Document:

THIS  WARRANT  HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
AMENDED (THE  "SECURITIES  ACT"), OR ANY OTHER  APPLICABLE STATE SECURITIES LAWS
AND HAS BEEN ISSUED IN RELIANCE UPON AN EXEMPTION  FROM  REGISTRATION  UNDER THE
SECURITIES  ACT.  THIS  WARRANT  SHALL  NOT  CONSTITUTE  AN  OFFER TO SELL NOR A
SOLICITATION  OF AN OFFER TO BUY THE WARRANT IN ANY  JURISDICTION  IN WHICH SUCH
OFFER OR SOLICITATION WOULD BE UNLAWFUL.

THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE  HEREOF 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.

                                     WARRANT

                             GLOBAL SOURCES LIMITED

No. ____                                     Initial  Number of Shares:  100,000
Date of Issuance: August  14, 2000                         Exercise Price: $1.50

            THIS CERTIFIES that, for value received,  Peter Lusk (the "Holder"),
is entitled, upon the terms and subject to the conditions hereinafter set forth,
at any time on or after  August 14, 2000 and on or prior to August 13, 2003 (the
"Termination  Date") but not  thereafter,  to subscribe  for and  purchase  from
GLOBAL  SOURCES  LIMITED,  a Delaware  corporation  (the  "Company"),  up to One
Hundred Thousand  (100,000)  shares (the "Warrant  Shares") of Common Stock, par
value US $0.001  per share of the  Company  (the  "Common  Stock"),  subject  to
adjustment as hereinafter provided, at a purchase price per share equal to $1.50
( the "Exercise  Price").  This Warrant is being issued in  connection  with the
Purchase  Agreement  dated as of August 14,  2000 by and between the Company and
the Holder (the "Agreement").

<PAGE>

     1.  Title of  Warrant.  Prior  to the  expiration  hereof  and  subject  to
compliance with the Securities Act and other  applicable  laws, this Warrant and
all rights  hereunder  are  transferable,  in whole or in part, at the office or
agency of the  Company  by the  holder  hereof  in person or by duly  authorized
attorney,  upon  surrender of this Warrant  together  with the  Assignment  Form
annexed hereto properly endorsed.

     2. Warrant Shares.

          (a) The Company covenants that all shares of Common Stock which may be
issued upon the  exercise  of rights  represented  by this  Warrant  will,  upon
exercise of the rights represented by this Warrant, be duly authorized,  validly
issued,  fully paid and nonassessable and free from all taxes, liens and charges
in respect of the issue  thereof  (other  than taxes in respect of any  transfer
occurring  contemporaneously  with such issue).

          (b) The  Company  covenants  that  during the  period  the  Warrant is
outstanding,  it will reserve from its  authorized  and unissued  Common  Stock,
solely for the  purpose of  effecting  the  exercise  of the Warrant a number of
shares of Common  Stock  equal to of the  aggregate  number  of  Warrant  Shares
issuable upon exercise of the Warrant on the date of the Purchase Agreement. The
Company  further  covenants  that its issuance of this Warrant shall  constitute
full authority to its officers who are charged with the duty of executing  stock
certificates  to execute and issue the  necessary  certificates  for the Warrant
Shares upon the exercise of the purchase rights under this Warrant.

     3. Exercise of Warrant.

          (a)  Method  of  Exercise.  Except  as  provided  in  Section 4 below,
exercise of the purchase  rights  represented by this Warrant may be made at any
time or times,  before the close of business on the  Termination  Date,  or such
earlier date on which this Warrant may terminate as provided in this Warrant, by
the  surrender  of this Warrant and the Notice of Exercise  Form annexed  hereto
duly  executed,  at the office of the Company (or such other office or agency of
the Company as it may  designate by notice in writing to the  registered  holder
hereof at the address of such holder  appearing on the books of the Company) and
upon payment of the Exercise  Price of the shares thereby  purchased;  whereupon
the holder of this Warrant  shall be entitled to receive a  certificate  for the
number of shares of Common Stock so purchased. Certificates for shares purchased
hereunder  shall be delivered to the holder hereof within ten (10) business days
after the date on which this Warrant  shall have been  exercised  as  aforesaid.
Payment  of the  Exercise  Price  of the  shares  may be by  certified  check or
cashier's  check or by wire transfer to an account  designated by the Company in
an amount  equal to the  Exercise  Price  multiplied  by the  number of  Warrant
Shares.

