Document:

exv10w1

 

EXHIBIT 10.1

April 23, 2007

Ms. Marie A. Jackson

21 Marymont Ave.

Atherton, CA 94027

Dear Marie:

     This letter replaces my letter dated April 20, 2007, to incorporate certain terms that have
been the subject of subsequent negotiations. This letter confirms the discussion held with you
regarding termination of your employment with Intervoice, Inc. (“Intervoice”). The terms set forth
below constitute Intervoice’s offer and, by your signature, your acceptance of this proposed
Separation Agreement (the “Agreement”). On behalf of Intervoice, I want to express my appreciation
for your past service and contributions, and wish you success in your future endeavors.

1. Termination of Employment. Your employment with Intervoice pursuant to the Amended and
Restated Employment Agreement executed on October 9, 2006, between you and Intervoice (the
“Employment Agreement”) is terminated by mutual agreement effective April 27, 2007 (the “Separation
Date”). In connection with the forthcoming termination of your employment, your duties and
authority as Intervoice’s Senior Vice President Corporate Marketing is terminated effective today,
and your authorization to have access to Intervoice’s offices, facilities, property, confidential
information, and internal communications systems will be terminated as of April 27, 2007. In lieu
of Board action that would otherwise be required to vacate your office, you are requested to sign
at this time the accompanying form effecting your resignation as a corporate officer of Intervoice.

2. Salary and Benefits. Pursuant to the terms of the Employment Agreement and in
accordance with Intervoice’s existing policies or at its discretion, you have received or will
receive the following payments and benefits pursuant to your employment with Intervoice and your
participation in Intervoice’s benefit plans:

(a) Payment of your regular base salary through the Separation Date;

(b) Payment of accrued and unused vacation leave benefits, if any, as of the Separation
Date; and

(c) Present or future payment or other entitlement, in accordance with the terms of the
applicable plan or other benefit, of any benefits to which you have vested entitlement under
the terms of employee benefit plans established by Intervoice; and

 

 

Ms. Marie A. Jackson

April 23, 2007

Page 2

The amounts paid in accordance with subparagraphs (a) and (b) of this paragraph are gross amounts,
subject to lawful deductions, including any deductions you have previously authorized.

Your regular paid group health benefits (for which you enrolled only for dental and vision
coverage) will continue only through April 30, 2007. By law, you are entitled at your option to
continue your group health coverage for a period of time thereafter, at your own expense. Please
complete a COBRA election form, which will be furnished to you, and return it to Dee Reel in
Intervoice’s Human Resources Department at your earliest convenience, if you wish to continue such
coverage (please note, however, the special arrangements offered to you under Paragraph 3 regarding
health coverage continuation). You should also contact Ms. Reel if you wish to review other
aspects of your benefits, such as life insurance conversion or flexible spending account expense
submission.

You have a limited time period in which to exercise any available stock options, should you wish to
do so. Please promptly review your Stock Option Agreements to determine your rights in this
regard.

Intervoice will settle all authorized reimbursable business expenses, if any, based on your
submission of appropriate expense reports along with the required receipts and documenting
information. Expense reports for any remaining outstanding reimbursable expenses must be submitted
by the close of business on April 27, 2007, except for any charges not billed to you by that time,
in which case the expense must be promptly submitted upon your receipt of the billing.

3. Special Separation Compensation. Contingent upon your acceptance of the terms of this
Agreement and in consideration of your undertakings set forth in Paragraphs 7 (General Release), 8
(Confidentiality and Other Commitments), and 9 (Agreement Not to Seek Reemployment) of this
Agreement, Intervoice offers you, in addition to the pay and benefits you will receive pursuant to
Paragraph 2 and in lieu of benefits under any other Intervoice severance pay program, the following
Special Separation Compensation:

(a) Payment of the sum of $71,666.68, equivalent to four months’ base salary. This sum is a
gross amount, subject to lawful deductions, and will be paid in installments over a period
of three months from the date of the first payment, as follows: The gross amount of each
payment (except for any final remainder) will be equal to your current regular semi-monthly
gross base pay as if you were still a continuing employee. Payments will begin on the first
regular Intervoice payday following the Effective Date of this Agreement as defined in
Paragraph 16 (provided, however, that because of required administrative processing time, if
the Effective Date is within three business days before a regular payday, payments may not
begin until the next following payday), and will terminate when the total aggregate amount
of all such payments and lawful deductions equals $71.666.68.

