Document:

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                                                                     EXHIBIT 4.1

                                                                [EXECUTION COPY]

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE OR DISTRIBUTION
MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR
AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

                           NATURAL HEALTH TRENDS CORP.

                      FORM OF COMMON STOCK PURCHASE WARRANT

Warrant No.  : _______
Number of Shares: ____________
Date of Issuance: October 6, 2004 ("Issuance Date")

         Natural Health Trends Corp., a Florida corporation (the "Company"),
hereby certifies that, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, [INSERT NAME OF BUYER], the
registered holder hereof or its permitted assigns (the "Holder"), is entitled,
subject to the terms set forth below, to purchase from the Company, at the
Exercise Price (as defined below) then in effect, upon surrender of this Common
Stock Purchase Warrant (including all Common Stock Purchase Warrants issued in
exchange, transfer or replacement hereof, the "Warrant"), at any time or times
on or after the date hereof, but not after 11:59 P.M., New York Time, on the
Expiration Date (as defined below), _________________ (____) fully paid
nonassessable shares of Common Stock (as defined below) (the "Warrant Shares").
Except as otherwise defined herein, capitalized terms in this Warrant shall have
the meanings set forth in Section 13. This Warrant is one of the Common Stock
Purchase Warrants (the "SPA Warrants") issued pursuant to (i) Section 1 of that
certain Securities Purchase Agreement, or (ii) Article 3 of that certain
Subscription Agreement, each dated as of October 6, 2004 (the "Subscription
Date"), among the Company and the investors (the "Buyers") referred to therein
(the "Purchase Agreements").

         1. EXERCISE OF WARRANT.

         (a) MECHANICS OF EXERCISE. Subject to the terms and conditions hereof,
this Warrant may be exercised by the Holder on any day on or after the date
hereof, in whole or in part, by (i) delivery of a written notice, in the form
attached hereto as EXHIBIT A (the "Exercise Notice"), of the Holder's election
to exercise this Warrant and (ii) payment to the Company of an amount equal to
the applicable Exercise Price multiplied by the number of Warrant Shares as to
which this Warrant is being exercised (the "Aggregate Exercise Price") in cash
or by wire transfer of immediately available funds. The Holder shall not be
required to deliver the original Warrant in order to effect an exercise
hereunder. Execution and delivery of the Exercise Notice with respect to less
than all of the Warrant Shares shall have the same effect as cancellation of

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the original Warrant and issuance of a new Warrant evidencing the right to
purchase the remaining number of Warrant Shares. On or before the first Business
Day following the date on which the Company has received each of the Exercise
Notice and the Aggregate Exercise Price (the "Exercise Delivery Documents"), the
Company shall transmit by facsimile an acknowledgment of confirmation of receipt
of the Exercise Delivery Documents to the Holder and the Company's transfer
agent (the "Transfer Agent"). On or before the tenth Business Day following the
date on which the Company has received all of the Exercise Delivery Documents
(the "Share Delivery Date"), the Company shall (X) provided that the Transfer
Agent is participating in The Depository Trust Company ("DTC") Fast Automated
Securities Transfer Program, upon the request of the Holder, credit such
aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder's or its designee's balance account with
DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the
Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program, issue and dispatch by overnight courier to the address as
specified in the Exercise Notice, a certificate, registered in the name of the
Holder or its designee, for the number of shares of Common Stock to which the
Holder is entitled pursuant to such exercise. Upon delivery of the Exercise
Notice and Aggregate Exercise Price referred to in clause (ii) above, the Holder
shall be deemed for all corporate purposes to have become the holder of record
of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the certificates evidencing such Warrant
Shares. If this Warrant is submitted in connection with any exercise pursuant to
this Section 1(a) and the number of Warrant Shares represented by this Warrant
submitted for exercise is greater than the number of Warrant Shares being
acquired upon an exercise, then the Company shall as soon as practicable and in
no event later than three Business Days after any exercise and at its own
expense, issue a new Warrant (in accordance with Section 6(d)) representing the
right to purchase the number of Warrant Shares purchasable immediately prior to
such exercise under this Warrant, less the number of Warrant Shares with respect
to which this Warrant is exercised. No fractional shares of Common Stock are to
be issued upon the exercise of this Warrant, but rather the number of shares of
Common Stock to be issued shall be rounded up to the nearest whole number.

         (b) EXERCISE PRICE. For purposes of this Warrant, "Exercise Price"
means $12.47, subject to adjustment as provided herein.

         2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The
Exercise Price and the number of Warrant Shares shall be adjusted from time to
time as follows:

         (a) ADJUSTMENT UPON SUBDIVISION OR COMBINATION OF COMMON STOCK. If the
Company at any time on or after the Issuance Date subdivides (by any stock
split, stock dividend, recapitalization or otherwise) one or more classes of its
outstanding shares of Common Stock into a greater number of shares, the Exercise
Price in effect immediately prior to such subdivision will be proportionately
reduced and the number of Warrant Shares will be proportionately increased. If
the Company at any time on or after the Issuance Date combines (by combination,
reverse stock split or otherwise) one or more classes of its outstanding shares
of Common Stock into a smaller number of shares, the Exercise Price in effect
immediately prior to such combination will be proportionately increased and the
number

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of Warrant Shares will be proportionately decreased. Any adjustment under this
Section 2(a) shall become effective at the close of business on the date the
subdivision or combination becomes effective.

         3. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTION.

         (a) PURCHASE RIGHTS. In addition to any adjustments pursuant to Section
2 above, if at any time the Company grants, issues or sells any Options,
Convertible Securities or rights to purchase stock, warrants, securities or
other property pro rata to the record holders of any class of Common Stock (the
"Purchase Rights"), then the Holder will be entitled to acquire, upon the terms
applicable to such Purchase Rights, the aggregate Purchase Rights which such
holder could have acquired if such holder had held the number of shares of
Common Stock acquirable upon complete exercise of this Warrant (without regard
to any limitations on the exercise of this Warrant) immediately before the date
on which a record is taken for the grant, issuance or sale of such Purchase
Rights, or, if no such record is taken, the date as of which the record holders
of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights.

