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                                                                   EXHIBIT 10.41

                              EMPLOYMENT AGREEMENT
                            (CHIEF EXECUTIVE OFFICER)

         THIS EMPLOYMENT AGREEMENT (the "Agreement") by and between Global
Preferred Holdings, Inc. ("Company"), and Edward F. McKernan ("You" or "Your",
and together with the Company, collectively referred to as the "Parties"), is
entered into and effective as of the 1st day of January, 2002 (the "Effective
Date") (1). [(1) Unless otherwise indicated, all capitalized terms used in this
Agreement are defined in the "Definitions" section attached as Exhibit A.
Exhibit A has been incorporated by reference and is included in the Definition
of "Agreement."]

         WHEREAS, the Company is engaged in the Business;

         WHEREAS, the Company desires to employ You as Chief Executive Officer,
and You desire to accept said employment by the Company;

         WHEREAS, Your position is a position of trust and responsibility with
access to Confidential Information, Trade Secrets and information concerning
employees and customers of the Company;

         WHEREAS, the Trade Secrets and Confidential Information, and the
relationship between the Company and each of its employees and customers are
valuable assets of the Company and may not be converted to Your own use;

         WHEREAS, the Company has agreed to employ You in exchange for Your
compliance with the terms of this Agreement; and

         WHEREAS, the Company and You have agreed upon the terms and conditions
of Your employment with the Company and the Parties desire to express the terms
and conditions in this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth herein, it is agreed:

         1.       Employment and Duties.

                  A.       Company shall employ You as Chief Executive Officer
in accordance with the terms and conditions set forth in this Agreement. You
accept employment on the terms set forth herein. You shall report to the Board
of Directors of the Company.

                  B.       You shall have such duties as set forth on Exhibit B
("Duties") and as may otherwise be assigned to You by the Board of Directors of
the Company from time to time.

                  C.       You agree to devote all necessary working time
required of Your position, to devote Your best efforts, skill, and energies to
promote and advance the business and/or interests of the Company, and to fully
perform Your obligations under this Agreement. During Your employment, You shall
not render services to any other entity, regardless of whether You receive
compensation, without the prior written consent of the Company. You may,
however, (i) engage in community, charitable, and educational activities, (ii)
manage Your personal investments, and (iii) with the prior written consent of

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the Company, serve on corporate boards or committees, provided that such
activities do not conflict or interfere with the performance of Your obligations
under this Agreement or conflict with the interests of the Company.

                  D.       As an officer of the Company, You owe a duty of care
and loyalty to the Company, as well as a duty to perform Your Duties in a manner
that is in the best interests of the Company.

                  E.       You agree to comply with the policies and procedures
of the Company as may be adopted and changed from time to time, including those
described in the Company's employee handbook. Material changes to policies and
procedures may be made from time to time by the Board of Directors. If this
Agreement conflicts with such policies or procedures, this Agreement will
control.

         2.       Compensation.

                  A.       Base Salary. During the term of this Agreement,
Company shall pay to You a base salary of $325,000 per year ("Base Salary"),
subject to all applicable withholdings. Your Base Salary may be adjusted
annually at the discretion of the Board of Directors, however these adjustments
may only be increases and not decreases. Your Base Salary shall be paid to You
in accordance with the Company's normal payroll practices.

                  B.       Bonus. During the term of this Agreement, You will
receive an annual bonus if Your performance and the Company's performance meets
certain criteria established from year to year by the Company's Board of
Directors (the "Bonus"). You will not receive any Bonus if, due to termination
for Cause or upon your resignation for other than Good Reason, You are not
employed on the last day of the year for which the Bonus is to be paid,
otherwise the Bonus is to be prorated based on Your satisfaction of such
criteria as of Your termination date as determined by the Board of Directors in
its discretion. The Bonus will be subject to all applicable withholdings and
will be paid within sixty (60) days after the end of the calendar year.

                  C.       Stock Options. As soon as possible after execution of
this Agreement, the Company will request that the Board of Directors grant You
an option to acquire 75,000 shares of the Company's common stock (the "Option"),
subject to successful completion of a firm commitment underwritten public
offering of common stock by the Company before December 31, 2003. The Option
shall be granted upon the effective date of such registration and the exercise
price of the Option shall be the price to the public of the common stock in such
offering. The Option will be subject to the terms and conditions of a Stock
Option Grant Certificate (the "Stock Option Certificate") to be prepared by the
Company and the Company's Stock Incentive Plan.

                  D.       Executive Benefits. You shall be entitled to
participate in all benefit plans as shall be in effect for all executive level
personnel or applicable generally to employees of the Company from time to time,
subject to the terms and conditions of such plans and programs. You shall also
be entitled to reimbursement for all business travel and other out-of-pocket
expenses reasonably incurred by You in the performance of Your services pursuant
to this Agreement. All reimbursable expenses shall be appropriately documented
in reasonable detail by You upon submission of any request for reimbursement,
and in a format and manner consistent with Company's expense reporting policy.
You shall also be entitled to such other reasonable miscellaneous benefits as
the Board of Directors may deem appropriate.

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         3.       Term. The term of this Agreement shall be for a period of
three (3) years, beginning on the Effective Date and ending on December 31, 2004
(the "Initial Term"). The Agreement shall be automatically renewed for
additional, consecutive (1) year terms (each, a "Renewal Term") upon the
termination of the Initial Term and each Renewal Term unless the Company
delivers to You written notice of its intent not to renew this Agreement sixty
(60) days prior to the expiration of the Initial Term or any Renewal Term, as
the case may be. The Initial Term and, if this Agreement is extended in
accordance with this Section, each Renewal Term, shall be referred to
collectively herein as the "Employment Period." If this Agreement is not renewed
in accordance with this Section, Your employment relationship will convert to an
at-will relationship, meaning that You may terminate Your employment with the
Company at any time and for any reason whatsoever simply by notifying the
Company, and the Company may terminate Your employment at any time with or
without cause or advance notice. If this Agreement is not renewed and Your
employment converts to an at-will relationship, the period in which You continue
to be employed with the Company shall not be included in the definition of
"Employment Period" for purposes of this Agreement.

         4.       Termination. This Agreement may be terminated upon the
occurrence of any of the following events:

                  A.       Expiration of the term of this Agreement, including
the non-renewal of this Agreement in accordance with Section 3 above;

                  B.       Your death, however prorating of Bonus (to the extent
earned by You prior to Your death) and options (to the extent vested as of the
date of Your death) would transfer to Your estate subject to the terms and
conditions of the Company's option plan and Your Stock Option Certificate;

                  C.       Your disability; "Disability" means Your inability,
due to the condition of Your physical, mental or emotional health, to regularly
and satisfactorily perform the Duties and Your responsibilities as an executive
of the Company or its subsidiaries for a continuous period in excess of three
months. If the existence of Your Disability shall be disputed by either Party,
the determination by a physician duly licensed to practice medicine that such
Disability exists shall be necessary to establish such Disability, unless You
refuse to submit to appropriate examinations at the request of the Board, in
which case the determination of the Board in good faith and after the requisite
period of Disability shall be conclusive as to whether such Disability exists;

                  D.       Mutual written agreement between You and the Company
at any time;

                  E.       For Cause, as defined below,:

                           1.       Your material breach of this Agreement,
         provided that, if such breach is curable, You shall be entitled to
         written notice and a thirty (30) day opportunity to cure such breach;

                           2.       Any act or omission by You which is, or is
         likely to be, materially injurious to the Company or the business
         reputation of the Company;

                           3.       Your dishonesty, fraud, malfeasance, gross
         negligence or misconduct in the performance of the Duties or otherwise
         having an adverse affect on the Company;

                           4.       Your continued failure to satisfactorily
         perform the Duties under this Agreement, to follow the direction
         (consistent with the Duties) of the Board of Directors or any

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         other individual to whom You report, or to follow the policies,
         procedures and rules of the Company, provided that, if such failure is
         curable, You shall be entitled to written notice and a thirty (30) day
         opportunity to cure such breach;

                           5.       Your arrest, indictment for, or conviction
         of, or Your entry of a plea of guilty or no contest to, a felony or
         crime involving moral turpitude; or

                           6.       Your resignation for other than Good Reason.
         You agree to give the Board of Directors sixty (60) days prior written
         notice of such resignation.

                  F.       Your resignation for Good Reason which shall exist if
the Company, without Your written consent, (i) takes any action which is
inconsistent with, or results in the reduction of, Your then current title,
duties or responsibilities, (ii) reduces Your then current Base Salary, (iii)
reduces the benefits to which You are entitled on the Effective Date, unless a
similar reduction is made for other executive employees; (iv) requires You to
relocate more than seventy-five (75) miles from the location of the Company's
offices on the Effective Date, (v) enters into a Change of Control transaction
and the successor corporation, if it is not the Company, does not assume (by law
or contract) the obligations of the Company hereunder, or (vi) gives you written
notice of its intent not to renew this Agreement pursuant to Section 3 above.
Good Reason shall not include any isolated, insubstantial or inadvertent action
that (i) is not taken in bad faith, and (ii) is remedied by the Company within
thirty (30) days of receiving notice by You of such action. Good Reason shall
only exist if You give written notice to the Company that Good Reason exists
within thirty (30) days following the occurrence of the action upon which such
Good Reason is based and specify therein such action and, if such action is not
cured as provided above, You deliver your written resignation to the Board of
Directors within five (5) days following the date the cure periods expire.

                  G.       Termination of employment by the Company, for any
reason not defined in sub-sections A-F above, upon (i) sixty (60) days written
notice to You, if You are terminated during the first twenty (20) months of the
Initial Term, or (ii) one hundred eighty (180) days written notice to You, if
You are terminated thereafter during the Employment Period.