          (b) Cashless  Exercise.  At any time after this Warrant is exercisable
and prior to the Termination  Date, the Holder may, at its option,  exchange the
Warrant represented by this Warrant certificate, in whole or in part (a "Warrant
Exchange"), into the number of Warrant

                                      -2-
<PAGE>

Shares  determined  in  accordance  with this  Section 2, by  surrendering  this
Warrant  certificate  at the principal  office of the Company  accompanied  by a
notice  stating  such  Holder's  intent to effect such  exchange,  the number of
Warrant  Shares to be exchanged  and the date on which the Holder  requests that
such Warrant  Exchange  occur (the "Notice of Exchange").  The Warrant  Exchange
shall take place on the date  specified  in the Notice of Exchange or, if later,
the date the Notice of  Exchange  is  received  by the  Company  (the  "Exchange
Date").  Certificates for the Warrant Shares issuable upon such Warrant Exchange
and,  if  applicable,   a  new  Warrant   certificate   (a  "Remainder   Warrant
Certificate")  of like tenor evidencing the Warrant Shares which were subject to
the surrendered  Warrant  Certificate and not included in the Warrant  Exchange,
shall be issued as of the Exchange  Date and  delivered to the Holder within ten
(10) business days following the Exchange  Date. In connection  with any Warrant
Exchange,  the  Holder's  Warrant  certificate  shall  represent  the  right  to
subscribe for and acquire (i) the number of Warrant Shares  (rounded to the next
highest  integer)  equal to (A) the number of Warrant  Shares  specified  by the
Holder in its Notice of Exchange (the "Total Warrant Share Number") less (B) the
number of Warrant  Shares  equal to the  quotient  obtained by dividing  (x) the
product of the Total  Warrant Share Number and the existing  Exercise  Price per
Warrant  Share by (y) the current  Market  Price (as  hereinafter  defined) of a
Common Share, and (ii) a Remainder Warrant certificate, if applicable.

          (c) "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.

     4.  Adjustments of Exercise Price and Number of Warrant Shares.  The number
and kind of  securities  purchasable  upon the  exercise of this Warrant and the
Exercise  Price  shall be  subject  to  adjustment  from  time to time  upon the
happening of any of the following.

          (a) In case the Company  shall (i) declare or pay a dividend in shares
of

                                      -3-
<PAGE>

Common Stock or make a distribution  in shares of Common Stock to holders of its
outstanding Common Stock, (ii) subdivide its outstanding shares of Common Stock,
(iii) combine its  outstanding  shares of Common Stock into a smaller  number of
shares  of Common  Stock or (iv)  issue any  shares  of its  capital  stock in a
reclassification  of the  Common  Stock,  then  the  number  of  Warrant  Shares
purchasable  upon  exercise of this Warrant  immediately  prior thereto shall be
adjusted  so that the holder of this  Warrant  shall be  entitled to receive the
kind and number of Warrant  Shares or other  securities  of the Company which he
would  have  owned or have  been  entitled  to  receive  had such  Warrant  been
exercised in advance  thereof.  Upon each such adjustment of the kind and number
of Warrant  Shares or other  securities  of the  Company  which are  purchasable
hereunder,  the holder of this Warrant shall  thereafter be entitled to purchase
the number of Warrant Shares or other securities  resulting from such adjustment
at an  Exercise  Price per such  Warrant  Share or other  security  obtained  by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of Warrant Shares  purchasable  pursuant hereto  immediately prior to
such adjustment and dividing by the number of Warrant Shares or other securities
of the Company  resulting from such  adjustment.  An adjustment made pursuant to
this paragraph shall become  effective  immediately  after the effective date of
such event  retroactive to the record date, if any, for such event.

