Document:

Exhibit 4.1

THIS WARRANT AND THE COMMON  SHARES  ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THIS WARRANT
AND THE COMMON  SHARES  ISSUABLE  UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED  FOR SALE,  PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE  OF AN  EFFECTIVE
REGISTRATION  STATEMENT  AS TO THIS  WARRANT  UNDER  SAID ACT OR AN  OPINION  OF
COUNSEL  REASONABLY  SATISFACTORY  TO  BESTNET  COMMUNICATIONS  CORP.  THAT SUCH
REGISTRATION IS NOT REQUIRED.

                              Right to Purchase 25,000 Shares of Common Stock of
         BestNet Communications Corp. (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. 2001-1                                          Issue Date: October __, 2001

     BESTNET COMMUNICATIONS CORP., a corporation organized under the laws of the
State of Nevada (the  "COMPANY"),  hereby  certifies  that, for value  received,
LAURUS MASTER FUND, LTD., or assigns (the "HOLDER"), is entitled, subject to the
terms set forth  below,  to purchase  from the Company  from and after the Issue
Date of this Warrant and at any time or from time to time before 5:00 p.m.,  New
York time, through five (5) years after such date (the "EXPIRATION DATE"), up to
25,000  fully  paid and  nonassessable  shares of Common  Stock (as  hereinafter
defined),  $.001 par value per share,  of the  Company,  at a purchase  price of
$____ per share (such  purchase price per share as adjusted from time to time as
herein provided is referred to herein as the "PURCHASE  PRICE").  The number and
character of such shares of Common  Stock and the Purchase  Price are subject to
adjustment as provided herein.

     As used herein the following terms,  unless the context otherwise requires,
have the following respective meanings:

     (a) The term "Company" shall include BestNet  Communications  Corp. and any
corporation   which  shall  succeed  or  assume  the   obligations   of  BestNet
Communications Corp. hereunder.

     (b) The term "Common Stock" includes (a) the Company's Common Stock,  $.001
par  value per  share,  as  authorized  on the date of the  Securities  Purchase
Agreement  referred to in Section 9 hereof,  (b) any other  capital stock of any
class or classes  (however  designated)  of the Company,  authorized on or after
such date, the holders of which shall have the right,  without  limitation as to
amount,  either to all or to a share of the  balance  of current  dividends  and
liquidating  dividends after the payment of dividends and  distributions  on any
shares entitled to preference, and the holders of which shall ordinarily, in the
absence of contingencies,  be entitled to vote for the election of a majority of
directors of the Company (even if the right so to vote has been suspended by the
happening of such a contingency)  and (c) any other securities into which or for
which  any of the  securities  described  in (a)  or  (b)  may be  converted  or
exchanged pursuant to a plan of recapitalization,  reorganization,  merger, sale
of assets or otherwise.

     (c) The term  "Other  Securities"  refers to any stock  (other  than Common
Stock) and other  securities  of the Company or any other person  (corporate  or
otherwise)  which the holder of the  Warrant at any time  shall be  entitled  to
receive,  or shall have received,  on the exercise of the Warrant, in lieu of or
in  addition  to Common  Stock,  or which at any time shall be issuable or shall
have been  issued in exchange  for or in  replacement  of Common  Stock or Other
Securities pursuant to Section 4 or otherwise.

     1.   EXERCISE OF WARRANT.

          1.1. NUMBER OF SHARES ISSUABLE UPON EXERCISE.  From and after the date
hereof  through and including the  Expiration  Date,  the holder hereof shall be
entitled to receive,  upon exercise of this Warrant in whole in accordance  with
the  terms  of  subsection  1.2 or  upon  exercise  of this  Warrant  in part in
accordance with  subsection 1.3, shares of Common Stock of the Company,  subject
to adjustment pursuant to Section 4.
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          1.2.  FULL  EXERCISE.  This  Warrant may be  exercised  in full by the
holder hereof by delivery of an original or fax copy of the form of subscription
attached as Exhibit A hereto  (the  "SUBSCRIPTION  FORM") duly  executed by such
Holder,  to the Company at its principal  office or at the office of its warrant
agent (as provided hereinafter), accompanied by payment, in cash, wire transfer,
or by certified or official bank check  payable to the order of the Company,  in
the amount  obtained  by  multiplying  the number of shares of Common  Stock for
which this Warrant is then  exercisable  by the Purchase  Price (as  hereinafter
defined) then in effect.