         5.       Post Termination Payment Obligations.

                  A.       If this Agreement terminates for any of the reasons
set forth in sub-sections 4A, 4B, 4C (except under the circumstances described
in Section 5D below), 4D or 4E of this Agreement, then You shall be entitled to
receive Your Base Salary through the termination date and any Bonus amounts you
would be entitled to under Section 2B and thereafter the Company shall have no
further obligations under this Agreement, but You shall continue to be bound by
Sections 7A, 7B and 7C, and all other post-termination obligations contained in
this Agreement.

                  B.       If, within ninety (90) days following a Change of
Control, this Agreement terminates for the reasons set forth in sub-sections 4F
or 4G of this Agreement, then the Company shall pay You a separation payment
equal to thirty-five (35) months Base Salary in effect as of the date of
termination, payable over a period of twelve (12) months in accordance with the
Company's normal payroll practices (or at the election of the Company, payable
as a lump sum payment), and any prorated Bonus payments (to the extent earned by
You prior to Your termination date). However, notwithstanding the forgoing, if
the aggregate amounts payable to You pursuant to this Section 5B, together with
any other payments made to You or on Your behalf by the Company as a result of
such Change of Control, would cause You to receive aggregate "parachute
payments" (as defined in Section 280G(b)(2)(A) of the

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Internal Revenue Code of 1986, as amended (the "Code")) exceeding three (3)
times Your "base amount" (as defined in Section 280G(b)(3) of the Code), then
the aggregate amounts payable to You pursuant to this Section 5B shall be
reduced until Your aggregate "parachute payments" do not exceed three (3) times
Your "base amount."

                  C.       If this Agreement terminates for the reasons set
forth in sub-sections 4F or 4G of this Agreement (other than under the
circumstances described in Section 5B), then the Company shall pay You a
separation payment equal to Your Base Salary in effect as of the date of
termination for the greater of (i) twelve (12) months or (ii) the remaining
number of months of the Employment Period, assuming no further Renewal Terms,
not to exceed twenty-four (24) months, payable over a period of twelve (12)
months in accordance with the Company's normal payroll practices (or at the
election of the Company, payable as a lump sum payment), and any prorated Bonus
payments (to the extent earned by You prior to Your termination date).

                  D.       If this Agreement terminates for the reason set forth
in sub-section 4C of this Agreement by reason of an injury which occurs in the
course of the performance of Your duties for the Company, then the Company shall
pay You a separation payment equal to twelve (12) months base salary in effect
as of the date of termination, less the monthly amount that you are entitled to
receive under any and all long-term and short-term disability insurance
policies, payable over a period of twelve (12) months in accordance with the
Company's normal payroll practices (or at the election of the Company, payable
as a lump sum payment).

                  E.       The Company's obligations under sub-section 5C shall
be reduced by the aggregate amount of any compensation, equity, fees or other
consideration received by You in connection with any services performed by You
for any person or entity after the date of termination, regardless that such
services were rendered by You as a partner, shareholder, consultant, employee or
in any other manner whatsoever.

                  F.       In the event that the term of this Agreement expires
or this Agreement terminates prior to expiration of the Employment Period, the
separation payments set forth in this Section 5 and the compensation received
during the notice periods shall constitute full satisfaction of the Company's
obligations under this Agreement. The Company's obligation to make the
separation payments contemplated in Sections 5A through 5D shall be conditioned
upon Your:

                           1.       Execution of a Separation and Release
         Agreement in a form prepared by the Company whereby You release the
         Company from any and all liability and claims of any kind; and

                           2.       Compliance with the restrictive covenants
         (Sections 7A, 7B and 7C) and all post-termination obligations contained
         in this Agreement.

                  The Company's obligation to make the separation payments set
forth in this Section 5 shall terminate immediately upon any breach by You of
any post-termination obligations to which You are subject.

         6.       Books and Records. You agree that all files, documents,
records, customer lists, books and other materials which come into Your use or
possession during the term of this Agreement and which are in any way related to
the Company's business shall at all times remain the property of the

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Company, and that upon request by Company or upon the termination of this
Agreement for any reason, You shall immediately surrender to Company all such
property and copies thereof.

         7.       Restrictive Covenants. You acknowledge that the restrictions
contained in this Section 7 are reasonable and necessary to protect the
legitimate business interests of the Company, and will not impair or infringe
upon Your right to work or earn a living after Your employment with the Company
ends.

                  A.       Trade Secrets and Confidential Information. You
represent and warrant that: (i) You are not subject to any agreement that would
prevent You from performing Your duties for the Company or otherwise complying
with this Agreement, and (ii) You are not subject to or in breach of any
non-disclosure agreement, including any agreement concerning trade secrets or
confidential information owned by any other party.

                  You agree that You will not: (i) use, disclose or reverse
engineer the Trade Secrets or the Confidential Information, except as authorized
by the Company; (ii) during Your employment with the Company, use or disclose
(a) any confidential information or trade secrets of any former employer or
third party, or (b) any works of authorship developed in whole or in part by You
during any former employment or for any other party, unless authorized in
writing by the former employer or third party; or (iii) upon Your resignation or
termination (a) retain Trade Secrets or Confidential Information, including any
copies existing in any form (including electronic form), which are in Your
possession or control, or (b) destroy, delete or alter the Trade Secrets or
Confidential Information without the Company's consent.

                  The obligations under this Section 7A shall: (i) with regard
to the Trade Secrets, remain in effect as long as the information constitutes a
trade secret under applicable law, and (ii) with regard to the Confidential
Information, remain in effect during the Restricted Period.

                  B.       Non-Solicitation of Customers. During the Restricted
Period, You will not solicit any Customer of the Company for the purpose of
providing any goods or services competitive with the Business. The restrictions
set forth in this Section 7B apply only to the Customers with whom You had
Contact.

                  C.       Non-Recruit of Employees. During the Restricted
Period, You will not, directly or indirectly, solicit, recruit or induce any
Employee to (a) terminate his or her employment relationship with the Company or
(b) work for any other person or entity engaged in the Business.

         8.       Work Product. Your employment duties may include inventing in
areas directly or indirectly related to the Business or to a line of business
that the Company may reasonably be interested in pursuing. All Work Product
shall constitute work made for hire and owned by the Company. If (i) any of the
Work Product may not be considered work made for hire, or (ii) ownership of all
right, title and interest to the legal rights in and to the Work Product will
not vest exclusively in the Company, then, without further consideration, You
hereby assign all presently-existing Work Product to the Company, and agree to
assign, and automatically assign, all future Work Product to the Company,
provided, however that the assignment of Work Product prepared by You in your
capacity as a certified actuary shall be limited by such restrictions and
requirements relating to the assignment of Work Product which are set forth in
the Actuarial Standards of Practice as established by the Actuarial Standards
Board from time to time.

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                  The Company will have the right to obtain and hold in its own
name copyrights, patents, design registrations, proprietary database rights,
trademarks, rights of publicity and any other protection available in the Work
Product. At the Company's request, You agree to perform, during or after Your
employment with the Company, any acts to transfer, perfect and defend the
Company's ownership of the Work Product, including, but not limited to: (i)
executing all documents (including a formal assignment to the Company) necessary
for filing an application or registration for protection of the Work Product (an
"Application"), (ii) explaining the nature of the Work Product to persons
designated by the Company, (iii) reviewing Applications and other related
papers, or (iv) providing any other assistance reasonably required for the
orderly prosecution of Applications.

                  You agree to provide the Company with a written description of
any Work Product in which You are involved (solely or jointly with others) and
the circumstances surrounding the creation of such Work Product.

         9.       Release. You consent to the Company's use of Your image,
likeness, voice or other characteristics in the Company's products or services.
You release the Company from any claims which You have or may have for right of
publicity, copyright infringement, or any other causes of action arising out of
the use, distribution, adaptation, reproduction, broadcast or exhibition of such
characteristics.

         10.      Post-Employment Disclosure. During the Restricted Period, you
will disclose that you have covenants (and the nature of those covenants) to
persons and/or entities to whom You provide goods and services. If, during the
Restricted Period, You provide services to another person or entity which
provides goods or services competitive with the goods or services provided by
the Company You shall provide the Company with such person or entity's name,
Your job title and a description of the services You will provide.

         11.      Injunctive Relief. You agree that if You breach Sections 7, 8,
9 and/or 10 of this Agreement: (i) the Company would suffer irreparable harm;
(ii) it would be difficult to determine damages, and money damages alone would
be an inadequate remedy for the injuries suffered by the Company, and (iii) if
the Company seeks injunctive relief to enforce this Agreement, You will waive
and will not (a) assert any defense that the Company has an adequate remedy at
law with respect to the breach, or (b) require that the Company submit proof of
the economic value of any Trade Secret or Confidential Information. Nothing
contained in this Agreement shall limit the Company's right to any other
remedies at law or in equity.

         12.      Severability. The provisions of this Agreement are severable.
If any provision is determined to be invalid, illegal or unenforceable, in whole
or in part, the remaining provisions and any partially enforceable provisions
shall remain in full force and effect.

         13.      Attorneys' Fees. In the event of litigation relating to this
Agreement, the prevailing party shall be entitled to recover attorneys' fees and
costs of litigation in addition to all other remedies available at law or in
equity.