          (b) If after the date on which the  Warrants  are first  issued to the
Holder,  any capital  reorganization  or  reclassification  of the shares of the
Common  Stock,  or   consolidation   or  merger  of  the  Company  with  another
corporation,  or the sale of all or  substantially  all of its assets to another
corporation  or other similar  event shall be effected,  then, as a condition of
such reorganization,  reclassification,  consolidation,  merger, or sale, lawful
and fair provision  shall be made whereby the Holder shall  thereafter  have the
right to purchase and receive  upon the basis and upon the terms and  conditions
specified in this Agreement such shares of stock,  securities,  or assets as may
be issued or payable with respect to or in exchange for a number of  outstanding
shares  of such  Common  Stock  equal to the  number  of  shares  of such  stock
immediately  theretofore  purchasable  and  receivable  upon the exercise of the
rights represented by this Agreement had such reorganization,  reclassification,
consolidation,  merger or sale not taken  place,  and in such event  appropriate
provisions  shall be made with respect to the rights and interests of the Holder
to the end that the provisions hereof shall thereafter be applicable,  as nearly
as may be in relation to any shares of stock,  securities,  or assets thereafter
deliverable upon the exercise hereof. Upon the occurrence of any event specified
in this paragraph,  the Company shall given written notice of the effective date
of  such   reorganization,   reclassification,   consolidation,   merger,  sale,
dissolution, liquidation, winding up or issuance. Such notice shall also specify
the date as of which the holders of Common  Stock of record shall be entitled to
exchange their Common Stock for stock,  securities,  or other assets deliverable
upon  such  reorganization,   reclassification,   consolidation,  merger,  sale,
dissolution,  liquidation,  winding up or issuance. Failure to give such notice,
or any  defect  therein  shall not  affect  the  legality  or  validity  of such
material.

     5. Voluntary  Adjustment by the Company. The Company may at any time during
the term of this Warrant,  reduce the then current  Exercise Price to any amount
and for any period

                                      -4-
<PAGE>

of time deemed appropriate by the Board of Directors of the Company.

     6. Mandatory Adjustment. Upon an Event of Default under the promissory note
dated as of August 14, 2000  between the Company and the  Investor  (the "Note")
for which the Company  elects to exercise its Call Option  pursuant to Section 4
of the Note,  there  shall be a  reduction  in the  aggregate  number of Warrant
Shares issuable to the Holder upon exercise of this Warrant, as follows:

        Installment Payment Date
        Triggering an Event of Default   Warrant Shares Issuable under Warrant
        ------------------------------   -------------------------------------

        October 1, 2000                  40,000 shares of the Common Stock

        November 1, 2000                 60,000 shares of the Common Stock

        December 1, 2000                 80,000 shares of the Common Stock

     7. Notice of Adjustment. Whenever the number of Warrant Shares or number or
kind of  securities  or other  property  purchasable  upon the  exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
promptly mail by registered or certified mail, return receipt requested,  to the
holder of this Warrant notice of such  adjustment or  adjustments  setting forth
the number of Warrant Shares (and other securities or property) purchasable upon
the exercise of this Warrant and the Exercise  Price of such Warrant Shares (and
other  securities  or property)  after such  adjustment,  setting  forth a brief
statement  of  the  facts  requiring  such  adjustment  and  setting  forth  the
computation  by which  such  adjustment  was made.  Such  notice,  in absence of
manifest  error,  shall  be  conclusive  evidence  of the  correctness  of  such
adjustment.

     8.  No  Fractional   Shares  or  Scrip.  No  fractional   shares  or  scrip
representing  fractional  shares  shall  be  issued  upon the  exercise  of this
Warrant.