         (b) FUNDAMENTAL TRANSACTIONS. The Company shall not enter into or be
party to a Fundamental Transaction unless the Successor Entity assumes in
writing all of the obligations of the Company under this Warrant and the other
Transaction Documents in accordance with the provisions of this Section 3(b)
pursuant to written agreements in form and substance reasonably satisfactory to
the Required Holders and approved by the Required Holders prior to such
Fundamental Transaction. Upon consummation of the Fundamental Transaction, the
Successor Entity shall deliver to the holder of this Warrant in exchange
therefor, a warrant substantially identical in form and substance to this
Warrant, except that there shall be issuable upon exercise of such warrant at
any time after the consummation of the Fundamental Transaction but prior to the
Expiration Date, in lieu of the shares of the Company's Common Stock (or other
securities, cash, assets or other property) purchasable upon the exercise of the
Warrant prior to such Fundamental Transaction, such shares of stock, securities,
cash, assets or any other property whatsoever (including warrants or other
purchase or subscription rights) which the Holder would have been entitled to
receive upon the happening of such Fundamental Transaction had the Warrant been
exercised immediately prior to such Fundamental Transaction, as adjusted in
accordance with the provisions of this Warrant. Provisions made pursuant to this
Section shall be in a form and substance reasonably satisfactory to the Required
Holders. The provisions of this Section shall apply similarly and equally to
successive Fundamental Transactions and shall be applied without regard to any
limitations on the exercise of this Warrant.

         4. NONCIRCUMVENTION. The Company hereby covenants and agrees that the
Company will not, by amendment of its Articles of Incorporation, as amended or
through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities, or any other voluntary action, avoid
or seek to avoid the observance or performance of any of the terms of this
Warrant, and will at all times in good faith carry out all the provisions of
this Warrant and take all action as may be required to protect the rights of the
Holder. Without limiting the generality of the foregoing, the Company (i) will
not increase the par value of any

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shares of Common Stock receivable upon the exercise of this Warrant above the
Exercise Price then in effect, (ii) will take all such actions as may be
necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable shares of Common Stock upon the exercise of this
Warrant, and (iii) will, so long as any of the SPA Warrants are outstanding,
take all action necessary to reserve and keep available out of its authorized
and unissued Common Stock, solely for the purpose of effecting the exercise of
the SPA Warrants, the number of shares of Common Stock as shall from time to
time be necessary to effect the exercise of the SPA Warrants then outstanding
(without regard to any limitations on exercise).

         5. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise
specifically provided herein, the Holder, solely in such Person's capacity as a
holder, of this Warrant shall not be entitled to vote or receive dividends or be
deemed the holder of shares of the Company for any purpose, nor shall anything
contained in this Warrant be construed to confer upon the Holder, solely in such
Person's capacity as a holder of this Warrant, any of the rights of a
stockholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, conveyance or otherwise), receive notice of
meetings, receive dividends or subscription rights, or otherwise, prior to the
issuance to the Holder of the Warrant Shares which such Person is then entitled
to receive upon the due exercise of this Warrant. In addition, nothing contained
in this Warrant shall be construed as imposing any liabilities on such Holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a
stockholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company. Notwithstanding this Section 5, the Company will
provide the Holder with copies of the same notices and other information given
to the stockholders of the Company generally, contemporaneously with the giving
thereof to the stockholders.

         6. REISSUANCE OF WARRANTS.

         (a) TRANSFER OF WARRANT. The Holder may transfer this Warrant and the
rights hereunder only in accordance with applicable securities laws. If this
Warrant is to be transferred, the Holder shall surrender this Warrant to the
Company, whereupon the Company will forthwith issue and deliver upon the order
of the Holder a new Warrant (in accordance with Section 6(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant
Shares being transferred by the Holder and, if less then the total number of
Warrant Shares then underlying this Warrant is being transferred, a new Warrant
(in accordance with Section 6(d)) to the Holder representing the right to
purchase the number of Warrant Shares not being transferred.

         (b) LOST, STOLEN OR MUTILATED WARRANT. Upon receipt by the Company of
evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant, and, in the case of loss, theft or destruction,
of any indemnification undertaking by the Holder to the Company in customary
form, in the case of mutilation, upon surrender and cancellation of this
Warrant, the Company shall execute and deliver to the Holder a new Warrant (in
accordance with Section 6(d)) representing the right to purchase the Warrant
Shares then underlying this Warrant.

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         (c) WARRANT EXCHANGEABLE FOR MULTIPLE WARRANTS. This Warrant is
exchangeable, upon the surrender hereof by the Holder at the principal office of
the Company, for a new Warrant or Warrants (in accordance with Section 6(d))
representing in the aggregate the right to purchase the number of Warrant Shares
then underlying this Warrant, and each such new Warrant will represent the right
to purchase such portion of such Warrant Shares as is designated by the Holder
at the time of such surrender; provided, however, that no Warrants for
fractional shares of Common Stock shall be given.

         (d) ISSUANCE OF NEW WARRANTS. Whenever the Company is required to issue
a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall
be of like tenor with this Warrant, (ii) shall represent, as indicated on the
face of such new Warrant, the right to purchase the Warrant Shares then
underlying this Warrant (or in the case of a new Warrant being issued pursuant
to Section 6(a) or Section 6(c), the Warrant Shares designated by the Holder
which, when added to the number of shares of Common Stock underlying the other
new Warrants issued in connection with such issuance, does not exceed the number
of Warrant Shares then underlying this Warrant), (iii) shall have an issuance
date, as indicated on the face of such new Warrant which is the same as the
Issuance Date, and (iv) shall have the same rights and conditions as this
Warrant.

         7. NOTICES. Whenever notice is required to be given under this Warrant,
unless otherwise provided herein, such notice shall be given in accordance with
Section 9(f) of the Securities Purchase Agreement. The Company shall provide the
Holder with prompt written notice of all actions taken pursuant to this Warrant,
including in reasonable detail a description of such action and the reason
therefore. Without limiting the generality of the foregoing, the Company will
give written notice to the Holder (i) promptly upon any adjustment of the
Exercise Price or number of Warrant Shares or number or kind of securities
purchasable upon exercise of this Warrant, setting forth in reasonable detail,
and certifying, the facts requiring such adjustment and the calculation of such
adjustment and (ii) prior to the date on which the Company closes its books or
takes a record (A) with respect to any dividend or distribution upon the Common
Stock, (B) with respect to any grants, issues or sales of any Options,
Convertible Securities or rights to purchase stock, warrants, securities or
other property to holders of Common Stock or (C) for determining rights to vote
with respect to any Fundamental Transaction, dissolution or liquidation,
provided in each case that such information shall be made known to the public
prior to or in conjunction with such notice being provided to the Holder.