         14.      Arbitration With Respect to Certain Matters. The parties agree
to submit to arbitration, in accordance with these provisions, any claim or
controversy arising from or related to the alleged breach of this Agreement,
provided that claims or disputes of the types described in Sections 7, 8, 9, 10
or 11 above shall not be subject to this Section 14. The parties further agree
that, other than with respect to claims or disputes of the types described in
Section 11 above, the arbitration process agreed upon herein shall be the
exclusive means for resolving all disputes made subject to arbitration herein,
but that

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no arbitrator shall have authority to expand the scope of these arbitration
provisions. Any arbitration hereunder shall be conducted under the Model
Employment Procedures of the American Arbitration Association (AAA) and the
parties agree that the Federal Arbitration Act shall govern the proceedings.
Either party may invoke arbitration procedures herein by written notice for
arbitration containing a statement of the matter to be arbitrated. The parties
shall then have fourteen (14) days in which they may identify a mutually
agreeable, neutral arbitrator. After the fourteen (14) day period has expired,
the parties shall prepare and submit to the AAA a joint submission, with each
party to contribute half of the appropriate administrative fee. In the event the
parties cannot agree upon a neutral arbitrator within fourteen (14) days after
written notice for arbitration is received, their joint submission to the AAA
shall request a panel of nine arbitrators who are practicing attorneys with
professional experience in the field of employment law, and the parties shall
attempt to select an arbitrator from the panel according to AAA procedures.
Unless otherwise agreed by the parties, the arbitration hearing shall take place
in Atlanta, Georgia at a place designated by the AAA. All arbitration procedures
hereunder shall be confidential. The arbitrator shall have authority to include
all or any portion of costs of such arbitration in an award. The arbitrator
shall not have the power or authority to award indirect, special, incidental,
consequential, exemplary, or punitive damages. The arbitrator may include
equitable relief. Any arbitration awarded shall be accompanied by a written
statement containing a summary of the issues in controversy, a description of
the award, and an explanation of the reasons for the award. It is understood and
agreed by the parties that their agreements herein concerning arbitration do not
otherwise alter the terms and conditions of employee's employment as provided by
this agreement.

         15.      Waiver. Any Party's failure to enforce any provision of this
Agreement shall not act as a waiver of that or any other provision. Any Party's
waiver of any breach of this Agreement shall not act as a waiver of any other
breach.

         16.      Entire Agreement. This Agreement, including Exhibits A and B
which are incorporated by reference, constitutes the entire agreement between
the Parties concerning the subject matter of this Agreement. This Agreement
supersedes any prior communications, agreements or understandings, whether oral
or written, between the Parties relating to the subject matter of this
Agreement. Other than terms of this Agreement, no other representation, promise
or agreement has been made with You to cause You to sign this Agreement.

         17.      Amendments. This Agreement may not be amended or modified
except in writing signed by both Parties.

         18.      Successors and Assigns; Survival. This Agreement shall be
assignable to, and shall inure to the benefit of, the Company's successors and
assigns, including, without limitation, successors through merger, name change,
consolidation or sale of a majority of the Company's stock or assets, and shall
be binding upon You. You shall not have the right to assign Your rights or
obligations under this Agreement. The covenants and provisions contained in
Sections 5 through 23 of this Agreement shall survive cessation of Your
employment with the Company, regardless of the reason for cessation of Your
employment and regardless of who causes the cessation.

         19.      Governing Law. The laws of the State of Georgia shall govern
this Agreement. If Georgia's conflict of law rules would apply another state's
laws, the Parties agree that Georgia law shall still govern.

         20.      No Strict Construction. If there is a dispute about the
language of this Agreement, the fact that one Party drafted the Agreement shall
not be used in its interpretation.

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         21.      Notice. Whenever any notice is required, it shall be given in
writing addressed as follows:

         To Company:            Global Preferred Holdings, Inc.
                                11315 Johns Creek Parkway
                                Duluth, Georgia 30097
                                Attn: Chairman of the Board of Directors

         With a Copy to:        Morris, Manning & Martin, LLP
                                3343 Peachtree Road, NE, Suite 1600
                                Atlanta, Georgia 30326
                                Attn: Ward S. Bondurant, Esq.

         To employee:           Edward F. McKernan
                                5430 Chelsen Wood Dr.
                                Duluth, Georgia 30097

         Notice shall be deemed given and effective three (3) days after the
deposit in the U.S. mail of a writing addressed as above and sent first class
mail, certified, return receipt requested, or when actually received. Either
Party may change the address for notice by notifying the other party of such
change in accordance with this Section.

         22.      Consent to Jurisdiction and Venue. You agree that any claim
arising out of or relating to this Agreement shall be (i) brought in the
Superior Court of Fulton County, Georgia, or (ii) brought in or removed to the
United States District Court for the Northern District of Georgia, Atlanta
Division. You consent to the personal jurisdiction of the courts identified
above. You waive (i) any objection to jurisdiction or venue, or (ii) any defense
claiming lack of jurisdiction or improper venue, in any action brought in such
courts.

         23.      AFFIRMATION. YOU ACKNOWLEDGE THAT YOU HAVE CAREFULLY READ THIS
AGREEMENT, YOU KNOW AND UNDERSTAND ITS TERMS AND CONDITIONS, AND YOU HAVE HAD
THE OPPORTUNITY TO ASK THE COMPANY ANY QUESTIONS YOU MAY HAVE HAD PRIOR TO
SIGNING THIS AGREEMENT.

                         [SIGNATURES BEGIN ON NEXT PAGE]

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                    [SIGNATURE PAGE TO EMPLOYMENT AGREEMENT]

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the day and year first above written.

                                GLOBAL PREFERRED HOLDINGS, INC.:

                                By: /s/ Edward F. McKernan
                                   --------------------------------------------
                                   Edward F. McKernan, Chief Executive Officer

                                EDWARD F. MCKERNAN

                                /s/ Edward F. McKernan
                                -----------------------------------------------
                                Edward F. McKernan

                                JOSEPH F. BARONE

                                /s/ Joseph F. Barone
                                -----------------------------------------------
                                Chairman of the Board of Directors

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                                    EXHIBIT A

                                   DEFINITIONS

A.       "Business" shall mean the business of providing reinsurance for life
         insurance and annuities.

B.       "Change of Control" is used herein as defined in the Company's Stock
         Incentive Plan.

C.       "Company" means Global Preferred Holdings, Inc., its parents,
         subsidiaries, affiliates and all related companies, as well as their
         respective officers, directors, shareholders, employees, agents and any
         other representatives.

D.       "Confidential Information" means information of the Company, to the
         extent not considered a Trade Secret under applicable law, that (i)
         relates to the Business, (ii) possesses an element of value to the
         Company, (iii) is not generally known to the Company's competitors, and
         (iv) would damage the Company if disclosed. Confidential Information
         includes, but is not limited to, (i) future business plans, (ii) the
         description, schematic or design of products or future products of the
         Company, (iii) advertising or marketing plans, (iv) information
         regarding independent contractors, employees, clients and customers of
         the Company, and (v) information concerning the Company's financial
         structure and methods and procedures of operation. Confidential
         Information shall not include any information that (i) is or becomes
         generally available to the public other than as a result of an
         unauthorized disclosure, (ii) has been independently developed and
         disclosed by others without violating this Agreement or the legal
         rights of any party, or (iii) otherwise enters the public domain
         through lawful means.

E.       "Contact" means any interaction between You and a Customer which (i)
         takes place in an effort to establish, maintain, and/or further a
         business relationship on behalf of the Company and (ii) occurs during
         the last year of Your employment with the Company (or during Your
         employment if employed less than a year).

F.       "Customer" means any person or entity to whom the Company has sold its
         products or services, or solicited to sell its products or services.

G.       "Employee" means any person who (i) is employed by the Company at the
         time Your employment with the Company ends, (ii) was employed by the
         Company during the last year of Your employment with the Company (or
         during Your employment if employed less than a year), or (iii) is
         employed by the Company during the Restricted Period.

H.       "Restricted Period" means the time period during Your employment with
         the Company, and for one year after Your employment with the Company
         ends.

I.       "Trade Secrets" means information of the Company, and its suppliers,
         clients and customers, without regard to form, including, but not
         limited to, technical or nontechnical data, formula, pattern,
         compilation, program, device, method, technique, drawing, process,
         financial data, financial plans, product plans, or lists of actual or
         potential customers or suppliers which is not commonly known by or
         available to the public and which information (i) derives economic
         value, actual or potential, from not being generally known to, and not
         being readily ascertainable by proper means by, other persons who can
         obtain economic value from its disclosure or use, and (ii) is the
         subject of efforts that are reasonable under the circumstances to
         maintain its secrecy.

                                       11
<PAGE>

J.       "Work Product" means (a) all ideas, concepts, marketing strategies,
         management techniques, product development, methods, designs, analyses,
         drawings, reports, and/or works of authorship, including but not
         limited to, discoveries, ideas, concepts, properties, formulas,
         compositions, methods, programs, procedures, systems, techniques,
         products, improvements, innovations, writings, pictures, audio, video,
         images of You, and artistic works and (b) any subject matter protected
         under patent, copyright, proprietary database, trademark, trade secret,
         rights of publicity, confidential information, or other property
         rights, including all worldwide rights therein, that is or was
         conceived, created or developed in whole or in part by You while
         employed by the Company and that either (i) is created within the scope
         of Your employment, (ii) is based on, results from, or is suggested by
         any work performed within the scope of Your employment and is directly
         or indirectly related to the Business or a line of business that the
         Company may reasonably be interested in pursuing, (iii) has been or
         will be paid for by the Company, or (iv) was created or improved in
         whole or in part by using the Company's time, resources, data,
         facilities, or equipment.