          1.3. PARTIAL EXERCISE.  This Warrant may be exercised in part (but not
for a  fractional  share) by  surrender of this Warrant in the manner and at the
place provided in subsection 1.2 except that the amount payable by the holder on
such partial exercise shall be the amount obtained by multiplying (a) the number
of shares of Common Stock designated by the holder in the  Subscription  Form by
(b) the  Purchase  Price  then in  effect.  On any such  partial  exercise,  the
Company,  at its expense,  will forthwith issue and deliver to or upon the order
of the  holder  hereof a new  Warrant of like  tenor,  in the name of the holder
hereof or as such holder (upon payment by such holder of any applicable transfer
taxes) may request,  the number of shares of Common Stock for which such Warrant
may still be exercised.

          1.4. FAIR MARKET  VALUE.  Fair Market Value of a share of Common Stock
as of a particular  date (the  "DETERMINATION  DATE") shall mean the Fair Market
Value of a share of the Company's Common Stock.  Fair Market Value of a share of
Common Stock as of a Determination Date shall mean:

               (a) If the Company's  Common Stock is traded on an exchange or is
quoted  on the  National  Association  of  Securities  Dealers,  Inc.  Automated
Quotation  ("NASDAQ") National Market System or the NASDAQ SmallCap Market, then
the closing or last sale price, respectively, reported for the last business day
immediately preceding the Determination Date.

               (b) If the Company's Common Stock is not traded on an exchange or
on the NASDAQ National Market System or the NASDAQ SmallCap Market but is traded
on the NASD OTC  Bulletin  Board,  then the mean of the  closing  bid and  asked
prices   reported  for  the  last   business  day   immediately   preceding  the
Determination Date.

               (c) Except as  provided  in clause (d)  below,  if the  Company's
Common Stock is not publicly traded, then as the Holder and the Company agree or
in the absence of agreement by  arbitration  in  accordance  with the rules then
standing of the American Arbitration Association,  before a single arbitrator to
be chosen from a panel of persons qualified by education and training to pass on
the matter to be decided.

               (d) If the  Determination  Date  is the  date  of a  liquidation,
dissolution or winding up, or any event deemed to be a liquidation,  dissolution
or winding up pursuant to the Company's charter,  then all amounts to be payable
per share to holders of the Common Stock pursuant to the charter in the event of
such  liquidation,  dissolution  or  winding  up,  plus all other  amounts to be
payable  per share in  respect  of the  Common  Stock in  liquidation  under the
charter,  assuming for the purposes of this clause (d) that all of the shares of
Common Stock then issuable upon exercise of all of the Warrants are  outstanding
at the Determination Date.

          1.5.  COMPANY  ACKNOWLEDGMENT.  The Company  will,  at the time of the
exercise of the Warrant,  upon the request of the holder hereof  acknowledge  in
writing its  continuing  obligation to afford to such holder any rights to which
such holder shall continue to be entitled after such exercise in accordance with
the  provisions  of this  Warrant.  If the  holder  shall  fail to make any such
request,  such failure shall not affect the continuing obligation of the Company
to afford to such holder any such rights.

          1.6.  TRUSTEE FOR WARRANT  HOLDERS.  In the event that a bank or trust
company  shall have been  appointed  as trustee for the holders of the  Warrants
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of a warrant agent (as  hereinafter  described) and shall accept,  in
its own name for the account of the Company or such  successor  person as may be
entitled  thereto,  all  amounts  otherwise  payable  to  the  Company  or  such
successor,  as the case may be, on  exercise  of this  Warrant  pursuant to this
Section 1.

