Short Form Licensing Agreement
                                January 28, 2000

Natural Health Trends Corp. ("NHTC"), a Florida corporation with headquarters in
Longmont, CO, owns certain rights to (1) a patented topical analgesic (US Patent
#  5,032,400)  and  (2)  other  intellectual  property  related  to the  topical
analgesic  including but limited to the  registered  trademark,  Natural  Relief
12229)  (collectively,  the  "Product").  NHTC and GLI, a  Delaware  corporation
located at 38 High Acre Road,  Weston,  CT, wish to enter into an  agreement  to
license  Product  rights to GLI (the  "Agreement")  on the  following  terms and
conditions:

Rights  Granted:  NHTC hereby  licenses to GLI worldwide  rights to manufacture,
distribute  and sell the Product in all channels of  distribution  and fields of
use excluding  distribution  and sales to medical doctors (the "Rights").  GLI's
Rights  include but are not limited to the right to distribute  and sell Product
to chiropractors,  massage  therapists,  retail outlets,  and consumers.  All of
GLI's rights are exclusive  except for sales through retail  outlets (i.e.  drug
stores,  health food stores,  etc) which  rights are granted on a  non-exclusive
basis as further defined below.  NHTC also grants to GLI exclusive rights to the
trademark  Natural  Relief 1222.  NHTC also agrees to assign to GLI all existing
Product   customers  and  distribution   deals  including  but  limited  to  the
Chattanooga Distribution Agreement for Natural Relief 1222.

Reserved  Rights:  NHTC  explicitly  reserves (1)  exclusive  Product  sales and
distribution  rights to medical  doctors,  (2)  non-exclusive  Product sales and
distribution rights to chiropractors  operating out of doctor's offices, and (3)
non-exclusive  Product  sales and  distribution  rights to retail  outlets  such
health food stores, drug stores, etc. NHTC warrants that its use of the Reserved
Rights will be limited to making one additional agreement with a third party for
exploitation of the Reserved Rights.  The third party agreement will not include
any  rights  to the  trademark  Natural  Relief  1222  which  has been  licensed
exclusively to GLI. GLI warrants and  represents  that it will not distribute or
sell Product to medical doctors.

Royalty: GLI agrees to pay NHTC 5% of GLI's Net Sales resulting from the sale of
the Product  (the  "Royalty).  For the year 2005 the Royalty  will be reduced to
3.5%.  For the year 2006 and thereafter the Royalty will be reduced to 2.5%. GLI
will  report  and pay  Royalties  to NHTC  within  45 days of the  close of each
calendar  quarter.  The first Royalty  report will be made at the end of the 3rd
quarter of the year 2000. Net Sales are defined as gross sales proceeds actually
received by GLI less  discounts,  allowances,  and bad debt.  NHTC will have the
right to audit GLI's Net Sales  annually.  In the event that GLI's Net Sales are
understated by 10% or more, GLI will bare the cost of the audit.


Minimums: From the date of this Agreement through the year 2004, GLI agrees that
annual earned Royalties will be no less than defined minimum  Royalties in order
to retain exclusive rights to the Product. The Minimum Royalty for the year 2000
is $1 1,000 of which $8000 will be paid when  Royalties  are reported for the 3d
quarter  of 2000,  and the  balance  would be paid  when  earned  Royalties  are
reported for the 4h quarter of 2000.  In 200 1, the Minimum  Royalty is $12,000,
which will be paid in equal  quarterly  installments  when earned  Royalties are
reported.  In years 2002,  2003 and 2004, the N4inimum  Royalties is $50,000 per
year  and will be paid in  quarterly  installments  when  earned  royalties  are
reported. Thereafter there will be no Minimum Royalty. For example, if Net Sales
for the year 2002 were $500,000  dollars.  The earned  Royalties  would be 5% of
$500k or  $25,000.  This is less than the $50k  Minimum  Royalty,  so that total
Royalties paid for the year 2002 would be $50,000.

GLI  Obligations:  GLI agrees to pay Royalties on time as described  above.  GLI
agrees to actively market the Product going forward. The principals of GLI agree
to make their best  efforts to market the Product  going  forward.  Initially no
less  than one of the  principals  of GLI will  work  full  time to  market  the
Product.  If GLI  breaches  any of its  obligations,  GLI will have 60 days from
receipt of written notice from NHTC to cure the breach of the obligation. If GLI
fails to cure the breach,  GLI's exclusive rights to the Product will terminate,
however,   GLI  will  have  option  to  continue   selling  the  Product  on  an
non-exclusive basis.

<PAGE>

NHTC Obligations:  NHTC agrees to (1) maintain the intellectual property related
to the Product,  (2) defend claims related the underlying  rights to the Product
and its intellectual  property,  and (3) carry product liability insurance of at
least  $3,000,000  and  name  GLI  as  additionally   insured.  If  any  of  the
intellectual  property expires, or if NHTC fails to defend the underlying rights
to the  Product,  or if  NHTC  fails  to  carry  insurance  with  GLI  named  as
additionally insured, then NHTC will have 60 days from receipt of written notice
from GLI to cure the breach of the obligation. If NHTC fails to cure the breach,
GLI will have no Anther obligation to pay Royalties.

Mutual  Indemnities:  GLI agrees to indemnify  NHTC from all claims arising from
GLI's  negligence  related to GLI's  marketing and selling of the Product.  NHTC
agrees to indemnify GLI from all claims related to the underlying  rights to the
Product including but not limited to the patent and intellectual property claims
related to the Product.

Inventory:  NHTC  agrees  to  provide  GLI  with a list  of all  raw  materials,
components,  packaging, finished good and other inventory related to the Product
(the "Inventory'). NHTC hereby authorizes GLI to use the Inventory in connection
with its plans to manufacture, distribute and sell the Product. NHTC will notify
holders of  Inventory  to grant GLI access to the  Inventory.  GLI agrees to pay
NHTC 100% of its actual cost for the  Inventory,  if the  Inventory  is actually
used and sold by GLI. GLI will not be obligated to pay NHTC for  Inventory  that
is not used,  or is not sold or  merchantable.  GLI will pay NHTC for  Inventory
used and sold within 30 days of shipment of the finished Product.

Customer Lists. NHTC agrees to provide GLI with a list of all Product customers.
NHTC further agrees to forward all Product inquiries to GLI on a timely basis.

Sale of  Underlying  Rights to Product:  If NHTC  decides to sell its  ownership
rights to ft Product,  GLI will have the right of first  negotiation to purchase
the rights to the Product and NHTC agrees to negotiate terms of sale with GLI in
good faith.

Governing Law: New York. The parties agree to arbitrate disputes.

Notices: All notices should be sent to:

NHTC
c/o Mark Woodburn
380 Lashley Street
Longmont, CO 80501
303-682-4236 Fax

GLI
c/o Joe Grace
38 High Acre Road
Weston, CT 06883
203-222-9082 Fax

13. Modifications to the Agreement: All changes must be made in writing.

This represents the entire binding agreement between the parties;  however, NHTC
may replace this Agreement with a long form agreement at their expense.

Agreed to and Accepted:                            Agreed to and Accepted:
/s/ Mark D. Woodburn  01/28/00                    /s/ Joe Grace        01/28/00
Mark D. Woodburn        Date                          Joe Grace          Date
CFO                                                   President
NHTC                                                  GLI