EXHIBIT 10.26
ROYALTY AGREEMENT
This Royalty Agreement is entered into by and between Natural Health Trends Corp. ("the Company") and Steve
Francisco and Dan Catto (individually "Distributor" and collectively "Distributors") effective the 1st day of March
2005 (the "Effective Date") in which the parties agree as follows:
1.0 RECITALS
1.1 The Company is an international direct selling organization and operates, among other ways, through its
wholly owned subsidiary Lexxus International, Inc., which distributes certain cosmetic, quality of life, and other
products through independent distributors worldwide,
1.2 Distributors are each independent distributors of the Company and have had and continue to have substantial
knowledge and experience in distributing the Company's products throughout various international markets,
1.3 The parties desire to establish a monthly royalty payment schedule (the "Royalty Payments") to compensate
Distributors for certain marketing and distribution efforts undertaken,
1.4 The Company entered into an oral agreement (the "Oral Agreement") with the Distributors on or about
December 1, 2003 (the "Inception Date"). This Royalty Agreement is intended to clarify and memorialize the
Oral Agreement from its Inception Date.
1.5 Therefore, for good and valuable consideration, including the promises made by each party and the acts
taken in accordance therewith, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:
2.0 DEFINITIONS
2.1 "KGC" as used herein shall refer to KGC Networks Pte. Ltd., a private company organized and
incorporated in and under the laws of the Republic of Singapore of which the Company is a 51% owner and
Bannks Foundation is a 49% owner of the issued and outstanding capital stock.
2.2 "The March 17, 2004 Agreement" as used herein shall refer to that certain agreement dated March 17, 2004
and effective as of November 17, 2003 by and between the Company and Bannks Foundation pertaining to the
ownership, c