Document:

GUARANTY

      IN  CONSIDERATION  of the  investment  of $200,000  being made by IRA TERK

("Buyer"),  in Global Sources Limited,  a Delaware  corporation (the "Company"),

the undersigned  John Mazzuto and James Strupp (the  "Guarantors"),  jointly and

severally,  hereby  guaranty  to Buyer  full and  prompt  payment  of the demand

redemption  amount  referred to in Section 5(d) of the Stock Purchase  Agreement

dated as of the date hereof between the Company and Buyer,  which Stock Purchase

Agreement is incorporated herein by reference and made a part hereof as if fully

set forth,  in accordance  with terms of said Section 5(d). For  convenience,  a

copy of Section 5(d) concerning the demand  redemption amount is attached hereto

as Exhibit A.  Capitalized  terms stated  herein and not defined  shall have the

meaning assigned to such terms in the Stock Purchase Agreement.

      Upon the failure of the Company to pay the demand redemption amount within

ten (10) business days of the date Buyer sends written  notice to Global Sources

Limited  of its  demand  redemption  request  via  facsimile  transmission,  the

liability  of the  undersigned  shall be  effective  immediately  and payable on

written  demand  made by  Buyer,  without  the  necessity  of any suit or action

against the Company or the  Guarantors.  No delay or omission in exercising  any

right hereunder shall operate as a waiver of such right or any other right.

      The  Guarantors  agree,  jointly  and  severally,  to pay Buyer the demand

redemption  amount  within three (3) business days of receiving  written  notice

from Buyer, via facsimile transmission, that the Company has not paid the demand

redemption amount within the ten (10) business day period as required. As stated

in the Stock Purchase

                                       1
<PAGE>

Agreement,  the demand  redemption  amount  shall be equal to $0.75 per share of

Common  Stock that the Buyer then owns and  demands  to be paid.  The  facsimile

number for  notice to John  Mazzuto is (631)  287-2683  and for James  Strupp is

(908) 273-2432.  A copy of any facsmile notice sent to Mr. Mazzuto or Mr. Strupp

shall be sent to  Martin  Eric  Weisberg,  Esq.,  Parker  Chapin  LLP,  at (212)

704-6157.

      Nothing contained in this Guaranty shall be deemed to establish or require

the  payment of  interest  to Buyer at a rate in excess of the  maximum  rate of

interest  permitted  by  govering  law.  In the event that the rate of  interest

required to be paid exceeds the maximum rate of interest  permitted by governing

law, the rate of interest required to be paid shall be automatically  reduced to

the maximum  rate  permitted  under the  governing  law and such excess shall be

returned with reasonably promptness by the Buyer to the undersigned guarantors.

      This Agreement shall be governed by and interpreted in accordance with the

laws of the State of Delaware.  The parties agree that any dispute arising under

or with respect to or in connection with this Agreement, whether during the term

of this  Agreement  or at any  subsequent  time,  shall be  resolved  fully  and

exclusively by binding  arbitration in accordance with the commercial rules then

in force of the American  Arbitration  Association  and the  proceedings  taking

place in New York, New York.  The parties agree to a panel of three  arbitrators

and  reasonable  attorneys fees and costs shall be awarded to Buyer in the event

that the  Guarantors,  or either of them,  is in default under the terms of this

Agreement.

      This Agreement  constitutes the entire  agreement among the parties hereto

with respect to the subject matter hereof. There are no restrictions,  promises,

warranties  or

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<PAGE>

undertakings,  other than those set forth or referred to herein.  This Agreement

supersedes all prior agreements and understandings among the parties hereto with

respect to the subject matter hereof.

      This Guaranty being made by the  Guarantors  shall inure to the benefit of

Buyer,  its successors and permitted  assigns,  and it shall be binding upon the

undersigned, their legal representatives, heirs and assigns.

      All pronouns and any variations  thereof refer to the masculine,  feminine

or neuter, singular or plural, as the context may require.

      This Guaranty may be executed in one or more  counterparts,  each of which

will be deemed an original and all of which together will constitute one and the

same instrument.  Notwithstanding  anything contained herein to the contrary, it

is expressly agreed that the Guaranty may be executed with facsimile signatures.

