| 2.1 | “Balance of the Purchase      Price” shall have the meaning ascribed thereto in Section 6.5      hereof. |
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| 2.2 | “Board” shall mean the      Board of Directors of Global SourcesLtd. |
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| 2.3 | “Code” shall mean the      Internal Revenue Code of 1986, asamended. |
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| 2.4 | “Company” shall mean      Global Sources Ltd. and any of itsSubsidiaries. |
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| 2.5 | “Deceased Director”      shall mean a deceased Eligible Director who, prior to his or her death,      had previously exercised his or her Purchase Right(s) in respect of which      payment of the Balance of the Purchase Price is not yet due and has not      yet been made as at the time of his or her  death. |
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| 2.6 | “Deposit” shall have the      meaning ascribed thereto in Section 6.5hereof. |
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| 2.7 | “Director” shall mean      any person who is a member of the Board of Directors of the      Company. |
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| 2.8 | “Eligible Director”      shall be any Director of the Company who has attended at least      seventy-five per cent (75%) of the Board meetings held in the previous      calendar year. |
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| 2.9 | “Exchange Act” shall      mean the Securities Exchange Act of 1934, as  amended. |
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|   |   |
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| 2.10 | “Executor” shall mean a      person recognized by the Board as the duly authorized representative of an      estate of a deceased Director. |
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| 2.11 | “Exercise Price” shall      mean the price per Share at which a Purchase Right may be exercised, being      the Fair Market Value of the Shares as determined in accordance with      Section 2.13 hereof. |
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| 2.12 | “Expiration Date” in      relation to a Purchase Right shall mean February 28 of the same year in      which such Purchase Right isgranted. |
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| 2.13 | “Fair Market Value”      shall mean the average closing sales price for the last five (5) trading      days of the previous calendar year of publicly-traded Shares as quoted on      the national securities exchange on which Shares are listed (if the Shares      are so listed) or on the Nasdaq Stock Market System (if the Shares are      regularly quoted on the Nasdaq Stock Market System), or, if not so listed      or regularly quoted, the average of the high bid and low asked price for      the last five (5) trading days of the previous calendar year of      publicly-traded Shares in the over-the-counter market, or, if such bid and      asked prices shall not be available, as reported by any nationally      recognized quotation service selected by the  Board. |
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| 2.14 | “Grant Date” shall mean      January 1 of each calendar year. |
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| 2.15 | “Nasdaq” shall mean the      Nasdaq National Stock Market. |
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|   |   |
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| 2.16 | “Permanent Disability”      shall mean the condition of an Eligible Director who is unable to      participate as a member of the Board by reason of any medically determined      physical or mental impairment that can be expected to result in death or      which can be expected to last for a continuous period of not less than      twelve (12) months. |
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| 2.17 | “Purchase Price” shall      be the Exercise Price multiplied by the number of whole Shares with      respect to which a Purchase Right may be  exercised. |
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| 2.18 | “Purchase Right” shall      mean a right to purchase Shares granted pursuant to the    Plan. |
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| 2.19 | “Securities Act” shall      mean the Securities Act of 1933, asamended. |
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| 2.20 | “Shares” shall mean the      common shares, One United States Cent (US$0.01) par value per share, of      the Company. |
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| 2.21 | “Subsidiaries” shall      have the meaning provided in Section 425(f) of the  Code. |
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| 3.1 | General. The      Plan shall be administered by the Board in accordance with the express      provisions of the Plan. |
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| 3.2 | Powers of the      Board. The Board shall have full and complete authority to adopt      such rules and regulations and to make all other determinations not      inconsistent with the Plan as may be necessary for the administration of      the Plan. |
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| 5.1 | Grants of Purchase      Rights. On each Grant Date, to the extent that Shares remain      available for the grant of Purchase Rights under the Plan, each Eligible      Director on such date shall automatically receive the grant of a Purchase      Right to purchase twenty thousand (20,000)  Shares. |
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| 5.2 | Adjustment of      Grants. The number of Shares set forth in Section 5.1, to which      Purchase Rights shall be granted shall be subject to adjustment as      provided in Section 9.1 hereof. |
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| 5.3 | Compliance With Rule      16b-3. If the Company is then subject to the requirements of      Section 16 of the Exchange Act, the terms for the grant of Purchase Rights      to an Eligible Director may only be changed if permitted under Rule 16b-3      under the Exchange Act and, accordingly, the formula for the grant of      Purchase Rights may not be changed or otherwise modified more than once in      any six (6) month period, other than to comport with changes in the Code,      the Employee Retirement Income Security Act, or the rules and regulations      thereunder. |
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| 6.1 | Term. The term      of each Purchase Right shall expire on the Expiration Date, subject to      earlier termination in accordance with Articles VI and  X. |