     9. Charges,  Taxes and  Expenses.  Issuance of  certificates  for shares of
Common Stock upon the exercise of this Warrant  shall be made without  charge to
the holder hereof for any issue or transfer tax or other  incidental  expense in
respect of the  issuance of such  certificate,  all of which taxes and  expenses
shall be paid by the Company,  and such certificates shall be issued in the name
of the holder of this Warrant or in such name or names as may be directed by the
holder of this Warrant;  provided,  however,  that in the event certificates for
shares of Common  Stock  are to be issued in a name  other  than the name of the
holder of this  Warrant,  this Warrant when  surrendered  for exercise  shall be
accompanied by the Assignment  Form attached  hereto duly executed by the holder
hereof; and provided further, that upon any transfer involved in the issuance or
delivery  of any  certificates  for  shares of Common  Stock,  the  Company  may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

                                      -5-
<PAGE>

     10. No Rights as Stockholder until Exercise.  This Warrant does not entitle
the holder hereof to any voting  rights or other rights as a stockholder  of the
Company  prior to the exercise  thereof.  Upon the surrender of this Warrant and
the payment of the aggregate  Exercise  Price,  the Warrant  Shares so purchased
shall be and be deemed to be issued to such  holder as the record  owner of such
shares as of the close of business on the later of the date of such surrender or
payment.

     11.  Loss,  Theft,  Destruction  or  Mutilation  of  Warrant.  The  Company
represents and warrants that upon receipt by the Company of evidence  reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
certificate or any stock certificate relating to the Warrant Shares, and in case
of loss, theft or destruction,  of indemnity or security reasonably satisfactory
to it, and upon surrender and cancellation of such Warrant or stock certificate,
if  mutilated,  the  Company  will  make  and  deliver  a new  Warrant  or stock
certificate  of like  tenor and dated as of such  cancellation,  in lieu of such
Warrant or stock certificate.

     12. Unregistered Securities/Legend.

          (a) The Holder of this  Warrant,  by acceptance  hereof,  acknowledges
that this  Warrant and the shares of Warrant  Shares to be issued upon  exercise
hereof are being  acquired  solely for the  Holder's  own  account  and not as a
nominee for any other party,  and for  investment,  and that the Holder will not
offer, sell or otherwise dispose of this Warrant or any shares of Warrant Shares
to be issued upon exercise hereof except  pursuant to an effective  registration
statement,  or an exemption from registration,  under the Securities Act and any
applicable state securities laws.

          (b) Except as provided in Section 12(c)  hereof,  this Warrant and all
certificates  representing  shares of Warrant Shares issued upon exercise hereof
shall be stamped or imprinted with a legend in substantially the following form:

          THIS  WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE  UPON
          EXERCISE   HEREOF  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

                                      -6-
<PAGE>

          UNDER  THE  SECURITIES  ACT  AND  UNDER  THE  PROVISIONS  OF
          APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

          (c) The  restrictions  imposed by this Section 12(c) upon the transfer
of this Warrant or the shares of Warrant  Shares to be purchased  upon  exercise
hereof shall terminate (i) when such securities  shall have been resold pursuant
to being effectively registered under the Securities Act, (ii) upon the Issuer's
receipt of an opinion of counsel, in form and substance reasonably  satisfactory
to the Issuer,  addressed to the Issuer 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 Issuer's receipt of other evidence  reasonably
satisfactory to the Issuer that such registration and qualification  under state
securities  laws is not  required.  Whenever such  restrictions  shall cease and
terminate as to any such  securities,  the Holder  thereof  shall be entitled to
receive from the Issuer (or its transfer agent and registrar),  without any cost
or expense (other than applicable  transfer taxes, if any), new Warrants (or, in
the case of shares of Warrant Shares, new stock  certificates) of like tenor not
bearing the applicable  legend required by Section  12(c)(ii) hereof relating to
the Securities Act and state securities laws.

     13. Miscellaneous.

          (a) Issue Date.  The provisions of this Warrant shall be construed and
shall be given effect in all respects as if it had been issued and  delivered by
the Company on the date hereof.

          (b)  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.

