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<SEC-DOCUMENT>0000950134-07-009163.txt : 20070426
<SEC-HEADER>0000950134-07-009163.hdr.sgml : 20070426
<ACCEPTANCE-DATETIME>20070426170906
ACCESSION NUMBER:		0000950134-07-009163
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20070421
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070426
DATE AS OF CHANGE:		20070426

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26272
		FILM NUMBER:		07792168

	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>8-K
<SEQUENCE>1
<FILENAME>d45913e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</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 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>UNITED STATES 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: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT PURSUANT<BR>
TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of report (Date of earliest event reported): </B><U><B>April&nbsp;21, 2007</B></U></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"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Charter)</DIV>


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

<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(State or Other Jurisdiction of Incorporation)</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">0-26272
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">59-2705336</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">2050 Diplomat Drive, Dallas, Texas
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">75234</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">(972)&nbsp;241- 4080</DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(Registrant&#146;s Telephone Number, Including Area Code)</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (<I>see </I>General
Instruction A.2. below):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</DIV>

<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">Item&nbsp;5.02: Departure Of Directors Or Certain Officers; Election Of Directors; Appointment of Certain Officers; Compensatory Arrangements Of Certain Officers</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;9.01: Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="d45913exv10w1.htm">Employment Agreement - Chris Sharng</A></TD></TR>
<TR><TD colspan="9"><A HREF="d45913exv10w2.htm">Employment Agreement - Timothy S. Davidson</A></TD></TR>
<TR><TD colspan="9"><A HREF="d45913exv10w3.htm">Employment Agreement - Gary C. Wallace</A></TD></TR>
<TR><TD colspan="9"><A HREF="d45913exv10w4.htm">Employment Agreement - Curtis Broome</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 "Item&nbsp;5.02: Departure Of Directors Or Certain Officers; Election Of Directors; Appointment of Certain Officers; Compensatory Arrangements Of Certain Officers" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5.02: Departure Of Directors Or Certain Officers; Election Of Directors;
Appointment of Certain Officers; Compensatory Arrangements Of Certain Officers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Executive Officer Employment Agreements</I></U>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Following recommendation by the Compensation Committee and approval by the Board of Directors of
Natural Health Trends Corp. (the &#147;Company&#148;), on April&nbsp;23, 2007 the Company entered into employment
agreements (the &#147;Executive Employment Agreements&#148;) with each of the following executive officers of
the Company (each an &#147;Executive Officer&#148;):
</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="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Title</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<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">Chris T. Sharng
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President</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">Timothy S. Davidson
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer and Senior Vice President</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">Gary C. Wallace
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">General Counsel, Chief Ethics and Compliance Officer
and Secretary</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">Curtis Broome
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Worldwide President of NHT Global</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the Executive Employment Agreements, each Executive Officer remains an &#147;at will&#148; employee of
the Company, and either the Executive Officer or the Company can terminate the employment
relationship at any time upon four weeks notice to the other party. The applicable Executive
Employment Agreement for each of Messrs.&nbsp;Sharng, Davidson, Wallace and Broome provides for an
annual base salary of $250,000, $180,000, $190,000 and $250,000, respectively. The base salary for
each Executive Officer is subject to a minimum 3% annual increase each January 1st. Each Executive
Officer is also entitled to participate in the Company&#146;s annual incentive plan, equity incentive
plan and other standard U.S. employee benefit programs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the Executive Employment Agreements, each Executive Officer will be entitled to severance
benefits in the event that the Executive Officer&#146;s employment is terminated by the Company without
Cause (as defined in the Executive Employment Agreements) or in connection with a Change of Control
(as defined in the Executive Employment Agreements). Each Executive Officer is also entitled to
severance benefits in the event that the Executive Officer terminates his employment for Good
Reason (as defined in the Executive Employment Agreements). Each Executive Officer shall,
following an event triggering severance benefits, receive as severance the continuation of his base
salary, as well as the continuation of certain health and medical benefits, for a period of one
year for a termination without Cause or for Good Reason, and for a period of two years for a
termination in connection with a Change of Control .
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Executive Employment Agreements for Messrs.&nbsp;Sharng and Broome provide the following
provisions in addition to those set forth above:
</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"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has agreed to appoint Mr.&nbsp;Sharng to the Company&#146;s board of directors by
no later than October&nbsp;2007; provided, however, that if Mr.&nbsp;Sharng is, at any time, no
longer an employee of the Company he agrees to resign from the Company&#146;s board of
directors.</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"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mr.&nbsp;Broome is entitled to a housing and living allowance of $80,000 per annum
(subject to periodic adjustment) for the period of time during which he resides in Hong
Kong.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the Executive Employment Agreements, each of the Executive Officers has entered
into a Non-Competition and Proprietary Rights Assignment Agreement, pursuant to which each
Executive Officer has agreed (i)&nbsp;to keep certain Company information confidential, (ii)&nbsp;to assign
the
rights to certain work product to the Company and (iii)&nbsp;not to compete with the Company or solicit
Company customers or distributors during the term of his employment and for six months thereafter.
</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"><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: 12pt"><U><I>Restricted Stock Grants</I></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Following approval by the Compensation Committee, on April&nbsp;21, 2007 the Company granted shares of
restricted stock under the Company&#146;s 2007 Equity Incentive Plan to the Company&#146;s executive officers
and other key employees. These restricted stock grants vest quarterly on a pro rata basis over a
three-year period. The following numbers of shares of restricted stock were granted to the
Company&#146;s executive officers: Mr.&nbsp;Sharng, 111,900 shares; Mr.&nbsp;Davidson, 25,000 shares; Mr.
Wallace, 25,000 shares; Mr.&nbsp;John Cavanaugh, President of MarketVision, 99,400; and Mr.&nbsp;Broome,
84,400.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The foregoing description of the terms and conditions of the Executive Employment Agreements and
the Non-Competition and Proprietary Rights Assignment Agreements is qualified in its entirety by
reference to the various documents included as exhibits to this Current Report on Form 8-K.
</DIV>

<!-- link1 "Item&nbsp;9.01: Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01: Financial Statements and Exhibits.</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="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement (including form of Non-Competition and
Proprietary Rights Assignment Agreement) for Chris Sharng,
dated April&nbsp;23, 2007</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">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement (including form of Non-Competition and
Proprietary Rights Assignment Agreement) for Timothy S.
Davidson, dated April&nbsp;23, 2007</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">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement (including form of Non-Competition and
Proprietary Rights Assignment Agreement) for Gary C.
Wallace, dated April&nbsp;23, 2007</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">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement (including form of Non-Competition and
Proprietary Rights Assignment Agreement) for Curtis Broome,
dated April&nbsp;23, 2007</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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

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

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



<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="002"></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 Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</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"><B>NATURAL HEALTH TRENDS CORP.</B><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 Sharng
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chris Sharng&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left"><I>President</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: April&nbsp;26, 2007
</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"><A HREF="#toc">Table of Contents</A></H5><P>

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



<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</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="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement (including form of Non-Competition and
Proprietary Rights Assignment Agreement) for Chris Sharng,
dated April&nbsp;23, 2007</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">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement (including form of Non-Competition and
Proprietary Rights Assignment Agreement) for Timothy S.
Davidson, dated April&nbsp;23, 2007</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">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement (including form of Non-Competition and
Proprietary Rights Assignment Agreement) for Gary C.
Wallace, dated April&nbsp;23, 2007</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">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Agreement (including form of Non-Competition and
Proprietary Rights Assignment Agreement) for Curtis Broome,
dated April&nbsp;23, 2007</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d45913exv10w1.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT - CHRIS SHARNG
<TEXT>
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<TITLE>exv10w1</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B><I>Exhibit&nbsp;10.1</I></B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">April&nbsp;23, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Chris Sharng<BR>
1352 Saddlebrook Court<BR>
Bartonville, TX 76226

</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Chris:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I am pleased to set forth the terms and conditions of your employment with Natural Health
Trends Corp. (the &#147;Company&#148;), effective as of April&nbsp;23, 2007 (the &#147;Commencement Date&#148;). We look
forward to your significant contributions toward the achievement of our goals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>The Position</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective as of February&nbsp;21, 2007, you were appointed as the Company&#146;s President, with
authority incident to such title in accordance with the Company&#146;s Bylaws. You will report to the
Company&#146;s Board of Directors. You will be appointed to the Board of Directors by no later than
October&nbsp;2007. However, in the event that you are no longer employed by the Company, you agree to
resign from the Board as of your last day of employment. Accordingly, you agree to sign a
resignation letter, a form of which is attached hereto as Exhibit&nbsp;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Compensation Package</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your base salary is $250,000 per year, subject to a minimum of 3% annual increase per year
every January 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> as approved by the Board, and you will also be eligible to receive
annual incentive compensation, in accordance with the Company&#146;s Annual Incentive Plan. The
incentive bonus will be paid in cash immediately following the completion of the Company&#146;s year end
audit of its financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Benefits Package</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your compensation will also include participation in our standard benefits program available
to our U.S. based employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Equity Participation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be eligible for a &#147;staking grant&#148; of restricted shares no later than April&nbsp;23, 2007
in accordance with the Company&#146;s 2005 Stock Option Plan, as amended. The restricted shares will
vest over a three year period on a pro rata quarterly basis following the Commencement Date (unless
your employment with the Company is sooner terminated). You will also be entitled to an annual
equity grant in accordance with the Company Annual Incentive Plan or Annual Equity Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Vacation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to four (4)&nbsp;weeks vacation per annum, in accordance with the Company&#146;s
vacation policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Severance</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to Severance Payments (as defined below) if any of the following events
occur: (i)&nbsp;the Company terminates you without Cause (as defined below) during the period
commencing on the date that is thirty (30)&nbsp;days prior to a Change of Control (as defined below)
through and including the date that is 18&nbsp;months following such Change of Control (a &#147;Change of
Control Termination&#148;); (ii)&nbsp;you provide the Company with written notice of your resignation for
Good Reason (as defined below) and the Company has not cured such event within 30&nbsp;days following
its receipt of such written notice; or (iii)&nbsp;the Company terminates you without Cause (other than
in connection with a Change of Control as contemplated in (i)&nbsp;above).
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Chris Sharng<BR>
April&nbsp;23, 2007<BR>
Page 2 of 3

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, in order to receive any Severance Payments you must execute and deliver to the
Company a full general release of all claims against the Company and its affiliates in form and
substance satisfactory to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used herein, the term:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&#147;Severance Payments&#148; shall mean the continuation of the payment of your base salary then
in effect (plus health and medical insurance coverage as previously provided to you or, if required
in lieu thereof, COBRA payments providing such coverage) for a period of one (1)&nbsp;years following
the termination date, or until such earlier date on which you become engaged in any Competitive
Activity (as defined in the Non-Competition Agreement) or otherwise breach the terms and conditions
of the Non-Competition Agreement (each, a &#147;Severance Payment Termination Event); provided however,
that with respect to a Change of Control Termination, the Employee shall be entitled to receive
Severance Payments equal to your base salary for two (2)&nbsp;years, due and payable to you in a lump
sum 30&nbsp;days after the termination date;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Cause&#148; shall include, without limitation, the following: (i)&nbsp;failure or neglect, by you
to perform the duties of your position; (ii)&nbsp;your failure to obey orders given by the Company or
your supervisors; (iii)&nbsp;your misconduct in connection with the performance of any of your duties,
including, without limitation, misappropriation of funds or property of the Company, securing or
attempting to secure personally any profit in connection with any transaction entered into on
behalf of the Company, misrepresentation to the Company, or any violation of law or regulations on
Company premises or to which the Company is subject; (iv)&nbsp;your commission of an act involving moral
turpitude, dishonesty, theft or unethical business conduct, or conduct which impairs or injures the
reputation of, or harms, the Company; (v)&nbsp;your disloyalty, including without limitation, aiding a
competitor; (vi)&nbsp;your failure to devote your full time and best efforts to the
Company&#146;s business and affairs; (vii)&nbsp;your failure to work exclusively for
the Company; (viii)&nbsp;your failure to fully cooperate in any investigation by the Company; (ix)&nbsp;your
material breach of this Agreement or Company rules; (x)&nbsp;any other act of misconduct by you that
could reasonably be expected to have a material adverse effect on the Company, its business,
prospects or reputation; (xi)&nbsp;your abuse of alcohol or other drugs or controlled substances; or
(xii)&nbsp;your resignation (other than for Good Reason).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&#147;Change of Control&#148; shall mean: (i)&nbsp;when any &#147;person&#148; as defined in Section&nbsp;3(a)(9) of the
Securities and Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), and as used in Section 13(d)
and 14(d) thereof, including a &#147;group&#148; as defined in Section 13(d) of the Exchange Act, but
excluding the Company or any subsidiary or any affiliate of the Company or any employee benefit
plan sponsored or maintained by the Company or any subsidiary of the Company (including any trustee
of such plan acting as trustee), becomes the &#147;beneficial owner&#148; (as defined in Rule&nbsp;13d-3 under the
Exchange Act) of securities of the Company representing more than 50% of the combined voting power
of the Company&#146;s then outstanding securities; or (ii)&nbsp;when, during any period of twenty-four (24)
consecutive months, the individuals who, at the beginning of such period, constitute the Board of
Directors (the &#147;Incumbent Directors&#148;) cease for any reason other than death to constitute at least
a majority thereof, provided, however, that a director who was not a director at the beginning of
such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an
Incumbent Director) if such director was elected by, or on the recommendation of or with the
approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either
actually (because they were directors at the beginning of such 24-month period) or through the
operation of this provision; or (iii)&nbsp;the occurrence of a transaction requiring stockholder
approval under applicable state law for the acquisition of the Company by an entity other than the
Company or a subsidiary or an affiliated company of the Company through the purchase of assets, or
by merger, or otherwise; provided however, that none of the foregoing shall constitute a Change of
Control if such transaction, event or occurrence shall be approved by, or consented to, by the
Employee;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &#147;Good Reason&#148; shall mean the occurrence of any of the following without your written
consent or approval: (A)&nbsp;the assignment to you of duties inconsistent with this Agreement or a
material diminution in your title, authority or base compensation; (B)&nbsp;any change in reporting
responsibility so that you report to any person other than the Board of Directors thereof; (C)&nbsp;any
material breach of the Agreement by this
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Chris Sharng<BR>
April&nbsp;23, 2007<BR>
Page 3 of 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company or (D)&nbsp;the Company requires you to relocate more than 50 miles outside of the Dallas-Fort
Worth Metroplex metropolitan area.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Non-Competition and Confidentiality Agreement</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees to provide you with confidential and proprietary information so that you
may perform your duties under this Agreement. You agree to enter into a Non-Competition and
Proprietary Rights Assignment Agreement, a form of which is attached hereto as Exhibit&nbsp;B (the
&#147;Non-Competition Agreement&#148;), pursuant to which you will agree that you will keep in confidence the
Company&#146;s confidential information, you will not compete with the Company, and you will not solicit
employees or independent distributors of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Governing Law</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be deemed a contract made under the laws of Texas and for all purposes
shall be construed in accordance with the laws of said State applicable to contracts made and to be
performed within said State.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Arbitration</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All disputes between Parties in connection with arising out of the existence, validity,
construction, performance and termination of this Agreement shall be finally settled by arbitration
under the Federal Arbitration Act. The arbitration shall be held in Dallas, Texas in accordance
with the Rules of the American Arbitration Association for employment disputes by one or more
arbitrators appointed in accordance with the said Rules and the award of such arbitrators shall be
final and binding upon the Parties. The non-prevailing party shall pay for all reasonable costs and
expenses incurred in connection with such dispute, including filing and arbitrator fees as well as
the reasonable costs and expenses of opposing legal counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Employment at Will</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You understand that your employment will be at will, and either you or the Company may
terminate the relationship at any time upon four (4)&nbsp;weeks notice; provided however, that the at
will relationship will not in any way affect the Company&#146;s obligation to pay severance to you as
set forth above under &#147;Severance&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We all look forward to working with you and know that you will do an outstanding job in this
critical role. All of the benefits described in this letter are conditioned upon your acceptance of
this offer. Please indicate your acceptance and agreement with the terms of this letter by signing
below in the space provided and by signing the Non-Competition Agreement.
</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">Sincerely,<BR>
<BR>
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/ Randall A. Mason
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Randall A. Mason&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chairman of the Board&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Acknowledged and Agreed:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>/s/ Chris Sharng&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>



