Document:

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                AMENDMENT NO. 1 TO FOUNDER COMPENSATION AGREEMENT

         AMENDMENT NO. 1 to the Founder Compensation Agreement (this
"Amendment"), dated as of April 8, 2001, by and between Lexxus International,
Inc., a Delaware corporation ("Lexxus"), Natural Health Trends Corp, a Florida
corporation ("NHTC"), Rodney Sullivan, and Pam Sullivan (collectively referred
to herein as "Sullivan"), Michael Bray ("Bray") and Jeff Provost ("Provost").

         WHEREAS, Lexxus, NHTC, Sullivan, Bray and Provost are parties to that
certain Founders Compensation Agreement, dated as of April 8, 2001, a copy of
which is attached hereto as Exhibit A (the "Existing Agreement") (capitalized
terms used herein and not otherwise defined shall have the respective meanings
sets forth in the Existing Agreement); and

         WHEREAS, Lexxus, NHTC, Sullivan, Bray and Provost have agreed to amend
the terms of the cash compensation payable to Sullivan, Bray and Provost set
forth in the Existing Agreement.

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereby agree as follows:

         1. Effective as of the date hereof, the Existing Agreement is hereby
amended as follows:

                  A. All references to services previously provided to Lexxus
         and/or NHTC by Sullivan, Bray and Provost shall be deleted in its
         entirety.

                  B. The following new paragraph (d) shall be inserted under
         Item 1. Cash Compensation:

                           (d) The obligation of Lexxus to pay Sullivan, Bray
                  and Provost as set forth in this Section 1 is contingent upon
                  each of Sullivan, Bray and Provost providing at least eighty
                  (80) hours of consulting services (the "minimum amount of
                  consulting services") to NHTC or Lexxus during each calendar
                  year. The consulting services shall include recruiting of new
                  distributors, training of distributors, support and assistance
                  at associate meetings, or other similar activities requested
                  by NHTC or Lexxus. Refusal or failure by any party to render
                  the minimum amount of consulting services by December 31st of
                  each calendar year will result in forfeiture of the cash
                  compensation due to them for the succeeding calendar year.
                  Payments of the cash consideration

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                  shall be reinstated at the end of the calendar year during
                  which the party provided the minimum amount of consulting
                  services required from prior years in addition to completion
                  of the minimum amount of consulting services for the current
                  year.

                  C. Section 7 of the Existing Agreement shall be deleted in its
         entirety.

         2. Amendment. Lexxus, NHTC, Sullivan, Bray and Provost each agree that
this Amendment is not intended and shall not be deemed as an amendment of any
other term, condition, covenant or obligation or other provision of the Existing
Agreement, all of which shall remain in full force and effect.

         3. Assignment. Except to the extent provided herein, no party hereto
may assign (by operation of law or otherwise) this Amendment or any of its
rights, interests, or obligations hereunder without the prior written consent of
the other party in its sole and absolute discretion.

         5. Headings. The headings in this Amendment are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         6. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Texas without regard to principles of
conflicts of law.

         7. Counterparts. This Amendment may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                         (Signatures on following page)

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Amendment as of the date first written above.

         LEXXUS INTERNATIONAL, INC.                  NATURAL HEALTH TRENDS CORP.

         By: /s/ Mark Woodburn                       By: /s/ Mark Woodburn
            --------------------------                  -----------------------
         Name:  Mark Woodburn                        Name: Mark Woodburn
         Title: President                            Title: President

         /s/ Michael Bray                            /s/ Rodney Sullivan
         -----------------------------               --------------------------
         Michael Bray                                Rodney Sullivan

         /s/ Jeff Provost                            /s/ Pam Sullivan
         -----------------------------               --------------------------
         Jeff Provost                                Pam Sullivan

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                                                                   EXHIBIT 10.26

                                ROYALTY AGREEMENT

      This Royalty Agreement is entered into by and between Natural Health
Trends Corp. ("the Company") and Steve Francisco and Dan Catto (individually
"Distributor" and collectively "Distributors") effective the 1st day of March
2005 (the "Effective Date") in which the parties agree as follows:

1.0 RECITALS

1.1 The Company is an international direct selling organization and operates,
among other ways, through its wholly owned subsidiary Lexxus International,
Inc., which distributes certain cosmetic, quality of life, and other products
through independent distributors worldwide,

1.2 Distributors are each independent distributors of the Company and have had
and continue to have substantial knowledge and experience in distributing the
Company's products throughout various international markets,

1.3 The parties desire to establish a monthly royalty payment schedule (the
"Royalty Payments") to compensate Distributors for certain marketing and
distribution efforts undertaken,

1.4 The Company entered into an oral agreement (the "Oral Agreement") with the
Distributors on or about December 1, 2003 (the "Inception Date"). This Royalty
Agreement is intended to clarify and memorialize the Oral Agreement from its
Inception Date.