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          2.1  DELIVERY OF STOCK  CERTIFICATES,  ETC. ON  EXERCISE.  The Company
agrees that the shares of Common Stock  purchased  upon exercise of this Warrant
shall be deemed to be issued to the holder  hereof as the  record  owner of such
shares as of the close of business on the date on which this Warrant  shall have
been  surrendered  and  payment  made for such shares as  aforesaid.  As soon as
practicable  after the exercise of this  Warrant in full or in part,  and in any
event  within 7 days  thereafter,  the  Company at its  expense  (including  the
payment by it of any applicable issue taxes) will cause to be issued in the name
of and delivered to the holder  hereof,  or as such holder (upon payment by such
holder  of  any  applicable  transfer  taxes)  may  direct  in  compliance  with
applicable Securities Laws, a certificate or certificates for the number of duly
and validly  issued,  fully paid and  nonassessable  shares of Common  Stock (or
Other Securities) to which such holder shall be entitled on such exercise, plus,
in lieu of any  fractional  share  to  which  such  holder  would  otherwise  be
entitled,  cash equal to such fraction  multiplied by the then Fair Market Value
of one full  share,  together  with any  other  stock  or other  securities  and
property  (including  cash,  where  applicable) to which such holder is entitled
upon such exercise pursuant to Section 1 or otherwise.

          2.2. CASHLESS EXERCISE.

               (a)  Payment may be made  either in (i) cash or by  certified  or
official bank check payable to the order of the Company equal to the  applicable
aggregate  Purchase  Price,  (ii) by delivery of  Warrants,  Common Stock and/or
Common Stock receivable upon exercise of the Warrants in accordance with Section
(b) below,  or (iii) by a combination of any of the foregoing  methods,  for the
number of Common Shares specified in such form (as such exercise number shall be
adjusted to reflect any adjustment in the total number of shares of Common Stock
issuable  to the holder  per the terms of this  Warrant)  and the  holder  shall
thereupon be entitled to receive the number of duly authorized,  validly issued,
fully-paid  and  non-assessable  shares  of Common  Stock (or Other  Securities)
determined as provided herein.

               (b) Notwithstanding any provisions herein to the contrary, if the
Fair  Market  Value of one share of Common  Stock is greater  than the  Purchase
Price (at the date of  calculation  as set forth  below),  in lieu of exercising
this  Warrant for cash,  upon  consent of the  Company,  the holder may elect to
receive shares equal to the value (as determined  below) of this Warrant (or the
portion  thereof being  cancelled) by surrender of this Warrant at the principal
office of the Company together with the properly  endorsed  Subscription Form 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

               Y =  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  exercised (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 =  Purchase Price (as adjusted to the date of such calculation)

     3.   ADJUSTMENT FOR REORGANIZATION, CONSOLIDATION, MERGER, ETC.

          3.1. REORGANIZATION,  CONSOLIDATION,  MERGER, ETC. In case at any time
or from  time to time,  the  Company  shall  (a)  effect a  reorganization,  (b)
consolidate  with or  merge  into  any  other  person,  or (c)  transfer  all or
substantially all of its properties or assets to any other person under any plan
or arrangement  contemplating the dissolution of the Company, then, in each such
case,  as a condition  to the  consummation  of such a  transaction,  proper and
adequate  provision  shall be made by the  Company  whereby  the  holder of this
Warrant,  on the exercise  hereof as provided in Section 1 at any time after the
consummation of such  reorganization,  consolidation  or merger or the effective
date of such  dissolution,  as the case may be,  shall  receive,  in lieu of the
Common  Stock (or Other  Securities)  issuable  on such  exercise  prior to such
consummation or such effective date, the stock and other securities and property
(including  cash) to which  such  holder  would  have  been  entitled  upon such
consummation or in connection with such dissolution, as the case may be, if such

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<PAGE>
holder had so exercised this Warrant,  immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

          3.2.  DISSOLUTION.  In the  event of any  dissolution  of the  Company
following the transfer of all or substantially  all of its properties or assets,
the Company, prior to such dissolution, shall at its expense deliver or cause to
be delivered the stock and other securities and property  (including cash, where
applicable)  receivable by the holders of the Warrants  after the effective date
of such dissolution pursuant to this Section 3 to a bank or trust company having
its  principal  office in New York,  NY, as trustee for the holder or holders of
the Warrants.

          3.3.  CONTINUATION OF TERMS. Upon any  reorganization,  consolidation,
merger or transfer (and any dissolution  following any transfer)  referred to in
this  Section 3, this  Warrant  shall  continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property  receivable on the exercise of this Warrant after the  consummation  of
such   reorganization,   consolidation  or  merger  or  the  effective  date  of
dissolution  following  any such  transfer,  as the case  may be,  and  shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer,  the person acquiring all or substantially all of the
properties  or assets of the  Company,  whether  or not such  person  shall have
expressly  assumed  the terms of this  Warrant as  provided in Section 4. In the
event  this  Warrant  does not  continue  in full  force  and  effect  after the
consummation of the  transaction  described in this Section 3, then only in such
event  will  the  Company's  securities  and  property  (including  cash,  where
applicable)  receivable  by the  holders of the  Warrants  be  delivered  to the
Trustee as contemplated by Section 3.2.