                                       12
<PAGE>

                                    EXHIBIT B

                             CHIEF EXECUTIVE OFFICER

POSITION RESPONSIBILITIES:

Develop the Company's business strategy and implement such strategy.

Lead, manage and direct business on a day-to-day basis with responsibility for
vision, process, growth, profitability and effectively implementing business
strategy.

Ensure that Company assets are utilized to the maximum.

Establish strong connection with potential partners, customers, industry
experts, trade analysts, financial analysts and investment bankers.

Perform periodic performance and compensation reviews for the management team.
Retain proper documentation for all review/counseling sessions.

Schedule quarterly Board meetings as authorized by the Board. Prepare an agenda
and circulate it to all members of Board. Arrange for minutes to be taken,
distributed and filed.

Review financial and statistical reports for presentation to the Board.

Maintain direct/indirect approval of all Company expenditures. Approve and sign
accounts payable and payroll checks within the established financial guidelines.

Prepare annual capital and operating budgets and, as needed, longer-term
financial projections. Compare actual to projected budgets to ensure adherence
or explain variance. Prepare a budget variance report for presentation at the
quarterly Board meeting.

In conjunction with legal counsel, assure appropriateness of all legal contracts
for Company.

Interface with Company's accounting, insurance, legal firms, pension advisors
and consultants as required.

Perform other duties as requested by the Board to ensure the smooth operation
and goal attainment for Company.

                                       13Exhibit 4.1

THE SECURITIES  REPRESENTED BY THIS WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS. THE
SECURITIES  HAVE BEEN ACQUIRED FOR  INVESTMENT  AND MAY NOT BE OFFERED FOR SALE,
SOLD,  TRANSFERRED  OR  ASSIGNED  IN THE  ABSENCE OF AN  EFFECTIVE  REGISTRATION
STATEMENT FOR THE SECURITIES  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED,  OR
APPLICABLE  STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
SATISFACTORY  TO THE ISSUER THAT  REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
APPLICABLE  STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.

Warrant No. WCS-001                             Date of Issuance: April 24, 2001

                          BESTNET COMMUNICATIONS CORP.

                        WARRANT TO PURCHASE COMMON STOCK

                            VOID AFTER APRIL 23, 2006

     This certifies that, for value received,  NETWORK TWENTYONE  INTERNATIONAL,
INC., a ____________ corporation or registered assigns ("Holder"),  is entitled,
subject to the terms set forth below,  to purchase  from BESTNET  COMMUNICATIONS
CORP., a Nevada  corporation  (the "Company"),  ONE HUNDRED  THOUSAND  (100,000)
shares of the Common Stock of the Company (the "Warrant Shares"), as constituted
on the date hereof (the "Warrant  Issue Date"),  upon surrender  hereof,  at the
principal office of the Company  referred to below,  with the Notice of Exercise
form attached hereto as Annex A duly executed, and simultaneous payment therefor
in lawful money of the United States or otherwise as  hereinafter  provided,  at
the Exercise  Price as set forth in Section 2 below.  The number,  character and
Exercise  Price of such  shares of Common  Stock are  subject to  adjustment  as
provided  below.  The term  "Warrant" as used herein shall include this Warrant,
which is one of a series of warrants issued for the Common Stock of the Company,
and any warrants  delivered  in  substitution  or exchange  therefor as provided
herein.

     1. TERM OF WARRANT; VESTING.

          (a) TERM.  Subject to the terms and conditions set forth herein,  this
Warrant shall be exercisable, in whole or in part, during the term commencing on
the date of this  Warrant and ending at 5:00 p.m.,  central  time,  on April 23,
2006 (the "Term"), and shall be void thereafter.

          (b) VESTING OF WARRANT  ISSUE DATE. Of the 100,000  Warrant  Shares of
Common Stock  represented by this Warrant,  50,000 shares shall immediately vest
upon the execution of that certain BestNet Telecommunication  Services Agreement
by and between Company and Holder (the "Telecommunications  Agreement"), and may
be immediately  exercised from and after such date in accordance  with the terms
hereof.

          (c)  POST-WARRANT  ISSUE DATE VESTING  SCHEDULE.  The remaining 50,000
shares of Common Stock  represented by this Warrant shall  immediately vest upon
the date Holder begins to promote the Company's  internet  telephony products in
Australia,  Germany  and  South  Africa  in  accordance  with  the  terms of the
Telecommunications   Agreement,   whereupon  this  Warrant  may  be  immediately
exercised  from and after  such  date/occurrence  in  accordance  with the terms
hereof.
<PAGE>
     2.  EXERCISE  PRICE.  The  Exercise  Price at  which  this  Warrant  may be
exercised  shall be $1.00 per share of Common  Stock,  as adjusted  from time to
time pursuant to Section 11 hereof.

     3. EXERCISE OF WARRANT.

          (a)  EXERCISE  MECHANICS.  The  purchase  rights  represented  by this
Warrant are exercisable by the Holder in whole or in part, but not for less than
Ten Thousand  (10,000)  shares at a time (or such lesser  number of shares which
may then constitute the maximum number purchasable; such number being subject to
adjustment as provided in Section 11 below),  at any time, or from time to time,
during the term hereof as described in Section 1 above, by the surrender of this
Warrant and the Notice of Exercise annexed hereto duly completed and executed on
behalf of the  Holder,  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 Holder at
the address of the Holder  appearing on the books of the Company),  upon payment
(i) in cash,  certified or bank funds or wire transfer of immediately  available
funds,  (ii) by cancellation by the Holder of indebtedness of the Company to the
Holder,  or (iii) by a combination of (i) and (ii), of the Exercise Price of the
shares to be purchased.

          (b) DATE OF  EXERCISE.  This  Warrant  shall be  deemed  to have  been
exercised  immediately  prior  to the  close  of  business  on the  date  of its
surrender for exercise as provided above, and the person entitled to receive the
shares of Common  Stock  issuable  upon such  exercise  shall be treated for all
purposes  as the holder of record of such  shares as of the close of business on
such date.  As  promptly as  practicable  on or after such date and in any event
within five (5) business days  thereafter,  the Company,  at its expense,  shall
issue and  deliver  to the  person or persons  entitled  to  receive  the same a
certificate  or  certificates  for the  number  of  shares  issuable  upon  such
exercise.  In the event that this Warrant is exercised in part, the Company,  at
its expense,  will  execute and deliver a new Warrant of like tenor  exercisable
for the remaining number of shares for which this Warrant may then be exercised.

          (c) NET ISSUE EXERCISE.  Notwithstanding  any provisions herein to the
contrary,  if the fair market value of one share of Common Stock is greater than
the Exercise Price (at the date of  calculation as set forth below),  in lieu of
exercising  this Warrant for cash,  the Holder may elect to receive shares equal
to the value (as determined below) of this Warrant (or the portion thereof being
canceled) by surrender  of this Warrant at the  principal  office of the Company
together  with the  properly  endorsed  Notice of  Exercise  and  notice of such
election in which event the Company shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

                                   X = Y (A-B)
                                       -------
                                          A

Where     X =  The  number of shares of Common  Stock to be issued to the Holder
               the  number  of  shares of  Common  Stock  purchasable  under the
               Warrant or, if only a portion of the Warrant is being  exercised,
               the portion of the Warrant being

          Y =  canceled (at the date of such calculation)

          A =  the fair market value of one share of the Company's  Common Stock
               (at the date of such calculation)

          B =  Exercise Price (as adjusted to the date of such calculation)

                                       2
<PAGE>
For purposes of the above calculation,  fair market value of one share of Common
Stock shall be  determined  by the  Company's  Board of Directors in good faith;
PROVIDED,  HOWEVER,  that where there exists a public  market for the  Company's
Common Stock at the time of such exercise, the fair market value per share shall
be the average of the  highest and lowest sale prices of the stock  quoted on an
established stock exchange or The Nasdaq National Market, if applicable,  on the
trading day  immediately  preceding the  computation  day or if the stock is not
then listed on an established stock exchange or the Nasdaq National Market,  the
average  of the  closing  bid and  asked  prices  per share for the stock in the
over-the-counter  market  or as  quoted  on The  Nasdaq  SmallCap  Market on the
trading day immediately preceding the computation day.

     4.  NO  FRACTIONAL   SHARES  OR  SCRIP.  No  fractional   shares  or  scrip
representing  shares shall be issued upon the exercise of this Warrant.  In lieu
of any  fractional  share to which the Holder would  otherwise be entitled,  the
Company shall make a cash payment equal to the Exercise Price multiplied by such
fraction.

     5. REPLACEMENT OF WARRANT. On receipt of evidence  reasonably  satisfactory
to the Company of the loss,  theft,  destruction  or mutilation of this Warrant,
the Company shall execute and deliver, in lieu of this Warrant, a new warrant of
like tenor and amount.  At the request of the Company,  the Holder shall provide
the Company with an executed Lost Warrant Affidavit substantially in the form of
Annex B attached  hereto,  each at the cost of the  Holder,  in order to provide
reasonable protection to the Company concerning the replacement of this Warrant.

     6. RIGHTS OF  STOCKHOLDERS.  Subject to Sections 9 and 11 of this  Warrant,
the Holder  shall not be entitled to vote or receive  dividends or be deemed the
holder of Common  Stock or any other  securities  of the Company that may at any
time be issuable on the  exercise  hereof for any  purpose,  nor shall  anything
contained  herein be  construed to confer upon the Holder,  as such,  any of the
rights of a stockholder  of the Company or any right to vote for the election of
directors or upon any matter  submitted to stockholders at any meeting  thereof,
or to give or  withhold  consent  to any  corporate  action  (whether  upon  any
recapitalization,  issuance of stock,  reclassification  of stock, change of par
value, or change of stock to no par value, consolidation, merger, conveyance, or
otherwise)  or to  receive  notice  of  meetings,  or to  receive  dividends  or
subscription  rights or otherwise until the Warrant shall have been exercised as
provided herein.