         8. AMENDMENT AND WAIVER. Except as otherwise provided herein, the
provisions of this Warrant may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained the written consent of the Required
Holders; provided that no such action may increase the exercise price of any SPA
Warrant or decrease the number of shares or class of stock obtainable upon
exercise of any SPA Warrant without the written consent of the Holder. No such
amendment shall be effective to the extent that it applies to less than all of
the holders of the SPA Warrants then outstanding.

         9. GOVERNING LAW. This Warrant shall be construed and enforced in
accordance with, and all questions concerning the construction, validity,
interpretation and

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performance of this Warrant shall be governed by, the internal laws of the State
of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of New York.

         10. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly
drafted by the Company and all the Buyers and shall not be construed against any
person as the drafter hereof. The headings of this Warrant are for convenience
of reference and shall not form part of, or affect the interpretation of, this
Warrant.

         11. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The
remedies provided in this Warrant shall be cumulative and in addition to all
other remedies available under this Warrant or any other Transaction Document
(as defined in the Purchase Agreements), at law or in equity (including a decree
of specific performance and/or other injunctive relief), and nothing herein
shall limit the right of the holder of this Warrant right to pursue actual
damages for any failure by the Company to comply with the terms of this Warrant.
The Company acknowledges that a breach by it of its obligations hereunder will
cause irreparable harm to the Holder and that the remedy at law for any such
breach may be inadequate. The Company therefore agrees that, in the event of any
such breach or threatened breach, the holder of this Warrant shall be entitled,
in addition to all other available remedies, to an injunction restraining any
breach, without the necessity of showing economic loss and without any bond or
other security being required.

         12. TRANSFER. This Warrant may be offered for sale, sold, transferred
or assigned without the consent of the Company, subject to applicable securities
laws; provided however, in no event shall the Holder effect a public
distribution of this Warrant without the prior written consent of the Company
which consent maybe withheld in the Company's sole discretion.

         13. CERTAIN DEFINITIONS. For purposes of this Warrant, the following
terms shall have the following meanings:

         (a) "COMMON STOCK" means (i) the Company's common stock, par value
$.001 per share, and (ii) any capital stock into which such Common Stock shall
have been changed or any capital stock resulting from a reclassification of such
Common Stock.

         (b) "CONVERTIBLE SECURITIES" means any stock or securities (other than
Options) directly or indirectly convertible into or exercisable or exchangeable
for Common Stock.

         (c) "EXPIRATION DATE" means the date sixty months after the Issuance
Date or, if such date falls on a day other than a Business Day or on which
trading does not take place on the Principal Market (a "Holiday"), the next date
that is not a Holiday.

         (d) "FUNDAMENTAL TRANSACTION" means that the Company shall, directly or
indirectly, in one or more related transactions, (i) consolidate or merge with
or into (whether or not the Company is the surviving corporation) another Person
(except for a migratory merger

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pursuant to which the Company changes its state of incorporation), or (ii) sell,
assign, transfer, convey or otherwise dispose of all or substantially all of the
properties or assets of the Company to another Person, or (iii) allow another
Person to make a purchase, tender or exchange offer that is accepted by the
holders of more than the 50% of the outstanding shares of Common Stock (not
including any shares of Common Stock held by the Person or Persons making or
party to, or associated or affiliated with the Persons making or party to, such
purchase, tender or exchange offer), or (iv) consummate a stock purchase
agreement or other business combination (including, without limitation, a
reorganization, recapitalization, or spin-off) with another Person whereby such
other Person acquires more than the 50% of the outstanding shares of Common
Stock (not including any shares of Common Stock held by the other Person or
other Persons making or party to, or associated or affiliated with the other
Persons making or party to, such stock purchase agreement or other business
combination).

         (e) "OPTIONS" means any rights, warrants or options to subscribe for or
purchase Common Stock or Convertible Securities.

         (f) "PARENT ENTITY" of a Person means an entity that, directly or
indirectly, controls the applicable Person and whose common stock or equivalent
equity security is quoted or listed on an Eligible Market, or, if there is more
than one such Person or Parent Entity, the Person or Parent Entity with the
largest public market capitalization as of the date of consummation of the
Fundamental Transaction.

         (g) "PERSON" means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization, any other entity and a government or any department or agency
thereof.

         (h) "PRINCIPAL MARKET" means the principal exchange or market on which
the Common Stock is listed and trades, which initially is the OTC Bulletin
Board.

         (i) "REGISTRATION RIGHTS AGREEMENT" means that certain registration
rights agreement by and among the Company and the Buyers.

         (j) "REQUIRED HOLDERS" means the holders of the SPA Warrants
representing at least a majority of the shares of Common Stock underlying the
SPA Warrants then outstanding.

         (k) "SUCCESSOR ENTITY" means the Person, which may be the Company,
formed by, resulting from or surviving any Fundamental Transaction or the Person
with which such Fundamental Transaction shall have been made, provided that if
such Person is not a publicly traded entity whose common stock or equivalent
equity security is quoted or listed for trading on an Eligible Market, Successor
Entity shall mean such Person's Parent Entity.

         IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase
Common Stock to be duly executed as of the Issuance Date set out above.

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                                        NATURAL HEALTH TRENDS CORP.

                                        By:_____________________________
                                            Name:  Mark D. Woodburn
                                            Title: President

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                                    EXHIBIT A

                                 EXERCISE NOTICE
            TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS
                        WARRANT TO PURCHASE COMMON STOCK

                           NATURAL HEALTH TRENDS CORP.

         The undersigned holder hereby exercises the right to purchase
_________________ of the shares of Common Stock ("Warrant Shares") of Natural
Health Trends Corp., a Florida corporation (the "Company"), evidenced by the
attached Warrant to Purchase Common Stock (the "Warrant"). Capitalized terms
used herein and not otherwise defined shall have the respective meanings set
forth in the Warrant.

         1. PAYMENT OF EXERCISE PRICE. The holder shall pay the Aggregate
Exercise Price in the sum of $________ in immediately available funds to the
Company in accordance with the terms of the Warrant.

