Document:

THE SHARES  OFFERED  HEREBY  HAVE NOT BEEN  REGISTERED  UNDER THE UNITED  STATES
SECURITIES ACT OF 1933, (THE "1933 ACT"),  ARE RESTRICTED  SHARES (AS DEFINED IN
RULE 144 UNDER THE 1933 ACT) AND MAY NOT BE OFFERED FOR SALE,  SOLD OR OTHERWISE
TRANSFERRED  EXCEPT PURSUANT TO REGISTRATION  UNDER THE 1933 ACT OR AN EXEMPTION
FROM THE  REGISTRATION  REQUIREMENTS  OF THE 1933 ACT. THE SHARES ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY  AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED  UNDER SUCH LAWS  PURSUANT TO  REGISTRATION  OR AN EXEMPTION
THEREFROM.  THE SHARES  OFFERED  HEREBY HAVE NOT BEEN APPROVED OR DISAPPROVED BY
THE SECURITIES  AND EXCHANGE  COMMISSION OR ANY OTHER  REGULATORY  AUTHORITY ANY
REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

                            STOCK PURCHASE AGREEMENT

THIS STOCK PURCHASE AGREEMENT (the  "Agreement"),  dated as of July 12, 2000, is
entered into by and between GLOBAL  SOURCES  LIMITED.,  a Delaware  corporation,
with headquarters  located at 342 Madison Avenue,  New York, New York 10032 (the
"Company"), and the undersigned (the "Buyer").

                                   WITNESSETH:

WHEREAS,  the Company and the Buyer are executing and delivering  this Agreement
in reliance upon exemptions from Shares registration  afforded under Regulations
D ("Regulation  D") and S ("Regulation  S"), as promulgated by the United States
Securities and Exchange Commission (the "SEC") under the Securities Act of 1933,
as amended (the "1933 Act") and/or Section 4(2) of the 1933 Act; and

WHEREAS,  the Company will issue to Buyer upon the terms and  conditions of this
Agreement  shares of common  stock,  $.001  par  value  per share  (the  "Common
Stock"), of the Company.  The Common Stock is sometimes  hereinafter referred to
as the "Shares".

NOW  THEREFORE,  in  consideration  of the  premises  and the  mutual  covenants
contained  herein and other good and  valuable  consideration,  the  receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

1.   AGREEMENT TO PURCHASE; PURCHASE PRICE.

a.   Purchase.  The  undersigned  hereby  agrees to  purchase  from the  Company
     400,000  shares of Common Stock of the Company (the  "Shares") at $0.50 per
     share (the "Purchase Price Per Share"),  for an aggregate purchase price of
     $200,000 (the "Purchase Price").

b.   Form of Payment.  The Buyer shall pay the purchase  price for the Shares by
     delivering  immediately  available  good funds in United States  Dollars to
     Joseph  B.  LaRocco,  as  the  escrow  agent  (the  "Escrow  Agent").  Upon
     confirmation that the Purchase Price has been received by the Escrow Agent,
     the Company shall cause its transfer agent to deliver to the

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     Escrow Agent a  certificate  representing  the Shares in favor of the Buyer
     duly executed on behalf of the Company. Upon receipt by the Escrow Agent of
     a facsimile of the  certificate  representing  the Shares and evidence that
     the original  certificate is forthcoming by overnight  courier,  the Escrow
     Agent  shall wire the  Purchase  Price,  less a $5,000  escrow  fee, to the
     Company.

c.   Method of Payment. Payment into escrow of the purchase price for the Common
     Stock shall be made by wire transfer of funds to:

     First Union Bank of Connecticut
     300 Main Street, P. O. Box 700
     Stamford, CT  06904-0700
     ABA #:      021101108
     Swift #:    FUNBUS33
     Account #:  [To be disclosed to Buyer]
     Acct.Name:  Joseph B. LaRocco, Esq.  Trustee Account

Not later than 4:00 p.m., Eastern Standard Time, on or before July 12, 2000, the
Buyer shall wire the Purchase  Price to the Escrow Agent.  On or before July 13,
2000 the Company shall  deliver the  certificate  representing  the Shares being
purchased  to the Escrow  Agent.  Once the Escrow  Agent is in  possession  of a
facsimile evidencing the certificate representing the Shares being purchased and
is in receipt of the Purchase  Price into his escrow account he shall notify the
Company  and wire the  Purchase  Price,  less the escrow  fee, to the Company in
accordance  with  instructions  received  from the  Company  and  upon  receipt,
overnight the original certificate representing the Shares to the Buyer.

            The Escrow Agent shall not be liable for any action taken or omitted
by him in good  faith  and in no event  shall  the  Escrow  Agent be  liable  or
responsible  except  for the  Escrow  Agent's  own gross  negligence  or willful
misconduct.  The  Escrow  Agent has made no  representations  or  warranties  in
connection with this transaction and has not been involved in the negotiation of
the terms of this Agreement or any matters relative  thereto.  The Buyer and the
Company each agree to indemnify and hold harmless the Escrow Agent from and with
respect to any suits,  claims,  actions or liabilities arising in any way out of
this  transaction  including the  obligation to defend any legal action  brought
which in any way arises out of or is related to this Agreement. The Escrow Agent
is not  rendering  securities  advice to anyone  with  respect to this  proposed
transaction;  nor is the Escrow Agent opining on the  compliance of the proposed
transaction under applicable securities law.

2.  BUYER  REPRESENTATIONS,   WARRANTIES;  ACCESS  TO  INFORMATION;  INDEPENDENT
INVESTIGATION.

The Buyer represents and warrants to, and covenants and agrees with, the Company
as follows:

a. The Buyer is purchasing  the Shares for its own account for  investment  only
and not with a view towards the resale,  public sale or distribution thereof and
not with a view to or for sale in connection with any distribution thereof;

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b. The Buyer is (i) an "accredited investor" as that term is defined in Rule 501
of the  General  Rules  and  Regulations  under  the 1933 Act by  reason of Rule
501(a),  (ii)  experienced  in making  investments of the kind described in this
Agreement and the related  documents,  (iii) able, by reason of the business and
financial  experience of its officers (if an entity) and  professional  advisors
(who are not affiliated  with or compensated in any way by the Company or any of
its  affiliates or selling  agents),  to protect its own interests in connection
with the transactions  described in this Agreement,  and the related  documents,
and if Buyer is a natural person,  Buyer further represents and warrants that he
has adequate means of providing for his financial needs and contingencies.  (iv)
able to afford the  entire  loss of its  investment  in the Shares and (v) not a
"U.S.  Person," as such term is defined in Rule 902(k) of  Regulation  S and did
not purchase or acquire the Shares in the United States from, or for the account
or benefit of, U.S. Persons (as such term is defined under Regulation S).

c. All  subsequent  offers  and sales of the  Shares by the Buyer  shall be made
pursuant to  registration  under the 1933 Act or pursuant to an  exemption  from
registration;

d. The Buyer  understands  that the  Shares are and will be, as the case may be,
offered and sold, to it in reliance on specific exemptions from the registration
requirements  of  federal  and state  securities  laws and that the  Company  is
relying  upon the truth and accuracy of, and the Buyer's  compliance  with,  the
representations,  warranties, agreements, acknowledgements and understandings of
the Buyer  set  forth  herein in order to  determine  the  availability  of such
exemptions  and the  eligibility of the Buyer to receive an offer of and acquire
the Shares, as the case may be;

e. The Buyer and its  advisors,  if any,  have  either been  furnished  with all
materials  relating to the business,  finances and operations of the Company and
materials relating to the offer and sale of the Shares which have been requested
by the Buyer or have had access  thereto.  The Buyer and its  advisors,  if any,
have been  afforded  the  opportunity  to ask  questions of the Company and have
received  complete  and  satisfactory  answers  to any such  inquiries.  Without
limiting the generality of the foregoing, the Buyer has also had the opportunity
to obtain and to review the Company's  (1) Quarterly  Reports on Form 10-QSB for
the fiscal  quarters  ended December 31, 1999 and March 31, 2000, (2) Forms 8-K,
if any,  filed since March 31, 1999 and (3) Annual Report on Form 10-KSB for the
period ended December 31, 1998, (collectively, the "Company's SEC Documents").

f. The Buyer  understands  that its  investment  in the  Shares  involves a high
degree of risk;

g. The Buyer understands that no federal or state agency or any other government
or governmental  agency has passed on or made any  recommendation or endorsement
of the Shares;

h. This Agreement has been duly and validly  authorized,  executed and delivered
on  behalf  of the  Buyer  and is a valid  and  binding  agreement  of the Buyer
enforceable  in  accordance  with its  terms,  subject as to  enforceability  to
general principles of equity and to bankruptcy, insolvency, moratorium and other
similar laws affecting the enforcement of creditors' rights generally.