     7. TRANSFER OF WARRANT.

          (a)  WARRANT  REGISTER.  The  Company  will  maintain a register  (the
"Warrant Register") containing the names and addresses of the Holder or Holders.
Any Holder of this  Warrant or any portion  thereof  may change his,  her or its
address  as shown on the  Warrant  Register  by  written  notice to the  Company
requesting  such  change.  Any  notice  or  written  communication  required  or
permitted  to be given to the Holder may be  delivered  or given by mail to such
Holder as shown on the Warrant  Register as the  absolute  owner of this Warrant
for all purposes, notwithstanding any notice to the contrary. The initial Holder
of this  Warrant  hereby  consents to the use of the address set forth below his
name on the signature page hereto for purposes of the Warrant Register.

          (b) WARRANT  AGENT.  The Company may, by written notice to the Holder,
appoint an agent for the purpose of maintaining the Warrant Register referred to
in Section 7(a) above,  issuing the Warrant  Shares,  exchanging  this  Warrant,
replacing  this Warrant,  or any or all of the foregoing.  Thereafter,  any such
registration,  issuance,  exchange, or replacement, as the case may be, shall be
made at the office of such agent.

                                       3
<PAGE>
          (c) TRANSFERABILITY AND NON-NEGOTIABILITY OF WARRANT. This Warrant may
not be transferred or assigned in whole or in part without  compliance  with all
applicable  federal  and  state  securities  laws  by  the  transferor  and  the
transferee  (including  the delivery of  investment  representation  letters and
legal opinions reasonably  satisfactory to the Company, if such are requested by
the  Company).  Subject  to the  provisions  of this  Warrant  with  respect  to
compliance with the Securities Act of 1933, as amended (the  "Securities  Act"),
title to this Warrant may be transferred by endorsement (by the Holder executing
the  Assignment  Form annexed hereto as Annex C) and delivery in the same manner
as a negotiable instrument  transferable by endorsement and delivery;  PROVIDED,
HOWEVER,  that this Warrant may not be  transferred in part unless such transfer
is to a  transferee  who,  pursuant  to such  transfer,  receives  the  right to
purchase at least Ten Thousand (10,000) shares hereunder.

          (d) EXCHANGE OF WARRANT UPON A TRANSFER.  On surrender of this Warrant
for  exchange,  properly  endorsed  on the  Assignment  Form and  subject to the
provisions of this Warrant with respect to compliance  with the  Securities  Act
and with the  limitations  on  assignments  and  transfers and contained in this
Section 7, the  Company  at its  expense  shall  issue to or on the order of the
Holder a new warrant or warrants of like tenor,  in the name of the Holder or as
the Holder  (on  payment by the  Holder of any  applicable  transfer  taxes) may
direct, for the number of shares issuable upon exercise hereof.

          (e) COMPLIANCE WITH SECURITIES LAWS.

               (i)  The  Holder  of  this   Warrant,   by   acceptance   hereof,
     acknowledges  that this Warrant and the shares of Common Stock 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
     Warrant  Shares  except  under  circumstances  that  will not  result  in a
     violation of the Securities Act or any applicable  state  securities  laws.
     Upon  exercise of this  Warrant,  the Holder  shall,  if  requested  by the
     Company,  confirm in writing,  in a form satisfactory to the Company,  that
     the Warrant Shares are being  acquired  solely for the Holder's own account
     and not as a nominee for any other party,  for  investment,  and not with a
     view toward distribution or resale.

               (ii) This  Warrant  and all  Warrant  Shares  shall be stamped or
     imprinted with a legend in substantially the following form (in addition to
     any legend required by state securities laws):

               THE  SECURITIES   REPRESENTED   HEREBY  HAVE  BEEN  ACQUIRED  FOR
               INVESTMENT AND HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT
               OF 1933.  SUCH  SECURITIES  AND ANY  SECURITIES  OR SHARES ISSUED
               HEREUNDER MAY NOT BE SOLD OR  TRANSFERRED  IN THE ABSENCE OF SUCH
               REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT.

     8.  RESERVATION OF STOCK.  The Company  covenants that during the Term this
Warrant is  exercisable,  the  Company  will  reserve  from its  authorized  and
unissued Common Stock a sufficient  number of shares to provide for the issuance
of Common  Stock upon the  exercise  of this  Warrant,  PROVIDED,  HOWEVER,  the
Company  shall at all times  reserve the right to issue  treasury  shares to the
Holder upon the exercise hereof.  The Company further covenants that all Warrant
Shares,  upon exercise of the rights  represented by this Warrant and payment of
the Exercise Price, all as set forth herein,  will be free from all taxes, liens
and charges in respect of the issue thereof  (other than taxes in respect of any
transfer  occurring  contemporaneously  or otherwise  specified  herein or liens
resulting  from the Holder's  actions).  The Company agrees that its issuance of

                                       4
<PAGE>
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 shares of Common Stock upon the exercise of this Warrant.

     9. NOTICES.

          (a)  CERTIFICATE  OF CHIEF  FINANCIAL  OFFICER.  Whenever the Exercise
Price or number of shares  purchasable  hereunder shall be adjusted  pursuant to
Section 11 hereof, the Company shall,  within thirty (30) days of the occurrence
of the event which triggered such adjustment,  issue a certificate signed by its
Chief Financial Officer setting forth, in reasonable detail, the event requiring
the  adjustment,  the  amount  of the  adjustment,  the  method  by  which  such
adjustment  was  calculated,  and  the  Exercise  Price  and  number  of  shares
purchasable hereunder after giving effect to such adjustment,  and shall cause a
copy of such certificate to be mailed (by first-class mail,  postage prepaid) to
the Holder of this Warrant.  The Company shall, upon the written request, at any
time, of any such Holder, furnish or cause to be furnished to such Holder a like
certificate  setting forth:  (i) such  adjustments and  readjustments;  (ii) the
Exercise  Price at the time in  effect;  and (iii) the  number of shares and the
amount,  if any, of other  property  that at the time would be received upon the
exercise of the Warrant.

          (b) NOTICE OF CERTAIN FUNDAMENTAL TRANSACTIONS. In case:

               (i) the Company  shall take a record of the holders of its Common
     Stock  (or  other  stock  or  securities  at the time  receivable  upon the
     exercise of this Warrant) for the purpose of entitling  them to receive any
     dividend or other  distribution,  or any right to subscribe for or purchase
     any shares of stock of any class or any other securities, or

               (ii)  of  any  capital   reorganization   of  the  Company,   any
     reclassification of the capital stock of the Company,  any consolidation or
     merger of the Company with or into another  corporation,  or any conveyance
     of all  or  substantially  all of the  assets  of the  Company  to  another
     corporation, or

               (iii) of any voluntary dissolution,  liquidation or winding-up of
     the Company,

then,  and in each such case, the Company will mail or cause to be mailed to the
Holder or Holders a notice specifying, as the case may be, (A) the date on which
a record is to be taken for the purpose of such dividend, distribution or right,
and stating the amount and character of such dividend, distribution or right, or
(B) the  date on which  such  reorganization,  reclassification,  consolidation,
merger, conveyance, dissolution, liquidation or winding-up is to take place, and
the time,  if any is to be fixed,  as of which the  holders  of record of Common
Stock (or such stock or securities at the time  receivable  upon the exercise of
this  Warrant)  shall be entitled to exchange  their  shares of Common Stock (or
such other stock or securities)  for  securities or other  property  deliverable
upon such reorganization,  reclassification,  consolidation, merger, conveyance,
dissolution, liquidation or winding-up. Such notice shall be mailed at least ten
(10) days prior to the date therein specified.

          (c) DEEMED RECEIPT. All such notices, advices and communications shall
be deemed to have been  received  (i) in the case of personal  delivery,  on the
date of such delivery and (ii) in the case of mailing, on the third business day
following the date of such mailing.

     10. AMENDMENTS.

          (a) WITH THE  CONSENT OF THE HOLDER.  Any term of this  Warrant may be
amended with the written consent of the Company and the Holders of the Warrant.

                                       5
<PAGE>
          (b) NO WAIVER. No waivers of, or exceptions to, any term, condition or
provision of this Warrant, in any one or more instances,  shall be deemed to be,
or construed as, a further or continuing  waiver of any such term,  condition or
provision.