 

 

Ms. Marie A. Jackson

April 23, 2007

Page 3

(b) Payment, by way of reimbursement to you, through August 31, 2007, of the employer’s
portion of the premium cost for Intervoice’s group health coverage on you and any covered
dependents as in effect on the Separation Date, to the same extent as if you had continued
as an employee; provided, however, that the amount of any such payment shall be treated as
taxable income to you, and Intervoice’s obligation to make such payments shall terminate at
such earlier date as you and your family members who are then under Intervoice’s coverage
have become eligible and qualified for comparable coverage (including any
preexisting-condition requirements) under another employer’s plan. To receive this payment
of the employer portion of premium costs, you must (i) make the COBRA election referred to
in Paragraph 2 above; and (ii) make arrangements with Dee Reel regarding your payment of the
entire monthly premium cost and the procedure for obtaining reimbursement for the employer
portion.

4. Separation Payment Conditional on Absence of Certain Acts or Omissions. If for actions
or omissions related to your employment with Intervoice, you are arrested or indicted for any
felony, other criminal offense punishable by imprisonment or jail term of one year or more, or any
violation of federal or state securities laws, or have any civil enforcement action brought against
you by any regulatory agency (or if Intervoice is charged with or indicted for any criminal offense
or has a civil enforcement action brought against it because of your actions or omissions),
Intervoice may suspend any payments remaining under Paragraph 3(a) until the final resolution of
such criminal or civil proceedings or until such earlier date on which Intervoice’s Board of
Directors (the “Board”) has made a final determination as to whether you committed such an act or
omission. If you are found guilty or enter into a plea agreement, consent decree, or similar
arrangement with respect to any such criminal or civil proceedings, or if the Board determines that
you have committed such an act or omission, (i) Intervoice’s obligation to provide the payments set
out in Paragraph 3(a) shall immediately end (but all other provisions of this Agreement shall
remain in full force and effect), and (ii) you shall repay to Intervoice any amounts paid to you
pursuant to Paragraph 3(a) within 30 days after a written request to do so by Intervoice. If any
such criminal or civil proceedings do not result in a finding of guilt or the entry of a plea
agreement or consent decree or similar arrangement, or the Board determines that you have not
committed such an act or omission, Intervoice shall pay you any payments that it has suspended,
with interest on such suspended payments at its cost of funds, and shall make any remaining
payments due under Paragraph 3(a).

5. Return of Property. Whether or not you accept the terms of this Agreement, you must
return to Intervoice any and all items of its property, including without limitation keys,
badge/access card, computers, software, cellphones, calculators, equipment, credit cards, forms,
files, manuals, correspondence, business records, personnel data, lists of employees, employee
salary and benefits information, customer lists and files, lists of suppliers and vendors, price
lists, contracts, contract information, marketing plans, brochures, catalogs, training materials,
product samples, computer data storage media of any kind, computer-readable files and data stored
on any hard drive or other installed

 

 

Ms. Marie A. Jackson

April 23, 2007

Page 4

device, and data processing reports, and any and all other documents or property which you have had
possession of or control over during the course of your employment with Intervoice. You must
return all such property to Intervoice by no later than the close of business on April 24, 2007.
If you have any Intervoice property that is not immediately available to you, please make
arrangements for its prompt return. By your signature below, you represent that you have complied
with these requirements.