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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B><U><FONT style="font-variant: SMALL-CAPS">Exhibit A</FONT></U></B>
</DIV>


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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">April&nbsp;23, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To the Board of Directors<BR>
Natural Health Trends Corp

</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;I understand that my appointment to the Board of Directors (the &#147;Board&#148;) of Natural Health
Trends Corp. (the &#147;Company&#148;) is in connection with my appointment as the Company&#146;s President and
Chief Executive Officer. Accordingly, in the event that I no longer serve in that capacity, I
respectfully request that you accept my resignation as a member of the Board effective as of my
last date of employment as the Company&#146;s President and Chief Executive Officer.
</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>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">/s/ Chris Sharng
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chris Sharng&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B><U><FONT style="font-variant: SMALL-CAPS">Exhibit&nbsp;B</FONT></U></B>
</DIV>


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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><U>NON-COMPETITION AND PROPRIETARY RIGHTS</U><BR>
<U>ASSIGNMENT AGREEMENT</U></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Employee&#146;s Name: <B>Chris Sharng </B>(&#147;Employee&#148;)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: April&nbsp;23, 2007
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">In consideration of Employee&#146;s continued employment by or other similar relationship with
Natural Health Trends Corp. (the &#147;Company&#148;) and in consideration for and as a condition to
the transactions contemplated by that certain Employment Agreement dated as of the date
hereof by and between the Company and Employee (the &#147;Employment Agreement&#148;), including
without limitation the Company&#146;s promise to provide Employee with confidential information,
Employee hereby agrees with the Company as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U><B>Confidential Information</B></U>. During the term of this Agreement and in the course of
Employee&#146;s performance of services for the Company, the Company agrees to provide Employee with
confidential or competitively sensitive information of the Company, which may include information
of a third party with which the Company has a business relationship, relating to the Company&#146;s or
such third party&#146;s current or prospective business, research and development activities, products,
technology, strategy, organization and/or finances (collectively, &#147;Confidential Information&#148;).
Such Confidential Information, which may be disclosed orally or in writing, shall include, without
limitation, Technology (as defined in Section&nbsp;2(a)), Work Product (as defined in Section&nbsp;2(a)),
plans, strategies, negotiations, customer or prospect identities, market analyses, projections,
forecasts, cost and performance data, sales data, financial statements, price lists, pre-release
information regarding the Company&#146;s products, personnel lists and data, and all documents and other
materials (including any notes, drawings, reports, manuals, notebooks, summaries, extracts or
analyses), whether in written or electronic form, that disclose or embody such Confidential
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidential Information shall not include information that is now, or hereafter becomes,
through no act or failure to act on Employee&#146;s part, generally known to the public; information
that was rightfully in Employee&#146;s possession without confidentiality restriction prior to the
Company&#146;s disclosure to Employee; information that was rightfully obtained by Employee from a third
party who has the right, without obligation to the Company, to transfer or disclose such
information; or information which Employee is required to disclose pursuant to judicial order,
provided that in the latter case Employee shall promptly notify the Company and take reasonable
steps to assist the Company in protecting the Company&#146;s rights prior to disclosure. At all times,
both during Employee&#146;s relationship with the Company and after the termination thereof, Employee
will keep all Confidential Information in strict confidence; will not use Confidential Information
except for the purpose of providing services to the Company; and will not divulge, publish,
disclose or communicate Confidential Information, in whole or in part, to any third party.
Employee further agrees that Employee will not allow any unauthorized person access to Confidential
Information, either before or after the termination of this Agreement, and will take all action
reasonably necessary and satisfactory to the Company to protect the confidentiality of Confidential
Information. Employee agrees not to reproduce or copy by any means Confidential Information,
except as reasonably required to accomplish the purposes of the Employment Agreement, and further
agrees not to remove any
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">proprietary rights legend from such Confidential Information or copies thereof made in
accordance with this Agreement. Employee will not erase, discard or destroy any tangible or
electronic materials that disclose or embody Confidential Information without specific instructions
from the Company to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of Employee&#146;s services for any reason, or upon demand by the Company at any
time, the Company&#146;s agreement to provide, and Employee&#146;s right to use, Confidential Information
shall immediately terminate, and Employee shall return promptly to the Company, or destroy, at the
Company&#146;s option, all tangible and electronic materials that disclose or embody Confidential
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U><B>Assignment of Work Product</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For purposes of this Agreement: &#147;Technology&#148; shall mean all ideas, concepts, inventions,
discoveries, developments, creations, methods, techniques, processes, machines, products, devices,
compositions of matter, improvements, modifications, designs, systems, specifications, schematics,
formulas, mask works, works of authorship, software, algorithms, data and know-how, whether or not
patentable or copyrightable, and all related notes, drawings, reports, manuals, notebooks,
summaries, memoranda and other documentation; &#147;Intellectual Property Rights&#148; shall mean all
worldwide intellectual property rights including, without limitation, all rights relating to the
protection of inventions, including patents, patent applications and certificates of invention; all
rights associated with works of authorship, including copyrights and moral rights; all rights
relating to the protection of trade secrets and confidential information; all rights related to the
protection of trademarks, logos and service marks; any rights analogous to those set forth herein,
and all other proprietary rights related to intangible property; and &#147;Work Product&#148; shall mean any
and all Technology made, conceived, designed, created, discovered, invented or reduced to practice
by Employee during the term of this Agreement that (i)&nbsp;results from Employee&#146;s performance of
services for the Company, (ii)&nbsp;is related to the business of the Company or (iii)&nbsp;is based upon the
use of Confidential Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Employee agrees to promptly disclose to the Company in writing all Work Product upon the
development, conception or creation thereof by Employee, as well as, at any time, upon the request
of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Employee agrees that all Work Product shall be the sole and exclusive property of the
Company, and does hereby irrevocably and unconditionally transfer and assign to the Company, its
successors and assigns, all right, title and interest Employee may have or acquire in or to any
Work Product, including all Intellectual Property Rights therein. Employee further agrees that any
and all works of authorship created, authored or developed by Employee hereunder shall be deemed to
be &#147;works made for hire&#148; within the meaning of the United States copyright law and, as such, all
rights therein including copyright shall belong solely and exclusively to the Company from the time
of their creation. To the extent any such work of authorship may not be deemed to be a work made
for hire, Employee agrees to, and does hereby, irrevocably and unconditionally transfer and assign
to the Company all right, title, and interest including copyright in and to such work.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon request by the Company, Employee agrees to execute and deliver all such documents,
certificates, assignments and other writings, and take such other actions, as may be necessary or
desirable to vest in the Company ownership in all Work Product as provided in this
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;2, including, but not limited to, the execution and delivery of all applications for
securing all United States and foreign patents, copyrights and other Intellectual Property Rights
relating to Work Product. The Company shall reimburse Employee for any reasonable expenses
incurred by Employee at the Company&#146;s request to secure title or legal protection on the Company&#146;s
behalf for any such Work Product. In the event that the Company is unable to secure Employee&#146;s
signature to any document, or if Employee otherwise fails to take any action deemed necessary by
the Company to protect or maintain the Company&#146;s ownership of Work Product and Intellectual
Property Rights therein, then the Company may, and Employee hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as Employee&#146;s agent and
attorney-in-fact to act on and in Employee&#146;s behalf and stead to, execute and file any such
applications and perform all other lawfully permitted acts to perfect Employee&#146;s assignment and
transfer of ownership rights to the Company with the same legal force and effect as if executed,
filed and performed by Employee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;For purposes of this Section&nbsp;2(e), &#147;Background Technology&#148; shall mean Technology owned by
or licensed to Employee as of the date that Employee was first employed by the Company or developed
or otherwise obtained by Employee following the that Employee was first employed by the Company
independently of the performance of services hereunder by Employee. The Company acquires no rights
in the Background Technology, except as specifically provided in this Agreement and, as between the
parties, Employee retains all rights therein. Employee hereby grants to Company a royalty-free,
worldwide, non-exclusive, perpetual, sublicensable and irrevocable right and license to use, for
all purposes in Company&#146;s business, Background Technology that has been disclosed by Employee to
Company or that is embodied within or related to the use, operation or improvement of Work Product
created by Employee in connection with Employee&#146;s performance of services for the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U><B>Representation</B></U>. Employee hereby represents to the Company that the Work Product
Employee creates under the Employment Agreement will be original, and that Employee&#146;s performance
of services under the Employment Agreement and the Company&#146;s use of Employee&#146;s Work Product will
not breach any agreement Employee has with any third party or the intellectual property rights or
other rights of any third party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U><B>Return of Materials</B></U>. All documents, records, apparatus, equipment and other
physical property, whether or not pertaining to Confidential Information, which are furnished to
Employee by the Company or are produced by Employee in connection with Employee&#146;s services will be
and remain the sole property of the Company. Employee will return to the Company all such
materials and property as and when requested by the Company. In any event, Employee will return
all such materials and property immediately upon termination of Employee&#146;s services for any reason.
Employee will not retain any such material or property or any copies thereof upon such
termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U><B>Competitive Activities</B></U>. From the date hereof until the six (6)&nbsp;month anniversary
of the later of the date on which Employee no longer is employed by the Company, serves as a
consultant to the Company or serves as a member of the Board of Directors of the Company (the
&#147;Non-Compete Restricted Period&#148;), Employee will not, directly or indirectly, whether as owner,
partner, shareholder, director, agent, employee, co-venturer, consultant or otherwise, without the
written consent of the Company, engage, participate, invest in, or provide services to, any
multi-level marketing business that indirectly or directly competes with the Company in recruiting
for independent distributors (collectively, the &#147;Competitive Activities&#148;). The prohibition set
forth in this Section&nbsp;5 shall not restrict Employee from (a)&nbsp;owning or holding up to two percent
(2%) of the shares of stock of any company
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">registered or sold on any recognized stock exchange or sold in the over-the-counter market or
(b)&nbsp;providing services that do not involve management, accounting, or finance or consulting with
the management, accounting or finance personnel. Employee understands and agrees that the
restrictions set forth in this Section&nbsp;5 are intended to protect the Company&#146;s reasonable
competitive business interests, its interest in its Confidential Information and established and
prospective customer relationships and goodwill, and agree that such restrictions are reasonable
and appropriate for this purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U><B>Nonsolicitation of Customers and Distributors</B></U>. During the Non-Compete Restricted
Period plus six (6)&nbsp;months (the &#147;Nonsolicitation Period&#148;), Employee will not, in any capacity,
directly or indirectly:
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>solicit business or patronage of any customer or prospective
customer (collectively, &#147;Customer&#148;), or distributor or prospective distributor
(collectively, &#147;Distributor&#148;) of the Company in connection with any Competitive
Activity;</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="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>divert, entice, or otherwise take away from the Company the
business or patronage of any Customer or Distributor, or attempt to do so;</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="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>solicit, induce or assist any Customer, Distributor or supplier
to terminate or reduce its relationship 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>assist with the provision of any services to a Customer or
Distributor (except in Employee&#146;s capacity as an employee of 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>refer a Customer, Distributor or supplier to another person
engaged (or to be engaged) in Competitive Activities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U><B>Nonsolicitation of Employees</B></U>. During the Nonsolicitation Period, Employee will
not:
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>hire or employ, directly or indirectly through any enterprise
with which Employee is associated, any current employee of the Company or any
individual who had been employed by the Company within one (1)&nbsp;year preceding
Employee&#146;s termination (other than persons whose employment by the Company was
terminated by or at the request of 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>recruit, solicit or induce (or in any way assist another person
or enterprise in recruiting, soliciting or inducing) any employee or director of
the Company to terminate his or her employment or other relationship with the
Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U><B>Acknowledgments</B></U>. Employee acknowledges and agrees that the restrictions set forth
in this Agreement are intended to protect the Company&#146;s interest in Confidential Information and
its commercial relationships and goodwill (with its Customers, Distributors, vendors, directors and
employees), and are reasonable and appropriate for these purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U><B>Disclosure of Agreement</B></U>. Employee will disclose the existence and terms of this
Agreement to any prospective employer, partner, co-venturer, investor or lender prior to entering
into an employment, partnership or other business relationship with such person or entity.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U><B>Third-Party Agreements and Rights</B></U>. Employee hereby confirms that Employee is not
bound by the terms of any agreement with any previous employer or other party which restricts in
any way Employee&#146;s use or disclosure of information or Employee&#146;s engagement in any business,
except as may be disclosed in <U>Schedule&nbsp;A</U> attached to this Agreement prior to its acceptance
by the Company. Employee has delivered to the Company true and complete copies of any agreements
listed on <U>Schedule&nbsp;A</U>. Employee represents to the Company that Employee&#146;s execution of this
Agreement, Employee&#146;s employment with the Company and the performance of Employee&#146;s proposed duties
for the Company will not violate any obligations Employee may have to any such previous employer or
other party. In Employee&#146;s work for the Company, Employee will not disclose or make use of any
information in violation of any agreements with or rights of any such previous employer or other
party, and Employee will not bring to the premises of the Company any copies or other tangible
embodiments of non-public information belonging to or obtained from any such previous employment or
other party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U><B>Injunction</B></U>. Employee agrees that it would be difficult to measure any damages
caused to the Company which might result from any breach by Employee of the promises set forth in
this Agreement, and that in any event money damages would be an inadequate remedy for any such
breach. Accordingly, Employee agrees that if Employee breaches, or proposes to breach, any portion
of this Agreement, the Company shall be entitled, in addition to all other remedies that it may
have, to an injunction or other appropriate equitable relief to restrain any such breach without
showing or proving any actual damage to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U><B>Binding Effect</B></U>. This Agreement will be binding upon Employee and Employee&#146;s
heirs, executors, administrators and legal representatives and will inure to the benefit of the
Company, any subsidiary of the Company, and its and their respective successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U><B>Enforceability</B></U>. If any portion or provision of this Agreement is to any extent
declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this
Agreement, or the application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, will not be affected thereby, and each portion
and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by
law. In the event that any provision of this Agreement is determined by any court of competent
jurisdiction to be unenforceable by reason of excessive scope as to geographic, temporal or
functional coverage, such provision will be deemed to extend only over the maximum geographic,
temporal and functional scope as to which it may be enforceable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U><B>Entire Agreement</B></U>. This Agreement constitutes the entire agreement between the
Company and Employee with respect to the subject matter hereof, and supersedes all prior
representations and agreements with respect to such subject matter. This Agreement may not be
amended, modified or waived except by a written instrument duly executed by the person against whom
enforcement of such amendment, modification or waiver is sought. The failure of any party to
require the performance of any term or obligation of this Agreement, or the waiver by any party of
any breach of this Agreement, in any particular case will not prevent any subsequent enforcement of
such term or obligation or to be deemed a waiver of any separate or subsequent breach.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U><B>Notices</B></U>. Any notices, requests, demands and other communications provided for by
this Agreement will be sufficient if in writing and delivered in person or sent by registered or
certified mail, postage prepaid, to Employee at the last address which Employee has filed in
writing with the
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company or, in the case of any notice to the Company, at its main offices, to the attention of
the undersigned officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U><B>Governing Law</B></U>. The validity, interpretation, performance and enforcement of this
agreement shall be governed by the laws of the State of Texas, without applying the conflict of
laws provisions thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;<U><B>Arbitration</B></U>. All disputes between Parties in connection with or arising out of
the existence, validity, construction, performance and termination of this Agreement shall be
finally settled by arbitration. The arbitration shall be held in the Dallas, Texas in accordance
with the Rules of the American Arbitration Association by one or more arbitrators appointed in
accordance with the said Rules and the award of such arbitrators shall be final and binding upon
the Parties. The non-prevailing party shall pay for all reasonable costs and expenses incurred in
connection with such dispute, including filing and arbitrator fees as well as the reasonable costs
and expenses of opposing legal counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;<U><B>Escrow</B></U><B>. </B>If Employee is terminated for cause and, within 30&nbsp;days of such
termination, initiates an arbitration proceeding disputing that the termination was for cause, then
the Company will either (a)&nbsp;on each regular pay day of the Company occurring following the
expiration of 10&nbsp;days after such arbitration is commenced, pay into an escrow account an amount
equal to the Severance Payment (net of payroll taxes) that would be due to Employee under the
Employment Agreement if the termination was without cause until six months of such Severance
Payments have been made, or (b)&nbsp;release Employee from any remaining obligations under Section&nbsp;5, 6
or 7 of this Agreement. If the Company fails to make any such escrow payment, then the Company
will be deemed to have released Employee from any further obligation under Section&nbsp;5, 6 or 7 of
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19<B>.&nbsp;</B><U><B>Prior Material Breach</B></U><B>. </B>Notwithstanding anything to the contrary in this
Agreement, the failure of the Company to make any payment to Employee that is required under the
Employment Agreement or this Agreement shall, if such failure is not excused (as provided below)
and continues for five business days after written notice to the Company of such failure, excuse
Employee from complying with Sections&nbsp;5, 6 and 7 of this Agreement. The failure of the Company to
pay Employee under the Employment Agreement shall be excused by Employee&#146;s prior material breach of
this Agreement or the Employment Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EMPLOYEE UNDERSTANDS THAT THIS AGREEMENT AFFECTS IMPORTANT RIGHTS. EMPLOYEE HAS READ IT CAREFULLY
AND IS SATISFIED THAT EMPLOYEE UNDERSTANDS IT COMPLETELY.
</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="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><B>NATURAL HEALTH TRENDS CORP.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>EMPLOYEE</B></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">/s/ Randall A. Mason
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Chris Sharng<BR>
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></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">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Randall A. Mason
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Chris Sharng</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">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Dated:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