          3.4. SHARE ISSUANCE. Except for the Excepted Issuances as described in
Section 10 of the Purchase Agreement, if the Company at any time shall issue any
shares of Common  Stock prior to the  complete  exercise  of this  Warrant for a
consideration  less than the Purchase  Price that would be in effect at the time
of such issue,  then,  and  thereafter  successively  upon each such issue,  the
Purchase  Price shall be reduced as follows:  (i) the number of shares of Common
Stock  outstanding  immediately  prior to such issue shall be  multiplied by the
Purchase  Price in effect at the time of such  issue  and the  product  shall be
added to the aggregate consideration,  if any, received by the Company upon such
issue of additional  shares of Common Stock;  and (ii) the sum so obtained shall
be divided by the number of shares of Common Stock outstanding immediately after
such issue.  The resulting  quotient shall be the adjusted  Purchase Price.  For
purposes  of this  adjustment,  the  issuance  of any  security  of the  Company
carrying  the right to convert such  security  into shares of Common Stock or of
any  warrant,  right or option  to  purchase  Common  Stock  shall  result in an
adjustment  to the  Purchase  Price upon the  issuance of shares of Common Stock
upon exercise of such conversion or purchase rights.

     4.  EXTRAORDINARY  EVENTS  REGARDING  COMMON  STOCK.  In the event that the
Company shall (a) issue  additional  shares of the Common Stock as a dividend or
other  distribution on outstanding  Common Stock,  (b) subdivide its outstanding
shares of Common  Stock,  or (c)  combine its  outstanding  shares of the Common
Stock into a smaller  number of shares of the Common  Stock,  then, in each such
event,  the Purchase  Price  shall,  simultaneously  with the  happening of such
event,  be adjusted by multiplying  the then Purchase  Price by a fraction,  the
numerator  of which  shall be the number of shares of Common  Stock  outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common  Stock  outstanding  immediately  after such event,  and the
product so obtained shall  thereafter be the Purchase Price then in effect.  The
Purchase Price, as so adjusted,  shall be readjusted in the same manner upon the
happening of any successive  event or events described herein in this Section 4.
The  number of shares of Common  Stock  that the  holder of this  Warrant  shall
thereafter,  on the  exercise  hereof as  provided  in Section 1, be entitled to
receive shall be increased to a number  determined by multiplying  the number of
shares of Common  Stock that would  otherwise  (but for the  provisions  of this
Section 4) be issuable on such exercise by a fraction of which (a) the numerator
is the  Purchase  Price that would  otherwise  (but for the  provisions  of this
Section 4) be in effect, and (b) the denominator is the Purchase Price in effect
on the date of such exercise.

     5.  CERTIFICATE  AS TO  ADJUSTMENTS.  In  each  case of any  adjustment  or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the  Warrants,  the Company at its expense will  promptly  cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with the terms of the  Warrant  and  prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the facts upon which such  adjustment  or  readjustment  is based,  including  a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed

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<PAGE>
to have been issued or sold,  (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding,  and (c) the Purchase Price
and the number of shares of Common  Stock to be received  upon  exercise of this
Warrant,  in effect  immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant.  The Company will  forthwith
mail a copy of each  such  certificate  to the  holder  of the  Warrant  and any
Warrant agent of the Company (appointed pursuant to Section 11 hereof).

     6. RESERVATION OF STOCK,  ETC.  ISSUABLE ON EXERCISE OF WARRANT;  FINANCIAL
STATEMENTS. The Company will at all times reserve and keep available, solely for
issuance  and  delivery on the  exercise of the  Warrants,  all shares of Common
Stock (or Other  Securities)  from time to time  issuable on the exercise of the
Warrant.  This  Warrant  entitles  the holder  hereof to  receive  copies of all
financial and other information distributed or required to be distributed to the
holders of the Company's Common Stock.