          (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 Warrant 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)

                                      -7-
<PAGE>

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  10(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 Company:   Global Sources Limited
                                        342 Madison Avenue, Suite 1815
                                        New York, New York 10173
                                        Attn: President
                                        Telephone: 212-687-6363
                                        Facsimile:  212-687-0555

                   with copies to:      Parker Chapin LLP
                                        405 Lexington Avenue
                                        New York, New York 10174
                                        Attn:  Martin E. Weisberg, Esq.
                                        Telephone: (212) 704-6000
                                        Facsimile: (212) 704-6288

                   If to the Holder:    Peter Lusk
                                        99 Park Avenue, Suite 2230
                                        New York, New York 10016

                                        Telephone:  (212) 986-6808
                                        Facsimile:  (212) 856-9847

                   with copies to:      ________________________
                                        ________________________
                                        ________________________
                                        Attn:
                                        Telephone:
                                        Facsimile:

or to such other  address as any party may specify by notice  given to the other
party in accordance with this Section 13(c).

                                      -8-
<PAGE>

          (d) Governing  Law. This Warrant 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.

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

          (f) Entire  Agreement.  This Warrant contains the entire agreement and
understanding of the parties hereto in respect of the transactions  contemplated
by  this  Warrant.  There  are  no  restrictions,   promises,   representations,
warranties,  covenants or undertakings,  other than those expressly set forth or
referred to herein.  This Warrant  supersedes  all prior and/or  contemporaneous
agreements  and  understandings   between  the  parties  with  respect  to  such
transactions.

          (g) Severability.  The parties agree that should any provision of this
Warrant 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 Warrant be fully  enforced to the fullest  extent  permitted by
applicable law.

          (h) Amendment and Waiver.  This Warrant and any provisions  hereof may
be amended, modified or supplemented,  changed, waived, discharged or terminated
only by an instrument in writing signed by the Company and the Holder.

          IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized.

DATED: _________  ____, 2000        GLOBAL SOURCES LIMITED

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

                                      -9-
<PAGE>

                               NOTICE OF EXERCISE

To:   GLOBAL SOURCES LIMITED

          (1) The  undersigned  hereby  elects to  purchase  ________  shares of
Common Stock, par value $0.001 per shares (the "Common Stock") of GLOBAL SOURCES
LIMITED  pursuant to the terms of the  attached  Warrant,  and tenders  herewith
payment of the exercise  price in full,  together with all  applicable  transfer
taxes, if any.

          (2) Please  issue a  certificate  or  certificates  representing  said
shares of Common Stock in the name of the  undersigned  or in such other name as
is specified below:

                  -------------------------------
                  (Name)

                  -------------------------------
                  (Address)

                  -------------------------------

          (3) The shares of Common  Stock being  issued in  connection  with the
exercise of the attached  Warrant are [not] being issued in connection  with the
sale of the Common Stock.

Dated:

                                          ------------------------------
                                          Signature

                                       -1-
<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

          FOR VALUE  RECEIVED,  the foregoing  Warrant and all rights  evidenced
thereby are hereby assigned to

_______________________________________________ whose address is

_______________________________________________________________.

________________________________________________________________

                                          Dated:  ______________, 20___

                  Holder's Signature:     _____________________________

                  Holder's Address:       _____________________________

                                          _____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of  corporations  and  those  acting  in an  fiduciary  or other  representative
capacity  should  file  proper  evidence of  authority  to assign the  foregoing
Warrant.

                                       -2-$150,000                                                      New York, New York
                                                                August  14, 2000

                                 PROMISSORY NOTE
                                 ---------------

          FOR VALUE RECEIVED, the undersigned,  PETER LUSK, having an address at
99 Park  Avenue,  Suite  2230,  New  York,  New York  10016  (together  with its
successors and permitted  assigns,  the "Maker"),  hereby promises to pay to the
order of GLOBAL SOURCES LIMITED, a Delaware corporation having an address at 342
Madison  Avenue,  Suite 1815,  New York, NY 10173 (the  "Company") or such other
place  designated in writing by the Company,  on December 1, 2000 (the "Maturity
Date"),  the  principal  amount of One  Hundred  and Fifty  Thousand  and 00/100
Dollars  ($150,000),  together with interest on the unpaid balance of this Note,
at a rate of ten  percent  (10%) per annum,  payable in three (3) equal  monthly
installments  of  $50,835.64  on the 1st of each  month  (each  an  "Installment
Payment"), commencing October 1, 2000 and continuing until the Maturity Date, at
which time a final payment of $50,835.64 plus all unpaid accrued  interest shall
be due and payable,  unless earlier becoming due and owing by reason of an Event
of Default, as provided below.