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

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><U>Schedule&nbsp;A</U></B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;None&#093;</B>
</DIV>



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


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>d45913exv10w2.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT - TIMOTHY S. DAVIDSON
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B><I>Exhibit&nbsp;10.2</I></B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">April&nbsp;23, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Timothy S. Davidson<BR>
15103 Springwood Drive<BR>
Frisco, TX 75035

</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Scott:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I am pleased to set forth the terms and conditions of your employment with Natural Health
Trends Corp. (the &#147;Company&#148;). We look forward to your significant contributions toward the
achievement of our goals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>The Position</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective as of February&nbsp;21, 2007, you were appointed as the Company&#146;s Senior Vice President
and Chief Financial Officer. This letter sets out the terms of your employment in that capacity
commencing as of April&nbsp;23, 2007 (the &#147;Commencement Date&#148;). You will report to the Company&#146;s
President and have such authority and responsibilities as are incident to your position in
accordance with the Company&#146;s Bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Compensation Package</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your base salary is $180,000 per year, subject to a minimum of 3% annual increase per year
every January 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> as approved by the Board, and you will also be eligible to receive
annual incentive compensation, in accordance with the Company&#146;s Annual Incentive Plan. The
incentive bonus will be paid in cash immediately following the completion of the Company&#146;s year end
audit of its financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Benefits Package</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your compensation will also include participation in our standard benefits program available
to our U.S. based employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Equity Participation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to an annual equity grant in accordance with the Company Annual Incentive
Plan or Annual Equity Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Vacation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to four (4)&nbsp;weeks vacation per annum, in accordance with the Company&#146;s
vacation policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Severance</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to Severance Payments (as defined below) if any of the following events
occur: (i)&nbsp;the Company terminates you without Cause (as defined below) during the period
commencing on the date that is thirty (30)&nbsp;days prior to a Change of Control (as defined below)
through and including the date that is 18&nbsp;months following such Change of Control (a &#147;Change of
Control Termination&#148;); (ii)&nbsp;you provide the Company with written notice of your resignation for
Good Reason (as defined below) and the Company has not cured such event within 30&nbsp;days following
its receipt of such written notice; or (iii)&nbsp;the Company terminates you without Cause (other than
in connection with a Change of Control as contemplated in (i)&nbsp;above).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, in order to receive any Severance Payments you must execute and deliver to the
Company a full general release of all claims against the Company and its affiliates in form and
substance satisfactory to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used herein, the term:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &#147;Severance Payments&#148; shall mean the continuation of the payment of your base salary then
in effect (plus health and medical insurance coverage as previously provided to you or, if required
in lieu
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Timothy S. Davidson<BR>
April&nbsp;23, 2007<BR>
Page 2 of 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">thereof, COBRA payments providing such coverage) for a period of twelve (12)&nbsp;months following
the termination date, or until such earlier date on which you become engaged in any Competitive
Activity (as defined in the Non-Competition Agreement) or otherwise breach the terms and conditions
of the Non-Competition Agreement (each, a &#147;Severance Payment Termination Event); provided however,
that with respect to a Change of Control Termination, the Employee shall be entitled to receive
Severance Payments equal to your base salary for two (2)&nbsp;years, due and payable to you in a lump
sum 30&nbsp;days after the termination date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Cause&#148; shall include, without limitation, the following: (i)&nbsp;failure or neglect, by you
to perform the duties of your position; (ii)&nbsp;your failure to obey orders given by the Company or
your supervisors; (iii)&nbsp;your misconduct in connection with the performance of any of your duties,
including, without limitation, misappropriation of funds or property of the Company, securing or
attempting to secure personally any profit in connection with any transaction entered into on
behalf of the Company, misrepresentation to the Company, or any violation of law or regulations on
Company premises or to which the Company is subject; (iv)&nbsp;your commission of an act involving moral
turpitude, dishonesty, theft or unethical business conduct, or conduct which impairs or injures the
reputation of, or harms, the Company; (v)&nbsp;your disloyalty, including without limitation, aiding a
competitor; (vi)&nbsp;your failure to devote your full time and best efforts to the
Company <SUP style="font-size: 85%; vertical-align: text-top">&#145; </SUP>s business and affairs; (vii)&nbsp;your failure to work exclusively for
the Company; (viii)&nbsp;your failure to fully cooperate in any investigation by the Company; (ix)&nbsp;your
material breach of this Agreement or Company rules; (x)&nbsp;any other act of misconduct by you that
could reasonably be expected to have a material adverse effect on the Company, its business,
prospects or reputation; (xi)&nbsp;your abuse of alcohol or other drugs or controlled substances; or
(xii)&nbsp;your resignation (other than for Good Reason).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&#147;Change of Control&#148; shall mean: (i)&nbsp;when any &#147;person&#148; as defined in Section&nbsp;3(a)(9) of the
Securities and Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), and as used in Section 13(d)
and 14(d) thereof, including a &#147;group&#148; as defined in Section 13(d) of the Exchange Act, but
excluding the Company or any subsidiary or any affiliate of the Company or any employee benefit
plan sponsored or maintained by the Company or any subsidiary of the Company (including any trustee
of such plan acting as trustee), becomes the &#147;beneficial owner&#148; (as defined in Rule&nbsp;13d-3 under the
Exchange Act) of securities of the Company representing more than 50% of the combined voting power
of the Company&#146;s then outstanding securities; or (ii)&nbsp;when, during any period of twenty-four (24)
consecutive months, the individuals who, at the beginning of such period, constitute the Board of
Directors (the &#147;Incumbent Directors&#148;) cease for any reason other than death to constitute at least
a majority thereof, provided, however, that a director who was not a director at the beginning of
such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an
Incumbent Director) if such director was elected by, or on the recommendation of or with the
approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either
actually (because they were directors at the beginning of such 24-month period) or through the
operation of this provision; or (iii)&nbsp;the occurrence of a transaction requiring stockholder
approval under applicable state law for the acquisition of the Company by an entity other than the
Company or a subsidiary or an affiliated company of the Company through the purchase of assets, or
by merger, or otherwise; provided however, that none of the foregoing shall constitute a Change of
Control if such transaction, event or occurrence shall be approved by, or consented to, by the
Employee;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&#147;Good Reason&#148; shall mean the occurrence of any of the following without your written
consent or approval: (A)&nbsp;the assignment to you of duties inconsistent with this Agreement or a
material diminution in your title, authority or base compensation; (B)&nbsp;any change in reporting
responsibility so that you report to any person other than the Board of Directors thereof; (C)&nbsp;any
material breach of the Agreement by this Company or (D)&nbsp;the Company requires you to relocate more
than 50 miles outside of the Dallas-Fort Worth Metroplex metropolitan area.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Non-Competition and Confidentiality Agreement</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees to provide you with confidential and proprietary information so that you
may perform your duties under this Agreement. You agree to enter into a Non-Competition and
Proprietary
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Timothy S. Davidson<BR>
April&nbsp;23, 2007<BR>
Page 3 of 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Rights Assignment Agreement, a form of which is attached hereto as Exhibit&nbsp;A (the
&#147;Non-Competition
Agreement&#148;), pursuant to which you will agree that you will keep in confidence the Company&#146;s
confidential information, you will not compete with the Company, and you will not solicit employees
or independent distributors of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Governing Law</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be deemed a contract made under the laws of Texas and for all purposes
shall be construed in accordance with the laws of said State applicable to contracts made and to be
performed within said State.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Arbitration</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All disputes between Parties in connection with arising out of the existence, validity,
construction, performance and termination of this Agreement shall be finally settled by arbitration
under the Federal Arbitration Act. The arbitration shall be held in Dallas, Texas in accordance
with the Rules of the American Arbitration Association for employment disputes by one or more
arbitrators appointed in accordance with the said Rules and the award of such arbitrators shall be
final and binding upon the Parties. The non-prevailing party shall pay for all reasonable costs and
expenses incurred in connection with such dispute, including filing and arbitrator fees as well as
the reasonable costs and expenses of opposing legal counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Employment at Will</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You understand that your employment will be at will, and either you or the Company may
terminate the relationship at any time upon four (4)&nbsp;weeks notice; provided however, that the at
will relationship will not in any way affect the Company&#146;s obligation to pay severance to you as
set forth above under &#147;Severance.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We all look forward to working with you and know that you will do an outstanding job in this
critical role. All of the benefits described in this letter are conditioned upon your acceptance of
this offer. Please indicate your acceptance and agreement with the terms of this letter by signing
below in the space provided and by signing the Non-Competition Agreement.
</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">Sincerely,<BR>
<BR>
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 valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Chris T. Sharng&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>/s/ Timothy S. Davidson</U>
</DIV>