1.5 Therefore, for good and valuable consideration, including the promises made
by each party and the acts taken in accordance therewith, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

2.0 DEFINITIONS

2.1 "KGC" as used herein shall refer to KGC Networks Pte. Ltd., a private
company organized and incorporated in and under the laws of the Republic of
Singapore of which the Company is a 51% owner and Bannks Foundation is a 49%
owner of the issued and outstanding capital stock.

2.2 "The March 17, 2004 Agreement" as used herein shall refer to that certain
agreement dated March 17, 2004 and effective as of November 17, 2003 by and
between the Company and Bannks Foundation pertaining to the ownership, control,
and management of KGC.

3.0 ROYALTY

3.1 Between the Inception and the Effective Dates, the Royalty Payments shall be
as presented in Exhibit A. From the Effective Date on, the Company shall pay
each Distributor 5% of KGC's monthly net sales but no more than $15,000.00 per
month as royalties, until such obligation to pay royalties shall terminate or
cease as provided in this Agreement.

3.2 The Royalty Payments to Distributors shall continue each month until the
occurrence of any one or more of the following acts, events or conditions
(hereinafter "Event(s) of Royalty Termination"):

      3.2.1 KGC shall commit a material breach of contract or otherwise default
in its obligations to the Company under the March 17, 2004 Agreement,

      3.2.2 KGC shall become bankrupt (or seek protection from creditors),
insolvent, defunct, or cease to operate as a going concern,

      3.2.3 KGC defaults in its payment obligations to the Company for more than
90 days,

      3.2.4 The Company's equity interest and ownership in KGC becomes less than
51% of the total equity of KGC,

      3.2.5 Distributor ceases to be an active independent distributor of the
Company in good standing

3.3 Upon the occurrence of any Event of Royalty Termination described in
sub-paragraphs 3.2.1 through 3.2.8 (whichever shall first occur), the obligation
of the Company to pay royalties to Distributors shall forever terminate, and no
further payment of any kind or nature shall be due or become due Distributors at
any time or for any reason. The termination of royalty to a Distributor solely
because such Distributor ceases to be an active distributor of the Company as
described in sub-paragraph under 3.2.8 shall not affect the continued right of
the other Distributor to receive his royalty payment so long as no other Event
of Royalty Termination has occurred.

3.4 Distributors acknowledge and agree that the royalty payments herein provided
constitute the full and final amounts to which Distributors are entitled or will
become entitled as a result of this royalty agreement.

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4.0 GENERAL PROVISIONS

4.1 Each party shall bear their own expenses, including fees of attorneys,
agents and accountants.

4.2 The failure or delay by any party in exercising any right, power, or
privilege under this Release and Agreement will not operate as a waiver of such
right, power, or privilege.

4.3 This Agreement supersedes all prior agreements and understandings between
the parties with respect to its subject matter, whether oral or written or
partly oral and partly written, and constitutes a complete and exclusive
statement of the terms of the agreement between the parties with respect to its
subject matter. This Agreement may not be amended except by a written agreement
signed by the parties.

4.4 Neither party may assign any of its rights under this Agreement without the
prior consent of the other party. This Agreement and all of its provisions and
conditions are for the sole and exclusive benefit of the parties to this
agreement and their beneficiaries.

4.5 This Agreement will be governed by the laws of the State of Texas as if it
were to be wholly performed within such State.

      IN WITNESS WHEREOF, the parties have executed and delivered this Agreement
as of March 1, 2005.

THE COMPANY                                             DISTRIBUTORS
NATURAL HEALTH TRENDS CORP.
AND ALL SUBSIDIARIES AND AFFILIATES THEREOF

By: /s/ Mark Woodburn                             /s/ Steve Francisco
    ------------------------------                --------------------------
      Mark Woodburn, President                        Steve Francisco

                                                  /s/ Dan Catto
                                                  -------------------------
                                                      Dan Catto

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                                    EXHIBIT A

       ROYALTY PAYMENTS BETWEEN THE INCEPTION DATE AND THE EFFECTIVE DATE

                                  DAN CATTO

                                  November 2004: $15,000
                                  December 2004: $15,000
                                  January 2005: $15,000
                                  February 2005: $15,000

                                  STEVE FRANCISCO

                                  December 2003: $12,000
                                  January 2004: $22,356
                                  February 2004: $21,888
                                  March 2004: $115,176
                                  May 2004: $50,000
                                  July 2004: $50,000
                                  August 2004: $50,000
                                  November 2004: $15,000
                                  December 2004: $15,000
                                  January 2005: $15,000
                                  February 2005: $15,000

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