6. Use of Confidential and Proprietary Information; Continuation of Certain Contractual
Obligations. You are a party to an agreement with Intervoice entitled “Employee Agreement on
Ideas, Inventions and Confidential Information,” your obligations under which remain fully in force
and unaffected by the terms of this Agreement. Further, various obligations under the Employment
Agreement, as specified therein, including your obligations pertaining to Confidential Information
(as that term is defined in the Employment Agreement), survive the termination of your employment
under that agreement and remain in full force and unaffected by the terms of this Agreement.

7. General Release. In consideration of the mutual promises and undertakings herein and
the Special Separation Compensation as described in Paragraph 3 above, you and your family members,
heirs, successors, and assigns (collectively the “Releasing Parties”) hereby release, acquit, and
forever waive and discharge any and all claims and demands of whatever kind or character, whether
vicarious, derivative, or direct, that you or they, individually, collectively, or otherwise, may
have or assert against: (i) Intervoice; (ii) any direct or indirect subsidiary or other affiliated
entity of Intervoice; or (iii) any officer, director, fiduciary, agent, employee, representative,
insurer, attorney, or any successors and assigns of the persons or entities just named
(collectively the “Released Parties”). This General Release includes but is not limited to any
claim or demand based on any federal, state, or local statutory or common law or constitutional
provision that applies or is asserted to apply, directly or indirectly, to the formation,
continuation, or termination of your employment relationship with Intervoice. Thus, you and the
other Releasing Parties agree to waive to the maximum extent permitted by law any claims or demands
against Intervoice or any of the other Released Parties such as for wrongful discharge; unlawful
employment discrimination on the basis of age or any other form of unlawful employment
discrimination; retaliation; breach of contract (express or implied); breach of the duty of good
faith and fair dealing; violation of the public policy of the United States, the State of Texas, or
any other state; intentional or negligent infliction of emotional distress; tortious interference
with contract; promissory estoppel; detrimental reliance; defamation of character; duress;
negligent misrepresentation; intentional misrepresentation or fraud; invasion of privacy; loss of
consortium; assault; battery; conspiracy; bad faith; negligent hiring, retention, or supervision;
any intentional or negligent act of personal injury; any alleged act of harassment or intimidation;
or any other intentional or negligent tort; or any alleged violation of the Age Discrimination in
Employment Act of 1967 (“ADEA”), Title VII of the Civil Rights Act of 1964, as amended, the
Americans

 

 

Ms. Marie A. Jackson

April 23, 2007

Page 5

with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Employee Retirement
Income Security Act of 1974, the Fair Labor Standards Act, the Fair Credit Reporting Act, the
Sarbanes-Oxley Act of 2002, the Texas Wage Payment Statute, and any other applicable federal,
state, and local employment statutes.

This release includes any claims or demands for damages (actual or punitive), back wages, future
wages or front pay, commissions, bonuses, severance benefits, medical expenses and the costs of any
counseling, reinstatement or priority placement, promotion, vacation leave benefits, past and
future medical or other employment benefits (except as to which there is, as of the Separation
Date, existing contractual or vested entitlement) including contributions to any employee benefit
plans, retirement benefits (except as to which there is, as of the Separation Date, vested
entitlement), relocation expenses, compensatory damages, injunctive relief, liquidated damages,
penalties, equitable relief, attorney’s fees, costs of court, disbursements, interest, and any and
all other loss, expense, or detriment of whatever kind or character resulting from, growing out of,
connected with, or related in any way to the formation, continuation, or termination of your
employment relationship with Intervoice.

Further, you forever waive any right to monetary recovery from the Released Parties, whether sought
directly by you or in the event any administrative agency or other public authority, individual, or
group of individuals should pursue any claim on your behalf; and you will not request or accept
from the Released Parties, as compensation or damages related to your employment or the termination
of your employment by Intervoice, anything of value that is not provided for in this Agreement.

This General Release does not apply to any rights or claims that may arise after the date this
Agreement is executed. As provided by law, after you have signed this Agreement, you will still
have an additional seven days in which to reconsider and revoke your acceptance, if you wish.