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| 6.2 | Restriction on      Exercise. The Purchase Right must be exercised prior to the      Expiration Date, or at such time or times and subject to such terms and      conditions as shall be determined by the Board at or prior to grant;      provided, however, that in the case of the Eligible Director's death or      Permanent Disability, the Purchase Rights held by him or her shall become      immediately exercisable, unless a longer exercise period is otherwise      determined by the Board at or prior to grant. Any Purchase Right that has      not been exercised by the Expiration Date shall be forfeited. The Board      may waive any installment exercise provision at any time in whole or in      part based on performance and/or such other factors as the Board may      determine in its sole discretion; provided, however, that no Purchase      Right shall be exercisable pursuant to such waiver until the requisite      approval of the waiver by the Company's shareholders shall have been      obtained. |
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| 6.3 | Exercise Price.      The Exercise Price for each Share subject to a Purchase Right shall be the      Fair Market Value of the Shares as determined in accordance with Section      2.13 hereof. |
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| 6.4 | Issuance of      Shares. All of the Shares to be issued pursuant to the exercise of      a Purchase Right shall be issued only at the end of four (4) years after      February 28 of the year in which such Purchase Right is exercised or in      accordance with Section 6.6 hereof in the case of a Deceased Director. (By      way of illustration, if a Purchase Right is exercised on or before      February 28, 2006, then all of the Shares to be issued pursuant to such      exercise shall be issued only on February 28, 2010.) The resignation of a      Director following his or her exercise of a Purchase Right shall not cause      a forfeiture of the unissued Shares, provided that the Balance of the      Purchase Price is paid in full on or before the due date thereof (as set      out in Section 6.5 hereof). |
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| 6.5 | Manner of Exercise and      Payment. A Purchase Right shall be exercised by payment of ten per      cent (10%) of the total Purchase Price of the Shares being purchased      (“Deposit”), on or      before the Expiration Date. The Deposit shall be not be refundable under      any circumstances whatsoever, except in accordance with Section 6.6 hereof      in the case of a Deceased Director. The balance of ninety per cent (90%)      of the total Purchase Price of the Shares being purchased (“Balance of the Purchase      Price”) shall be paid in full on or  before |
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|   | the      expiration of the holding period for the Shares (as determined in      accordance with Section 6.4 hereof or in accordance with Section 6.6      hereof in the case of a Deceased Director), failing which the Deposit      shall be forfeited, any and all rights under the Purchase Right and to the      issuance of the Shares shall automatically lapse and expire, and the      Shares shall not be issued. An Eligible Director may exercise a Purchase      Right with respect to all or less than all of the Shares for which the      Purchase Right may then be exercised, but an Eligible Director must      exercise the Purchase Right in fullShares. |
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| 6.6 | Death of an Eligible      Director.  Notwithstanding anything which may be to the      contrary herein, in the case of a Deceased Director, the Executor for the      estate of such Deceased Director shall pay the Balance of the Purchase      Price in full within six (6) months of the death of such Deceased      Director; otherwise, any and all rights under the Purchase Right(s)      previously exercised by such Deceased Director and to the issuance of the      Shares shall automatically lapse and expire, and the Shares shall not be      issued, but the Deposit(s) previously paid shall be refunded to the estate      of such Deceased Director or as otherwise directed by his or her Executor.      If and provided the Balance of the Purchase Price is paid as aforesaid,      the Shares being purchased shall then be issued to the estate of such      Deceased Director or as otherwise directed by his or her      Executor. |
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| 6.7 | Payment Method.      The Purchase Price of Shares purchased pursuant to a Purchase Right or      portion thereof, shall be paid in United States Dollars, in cash, or by      check, bank draft or money order payable to the Company, or by wire or      telegraphic transfer. |
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| 6.8 | Transferability.      No Purchase Right shall be transferable otherwise than by will or the laws      of descent and distribution or pursuant to a qualified domestic relations      order as defined by the Code or Title I of the Employee Retirement Income      Security Act, or the rules thereunder. A Purchase Right shall be      exercisable during the Eligible Director's lifetime only by the Eligible      Director, his or her guardian or legal  representative. |
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| 6.9 | Termination of      Membership on the Board. If an Eligible Director's membership on      the Board terminates for any reason other than such Eligible Director's      resignation or death, the unexercised portion of any Purchase Right held      on the date of termination may be exercised in whole or in part at any      time within thirty (30) days after the date of such termination (but in no      event after the term of the Purchase Right expires) and shall thereafter      terminate. Any Shares issued pursuant to previously-exercised Purchase      Rights or upon exercise of Purchase Rights following termination as a      Director shall be issued according to Section  6.4. |
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| 7.1 | Delivery of      Shares. The obligation of the Company to issue or transfer and      deliver Shares for exercised Purchase Rights under the Plan shall be      subject to all applicable laws, regulations, rules, orders and approvals      which shall then be in effect. |