         2. ACCREDITED INVESTOR. The Holder is an "accredited investor" as
defined in Rule 501(c) under the Securities Act of 1933, as amended.

         3. DELIVERY OF WARRANT SHARES. The Company shall deliver to the holder
_______ Warrant Shares in accordance with the terms of the Warrant.

Date: _______________ __, ______

Name of Registered Holder

By:______________________________
   Name:
   Title:

<PAGE>

                                 ACKNOWLEDGMENT

         The Company hereby acknowledges this Exercise Notice and hereby directs
Continental Stock Transfer and Trust Company to issue the above indicated number
of shares of Common Stock in accordance with the Transfer Agent Instructions
dated October 6, 2004 from the Company and acknowledged and agreed to by
Continental Stock Transfer and Trust Company.

                                        NATURAL HEALTH TRENDS CORP.

                                        By:______________________________
                                           Name:  Mark D. Woodburn
                                           Title: President<PAGE>

                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT, dated as of June 24, 2004 and effective as of
August 1, 2004, by and between Natural Health Trends Corp., a Florida
corporation (the "Company"), of 12901 Hutton Drive, Dallas, Texas 75234 and
Chris Sharng, an individual residing at 1352 Saddlebrook Court, Bartonville,
Texas 76226 (the "Executive").

                                  WITNESSETH:

         WHEREAS, the Company desires to employ the Executive, and the Executive
desires to be employed by the Company, upon the terms and conditions hereinafter
set forth.

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

         SECTION 1. EMPLOYMENT. The Company agrees to employ Executive and the
Executive hereby accepts such employment, as the Company's Executive Vice
President and Chief Financial Officer, subject to the terms and conditions set
forth in this Agreement.

         SECTION 2. DUTIES; EXCLUSIVE SERVICES; BEST EFFORTS. The Executive
shall perform all duties incident to the position of Executive Vice President
and Chief Financial Officer as well as any other duties as may from time to time
be assigned by the President of the Company or his designee, and agrees to abide
by all By-laws, policies, practices, procedures or rules of the Company. The
Executive agrees to devote his best efforts, energies and skill to the discharge
of the duties and responsibilities attributable to his position, and to this
end, he will devote his full time and attention exclusively to the business and
affairs of the Company. The Executive also agrees that he shall not take
personal advantage of any business opportunities which arise during his
employment and which may benefit the Company. All material facts regarding such
opportunities must be promptly

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reported to the President for consideration by the Company. Notwithstanding the
foregoing, the Executive may donate his time and efforts to charitable causes so
long as such endeavors do not effect his ability to perform his duties under
this Agreement. If requested by the Company, the Executive shall serve on the
Board of Directors or any committee thereof without additional compensation.

         SECTION 3. TERM OF EMPLOYMENT; VACATION.

                  (a) Unless extended in writing by both the Company and the
Executive, the term of this Agreement shall commence on the effective date
hereof and terminate on December 31, 2007, subject to earlier termination by the
parties pursuant to Sections 5 and 6 hereof (the "Term").

                  (b) The Executive shall be entitled to two (2) weeks vacation
during each year of the Term.

         SECTION 4. COMPENSATION OF EXECUTIVE.

                  4.1 SALARY. The Company shall pay to Executive a base salary
of two hundred thirty thousand ($230,000) dollars for the twelve-month period
commencing August 1st, 2004 (the "Base Salary"), less such deductions as shall
be required to be withheld by applicable law and regulations. The Base Salary
payable to Executive shall be paid at such regular weekly, biweekly or
semi-monthly time or times as the Company makes payment of its regular payroll
in the regular course of business. Commencing on the first anniversary of the
date hereof, the Base Salary shall be increased to two hundred and fifty
thousand ($250,000) and be effective for the rest of the Term.

                  4.2 STOCK OPTIONS. On the date hereof and upon the execution
of this Agreement by the parties, the Executive shall receive non-qualified
stock options exercisable for an aggregate of 34,124 shares of the Company's
common stock ("Common Stock") at an exercise price equal to the closing price of
the Company's common stock on the date hereof, as reported on the OTC Bulletin
Board. An equal number of Options (or approximately 832 Options) shall vest
monthly during the Term; provided however, that no Options shall vest

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during the six (6) month period commencing on the date hereof and ending on
January 31st, 2005, and on January 31st, 2005, 4,992 Options shall vest. The
Options shall be granted pursuant to the Company's 2002 Stock Plan (the "Plan")
and subject to the terms and conditions thereof.

                  4.3 PERFORMANCE BONUSES. During the term of this Agreement,
the Executive shall be entitled to receive an annual cash performance bonus (the
"Annual Bonus") for each year during the Term commencing on January 1st and
ending on the following December 31st based upon (i) the Executive's performance
of his duties, and (ii) the Company's financial performance, each as determined
by the Company's Compensation Committee (or lieu thereof, the Company's Board of
Directors) in its reasonable discretion. The Executive and the Company shall
agree on certain minimum and maximum annual performance criteria. If (i) the
minimum target is not achieved, the Executive will not be entitled to any Annual
Bonus, (ii) the minimum target is achieved, the Executive will be entitled to an
Annual Bonus equal to 25% of his Base Salary in effect on January 1st of the
applicable year, or (iii) the maximum target is achieved, the Executive will be
entitled to an Annual Bonus equal to 50% of his Base Salary in effect on January
1st of the applicable year. Such Annual Bonus, if any, shall be paid within
forty five (45) days following the end of such yearly bonus period.
Notwithstanding the foregoing, the Executive shall receive a cash bonus of no
less than $50,000 for each of the calendar years ending December 31, 2004 and
2005.

                  4.4 EXPENSES. During the Term, the Company shall promptly
reimburse the Executive for all reasonable and necessary travel expenses
(including business class on all international flights over 5 hours in duration)
and other disbursements incurred by the Executive on behalf of the Company, in
performance of the Executive's duties hereunder, assuming Executive has received
prior approval for such travel expenses and disbursements by the Company to the
extent possible consistent with corporate practices with respect to the
reimbursement of expenses incurred by the Company's senior executives. In
addition, the

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Company shall pay or reimburse Executive for any membership fees and dues for
various professional organizations in an amount not to exceed $2,000.00.