            [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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<PAGE>

      In Witness Whereof,  the Guarantors have caused this instrument to be duly

executed this 12th day of July, 2000.

                                        /s/ John Mazzuto
_____________________________           _____________________________
Witness                                 John Mazzuto

                                        /s/ James Strupp
_____________________________           _____________________________
Witness                                 James Strupp

                                       4
<PAGE>

STATE OF                )
                        )     ss:
COUNTY OF               )

     On this  ___ day of July,  2000,  before  me,  the  undersigned  personally
appeared JOHN MAZZUTO,  known to me (or satisfactorily  proven) to be the person
whose name is  subscribed  to the within  instrument  and  acknowledged  that he
executed the same for the purpose therein contained.

     In witness whereof I hereunto set my hand.

                                    ____________________________________
                                    Notary Public

                                    My Commission Expires: _____________

STATE OF                )
                        )     ss:
COUNTY OF               )

     On this  ___ day of July,  2000,  before  me,  the  undersigned  personally
appeared JAMES STRUPP,  known to me (or satisfactorily  proven) to be the person
whose name is  subscribed  to the within  instrument  and  acknowledged  that he
executed the same for the purpose therein contained.

     In witness whereof I hereunto set my hand.

                                    ____________________________________
                                    Notary Public

                                    My Commission Expires: _____________

                                       5
<PAGE>

                                    EXHIBIT A

Section 5(d) from the Stock Purchase Agreement.

d. Demand Redemption. If any "Event of Default" by the Company (as defined below
in subsection (e)) under the terms of this Agreement or the Registration  Rights
Agreement is continuing  for more than thirty (30) calendar  days,  Buyer may at
its sole option send written notice of a demand redemption to the Company.  Upon
receipt of the written notice from the Buyer,  the Company shall within ten (10)
business  days make a cash  payment to Buyer  equal to $0.75 per share of Common
Stock that the Buyer demands to be redeemed.  The cash payment to be made by the
Company upon  receipt of written  notice of the demand  redemption,  shall be in
addition to any remedies or liquidated damages to which the Investor is entitled
up to the date  written  notice of the  demand  redemption  is  received  by the
Company.  Prior to and as a further  condition of closing,  Mr. John Mazzuto and
Mr. James  Strupp,  shall agree to  guarantee  the demand  redemption  amount as
guarantors and shall agree to be jointly and severally  liable in the event that
the Company  cannot  satisfy the demand  redemption  request within the ten (10)
business  day period  mentioned  above,  and shall agree to pay Buyer the demand
redemption  amount  within three (3) business days of receiving  written  notice
from Buyer, via facsimile transmission, that the Company has not paid the demand
redemption amount within the ten (10) business day period as required.  Any time
on and after December 29, 2000 and prior to April 1, 2001,  whether or not there
is then  existing an "Event of Default" (as defined  below in  subsection  (e)),
Buyer may at its sole option send written  notice of a demand  redemption to the
Company;  it being  acknowledged and agreed that Buyer's option to give a notice
of demand  redemption  (as  provided in this  Section  5(d)) shall expire and be
without  further force and effect at April 1, 2001.  Upon receipt of the written
notice from the Buyer,  the Company  shall within ten (10)  business days make a
cash  payment to Buyer  equal to $0.75 per share of Common  Stock that the Buyer
demands to be redeemed.  The cash payment to be made by the Company upon receipt
of written notice of the demand redemption, shall be in addition to any remedies
or  liquidated  damages to which the Investor is entitled up to the date written
notice of the demand  redemption  is received by the Company.  Prior to and as a
further condition of closing, Mr. John Mazzuto and Mr. James Strupp, shall agree
to guarantee the demand  redemption  amount as guarantors  and shall agree to be
jointly and severally  liable in the event that the Company  cannot  satisfy the
demand  redemption  request  within the ten (10)  business day period  mentioned
above,  and shall agree to pay Buyer the demand  redemption  amount within three
(3)  business  days of  receiving  written  notice  from  Buyer,  via  facsimile
transmission,  that the Company has not paid the demand redemption amount within
the ten (10) business day period as required.