8. Confidentiality and Other Commitments. You agree that:

(a) Confidentiality. The terms of this Agreement shall be and remain confidential,
and shall not be disclosed by you to any party other than your spouse, attorney, and
accountant or tax return preparer, if such persons have agreed to keep such information
confidential, and except as otherwise may be required by law, regulation, or judicial
process. It shall not be a breach of the obligations set forth in this subparagraph for
you, your spouse, or your attorneys to state to any person that any differences between you
and Intervoice have been settled or satisfactorily resolved.

 

 

Ms. Marie A. Jackson

April 23, 2007

Page 6

(b) Assistance to Others in Claims or Litigation. Except as requested by
Intervoice, as permitted by valid law or regulation that supersedes the terms of this
Agreement, or as compelled by law or judicial process, you will not assist, cooperate with,
or supply information of any kind to any individual or private-party litigant or their
agents or attorneys in any claims or litigation against Intervoice or any of the other
Released Parties.

(c) No Other Proceedings. Except as permitted by valid law or regulation that
supersedes the terms of this Agreement, you will not initiate any investigation, inquiry, or
any other proceeding of any kind with respect to Intervoice’s facilities, workplace safety,
or sales or business operations.

9. Agreement Not to Seek Reemployment. To prevent any future dispute regarding further
employment with Intervoice, you hereby agree: (i) that you will not ever apply for or otherwise
seek employment by Intervoice or any subsidiary or other Affiliate of Intervoice at any time in the
future, at any location, office, or place of business, and (ii) that your forbearance to seek
future employment as just stated is purely contractual and is in no way involuntary,
discriminatory, or retaliatory.

10. Nonadmission of Liability or Wrongdoing. This Agreement does not in any manner
constitute an admission of liability or wrongdoing on the part of Intervoice or any of the other
Released Parties, but Intervoice and the other Released Parties expressly deny any such liability
or wrongdoing; and, except to the extent necessary to enforce this Agreement, neither this
Agreement nor any part of it may be construed, used, or admitted into evidence in any judicial,
administrative, or arbitral proceedings as an admission of any kind by Intervoice or any of the
other Released Parties.

11. Authority to Execute. You represent and warrant that you have the authority to execute
this Agreement on behalf of all the Releasing Parties.

12. Governing Law and Interpretation. This Agreement and the rights and duties of the
parties under it shall be governed by and construed in accordance with the laws of the State of
Texas, without regard for any conflicts-of-laws provisions. If any provision of this Agreement is
held to be unenforceable, such provision shall be considered separate, distinct, and severable from
the other remaining provisions of this Agreement, and shall not affect the validity or
enforceability of such other remaining provisions; and in all other respects, this Agreement shall
remain in full force and effect. If any provision of this Agreement is held to be unenforceable as
written but may be made to be enforceable by limitation thereof, then such provision shall be
enforceable to the maximum extent permitted by applicable law. The language of all parts of this
Agreement shall in all cases be construed as a whole, according to its fair meaning, and not
strictly for or against any of the parties.

 

 

Ms. Marie A. Jackson

April 23, 2007

Page 7

13. Breach of Agreement.

(a) If you should fail to comply with any of your obligations as set forth in this
Agreement, Intervoice shall have all rights and remedies lawfully available to it, including
but not limited to (i) ceasing to make any unpaid installments of the Special Separation
Compensation described above, and (ii) instituting a legal action to require you to repay so
much of the Special Separation Compensation as has already been remitted to you; but all
other provisions of this Agreement shall remain in full force and effect.