                  4.5 BENEFITS. The Executive shall be permitted during the Term
to participate in any hospitalization or disability insurance plans, health
programs, pension plans, bonus plans or similar benefits that may be available
to other executives of the Company (including coverage under any officers and
directors liability insurance policy), subject to such eligibility rules as are
applied to senior managers generally. The Company shall, if possible, waive any
waiting period applicable to the Executive under any benefit plan.

         SECTION 5. DISABILITY OF THE EXECUTIVE. If the Executive is
incapacitated or disabled by accident, sickness or otherwise so as to render the
Executive mentally or physically incapable of performing the services required
to be performed under this Agreement for a period of 90 consecutive days or 120
days in any period of 360 consecutive days (a "Disability"), the Company may, at
the time or during the period of such Disability, at its option, terminate the
employment of the Executive under this Agreement immediately upon giving the
Executive written notice to that effect.

         SECTION 6. TERMINATION.

                  6.1 WITH CAUSE. The Company may terminate the employment of
the Executive and all of the Company's obligations under this Agreement at any
time for Cause (as hereinafter defined) by giving the Executive notice of such
termination, with reasonable specificity of the details thereof. "Cause" shall
include, without limitation, the following:

                  (i) failure or neglect, by the Executive to perform the duties
of the Executive's position;

                  (ii) failure of the Executive to obey orders given by the
Company or his supervisors;

                  (iii) misconduct by the Executive in connection with the
performance of any of his duties, including, without limitation,
misappropriation of funds or property of the

                                       4
<PAGE>

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) commission by the Executive 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) disloyalty by the Executive, including without limitation,
aiding a competitor;

                  (vi) failure by the Executive to devote his full time and best
efforts to the Company's business and affairs;

                  (vii) failure by the Executive to work exclusively for the
Company;

                  (viii) failure to fully cooperate in any investigation by the
Company;

                  (ix) any breach of this Agreement or Company rules;

                  (x) any other act of misconduct by the Executive;

                  (xi) the Executive's abuse of alcohol or other drugs or
controlled substances; or

                  (xii) the Executive's death or resignation hereunder; provided
however, that if the Executive resigned for Good Reason (as hereinafter defined)
or in connection with a Change of Control (as hereinafter defined) in accordance
with Section 6.3, such resignation shall not be considered "Cause" hereunder. A
termination pursuant to this Section 6.1 shall take effect 10 days after the
giving of written notice to the Executive unless the Executive shall, during
such 10-day period, remedy to the reasonable satisfaction of the Board of
Directors of the Company the misconduct, disregard, abuse or breach specified in
such notice; provided, however, that such termination shall take effect
immediately upon the giving of such notice if the Board of Directors of the
Company shall, in its reasonable discretion, have determined that such
misconduct, disregard, abuse or breach is not remediable (which determination
shall be stated in such notice).

                                       5
<PAGE>

                  6.2 WITHOUT CAUSE. The Company may terminate the employment of
the Executive and all of the Company's obligations under this Agreement (except
as hereinafter provided) at any time during the Term without Cause by giving the
Executive written notice of such termination, to be effective 10 days following
the giving of such written notice.

                  6.3 CHANGE OF CONTROL. The Executive may terminate this
Agreement by delivering written notice to the Company within six (6) months
following the effective date of a Change of Control. As used herein, the term
"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 proviso; 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 purchase of assets, or by merger, or otherwise.

                                       6
<PAGE>

                  6.4 WITH GOOD REASON. The Executive may terminate his
employment hereunder (and the Term) for Good Reason after the occurrence of such
event constituting a material breach of this Agreement by the Company that has
not been fully cured within ten (10) days after written notice thereof has been
given by the Executive to the Company. "Good Reason" shall mean the occurrence
of any of the following without the written consent of the Executive of his
approval: (i) the assignment to Executive of duties inconsistent with the
Agreement or a change in his title or authority; (ii) any change in reporting
responsibility so that Executive reports to any person other than the President
of the Company; (iii) the requirement of the Executive to relocate to a location
outside the Dallas/Forth Worth metropolitan area; or (iv) any material breach of
the Agreement by the Company.

         For convenience of reference, the date upon which any termination of
the employment of the Executive pursuant to Sections 5 or 6 shall be effective
shall be hereinafter referred to as the "Termination Date".

         SECTION 7. EFFECT OF TERMINATION OF EMPLOYMENT.

                  7.1 WITH CAUSE. Upon the termination of the Executive's
employment for Cause, neither the Executive nor the Executive's beneficiaries or
estate shall have any further rights to compensation under this Agreement or any
claims against the Company arising out of this Agreement, except the right to
receive (i) the unpaid portion of the Base Salary provided for in Section 4.1,
earned through the Termination Date (the "Unpaid Salary Amount"), (ii)
reimbursement for any expenses for which the Executive shall not have
theretofore been reimbursed, as provided in Section 4.6 (the "Expense
Reimbursement Amount") and (iii) payment for accrued and unused vacation time
(the "Vacation Amount"). All options granted to the Executive shall terminate on
the Termination Date, except in the event that the Executive has been terminated
for Cause due to Executive's death or resignation, in which case the Executive's
right to exercise his vested options shall expire ninety (90) days after the
Termination Date.

                                       7
<PAGE>

                  7.2. FOR DISABILITY. Upon the termination of the Executive's
employment as a result of a Disability, neither the Executive nor the
Executive's beneficiaries or estate shall have any further rights to
compensation under this Agreement or any claims against the Company arising out
of this Agreement, except the right to receive (i) the Unpaid Salary Amount,
(ii) the Expense Reimbursement Amount and (iii) the Vacation Amount. Following a
termination for a Disability, the Executive's right to exercise his vested
options shall not expire until ninety (90) days after the Termination Date.