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i. No Short Sales.  Buyer expressly  agrees that until such time it has sold all
of the Shares that it shall not,  directly or  indirectly,  through an affiliate
(as that term is defined under Rule 405  promulgated  under the 1933 Act) or by,
with or through an unrelated third party or entity, whether or not pursuant to a
written or oral understanding,  agreement,  arrangement,  scheme, or artifice of
any nature whatsoever, engage in the short selling of the Company's Common Stock
or any other  equity  Shares of the Company  whether now  existing or  hereafter
issued,  or engage in any other activity of any nature  whatsoever  that has the
same  affect as a short  sale,  or is a de facto or de jure short  sale,  of the
Company's  Common Stock or any other equity  security of the Company whether now
existing or  hereafter  issued,  including,  but not limited to, the sale of any
rights pursuant to any understanding, agreement, arrangement, scheme or artifice
of any nature whatsoever,  whether oral or in writing, relative to the Company's
Common Stock or any other equity  Shares of the Company  whether now existing or
hereafter created.

j. The Buyer is not  purchasing  the Shares as a result of, or pursuant  to, any
advertisement,   article,   notice  or  other  communication  published  in  any
newspaper,  magazine or similar media or broadcast  over  television or radio or
presented at any seminar or meeting whose  attendees,  including the Buyer,  had
been invited by any general advertising or general solicitation.

3. COMPANY REPRESENTATIONS

The Company represents and warrants to the Buyer that:

a. Valid Issuance of Common Stock. The Company has an authorized  capitalization
consisting of 50,000,000  shares of common stock,  par value of $.001 per share,
and 20,000,000  shares of preferred  stock,  par value of $.001 per share. As of
the date of this  Agreement,  the Company has issued and  outstanding  8,333,036
shares of Common Stock. As of the date of this Agreement 1,581,935 shares of the
preferred stock are issued and outstanding. All of the shares of Common Stock of
the Company issued to date have been duly and validly  authorized and issued and
are fully  paid and  non-assessable.  Except as set forth in the  Company's  SEC
Documents,  there  are  no  outstanding  options,  warrants,  scrip,  rights  to
subscribe to, calls or commitments of any character  whatsoever  relating to, or
Shares or rights  convertible  into, any shares of capital stock of the Company,
or contracts,  commitments,  understandings or arrangements by which the Company
is or may become bound to redeem or issue additional  shares of capital stock of
the Company or options,  warrants,  scrip,  rights to subscribe to, or Shares or
rights  convertible into, and shares of capital stock of the Company.  Except as
set forth in this Agreement,  there are no Shares or instruments  containing any
anti-dilution,  right of first refusal,  preemptive rights or similar provisions
that will be triggered by the issuance of the Shares pursuant to this Agreement.
Upon the issuance of such Shares,  they will be duly and validly  issued,  fully
paid and  non-assessable  and will not  subject  the holder  thereof to personal
liability by reason of being such holder.

b.  Reporting  Company  Status.  The Company is a  corporation  duly  organized,
validly  existing and in good  standing  under the laws of the State of Delaware
and is duly qualified as a foreign corporation in all jurisdictions in which the
failure to so qualify  would have a material  adverse  effect on the Company and
its  subsidiaries  taken as a whole. The Company has registered its Common Stock
pursuant to Section 12 of the  Securities  Exchange Act of 1934, as amended (the

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"Exchange  Act"),  and the Common  Stock is listed  and  traded on OTC  Bulletin
Board.  The Company has filed all material  required to be filed pursuant to all
reporting  obligations  under either Section 13(a) or l5(d) of the Exchange Act,
and has  received  no  notice,  either  oral or  written,  with  respect  to the
continued eligibility of the Common Stock for such listing. The Company has also
recently  received  approval  from the SEC of its Form  10-SB and has  commenced
trading on the OTC Bulletin Board under the symbol GLSL.

c. Stock  Purchase  Agreement;  Registration  Rights  Agreement and Stock.  This
Agreement and the Registration  Rights Agreement,  the form of which is attached
hereto  (the  "Registration  Rights  Agreement"),  have  been  duly and  validly
authorized by the Company,  this  Agreement has been duly executed and delivered
by the Company and this  Agreement is, and the  Registration  Rights  Agreement,
when  executed  and  delivered  by the  Company,  will  be,  valid  and  binding
agreements of the Company enforceable in accordance with their respective terms,
subject  as  to   enforceability   to   general   principles   of  equity,   the
indemnification   provisions  of  the  Registration  Rights  Agreement,  and  to
bankruptcy,  insolvency,  moratorium,  and  other  similar  laws  affecting  the
enforcement  of  creditors'  rights  generally;  and the Shares will be duly and
validly issued,  fully paid and  non-assessable  when delivered on behalf of the
Company upon payment  therefor in  accordance  with this  Agreement,  subject to
general principles of equity and to bankruptcy, insolvency, moratorium, or other
similar laws affecting the enforcement of creditors' rights generally.

d.  Non-contravention.  The  execution  and delivery of this  Agreement  and the
Registration  Rights Agreement by the Company,  the issuance of the Shares,  and
the consummation by the Company of the other  transactions  contemplated by this
Agreement,  the Registration  Rights Agreement,  and the Common Stock do not and
will not conflict  with or result in a breach by the Company of any of the terms
or provisions of or constitute a default under, the certificate of incorporation
or by-laws of the Company, or any material indenture,  mortgage,  deed of trusts
or other material  agreement or instrument to which the Company is a party or by
which it or any of its properties or assets are bound, or any material  existing
applicable law, rule, or regulation or any applicable decree, judgment, or order
of any court,  United States federal or state  regulatory  body,  administrative
agency, or other  governmental body having  jurisdiction over the Company or any
of its properties or assets, except such conflict, breach or default which would
not have a material adverse effect on the transactions contemplated herein.

e. Approvals. No authorization,  approval or consent of any court,  governmental
body,  regulatory  agency,  self-regulatory  organization,  or stock exchange or
market is required to be  obtained by the Company for the  issuance  and sale of
the Shares to the Buyer as contemplated by this Agreement.

f. SEC Filings.  None of the Company's  filings with the Securities and Exchange
Commission  since December 8, 1999 contained,  at the time they were filed,  any
untrue statement of a material fact or omit to state any material fact necessary
to make the statements  made therein in light of the  circumstances  under which
they were made, not misleading. The Company has since December 8, 1999 filed all
requisite  forms,  reports and exhibits thereto with the Securities and Exchange
Commission.

