PROMISSORY NOTE

THESE SECURITIES AND THE SHARES ISSUABLE UPON CONVERSION HEREOF, HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN
OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE CORPORATION THAT SUCH
REGISTRATION IS NOT REQUIRED.


$100,000                                                         April 27, 2001


                  FOR VALUE RECEIVED, NATURAL HEALTH TRENDS CORP., a Florida
corporation, having an office at 2161 Hutton Drive, Suite 126, Carrollton, Texas
75006 (the "Maker"), hereby promises to pay to the order of Augusta Street LLC,
(the "Payee"), at the office of the Payee or at such other place as the Payee of
this Note may designate in writing from time to time, the principal sum of
$100,000 together with interest thereon at the rate of 10% per annum on demand.

         The following shall be deemed "Events of Default" hereunder:

         (a) If any payment hereunder shall not be made when due;

         (b) if the Maker shall fail to perform or comply with any of the other
         terms, covenants, or conditions of this Note;

         (c) if Maker ceases doing business as a going concern, or makes or
         sends notice of an intended bulk sale or makes an assignment for the
         benefit of creditors;

         (d) if any proceedings are commenced by or against Maker under any
         bankruptcy, reorganization, arrangement, insolvency, readjustment of
         debt, receivership, liquidation or dissolution law or statute of any
         jurisdiction, whether now or hereafter in effect; or

         (e) if a receiver, trustee or conservator be appointed for any of
         Maker's property.

                  Unless the Payee otherwise elects, in the Payee's sole
discretion, this Note shall automatically become immediately due and payable,
without further notice or demand, upon the occurrence of any event of default
hereinabove described. Upon the acceleration of the entire or any portion of the
unpaid balance of this Note, the holder, without prejudice to any other rights,
is authorized to proceed against Maker and shall not be required to have
recourse to any security given for payment of this Note.

<PAGE>

                  In the event that this Note is not paid within five (5) days
of demand, this Note shall bear additional interest at the rate of 1.5% per
month.

                  Nothing contained in this Note shall require the Maker to pay
interest at a rate exceeding the maximum rate permitted by applicable law. If
the amounts payable to the Payee on any date shall exceed the maximum
permissible amount, such amounts shall be automatically reduced to the maximum
permissible amount, and the payments for any subsequent period, to the extent
less than that permitted by applicable law, shall, to that extent, be increased
by the amount of such reduction. In the event that the period from the due date
of such payment is not long enough to cause the payments due hereunder not to
exceed the maximum amount permitted by applicable law, then the Payee at its
option shall have the right (i) to extend the amount of time for such payment
such that the payments shall not be deemed to exceed the maximum amount
permitted by applicable law or (ii) to reduce the amounts payable under this
Note.

                  Except as otherwise expressly provided herein, Payee hereby
waives presentment, demand for payment, dishonor, notice of dishonor, protest
and notice of protest.

                  Except as otherwise provided herein at the option of Maker,
the unpaid balance of this Note may be prepaid in whole or in part, from time to
time, without penalty or premium.

                  The liability of Maker hereunder shall be unconditional. No
act, failure or delay by the Payee hereof to declare a default as set forth
herein or to exercise any right or remedy it may have hereunder, or otherwise,
shall constitute a waiver of its rights to declare such default or to exercise
any such right or remedy at such time as it shall determine in its sole
discretion.

                  Maker further agrees to pay all costs of collection, including
a reasonable attorney's fee and all costs of levy or appellate proceedings or
review, or both, in case the principal or any interest thereon is not paid at
the respective maturity thereof, or in case it becomes necessary to protect the
security hereof, whether suit be brought or not.

                  Any and all notices or other communications required or
permitted to be given under this Note shall be in writing and shall be deemed to
have been duly given upon personal delivery or the mailing thereof by certified
or registered mail (a) if to Maker, addressed to it at its address set forth
above; and (b) if to Payee, addressed to it at its address set forth above or at
such other address any person or entity entitled to receive notices may specify
by written notice given as aforesaid.

                  This Note may not be amended, modified, supplemented or
terminated orally.

                  This Note shall be binding upon Maker, its legal
representatives, successors or assigns and shall inure to the benefit of Payee
and its successors, endorsees, assigns or holder(s) in due course.

<PAGE>

                  The Payee of this Note is entitled, at its option, to convert
at any time, the principal amount of this Note at a conversion price equal to
seventy-five percent (75%) of the five day average closing bid price of the
Common Stock, as reported by The NASDAQ SmallCap Market, or other applicable
exchange, for the five trading days immediately preceding the applicable
Conversion Date (the "Conversion Price"). Conversion shall be effectuated by
surrendering the Note to be converted to the Maker with the form of conversion
notice attached hereto as Exhibit A (the "Conversion Notice"), executed by the
Payee of the Note evidencing the Payee's intention to convert this Note or a
specified portion (as above provided) hereof, and accompanied, if required by
the Maker. by proper assignment hereof in blank. No fractional shares or scrip
representing fractions of shares will be issued on conversion, but the number of
shares issuable shall be rounded to the nearest whole share. The date on which
notice of conversion is given (the "Conversion Date") shall be deemed to be the
date on which the Payee has delivered this Note, with the Conversion Notice duly
executed, to the Maker. Facsimile delivery of the Conversion Notice shall be
accepted by the Maker. Certificates representing shares of Common Stock upon
conversion will be delivered within five (5) business days from the Conversion
Date.

                  The shares to be issued pursuant to this Note shall contain
unlimited piggyback registration rights. Payee's piggyback registration rights
shall commence on the date hereof and shall terminate three (3) years after the
date hereof. The Maker shall bear the costs of such registrations. In the event
of the sale of the shares contemplated hereunder, Payee shall pay any and all
underwriting commissions and non-accountable expenses of any underwriter
selected by Payee to sell the common stock (the "Registrable Securities"). As to
Payee's registration rights, the Maker agrees to qualify or register the
Registrable Securities in such additional states as are reasonably requested by
Payee and the Maker shall bear all costs and expenses, of the qualification of
registration of the Registrable Securities in such additional states as are
reasonably requested by the Payee. In no event shall the Maker be required to
register the Registrable Securities in more than five (5) states or in a state
in which such registration would cause (i) the Maker to be obligated to do
business in such state, or (ii) the principal stockholders of the Maker to be
obligated to escrow any of their securities.

                  The certificates for the shares of Common Stock shall bear the
following legend:

                  THESE SECURITIES (THE "SECURITIES") HAVE NOT BEEN REGISTERED
                  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
                  ACT"), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD
                  OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE
                  REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF
                  COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE CORPORATION THAT
                  SUCH REGISTRATION IS NOT REQUIRED.

<PAGE>

                  The Payee of the Note, by acceptance hereof, agrees that this
Note is being acquired for investment and that such Payee will not offer, sell
or otherwise dispose of this Note or the shares of Common Stock issuable upon
conversion thereof except under circumstances which will not result in a
violation of the Act or any applicable state Blue Sky or foreign laws or similar
laws relating to the sale of securities.

                  This Note shall be governed by and construed in accordance
with the laws of the State of Texas, without giving effect to principles of
conflicts of law. By signing below, Maker hereby irrevocably submits to the
jurisdiction of such state and to service of process by certified or registered
mail at Maker's last known address. No provision of this Note may be changed
unless in writing signed by the Payee and Maker.

                  IN WITNESS WHEREOF, Maker has caused this Note to be duly
executed and delivered by its duly authorized representative as of the date and
year first above written.



                                                   NATURAL HEALTH TRENDS CORP.

                                                   By: ________________________

                                                       Name: Mark Woodburn
                                                       Title: CFO