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



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><FONT style="font-variant: SMALL-CAPS"><U><B>Exhibit&nbsp;A</B></U></FONT>
</DIV>


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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>NON-COMPETITION AND PROPRIETARY RIGHTS</B></U><BR>
<U><B>ASSIGNMENT AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Employee&#146;s Name: <B>Timothy S. Davidson </B>(&#147;Employee&#148;)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: April&nbsp;23, 2007
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In consideration of Employee&#146;s continued employment by or other similar relationship
with Natural Health Trends Corp. (the &#147;Company&#148;) and in consideration for and as a
condition to the transactions contemplated by that certain Employment Agreement dated
as of the date hereof by and between the Company and Employee (the &#147;Employment
Agreement&#148;), including without limitation the Company&#146;s promise to provide Employee
with confidential information, Employee hereby agrees with the Company as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U><B>Confidential Information</B></U>. During the term of this Agreement and in the course of
Employee&#146;s performance of services for the Company, the Company agrees to provide Employee with
confidential or competitively sensitive information of the Company, which may include information
of a third party with which the Company has a business relationship, relating to the Company&#146;s or
such third party&#146;s current or prospective business, research and development activities, products,
technology, strategy, organization and/or finances (collectively, &#147;Confidential Information&#148;).
Such Confidential Information, which may be disclosed orally or in writing, shall include, without
limitation, Technology (as defined in Section&nbsp;2(a)), Work Product (as defined in Section&nbsp;2(a)),
plans, strategies, negotiations, customer or prospect identities, market analyses, projections,
forecasts, cost and performance data, sales data, financial statements, price lists, pre-release
information regarding the Company&#146;s products, personnel lists and data, and all documents and other
materials (including any notes, drawings, reports, manuals, notebooks, summaries, extracts or
analyses), whether in written or electronic form, that disclose or embody such Confidential
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidential Information shall not include information that is now, or hereafter becomes, through
no act or failure to act on Employee&#146;s part, generally known to the public; information that was
rightfully in Employee&#146;s possession without confidentiality restriction prior to the Company&#146;s
disclosure to Employee; information that was rightfully obtained by Employee from a third party who
has the right, without obligation to the Company, to transfer or disclose such information; or
information which Employee is required to disclose pursuant to judicial order, provided that in the
latter case Employee shall promptly notify the Company and take reasonable steps to assist the
Company in protecting the Company&#146;s rights prior to disclosure. At all times, both during
Employee&#146;s relationship with the Company and after the termination thereof, Employee will keep all
Confidential Information in strict confidence; will not use Confidential Information except for the
purpose of providing services to the Company; and will not divulge, publish, disclose or
communicate Confidential Information, in whole or in part, to any third party. Employee further
agrees that Employee will not allow any unauthorized person access to Confidential Information,
either before or after the termination of this Agreement, and will take all action reasonably
necessary and satisfactory to the Company to protect the confidentiality of Confidential
Information. Employee agrees not to reproduce or copy by any means Confidential Information,
except as reasonably required to accomplish the purposes of the Employment Agreement, and further
agrees not to remove any proprietary rights legend from such Confidential Information or copies
thereof made in accordance
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">with this Agreement. Employee will not erase, discard or destroy any tangible or electronic
materials that disclose or embody Confidential Information without specific instructions from the
Company to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of Employee&#146;s services for any reason, or upon demand by the Company at any
time, the Company&#146;s agreement to provide, and Employee&#146;s right to use, Confidential Information
shall immediately terminate, and Employee shall return promptly to the Company, or destroy, at the
Company&#146;s option, all tangible and electronic materials that disclose or embody Confidential
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U><B>Assignment of Work Product</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For purposes of this Agreement: &#147;Technology&#148; shall mean all ideas, concepts, inventions,
discoveries, developments, creations, methods, techniques, processes, machines, products, devices,
compositions of matter, improvements, modifications, designs, systems, specifications, schematics,
formulas, mask works, works of authorship, software, algorithms, data and know-how, whether or not
patentable or copyrightable, and all related notes, drawings, reports, manuals, notebooks,
summaries, memoranda and other documentation; &#147;Intellectual Property Rights&#148; shall mean all
worldwide intellectual property rights including, without limitation, all rights relating to the
protection of inventions, including patents, patent applications and certificates of invention; all
rights associated with works of authorship, including copyrights and moral rights; all rights
relating to the protection of trade secrets and confidential information; all rights related to the
protection of trademarks, logos and service marks; any rights analogous to those set forth herein,
and all other proprietary rights related to intangible property; and &#147;Work Product&#148; shall mean any
and all Technology made, conceived, designed, created, discovered, invented or reduced to practice
by Employee during the term of this Agreement that (i)&nbsp;results from Employee&#146;s performance of
services for the Company, (ii)&nbsp;is related to the business of the Company or (iii)&nbsp;is based upon the
use of Confidential Information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Employee agrees to promptly disclose to the Company in writing all Work Product upon the
development, conception or creation thereof by Employee, as well as, at any time, upon the request
of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Employee agrees that all Work Product shall be the sole and exclusive property of the
Company, and does hereby irrevocably and unconditionally transfer and assign to the Company, its
successors and assigns, all right, title and interest Employee may have or acquire in or to any
Work Product, including all Intellectual Property Rights therein. Employee further agrees that any
and all works of authorship created, authored or developed by Employee hereunder shall be deemed to
be &#147;works made for hire&#148; within the meaning of the United States copyright law and, as such, all
rights therein including copyright shall belong solely and exclusively to the Company from the time
of their creation. To the extent any such work of authorship may not be deemed to be a work made
for hire, Employee agrees to, and does hereby, irrevocably and unconditionally transfer and assign
to the Company all right, title, and interest including copyright in and to such work.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon request by the Company, Employee agrees to execute and deliver all such documents,
certificates, assignments and other writings, and take such other actions, as may be necessary or
desirable to vest in the Company ownership in all Work Product as provided in this Section&nbsp;2,
including, but not limited to, the execution and delivery of all applications for securing all
United States and foreign patents, copyrights and other Intellectual Property Rights relating to
Work
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Product. The Company shall reimburse Employee for any reasonable expenses incurred by Employee at
the Company&#146;s request to secure title or legal protection on the Company&#146;s behalf for any such Work
Product. In the event that the Company is unable to secure Employee&#146;s signature to any document,
or if Employee otherwise fails to take any action deemed necessary by the Company to protect or
maintain the Company&#146;s ownership of Work Product and Intellectual Property Rights therein, then the
Company may, and Employee hereby irrevocably designates and appoints the Company and its duly
authorized officers and agents as Employee&#146;s agent and attorney-in-fact to act on and in Employee&#146;s
behalf and stead to, execute and file any such applications and perform all other lawfully
permitted acts to perfect Employee&#146;s assignment and transfer of ownership rights to the Company
with the same legal force and effect as if executed, filed and performed by Employee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;For purposes of this Section&nbsp;2(e), &#147;Background Technology&#148; shall mean Technology owned by
or licensed to Employee as of the date that Employee was first employed by the Company or developed
or otherwise obtained by Employee following the that Employee was first employed by the Company
independently of the performance of services hereunder by Employee. The Company acquires no rights
in the Background Technology, except as specifically provided in this Agreement and, as between the
parties, Employee retains all rights therein. Employee hereby grants to Company a royalty-free,
worldwide, non-exclusive, perpetual, sublicensable and irrevocable right and license to use, for
all purposes in Company&#146;s business, Background Technology that has been disclosed by Employee to
Company or that is embodied within or related to the use, operation or improvement of Work Product
created by Employee in connection with Employee&#146;s performance of services for the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U><B>Representation</B></U>. Employee hereby represents to the Company that the Work Product
Employee creates under the Employment Agreement will be original, and that Employee&#146;s performance
of services under the Employment Agreement and the Company&#146;s use of Employee&#146;s Work Product will
not breach any agreement Employee has with any third party or the intellectual property rights or
other rights of any third party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U><B>Return of Materials</B></U>. All documents, records, apparatus, equipment and other
physical property, whether or not pertaining to Confidential Information, which are furnished to
Employee by the Company or are produced by Employee in connection with Employee&#146;s services will be
and remain the sole property of the Company. Employee will return to the Company all such
materials and property as and when requested by the Company. In any event, Employee will return
all such materials and property immediately upon termination of Employee&#146;s services for any reason.
Employee will not retain any such material or property or any copies thereof upon such
termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U><B>Competitive Activities</B></U>. From the date hereof until the six (6)&nbsp;month anniversary
of the later of the date on which Employee no longer is employed by the Company, serves as a
consultant to the Company or serves as a member of the Board of Directors of the Company (the
&#147;Non-Compete Restricted Period&#148;), Employee will not, directly or indirectly, whether as owner,
partner, shareholder, director, agent, employee, co-venturer, consultant or otherwise, without the
written consent of the Company, engage, participate, invest in, or provide services to, any
multi-level marketing business that indirectly or directly competes with the Company in recruiting
for independent distributors (collectively, the &#147;Competitive Activities&#148;). The prohibition set
forth in this Section&nbsp;5 shall not restrict Employee from (a)&nbsp;owning or holding up to two percent
(2%) of the shares of stock of any company registered or sold on any recognized stock exchange or
sold in the over-the-counter market or (b)
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">providing services that do not involve management, accounting, or finance or consulting with
the management, accounting or finance personnel. Employee understands and agrees that the
restrictions set forth in this Section&nbsp;5 are intended to protect the Company&#146;s reasonable
competitive business interests, its interest in its Confidential Information and established and
prospective customer relationships and goodwill, and agree that such restrictions are reasonable
and appropriate for this purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U><B>Nonsolicitation of Customers and Distributors</B></U>. During the Non-Compete Restricted
Period plus six (6)&nbsp;months (the &#147;Nonsolicitation Period&#148;), Employee will not, in any capacity,
directly or indirectly:
</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">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>solicit business or patronage of any customer or prospective
customer (collectively, &#147;Customer&#148;), or distributor or prospective distributor
(collectively, &#147;Distributor&#148;) of the Company in connection with any Competitive
Activity;</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">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>divert, entice, or otherwise take away from the Company the
business or patronage of any Customer or Distributor, or attempt to do so;</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">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>solicit, induce or assist any Customer, Distributor or supplier
to terminate or reduce its relationship 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>assist with the provision of any services to a Customer or
Distributor (except in Employee&#146;s capacity as an employee of 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>refer a Customer, Distributor or supplier to another person
engaged (or to be engaged) in Competitive Activities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U><B>Nonsolicitation of Employees</B></U>. During the Nonsolicitation Period, Employee will
not:
</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">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>hire or employ, directly or indirectly through any enterprise
with which Employee is associated, any current employee of the Company or any
individual who had been employed by the Company within one (1)&nbsp;year preceding
Employee&#146;s termination (other than persons whose employment by the Company was
terminated by or at the request of 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>recruit, solicit or induce (or in any way assist another person
or enterprise in recruiting, soliciting or inducing) any employee or director of
the Company to terminate his or her employment or other relationship with the
Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U><B>Acknowledgments</B></U>. Employee acknowledges and agrees that the restrictions set forth
in this Agreement are intended to protect the Company&#146;s interest in Confidential Information and
its commercial relationships and goodwill (with its Customers, Distributors, vendors, directors and
employees), and are reasonable and appropriate for these purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U><B>Disclosure of Agreement</B></U>. Employee will disclose the existence and terms of this
Agreement to any prospective employer, partner, co-venturer, investor or lender prior to entering
into an employment, partnership or other business relationship with such person or entity.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U><B>Third-Party Agreements and Rights</B></U>. Employee hereby confirms that Employee is not
bound by the terms of any agreement with any previous employer or other party which restricts in
any way Employee&#146;s use or disclosure of information or Employee&#146;s engagement in any business,
except as may be disclosed in <U>Schedule&nbsp;A</U> attached to this Agreement prior to its acceptance
by the Company. Employee has delivered to the Company true and complete copies of any agreements
listed on <U>Schedule&nbsp;A</U>. Employee represents to the Company that Employee&#146;s execution of this
Agreement, Employee&#146;s employment with the Company and the performance of Employee&#146;s proposed duties
for the Company will not violate any obligations Employee may have to any such previous employer or
other party. In Employee&#146;s work for the Company, Employee will not disclose or make use of any
information in violation of any agreements with or rights of any such previous employer or other
party, and Employee will not bring to the premises of the Company any copies or other tangible
embodiments of non-public information belonging to or obtained from any such previous employment or
other party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U><B>Injunction</B></U>. Employee agrees that it would be difficult to measure any damages
caused to the Company which might result from any breach by Employee of the promises set forth in
this Agreement, and that in any event money damages would be an inadequate remedy for any such
breach. Accordingly, Employee agrees that if Employee breaches, or proposes to breach, any portion
of this Agreement, the Company shall be entitled, in addition to all other remedies that it may
have, to an injunction or other appropriate equitable relief to restrain any such breach without
showing or proving any actual damage to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U><B>Binding Effect</B></U>. This Agreement will be binding upon Employee and Employee&#146;s
heirs, executors, administrators and legal representatives and will inure to the benefit of the
Company, any subsidiary of the Company, and its and their respective successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U><B>Enforceability</B></U>. If any portion or provision of this Agreement is to any extent
declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this
Agreement, or the application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, will not be affected thereby, and each portion
and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by
law. In the event that any provision of this Agreement is determined by any court of competent
jurisdiction to be unenforceable by reason of excessive scope as to geographic, temporal or
functional coverage, such provision will be deemed to extend only over the maximum geographic,
temporal and functional scope as to which it may be enforceable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U><B>Entire Agreement</B></U>. This Agreement constitutes the entire agreement between the
Company and Employee with respect to the subject matter hereof, and supersedes all prior
representations and agreements with respect to such subject matter. This Agreement may not be
amended, modified or waived except by a written instrument duly executed by the person against whom
enforcement of such amendment, modification or waiver is sought. The failure of any party to
require the performance of any term or obligation of this Agreement, or the waiver by any party of
any breach of this Agreement, in any particular case will not prevent any subsequent enforcement of
such term or obligation or to be deemed a waiver of any separate or subsequent breach.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U><B>Notices</B></U>. Any notices, requests, demands and other communications provided for by
this Agreement will be sufficient if in writing and delivered in person or sent by registered or
certified
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">mail, postage prepaid, to Employee at the last address which Employee has filed in writing
with the Company or, in the case of any notice to the Company, at its main offices, to the
attention of the undersigned officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U><B>Governing Law</B></U>. The validity, interpretation, performance and enforcement of this
agreement shall be governed by the laws of the State of Texas, without applying the conflict of
laws provisions thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;<U><B>Arbitration</B></U>. All disputes between Parties in connection with or arising out of
the existence, validity, construction, performance and termination of this Agreement shall be
finally settled by arbitration. The arbitration shall be held in the Dallas, Texas in accordance
with the Rules of the American Arbitration Association by one or more arbitrators appointed in
accordance with the said Rules and the award of such arbitrators shall be final and binding upon
the Parties. The non-prevailing party shall pay for all reasonable costs and expenses incurred in
connection with such dispute, including filing and arbitrator fees as well as the reasonable costs
and expenses of opposing legal counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;<U><B>Escrow</B></U><B>. </B>If Employee is terminated for cause and, within 30&nbsp;days of such
termination, initiates an arbitration proceeding disputing that the termination was for cause, then
the Company will either (a)&nbsp;on each regular pay day of the Company occurring following the
expiration of 10&nbsp;days after such arbitration is commenced, pay into an escrow account an amount
equal to the Severance Payment (net of payroll taxes) that would be due to Employee under the
Employment Agreement if the termination was without cause until six months of such Severance
Payments have been made, or (b)&nbsp;release Employee from any remaining obligations under Section&nbsp;5, 6
or 7 of this Agreement. If the Company fails to make any such escrow payment, then the Company
will be deemed to have released Employee from any further obligation under Section&nbsp;5, 6 or 7 of
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19<B>.&nbsp;</B><U><B>Prior Material Breach</B></U><B>. </B>Notwithstanding anything to the contrary in this
Agreement, the failure of the Company to make any payment to Employee that is required under the
Employment Agreement or this Agreement shall, if such failure is not excused (as provided below)
and continues for five business days after written notice to the Company of such failure, excuse
Employee from complying with Sections&nbsp;5, 6 and 7 of this Agreement. The failure of the Company to
pay Employee under the Employment Agreement shall be excused by Employee&#146;s prior material breach of
this Agreement or the Employment Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EMPLOYEE UNDERSTANDS THAT THIS AGREEMENT AFFECTS IMPORTANT RIGHTS. EMPLOYEE HAS READ IT CAREFULLY
AND IS SATISFIED THAT EMPLOYEE UNDERSTANDS IT COMPLETELY.
</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="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><B>NATURAL HEALTH TRENDS CORP.</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left"><B>EMPLOYEE</B></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">/s/ Chris Sharng</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">/s/ Timothy S. Davidson</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&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">Name:<BR>
Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chris Sharng<BR>
President
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Timothy S. Davidson</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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 colspan="3" valign="top" align="left">Dated:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Dated:</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">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
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</DIV>