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g.  Absence of  Certain  Changes.  Since  December  8,  1999,  there has been no
material  adverse  change and no material  adverse  development in the business,
properties,  operations,  financial condition, outstanding Shares, or results of
operations of the Company,  except as disclosed in the documents  referred to in
Section 2(f) hereof.

h. [Intentionally omitted.]

i. Absence of  Litigation.  Except as disclosed in the documents  referred to in
Section  2(f)  hereof,  there  is  no  action,  suit,  proceeding,   inquiry  or
investigation  before or by any court,  public  board or body pending or, to the
knowledge  of the  Company  or any of its  subsidiaries,  threatened  against or
affecting  the  Company  or any  of its  subsidiaries,  wherein  an  unfavorable
decision,  ruling  or  finding  would  have a  material  adverse  effect  on the
properties,  business,  condition (financial or other), or results of operations
of the  Company  and  its  subsidiaries  taken  as a whole  or the  transactions
contemplated  by this Agreement or any of the documents  contemplated  hereby or
which would materially  adversely affect the validity or  enforceability  of, or
the authority or ability of the Company to perform its obligations  under,  this
Agreement or any of such other documents.

j.  Absence of Events of Default.  Except as  disclosed  in writing to the Buyer
(including  through the  publicly  filed  documents  of the Company) no Event of
Default,  as defined in any  agreement  to which the Company is a party,  and no
event  which,  with the giving of notice or the  passage of time or both,  would
become an Event of Default (as so  defined),  has  occurred  and is  continuing,
which would have a material adverse effect on the Company's  financial condition
or results of operations.

k. No Default.  Except as disclosed in writing to the Buyer  (including  through
the  publicly  filed  documents of the Company) the Company is not in default in
the performance or observance of any material obligation, agreement, covenant or
condition contained in any material indenture,  mortgage, deed of trust or other
material  instrument  or  agreement to which it is a party or by which it or its
property may be bound,  and neither the  execution  nor the  performance  by the
Company of its  obligations  under this Agreement or the delivery of the Shares,
will  conflict  with or result in the breach or violation of any of the terms or
provisions  of, or  constitute a default or result in the creation or imposition
of any lien or charge on any assets or  properties  of the  Company  under,  any
material  indenture,  mortgage,  deed of trust or other  material  agreement  or
instrument  to  which  the  Company  is a party  or by  which it is bound or any
statute or the Certificate of  Incorporation  or By-laws of the Company,  or any
decree, judgment,  order, rule or regulation of any court or governmental agency
or body having  jurisdiction over the Company or its properties,  or its listing
agreement with respect to any securities exchange or trading market on which the
Common Stock is listed.

l. Prior Issues.  During the twelve (12) months  preceding the date hereof,  the
Company  has not  issued  any debt  Shares  or  convertible  Shares  in  capital
transactions which have not been fully disclosed in the Company's SEC Documents.

m. Certain Transactions. Except as set forth in the SEC Documents and except for
arm's length  transactions  pursuant to which the Company makes  payments in the
ordinary  course of

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business upon terms no less  favorable  than the Company could obtain from third
parties  and  other  than  the  grant of stock  options,  none of the  officers,
directors,  or  employees  of the Company (or any spouse or relative of any such
person) is presently a party to any transaction with the Company (other than for
services  as  employees,  officers  and  directors),   including  any  contract,
agreement or other  arrangement  providing for the  furnishing of services to or
by,  providing for rental of real or personal  property to or from, or otherwise
requiring payments to or from any officer,  director or such employee or, to the
knowledge of the Company, any corporation, partnership, trust or other entity in
which any officer,  director, or any such employee has a substantial interest or
is an officer, director, trustee or partner.

4. CERTAIN COVENANTS AND ACKNOWLEDGMENTS.

a. Transfer  Restrictions.  The Buyer  acknowledges that (1) the Shares have not
been and are not  being  registered  under the  provisions  of the 1933 Act and,
except as provided in the  Registration  Rights  Agreement,  the Shares have not
been and are not being registered under the 1933 Act, and may not be transferred
unless  (A)  subsequently  registered  thereunder,  or (B) the Buyer  shall have
delivered to the Company an opinion of counsel, reasonably satisfactory in form,
scope and  substance  to the  Company  and its  counsel,  to the effect that the
Shares  to be sold or  transferred  may be sold or  transferred  pursuant  to an
exemption from such registration; (2) any sale of the Shares made in reliance on
Rule 144 promulgated  under the 1933 Act may be made only in accordance with the
terms of said Rule and further,  if said Rule is not  applicable,  any resale of
such Shares under  circumstances in which the seller, or the person through whom
the sale is made,  may be deemed to be an  underwriter,  as that term is used in
the 1933 Act, may require  compliance  with some other  exemption under the 1933
Act or the rules and  regulations  of the SEC  thereunder;  and (3)  neither the
Company nor any other  person is under any  obligation  to  register  the Shares
(other than pursuant to the Registration Rights Agreement) under the 1933 Act or
to comply with the terms and conditions of any exemption  thereunder.  Except at
stated above,  Buyer agrees not to offer, sell or deliver the Shares at any time
within the United  States or to or for the account or benefit  of, U.S.  Persons
(as such term is defined under Regulation S), except in compliance with the safe
harbor provisions  contained in Regulation S, or pursuant to registration of the
Shares under the 1933 Act or pursuant to an exemption  from  registration  under
the 1933 Act.

b. Restrictive Legend. The Buyer acknowledges and agrees that until such time as
the  Shares  have  been  registered  under the 1933 Act as  contemplated  by the
Registration  Rights  Agreement  and sold in accordance  with such  Registration
Statement,  the  shares of Common  Stock,  shall  bear a  restrictive  legend in
substantially  the  following  form  (and a stop  transfer  order  may be placed
against transfer of the shares of Common Stock):

          "THE SHARES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
          "ACT"),  AND MAY NOT BE OFFERED OR SOLD EXCEPT (A)  PURSUANT
          TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, (B) TO
          THE EXTENT  APPLICABLE,  PURSUANT  TO RULE 144 UNDER THE ACT
          (OR  ANY  SIMILAR  RULE

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          UNDER SUCH ACT RELATING TO THE  DISPOSITION  OF SHARES),  OR
          (C) UPON THE  DELIVERY  BY THE  HOLDER TO THE  COMPANY OF AN
          OPINION OF COUNSEL,  REASONABLY  SATISFACTORY  TO COUNSEL TO
          THE ISSUER,  STATING  THAT AN  EXEMPTION  FROM  REGISTRATION
          UNDER SUCH ACT IS AVAILABLE."

It shall be the Company's  responsibility  to take all necessary  actions and to
bear all such costs to issue the free trading  unlegended  certificate of Common
Stock as provided herein,  including the responsibility and cost for delivery of
an opinion letter to the transfer agent,  if so required.  Upon surrender of any
Share  certificates  that are to be sold in part, the Company shall issue to the
Buyer new Share certificates equal to the unsold amount.

c. Registration  Rights  Agreement.  The  parties hereto agree to enter into the
Registration  Rights  Agreement  on or before the Closing  Date (as  hereinafter
defined).

d. Filings.  The Company  undertakes and agrees to make all necessary filings in
connection  with the sale of the Common Stock to the Buyer as required by United
States securities laws and regulations,  or by Nasdaq.  Buyer agrees to make all
necessary filings with the SEC, including Schedule 13D, if applicable.

e. Reporting Status. Provided the Buyer beneficially owns any of the Shares, the
Company  shall file all reports  required  to be filed with the SEC  pursuant to
Section 13 or 15(d) of the Exchange Act and the Company  shall not terminate its
status as an issuer  required to file reports under the Exchange Act even if the
Exchange  Act  or  the  rules  and  regulations  thereunder  would  permit  such
termination.  Notwithstanding the foregoing, the provisions of this clause shall
terminate  once the Buyer  becomes  eligible to sell the Common  Stock issued in
this transaction pursuant to Rule 144(K) without volume limitations.

f. Use of  Proceeds.  The  Company  will use the  proceeds  from the sale of the
Shares (excluding  amounts paid by the Company for legal fees and escrow fees in
connection with the sale of the Common Stock) for working capital and shall not,
except for  investment  in  companies  to be acquired  with the proceeds of this
transaction,  directly or indirectly  (except in any situation where the Company
is acquired by merger or otherwise  by a third party) use such  proceeds for any
loan to or investment in any other corporation, partnership, enterprise or other
person.

g. Publicity. The Company and Buyer shall consult with each other in issuing any
press  releases  or  otherwise  making  public  statements  with  respect to the
transactions contemplated hereby and no party shall issue any such press release
or otherwise make any such public statement without the prior written consent of
the other party,  which consent shall not be  unreasonably  withheld or delayed,
except that no prior consent shall be required if such disclosure is required by
law, in which such case the disclosing  party shall provide the other party with
prior  notice of such  public  statement.  Notwithstanding  the  foregoing,  the
Company shall not publicly  disclose the name of Buyer without the prior written
consent of such Buyer, except to the extent required by law.

