Interim Chief Executive Officer Employment Agreement between Natural Health Trends Corp. and Robert H. Hesse

Summary

Natural Health Trends Corp. has appointed Robert H. Hesse as Interim Chief Executive Officer under this agreement. Mr. Hesse will perform typical CEO duties, help develop a financial plan, support the search for a permanent CEO, and ensure a smooth leadership transition. He will receive $2,000 per day and a $300,000 retention bonus, with half paid upfront and the remainder after a successful transition. The agreement lasts until a new CEO is hired, expected by July 1, 2006. Mr. Hesse will also receive executive benefits and expense reimbursements during his term.

EX-10.2 3 ex10_2.txt EXHIBIT 10.2 Exhibit 10.2 NATURAL HEALTH TRENDS CORP. 2050 Diplomat Drive Dallas, TX 75234 March 1, 2006 Robert H. Hesse c/o Natural Health Trends Corp. 2050 Diplomat Drive Dallas, TX 75234 Dear Bob: In connection with your continued employment as the Interim Chief Executive Officer of Natural Health Trends Corp. (the "Company"), we are pleased to offer you the following terms and conditions: Title: Interim Chief Executive Officer Duties: Duties and responsibilities customary for a chief executive officer, including without limitation: -- Develop a 2006 financial plan for the Company; -- Manage the Company to achieve the financial plan; -- Support the Company's Search Committee in its recruitment of a permanent CEO; -- Effect a seamless transition to a permanent CEO; -- Develop a corporate culture for all employees and distributors focused on implementing professional conduct and best practices, particularly with respect to legal and regulatory compliance; -- Actively confer with the Company's Board of Directors (the "Board") on all significant operational, financial and strategic issues and be responsive to the Board's reasonable requests and direction; -- Assist the Board in resolving all matters relating to former management and related issues; and -- Maintain positive relations with investors, market makers and analysts, subject to compliance with applicable laws, rules and regulations. Term: Term of engagement concludes when new CEO commences employment - most likely by July 1, 2006 Base Pay: $2,000 per day Retention Bonus: $300,000, $150,000 of which will be paid on the date hereof, and $150,000 shall be paid within 5 days following the last day of the Term, assuming your duties are discharged and transition is effected to the reasonable satisfaction of the Board Benefits: Travel and entertainment as available to senior executives (in accordance with prior practice) and reasonable reimbursement of rent for Dallas apartment during the Term We look forward to continuing to work together to make Natural Health a success. NATURAL HEALTH TRENDS CORP. By /s/ SIR BRIAN WOLFSON -------------------------------- Name: Sir Brian Wolfson Title: Chairman of the Board Agreed to and Accepted: /s/ ROBERT H. HESSE - -------------------------------- Robert H. Hesse cc: The Board of Directors Natural Health Trends Corp. 2