(b) Additionally, if, notwithstanding your release and waiver of claims as described in
Paragraph 7 above, you or any other of the Releasing Parties (or any other party asserting
any claim derivative of your own) should nonetheless proceed to make any such claims against
the Released Parties by bringing an action in a federal, state, or municipal court, or
before any administrative body that has the power to make a monetary or equitable award,
then in addition to any other legal or equitable remedies available to Intervoice for your
breach of this Agreement, Intervoice may seek, and the court or other body hearing the
claims may hold you liable for, Intervoice’s damages and costs, including attorney’s fees,
incurred in defending against your claims. The foregoing provision does not apply with
respect to an action brought under the ADEA in which the provisions of this Agreement are
challenged. With respect to any such action, the first sentence of this subparagraph is
modified to state: “If, notwithstanding your release and waiver of claims as described in
Paragraph 7 above, you should nonetheless proceed to make any such claims by bringing an
action in a federal, state, or municipal court, or before any administrative body that has
the power to make a monetary or equitable award, the court or other body hearing your claims
may allow the employer to recover attorney’s fees and/or costs specifically authorized under
federal law or as may otherwise be determined by the court or other body hearing the
claims.”

14. Expiration of Offer. Intervoice’s offer of the proposed Special Separation
Compensation will expire at 10:00 a.m on the 22nd day after the date on which you were furnished
with the terms of the original offer, i.e., expiration will be on May 12, 2007. In this regard,
you agree that the changes made to the original offer, whether the same may be considered material
or immaterial, do not restart the running of the minimum 21-day period required by law for
consideration of this offer and the General Release contained herein. You may accept this offer at
any time before expiration by signing this letter in the space provided below, and returning it
confidentially to Don Brown, Intervoice’s Senior Vice President Human Resources. Whether or not
you execute this Agreement, you will receive the items set forth in Paragraph 2, and are required
to follow the obligations set forth in Paragraphs 5 and 6.

15. Consultation With an Attorney. You have the right and are encouraged by Intervoice to
consult with an attorney of your choosing before executing this Agreement.

 

 

Ms. Marie A. Jackson

April 23, 2007

Page 8

16. Effective Date. This Agreement will become effective and enforceable upon the
expiration of seven days after your execution and return of this document (“Effective Date”). At
any time before the Effective Date of this Agreement, you may revoke your acceptance by delivery of
written notification to Don Brown, Senior Vice President Human Resources.

17. Exempt from IRC § 409A. The parties intend that all payments made hereunder be exempt
from Section 409A of the Internal Revenue Code pursuant to Proposed Treasury Regulation Section
1.409A(b)(9)(iii) and (iv).

18. Voluntary Agreement. You acknowledge that execution of this Agreement is knowing and
voluntary on your part, and that you have had a reasonable time to deliberate regarding its terms.

19. Consideration. Whether expressly stated herein or not, all obligations that you assume
and undertakings that you make by executing this Agreement are understood to be in consideration of
the mutual promises and undertakings herein and the Special Separation Compensation offered to you
as described in Paragraph 3 above. Further, by executing this Agreement, you acknowledge and agree
that neither Intervoice nor any of the other Released Parties has any legal obligation to provide
the Special Separation Compensation to you.

20. Entire Agreement. Except with respect to the “Employee Agreement on Ideas, Inventions
and Confidential Information” and the Employment Agreement referred to in Paragraph 6 hereof, this
Agreement contains and constitutes the entire understanding and agreement between you and
Intervoice as to its subject matter, and may be modified only by a writing of contemporaneous or
subsequent date executed by both you and an authorized official of Intervoice.

21. Severability. If any provision of this Agreement shall be determined by a court to be
invalid or unenforceable, the remaining provisions of this Agreement shall not be affected thereby,
shall remain in full force and effect, and shall be enforceable to the fullest extent permitted by
applicable law.

[The remainder of this page is intentionally left blank.]

 

 

Ms. Marie A. Jackson

April 23, 2007

Page 9

If you are in agreement with the foregoing provisions, please execute both copies of this letter in
the space provided below. You should return one executed original to the undersigned, and maintain
the other executed original in your files. Seven days after your unrevoked execution and return of
this Agreement to the undersigned, it shall constitute a valid and binding agreement by and between
Intervoice and you.

Sincerely,

INTERVOICE, INC.