                                       6PURCHASE AGREEMENT
                               ------------------

      PURCHASE AGREEMENT, dated as of August 14, 2000 (this "Agreement"), by and
between GLOBAL SOURCES LIMITED,  a Delaware  corporation  (Bulletin Board Symbol
"GLSL"),  with offices located at 342 Madison Avenue,  Suite 1815, New York, New
York 10173 (the "Company"), and PETER LUSK, having an address at 99 Park Avenue,
Suite 2230, New York, New York 10016 (the "Investor").

      In consideration of the respective representations warranties,  covenants,
agreements and  conditions  hereinafter  set forth,  and intending to be legally
bound hereby, the parties hereto agree as follows:

     1.   THE PURCHASE AND SALE.

          (a)  Purchase  and Sale.  For and in  consideration  of payment to the
Company of an aggregate sum of $250,000  (the  "Purchase  Price"),  and upon the
terms and  conditions set forth in this  Agreement,  the Company shall issue and
sell to the Investor:

               (i) 500,000 shares (the "Shares") of the Company's  common stock,
$0.001 par value per share (the "Common Stock"); and

               (ii) A warrant,  in the form of Exhibit A hereto (the "Warrant"),
exercisable  to purchase up to 100,000 shares of the Common Stock at an exercise
price of $1.50 per share (the "Warrant Shares").

          (b) Payment of the Purchase Price.  Simultaneously  with the execution
herewith,  the  Investor  shall  deliver to the Company the Purchase  Price,  as
follows:

               (i)  $100,000,  in cash,  payable in the form of a wire  transfer
pursuant to the wiring instructions provided by the Company; and

               (ii) $150,000,  in the form of that  promissory  note attached as
Exhibit B hereto  (the  "Note"),  payable in three equal  monthly  installments,
which Note shall provide for the Company to call the Shares upon the  occurrence
of an event of default as set forth more particularly in the Note.

          (c) Purchase Exempt from  Registration  under the Securities Laws. The
Company  and the  Investor  are  executing  and  delivering  this  Agreement  in
accordance with and in reliance upon the exemption from securities  registration
afforded  by  Regulation  D  as  promulgated  by  the  Securities  and  Exchange
Commission (the "Commission")  under the Securities Act of 1933, as amended (the
"Securities Act").

<PAGE>

     2.   COVENANTS.

          (a) Keepwell Arrangement.

               (i) On August 14, 2001 (the "Keepwell Date"), if the Common Stock
shall have a average Market Price (as defined below) of less than $.75 per share
for the five (5) trading days preceding the Keepwell Date, then the Company will
issue additional shares of the Common Stock (the "Keepwell Shares"),  at a price
per share at the Keepwell Date, to the Investor such that the aggregate value of
the Shares and the Keepwell  Shares held by the Investor as of the Keepwell Date
equals  the value (at a $.75 per  share  value) of the  Shares as of the date of
this Agreement.  To the extent that any of the Shares are sold or conveyed prior
to the Keepwell Date,  the aggregate  value of the Shares as of the date of this
Agreement shall be adjusted  accordingly when determining the number of Keepwell
Shares to issue pursuant hereto.

               (ii) For purposes hereof, the term "Market Price" shall mean, for
the Common Stock at any date,  means on any  particular  date the average of the
last reported sale price,  or, in case no such reported sale takes place on such
day, the average of the last  reported sale prices for the ten (10) trading days
preceding  such date,  in either case as  officially  reported by the  principal
securities exchange on which the Common Shares are listed or admitted to trading
or as reported in the Nasdaq National Market System,  or, if the Common Stock is
not listed or admitted to trading on any national  securities exchange or quoted
on the National Market System of The Nasdaq Stock Market, Inc.  ("Nasdaq"),  the
closing  bid  price as  furnished  by the  National  Association  of  Securities
Dealers,  Inc.  through  Nasdaq or similar  organization  if Nasdaq is no longer
reporting such information,  or if the Common Stock is not quoted on Nasdaq, the
closing  bid price for the Common  Stock in the  over-the-counter  market on the
electronic   bulletin   board  as  reported  by  Bloomberg   Financial   Markets
("Bloomberg")  or, if no closing  bid price is  reported  for such  security  by
Bloomberg,  the  last  closing  trade  price of such  security  as  reported  by
Bloomberg,  or, if no last closing  trade price is reported for such security by
Bloomberg,  the average of the bid prices of any market makers for such security
as reported in the "pink sheets" by the National  Quotation Bureau,  Inc. If the
Market  Price cannot be  calculated  for the Common Stock on such date on any of
the  foregoing  bases,  then the price of the Common Stock on such date shall be
the fair market value as determined by the Company's board of directors,  acting
in good faith.