     11.  ADJUSTMENTS.  The Exercise Price and the number of shares  purchasable
hereunder are subject to adjustment from time to time as follows:

          (a) MERGER, SALE OF ASSETS, ETC. If at any time while this Warrant, or
any  portion  thereof,  is  outstanding  and  unexpired  there  shall  be  (i) a
reorganization  (other  than  a  combination,   reclassification,   exchange  or
subdivision  of  shares  otherwise  provided  for  herein),  (ii)  a  merger  or
consolidation  of the  Company  with or into  another  corporation  in which the
Company is not the surviving entity, or a reverse triangular merger in which the
Company is the surviving  entity but the shares of the  Company's  capital stock
outstanding  immediately  prior to the  merger  are  converted  by virtue of the
merger  into  other  property,  whether  in the  form of  securities,  cash,  or
otherwise,  or (iii) a sale or transfer of the Company's  properties  and assets
as, or  substantially  as, an entirety to any other  person,  then, as a part of
such reorganization,  merger, consolidation,  sale or transfer, lawful provision
shall be made so that the holder of this Warrant shall thereafter be entitled to
receive upon exercise of this Warrant,  during the period  specified  herein and
upon payment of the Exercise Price then in effect, the number of shares of stock
or other securities or property of the successor corporation resulting from such
reorganization,  merger,  consolidation,  sale or transfer  that a holder of the
shares  deliverable  upon  exercise of this Warrant  would have been entitled to
receive in such reorganization,  consolidation, merger, sale or transfer if this
Warrant  had been  exercised  immediately  before such  reorganization,  merger,
consolidation,  sale or transfer,  all subject to further adjustment as provided
in this  Section  11. The  foregoing  provisions  of this  Section  11(a)  shall
similarly apply to successive  reorganizations,  consolidations,  mergers, sales
and transfers and to the stock or securities of any other  corporation  that are
at the time  receivable  upon the  exercise of this  Warrant.  If the  per-share
consideration  payable to the Holder  hereof for shares in  connection  with any
such transaction is in a form other than cash or marketable securities, then the
value of such  consideration  shall be determined in good faith by the Company's
Board of Directors. In all events, appropriate adjustment (as determined in good
faith by the Company's  Board of Directors)  shall be made in the application of
the  provisions  of this Warrant with respect to the rights and interests of the
Holder after the  transaction,  to the end that the  provisions  of this Warrant
shall be applicable  after that event, as near as reasonably may be, in relation
to any shares or other  property  deliverable  after that event upon exercise of
this Warrant.

          (b)  RECLASSIFICATION,  ETC.  If the  Company,  at any time while this
Warrant,   or  any  portion  thereof,   remains  outstanding  and  unexpired  by
reclassification of securities or otherwise,  shall change any of the securities
as to  which  purchase  rights  under  this  Warrant  exist  into  the same or a
different number of securities of any other class or classes, this Warrant shall
thereafter  represent the right to acquire such number and kind of securities as
would  have been  issuable  as the  result of such  change  with  respect to the
securities  that  were  subject  to  the  purchase  rights  under  this  Warrant
immediately  prior to such  reclassification  or other  change and the  Exercise
Price  therefor  shall  be  appropriately   adjusted,  all  subject  to  further
adjustment as provided in this Section 11.

          (c) SPLIT, SUBDIVISION OR COMBINATION OF SHARES. If the Company at any
time while  this  Warrant,  or any  portion  thereof,  remains  outstanding  and
unexpired shall split,  subdivide or combine the securities as to which purchase
rights under this Warrant  exist,  into a different  number of securities of the
same class,  the Exercise  Price for such  securities  shall be  proportionately
decreased in the case of a split or subdivision or proportionately  increased in
the case of a combination.

                                       6
<PAGE>
          (d)  ADJUSTMENTS  FOR  DIVIDENDS  IN  STOCK  OR  OTHER  SECURITIES  OR
PROPERTY. If while this Warrant, or any portion hereof,  remains outstanding and
unexpired the holders of the securities as to which  purchase  rights under this
Warrant exist at the time shall have  received,  or, on or after the record date
fixed for the determination of eligible stockholders, shall have become entitled
to  receive,  without  payment  therefor,  other  or  additional  stock or other
securities or property (other than cash) of the Company by way of dividend, then
and in each case, this Warrant shall represent the right to acquire, in addition
to the  number  of shares  of the  security  receivable  upon  exercise  of this
Warrant,  and without  payment of any  additional  consideration  therefor,  the
amount of such other or additional  stock or other securities or property (other
than  cash) of the  Company  that  such  holder  would  hold on the date of such
exercise  had it been the  holder  of  record of the  security  receivable  upon
exercise  of this  Warrant  on the date  hereof and had  thereafter,  during the
period from the date hereof to and including the date of such exercise, retained
such shares  and/or all other  additional  stock  available  by it as  aforesaid
during such  period,  giving  effect to all  adjustments  called for during such
period by the provisions of this Section 11.

          (e) NO  IMPAIRMENT.  The Company  will not, by any  voluntary  action,
avoid or seek to avoid the  observance or  performance of any of the terms to be
observed or performed  hereunder  by the Company,  but will at all times in good
faith assist in the carrying out of all the provisions of this Section 11 and in
the taking of all such action as may be  necessary  or  appropriate  in order to
protect the rights of the Holders of this Warrant against impairment.

     12. REGISTRATION RIGHTS.

          (a)  DEFINITIONS.  As used in this Warrant,  the following terms shall
have the following meanings:

     AFFILIATE: the meaning set forth in Rule 12b-2 under the Exchange Act.

     EXCHANGE ACT: the Securities Exchange Act of 1934, as amended.

     PROSPECTUS:   the  prospectus   included  in  any  Registration   Statement
(including,  without  limitation,  a prospectus  that  includes any  information
previously omitted from a prospectus filed as part of an effective  Registration
Statement in reliance  upon Rule 430A under the  Securities  Act), as amended or
supplemented  by any  prospectus  supplement,  with  respect to the terms of the
offering  of  any  portion  of  the  Registrable   Securities  covered  by  such
Registration  Statement,  and  all  other  amendments  and  supplements  to  the
Prospectus,  including post-effective amendments, and all materials incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

     REGISTRABLE SECURITIES:  the Warrant Shares (whether or not this Warrant is
then exercised) and any other securities  issued or issuable with respect to the
Warrant Shares by way of a stock dividend or stock split or in connection with a
combination  of  shares,   recapitalization,   merger,  consolidation  or  other
reorganization  or  otherwise,  PROVIDED  THAT  any  particular  shares  of such
Registrable  Securities  shall  cease to be  Registrable  Securities  when (i) a
Registration  Statement with respect to the sale of such  securities  shall have
become  effective under the Securities Act and such  securities  shall have been
disposed of in accordance  with such  Registration  Statement,  (ii) such shares
shall have become  eligible  to be sold to the public by the Holder  pursuant to
Rule 144 under the Securities Act and such  securities  have been disposed of in
accordance with such rule, (iii) subsequent disposition of such shares shall not
require registration or qualification of them under the Securities Act or of any
similar state law then in force; (iv) the Warrants shall have not been exercised
as of the  expiration  date  specified in the  respective  Warrant,  or (v) such
shares shall have ceased to be outstanding.

                                       7
<PAGE>
     REGISTRATION:   a  registration   of  securities   (including   Registrable
Securities) under the Securities Act.

     REGISTRATION  EXPENSES:  any and all expenses incident to performance of or
compliance  with this  Warrant by the Company and its  subsidiaries,  including,
without limitation (i) all SEC, stock exchange,  Nasdaq and other  registration,
listing and filing fees (other  than fees and  expenses  incurred in  connection
with  compliance  with state  securities  or blue sky  laws);  (ii) all fees and
expenses  incurred  in  connection  with  compliance  with the rules for trading
securities  on the Nasdaq or on any stock  exchange on which the Common Stock is
traded   (including   reasonable  fees  and  disbursements  of  counsel  to  the
underwriters  in connection  with such  compliance and the preparation of a blue
sky memorandum  and legal  investment  survey),  (iii) all expenses of printing,
distributing,   mailing  and  delivering,   any  Registration   Statement,   any
Prospectus, any underwriting agreements,  transmittal letters,  securities sales
agreements,   securities  certificates  and  other  documents  relating  to  the
performance  of  or  compliance   with  this   Agreement,   (iv)  the  fees  and
disbursements  of  counsel  for  the  Company  and  of  the  independent  public
accountants of the Company, including the expenses of any "cold comfort" letters
required by or incident to such  performance  and  compliance,  (v) the fees and
expenses of any trustee,  transfer agent, registrar,  escrow agent or custodian,
(vi) the expenses  customarily  borne by the issuer  incurred in connection with
making road show presentations,  if any, to facilitate the distribution and sale
of  Registrable  Securities,  and (vii) all  internal  expenses  of the  Company
(including all salaries and expenses of officers and employees  performing legal
or accounting duties).

     RULE 144: Rule 144 (or any successor provision) under the Securities Act.

     SEC: the Securities and Exchange Commission.

     UNDERWRITTEN REGISTRATION OR UNDERWRITTEN OFFERING: a Registration in which
securities  of the Company  (including  Registrable  Securities)  are sold to an
underwriter for reoffering to the public.

          (b)  INCIDENTAL  REGISTRATION  RIGHTS.  If  the  Company  proposes  to
register any of its equity  securities  (other than  pursuant to a  Registration
Statement on Form S-4 or S-8 or any successor form) and the Registration form to
be used may be used for Registration of the Registrable Securities, it will give
prompt written notice to the Holder of its intention to effect such Registration
(the "Incidental Registration"). Within five (5) business days of receiving such
written  notice of an  Incidental  Registration,  the  Holder may make a written
request  (the  "Piggy-Back  Request")  that the Company  include in the proposed
Incidental  Registration all, or a portion, of the Registrable  Securities owned
by the  Holder  (which  Piggy-Back  Request  shall  set  forth  the  Registrable
Securities  intended to be disposed of by the Holder and the intended  method of
disposition  thereof).  The Company  will use its best efforts to include in any
Incidental  Registration  all Registrable  Securities which the Company has been
requested to register  pursuant to any timely  Piggy-Back  Request to the extent
required to permit the  disposition  (in  accordance  with the intended  methods
thereof  as  aforesaid)  of  the  Registrable  Securities  so to be  registered;
provided, however, that notwithstanding the preceding:

               (i) the Company  shall not be obligated  pursuant to this Section
     12(b) to effect a Registration of Registrable Securities requested pursuant
     to a timely  Piggy-Back  Request if the  Company  discontinues  the related
     Incidental  Registration  at any time  prior to the  effective  date of any
     Registration Statement filed in connection therewith; and

               (ii) if a Registration pursuant to this Section 12(b) involves an
     underwritten  offering, and the managing underwriter (or, in the case of an
     offering that is not underwritten,  an investment  banker) shall advise the
     Company  that,  in its  opinion,  the number of  securities  requested  and

                                       8
<PAGE>
     otherwise  proposed to be included in such Registration  exceeds the number
     which  can be  sold  in  such  offering  without  adversely  affecting  the
     marketability   of  the   offering,   the  Company  will  include  in  such
     Registration  to the extent of the number  which the  Company is so advised
     can be sold in such offering, FIRST, the securities the Company proposes to
     sell for its own account in such  Registration and SECOND,  the Registrable
     Securities of the Holder requesting to be included in such Registration and
     all other securities requested to be included in such Registration on a PRO
     RATA basis.