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<PAGE>

5. REMOVAL OF LEGEND; COVER; AND DEMAND REDEMPTION.

a. The Company shall pay any documentary, stamp or similar issue or transfer tax
due on the issue of the free trading unlegended Shares. However, the Buyer shall
pay any such taxes which are due because  such Shares are issued in a name other
than its name.

b. After the  effectiveness of the registration  statement  covering the Shares,
the Company shall pay Buyer a cash fee of two percent (2%) of the Purchase Price
per thirty  calendar day period (or a pro rata amount  thereof),  for the period
that the following obligations remain unsatisfied:  (i) Company fails to deliver
free trading  unlegended  Shares to the Buyer within ten (10)  business  days of
Company's  receipt of the legended Shares from Buyer;  and (ii) Company fails to
make a cash payment  within the time periods set forth in this  Agreement or the
Registration Rights Agreement, as the case may be. The Company acknowledges that
its failure to deliver free trading  unlegended  Shares and/or failure to make a
cash  payment in a timely  manner  will cause the Buyer to suffer  damages in an
amount that will be difficult to ascertain.  Accordingly, the parties agree that
it is  appropriate  to include in this  Agreement  a  provision  for  liquidated
damages. The parties acknowledge and agree that the liquidated damages provision
set forth in this section  represents the parties' good faith effort to quantify
such  damages  and, as such,  agree that the form and amount of such  liquidated
damages  are  reasonable  and will not  constitute  a  penalty.  The  payment of
liquidated damages shall not relieve the Company from its obligations to deliver
free trading  unlegended  Shares  and/or make a cash payment in a timely  manner
pursuant to the terms of this  Agreement.  Nothing  contained in this  Agreement
shall be deemed to  establish or require the payment of interest to the Buyer at
a rate in excess of the maximum rate  permitted  by governing  law. In the event
that the rate of interest required to be paid exceeds the maximum rate permitted
by governing law, the rate of interest  required to be paid thereunder  shall be
automatically  reduced to the maximum rate permitted under the governing law and
such excess shall be returned  with  reasonable  promptness  by the Buyer to the
Company.

c. Cover.  After the  effectiveness of the registration  statement  covering the
Shares,  if, the Company fails for any reason to deliver free trading unlegended
Shares within ten (10) business days  following  receipt of the legended  Shares
from Buyer and thereafter, the Buyer purchases, in an open market transaction or
otherwise,  shares of Common  Stock  (the  "Covering  Shares")  in order to make
delivery  in  satisfaction  of a sale of Common  Stock by the Buyer  (the  "Sold
Shares"),  which  delivery  Buyer  anticipated  to make  using the free  trading
unlegended Shares (a "Buy-In"),  the Company shall pay to the Buyer, in addition
to all other amounts contemplated in other provisions of this Agreement, and not
in lieu thereof,  the Buy-In Adjustment  Amount (as defined below).  The "Buy-In
Adjustment Amount" is the amount equal to the excess, if any, of (x) the Buyer's
total purchase price (including brokerage commissions,  if any) for the Covering
Shares over (y) the net proceeds (after brokerage commissions,  if any) received
by the Buyer from the sale of the Sold Shares.  The Company shall pay the Buy-In
Adjustment  Amount to the Buyer in immediately  available funds immediately upon
demand  by the  Buyer.  By way of  illustration  and  not in  limitation  of the
foregoing, if the Buyer purchases shares of Common Stock having a total purchase
price  (including  brokerage  commissions)  of  $11,000  to cover a Buy-In  with
respect  to shares of Common  Stock it sold for net  proceeds  of  $10,000,  the
Buy-In Adjustment Amount which Company will be required to pay to the Buyer will
be $1,000.

                                       9
<PAGE>

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, 2000.  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.

e. Event of  Default.  In the event the  Company  fails to pay any  amounts  due
within  the  time  period  required  under  the  terms of this  Agreement,  such
non-payment shall be an "Event of Default".

6.  Adjustments

a.  Stock  dividends;  splits.  If after the date on which the  Shares are first
issued  to Buyer  and  while  Buyer  still  owns  said  Shares,  the  number  of
outstanding  shares of Common Stock is increased by a stock dividend  payable in
shares of Common Stock or by a split of shares of Common Stock or other  similar
event,  then,  on the date  following  the date fixed for the  determination  of
holders of Common Stock  entitled to receive such stock  dividend or split,  the
number of shares of Common  Stock  purchased  by the Buyer shall be increased in
proportion to

                                       10
<PAGE>

such increase in outstanding shares (ignoring for this purpose any provision for
the repurchase or cash payment of fractional shares).

b. Aggregation of shares. If after the date on which the Shares are first issued
to Buyer and while  Buyer  still owns said  Shares,  the  number of  outstanding
shares  of  Common  Stock  is  decreased  by  a  consolidation,  combination  or
reclassification  of shares of Common Stock or other similar event,  then, after
the effective date of such consolidation,  combination or reclassification,  the
number of shares of Common  Stock  purchased  by the Buyer shall be decreased in
proportion to such decrease in outstanding shares (ignoring for this purpose any
provision for the repurchase or cash payment of fractional shares).

c.  Reorganization,  etc. If after the date on which the Shares are first issued
to the Buyer, any capital  reorganization or  reclassification of the Shares, 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 Buyer 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,  Shares,  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 provision shall be made with
respect to the rights and interests of the Buyer to the end that the  provisions
hereof shall  thereafter be  applicable,  as nearly as may be in relation to any
share of stock,  Shares,  or assets  thereafter  deliverable  upon the  exercise
hereof.  The Company shall not effect any such  consolidation,  merger,  or sale
unless prior to the  consummation  thereof the successor  corporation  (if other
than  the  Company)   resulting  from  such  consolidation  or  merger,  or  the
corporation  purchasing such assets, shall assume by written instrument executed
and delivered to the Buyer the obligation to deliver to the Buyer such shares of
stock,  Shares, or assets as, in accordance with the foregoing  provisions,  the
Buyer may be entitled to purchase. Upon the occurrence of any event specified in
this section,  the Company shall give written notice of the record date for such
dividend,  distribution,  or subscription  rights, or 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  participate  in such
dividend, distribution, or subscription rights, or shall be entitled to exchange
their Common Stock for stock,  Shares,  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 event.

d. Notices of Changes.  Upon every  adjustment of the number of shares of Common
Stock purchased by the Buyer, pursuant to this Agreement, the Company shall give
written  notice  thereof to the Buyer,  which notice shall state the increase or
decrease,  if any,  in the  number of shares of Common  Stock  purchased  by the
Buyer,  setting forth in  reasonable  detail the method of  calculation  and the
facts upon which such calculation is based.

                                       11
<PAGE>

7. TRANSFER AGENT INSTRUCTIONS.

(i) Promptly following the delivery by the Buyer of the aggregate purchase price
for the Shares in accordance  with Section l(b) hereof the Company will instruct
its transfer agent to issue  certificates for the Shares purchased,  bearing the
restrictive legend specified in Section 4(b) of this Agreement. The Shares shall
be registered in the name of the Buyer or its nominee (duly assigned to), and in
such  denominations  to be  specified  by the Buyer.  If the Buyer  provides the
Company with an opinion of counsel  reasonably  satisfactory  to the Company and
its counsel that  registration  of a resale by the Buyer of any of the Shares in
accordance  with clause (1)(B) of Section 4(a) of this Agreement is not required
under the 1933 Act,  the  Company  shall  (except as  provided  in clause (2) of
Section 4(a) of this  Agreement)  permit the transfer of the Shares.  (ii) After
effectiveness of a registration statement covering the legended Shares, and upon
receipt of the legended Shares from Buyer,  the Company shall deliver the Shares
to the Buyer,  free of any restrictive  legend or stop transfer  instructions to
the  address  specified  by the  Buyer  within  ten  (10)  business  days of the
Company's receipt of the legended Shares.