          (b) Registration Rights.

               (i) Piggyback  Registration.  If the Company  proposes to prepare
and file with the  Commission a  registration  statement on Form SB-2 (except if
the Company is not then  eligible to register  for resale the Shares and Warrant
Shares, as the case may be (the "Registrable Securities"), on such form, on such
other  appropriate  form  in  accordance   herewith)  covering  equity  or  debt
securities  of the Company,  or any such  securities  of the Company held by its
shareholders, other than in connection with a merger, acquisition or pursuant to
a

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<PAGE>

registration  statement  on Form  S-4 or Form  S-8 or any  successor  form  (for
purposes of this Section 3, a "Registration  Statement"),  the Company will give
written notice of its intention to do so by certified mail ("Notice"),  at least
fifteen (15) days prior to the filing of each such  Registration  Statement,  to
the Investor.  Upon the written  request of the  Investor,  made within ten (10)
days  after  receipt  of  the  Notice,  that  the  Company  include  any  of the
Registrable  Securities  in the  proposed  Registration  Statement,  the Company
shall,  as to the Investor,  use reasonable  efforts to effect the  registration
under the  Securities  Act of the  Registrable  Securities  which it has been so
requested to register (the "Piggyback  Registration");  provided,  however, that
if, the Piggyback  Registration  is in connection  with an  underwritten  public
offering and in the written  opinion of the  Company's  underwriter  or managing
underwriter of the underwriting group, if any, for such offering,  the inclusion
of all or a portion of the  Registrable  Securities  requested to be registered,
when added to the  securities  being  registered  by the  Company or the selling
shareholder(s),  if  any,  will  exceed  the  maximum  amount  of the  Company's
securities which can be marketed (i) at a price reasonably related to their then
current market value, or (ii) without  otherwise having an adverse effect on the
offering,  then the Company may exclude  from such  offering all or a portion of
the  Registrable  Securities  which  it has  been  requested  to  register

               (ii)  Exceptions  to   Registration.   Notwithstanding   anything
contained  herein to the  contrary,  the Company shall (i) have the right at any
time  after  it  shall  have  given  written  notice  pursuant  to this  Section
(irrespective  of whether any written  request for inclusion of such  securities
shall have  already  been made) to elect not to file any  proposed  Registration
Statement,  or to withdraw the same after the filing but prior to the  effective
date  thereof and (ii) have no  obligation  under this  Section to register  the
Registrable  Securities if the Company  receives an opinion of counsel that Rule
144 promulgated under the Securities Act is available to the Investor.

               (iii) Investors' Obligations. In connection with the registration
of  the  Registrable   Securities,   each  Investor  shall  have  the  following
obligations:

                    (A) It shall be a condition  precedent to the obligations of
          the Company to complete the registration  pursuant hereto with respect
          to the  Registrable  Securities that the Investor shall furnish to the
          Company such information regarding itself, the Registrable  Securities
          held by it, and the intended  method of disposition of the Registrable
          Securities  held by it, as shall be reasonably  required to effect the
          registration  of such  Registrable  Securities  and shall execute such
          documents  in  connection  with such  registration  as the Company may
          reasonably  request.  At  least  five  (5)  days  prior  to the  first
          anticipated  filing date of the  Registration  statement,  the Company
          shall notify the Investor of the information the Company requires (the
          "Requested  Information")  if such Investor  elects to have any of the
          Registrable Securities included in the Registration  Statement.  If at
          least two (2)  business  days prior to the filing date the Company has
          not received the Requested  Information  from the  Investor,  then the

                                       3
<PAGE>

          Company may file the  Registration  Statement  without  including  the
          Registrable Securities.