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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Schedule&nbsp;A</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;None&#093;</B>
</DIV>



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


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>d45913exv10w3.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT - GARY C. WALLACE
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w3</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B><I>Exhibit&nbsp;10.3</I></B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">April&nbsp;23, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Gary C. Wallace<BR>
7419 Lynworth Drive<BR>
Dallas, TX 75248

</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dear Gary:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I am pleased to set forth the terms and conditions of your employment with Natural Health
Trends Corp. (the &#147;Company&#148;). We look forward to your significant contributions toward the
achievement of our goals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>The Position</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors appointed you General Counsel, Chief Compliance Officer and Secretary
of the Company, and this letter sets out the terms of your continued employment in that capacity
commencing as of April&nbsp;23, 2007 (the &#147;Commencement Date&#148;). You will report to the Company&#146;s
President and have such authority and responsibilities as are incident to your position in
accordance with the Company&#146;s Bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Compensation Package</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your base salary is $190,000 per year, subject to a minimum of 3% annual increase per year
every January 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> as approved by the Board, and you will also be eligible to receive
annual incentive compensation, in accordance with the Company&#146;s Annual Incentive Plan. The
incentive bonus will be paid in cash immediately following the completion of the Company&#146;s year end
audit of its financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Benefits Package</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your compensation will also include participation in our standard benefits program available
to our U.S. based employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Equity Participation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to an annual equity grant in accordance with the Company Annual Incentive
Plan or Annual Equity Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Vacation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to four (4)&nbsp;weeks vacation per annum, in accordance with the Company&#146;s
vacation policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Severance</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to Severance Payments (as defined below) if any of the following events
occur: (i)&nbsp;the Company terminates you without Cause (as defined below) during the period
commencing on the date that is thirty (30)&nbsp;days prior to a Change of Control (as defined below)
through and including the date that is 18&nbsp;months following such Change of Control (a &#147;Change of
Control Termination&#148;); (ii)&nbsp;you provide the Company with written notice of your resignation for
Good Reason (as defined below) and the Company has not cured such event within 30&nbsp;days following
its receipt of such written notice; or (iii)&nbsp;the Company terminates you without Cause (other than
in connection with a Change of Control as contemplated in (i)&nbsp;above).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, in order to receive any Severance Payments you must execute and deliver to the
Company a full general release of all claims against the Company and its affiliates in form and
substance satisfactory to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used herein, the term:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &#147;Severance Payments&#148; shall mean the continuation of the payment of your base salary then
in effect (plus health and medical insurance coverage as previously provided to you or, if required
in lieu
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Gary C. Wallace<BR>
April&nbsp;23, 2007<BR>
Page 2 of 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">thereof, COBRA payments providing such coverage) for a period of twelve (12)&nbsp;months following
the termination date, or until such earlier date on which you become engaged in any Competitive
Activity (as defined in the Non-Competition Agreement) or otherwise breach the terms and conditions
of the Non-Competition Agreement (each, a &#147;Severance Payment Termination Event); provided however,
that with respect to a Change of Control Termination, the Employee shall be entitled to receive
Severance Payments equal to your base salary for two (2)&nbsp;years, due and payable to you in a lump
sum 30&nbsp;days after the termination date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Cause&#148; shall include, without limitation, the following: (i)&nbsp;failure or neglect, by you
to perform the duties of your position; (ii)&nbsp;your failure to obey orders given by the Company or
your supervisors; (iii)&nbsp;your misconduct in connection with the performance of any of your duties,
including, without limitation, misappropriation of funds or property of the Company, securing or
attempting to secure personally any profit in connection with any transaction entered into on
behalf of the Company, misrepresentation to the Company, or any violation of law or regulations on
Company premises or to which the Company is subject; (iv)&nbsp;your commission of an act involving moral
turpitude, dishonesty, theft or unethical business conduct, or conduct which impairs or injures the
reputation of, or harms, the Company; (v)&nbsp;your disloyalty, including without limitation, aiding a
competitor; (vi)&nbsp;your failure to devote your full time and best efforts to the
Company <SUP style="font-size: 85%; vertical-align: text-top">&#145; </SUP>s business and affairs; (vii)&nbsp;your failure to work exclusively for
the Company; (viii)&nbsp;your failure to fully cooperate in any investigation by the Company; (ix)&nbsp;your
material breach of this Agreement or Company rules; (x)&nbsp;any other act of misconduct by you that
could reasonably be expected to have a material adverse effect on the Company, its business,
prospects or reputation; (xi)&nbsp;your abuse of alcohol or other drugs or controlled substances; or
(xii)&nbsp;your resignation (other than for Good Reason).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&#147;Change of Control&#148; shall mean: (i)&nbsp;when any &#147;person&#148; as defined in Section&nbsp;3(a)(9) of the
Securities and Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), and as used in Section 13(d)
and 14(d) thereof, including a &#147;group&#148; as defined in Section 13(d) of the Exchange Act, but
excluding the Company or any subsidiary or any affiliate of the Company or any employee benefit
plan sponsored or maintained by the Company or any subsidiary of the Company (including any trustee
of such plan acting as trustee), becomes the &#147;beneficial owner&#148; (as defined in Rule&nbsp;13d-3 under the
Exchange Act) of securities of the Company representing more than 50% of the combined voting power
of the Company&#146;s then outstanding securities; or (ii)&nbsp;when, during any period of twenty-four (24)
consecutive months, the individuals who, at the beginning of such period, constitute the Board of
Directors (the &#147;Incumbent Directors&#148;) cease for any reason other than death to constitute at least
a majority thereof, provided, however, that a director who was not a director at the beginning of
such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an
Incumbent Director) if such director was elected by, or on the recommendation of or with the
approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either
actually (because they were directors at the beginning of such 24-month period) or through the
operation of this provision; or (iii)&nbsp;the occurrence of a transaction requiring stockholder
approval under applicable state law for the acquisition of the Company by an entity other than the
Company or a subsidiary or an affiliated company of the Company through the purchase of assets, or
by merger, or otherwise; provided however, that none of the foregoing shall constitute a Change of
Control if such transaction, event or occurrence shall be approved by, or consented to, by the
Employee;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&#147;Good Reason&#148; shall mean the occurrence of any of the following without your written
consent or approval: (A)&nbsp;the assignment to you of duties inconsistent with this Agreement or a
material diminution in your title, authority or base compensation; (B)&nbsp;any change in reporting
responsibility so that you report to any person other than the Board of Directors thereof; (C)&nbsp;any
material breach of the Agreement by this Company or (D)&nbsp;the Company requires you to relocate more
than 50 miles outside of the Dallas-Fort Worth Metroplex metropolitan area.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Non-Competition and Confidentiality Agreement</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees to provide you with confidential and proprietary information so that you
may perform your duties under this Agreement. You agree to enter into a Non-Competition and
Proprietary
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Gary C. Wallace<BR>
April&nbsp;23, 2007<BR>
Page 3 of 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Rights Assignment Agreement, a form of which is attached hereto as Exhibit&nbsp;A (the
&#147;Non-Competition Agreement&#148;), pursuant to which you will agree that you will keep in confidence the Company&#146;s
confidential information, you will not compete with the Company, and you will not solicit employees
or independent distributors of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Governing Law</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be deemed a contract made under the laws of Texas and for all purposes
shall be construed in accordance with the laws of said State applicable to contracts made and to be
performed within said State.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Arbitration</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All disputes between Parties in connection with arising out of the existence, validity,
construction, performance and termination of this Agreement shall be finally settled by arbitration
under the Federal Arbitration Act. The arbitration shall be held in Dallas, Texas in accordance
with the Rules of the American Arbitration Association for employment disputes by one or more
arbitrators appointed in accordance with the said Rules and the award of such arbitrators shall be
final and binding upon the Parties. The non-prevailing party shall pay for all reasonable costs and
expenses incurred in connection with such dispute, including filing and arbitrator fees as well as
the reasonable costs and expenses of opposing legal counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Employment at Will</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You understand that your employment will be at will, and either you or the Company may
terminate the relationship at any time upon four (4)&nbsp;weeks notice; provided however, that the at
will relationship will not in any way affect the Company&#146;s obligation to pay severance to you as
set forth above under &#147;Severance&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We all look forward to working with you and know that you will do an outstanding job in this
critical role. All of the benefits described in this letter are conditioned upon your acceptance of
this offer. Please indicate your acceptance and agreement with the terms of this letter by signing
below in the space provided and by signing the Non-Competition Agreement.
</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">Sincerely,<BR>
<BR>
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 valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Chris T. Sharng&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Acknowledged and Agreed:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>/s/ Gary C. Wallace&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

</DIV>

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

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B><U><FONT style="font-variant: SMALL-CAPS">Exhibit&nbsp;A</FONT></U></B>
</DIV>