                  7.3 WITHOUT CAUSE OR FOR GOOD REASON. Upon the termination of
the Executive's employment by the Company without Cause (and not as a result of
a Disability) or by the Executive for Good Reason, neither the Executive nor the
Executive's beneficiaries or estate shall have any further rights to
compensation under this Agreement or any claims against the Company arising out
of this Agreement, except the Executive shall have the right to receive (i) the
Unpaid Salary Amount, (ii) the Expense Reimbursement Amount, and (iii) the
Vacation Amount, and (iv) severance compensation equal to the then Base Salary
for six (6) months if such Termination Date is on or before January 31, 2005, or
twelve (12) months if such Termination Date is on or after February 1, 2005 ,
all of which is payable within thirty (30) days following the Termination Date.
The Executive shall not be entitled to receive any severance payment until and
after (i) he has consulted with qualified independent legal counsel regarding
his employment and termination with the Company, (ii) he has executed a full
general release of all claims against the Company, its affiliates, officers,
directors, employees, agents and representatives, in form and substance
satisfactory to the Company, and delivered such general release to the Company,
and (iii) all applicable waiting periods, if any, with respect to the
irrevocable nature of the general release has have elapsed. Following a
termination not for Cause or by the Executive for Good Reason, the Executive's
right to exercise his vested options shall not expire until ninety (90) days
after the Termination Date (collectively, the "General Release Requirement").

                                       8
<PAGE>

7.4 CHANGE OF CONTROL. Upon the termination of this Agreement by the Executive
in connection with a Change of Control and in accordance with Section 6.3,
neither the Executive nor the Executive's beneficiaries or estate shall have any
further rights to compensation under this Agreement or any claims against the
Company arising out of this Agreement, except the Executive shall have the right
to receive (i) the Unpaid Salary Amount, (ii) the Expense Reimbursement Amount,
(iii) the Vacation Amount, and (iv) severance compensation equal to the Base
Salary for the greater of (x) the remaining term of this Agreement (as if this
Agreement was not terminated) and (y) two (2) years. The Executive shall not be
entitled to receive any severance payment until and after he has complied with
the General Release Requirement. For the purpose of defining the Executive's
right to stock options, the Executive's termination of employment for a Change
of Control shall be equivalent to an involuntary termination of employment. The
Executive's right to his vested options shall not expire until ninety (90) days
after the Termination Date.

         SECTION 8. RESTRICTIVE COVENANTS.

                  8.1 CERTAIN DEFINITIONS. For purposes of this Section 8, the
following terms shall have the following meanings:

                    "COMPETITIVE ACTIVITY" means any activity conducted in the
Restricted Area which competes with any substantial aspect or part of Employer's
business whether as a proprietor, partner, shareholder, owner, member, employer,
employee, independent contractor, venturer or otherwise.

                    "COMPETITOR" means any Person, other than Employer or its
successor, which at any time during the Restriction Period engages in any
Competitive Activity.

                    "CONFIDENTIAL INFORMATION" means all information of or
relating to Employer, its business or practice, which is not generally known or
available to the public (whether or not in written or tangible form) including,
without limitation, customer lists,

                                       9
<PAGE>

supplier lists, processes, know-how, trade secrets, pricing policies and other
confidential business information.

                  "CONFIDENTIAL MATERIALS" means any and all documents, records,
reports, lists, notes, plans, materials, customer lists, distributor lists,
programs, software, disks, recordings, manuals, correspondence, memoranda,
magnetic media or any other tangible media (including, without limitation,
copies or reproductions of any of the foregoing) in which any Confidential
Information may be contained.

                  "EMPLOYER" means Parent, Employer and its Subsidiaries,
whether now or in the future.

                  "PERSON" means an individual, proprietorship, partnership,
joint venture, corporation, limited liability company, association, trust,
estate, unincorporated organization, a government or any branch, subdivision,
department or agency thereof, or any other entity.

                  "PERSONNEL" means any and all employees, contractors, agents,
consultants or other Persons rendering services to Employer for compensation in
any form, whether employed by or independent of Employer.

                  "RESTRICTED AREA" means the United States, Canada and Asia and
their respective territories and possessions, and worldwide with respect to any
Competitive Activity involving the Internet, World Wide Web, telemarketing or
other electronic or similar media.

                  "RESTRICTION PERIOD" means the period of time, commencing on
the date hereof and expiring two (2) years after the termination of Executive's
employment with Employer pursuant to this Agreement, voluntarily or
involuntarily, for any reason whatsoever, subject to extension pursuant to
Section 8.6 below.

                  8.2 CONFIDENTIALITY.

                  (a) CONFIDENTIAL INFORMATION. Subject to Section 8.2(c):

                                       10
<PAGE>

                  (1) DUTY TO MAINTAIN CONFIDENTIALITY. Executive shall maintain
in strict confidence and duly safeguard to the best of his ability any and all
Confidential Information in his possession or under his control.

                  (2) COVENANT NOT TO DISCLOSE, USE OR EXPLOIT. Except as
reasonably necessary to perform his duties, Executive shall not, directly or
indirectly, disclose, divulge or otherwise communicate to anyone or use or
otherwise exploit for the benefit of anyone, other than Employer, any
Confidential Information.

                  (3) CONFIDENTIAL MATERIALS. All Confidential Information and
Confidential Materials are and shall remain the exclusive property of Employer
and no Confidential Materials may be copied or otherwise reproduced, removed
from the premises of Employer or entrusted to any Person (other than Employer or
the Personnel entitled to such materials) by Executive, except as reasonably
necessary to perform his duties, without prior written permission from Employer.

                  (b) SURVIVAL OF COVENANTS. Notwithstanding anything herein to
the contrary, the covenants set forth in this Section 8.2 shall survive the
termination of this Agreement and any other agreement among any or all of the
parties hereto (regardless of the reason for such termination), unless
terminated by a written instrument that expressly terminates by specific
reference the covenants set forth in this Section 8.2.

                  (c) PERMITTED ACTIVITIES. If Executive receives a request or
demand for Confidential Information (whether pursuant to a discovery request,
subpoena or otherwise), Executive shall immediately give Employer written notice
thereof and shall exert his best efforts to resist disclosure, within the limits
of the law, including, without limitation, by fully cooperating and assisting
Employer in whatever efforts it may make to resist or limit disclosure or to
obtain a protective order or other appropriate remedy to limit or prohibit
further disclosure or use of such Confidential Information. If Executive
complies with the preceding sentence but nonetheless becomes legally compelled
to disclose Confidential

                                       11
<PAGE>

Information, Executive shall disclose only that portion of the Confidential
Information that he is legally compelled to disclose.