     7. ASSIGNMENT;  EXCHANGE OF WARRANT.  Subject to compliance with applicable
Securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred by any registered holder hereof (a "TRANSFEROR") with respect to any
or all of the Shares.  On the surrender  for exchange of this Warrant,  with the
Transferor's  endorsement  in  the  form  of  Exhibit  B  attached  hereto  (the
"TRANSFEROR   ENDORSEMENT   FORM")  and  together   with   evidence   reasonably
satisfactory to the Company demonstrating  compliance with applicable Securities
Laws,  the  Company at its  expense but with  payment by the  Transferor  of any
applicable  transfer  taxes)  will  issue and  deliver to or on the order of the
Transferor  thereof a new Warrant or Warrants of like tenor,  in the name of the
Transferor  and/or the  transferee(s)  specified in such Transferor  Endorsement
Form  (each a  "TRANSFEREE"),  calling  in the  aggregate  on the  face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor.

     8. REPLACEMENT OF WARRANT. On receipt of evidence  reasonably  satisfactory
to the Company of the loss,  theft,  destruction  or  mutilation of this Warrant
and, in the case of any such loss,  theft or  destruction  of this  Warrant,  on
delivery of an indemnity agreement or security  reasonably  satisfactory in form
and amount to the Company or, in the case of any such  mutilation,  on surrender
and  cancellation  of this Warrant,  the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

     9. REGISTRATION RIGHTS. The Holder of this Warrant has been granted certain
registration rights by the Company. These registration rights are set forth in a
Securities  Purchase  Agreement entered into by the Company and Purchaser of the
Company's  Series C Convertible  Preferred Stock (the  "PREFERRED  STOCK") at or
prior to the issue date of this Warrant.  The terms of the  Securities  Purchase
Agreement  are  incorporated  herein  by  reference.  Upon the  occurrence  of a
Non-Registration Event as described in the Securities Purchase Agreement, in the
event the Company is unable to issue Common Stock upon  exercise of this Warrant
that has been  registered  in the  Registration  Statement  described in Section
9.1(d) of the Securities Purchase  Agreement,  within the time periods described
in the  Securities  Purchase  Agreement,  which  Registration  Statement must be
effective  throughout  the exercise  period of this  Warrant,  then upon written
demand made by the Holder,  the Company will pay to the Holder of this  Warrant,
in lieu of delivering  Common Stock, a sum equal to the closing ask price of the
Company's  Common Stock on the  Principal  Market (as defined in the  Securities
Purchase  Agreement) or such other  principal  trading  market for the Company's
Common Stock on the trading date immediately  preceding the date notice is given
by the  Holder,  less the  Purchase  Price,  for  each  share  of  Common  Stock
designated in such notice from the Holder.

     10.  MAXIMUM  EXERCISE.  The Holder shall not be entitled to exercise  this
Warrant on an exercise date, in connection  with that number of shares of Common
Stock  which would be in excess of the sum of (i) the number of shares of Common
Stock  beneficially  owned by the Holder and its affiliates on an exercise date,
and (ii) the number of shares of Common Stock issuable upon the exercise of this
Warrant with respect to which the determination of this proviso is being made on
an exercise date,  which would result in beneficial  ownership by the Holder and
its affiliates of more than 4.99% of the  outstanding  shares of Common Stock of
the Company on such date.  For the  purposes  of the proviso to the  immediately
preceding sentence,  beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
13d-3 thereunder.  Subject to the foregoing,  the Holder shall not be limited to
aggregate  exercises which would result in the issuance of more than 4.99%.  The
restriction described in this paragraph may be revoked upon 75 days prior notice
from the Holder to the Company or upon an Event of Default  under the  Preferred
Stock.  The  Holder  may  allocate  which of the  equity of the  Company  deemed
beneficially  owned by the  Subscriber  shall be  included  in the 4.99%  amount
described above and which shall be allocated to the excess above 4.99%.

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     11. WARRANT AGENT. The Company may, by written notice to the each holder of
the Warrant,  appoint an agent for the purpose of issuing Common Stock (or Other
Securities)  on the exercise of this Warrant  pursuant to Section 1,  exchanging
this  Warrant  pursuant to Section 7, and  replacing  this  Warrant  pursuant to
Section 8, or any of the foregoing,  and thereafter any such issuance,  exchange
or replacement, as the case may be, shall be made at such office by such agent.