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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>NON-COMPETITION AND PROPRIETARY RIGHTS</B></U><BR>
<U><B>ASSIGNMENT AGREEMENT</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Employee&#146;s Name: <B>Gary C. Wallace </B>(&#147;Employee&#148;)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: April&nbsp;23, 2007
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">In consideration of Employee&#146;s continued employment by or other similar relationship with
Natural Health Trends Corp. (the &#147;Company&#148;) and in consideration for and as a condition to
the transactions contemplated by that certain Employment Agreement dated as of the date
hereof by and between the Company and Employee (the &#147;Employment Agreement&#148;), including
without limitation the Company&#146;s promise to provide Employee with confidential information,
Employee hereby agrees with the Company as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U><B>Confidential Information</B></U>. During the term of this Agreement and in the course of
Employee&#146;s performance of services for the Company, the Company agrees to provide Employee with
confidential or competitively sensitive information of the Company, which may include information
of a third party with which the Company has a business relationship, relating to the Company&#146;s or
such third party&#146;s current or prospective business, research and development activities, products,
technology, strategy, organization and/or finances (collectively, &#147;Confidential Information&#148;).
Such Confidential Information, which may be disclosed orally or in writing, shall include, without
limitation, Technology (as defined in Section&nbsp;2(a)), Work Product (as defined in Section&nbsp;2(a)),
plans, strategies, negotiations, customer or prospect identities, market analyses, projections,
forecasts, cost and performance data, sales data, financial statements, price lists, pre-release
information regarding the Company&#146;s products, personnel lists and data, and all documents and other
materials (including any notes, drawings, reports, manuals, notebooks, summaries, extracts or
analyses), whether in written or electronic form, that disclose or embody such Confidential
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidential Information shall not include information that is now, or hereafter becomes,
through no act or failure to act on Employee&#146;s part, generally known to the public; information
that was rightfully in Employee&#146;s possession without confidentiality restriction prior to the
Company&#146;s disclosure to Employee; information that was rightfully obtained by Employee from a third
party who has the right, without obligation to the Company, to transfer or disclose such
information; or information which Employee is required to disclose pursuant to judicial order,
provided that in the latter case Employee shall promptly notify the Company and take reasonable
steps to assist the Company in protecting the Company&#146;s rights prior to disclosure. At all times,
both during Employee&#146;s relationship with the Company and after the termination thereof, Employee
will keep all Confidential Information in strict confidence; will not use Confidential Information
except for the purpose of providing services to the Company; and will not divulge, publish,
disclose or communicate Confidential Information, in whole or in part, to any third party.
Employee further agrees that Employee will not allow any unauthorized person access to Confidential
Information, either before or after the termination of this Agreement, and will take all action
reasonably necessary and satisfactory to the Company to protect the confidentiality of Confidential
Information. Employee agrees not to reproduce or copy by any means Confidential Information,
except as reasonably required to accomplish the purposes of the Employment Agreement, and further
agrees not to remove any
</DIV>

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</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">proprietary rights legend from such Confidential Information or copies thereof made in
accordance with this Agreement. Employee will not erase, discard or destroy any tangible or
electronic materials that disclose or embody Confidential Information without specific instructions
from the Company to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of Employee&#146;s services for any reason, or upon demand by the Company at any
time, the Company&#146;s agreement to provide, and Employee&#146;s right to use, Confidential Information
shall immediately terminate, and Employee shall return promptly to the Company, or destroy, at the
Company&#146;s option, all tangible and electronic materials that disclose or embody Confidential
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U><B>Assignment of Work Product</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For purposes of this Agreement: &#147;Technology&#148; shall mean all ideas, concepts, inventions,
discoveries, developments, creations, methods, techniques, processes, machines, products, devices,
compositions of matter, improvements, modifications, designs, systems, specifications, schematics,
formulas, mask works, works of authorship, software, algorithms, data and know-how, whether or not
patentable or copyrightable, and all related notes, drawings, reports, manuals, notebooks,
summaries, memoranda and other documentation; &#147;Intellectual Property Rights&#148; shall mean all
worldwide intellectual property rights including, without limitation, all rights relating to the
protection of inventions, including patents, patent applications and certificates of invention; all
rights associated with works of authorship, including copyrights and moral rights; all rights
relating to the protection of trade secrets and confidential information; all rights related to the
protection of trademarks, logos and service marks; any rights analogous to those set forth herein,
and all other proprietary rights related to intangible property; and &#147;Work Product&#148; shall mean any
and all Technology made, conceived, designed, created, discovered, invented or reduced to practice
by Employee during the term of this Agreement that (i)&nbsp;results from Employee&#146;s performance of
services for the Company, (ii)&nbsp;is related to the business of the Company or (iii)&nbsp;is based upon the
use of Confidential Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Employee agrees to promptly disclose to the Company in writing all Work Product upon the
development, conception or creation thereof by Employee, as well as, at any time, upon the request
of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Employee agrees that all Work Product shall be the sole and exclusive property of the
Company, and does hereby irrevocably and unconditionally transfer and assign to the Company, its
successors and assigns, all right, title and interest Employee may have or acquire in or to any
Work Product, including all Intellectual Property Rights therein. Employee further agrees that any
and all works of authorship created, authored or developed by Employee hereunder shall be deemed to
be &#147;works made for hire&#148; within the meaning of the United States copyright law and, as such, all
rights therein including copyright shall belong solely and exclusively to the Company from the time
of their creation. To the extent any such work of authorship may not be deemed to be a work made
for hire, Employee agrees to, and does hereby, irrevocably and unconditionally transfer and assign
to the Company all right, title, and interest including copyright in and to such work.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon request by the Company, Employee agrees to execute and deliver all such documents,
certificates, assignments and other writings, and take such other actions, as may be necessary or
desirable to vest in the Company ownership in all Work Product as provided in this
</DIV>

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</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;2, including, but not limited to, the execution and delivery of all applications for
securing all United States and foreign patents, copyrights and other Intellectual Property Rights
relating to Work Product. The Company shall reimburse Employee for any reasonable expenses
incurred by Employee at the Company&#146;s request to secure title or legal protection on the Company&#146;s
behalf for any such Work Product. In the event that the Company is unable to secure Employee&#146;s
signature to any document, or if Employee otherwise fails to take any action deemed necessary by
the Company to protect or maintain the Company&#146;s ownership of Work Product and Intellectual
Property Rights therein, then the Company may, and Employee hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as Employee&#146;s agent and
attorney-in-fact to act on and in Employee&#146;s behalf and stead to, execute and file any such
applications and perform all other lawfully permitted acts to perfect Employee&#146;s assignment and
transfer of ownership rights to the Company with the same legal force and effect as if executed,
filed and performed by Employee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;For purposes of this Section&nbsp;2(e), &#147;Background Technology&#148; shall mean Technology owned by
or licensed to Employee as of the date that Employee was first employed by the Company or developed
or otherwise obtained by Employee following the that Employee was first employed by the Company
independently of the performance of services hereunder by Employee. The Company acquires no rights
in the Background Technology, except as specifically provided in this Agreement and, as between the
parties, Employee retains all rights therein. Employee hereby grants to Company a royalty-free,
worldwide, non-exclusive, perpetual, sublicensable and irrevocable right and license to use, for
all purposes in Company&#146;s business, Background Technology that has been disclosed by Employee to
Company or that is embodied within or related to the use, operation or improvement of Work Product
created by Employee in connection with Employee&#146;s performance of services for the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U><B>Representation</B></U>. Employee hereby represents to the Company that the Work Product
Employee creates under the Employment Agreement will be original, and that Employee&#146;s performance
of services under the Employment Agreement and the Company&#146;s use of Employee&#146;s Work Product will
not breach any agreement Employee has with any third party or the intellectual property rights or
other rights of any third party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U><B>Return of Materials</B></U>. All documents, records, apparatus, equipment and other
physical property, whether or not pertaining to Confidential Information, which are furnished to
Employee by the Company or are produced by Employee in connection with Employee&#146;s services will be
and remain the sole property of the Company. Employee will return to the Company all such
materials and property as and when requested by the Company. In any event, Employee will return
all such materials and property immediately upon termination of Employee&#146;s services for any reason.
Employee will not retain any such material or property or any copies thereof upon such
termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U><B>Competitive Activities</B></U>. From the date hereof until the six (6)&nbsp;month anniversary
of the later of the date on which Employee no longer is employed by the Company, serves as a
consultant to the Company or serves as a member of the Board of Directors of the Company (the
&#147;Non-Compete Restricted Period&#148;), Employee will not, directly or indirectly, whether as owner,
partner, shareholder, director, agent, employee, co-venturer, consultant or otherwise, without the
written consent of the Company, engage, participate, invest in, or provide services to, any
multi-level marketing business that indirectly or directly competes with the Company in recruiting
for independent distributors (collectively, the &#147;Competitive Activities&#148;). The prohibition set
forth in this Section&nbsp;5 shall not restrict Employee from (a)&nbsp;owning or holding up to two percent
(2%) of the shares of stock of any company
</DIV>

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</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">registered or sold on any recognized stock exchange or sold in the over-the-counter market or
(b)&nbsp;providing services that do not involve management, accounting, or finance or consulting with
the management, accounting or finance personnel. Employee understands and agrees that the
restrictions set forth in this Section&nbsp;5 are intended to protect the Company&#146;s reasonable
competitive business interests, its interest in its Confidential Information and established and
prospective customer relationships and goodwill, and agree that such restrictions are reasonable
and appropriate for this purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U><B>Nonsolicitation of Customers and Distributors</B></U>. During the Non-Compete Restricted
Period plus six (6)&nbsp;months (the &#147;Nonsolicitation Period&#148;), Employee will not, in any capacity,
directly or indirectly:
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>solicit business or patronage of any customer or prospective
customer (collectively, &#147;Customer&#148;), or distributor or prospective distributor
(collectively, &#147;Distributor&#148;) of the Company in connection with any Competitive
Activity;</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="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>divert, entice, or otherwise take away from the Company the
business or patronage of any Customer or Distributor, or attempt to do so;</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="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>solicit, induce or assist any Customer, Distributor or supplier
to terminate or reduce its relationship 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>assist with the provision of any services to a Customer or
Distributor (except in Employee&#146;s capacity as an employee of 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>refer a Customer, Distributor or supplier to another person
engaged (or to be engaged) in Competitive Activities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U><B>Nonsolicitation of Employees</B></U>. During the Nonsolicitation Period, Employee will
not:
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>hire or employ, directly or indirectly through any enterprise
with which Employee is associated, any current employee of the Company or any
individual who had been employed by the Company within one (1)&nbsp;year preceding
Employee&#146;s termination (other than persons whose employment by the Company was
terminated by or at the request of 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>recruit, solicit or induce (or in any way assist another person
or enterprise in recruiting, soliciting or inducing) any employee or director of
the Company to terminate his or her employment or other relationship with the
Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U><B>Acknowledgments</B></U>. Employee acknowledges and agrees that the restrictions set forth
in this Agreement are intended to protect the Company&#146;s interest in Confidential Information and
its commercial relationships and goodwill (with its Customers, Distributors, vendors, directors and
employees), and are reasonable and appropriate for these purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U><B>Disclosure of Agreement</B></U>. Employee will disclose the existence and terms of this
Agreement to any prospective employer, partner, co-venturer, investor or lender prior to entering
into an employment, partnership or other business relationship with such person or entity.
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U><B>Third-Party Agreements and Rights</B></U>. Employee hereby confirms that Employee is not
bound by the terms of any agreement with any previous employer or other party which restricts in
any way Employee&#146;s use or disclosure of information or Employee&#146;s engagement in any business,
except as may be disclosed in <U>Schedule&nbsp;A</U> attached to this Agreement prior to its acceptance
by the Company. Employee has delivered to the Company true and complete copies of any agreements
listed on <U>Schedule&nbsp;A</U>. Employee represents to the Company that Employee&#146;s execution of this
Agreement, Employee&#146;s employment with the Company and the performance of Employee&#146;s proposed duties
for the Company will not violate any obligations Employee may have to any such previous employer or
other party. In Employee&#146;s work for the Company, Employee will not disclose or make use of any
information in violation of any agreements with or rights of any such previous employer or other
party, and Employee will not bring to the premises of the Company any copies or other tangible
embodiments of non-public information belonging to or obtained from any such previous employment or
other party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U><B>Injunction</B></U>. Employee agrees that it would be difficult to measure any damages
caused to the Company which might result from any breach by Employee of the promises set forth in
this Agreement, and that in any event money damages would be an inadequate remedy for any such
breach. Accordingly, Employee agrees that if Employee breaches, or proposes to breach, any portion
of this Agreement, the Company shall be entitled, in addition to all other remedies that it may
have, to an injunction or other appropriate equitable relief to restrain any such breach without
showing or proving any actual damage to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U><B>Binding Effect</B></U>. This Agreement will be binding upon Employee and Employee&#146;s
heirs, executors, administrators and legal representatives and will inure to the benefit of the
Company, any subsidiary of the Company, and its and their respective successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U><B>Enforceability</B></U>. If any portion or provision of this Agreement is to any extent
declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this
Agreement, or the application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, will not be affected thereby, and each portion
and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by
law. In the event that any provision of this Agreement is determined by any court of competent
jurisdiction to be unenforceable by reason of excessive scope as to geographic, temporal or
functional coverage, such provision will be deemed to extend only over the maximum geographic,
temporal and functional scope as to which it may be enforceable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U><B>Entire Agreement</B></U>. This Agreement constitutes the entire agreement between the
Company and Employee with respect to the subject matter hereof, and supersedes all prior
representations and agreements with respect to such subject matter. This Agreement may not be
amended, modified or waived except by a written instrument duly executed by the person against whom
enforcement of such amendment, modification or waiver is sought. The failure of any party to
require the performance of any term or obligation of this Agreement, or the waiver by any party of
any breach of this Agreement, in any particular case will not prevent any subsequent enforcement of
such term or obligation or to be deemed a waiver of any separate or subsequent breach.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U><B>Notices</B></U>. Any notices, requests, demands and other communications provided for by
this Agreement will be sufficient if in writing and delivered in person or sent by registered or
certified mail, postage prepaid, to Employee at the last address which Employee has filed in
writing with the
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company or, in the case of any notice to the Company, at its main offices, to the attention of
the undersigned officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U><B>Governing Law</B></U>. The validity, interpretation, performance and enforcement of this
agreement shall be governed by the laws of the State of Texas, without applying the conflict of
laws provisions thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;<U><B>Arbitration</B></U>. All disputes between Parties in connection with or arising out of
the existence, validity, construction, performance and termination of this Agreement shall be
finally settled by arbitration. The arbitration shall be held in the Dallas, Texas in accordance
with the Rules of the American Arbitration Association by one or more arbitrators appointed in
accordance with the said Rules and the award of such arbitrators shall be final and binding upon
the Parties. The non-prevailing party shall pay for all reasonable costs and expenses incurred in
connection with such dispute, including filing and arbitrator fees as well as the reasonable costs
and expenses of opposing legal counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;<U><B>Escrow</B></U><B>. </B>If Employee is terminated for cause and, within 30&nbsp;days of such
termination, initiates an arbitration proceeding disputing that the termination was for cause, then
the Company will either (a)&nbsp;on each regular pay day of the Company occurring following the
expiration of 10&nbsp;days after such arbitration is commenced, pay into an escrow account an amount
equal to the Severance Payment (net of payroll taxes) that would be due to Employee under the
Employment Agreement if the termination was without cause until six months of such Severance
Payments have been made, or (b)&nbsp;release Employee from any remaining obligations under Section&nbsp;5, 6
or 7 of this Agreement. If the Company fails to make any such escrow payment, then the Company
will be deemed to have released Employee from any further obligation under Section&nbsp;5, 6 or 7 of
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19<B>.&nbsp;</B><U><B>Prior Material Breach</B></U><B>. </B>Notwithstanding anything to the contrary in this
Agreement, the failure of the Company to make any payment to Employee that is required under the
Employment Agreement or this Agreement shall, if such failure is not excused (as provided below)
and continues for five business days after written notice to the Company of such failure, excuse
Employee from complying with Sections&nbsp;5, 6 and 7 of this Agreement. The failure of the Company to
pay Employee under the Employment Agreement shall be excused by Employee&#146;s prior material breach of
this Agreement or the Employment Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EMPLOYEE UNDERSTANDS THAT THIS AGREEMENT AFFECTS IMPORTANT RIGHTS. EMPLOYEE HAS READ IT CAREFULLY
AND IS SATISFIED THAT EMPLOYEE UNDERSTANDS IT COMPLETELY.
</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="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><B>NATURAL HEALTH TRENDS CORP.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>EMPLOYEE</B></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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">/s/ Chris Sharng<BR>
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Gary C. Wallace
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></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">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chris Sharng
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Gary C. Wallace</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">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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">Dated:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