          (c) UNDERWRITTEN  OFFERS.  The provisions of this Section 12(c) do not
establish  additional  registration  rights  but  instead  set forth  procedures
applicable,  in addition  to those set forth in  Sections  12(b) and (d), to any
Registration which is an underwritten offering.

               (i) SELECTION OF  UNDERWRITERS.  If a Registration of Registrable
     Securities is being effected  pursuant to Section 12(b) and such securities
     are to be distributed by or through one or more  underwriters,  the Company
     shall have the sole right to select one or more  underwriters to administer
     the offering.

               (ii) PARTICIPATION IN UNDERWRITTEN REGISTRATIONS.  The Holder may
     not  participate in any  underwritten  Registrations  hereunder  unless the
     Holder  agrees to sell the  Holder's  Registrable  Securities  on the basis
     provided in any underwriting arrangements approved by the Company.

               (iii)  HOLDBACK  AGREEMENT  OF THE HOLDER.  If and  whenever  the
     Company  proposes  to  register  any of its  equity  securities  under  the
     Securities  Act for its own  account  (other than on Form S-4 or S-8 or any
     successor  form) or is  required  to use  reasonable  efforts to effect the
     Registration  of  any  Registrable  Securities  under  the  Securities  Act
     pursuant to Section 12(b),  the Holder agrees not to effect any public sale
     or  distribution,   including  any  sale  pursuant  to  Rule  144,  of  any
     Registrable  Securities,  of any other equity securities of the Company, or
     any securities  convertible into or exchangeable for any equity  securities
     of the  Company,  within  fifteen  (15) days prior to and ninety  (90) days
     (unless  advised  in  writing  by the  managing  underwriter  that a longer
     period, not to exceed one-hundred eighty (180) days, is required) after the
     effective date of the Registration Statement relating to such Registration,
     except as part of such  Registration  or with the prior written  consent of
     the Company and the managing underwriter, if any.

          (d)  REGISTRATION   PROCEDURES/OBLIGATIONS  OF  THE  COMPANY.  If  and
whenever  the  Company  is  required  pursuant  to  Section  12(b)  to  effect a
Registration  of  Registrable  Securities,  the  Company  shall,  subject to the
provisions of Section 12(b):

               (i)  prepare  and  file  with  the SEC a  Registration  Statement
     covering  such  Registrable  Securities  and  use  commercially  reasonable
     efforts to cause such Registration Statement to become effective and remain
     effective as provided herein;

               (ii) use commercially reasonable efforts to prepare and file with
     the SEC such amendments and supplements to such  Registration  Statement as
     may be necessary to keep such Registration Statement and Prospectus used in
     connection  therewith  effective  at least  until the earlier of (A) ninety
     (90) days after the effective date of such Registration  Statement,  or (B)
     the completion of the  distribution by the Holder of all of the Registrable
     Securities  covered  by such  Registration  Statement  (the  "Effectiveness
     Period");

                                       9
<PAGE>
               (iii) use commercially  reasonable efforts to register or qualify
     the Registrable Securities covered by such Registration Statement under the
     securities  or blue sky laws of such states within the United States as the
     Company  determines,  PROVIDED  that  the  Company  shall  not for any such
     purpose  be  required  to qualify  generally  to do  business  as a foreign
     corporation in any state wherein it is not so qualified,  subject itself to
     taxation  in any state  wherein  it is not so  subject,  or take any action
     which would  subject it to general  service of process in any state wherein
     it is not so subject; and

               (iv) notify the Holder of Registrable  Securities covered by such
     Registration  Statement  (A)  if,  to  its  knowledge,   such  Registration
     Statement,  at the  time  it or any  amendment  thereto  became  effective,
     contained  an untrue  statement  of a  material  fact or omitted to state a
     material  fact  required  to be stated  therein  or  necessary  to make the
     statements therein not misleading, and, as promptly as practicable, prepare
     and  file  with the SEC a  post-effective  amendment  to such  Registration
     Statement   and  use   commercially   reasonable   efforts  to  cause  such
     post-effective  amendment to become  effective such that such  Registration
     Statement,  as so  amended,  shall not  contain  an 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 not misleading, and (B)
     at any time when a Prospectus  relating thereto is required to be delivered
     under the Securities Act, if, to its knowledge,  the Prospectus included in
     such  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, as
     promptly as  practicable,  prepare and furnish to such Holder a  reasonable
     number of copies of a supplement  to or an amendment of such  Prospectus as
     may be necessary so that, as thereafter delivered to the purchasers of such
     securities,  such  Prospectus  shall not include an 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 under which they were made, not misleading.

The Holder  agrees that upon receipt of any notice from the Company  pursuant to
Section 12(d)(iv), the Holder will promptly discontinue the Holder's disposition
of Registrable  Securities pursuant to the Registration  Statement covering such
Registrable  Securities  until the Holder  shall have  received  notice from the
Company that such  Registration  Statement has been amended and/or copies of the
supplemented or amended  Prospectus  contemplated by Section 12(d)(iv) have been
furnished.  If so directed by the Company, the Holder of Registrable  Securities
will deliver to the Company all copies, other than permanent file copies, in the
Holder's  possession of the Prospectus  covering such Registrable  Securities at
the time of receipt of such notice.

          (e) HOLDER  INFORMATION.  The  Company  may  require the Holder of any
Registrable Securities as to which any Registration is being effected to furnish
to the Company such  information  regarding such Holder and the  distribution of
such  Registrable  Securities  as the Company  may from time to time  reasonably
request  and as shall be  required by law in  connection  therewith.  The Holder
agrees to  furnish  promptly  to the  Company  all  information  required  to be
disclosed in order to make the information  previously  furnished to the Company
by such Holder not materially false or misleading.

          (f)  REGISTRATION  EXPENSES.  The Company  shall pay all  Registration
Expenses  arising from or incidental to the performance of, or compliance  with,
this Agreement, PROVIDED that the Holder requesting such Registration shall bear
any  transfer  taxes  applicable  to  its  Registrable   Securities   registered
thereunder,  customary  (both as to type and amount)  commissions,  discounts or
other compensation  payable to the underwriters  (including fees and expenses of
underwriters'  counsel),  selling  brokers,  managers or other  similar  persons

                                       10
<PAGE>
engaged in the distribution of any of the Registrable  Securities,  and the fees
and expenses of the Holder's own counsel.

          (g) INDEMNIFICATION.

               (i) INDEMNIFICATION BY THE HOLDER OF REGISTRABLE SECURITIES.  The
     Company may require, as a condition to including any Registrable Securities
     in any  Registration  Statement  filed  pursuant to this Agreement that the
     Company  shall have  received an  undertaking  satisfactory  to it from the
     Holder to indemnify,  defend and hold harmless,  the Company, its directors
     and officers and each person,  if any, who controls  (within the meaning of
     Section 15 of the  Securities  Act or Section 20 of the  Exchange  Act) the
     Company  from  and  against  any  and  all  losses,   claims,  damages  and
     liabilities,  joint or several,  to which any of the  foregoing  may become
     subject,  under the Securities Act or otherwise,  based upon or arising out
     of any untrue statement or alleged untrue statement of a material fact in a
     Registration  Statement,  any preliminary  prospectus,  final Prospectus or
     summary Prospectus,  or any amendment or supplement thereto, or omission or
     alleged  omission to state  therein any material fact required to be stated
     therein or necessary to make the statements therein not misleading, if such
     statement or alleged  statement or omission or alleged omission was made in
     reliance upon and in conformity with written  information  furnished to the
     Company  by  such  Holder  expressly  for  use in the  preparation  of such
     Registration Statement,  preliminary prospectus, final Prospectus,  summary
     Prospectus,  amendment or supplement.  Such indemnity  shall remain in full
     force and effect,  regardless of any investigation  made by or on behalf of
     the Company or any such director,  officer or controlling  person and shall
     survive the transfer of such Registrable Securities by such Holder.

               (ii) INDEMNIFICATION PAYMENTS. Any indemnification required to be
     made by an indemnifying  party pursuant to this Section 12(g) shall be made
     by periodic  payments  to the  indemnified  party  during the course of the
     action or proceeding,  as and when bills are received by such  indemnifying
     party with respect to an indemnifiable  loss, claim,  damage,  liability or
     expense incurred by such indemnified party.