8. DELIVERY INSTRUCTIONS.

The Shares shall be  delivered  by the Company to the Escrow  Agent  pursuant to
Section l(b) hereof.

9. CLOSING DATE.

The date and time of the  issuance and sale of the Shares (the  "Closing  Date")
shall be July 12,  2000.  The closing  shall  occur on the  Closing  Date at the
offices of the Escrow Agent.  Notwithstanding anything to the contrary contained
herein,  the Escrow Agent will be authorized  to release the funds  representing
the Purchase Price for the Common Stock, and the  certificates  representing the
shares of the Common Stock only upon satisfaction of the conditions set forth in
Sections 10 and 11 hereof.

10. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.
The Buyer  understands  that the Company's  obligation to sell the Shares to the
Buyer pursuant to this Agreement is conditioned upon:

a. The receipt and  acceptance by the Company of such  Agreement as evidenced by
execution of such Agreement;

b. The accuracy on the Closing Date of the representations and warranties of the
Buyer  contained  in  this  Agreement  as if made on the  Closing  Date  and the
performance  by the Buyer on or before the  Closing  Date of all  covenants  and
agreements of the Buyer required to be performed on or before the Closing Date;

c. The  receipt and  acceptance  by the Company of the  completed  and  executed
Buyer's Questionnaire attached hereto as Exhibit A.

                                       12
<PAGE>

d.  There  shall not be in effect any law,  rule or  regulation  prohibiting  or
restricting the transactions  contemplated  hereby,  or requiring any consent or
approval which shall not have been obtained.

11. CONDITIONS TO THE BUYER'S OBLIGATION TO PURCHASE.

The Company understands that the Buyer's obligation to purchase the Common Stock
is conditioned upon:

a. Acceptance by Buyer of the Agreement for the sale of Shares,  as indicated by
execution of this Agreement;

b. Delivery by the Company to the Escrow Agent of the  certificate  representing
the Shares in accordance  with this  Agreement;  as contemplated in Section 2(b)
hereof;

c. The accuracy on the Closing Date of the representations and warranties of the
Company  contained  in this  Agreement  as if made on the  Closing  Date and the
performance  by the Company on or before the Closing Date of all  covenants  and
agreements  of the  Company  required to be  performed  on or before the Closing
Date; and

d. The Company shall have its counsel  prepare an opinion letter  concerning the
authority of the Company to make this offering. The Company shall also prepare a
Board  Resolution  authorizing  this  offering.  The  opinion  letter  and Board
Resolution  shall be delivered  to the Escrow Agent who shall  deliver a copy to
the Buyer.

e. Messrs.  Mazzuto and Strupp signing a guarantee to pay the demand  redemption
amount in the event of nonpayment by the Company as further described in Section
5d.

12. GOVERNING LAW; ARBITRATION.

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  Company  is in  default  under  the  terms of this  Agreement  or the
Registration rights Agreement.

13.  NOTICES.  Any notice  required  or  permitted  hereunder  shall be given in
writing  (unless  otherwise  specified  herein) and shall be deemed  effectively
given upon personal  delivery or seven business days after deposit in the United
States  Postal  Service,  by (a) advance copy by fax, and (b) mailing by express
courier or registered or certified mail with postage and fees prepaid, addressed
to each of the other parties thereunto entitled at the following  addresses,  or
at such other  addresses as a party may  designate  by ten days advance  written
notice to each of the other parties hereto.

                                       13
<PAGE>

The information for notices to the respective parties is as follows:

COMPANY:                Global Sources Limited
                        342 Madison Avenue
                        New York, New York 10032

Telecopier No.:         1-212-687-0555
Phone No.:              1-212-687-6363

with a copy to:         Martin Eric Weisberg, Esq.
                        Parker Chapin, LLP
                        The Chrysler Building
                        405 Lexington Avenue
                        New York, New York 10174

Telecopier No.:         1-212-704-6157
Phone No:               1-212-704-6050

BUYER:                  Ira Terk
                        At the address set forth on the  signature  page of this
Agreement.

ESCROW AGENT:           Joseph B. LaRocco, Esq.
                        49 Locust Avenue, Suite 107
                        New Canaan, CT 06840

Telecopier No.:         1-203-966-0363
Phone No.:              1-203-966-0566

13. MISCELLANEOUS.

(a) Each party's  representations and warranties shall survive the execution and
delivery hereof of this Agreement.

(b) Severability.  In the event that any one or more of the provisions contained
in this  Agreement  or any  portion  thereof  shall for any reason be held to be
invalid,  illegal or  unenforceable  in any  respect,  this  Agreement  shall be
reformed,  construed and enforced as if such invalid,  illegal or  unenforceable
provision had never been contained herein.

(c) Binding  Nature.  This  Agreement will be binding upon and will inure to the
benefit of any successor or successors of the parties hereto.

(d)  Counterparts.  This Agreement 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

                                       14
<PAGE>

instrument.  Notwithstanding  anything  contained herein to the contrary,  it is
expressly agreed that the Agreement may be executed with facsimile signatures.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       15
<PAGE>

IN WITNESS WHEREOF, this Agreement has been duly executed by the Buyer or one of
its officers thereunto duly authorized as of the date set forth below.

NUMBER OF SHARES OF COMMON STOCK TO BE PURCHASED:  400,000

AGGREGATE PURCHASE PRICE OF SUCH COMMON STOCK:  $200,000

SIGNATURE OF BUYER: /s/ Ira Terk

IN WITNESS WHEREOF, the undersigned represents that the foregoing statements are
true and correct and that it has caused this Stock Purchase Agreement to be duly
executed on its behalf this _______day of July, 2000.

-----------------------------     ---------------------------------
Address                           Printed Name of Subscriber

Telecopier No. ______________     By:______________________________
                                     (Signature of Authorized Person)

-----------------------------     ------------------------------
Jurisdiction of Incorporation     Printed Name and Title
or Organization

Federal Identification No.: _________________________

COMPANY ACCEPTANCE:

This Agreement has been accepted as of the date set forth below.

GLOBAL SOURCES LIMITED

By:  _____________________________              Date:____________________

Printed Name and Title: __________________________________________

                                       16
<PAGE>

                                    EXHIBIT A

                       CONFIDENTIAL INVESTOR QUESTIONNAIRE

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

                             GLOBAL SOURCES LIMITED
                                 ---------------

Instructions:  Individual  investors  should  complete items 1 through 3 of this
               Investor Questionnaire and sign on page 19.*

1.    General Information:
      -------------------

        1.1         Name:

                    Age:  ____________ U.S. Citizen:  Yes ___ No ___

                    Social Security #___________________________________

                    Home Address [include street, city, state and zip code]

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

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

        1.2         Employer: __________________________________________

                    Business Tel.: _____________________________________

                    Business Address [include street, city, state and zip code]

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

                    ----------------------------------------------------
                    Nature of Business: ________________________________

                    Position: __________________________________________

--------
     * If there is more than one  Investor,  other  than  husband  and  wife,  a
separate  Confidential  Investor  Questionnaire  must be completed for each such
Investor and attached to this Confidential Investor  Questionnaire.  For husband
and wife investors,  complete this Confidential Investor  Questionnaire for both
husband and wife.

                                       17
<PAGE>

        1.3         Send correspondence to:  Home ___ Office ___

        1.4         If ownership of stock is to be other than in individual
capacity (i.e. joint tenancy, community property, custodian), indicate name of
owner(s):

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

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

2.    Investor Suitability Standards:
      ------------------------------

        2.1         I,  individually,  or jointly  with my spouse,  have a net
worth,  including home, home furnishings and automobiles (but in each case net
of any indebtedness secured by those assets), of at least $1,000,000.

                                 Yes ___ No ___

        2.2         I  had  an  individual  income,  not  including  the  income
of  my spouse (regardless of whether this is a joint investment with my spouse),
in excess of $200,000 in each of the two most recently completed  years or joint
income, together  with my spouse,  in excess of $300,000 in each of those years,
and I have a reasonable  expectation  that my individual income or joint income,
as applicable, will reach the same level this year.