                    (B) The  Investor  agrees to  cooperate  with the Company as
          reasonably requested by the Company in connection with the preparation
          and  filing  of  the  Registration   Statement  and  any  supplemented
          prospectus and/or amended registration statement,  unless the Investor
          has  notified the Company in writing of its election to exclude all of
          the  Registrable  Securities  from the  Registration  Statement.

               (iv) Expenses of  Registration.  All reasonable  expenses,  other
than  underwriting  discounts  and  commissions  and other fees and  expenses of
investment bankers and other than brokerage commissions,  incurred in connection
with registrations,  filings or qualifications  pursuant to this Section 3 shall
be borne by the Company,  however, if the Investor decides to retain counsel, it
shall do so at its own expense.

     3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

          The Company represents and warrants to the Investor as follows:

          (a) Organization. The Company is a corporation duly organized, validly
existing  and in good  standing  under the laws of the State of Delaware and has
all requisite  corporate  power and authority to own and operate its properties,
to carry on its business as now conducted and as proposed to be conducted.

          (b)  Authority  Relative  to  this  Agreement.  The  Company  has  the
requisite  corporate  power and authority to execute and deliver this Agreement,
the Warrant  and the other  agreements  and  documents  contemplated  hereby and
thereby (collectively,  the "Transaction Documents") and to issue the Shares and
the  Warrant  in  accordance  with the terms  hereof and the  Warrant  Shares in
accordance  with the terms of the  Warrant.  The  execution  and delivery of the
Transaction  Documents and the  consummation  of the  transactions  contemplated
thereby have been duly and validly authorized by all necessary corporate action.
Each of the Transaction  Documents constitutes a valid and binding obligation of
the  Company  enforceable  against  the  Company in  accordance  with its terms,
subject to limitations  on  enforcement  by general  principles of equity and by
bankruptcy  or  other  laws  affecting  the  enforcement  of  creditors'  rights
generally.

          (c)  Shares  and  Warrant  Shares.  The  Shares,  when paid for by the
Investor  and  issued  in  accordance  with  the  terms  hereof,  shall  be duly
authorized and validly issued and when issued and delivered,  will be fully paid
and  non-assessable.  When the Warrant Shares are issued in accordance  with the
terms  of the  Warrant,  such  Warrant  Shares  will be duly  authorized  by all
necessary  corporate action and validly issued and  outstanding,  fully paid and
non-assessable,  and the holders  shall be entitled to all rights  accorded to a
holder of Common Stock

                                       4
<PAGE>

     4.   REPRESENTATIONS AND WARRANTIES OF THE INVESTOR.

          The Investor represents and warrants to the Company as follows:

          (a)  Authorization.  This Agreement has been duly authorized,  validly
executed  and  delivered by the  Investor  and  constitutes  a valid and binding
agreement and  obligation of the Investor,  enforceable  against the Investor in
accordance  with its terms,  subject to  limitations  on  enforcement by general
principles of equity and bankruptcy or other laws  affecting the  enforcement of
creditors' rights generally.

          (b) Independent Investigation. The Investor has reviewed copies of the
public  reports  filed  by  the  Company  with  the  Commission.   The  Investor
understands  that (i) no  representations  or  warranties  have been made to the
Investor by the Company, the officers or directors or the Company, or any agent,
employee or affiliate of any of them, except as specifically set forth herein or
as set forth in the other  documents  expressly  referred  to herein and (ii) no
federal,  state, local or foreign  governmental body or regulatory authority has
made any finding or  determination  relating to the fairness of an investment in
the  securities  being  offered  and that no  federal,  state,  local or foreign
governmental body or regulatory  authority has recommended or endorsed,  or will
recommend or endorse, any investment in such securities. The Investor, in making
the decision to purchase  the Shares,  Warrant and the Warrant  Shares  issuable
upon exercise of the Warrant (collectively, the "Securities"), has relied solely
upon its independent  investigation and due diligence  regarding the business of
the Company and an  investment in the  Securities.  Investor is not relying upon
any representations or warranties made by or on behalf of the Company (except as
set  forth  in  this  Agreement).  Investor  acknowledges  that  it  has  had an
opportunity to consult with its own attorney  regarding legal matters concerning
the Company and an  investment  in the  Securities  and to consult  with its tax
advisor regarding the tax consequences of purchasing the Securities.