          Any  payments  under  this Note  shall be made in money of the  United
States of America that is lawful for the payment of public and private  debts at
the time such payment is due.

          1. Purchase  Agreement.  This Note is the Note referred to in the Note
and Warrant  Purchase  Agreement  dated as of even date herewith (the  "Purchase
Agreement"),  between the Maker and the Purchaser named therein, and is entitled
to the benefits of, and subject to the  provisions  of, the Purchase  Agreement.
Capitalized terms used in this Note which are not expressly defined herein shall
have the same  meanings  herein as are  ascribed  to such terms in the  Purchase
Agreement.

          2.  Prepayment.  The  Maker  may  prepay  all  or  a  portion  of  the
outstanding  principal  amount of this Note,  at any time and from time to time,
prior to the Maturity Date without premium or penalty.  Each prepayment shall be
applied  first to the payment of all interest  accrued  hereunder on the date of
any prepayment,  and the balance of any such prepayment  shall be applied to the
principal amount hereof.

          3. Events of Default. The occurrence at any time of any one or more of
the following events shall constitute an "Event of Default" under this Note: (a)
the Maker's  failure to pay any principal,  interest,  Installment  Payment,  or
other  amount if and when due under  this Note and such  breach  shall  continue
uncured  for ten (10) days after  notice of such breach  from the  Company;  (b)
failure of the Maker to perform its  agreements and  obligations,  or a material
breach of any of the Maker's representations and warranties or other obligations
under the Purchase Agreement; (c) a breach of any of the Maker's covenants under
the Purchase Agreement or this Note and such breach shall continue uncured for a
period of five (5) days after  notice from the Company of such  breach;  (d) the
dissolution, liquidation or termination of legal

<PAGE>

existence of the Maker;  (e) the  appointment of a receiver,  trustee or similar
judicial  officer or agent to take charge of or liquidate any property of assets
of  the  Maker,  or  action  by  any  court  to  take  jurisdiction  of  all  or
substantially  all of  the  property  or  assets  of  the  Maker;  and  (f)  the
commencement of any proceeding under any provision of the Bankruptcy Code of the
United  States,  as now in  existence  or  hereafter  amended,  or of any  other
proceeding  under any federal or state law, now existing or hereafter in effect,
relating to bankruptcy,  reorganization,  insolvency,  liquidation or otherwise,
for the relief of debtors or  readjustment  of  indebtedness,  by or against the
Maker.

          4. Effect of Default.  The Maker agrees that upon the  occurrence  and
continuance of an Event of Default, at the option of the Company:

               (a) the entire  indebtedness  with accrued  interest  thereon due
under  this Note  shall be  immediately  due and  payable  without  presentment,
demand, protest or notice, all of which are hereby expressly unconditionally and
irrevocably  waived by the  Maker,  and until such  amount is paid in full,  the
Maker will pay, to the extent permitted by law, interest to the Company, payable
on a monthly basis,  on the outstanding  principal  balance of the Note from the
date of the  Event of  Default  until  payment  in full at the  rate of  fifteen
percent (15%) per annum; and

               (b) the  Company  may  call  for the  Maker  to sell  (the  "Call
Option") up to that number of Shares held by the Maker (the "Call Shares") equal
to the quotient  obtained by dividing (i) the outstanding  principal balance and
accrued  interest  owing  at the  date of the  Event of  Default  (the  "Default
Amount")  by (ii) $.50 (the "Call  Price"),  which Call Price  shall be credited
against the Default  Amount owing from the Maker under this Note. The closing of
the Call Option (the "Closing") shall take place on the fifth (5th) business day
following  written notice by the Company of its exercise of the Call Option.  At
the Closing,  the Maker shall  deliver  certificate(s)  representing  all of the
Closing  Shares,  which  certificate(s)  shall be either  endorsed  in blank for
transfer or together  with  appropriately  executed  stock  powers with  respect
thereto.

