Document:

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.

$70,000                                                  November         , 1999

FOR VALUE RECEIVED,  NATURAL HEALTH TRENDS CORP., a Florida corporation,  having
an office at 250 Park Avenue, New York, New York (the "Maker"),  hereby promises
to pay to the order of Domain Investments, Inc., (the "Payee"), at the office of
the Payee at , or at such other place as the Payee of this Note may designate in
writing from time to time,  the principal sum of $70,000  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.

                                      -2-
<PAGE>

The Payee of this Note is entitled,  at its option,  in the event that this Note
is not paid within two (2) days of demand, to convert at any time, the principal
amount of this Note at a  conversion  price equal to forty (40%) of the five day
average  closing  bid price of the  Common  Stock,  as  reported  by The  NASDAQ
SmallCap Market 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.

In no event shall the Payee be  entitled  to convert  that amount of the Note in
excess of that  amount  upon  conversion  of which the sum of (1) the  number of
shares of Common Stock beneficially owned by the Payee and its affiliates (other
than shares of Common Stock which may be deemed  beneficially  owned through the
ownership of the unconverted  portion of the Note), and (2) the number of shares
of Common Stock  issuable upon the  conversion of the Note with respect to which
the  determination  of this proviso is being made,  would  result in  beneficial
ownership by the Payee and its  affiliates of more than 4.9% of the  outstanding
shares of Common Stock of the Maker.  For purposes of the immediately  preceding
sentence,  beneficial  ownership  shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended,  and Regulation 13 D-G
thereunder,  except  as  otherwise  provided  in clause  (1) of the  immediately
preceding sentence.

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

                                      -3-

<PAGE>

THESE  SECURITIES  (THE   "SECURITIES")  HAVE  NOT  BEEN  REGISTERED  UNDER  THE
SECURITIES  ACT OF 1933, AS AMENDED (THE  "SECURITIES  ACT"),  OR THE SECURITIES
LAWS OF A-NY 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.

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.

In no event  shall the Maker be required to issue more than 20% of the number of
shares of Common Stock  outstanding  on the date hereof (the  "Maximum  Number")
upon the conversion of the Note unless the stockholders of the Maker approve the
issuance of additional shares of Common Stock upon the conversion of the Note or
NASDAQ waives the requirements of Market Place Rule 4460(i)(1)(D).  In the event
that the  Maximum  Number of shares of Common  Stock have been  issued  upon the
conversion of the Note, and (i) NASDAQ has not waived the requirements of Market
Place Rule 4460(i)(1)(D) or (ii) the stockholders have not approved the issuance
of  additional  shares of Common Stock,  then any Note that remains  unconverted
shall, at the election of the Payee, be immediately due and payable.

This Note shall be governed by and construed in accordance  with the laws of the
State of New York,  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: /s/ Mark D. Woodburn
  Name: Mark Woodburn
 Title: CFO

                                      -4-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

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