          (c) Exemption from the Securities Laws.

               (i) The Investor  understands that the Shares and the Warrant and
the  issuance  of the  Warrant  Shares  upon  exercise  of the Warrant are being
offered and sold to it in reliance on specific  provisions  of federal and state
securities  laws and that the Company is relying  upon the truth and accuracy of
the representations,  warranties, agreements, acknowledgments and understandings
of the Investor set forth herein for purposes of qualifying for exemptions  from
registration under the Securities Act and applicable state securities laws.

               (ii) The offer and sale of the Securities and the issuance of the
Warrant  Shares  upon  exercise  of each of the Warrant is intended to be exempt
from  registration  under the  Securities  Act,  by virtue of  Section  4(2) and
Regulation D promulgated under the Securities Act. The Investor understands that
(A) the Securities have not been registered under the Securities Act; (B) except
as set forth elsewhere in this Agreement,  the Company is under no obligation to

                                       5
<PAGE>

register the Shares or Warrant Shares under the Securities Act or any applicable
state  security  laws or to take any  action  to make any  exemption  form  such
registration provisions available;  (C) the Shares and Warrant Shares may not be
sold,  transferred,  assigned,  pledged  or  subjected  to any lien or  security
interest  unless  they  are  first  registered  under  the  Securities  Act  and
applicable   state  securities  laws  or  an  exemption  from  the  registration
provisions  of the  Securities  Act and  applicable  state  securities  laws are
available  with respect to the proposed sale or transfer;  (D) the  certificates
evidencing the Securities  shall contain a restrictive  legend,  as set forth in
Section  5 of this  Agreement,  to the  effect  that  the  transfer  thereof  is
restricted;  and (E) stop transfer instructions will be placed with the transfer
agent for the Shares and, upon exercise of the Warrant, the Warrant Shares.

               (iii) The Investor acknowledges that it is familiar with Rule 144
of the rules and  regulations  of the Securities  and Exchange  Commission  (the
"Commission"),  as amended,  promulgated  pursuant to the  Securities Act ("Rule
144"), and that the Investor has been advised that Rule 144 permits resales only
under certain  circumstances.  The Investor  understands that to the extent that
Rule 144 is not  available,  the  Investor  will be unable to sell any Shares or
Warrant  Shares  without  either  registration  under the  Securities Act or the
existence of another exemption from such registration requirement.

          (d) Sophistication of the Investor.

               (i) The Investor is an  "accredited  Investor"  as defined  under
Rule 501 of Regulation D promulgated under the Securities Act.

               (ii)  The  Investor  (A) has such  knowledge  and  experience  in
financial  and business  matters as to be capable of  evaluating  the merits and
risks of an investment in the Company;  and (B)  recognizes  that The Investor's
investment in the Company involves a high degree of risk.

               (iii) The Investor is capable of evaluating  the risks and merits
of an  investment in the  Securities by virtue of its  experience as an investor
and its  knowledge,  experience,  and  sophistication  in financial and business
matters and the Investor is capable of bearing the entire loss of its investment
in the  Securities.

          (e) Investment Purposes. The Investor (i) is and will be acquiring the
Securities for the Investor's own account,  and not with a view to any resale or
distribution  of the  Securities,  in  whole  or in part,  in  violation  of the
Securities  Act or any  applicable  securities  laws and (ii) has not offered or
sold any of the Securities  and has no present  intention or agreement to divide
the Securities  with others for purposes of selling,  offering,  distributing or
otherwise disposing of any of the Securities.

                                       6
<PAGE>

     5.   RESTRICTIVE LEGEND.

          Certificates  representing  the  Shares,  the  Warrant and the Warrant
Shares  shall be  stamped  or  imprinted  with a  legend  in  substantially  the
following form:

          THIS SECURITIES  EVIDENCED BY THIS CERTIFICATE OR INSTRUMENT
          HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933,
          AS AMENDED (THE  "SECURITIES  ACT"), OR ANY STATE SECURITIES
          LAWS AND MAY NOT BE SOLD, TRANSFERRED,  PLEDGED OR OTHERWISE
          DISPOSED OF UNLESS (i)  REGISTERED  UNDER THE SECURITIES ACT
          AND UNDER  APPLICABLE  STATE  SECURITIES LAWS OR (ii) GLOBAL
          SOURCES  LIMITED,  A DELAWARE  CORPORATION  (THE "COMPANY"),
          SHALL HAVE RECEIVED AN OPINION, IN FORM, SCOPE AND SUBSTANCE
          REASONABLY   ACCEPTABLE   TO  THE   COMPANY,   FROM  COUNSEL
          REASONABLY  ACCEPTABLE TO THE COMPANY,  THAT REGISTRATION OF
          SUCH  SECURITIES  UNDER  THE  SECURITIES  ACT AND  UNDER THE
          PROVISIONS  OF  APPLICABLE  STATE  SECURITIES  LAWS  IS  NOT
          REQUIRED.

            The restrictions  imposed by this Section 5 shall terminate (i) when
such securities shall have been resold pursuant to being effectively  registered
under the  Securities  Act,  (ii) upon the  Company's  receipt  of an opinion of
counsel, in form and substance reasonably satisfactory to the Company, addressed
to the Company to the effect that such  restrictions  are no longer  required to
ensure  compliance  with the Securities Act and state  securities  laws or (iii)
upon the Company's  receipt of other  evidence  reasonably  satisfactory  to the
Company that such registration and qualification  under state securities laws is
not required.

     6.   MISCELLANEOUS PROVISIONS.

          (a)  Further  Assurances.  From and after the date of this  Agreement,
upon the  request of the  Investor or the  Company,  each of the Company and the
Investor shall execute and deliver such instrument, documents and other writings
as may be  reasonably  necessary  or  desirable  to confirm and carry out and to
effectuate  fully the intent and purposes of this Agreement and the  Transaction
Documents.

          (b) Expenses.  All costs and expenses incurred in connection with this
Agreement  and the  transactions  contemplated  hereby will be paid by the party
incurring such costs and expenses.

                                       7
<PAGE>

          (c) Notices. All notices, demands,  consents,  requests,  instructions
and other  communications  to be given or  delivered  or  permitted  under or by
reason  of  the  provisions  of  this  Agreement  or  in  connection   with  the
transactions  contemplated  hereby shall be in writing and shall be deemed to be
delivered and received by the intended  recipient as follows:  (i) if personally
delivered,  on the business day of such delivery (as evidenced by the receipt of
the personal  delivery  service),  (ii) if mailed  certified or registered  mail
return receipt  requested,  four (4) business days after being mailed,  (iii) if
delivered by overnight  courier (with all charges having been  prepaid),  on the
business  day of such  delivery (as  evidenced  by the receipt of the  overnight
courier  service of  recognized  standing),  or (iv) if  delivered  by facsimile
transmission,  on the business day of such  delivery if sent by 6:00 p.m. in the
time zone of the recipient,  or if sent after that time, on the next  succeeding
business day (as evidenced by the printed  confirmation of delivery generated by
the  sending  party's  telecopier  machine).  If any  notice,  demand,  consent,
request,  instruction or other  communication  cannot be delivered  because of a
changed  address of which no notice was given (in  accordance  with this Section
6(c)),  or the refusal to accept same,  the notice,  demand,  consent,  request,
instruction  or other  communication  shall be  deemed  received  on the  second
business  day the  notice  is sent (as  evidenced  by a sworn  affidavit  of the
sender). All such notices, demands, consents,  requests,  instructions and other
communications  will be sent to the following  addresses or facsimile numbers as
applicable:

          If to the Investor:   Peter Lusk
                                99 Park Avenue, Suite 2230
                                New York, New York 10016
                                Attention:Peter Lusk
                                Facsimile:(212) 856-9847

          If to the Company:    Global Sources Limited
                                342 Madison Avenue, Suite 1815
                                New York, New York 10173
                                Attention:Mr. John D. Mazzuto, President
                                Facsimile:(212) 687-0555

                                with a copy to:

                                Parker Chapin LLP
                                The Chrysler Building
                                405 Lexington Avenue
                                New York, New York 10174
                                Attention: Martin Eric Weisberg, Esq.
                                Facsimile:(212) 704-6288

or to such other  address as any party may specify by notice  given to the other
party in accordance with this Section 6(c).