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</DIV>

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Schedule&nbsp;A</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;None&#093;</B>
</DIV>



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</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>d45913exv10w4.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT - CURTIS BROOME
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w4</TITLE>
</HEAD>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B><I>Exhibit&nbsp;10.4</I></B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">April&nbsp;23, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Curtis Broome<BR>
c/o Natural Health Trends Corp.<BR>
2050 Diplomat Drive<BR>
Dallas, Texas 75234

</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Curtis:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I am pleased to set forth the terms and conditions of your employment with Natural Health
Trends Corp. (the &#147;Company&#148;), effective as of April&nbsp;23, 2007 (the &#147;Commencement Date&#148;). We look
forward to your significant contributions toward the achievement of our goals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>The Position</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will continue to serve the Company as President of NHT Global, with the authority and
responsibility to direct, manage and supervise all of the Company&#146;s markets worldwide. You will be
an executive officer of the Company and will report to the President of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Compensation Package</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your base salary is $250,000 per year, subject to a minimum of 3% annual increase per year
every January 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> as approved by the Board, and you will also be eligible to receive
annual incentive compensation, in accordance with the Company&#146;s Annual Incentive Plan. The
incentive bonus will be paid in cash immediately following the completion of the Company&#146;s year end
audit of its financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Housing Allowance</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will also be provided with a housing and living allowance equal to $80,000 per annum for
the period of time during which you reside in Hong Kong. This housing and living allowance may be
evaluated by an independent appraiser retained by the Company from time to time. If any such
appraisal reveals that an adjustment is warranted, this housing and living allowance will be
increased or decreased accordingly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Benefits Package</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your compensation will also include participation in our standard benefits program available
to our U.S. based employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Equity Participation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be eligible for a &#147;staking grant&#148; of restricted shares no later than April&nbsp;23 2007 in
accordance with the Company&#146;s 2005 Stock Option Plan, as amended. The restricted shares will vest
over a three year period on a pro rata quarterly basis following the Commencement Date (unless your
employment with the Company is sooner terminated). You will also be entitled to an annual equity
grant in accordance with the Company Annual Incentive Plan or Annual Equity Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Vacation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to four (4)&nbsp;weeks vacation per annum, in accordance with the Company&#146;s
vacation policy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Severance</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be entitled to Severance Payments (as defined below) if any of the following events
occur: (i)&nbsp;the Company terminates you without Cause (as defined below) during the period
commencing on the date that is thirty (30)&nbsp;days prior to a Change of Control (as defined below)
through and including the date that is 18&nbsp;months following such Change of Control (a &#147;Change of
Control Termination&#148;); (ii)&nbsp;you
</DIV>

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</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Curtis Broome<BR>
April&nbsp;23, 2007<BR>
Page 2 of 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provide the Company with written notice of your resignation for Good Reason (as defined below) and
the Company has not cured such event within 30&nbsp;days following its receipt of such written notice;
or (iii)&nbsp;the Company terminates you without Cause (other than in connection with a Change of
Control as contemplated in (i)&nbsp;above).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, in order to receive any Severance Payments you must execute and deliver to the
Company a full general release of all claims against the Company and its affiliates in form and
substance satisfactory to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used herein, the term:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&#147;Severance Payments&#148; shall mean the continuation of the payment of your base salary then
in effect (plus health and medical insurance coverage as previously provided to you or, if required
in lieu thereof, COBRA payments providing such coverage) for a period of one (1)&nbsp;years following
the termination date, or until such earlier date on which you become engaged in any Competitive
Activity (as defined in the Non-Competition Agreement) or otherwise breach the terms and conditions
of the Non-Competition Agreement (each, a &#147;Severance Payment Termination Event); provided however,
that with respect to a Change of Control Termination, the Employee shall be entitled to receive
Severance Payments equal to your base salary for two (2)&nbsp;years, due and payable to you in a lump
sum 30&nbsp;days after the termination date; ;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Cause&#148; shall include, without limitation, the following: (i)&nbsp;failure or neglect, by you
to perform the duties of your position; (ii)&nbsp;your failure to obey orders given by the Company or
your supervisors; (iii)&nbsp;your misconduct in connection with the performance of any of your duties,
including, without limitation, misappropriation of funds or property of the Company, securing or
attempting to secure personally any profit in connection with any transaction entered into on
behalf of the Company, misrepresentation to the Company, or any violation of law or regulations on
Company premises or to which the Company is subject; (iv)&nbsp;your commission of an act involving moral
turpitude, dishonesty, theft or unethical business conduct, or conduct which impairs or injures the
reputation of, or harms, the Company; (v)&nbsp;your disloyalty, including without limitation, aiding a
competitor; (vi)&nbsp;your failure to devote your full time and best efforts to the
Company&#146;s business and affairs; (vii)&nbsp;your failure to work exclusively for
the Company; (viii)&nbsp;your failure to fully cooperate in any investigation by the Company; (ix)&nbsp;your
material breach of this Agreement or Company rules; (x)&nbsp;any other act of misconduct by you that
could reasonably be expected to have a material adverse effect on the Company, its business,
prospects or reputation; (xi)&nbsp;your abuse of alcohol or other drugs or controlled substances; or
(xii)&nbsp;your resignation (other than for Good Reason).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&#147;Change of Control&#148; shall mean: (i)&nbsp;when any &#147;person&#148; as defined in Section&nbsp;3(a)(9) of the
Securities and Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), and as used in Section 13(d)
and 14(d) thereof, including a &#147;group&#148; as defined in Section 13(d) of the Exchange Act, but
excluding the Company or any subsidiary or any affiliate of the Company or any employee benefit
plan sponsored or maintained by the Company or any subsidiary of the Company (including any trustee
of such plan acting as trustee), becomes the &#147;beneficial owner&#148; (as defined in Rule&nbsp;13d-3 under the
Exchange Act) of securities of the Company representing more than 50% of the combined voting power
of the Company&#146;s then outstanding securities; or (ii)&nbsp;when, during any period of twenty-four (24)
consecutive months, the individuals who, at the beginning of such period, constitute the Board of
Directors (the &#147;Incumbent Directors&#148;) cease for any reason other than death to constitute at least
a majority thereof, provided, however, that a director who was not a director at the beginning of
such 24-month period shall be deemed to have satisfied such 24-month requirement (and be an
Incumbent Director) if such director was elected by, or on the recommendation of or with the
approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either
actually (because they were directors at the beginning of such 24-month period) or through the
operation of this provision; or (iii)&nbsp;the occurrence of a transaction requiring stockholder
approval under applicable state law for the acquisition of the Company by an entity other than the
Company or a subsidiary or an affiliated company of the Company through the purchase of assets, or
by merger, or otherwise; provided however, that none of the foregoing shall constitute a Change of
Control if such transaction, event or occurrence shall be approved by, or consented to, by the
Employee;
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Curtis Broome<BR>
April&nbsp;23, 2007<BR>
Page 3 of 3

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&#147;Good Reason&#148; shall mean the occurrence of any of the following without your written
consent or approval: (A)&nbsp;the assignment to you of duties inconsistent with this Agreement or a
material diminution in your title, authority or base compensation; (B)&nbsp;any change in reporting
responsibility so that you report to any person other than the Board of Directors thereof; (C)&nbsp;any
material breach of the Agreement by this Company or (D)&nbsp;the Company requires you to relocate more
than 50 miles outside of the Dallas-Fort Worth Metroplex metropolitan area.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Non-Competition and Confidentiality Agreement</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees to provide you with confidential and proprietary information so that you
may perform your duties under this Agreement. You agree to enter into a Non-Competition and
Proprietary Rights Assignment Agreement, a form of which is attached hereto as Exhibit&nbsp;A (the
&#147;Non-Competition Agreement&#148;), pursuant to which you will agree that you will keep in confidence the
Company&#146;s confidential information, you will not compete with the Company, and you will not solicit
employees or independent distributors of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Governing Law</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be deemed a contract made under the laws of Texas and for all purposes
shall be construed in accordance with the laws of said State applicable to contracts made and to be
performed within said State.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Arbitration</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All disputes between Parties in connection with arising out of the existence, validity,
construction, performance and termination of this Agreement shall be finally settled by arbitration
under the Federal Arbitration Act. The arbitration shall be held in Dallas, Texas in accordance
with the Rules of the American Arbitration Association for employment disputes by one or more
arbitrators appointed in accordance with the said Rules and the award of such arbitrators shall be
final and binding upon the Parties. The non-prevailing party shall pay for all reasonable costs and
expenses incurred in connection with such dispute, including filing and arbitrator fees as well as
the reasonable costs and expenses of opposing legal counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Employment at Will</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You understand that your employment will be at will, and either you or the Company may
terminate the relationship at any time upon four (4)&nbsp;weeks notice; provided however, that the at
will relationship will not in any way affect the Company&#146;s obligation to pay severance to you as
set forth above under &#147;Severance&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We all look forward to working with you and know that you will do an outstanding job in this
critical role. All of the benefits described in this letter are conditioned upon your acceptance of
this offer. Please indicate your acceptance and agreement with the terms of this letter by signing
below in the space provided and by signing the Non-Competition Agreement.
</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">Sincerely,<BR><BR>
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 valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Chris T. Sharng&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</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="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Acknowledged and Agreed:
</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;</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">/s/ Curtis Broome</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



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</DIV>

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



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><FONT style="font-variant: SMALL-CAPS"><U><B>Exhibit&nbsp;A</B></U></FONT>
</DIV>


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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>NON-COMPETITION AND PROPRIETARY RIGHTS</B></U><BR>
<U><B>ASSIGNMENT AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Employee&#146;s Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Curtis Broome </B>(&#147;Employee&#148;)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: April&nbsp;23, 2007
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In consideration of Employee&#146;s continued employment by or other similar relationship
with Natural Health Trends Corp. (the &#147;Company&#148;) and in consideration for and as a
condition to the transactions contemplated by that certain Employment Agreement dated
as of the date hereof by and between the Company and Employee (the &#147;Employment
Agreement&#148;), including without limitation the Company&#146;s promise to provide Employee
with confidential information, Employee hereby agrees with the Company as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U><B>Confidential Information</B></U>. During the term of this Agreement and in the course of
Employee&#146;s performance of services for the Company, the Company agrees to provide Employee with
confidential or competitively sensitive information of the Company, which may include information
of a third party with which the Company has a business relationship, relating to the Company&#146;s or
such third party&#146;s current or prospective business, research and development activities, products,
technology, strategy, organization and/or finances (collectively, &#147;Confidential Information&#148;).
Such Confidential Information, which may be disclosed orally or in writing, shall include, without
limitation, Technology (as defined in Section&nbsp;2(a)), Work Product (as defined in Section&nbsp;2(a)),
plans, strategies, negotiations, customer or prospect identities, market analyses, projections,
forecasts, cost and performance data, sales data, financial statements, price lists, pre-release
information regarding the Company&#146;s products, personnel lists and data, and all documents and other
materials (including any notes, drawings, reports, manuals, notebooks, summaries, extracts or
analyses), whether in written or electronic form, that disclose or embody such Confidential
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidential Information shall not include information that is now, or hereafter becomes,
through no act or failure to act on Employee&#146;s part, generally known to the public; information
that was rightfully in Employee&#146;s possession without confidentiality restriction prior to the
Company&#146;s disclosure to Employee; information that was rightfully obtained by Employee from a third
party who has the right, without obligation to the Company, to transfer or disclose such
information; or information which Employee is required to disclose pursuant to judicial order,
provided that in the latter case Employee shall promptly notify the Company and take reasonable
steps to assist the Company in protecting the Company&#146;s rights prior to disclosure. At all times,
both during Employee&#146;s relationship with the Company and after the termination thereof, Employee
will keep all Confidential Information in strict confidence; will not use Confidential Information
except for the purpose of providing services to the Company; and will not divulge, publish,
disclose or communicate Confidential Information, in whole or in part, to any third party.
Employee further agrees that Employee will not allow any unauthorized person access to Confidential
Information, either before or after the termination of this Agreement, and will take all action
reasonably necessary and satisfactory to the Company to protect the confidentiality of Confidential
Information. Employee agrees not to reproduce or copy by any means Confidential Information,
except as reasonably required to accomplish the purposes of the Employment Agreement, and further
agrees not to remove any proprietary rights legend from such Confidential Information or copies
thereof made in accordance
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">with this Agreement. Employee will not erase, discard or destroy any tangible or electronic
materials that disclose or embody Confidential Information without specific instructions from the
Company to do so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of Employee&#146;s services for any reason, or upon demand by the Company at any
time, the Company&#146;s agreement to provide, and Employee&#146;s right to use, Confidential Information
shall immediately terminate, and Employee shall return promptly to the Company, or destroy, at the
Company&#146;s option, all tangible and electronic materials that disclose or embody Confidential
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U><B>Assignment of Work Product</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For purposes of this Agreement: &#147;Technology&#148; shall mean all ideas, concepts, inventions,
discoveries, developments, creations, methods, techniques, processes, machines, products, devices,
compositions of matter, improvements, modifications, designs, systems, specifications, schematics,
formulas, mask works, works of authorship, software, algorithms, data and know-how, whether or not
patentable or copyrightable, and all related notes, drawings, reports, manuals, notebooks,
summaries, memoranda and other documentation; &#147;Intellectual Property Rights&#148; shall mean all
worldwide intellectual property rights including, without limitation, all rights relating to the
protection of inventions, including patents, patent applications and certificates of invention; all
rights associated with works of authorship, including copyrights and moral rights; all rights
relating to the protection of trade secrets and confidential information; all rights related to the
protection of trademarks, logos and service marks; any rights analogous to those set forth herein,
and all other proprietary rights related to intangible property; and &#147;Work Product&#148; shall mean any
and all Technology made, conceived, designed, created, discovered, invented or reduced to practice
by Employee during the term of this Agreement that (i)&nbsp;results from Employee&#146;s performance of
services for the Company, (ii)&nbsp;is related to the business of the Company or (iii)&nbsp;is based upon the
use of Confidential Information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Employee agrees to promptly disclose to the Company in writing all Work Product upon the
development, conception or creation thereof by Employee, as well as, at any time, upon the request
of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Employee agrees that all Work Product shall be the sole and exclusive property of the
Company, and does hereby irrevocably and unconditionally transfer and assign to the Company, its
successors and assigns, all right, title and interest Employee may have or acquire in or to any
Work Product, including all Intellectual Property Rights therein. Employee further agrees that any
and all works of authorship created, authored or developed by Employee hereunder shall be deemed to
be &#147;works made for hire&#148; within the meaning of the United States copyright law and, as such, all
rights therein including copyright shall belong solely and exclusively to the Company from the time
of their creation. To the extent any such work of authorship may not be deemed to be a work made
for hire, Employee agrees to, and does hereby, irrevocably and unconditionally transfer and assign
to the Company all right, title, and interest including copyright in and to such work.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon request by the Company, Employee agrees to execute and deliver all such documents,
certificates, assignments and other writings, and take such other actions, as may be necessary or
desirable to vest in the Company ownership in all Work Product as provided in this Section&nbsp;2,
including, but not limited to, the execution and delivery of all applications for securing all
</DIV>