Failure to exercise  either  option under this Section 4 shall not  constitute a
waiver of the right to exercise the same in the event of any subsequent Event of
Default.

          5. Shares subject to Call Option.

               (a)  For so  long  as the  obligations  under  this  Note  remain
outstanding,  the Maker shall not create,  incur, assume or suffer to exist, any
mortgage,  pledge,  hypothecation,  assignment  for security  purposes,  deposit
arrangements,  encumbrances,  lien (statutory or other), or preference, priority
or other security  agreement or  preferential  arrangement of any kind or nature
whatsoever  (a  "Lien")  upon  the  Shares  acquired  pursuant  to the  Purchase
Agreement.

               (b) The Maker  represents  and warrants to the Company that Maker
has,  and at the time of the  Closing  of the Call  Option  in  accordance  with
Section 4 hereof shall have,  good record and marketable  title in fee simple to
the Shares and such  Shares are and, at such time will be, free and clear of all
Liens whatsoever.

                                       2
<PAGE>

          6.   Maximum   Interest.   Anything  in  this  Note  to  the  contrary
notwithstanding,  the Company shall not be permitted to charge, take or receive,
and the Maker shall not be obligated  to pay,  interest in excess of the maximum
rate from time to time permitted by applicable law.

          7.  Notice.  Any notice  required to be given under this Note shall be
given to the parties at the applicable  address set forth in the first paragraph
of this Note.

          8. Transfer. This Note may be transferred, sold, pledged, hypothecated
or otherwise granted as security by the Company.

          9.  Enforcement  Expenses.  The Maker agrees to pay all  out-of-pocket
costs and expenses incurred by the Company in connection with the enforcement of
this Note,  including,  without limitation,  all reasonable  attorneys' fees and
expenses.

          10. Waivers.

               (a) Failure by the Company to insist upon the strict  performance
by the  Maker of any  terms and  provisions  herein  shall not be deemed to be a
waiver of any terms and  provisions  herein,  and the Company  shall  retain the
right  thereafter to insist upon strict  performance by the Maker of any and all
terms and provisions of this Note or any document securing the repayment of this
Note.

               (b) The Maker waives diligence,  demand, presentment for payment,
notice of nonpayment,  protest and notice of protest, and notice of any renewals
or extensions of this Note.

          11.  Governing  Law.  This Note shall be governed by and  construed in
accordance  with the laws of the State of New York without  regard to principles
of  conflicts of law  provisions.  The Maker  hereby  consents to the  exclusive
jurisdiction of any state or federal court located in New York County.

          12.  Headings.  Article and section headings in this Note are included
herein for purposes of  convenience of reference only and shall not constitute a
part of this Note for any other purpose.

          13. Note Absolute and Binding. The Maker hereby agrees that subject to
the terms of this Note, its obligations hereunder shall be continuing,  absolute
and  unconditional,  [and  without the benefit of any defense,  claim,  set-off,
recoupment,  abatement or other right,  existing or future,  which the Maker may
have against  Company,  or any other entity,] and shall remain in full force and
effect  until the later of (i) the  Maturity  Date or (ii) the date Maker  fully
discharges any obligations due and owing to Company hereunder.

                          [SIGNATURE PAGE TO FOLLOW]

                                       3
<PAGE>

          IN WITNESS WHEREOF, the Maker has caused this Note to be executed this
14th day of August, 2000.

                                   /s/ Peter Lusk
                                   -----------------------------------------
                                   PETER LUSK

SUBSCRIBED and SWORN to before me
this ____ day of August, 2000

_________________________________________
Notary Public, State of _________________
My commission:___________________________

                                       4

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