                  8.3 COVENANT NOT TO COMPETE. During the Restriction Period,
Executive shall not, directly or indirectly, whether as a sole practitioner,
owner, partner, shareholder, investor, employee, employer, venturer, independent
contractor, consultant or other participant, (i) own, manage, invest in or
acquire any economic stake or interest in any Person involved in a Competitive
Activity, (ii) derive economic benefit from or with respect to any Competitive
Activity or (iii) otherwise engage or participate in any manner whatsoever in
any Competitive Activity; provided, however, this Section 8.3 shall not restrict
Executive from owning less than 2% of the publicly traded debt or equity
securities issued by a corporation or other entity or from having any other
passive investment that creates no conflict of loyalty or interest with any duty
owed to Employer. Executive shall be deemed to have derived economic benefit in
violation of this Section 8.3 if, among other things, any of his compensation or
income is in any way related to any Competitive Activity conducted by any
Person. Further, during the Restriction Period Executive shall not directly or
indirectly advance, cooperate in or help or aid any Competitor in the conduct of
any Competitive Activity.

                  8.4 COVENANT NOT TO INTERFERE. During the Restriction Period,
Executive shall not, directly or indirectly, recruit, solicit or otherwise
induce or influence any Personnel of Employer to discontinue, reduce the extent
of, discourage the development of or otherwise harm such Personnel's
relationship or commitment to Employer. Conduct prohibited under this Section
8.4 shall include, without limitation, seeking to employ or causing, aiding,
inducing or influencing a Competitor to employ or seek to employ any Personnel
of Employer.

                  8.5 EQUITABLE RELIEF. Each of the parties acknowledges that
the provisions and restrictions of this Section 8 are reasonable and necessary
for the protection of the legitimate interests of Employer. Each of the parties
further acknowledges that the

                                       12
<PAGE>

provisions and restrictions of this Section 6 are unique and that any breach or
threatened breach of any of such provisions or restrictions will provide
Employer with no adequate remedy at law, and the result will be irreparable harm
to Employer. Therefore, the parties hereto agree that upon a breach or
threatened breach of the provisions or restrictions of this Section 8, Employer
shall be entitled, in addition to any other rights and remedies which may be
available to it, to institute and maintain proceedings at law or in equity, to
recover damages, to obtain an equitable accounting of all earnings, profits or
other benefits resulting from such breach or threatened breach and to obtain
specific performance or a temporary and permanent injunction.

                  8.6 FULL RESTRICTION PERIOD. If Executive violates any
restrictive covenant contained herein and Employer institutes action for
equitable relief, Employer, as a result of the time involved in obtaining such
relief, shall not be deprived of the benefit of the full Restriction Period.
Accordingly, the Restriction Period shall be deemed to have the duration
specified in Section 8.1, computed from and commencing on the date on which
relief is granted by a final order from which there is no appeal, but reduced,
if applicable, by the length of time between the date the Restriction Period
commenced and the date of the first violation of any restrictive covenant by
Executive.

                  8.7 EQUITABLE ACCOUNTING. Employer shall have the right to
demand and receive equitable accounting with respect to any consideration
received by Executive in connection with activities in breach of the restrictive
covenants herein, and Employer shall be entitled to payment from Executive of
such consideration on demand.

                  8.8 PRIOR BREACHES. Neither the expiration of the Restriction
Period nor the termination of the status of any Customer or Personnel as such
(whether or not due to a breach hereof by Executive) shall preclude, limit or
otherwise affect the rights and remedies of Employer against Executive based
upon any breach hereof during the Restriction Period or before such status of
Customer or Personnel terminated.

                                       13
<PAGE>

                  8.9 NONCIRCUMVENTION OF COVENANTS. Executive acknowledges and
agrees that, for purposes of this Agreement, an action shall be considered to
have been taken by Executive "indirectly" if taken by or through, with
Executive's knowledge, (a) any member of his immediate family , (b) any Person
owned or controlled, solely or with others, directly or "indirectly" by
Executive or a member of his family, (c) any Person of which he is an owner,
partner, employer, employee, trustee, independent contractor or agent, (d) any
employees, partners, owners or independent contractors of any such Person or (e)
any other one or more representatives or intermediaries, it being the intention
of the parties that Executive shall not directly or indirectly circumvent any
restrictive covenant contained herein or the intent thereof.

                  8.10 NOTICE OF RESTRICTIONS. During the Restriction Period,
Executive shall notify each prospective employer, partner or co-venturer of the
restrictions contained in this Agreement. Employer is hereby authorized to
contact any of such Persons for the purpose of providing notice of such
restrictions.

                  8.11 REDUCTION OF RESTRICTIONS BY COURT ACTION. Each of the
provisions hereof including, without limitation, the periods of time, geographic
areas and types and scopes of duties of, and restrictions on the activities of,
the parties hereto specified herein are and are intended to be divisible, and if
any portion thereof (including any sentence, clause or word) shall be held
contrary to law or invalid or unenforceable in any respect in any jurisdiction,
or as to one or more periods of time, areas or business activities or any part
thereof, the remaining provisions shall not be affected but shall remain in full
force and effect, and any such invalid or unenforceable provision shall be
deemed, without further action on the part of any party hereto or other Person,
modified and amended to the minimum extent necessary to render the same valid
and enforceable in such jurisdiction.

                  8.12 FAIRNESS OF RESTRICTIONS. Executive acknowledges and
agrees that (a) compliance with the restrictive covenants set forth herein would
not prevent him from earning a living that involves his training and skills
without relocating, but only from

                                       14
<PAGE>

engaging in unfair competition with, misappropriating a corporate opportunity
of, or otherwise unfairly harming Employer and (b) the restrictive covenants set
forth herein are intended to provide a minimum level of protection necessary to
protect the legitimate interests of Employer. In addition, the parties
acknowledge that nothing herein is intended to or shall, limit, replace or
otherwise affect any other rights or remedies at law or in equity for protection
against unfair competition with, misappropriation of corporate opportunities of,
disclosure of confidential and proprietary information of, or defamation of
Employer, or for protection of any other rights or interest of Employer.

         SECTION 9. MISCELLANEOUS.

                  9.1 GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO BE 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.

                  9.2 ENTIRE AGREEMENT. This Agreement (together with the
exhibits attached hereto, which hereby are incorporated by reference) contains
the entire agreement of the parties hereto relating to the employment of
Executive by the Company and the other matters discussed herein and supersedes
all prior agreements and understandings with respect to such subject matter, and
the parties hereto have made no agreements, representations or warranties
relating to the subject matter of this Agreement which are not set forth herein.