                                       8
<PAGE>

          (d)  Waivers.  Any  waiver by the  Company,  on the one hand,  and the
Investor,  on the other  hand,  of any breach of or  failure to comply  with any
provision  or  condition  of this  Agreement  by the  other  party  shall not be
construed as, or constitute, a continuing waiver of such provision or condition,
or a waiver of any  other  breach  of, or  failure  to  comply  with,  any other
provision or condition of this  Agreement,  any such waiver to be limited to the
specific matter and instance for which it is given. No waiver of any such breach
or failure or of any provision or condition of this Agreement shall be effective
unless in a written  instrument  signed by the party  granting  the  waiver  and
delivered  to the other party  hereto in the manner  provided  for  hereunder in
Section  6(c).  No failure or delay by either  party to enforce or exercise  its
rights  hereunder  shall be deemed a waiver  hereof,  nor  shall  any  single or
partial exercise of any such right or any abandonment or discontinuance of steps
to enforce such rights,  preclude any other or further  exercise  thereof or the
exercise of any other right.

          (e) Binding Effect; Assignment ; Third Parties. This Agreement and all
of the  provisions  hereof shall be binding upon and inure to the benefit of the
parties  hereto and their  respective  successors  and  permitted  assigns,  but
neither this Agreement nor any of the rights, interests or obligations hereunder
shall be assigned by any of the parties hereto without the prior written consent
of the other  party,  nor is this  Agreement  intended  to confer upon any other
person except the parties hereto any rights or remedies hereunder.

          (f) Governing Law. This  Agreement  shall be governed by and construed
in accordance  with the internal laws of the State of New York,  without  giving
effect to its conflict of law provisions.

          (g) Entire  Agreement.  This Agreement,  the Note, the Warrant and the
other  Transaction  Documents  delivered  pursuant to this Agreement contain the
entire understanding and agreement of the parties relating to the subject matter
hereof  and  supersedes  all prior  and/or  contemporaneous  understandings  and
agreements  of any kind and nature  (whether  written or oral) among the parties
with respect to such subject matter, all of which are merged herein.

          (h)  Severability.  The parties agree that should any provision of the
Transaction  Documents be held to be invalid,  illegal or  unenforceable  in any
jurisdiction,  that  holding  shall  be  effective  only to the  extent  of such
invalidity,  illegally or  unenforceability  without  invalidating  or rendering
illegal  or  unenforceable  the  remaining   provisions  hereof,  and  any  such
invalidity,   illegally  or  unenforceability  in  any  jurisdiction  shall  not
invalidate or render unenforceable such provision in any other jurisdiction.  It
is the intent of the parties that the  Transactions  Documents be fully enforced
to the fullest extent permitted by applicable law.

          (i) Interpretation. The article and section headings contained in this
Agreement  are  solely  for the  purpose  of  reference,  are  not  part of this
Agreement  of the  parties  and  shall  not in any way  affect  the  meaning  or
interpretation of this Agreement.

                                       9
<PAGE>

          (j)  Amendment  and  Modification.  This  Agreement  may  be  amended,
modified  or  supplemented  only by written  agreement  of the  Company  and the
Investor.

          (k)  Counterparts.  This  Agreement  may be  executed  in two or  more
counterparts, and by the different parties hereto in separate counterparts, each
of which when executed shall be deemed to be an original, and all of which, when
taken together, shall constitute one and the same document. This Agreement shall
become effective when one or more counterparts,  taken together, shall have been
executed and delivered by all of the parties.

                           [SIGNATURE PAGE TO FOLLOW]

                                       10
<PAGE>

          IN WITNESS WHEREOF, the Company and each the Investor have each caused
     this Agreement to be signed by their respective.  duly authorized  officers
     as of the date first above written.

                                    GLOBAL SOURCES LIMITED

                                    By:/s/ John Mazzuto
                                       ----------------------------------
                                    Name: John Mazzuto
                                    Title: President

                                    /s/ Peter Lusk
                                    _____________________________________
                                    PETER LUSK

                                       11
<PAGE>

                                    EXHIBIT A

                                 FORM OF WARRANT

<PAGE>

                                    EXHIBIT B

                             FORM OF PROMISSORY NOTE

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