	 	 	 	 	 
	By :

	 	/s/ H. Don Brown, SPHR	 	 
	 

	 	 

H. Don Brown, SPHR
	 	 
	 

	 	Senior Vice President Human Resources	 	 
	 
	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 
	/s/ Marie A.
Jackson

Marie A. Jackson	 	 

	 	 	 	 	 
	Date Signed:

	 	April
23,
2007exv10w1

 

Exhibit 10.1

April 23, 2007

Mr. Chris Sharng

1352 Saddlebrook Court

Bartonville, TX 76226

Re: Employment Terms

Dear Chris:

     I am pleased to set forth the terms and conditions of your employment with Natural Health
Trends Corp. (the “Company”), effective as of April 23, 2007 (the “Commencement Date”). We look
forward to your significant contributions toward the achievement of our goals.

The Position

     Effective as of February 21, 2007, you were appointed as the Company’s President, with
authority incident to such title in accordance with the Company’s Bylaws. You will report to the
Company’s Board of Directors. You will be appointed to the Board of Directors by no later than
October 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 A.

Compensation Package

     Your base salary is $250,000 per year, subject to a minimum of 3% annual increase per year
every January 1st as approved by the Board, and you will also be eligible to receive
annual incentive compensation, in accordance with the Company’s Annual Incentive Plan. The
incentive bonus will be paid in cash immediately following the completion of the Company’s year end
audit of its financial statements.

Benefits Package

     Your compensation will also include participation in our standard benefits program available
to our U.S. based employees.

Equity Participation

     You will be eligible for a “staking grant” of restricted shares no later than April 23, 2007
in accordance with the Company’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.

Vacation

     You will be entitled to four (4) weeks vacation per annum, in accordance with the Company’s
vacation policy.

Severance

     You will be entitled to Severance Payments (as defined below) if any of the following events
occur: (i) the Company terminates you without Cause (as defined below) during the period
commencing on the date that is thirty (30) days prior to a Change of Control (as defined below)
through and including the date that is 18 months following such Change of Control (a “Change of
Control Termination”); (ii) 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 days following
its receipt of such written notice; or (iii) the Company terminates you without Cause (other than
in connection with a Change of Control as contemplated in (i) above).

 

 

Mr. Chris Sharng

April 23, 2007

Page 2 of 3

     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.

     As used herein, the term:

     (a) “Severance Payments” 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) 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 “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) years, due and payable to you in a lump
sum 30 days after the termination date;

     (b) “Cause” shall include, without limitation, the following: (i) failure or neglect, by you
to perform the duties of your position; (ii) your failure to obey orders given by the Company or
your supervisors; (iii) 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) 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) your disloyalty, including without limitation, aiding a
competitor; (vi) your failure to devote your full time and best efforts to the
Company’s business and affairs; (vii) your failure to work exclusively for
the Company; (viii) your failure to fully cooperate in any investigation by the Company; (ix) your
material breach of this Agreement or Company rules; (x) 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) your abuse of alcohol or other drugs or controlled substances; or
(xii) your resignation (other than for Good Reason).

     (c) “Change of Control” shall mean: (i) when any “person” as defined in Section 3(a)(9) of the
Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and as used in Section 13(d)
and 14(d) thereof, including a “group” 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 “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act) of securities of the Company representing more than 50% of the combined voting power
of the Company’s then outstanding securities; or (ii) 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 “Incumbent Directors”) 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) 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;

     (d) “Good Reason” shall mean the occurrence of any of the following without your written
consent or approval: (A) the assignment to you of duties inconsistent with this Agreement or a
material diminution in your title, authority or base compensation; (B) any change in reporting
responsibility so that you report to any person other than the Board of Directors thereof; (C) any
material breach of the Agreement by this

 

 

Mr. Chris Sharng

April 23, 2007

Page 3 of 3

Company or (D) the Company requires you to relocate more than 50 miles outside of the Dallas-Fort
Worth Metroplex metropolitan area.