                                 Yes ___ No ___

        2.3         I am a  director  or  executive  officer  of Global  Sources
Limited or any affiliate thereof.**

                                 Yes ___ No ___

        The term "individual income" means individual  adjusted gross income (as
reported on a Federal  income tax return),  increased by the following  amounts:
(a) any deduction for a portion of long-term  capital gains (Section 1202 of the
Internal  Revenue Code (the "Code"));  (b) any deduction for depletion  (Section
611 et seq. of the Code); (c) any exclusion for interest on tax exempt municipal
obligations  (Section 103 of the Code);  and (d) any losses of a partnership  or
limited liability company allocated to the individual (as reported on Schedule E
of Form 1040).

--------
**    The SEC defines "affiliate" to mean "a person that directly, or indirectly
through one or more  intermediaries,  controls or is controlled  by, or is under
common control with" a specified person.

                                       18
<PAGE>

3.    Investment Experience/NASD Affiliation:
      --------------------------------------

        3.1         The undersigned has previously invested in private companies
that  involve a  high degree of  risk and  the  undersigned is familiar with the
risks associated with investing in such companies.

                                 Yes ___ No ___

        3.2         Provide any additional information that you believe reflects
your  overall  investment  experience  or  knowledge  (e.g.,  special  training,
additional investments).

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

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

        3.3         The  undersigned  has  purchased   securities  in a  private
placement that were sold in reliance on an exemption from registration under the
Securities Act of 1933, as amended.

                                 Yes ___ No ___

        3.4         The Investor is affiliated,  directly  or  indirectly,  with
a member broker/dealer firm of the National Association of  Securities  Dealers,
Inc. ("NASD") as an  employee,  officer,  director,  partner or  shareholder  or
as a relative or member of the same household of an employee, director,  partner
or shareholder of an NASD member broker/dealer firm.

                                 Yes ___ No ___

            If the answer is "yes,"  please  state the firm name and  address of
            each NASD  member  with whom you are  affiliated,  the nature of the
            affiliation  and,  if  applicable,  attach to this  Questionnaire  a
            signed statement by the NASD member broker-dealer firm acknowledging
            receipt of the notice  required by Article III,  Sections  28(a) and
            (b) of the NASD Rules of Fair Practice.

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

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

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

                                       19
<PAGE>

      THE  UNDERSIGNED  UNDERSTANDS  THAT THE  COMPANY  WILL BE  RELYING  ON THE
ACCURACY AND COMPLETENESS OF THE RESPONSES TO THE FOREGOING  QUESTIONS,  AND THE
UNDERSIGNED REPRESENTS AND WARRANTS TO GLOBAL SOURCES LIMITED (THE "COMPANY") AS
FOLLOWS:

     (i) the answers and responses to the above questions are true, complete and
correct and may be relied upon by the Company; and

     (ii) the  Investor  will notify the  Company  immediately  of any  material
change in any  representation  made above or any statement made herein or in any
of the other subscription  documentation that occurs prior to the closing of the
sale of the shares of the Company in the  offering  to which this  Questionnaire
relates.

     (iii) the  Investor is aware that the  offering of the Shares will  involve
"restricted securities" as defined in Rule 144 under the Securities Act of 1933,
as amended (the "Securities Act"), and that they or any interest therein may not
be sold or otherwise  transferred  except as permitted  under the Securities Act
and  applicable  state  securities  laws,  or  pursuant  to  registration  or an
exemption therefrom.

     The Investor has executed  this  Questionnaire  on the _____ day of ______,
2000.

                                --------------------------------
                                Name

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

                                --------------------------------
                                If Investment is Joint - Name of Joint Owner

                                --------------------------------
                                Signature of Joint Owner

                                       20REGISTRATION RIGHTS AGREEMENT

THIS  REGISTRATION   RIGHTS  AGREEMENT,   dated  as  of  July  12,  2000,  (this
"Agreement"),  is  made  by and  between  GLOBAL  SOURCES  LIMITED,  a  Delaware
corporation (the  "Company"),  and the person named on the signature page hereto
(the "Buyer").

WITNESETH:

WHEREAS,  upon the terms and  subject to the  conditions  of the Stock  Purchase
Agreement of even date  herewith,  between the Buyer and the Company (the "Stock
Purchase  Agreement"),  the  Company  has  agreed to issue and sell to the Buyer
shares (the "Shares") of Common Stock, $.001 par value (the "Common Stock"),  of
the Company;

WHEREAS,  to  induce  the  Buyer to  execute  and  deliver  the  Stock  Purchase
Agreement,  the Company has agreed to provide certain  registration rights under
the  Securities  Act  of  1933,  as  amended,  and  the  rules  and  regulations
thereunder,  or any similar  successor  statute  (collectively,  the "Securities
Act"), and applicable state securities laws with respect to the Shares; and

NOW,  THEREFORE,  in  consideration  of the  premises  and the mutual  covenants
contained  herein and other good and  valuable  consideration,  the  receipt and
sufficiency of which are hereby  acknowledged,  the Company and the Buyer hereby
agree as follows:

1. Definitions.

(a) As used in this  Agreement,  the  following  terms shall have the  following
meanings:

(i)   "Investor" means the Buyer.

(ii)  "Register,"  "Registered,  " and  "Registration"  refer to a  registration
effected by  preparing  and filing a  Registration  Statement or  Statements  in
compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any  successor  rule  providing  for offering  securities on a continuous
basis ("Rule 415"),  and the  declaration or ordering of  effectiveness  of such
Registration  Statement by the United States Securities and Exchange  Commission
(the "SEC").

(iii)  "Registrable  Securities" means the Shares purchased by the Buyer,  which
amount shall be 400,000 shares of Common Stock.

(iv)  "Registration  Statement"  means a  registration  statement of the Company
under the Securities Act.

                                       1
<PAGE>

(b)  Capitalized  terms used herein and not otherwise  defined herein shall have
the respective meanings set forth in the Stock Purchase Agreement.

2. Registration.

(a) Mandatory  Registration.  The Company shall prepare,  and within thirty (30)
calendar  days after the  Closing  Date (as that term is defined in Section 9 of
the  Stock  Purchase  Agreement)  file  with  the SEC a  Registration  Statement
covering the Registrable  Securities.  Such  Registration  Statement shall state
that, in accordance  with Rule 416 and Rule 457 under the Securities Act it also
covers such  indeterminate  number of  additional  shares of Common Stock as may
become issuable to prevent dilution resulting from stock splits, stock dividends
or similar event.

(b) Payments by the Company.  The Company shall pay, within thirty (30) calendar
days of  receipt  of written  notice  from the  Buyer,  a fee of 2% of the gross
purchase price of the Shares purchased by the Buyer, per each thirty day period,
on a pro rata basis, as long as the following  obligations ("Events of Default")
remain unsatisfied:

(i)     If the  Registration  Statement is not filed within thirty (30) calendar
        days  following  the Closing  Date, as that term is defined in the Stock
        Purchase Agreement.
(ii)    If the Registration Statement is not declared effective on or before the
        ninetieth (90th) calendar day after the Closing Date;
(iii)   If the Company does not file any  acceleration  request  within five (5)
        business days of receiving a "no review" from the SEC with regard to the
        Registration Statement;
(iv)    If trading is  suspended  for more than five (5) trading days due to the
        fault of the Company .
(v)     If the  Registration  Statement ceases to remain effective for more than
        ten (10) business days;
(vi)    If the Company fails to deliver free trading unlegended Shares after the
        Registration  Statement has been declared  effective and within ten (10)
        business  days of the  Company's  receipt of the  legended  Shares  from
        Buyer;
(vii)   If the  Company  fails  to make a cash  payment  within  any of the time
        periods set forth in the Stock Purchase Agreement or this Agreement,  as
        the case may be.