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| 7.2 | Holding of Shares      After Exercise of Purchase Right. By exercising a Purchase Right,      the Eligible Director shall be deemed to have represented and agreed, for      him or her, and for his or her permitted transferees hereunder, that none      of the Shares purchased upon exercise of the Purchase Right shall be      acquired with a view to any sale, transfer or distribution of the Shares      in violation of the Securities Act, and the person exercising a Purchase      Right shall, if and upon being requested by the Company, furnish evidence      satisfactory to the Company to that effect, and/or a written agreement or      undertaking to indemnify the Company in the event of any violation of the      Securities Act by such person. |
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| 9.1 | Proportionate      Adjustments. If the outstanding Shares are increased, decreased,      changed into or exchanged into a different number or kind of Shares or      securities of the Company through reorganization, recapitalization,      reclassification, stock dividend, bonus issue, stock split, reverse stock      split or other similar transaction, an appropriate and proportionate      adjustment shall be made to the maximum number and kind of Shares (a) as      to which Purchase Rights already granted under the Plan, but not yet      exercised, may be exercised; or (b) which are to be issued pursuant to a      Purchase Right already granted and exercised under the Plan.      Notwithstanding the foregoing, there shall be no adjustment for the      issuance of Shares on conversion of notes, preferred stock or exercise of      warrants or Shares issued by the Board for such consideration as the Board      deems appropriate. |
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| 9.2 | Dissolution or      Liquidation. Upon the dissolution or liquidation of the Company, or      upon a reorganization, merger or consolidation of the Company with one or      more corporations as a result of which the Company is not the surviving      corporation, or upon a sale of substantially all of the property or more      than eighty per cent (80%) of the then outstanding Shares of the Company      to one (1) or more previous business entities, the Company shall give to      each Eligible Director at the time of adoption of the plan for      liquidation, dissolution, merger or sale  either:- |
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|   | (a) | a      reasonable time thereafter within which to exercise the Purchase Right      prior to the effective date of such liquidation or dissolution, merger or      sale; or |
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|   | (b) | the      right to exercise the Purchase Right as to an equivalent number of Shares      of equity securities of the business entity succeeding the Company or      acquiring its business by reason of such liquidation, dissolution, merger,      consolidation or reorganization. |
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| 10.1 | Amendments. The      Board may at any time amend or revise the terms of the Plan, provided no      such amendment or revision shall, unless appropriate approval of such      amendment or revision by the Company's shareholders is      obtained: |
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|   | (a) | materially      increase the maximum number of Shares which may be sold pursuant to      Purchase Rights granted under the Plan, except as permitted under the      provisions of Article IX; |
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|   | (b) | decrease      the minimum Exercise Price set forth in Article  VI; |
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|   | (c) | extend      the term of Purchase Rights provided for in Article VI or decrease the      holding period of any Shares to be issued pursuant to the exercise of a      Purchase Right; or |
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|   |  (d) | permit      the granting of Purchase Rights to anyone other than an Eligible      Director. |
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| 10.2 | Termination.      The Board at any time may suspend or terminate the Plan.  The      Plan, unless sooner terminated, shall terminate on the tenth (10th)      anniversary of its first adoption by the Board (i.e. on August 4, 2010).      Termination of the Plan shall not affect Purchase Rights previously      granted and/or exercised thereunder. No Purchase Right may be granted      under the Plan while the Plan is suspended or after it is      terminated. |
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| 10.3 | Consent of      Holder. No amendment, suspension or termination of the Plan shall,      without the approval or consent of a holder of Purchase Rights or an      Eligible Director (or his or her guardian, legal representative or      Executor, as the case may be), adversely alter or impair any rights or      obligations under any Purchase Right theretofore granted under the Plan.      For the avoidance of doubt, any amendments or updates made to this Plan      may be made applicable retroactively to a holder of Purchase Rights or an      Eligible Director (or his or her guardian, legal representative or estate,      as the case may be), subject to and with the approval or consent of such      person (or his or her guardian, legal representative or Executor, as the      case may be). |
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| 11.1 | Privilege of Stock      Ownership. No Eligible Director entitled to exercise any Purchase      Right granted under the Plan shall have any of the rights or privileges of      a shareholder of the Company with respect to any Shares issuable upon      exercise of a Purchase Right until he or she is entered as a shareholder      in the Company’s register ofshareholders. |
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| 11.2 | Plan Expenses.      Any expenses incurred in the administration of the Plan shall be borne by      the Company. |
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| 11.3 | Use of      Proceeds. Payments received from an Eligible Director pursuant to      the exercise of Purchase Rights shall be used for general corporate      purposes of the Company. |
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| 11.4 | Governing Law.      The Plan has been adopted under the laws of Bermuda. The Plan and all      Purchase Rights which may be granted hereunder and all matters related      thereto, shall be governed by and construed and enforceable in accordance      with the laws of Bermuda as it thenexists. |
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