                  9.3 WITHHOLDING TAXES. The Company may withhold from any
compensation or other benefits payable under this Agreement all federal, state,
city or other taxes as shall be required pursuant to any law or governmental
regulation or ruling.

                  9.4 SUPPLEMENTS AND AMENDMENTS. This Agreement may be
supplemented or amended only upon the written consent of each of the parties
hereto.

                  9.5 ASSIGNMENT. Except as expressly provided below, this
Agreement shall not be assignable, in whole or in part, by either party without
the prior written consent

                                       15
<PAGE>

of the other party. The Company may, without the prior written consent of
Executive, assign its rights and obligations under this Agreement to any other
corporation, firm or other business entity with or into which the Company may
merge or consolidate, or to which the Company may sell or transfer all or
substantially all of its assets, or of which 50% or more of the equity
investment and of the voting control is owned, directly or indirectly, by, or is
under common ownership with, the Company; provided, however, that such
assignment may be made without Executive's prior written consent only if (a)
such assignment has a valid business purpose and is not for the purpose of
avoiding the Company 's obligations hereunder or Executive's realization of the
benefits of this Agreement and (b) the assignee expressly assumes in writing all
obligations and liabilities to Executive hereunder. The Company will cause any
purchaser of all or substantially all of the assets of the Company, by agreement
in form and substance reasonably satisfactory to Executive, to expressly assume
and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such purchase had taken
place. This Agreement shall be binding upon and inure to the benefit of the
Company and their respective successors and permitted assigns. This Agreement
and all rights of Executive hereunder shall inure to the benefit of and be
enforceable by Executive's heirs, personal or legal representatives and
beneficiaries. If this Agreement is terminated pursuant to clause (a) of Section
8.1 hereof, all amounts payable pursuant to clause (a) of Section 8.2 hereof
shall be paid to Executive's designated beneficiaries or, if no such
beneficiaries have been designated, to Executive's estate.

                  9.6 NO WAIVER. No term or condition of this Agreement shall be
deemed to have been waived, nor shall there be any estoppel to enforce any
provisions of this Agreement, except by a statement in writing signed by the
party against whom enforcement of the waiver or estoppel is sought. Any written
waiver shall not be deemed a continuing waiver unless specifically stated, shall
operate only as to the specific term or condition

                                       16
<PAGE>

waived and shall not constitute a waiver of such term or condition for the
future or as to any act other than that specifically waived.

                  9.7 SEVERABILITY. The provisions of this Agreement are
severable, and if any one or more provisions may be determined to be judicially
unenforceable and/or invalid by a court of competent jurisdiction, in whole or
in part, the remaining provisions shall nevertheless be binding, enforceable and
in full force and effect.

                  9.8 TITLES AND HEADINGS. The titles and headings of the
various Sections of this Agreement are intended solely for convenience of
reference and not intended for any purpose whatsoever to explain, modify or
place any construction upon any of the provisions hereof.

                  9.9 ATTORNEYS' FEES. In the event that any party hereto brings
suit against the other party, based upon or arising out of a breach or violation
of this Agreement, each party hereto agrees that the party who is successful on
the merits, upon final adjudication from which no further appeal can be taken or
is taken within the time allowed by law, shall be entitled to recover his or its
reasonable attorneys, fees and expenses from the party which is not successful.

                  9.10 INJUNCTIVE RELIEF. Executive agrees that it would be
difficult to compensate the Company fully for damages for any violation of the
provisions of Sections 6 and 8.3 hereof. Accordingly, Executive specifically
agrees that the Company shall be entitled to temporary and permanent injunctive
relief to enforce such provisions of this Agreement. This provision with respect
to injunctive relief shall not, however, diminish the right of the Company to
claim and recover damages in addition to injunctive relief.

                  9.11 NOTICES. For the purpose of this Agreement, notices and
all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when hand delivered (which shall include
personal delivery and delivery by courier, messenger or overnight delivery
service) or mailed by certified mail, return receipt requested, postage prepaid,
addressed as follows:

                                       17
<PAGE>

                  If to Executive: At his home address in accordance with the
Company's records.

                  If to the Company:

                  Natural Health Trends Corp.
                  12901 Hutton Drive
                  Dallas, Texas 75234
                  Attention: President

                  If to the Executive:

                  Chris Sharng
                  1352 Saddlebrook Court
                  Bartonville, Texas 76226

or to such other address of which either party gives notice to the other party
in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

                  9.12 COUNTERPARTS. This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

                  9.13 JURISDICTION. Each of the parties hereto hereby
irrevocably consents and submits to the exclusive jurisdiction of the courts of
the State of Texas, located in Dallas County, and of the United States District
Court for the Northern District of Texas in connection with any suit, action or
other proceeding concerning the interpretation of this Agreement or enforcement
of Sections 8 or 9 of this Agreement. The Executive waives and agrees not to
assert any defense that the court lacks jurisdiction, venue is improper,
inconvenient forum or otherwise. The Executive waives the right to a jury trial
and agrees to accept service of process by certified mail at the Executive's
last known address.

                  9.14 POST EMPLOYMENT OBLIGATIONS. (a) All records, files,
lists, including computer generated lists, drawings, documents, equipment and
similar items relating to the Company's business which the Executive shall
prepare or receive from the Company shall remain the Company's sole and
exclusive property. Upon termination of this Agreement, the

                                       18
<PAGE>

Executive shall promptly return to the Company all property of the Company in
his possession. The Executive further represents that he will not copy or cause
to be copied, print out or cause to be printed out any software, documents or
other materials originating with or belonging to the Company. The Executive
additionally represents that, upon termination of his employment with the
Company, he will not retain in his possession any such software, documents or
other materials.

                  (b) The Executive agrees that both during and after his
employment he shall, at the request of the Company, render all assistance and
perform all lawful acts that the Company considers necessary or advisable in
connection with any litigation involving the Company or any director, officer,
employee, shareholder, agent, representative, consultant, client or vendor of
the Company.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date set forth above.

                                        NATURAL HEALTH TRENDS CORP.

                                        By:____________________________
                                           Name:
                                           Title:

                                        ________________________________
                                        Chris Sharng

                                       19

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