The Company  acknowledges that any of the above Events of Default will cause the
Buyer to suffer  damages  in an  amount  that will be  difficult  to  ascertain.
Accordingly,  the  parties  agree  that it is  appropriate  to  include  in this
Agreement a provision for liquidated damages.  The parties acknowledge and agree
that the liquidated  damages provision set forth in this section  represents the
parties' good faith effort to quantify such damages and, as such, agree that the
form  and  amount  of such  liquidated  damages  are  reasonable  and  will  not
constitute a penalty.  The payment of  liquidated  damages shall not relieve the
Company from its  obligations to deliver free trading  unlegended  Shares and/or
make a cash payment in a timely manner  pursuant to the terms of this Agreement.
Nothing  contained in this Agreement shall be deemed to establish or require the
payment  of  interest  to the  Buyer at a

                                       2
<PAGE>

rate in excess of the maximum rate permitted by governing law. In the event that
the rate of interest  required to be paid exceeds the maximum rate  permitted by
governing  law,  the rate of interest  required to be paid  thereunder  shall be
automatically  reduced to the maximum rate permitted under the governing law and
such excess shall be returned  with  reasonable  promptness  by the Buyer to the
Company.

3.  Obligations  of the Company.  In  connection  with the  registration  of the
Registrable Securities, the Company shall do each of the following.

(a)  Prepare  promptly,  and file  with the SEC as soon as  possible  after  the
Closing Date, a Registration  Statement with respect to not less than the number
of Registrable  Securities  and  thereafter  use its reasonable  best efforts to
cause the Registration  Statement  relating to Registrable  Securities to become
effective  not later than five (5) days after the Company is notified by the SEC
that  the  Registration  Statement  may  be  declared  effective  and  keep  the
Registration  Statement  effective  pursuant  to Rule 415 at all times until the
earliest  of (i) the date that is one (1) year after the  Closing  Date (ii) the
date when the  Investors  may sell all  Registrable  Securities  under  Rule 144
without volume limitations or (iii) the date the Buyer no longer owns any of the
Registrable Securities (the "Registration Period"), which Registration Statement
(including  any  amendments or supplements  thereto and  prospectuses  contained
therein)  shall not contain any untrue  statement of a material  fact or omit to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein,  in light of the circumstances in which they were made, not
misleading.

(b)  Prepare  and file with the SEC such  amendments  (including  post-effective
amendments)  and  supplements to the  Registration  Statement and the prospectus
used in connection with the  Registration  Statement as may be necessary to keep
the  Registration  effective at all times during the Registration  Period,  and,
during the Registration Period, comply with the provisions of the Securities Act
with respect to the  disposition  of all  Registrable  Securities of the Company
covered by the Registration Statement.

(c)  Furnish  to Buyer and its legal  counsel  identified  to the  Company,  (i)
promptly  after the same is prepared  and publicly  distributed,  filed with the
SEC, or received by the  Company,  one (1) copy of the  Registration  Statement,
each  preliminary  prospectus and  prospectus,  and each amendment or supplement
thereto, and (ii) such number of copies of a prospectus, including a preliminary
prospectus, and all amendments and supplements thereto and such other documents,
as Buyer may reasonably  request in order to facilitate  the  disposition of the
Registrable Securities;

(d)  Use  reasonable  efforts  to  (i)  register  and  qualify  the  Registrable
Securities covered by the Registration  Statement under such other securities or
blue sky laws of such  jurisdictions  as the  Investors  who hold a majority  in
interest of the Registrable  Securities being offered  reasonably request and in
which significant volumes of shares of Common Stock are traded, (ii) prepare and
file  in  those   jurisdictions   such  amendments   (including   post-effective
amendments) and supplements to such  registrations and  qualifications as may be
necessary  to  maintain  the  effectiveness  thereof  at all  times  during  the
Registration

                                       3
<PAGE>

Period,  (iii) take such other  actions as may be  necessary  to  maintain  such
registrations and  qualifications in effect at all times during the Registration
Period,  and (iv) take all other  actions  reasonably  necessary or advisable to
qualify the  Registrable  Securities for sale in such  jurisdictions;  provided,
however,  that the Company shall not be required in connection therewith or as a
condition  thereto to (A) qualify to do business  in any  jurisdiction  where it
would not  otherwise  be  required  to qualify but for this  Section  3(d),  (B)
subject itself to general taxation in any such jurisdiction,  (C) file a general
consent  to  service  of  process  in any such  jurisdiction,  (D)  provide  any
undertakings  that cause more than  nominal  expense or burden to the Company or
(E) make any change in its  certificate of  incorporation  or by-laws,  which in
each case the Board of Directors of the Company determines to be contrary to the
best interests of the Company and its stockholders;

(e) As promptly as practicable  after becoming aware of such event,  notify each
Investor of the happening of any event of which the Company has knowledge,  as a
result of which the prospectus included in the Registration  Statement,  as then
in effect,  includes an untrue  statement of a material fact or omits to state a
material fact required to be stated  therein or necessary to make the statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading,  and use its best  efforts  promptly  to  prepare  a  supplement  or
amendment to the Registration Statement or other appropriate filing with the SEC
to correct such untrue statement or omission,  and deliver a number of copies of
such  supplement or amendment to each  Investor as such Investor may  reasonably
request;

(f) As promptly as practicable  after becoming aware of such event,  notify each
Investor who holds Registrable  Securities being sold of the issuance by the SEC
of any stop order or other  suspension of the  effectiveness of the Registration
Statement;

(g) Upon effectiveness of registration,  and upon receipt of the legended Shares
from Buyer,  the Company  shall (i) instruct  the  transfer  agent to remove all
restrictive legends from the Registrable Securities;  (ii) instruct the transfer
agent to issue certificates in such denominations or amounts as the case may be,
as the Buyer may  reasonably  request and  registered in such names as the Buyer
may request; and (iii) remove any stop transfer order instructions.

(h) Take all other  reasonable  actions  necessary  to expedite  and  facilitate
disposition  by  the  Buyer  of  the  Registrable  Securities  pursuant  to  the
Registration Statement.

4.  Obligations  of the Investor.  In connection  with the  registration  of the
Registrable  Securities,  each Investor  signing this  Agreement  shall have the
following obligations:

(a) It shall be a  condition  precedent  to the  obligations  of the  Company to
complete  the  registration  pursuant  to this  Agreement  with  respect  to the
Registrable  Securities of Investor  that 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

                                       4
<PAGE>

first anticipated filing date of the Registration  Statement,  the Company shall
notify each  Investor of the  information  the Company  requires  from each such
Investor (the  "Requested  Information")  if such Investor elects to have any of
such Investor's 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  an  Investor  (a   "Non-Responsive
Investor"),  then  the  Company  may  file the  Registration  Statement  without
including    Registrable    Securities   of   such   Non-Responsive    Investor.
Notwithstanding  the  foregoing,  each  Investor  elects to have its  securities
included in the Registration  Statement to be filed by the Company,  pursuant to
Section 3(a) above, within five (5) days of the date hereof.

(b) Each Investor by such Investor's  acceptance of the  Registrable  Securities
agrees to cooperate  with the Company as reasonably  requested by the Company in
connection  with  the  preparation  and  filing  of the  Registration  Statement
hereunder,  unless such  Investor  has  notified  the Company in writing of such
Investor's  election to exclude all of such  Investor's  Registrable  Securities
from the Registration Statement; and

(c) Each  Investor  agrees that,  upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 3(e) or 3(f), above,
such Investor will immediately discontinue disposition of Registrable Securities
pursuant to the  Registration  Statement  covering such  Registrable  Securities
until  such  Investor's  receipt of the  copies of the  supplemented  or amended
prospectus  contemplated  by Section  3(e) or 3(f) and,  if so  directed  by the
Company,  such  Investor  shall  deliver to the  Company  (at the expense of the
Company) or destroy (and deliver to the Company a  certificate  of  destruction)
all  copies in such  Investor's  possession,  of the  prospectus  covering  such
Registrable Securities current at the time of receipt of such notice.

5. 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 Section 3 shall be borne by the Company,
however;  if  Investor  decides  to  retain  counsel,  it shall do so at its own
expense.