Non-Competition and Confidentiality Agreement

     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 B (the
“Non-Competition Agreement”), pursuant to which you will agree that you will keep in confidence the
Company’s confidential information, you will not compete with the Company, and you will not solicit
employees or independent distributors of the Company.

Governing Law

     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.

Arbitration

     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.

Employment at Will

     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) weeks notice; provided however, that the at
will relationship will not in any way affect the Company’s obligation to pay severance to you as
set forth above under “Severance”.

     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.

	 	 	 	 	 
	 	Sincerely,

NATURAL HEALTH TRENDS CORP.

 	 
	 	By:  	/s/ Randall A. Mason
 	 
	 	 	Name:  	Randall A. Mason 	 
	 	 	Title:  	Chairman of the Board 	 
	 

Acknowledged and Agreed:

/s/ Chris Sharng          

 

 

Exhibit A

Chris Sharng

April 23, 2007

To the Board of Directors

Natural Health Trends Corp

Ladies and Gentlemen:

     I understand that my appointment to the Board of Directors (the “Board”) of Natural Health
Trends Corp. (the “Company”) is in connection with my appointment as the Company’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’s President and Chief Executive Officer.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/ Chris Sharng
 	 
	 	 	 
	 	Chris Sharng 	 
	 

 

 

Exhibit B

NATURAL HEALTH TRENDS CORP.

NON-COMPETITION AND PROPRIETARY RIGHTS

ASSIGNMENT AGREEMENT

Employee’s Name: Chris Sharng (“Employee”)

Date: April 23, 2007

In consideration of Employee’s continued employment by or other similar relationship with
Natural Health Trends Corp. (the “Company”) 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 “Employment Agreement”), including
without limitation the Company’s promise to provide Employee with confidential information,
Employee hereby agrees with the Company as follows:

     1. Confidential Information. During the term of this Agreement and in the course of
Employee’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’s or
such third party’s current or prospective business, research and development activities, products,
technology, strategy, organization and/or finances (collectively, “Confidential Information”).
Such Confidential Information, which may be disclosed orally or in writing, shall include, without
limitation, Technology (as defined in Section 2(a)), Work Product (as defined in Section 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’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.

     Confidential Information shall not include information that is now, or hereafter becomes,
through no act or failure to act on Employee’s part, generally known to the public; information
that was rightfully in Employee’s possession without confidentiality restriction prior to the
Company’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’s rights prior to disclosure. At all times,
both during Employee’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 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.

     Upon termination of Employee’s services for any reason, or upon demand by the Company at any
time, the Company’s agreement to provide, and Employee’s right to use, Confidential Information
shall immediately terminate, and Employee shall return promptly to the Company, or destroy, at the
Company’s option, all tangible and electronic materials that disclose or embody Confidential
Information.

     2. Assignment of Work Product.

          (a) For purposes of this Agreement: “Technology” 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; “Intellectual Property Rights” 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 “Work Product” 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) results from Employee’s performance of
services for the Company, (ii) is related to the business of the Company or (iii) is based upon the
use of Confidential Information.

          (b) 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.

          (c) 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 “works made for hire” 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.

          (d) 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

2

 

Section 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’s request to secure title or legal protection on the Company’s
behalf for any such Work Product. In the event that the Company is unable to secure Employee’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’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’s agent and
attorney-in-fact to act on and in Employee’s behalf and stead to, execute and file any such
applications and perform all other lawfully permitted acts to perfect Employee’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.

          (e) For purposes of this Section 2(e), “Background Technology” 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’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’s performance of services for the Company.

     3. Representation. Employee hereby represents to the Company that the Work Product
Employee creates under the Employment Agreement will be original, and that Employee’s performance
of services under the Employment Agreement and the Company’s use of Employee’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.

     4. Return of Materials. 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’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’s services for any reason.
Employee will not retain any such material or property or any copies thereof upon such
termination.