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</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">United States and foreign patents, copyrights and other Intellectual Property Rights relating to
Work Product. The Company shall reimburse Employee for any reasonable expenses incurred by
Employee at the Company&#146;s request to secure title or legal protection on the Company&#146;s behalf for
any such Work Product. In the event that the Company is unable to secure Employee&#146;s signature to
any document, or if Employee otherwise fails to take any action deemed necessary by the Company to
protect or maintain the Company&#146;s ownership of Work Product and Intellectual Property Rights
therein, then the Company may, and Employee hereby irrevocably designates and appoints the Company
and its duly authorized officers and agents as Employee&#146;s agent and attorney-in-fact to act on and
in Employee&#146;s behalf and stead to, execute and file any such applications and perform all other
lawfully permitted acts to perfect Employee&#146;s assignment and transfer of ownership rights to the
Company with the same legal force and effect as if executed, filed and performed by Employee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;For purposes of this Section&nbsp;2(e), &#147;Background Technology&#148; shall mean Technology owned by
or licensed to Employee as of the date that Employee was first employed by the Company or developed
or otherwise obtained by Employee following the that Employee was first employed by the Company
independently of the performance of services hereunder by Employee. The Company acquires no rights
in the Background Technology, except as specifically provided in this Agreement and, as between the
parties, Employee retains all rights therein. Employee hereby grants to Company a royalty-free,
worldwide, non-exclusive, perpetual, sublicensable and irrevocable right and license to use, for
all purposes in Company&#146;s business, Background Technology that has been disclosed by Employee to
Company or that is embodied within or related to the use, operation or improvement of Work Product
created by Employee in connection with Employee&#146;s performance of services for the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U><B>Representation</B></U>. Employee hereby represents to the Company that the Work Product
Employee creates under the Employment Agreement will be original, and that Employee&#146;s performance
of services under the Employment Agreement and the Company&#146;s use of Employee&#146;s Work Product will
not breach any agreement Employee has with any third party or the intellectual property rights or
other rights of any third party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U><B>Return of Materials</B></U>. All documents, records, apparatus, equipment and other
physical property, whether or not pertaining to Confidential Information, which are furnished to
Employee by the Company or are produced by Employee in connection with Employee&#146;s services will be
and remain the sole property of the Company. Employee will return to the Company all such
materials and property as and when requested by the Company. In any event, Employee will return
all such materials and property immediately upon termination of Employee&#146;s services for any reason.
Employee will not retain any such material or property or any copies thereof upon such
termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U><B>Competitive Activities</B></U>. From the date hereof until the six (6)&nbsp;month anniversary
of the later of the date on which Employee no longer is employed by the Company, serves as a
consultant to the Company or serves as a member of the Board of Directors of the Company (the
&#147;Non-Compete Restricted Period&#148;), Employee will not, directly or indirectly, whether as owner,
partner, shareholder, director, agent, employee, co-venturer, consultant, independent distributor
or otherwise, without the written consent of the Company, engage, participate, invest in, or
provide services to, any multi-level marketing business that indirectly or directly competes with
the Company in recruiting for independent distributors (collectively, the &#147;Competitive
Activities&#148;). The prohibition set forth in this Section&nbsp;5 shall not restrict Employee from (a)
owning or holding up to two percent (2%) of the shares of stock of any company registered or sold
on any recognized stock exchange or sold in the over-the-counter
</DIV>

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</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">market or (b)&nbsp;providing services that do not involve management, marketing or sales or
consulting with the management, marketing or sales personnel. Employee understands and agrees that
the restrictions set forth in this Section&nbsp;5 are intended to protect the Company&#146;s reasonable
competitive business interests, its interest in its Confidential Information and established and
prospective customer relationships and goodwill, and agree that such restrictions are reasonable
and appropriate for this purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U><B>Nonsolicitation of Customers and Distributors</B></U>. During the Non-Compete Restricted
Period plus six (6)&nbsp;months (the &#147;Nonsolicitation Period&#148;), Employee will not, in any capacity,
directly or indirectly:
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>solicit business or patronage of any customer or prospective
customer (collectively, &#147;Customer&#148;), or distributor or prospective distributor
(collectively, &#147;Distributor&#148;) of the Company in connection with any Competitive
Activity;</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="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>divert, entice, or otherwise take away from the Company the
business or patronage of any Customer or Distributor, or attempt to do so;</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="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>solicit, induce or assist any Customer, Distributor or supplier
to terminate or reduce its relationship 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>assist with the provision of any services to a Customer or
Distributor (except in Employee&#146;s capacity as an employee of 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>refer a Customer, Distributor or supplier to another person
engaged (or to be engaged) in Competitive Activities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U><B>Nonsolicitation of Employees</B></U>. During the Nonsolicitation Period, Employee will
not:
</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="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>hire or employ, directly or indirectly through any enterprise
with which Employee is associated, any current employee of the Company or any
individual who had been employed by the Company within one (1)&nbsp;year preceding
Employee&#146;s termination (other than persons whose employment by the Company was
terminated by or at the request of 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="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>recruit, solicit or induce (or in any way assist another person
or enterprise in recruiting, soliciting or inducing) any employee or director of
the Company to terminate his or her employment or other relationship with the
Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U><B>Acknowledgments</B></U>. Employee acknowledges and agrees that the restrictions set forth
in this Agreement are intended to protect the Company&#146;s interest in Confidential Information and
its commercial relationships and goodwill (with its Customers, Distributors, vendors, directors and
employees), and are reasonable and appropriate for these purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U><B>Disclosure of Agreement</B></U>. Employee will disclose the existence and terms of this
Agreement to any prospective employer, partner, co-venturer, investor or lender prior to entering
into an employment, partnership or other business relationship with such person or entity.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U><B>Third-Party Agreements and Rights</B></U>. Employee hereby confirms that Employee is not
bound by the terms of any agreement with any previous employer or other party which restricts in
any way Employee&#146;s use or disclosure of information or Employee&#146;s engagement in any business,
except as may be disclosed in <U>Schedule&nbsp;A</U> attached to this Agreement prior to its acceptance
by the Company. Employee has delivered to the Company true and complete copies of any agreements
listed on <U>Schedule&nbsp;A</U>. Employee represents to the Company that Employee&#146;s execution of this
Agreement, Employee&#146;s employment with the Company and the performance of Employee&#146;s proposed duties
for the Company will not violate any obligations Employee may have to any such previous employer or
other party. In Employee&#146;s work for the Company, Employee will not disclose or make use of any
information in violation of any agreements with or rights of any such previous employer or other
party, and Employee will not bring to the premises of the Company any copies or other tangible
embodiments of non-public information belonging to or obtained from any such previous employment or
other party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U><B>Injunction</B></U>. Employee agrees that it would be difficult to measure any damages
caused to the Company which might result from any breach by Employee of the promises set forth in
this Agreement, and that in any event money damages would be an inadequate remedy for any such
breach. Accordingly, Employee agrees that if Employee breaches, or proposes to breach, any portion
of this Agreement, the Company shall be entitled, in addition to all other remedies that it may
have, to an injunction or other appropriate equitable relief to restrain any such breach without
showing or proving any actual damage to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U><B>Binding Effect</B></U>. This Agreement will be binding upon Employee and Employee&#146;s
heirs, executors, administrators and legal representatives and will inure to the benefit of the
Company, any subsidiary of the Company, and its and their respective successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U><B>Enforceability</B></U>. If any portion or provision of this Agreement is to any extent
declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this
Agreement, or the application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, will not be affected thereby, and each portion
and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by
law. In the event that any provision of this Agreement is determined by any court of competent
jurisdiction to be unenforceable by reason of excessive scope as to geographic, temporal or
functional coverage, such provision will be deemed to extend only over the maximum geographic,
temporal and functional scope as to which it may be enforceable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U><B>Entire Agreement</B></U>. This Agreement constitutes the entire agreement between the
Company and Employee with respect to the subject matter hereof, and supersedes all prior
representations and agreements with respect to such subject matter. This Agreement may not be
amended, modified or waived except by a written instrument duly executed by the person against whom
enforcement of such amendment, modification or waiver is sought. The failure of any party to
require the performance of any term or obligation of this Agreement, or the waiver by any party of
any breach of this Agreement, in any particular case will not prevent any subsequent enforcement of
such term or obligation or to be deemed a waiver of any separate or subsequent breach.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U><B>Notices</B></U>. Any notices, requests, demands and other communications provided for by
this Agreement will be sufficient if in writing and delivered in person or sent by registered or
certified mail, postage prepaid, to Employee at the last address which Employee has filed in
writing with the
</DIV>

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</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company or, in the case of any notice to the Company, at its main offices, to the attention of
the undersigned officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U><B>Governing Law</B></U>. The validity, interpretation, performance and enforcement of this
agreement shall be governed by the laws of the State of Texas, without applying the conflict of
laws provisions thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;<U><B>Arbitration</B></U>. All disputes between Parties in connection with or arising out of
the existence, validity, construction, performance and termination of this Agreement shall be
finally settled by arbitration. The arbitration shall be held in the Dallas, Texas in accordance
with the Rules of the American Arbitration Association by one or more arbitrators appointed in
accordance with the said Rules and the award of such arbitrators shall be final and binding upon
the Parties. The non-prevailing party shall pay for all reasonable costs and expenses incurred in
connection with such dispute, including filing and arbitrator fees as well as the reasonable costs
and expenses of opposing legal counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;<U><B>Escrow</B></U><B>. </B>If Employee is terminated for cause and, within 30&nbsp;days of such
termination, initiates an arbitration proceeding disputing that the termination was for cause, then
the Company will either (a)&nbsp;on each regular pay day of the Company occurring following the
expiration of 10&nbsp;days after such arbitration is commenced, pay into an escrow account an amount
equal to the Severance Payment (net of payroll taxes) that would be due to Employee under the
Employment Agreement if the termination was without cause until six months of such Severance
Payments have been made, or (b)&nbsp;release Employee from any remaining obligations under Section&nbsp;5, 6
or 7 of this Agreement. If the Company fails to make any such escrow payment, then the Company
will be deemed to have released Employee from any further obligation under Section&nbsp;5, 6 or 7 of
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19<B>.&nbsp;</B><U><B>Prior Material Breach</B></U><B>. </B>Notwithstanding anything to the contrary in this
Agreement, the failure of the Company to make any payment to Employee that is required under the
Employment Agreement or this Agreement shall, if such failure is not excused (as provided below)
and continues for five business days after written notice to the Company of such failure, excuse
Employee from complying with Sections&nbsp;5, 6 and 7 of this Agreement. The failure of the Company to
pay Employee under the Employment Agreement shall be excused by Employee&#146;s prior material breach of
this Agreement or the Employment Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EMPLOYEE UNDERSTANDS THAT THIS AGREEMENT AFFECTS IMPORTANT RIGHTS. EMPLOYEE HAS READ IT CAREFULLY
AND IS SATISFIED THAT EMPLOYEE UNDERSTANDS IT COMPLETELY.
</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="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>NATURAL HEALTH TRENDS CORP.</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>EMPLOYEE</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <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">&nbsp;</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">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Chris Sharng
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Curtis Broome</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: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&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">Name: Chris Sharng<BR>
Title:&nbsp;&nbsp;&nbsp;President
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Curtis Broome</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <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">Dated:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated:</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: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


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

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

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

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Schedule&nbsp;A</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;None&#093;</B>
</DIV>



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


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