6.  Indemnification.  In the event any Registrable  Securities are included in a
Registration Statement under this Agreement:

(a) To the extent permitted by law, the Company will indemnify and hold harmless
each Investor who holds such Registrable  Securities,  the directors, if any, of
such Investor, the officers, if any, of such Investor,  each person, if any, who
controls any Investor  within the meaning of the  Securities Act or the Exchange
Act (each,  an  "Indemnified  Person"),  against  any losses,  claims,  damages,
liabilities or expenses (joint or several) incurred (collectively,  "Claims") to
which any of them may become subject under the Securities  Act, the Exchange Act
or  otherwise,  insofar as such  Claims  (or  actions  or  proceedings,  whether
commenced or threatened,  in respect thereof) arise out of or are based upon any
untrue  statement of a material fact  contained in the  Registration  Statement,
prospectus,  or any  post-effective  amendment  thereof or the omission to state
therein a material  fact

                                       5
<PAGE>

required to be stated therein necessary to make the statements therein, in light
of the  circumstances  in which they were made, not misleading.  Notwithstanding
anything  to  the  contrary  contained  herein,  the  indemnification  agreement
contained  in this  Section 6(a) shall not be available to the extent such Claim
is based on a failure of the  Investor to deliver or cause to be  delivered  the
prospectus made available by the Company; or apply to amounts paid in settlement
of any Claim if such  settlement  is effected  without the Company being a party
thereto.  Each Investor will  indemnify the Company and its officers,  directors
and agents  against any claims arising out of or based upon a claim which occurs
in reliance upon and in conformity with information  furnished in writing to the
Company, by or on behalf of such Investor,  expressly for use in connection with
the preparation of the Registration  Statement,  subject to such limitations and
conditions as are applicable to the  Indemnification  provided by the Company to
this Section 6. Such indemnity shall remain in full force and effect  regardless
of any investigation made by or on behalf of the Indemnified Person.

(b) Promptly after receipt by an Indemnified  Person or Indemnified  Party under
this  Section 6 of notice  of the  commencement  of any  action  (including  any
governmental  action),  such Indemnified Person or Indemnified Party shall, if a
Claim in respect thereof is to be made against any indemnifying party under this
Section  6,  deliver  to  the  indemnifying   party  a  written  notice  of  the
commencement  thereof  and the  indemnifying  party  shall  have  the  right  to
participate in, and, to the extent the  indemnifying  party so desires,  jointly
with any other indemnifying  party similarly  noticed,  to assume control of the
defense thereof with counsel mutually satisfactory to the indemnifying party and
the Indemnified  Person or the  Indemnified  Party, as the case may be provided,
however, that an Indemnified Person or Indemnified Party shall have the right to
retain its own counsel with the fees and expenses to be paid by the indemnifying
party,  if, in the reasonable  opinion of counsel  retained by the  indemnifying
party,  the  representation  by  such  counsel  of  the  Indemnified  Person  or
Indemnified  Party and the  indemnifying  party  would be  inappropriate  due to
actual or  potential  differing  interests  between such  Indemnified  Person or
Indemnified  Party and any  other  party  represented  by such  counsel  in such
proceeding.  In such event,  the Company  shall pay for only one separate  legal
counsel for the Investors; such legal counsel shall be selected by the Investors
holding a majority  in interest of the  Registrable  Securities  included in the
Registration  Statement  to which the Claim  relates.  The  failure  to  deliver
written  notice  to the  indemnifying  party  within  a  reasonable  time of the
commencement of any such action shall not relieve such indemnifying party of any
liability to the Indemnified  Person or Indemnified  Party under this Section 6,
except to the extent that the indemnifying party is prejudiced in its ability to
defend such action. The indemnification required by this Section 6 shall be made
by  periodic   payments  of  the  amount   thereof  during  the  course  of  the
investigation or defense, as such expense, loss, damage or liability is incurred
and is due and payable.

7. Reports under Exchange Act. With a view to making  available to the Investors
the  benefits  of Rule 144  promulgated  under the  Securities  Act or any other
similar rule or  regulation of the SEC that may at any time permit the Investors
to sell  securities  of the Company to the public  without  registration  ("Rule
144"), the Company agrees to:

                                       6
<PAGE>

(a) make and keep public  information  available,  as those terms are understood
and defined in Rule 144;

(b)  file  with the SEC in a timely  manner  all  reports  and  other  documents
required of the Company under the Securities Act and the Exchange Act; and

(c)  furnish  to  each  Investor  so  long as  such  Investor  owns  Registrable
Securities,  promptly upon request,  (i) a written statement by the Company that
it has complied with the reporting  requirements of Rule 144, the Securities Act
and the Exchange Act, (ii) a copy of the most recent annual or quarterly  report
of the Company and such other  reports and documents so filed by the Company and
(iii)  such  other  information  as may be  reasonably  requested  to permit the
Investors to sell such securities pursuant to Rule 144 without registration.

8.  Amendment of  Registration  Rights.  Any provision of this  Agreement may be
amended and the  observance  thereof  may be waived  (either  generally  or in a
particular  instance and either  retroactively or prospectively),  only with the
written  consent of the Company and  Investors  who hold an 80%  interest in the
Registrable  Securities  not  resold  to the  public.  Any  amendment  or waiver
effected in  accordance  with this Section 8 shall be binding upon each Investor
and the Company.

9. Miscellaneous.

(a) A person  or entity  is  deemed  to be a holder  of  Registrable  Securities
whenever such person or entity owns of record such  Registrable  Securities.  If
the Company receives conflicting instructions,  notices or elections from two or
more persons or entities with respect to the same  Registrable  Securities,  the
Company shall act upon the basis of  instructions,  notice or election  received
from the registered owner of such Registrable Securities.

(b) Notices  required or permitted to be given hereunder shall be in writing and
shall be deemed to be sufficiently given when personally  delivered (by hand, by
courier, by telephone line facsimile  transmission,  receipt confirmed, or other
means) or sent by certified mail, return receipt  requested,  properly addressed
and with proper postage  pre-paid (i) if to the Company,  at 342 Madison Avenue,
New York,  New York 10032,  fax number (212) 687-0555 with a copy to Martin Eric
Weisberg,  Esq., Parker Chapin LLP, The Chrysler Building, 405 Lexington Avenue,
New York, New York 10174,  fax number (212)  704-6157;  (ii) if to the Buyer, at
the address set forth under its name in the Stock Purchase Agreement,  and (iii)
if to any other  Investor,  at such address as such Investor shall have provided
in writing to the Company, or at such other address as each such party furnishes
by notice given in accordance  with this Section  9(b),  and shall be effective,
when  personally  delivered,  upon receipt and, when so sent by certified  mail,
four (4) calendar days after deposit with the United States Postal Service.

                                       7
<PAGE>

(c) Failure of any party to exercise any right or remedy under this Agreement or
otherwise,  or delay by a party in  exercising  such right or remedy,  shall not
operate as a waiver thereof.

(d) 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 Company is in default  under the terms of this  Agreement  or the Stock
Purchase Agreement.

(e) This Agreement  constitutes  the entire  agreement  among the parties hereto
with respect to the subject matter hereof. There are no restrictions,  promises,
warranties  or  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.

(f)  This  Agreement  shall  inure to the  benefit  of and be  binding  upon the
successors and assigns of each of the parties hereto.

(g) All pronouns and any variations thereof refer to the masculine,  feminine or
neuter, singular or plural, as the context may require.

(h) The headings in this  Agreement are for  convenience  of reference  only and
shall not affect the meaning thereof.

(i) This  Agreement may be executed in two or more  counterparts,  each of which
shall be deemed an original but all of which shall  constitute  one and the same
agreement.  This  Agreement,  once executed by a party,  may be delivered to the
other party hereto by telephone  line facsimile  transmission  of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       8
<PAGE>

IN WITNESS  WHEREOF,  the parties have caused this Agreement to be duly executed
by their  respective  officers  thereunto duly authorized as of the day and year
first above written.

GLOBAL SOURCES LIMITED

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

BUYER:

By:      /s/ Ira Terk
         ------------------------------
Name:    Ira Terk
         ------------------------------
Title:
         ------------------------------

                                       9

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