     5. Competitive Activities. From the date hereof until the six (6) 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
“Non-Compete Restricted Period”), 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 “Competitive Activities”). The prohibition set
forth in this Section 5 shall not restrict Employee from (a) owning or holding up to two percent
(2%) of the shares of stock of any company

3

 

registered or sold on any recognized stock exchange or sold in the over-the-counter market or
(b) 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 5 are intended to protect the Company’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.

     6. Nonsolicitation of Customers and Distributors. During the Non-Compete Restricted
Period plus six (6) months (the “Nonsolicitation Period”), Employee will not, in any capacity,
directly or indirectly:

	 	(a)	 	solicit business or patronage of any customer or prospective
customer (collectively, “Customer”), or distributor or prospective distributor
(collectively, “Distributor”) of the Company in connection with any Competitive
Activity;
	 
	 	(b)	 	divert, entice, or otherwise take away from the Company the
business or patronage of any Customer or Distributor, or attempt to do so;
	 
	 	(c)	 	solicit, induce or assist any Customer, Distributor or supplier
to terminate or reduce its relationship with the Company;
	 
	 	(d)	 	assist with the provision of any services to a Customer or
Distributor (except in Employee’s capacity as an employee of the Company); or
	 
	 	(e)	 	refer a Customer, Distributor or supplier to another person
engaged (or to be engaged) in Competitive Activities.

     7. Nonsolicitation of Employees. During the Nonsolicitation Period, Employee will
not:

	 	(a)	 	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) year preceding
Employee’s termination (other than persons whose employment by the Company was
terminated by or at the request of the Company); or
	 
	 	(b)	 	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.

     8. Acknowledgments. Employee acknowledges and agrees that the restrictions set forth
in this Agreement are intended to protect the Company’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.

     9. Disclosure of Agreement. 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.

4

 

     10. Third-Party Agreements and Rights. 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’s use or disclosure of information or Employee’s engagement in any business,
except as may be disclosed in Schedule A 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 Schedule A. Employee represents to the Company that Employee’s execution of this
Agreement, Employee’s employment with the Company and the performance of Employee’s proposed duties
for the Company will not violate any obligations Employee may have to any such previous employer or
other party. In Employee’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.

     11. Injunction. 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.

     12. Binding Effect. This Agreement will be binding upon Employee and Employee’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.

     13. Enforceability. 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.

     14. Entire Agreement. 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.

     15. Notices. 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

5

 

Company or, in the case of any notice to the Company, at its main offices, to the attention of
the undersigned officer.

     16. Governing Law. 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.

     17. Arbitration. 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.

     18. Escrow. If Employee is terminated for cause and, within 30 days of such
termination, initiates an arbitration proceeding disputing that the termination was for cause, then
the Company will either (a) on each regular pay day of the Company occurring following the
expiration of 10 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) release Employee from any remaining obligations under Section 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 5, 6 or 7 of
this Agreement.

     19. Prior Material Breach. 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 5, 6 and 7 of this Agreement. The failure of the Company to
pay Employee under the Employment Agreement shall be excused by Employee’s prior material breach of
this Agreement or the Employment Agreement.

EMPLOYEE UNDERSTANDS THAT THIS AGREEMENT AFFECTS IMPORTANT RIGHTS. EMPLOYEE HAS READ IT CAREFULLY
AND IS SATISFIED THAT EMPLOYEE UNDERSTANDS IT COMPLETELY.

	 	 	 	 	 	 	 	 	 	 	 
	NATURAL HEALTH TRENDS CORP.	 	 	 	EMPLOYEE
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Randall A. Mason
 
	 	 	 	By:	 	/s/ Chris Sharng

 

	 

	 	Name:
	 	Randall A. Mason
	 	 	 	 	 	Name: Chris Sharng
	 

	 	Title:
	 	Chairman of the Board	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 	 	Dated:	 	 
	 	 	 
	 	 	 	 	 	 

6

 

Schedule A

[None]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]