issuable pursuant to the exercise of an Option or other
Award, the purchase of shares subject to an Award, or the grant of Common Stock free and clear of
any restrictions thereon or (b)&nbsp;by delivering to the Company shares of Common Stock already owned
by the optionee or Award recipient of an Award. The shares so delivered or withheld shall have a
Fair Market Value of the shares used to satisfy such withholding obligation as shall be determined
by the Company as of the date that the amount of tax to be withheld is to be determined. An
optionee or recipient of an Award who has made an election pursuant to this Section may only
satisfy his or her withholding obligation with shares of Common Stock which are not subject to any
repurchase, forfeiture, unfulfilled vesting or other similar requirements. Notwithstanding
anything herein to the contrary, to the extent a delay in payment or other modification to this
Plan or an Agreement is required as determined in the opinion of Company&#146;s tax advisors to prevent
the imposition of an additional tax to the recipient under Section&nbsp;409A of the Code, then such
payment shall not be made until the first date on which such payment is permitted or other
modifications shall be made to comply with Section&nbsp;409A and interpretive guidance issued
thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">16. <U>Miscellaneous.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>No Right To Employment or Other Status</U>. No person shall have any claim or right to
be granted an Award, and the grant of an Award shall not be construed as giving a Participant the
right to continued employment or any other relationship with the Company. The Company expressly
reserves the right at any time to dismiss or otherwise terminate its relationship with a
Participant free from any liability or claim under the Plan.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>No Rights As Stockholder</U>. Subject to the provisions of the applicable Award, no
Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any
shares of Common Stock to be distributed with respect to an Award until becoming the record holder
thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Effective Date and Term of Plan</U>. The Plan shall be submitted to the stockholders of
the Company for approval at the 2006 annual meeting of stockholders and, if approved by the
affirmative vote of a majority of the shares of Common Stock present in person or represented by
proxy at such meeting, shall become effective for Performance Periods beginning on or after January
1, 2007. No Awards shall be granted under the Plan after the completion of ten years from the date
on which the Plan was adopted by the Committee, but Awards previously granted may extend beyond
that date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Amendment of Plan</U>. The Committee may amend, suspend or terminate the Plan or any
portion thereof at any time; provided, however, that no amendment shall be made without stockholder
approval if such approval is necessary to comply with any applicable law, rules or regulations.
Notwithstanding any provision of this Plan to the contrary, if the Company has executed a
definitive acquisition or similar agreement pursuant to which a Change in Control will occur upon
the closing of the transaction(s) contemplated thereby, the Committee, in its sole discretion, may
treat the execution of such agreement itself as triggering a Change in Control within the meaning
of Section&nbsp;3ci, ii or iii, as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>No Trust Fund or ERISA Plan Created</U>. Neither the Plan nor any Award granted
thereunder shall create or be construed as creating a trust or separate fund of any kind or a
fiduciary relationship between the Company and a Participant, Designated Beneficiary or any other
person. To the extent that any Participant, Designated Beneficiary or any other person acquires
any Award under the Plan, his or her rights with respect thereto shall be not greater than the
rights of any unsecured general creditor of the Company. The Plan is not intended to constitute
any type of plan, fund or program providing retirement income or resulting in the deferral of
income for periods extending to the termination of employment of beyond, and ERISA shall not apply
to the Plan. No provision of this Plan shall be construed as subjecting any portion of the Plan to
any requirements of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<U>Governing Law</U>. The provisions of the Plan and all Awards made hereunder shall be
governed by and interpreted in accordance with the laws of the state of Delaware, without regard to
any applicable conflicts of law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.&nbsp;<U>Designation of Beneficiary</U>. A Participant may file with the Committee a written
designation of one or more persons as such Participant&#146;s Designated Beneficiary or Designated
Beneficiaries. Each beneficiary designation shall become effective only when filed in writing with
the Committee during the Participant&#146;s lifetime on a form prescribed by the Committee. The spouse
of a married Participant domiciled in a community property jurisdiction shall join in any
designation of a beneficiary other than such spouse. The filing with the Committee of a new
beneficiary designation shall cancel all previously filed beneficiary designations. If a
Participant fails to designate a beneficiary, or if all designated beneficiaries of a Participant
predecease the Participant, then each outstanding award shall be payable to the Participant&#146;s
estate.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Approvals</B><BR>
<B><I>2007 Equity Incentive Plan:</I></B>

</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="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Available Shares:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(1)&nbsp;Incentive Stock Options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">155,000</TD>
    <TD nowrap>*</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(2)&nbsp;Other Awards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,395,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,550,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>10% of total Available Shares on date of Adoption by Committee</TD>
</TR>

</TABLE>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Adopted by the Compensation Committee
of the Board of Directors on:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>August&nbsp;18, 2006</u>
</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">Approved by the Stockholders on:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><u>November&nbsp;17, 2006</u></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