               (iii) OTHER REMEDIES.  If for any reason the foregoing  indemnity
     is unavailable,  or is insufficient to hold harmless an indemnified  party,
     other  than  by  reason  of  the  exceptions  provided  therein,  then  the
     indemnifying  party shall  contribute  to the amount paid or payable by the
     indemnified party as a result of such losses, claims, damages, liabilities,
     actions,  proceedings  or expenses in such  proportion as is appropriate to
     reflect the relative  benefits to and faults of the  indemnifying  party on
     the one hand and the indemnified  party on the other in connection with the
     offering of Registrable  Securities (taking into account the portion of the
     proceeds of the offering realized by each such party) and the statements or
     omissions or alleged  statements or omissions  which resulted in such loss,
     claim,  damage,  liability,  action,  proceeding or expense, as well as any
     other  relevant  equitable  considerations.   The  relative  fault  of  the
     indemnifying  party and of the  indemnified  party shall be  determined  by
     reference  to,  among  other  things,  whether  the untrue  statement  of a
     material  fact  or the  omission  to  state  a  material  fact  relates  to
     information  supplied by the indemnifying party or by the indemnified party
     and the parties'  relative  intent,  knowledge,  access to information  and
     opportunity to correct or prevent such  statements or omissions.  No person
     guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
     of the Securities  Act) shall be entitled to  contribution  from any person
     who was not guilty of such fraudulent misrepresentation.  No party shall be
     liable for contribution  under this Section 12(g)(iii) except to the extent
     and under  such  circumstances  as such  party  would  have been  liable to
     indemnify under this Section 12(g) if such indemnification were enforceable
     under applicable law.

                                       11
<PAGE>
     13. MISCELLANEOUS.

          (a) NOTICES.  All notices and other communications from the Company to
the Holder shall be mailed by first class registered or certified mail,  postage
prepaid (unless  specified  otherwise  herein),  at the address contained in the
Warrant Register.

          (b)  GOVERNING  LAW.  This Warrant  shall be construed and enforced in
accordance with and governed by the internal laws of the State of Nevada,  other
than the conflicts of laws thereof.

          (c)  HEADINGS.  The  headings  in this  Warrant  are for  purposes  of
reference only, and shall not limit or otherwise affect any of the terms hereof.

          (d) SEVERABILITY AND CONFLICTS.  The invalidity or unenforceability of
any provision  hereof shall in no way affect the validity or  enforceability  of
any other  provision.  To the  extent  any terms of this  Warrant  or the rights
granted  hereby  conflict  with  any  provision(s)  of  the   Telecommunications
Agreement, the terms of this Warrant shall control.

          (e) DISPUTE  RESOLUTION.  Any  dispute or claim  arising out of, or in
connection with, this Warrant shall be finally settled by binding arbitration in
Washoe County,  Nevada,  United States of America,  in accordance  with the then
current rules and procedures of the American Arbitration  Association by one (1)
arbitrator appointed pursuant to such rules and procedures. The arbitrator shall
apply  the law of the  State  of  Nevada,  United  States  of  America,  without
reference to rules of conflicts of laws,  to the merits of any dispute or claim.
Judgment  on the award  rendered by the  arbitrator  may be entered in any court
having  jurisdiction  thereof.  Notwithstanding the above, either party may seek
injunctive  relief  or  interim  relief  as  necessary  without  breach  of this
provision of this Warrant.  All actions or  proceedings  relating to the Warrant
shall be maintained in a court located in Washoe County,  Nevada,  United States
of America, and the parties hereto consent to the jurisdiction of said court and
waive any objection to such venue.

     14.  REPRESENTATIONS  OF  HOLDER.  The  holder  of  this  Warrant,  by  the
acceptance hereof,  represents that it is acquiring this Warrant and the Warrant
Shares for its own account for investment  only and not with a view towards,  or
for resale in connection  with, the public sale or  distribution of this Warrant
or the Warrant Shares, except pursuant to sales registered or exempted under the
Securities Act; provided,  however,  that by making the representations  herein,
the holder does not agree to hold this Warrant or any of the Warrant  Shares for
any minimum or other  specific  term and  reserves  the right to dispose of this
Warrant and the Warrant  Shares at any time in accordance  with or pursuant to a
registration  statement or an exemption  under the Securities Act. The holder of
this Warrant further  represents,  by acceptance hereof,  that, as of this date,
such  holder  is an  "accredited  investor"  as  such  term is  defined  in Rule
501(a)(1) of Regulation D promulgated by the Securities and Exchange  Commission
under the Securities Act (an "Accredited Investor").

                            [Signature Page Follows]

                                       12
<PAGE>
     IN WITNESS WHEREOF, BestNet Communications Corp. has caused this Warrant to
be executed by its officer thereunto duly authorized.

Dated: ____________, 2001

NETWORK 21 INTERNATIONAL, INC.              BESTNET COMMUNICATIONS CORP.
By:_____________________________            By:_____________________________
Name:___________________________            Name:___________________________
Title:__________________________            Title:__________________________

Address: Suite 100                          Address: 5210 East Williams Circle
         4550 River Green Parkway                    Suite 200
         Duluth, Georgia  30096                      Tucson, Arizona  85711
         (770) 622.2121 - Telephone                  (520) 750-9093 - Telephone
         (770) 622.1833 - Facsimile                  (520) 750-9194 - Facsimile

Annexes
------------------------------------

Annex A  -        Notice of Exercise
Annex B  -        Assignment Form
Annex C  -        Affidavit of Loss

                                       13
<PAGE>
                                     ANNEX A

                               NOTICE OF EXERCISE

To: BESTNET COMMUNICATIONS CORP.

     (1) The undersigned  hereby elects to purchase  _________  shares of Common
Stock of BESTNET  COMMUNICATIONS  CORP.,  pursuant to the terms of the  attached
Warrant,  and tenders  herewith payment of the purchase price for such shares in
full as follows:

                      ___________________________________
                      ___________________________________
                      ___________________________________

     (2) In  exercising  this  Warrant,  the  undersigned  hereby  confirms  and
acknowledges  that the  shares of  Common  Stock to be  issued  upon  conversion
thereof are being acquired  solely for the account of the undersigned and not as
a nominee for any other party, and for investment, and that the undersigned will
not offer, sell or otherwise dispose of any such shares of Common Stock,  except
under circumstances that will not result in a violation of the Securities Act of
1933, as amended, or any state securities laws.

     (3) 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)

                                ___________________________________
                                (Name)

     (4) Please issue a new Warrant for the unexercised  portion of the attached
Warrant in the name of the  undersigned  or in such  other name as is  specified
below:

                                ___________________________________
                                (Name)

____________________            ___________________________________
(Date)                          (Signature)
<PAGE>
                                     ANNEX C

                                 ASSIGNMENT FORM

     FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby
sells,  assigns and transfers unto the Assignee named below all of the rights of
the undersigned  under the within Warrant,  with respect to the number of shares
of Common Stock set forth below:

Name of Assignee                      Address                      No. of Shares
----------------                      -------                      -------------

and does hereby irrevocably constitute and appoint Attorney ____________________
to make such transfer on the books of BestNet  Communications Corp.,  maintained
for the purpose, with full power of substitution in the premises.

     The undersigned  also represents that, by assignment  hereof,  the Assignee
acknowledges  that  this  Warrant  and the  shares  of stock to be  issued  upon
exercise hereof are being acquired for investment and that the Assignee will not
offer,  sell or  otherwise  dispose of this Warrant or any shares of stock to be
issued upon exercise hereof except under  circumstances which will not result in
a violation of the Securities Act of 1933, as amended,  or any state  securities
laws. Further, the Assignee has acknowledged that upon exercise of this Warrant,
the Assignee shall, if requested by the Company,  confirm in writing,  in a form
satisfactory  to the Company,  that the shares of stock so  purchased  are being
acquired for investment and not with a view toward distribution or resale.

Dated:______________________________

                                         _______________________________________
                                         Signature of Holder
<PAGE>
                                     ANNEX B

                            FORM OF AFFIDAVIT OF LOSS

STATE OF                   )
                           ) ss:
COUNTY OF                  )

     The undersigned  (hereinafter  "Deponent"),  being duly sworn,  deposes and
says that:

1.   Deponent is an adult whose mailing address is:

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

     2.  Deponent is the  recipient  of a Warrant (the  "Warrant")  from BestNet
Communications Corp. (the "Company"), dated  ___________________________________
for the purchase of ___________________________________  shares of Common Stock,
par  value  $.001  per  share,   of  the  Company,   at  an  exercise  price  of
$_________________________ per share.

     3. The Warrant has been lost,  stolen,  destroyed or  misplaced,  under the
following circumstances:

     4. The Warrant was not endorsed.

     5. Deponent has made a diligent search for the Warrant, and has been unable
to find or recover same, and Deponent was the unconditional owner of the Warrant
at the time of loss,  and is  entitled  to the  full  and  exclusive  possession
thereof;  that neither the Warrant nor the rights of Deponent  therein  have, in
whole or in part, been assigned, transferred, hypothecated, pledged or otherwise
disposed of, in any manner whatsoever,  and that no person,  firm or corporation
other than the Deponent has any right,  title, claim, equity or interest in, to,
or respecting the Warrant.

     6. Deponent makes this Affidavit for the purpose of requesting and inducing
the  Company  and its  agents to issue a new  warrant  in  substitution  for the
Warrant.

     7. If the Warrant should ever come into the hands,  custody or power of the
Deponent or the Deponent's representatives, agents or assigns, the Deponent will
immediately and without consideration  surrender the Warrant to the Company, its
representatives,  agents or assigns,  its transfer agents or subscription agents
for cancellation.

                                      B-1
<PAGE>
     8. The Deponent hereby  indemnifies and holds harmless the Company from any
claim or demand for payment or  reimbursement of any party arising in connection
with the subject matter of this Affidavit.

Signed, sealed and dated:  _________________________

                                         _______________________________________
                                         Deponent

Sworn to and subscribed before me this
____ day of _____________, _________

_______________________________________
Notary Public

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