     12. TRANSFER ON THE COMPANY'S  BOOKS.  Until this Warrant is transferred on
the books of the Company,  the Company may treat the registered holder hereof as
the absolute  owner hereof for all purposes,  notwithstanding  any notice to the
contrary.

     13. NOTICES,  ETC. All notices and other communications from the Company to
the  holder  of this  Warrant  shall be  mailed  by first  class  registered  or
certified mail,  postage prepaid,  at such address as may have been furnished to
the Company in writing by such holder or, until any such holder furnishes to the
Company an  address,  then to, and at the  address  of, the last  holder of this
Warrant who has so furnished an address to the Company.

     14. VOLUNTARY ADJUSTMENT BY THE COMPANY. The company may at any time during
the term of this Warrant  reduce the then current  Exercise  Price to any amount
and for any period of time deemed  appropriate  by the Board of Directors of the
Company.

     15. MISCELLANEOUS. This Warrant and any term hereof may be changed, waived,
discharged  or terminated  only by an instrument in writing  signed by the party
against which  enforcement of such change,  waiver,  discharge or termination is
sought.  This Warrant shall be governed by and construed in accordance  with the
laws of State of New York without regard to principles of conflicts of laws. Any
action brought concerning the transactions contemplated by this Warrant shall be
brought only in the state courts of New York or in the federal courts located in
the state of New York. The  individuals  executing this Warrant on behalf of the
Company  agree to submit to the  jurisdiction  of such courts and waive trial by
jury. The prevailing party shall be entitled to recover from the other party its
reasonable  attorney's  fees and costs.  In the event that any provision of this
Warrant is invalid or unenforceable under any applicable statute or rule of law,
then  such  provision  shall be deemed  inoperative  to the  extent  that it may
conflict  therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or  unenforceable  under
any law shall not affect the validity or  enforceability  of any other provision
of this  Warrant.  The  headings in this  Warrant are for  purposes of reference
only,  and shall not limit or  otherwise  affect  any of the terms  hereof.  The
invalidity or  unenforceability  of any provision  hereof shall in no way affect
the validity or enforceability of any other provision.  The Company acknowledges
that  legal  counsel  participated  in the  preparation  of  this  Warrant  and,
therefore,  stipulates that the rule of construction  that ambiguities are to be
resolved  against the drafting party shall not be applied in the  interpretation
of this Warrant to favor any party against the other party.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF,  the Company has executed this Warrant under seal as of
the date first written above.

                               BESTNET COMMUNICATIONS CORP.

                               By:_________________________

Witness:

_________________________

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                                                                       EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To be signed only on exercise of Warrant)

TO: BestNet Communications Corp.

The  undersigned,  pursuant to the provisions set forth in the attached  Warrant
(No.____), hereby irrevocably elects to purchase (check applicable box):

___  ________ shares of the Common Stock covered by such Warrant; or

___  the maximum  number of shares of Common Stock  covered by such Warrant
pursuant to the cashless exercise procedure set forth in Section 2.

The  undersigned  herewith  makes  payment of the full  purchase  price for such
shares  at  the  price  per  share  provided  for  in  such  Warrant,  which  is
$___________. Such payment takes the form of (check applicable box or boxes):

___  $__________ in lawful money of the United States; and/or

___  the  cancellation  of  such  portion  of the  attached  Warrant  as is
exercisable  for a total of _______  shares of Common Stock (using a Fair Market
Value of $_______ per share for purposes of this calculation); and/or

___ the  cancellation  of such number of shares of Common Stock as is necessary,
in accordance  with the formula set forth in Section 2, to exercise this Warrant
with  respect  to the  maximum  number of shares  of Common  Stock  purchaseable
pursuant to the cashless exercise procedure set forth in Section 2.

The undersigned  requests that the certificates for such shares be issued in the
name   of,   and   delivered   to   ____________________    whose   address   is
______________________________________   ____________________________________.

The  undersigned  represents  and  warrants  that all  offers  and  sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as amended  (the  "Securities  Act") or  pursuant  to an  exemption  from
registration under the Securities Act.

Dated:___________________                _______________________________________
                                         (Signature must conform to name of
                                          holder as specified on the face of the
                                          Warrant)

                                         _______________________________________
                                                        (Address)
<PAGE>
                                                                       Exhibit B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To be signed only on transfer of Warrant)

     For value received,  the undersigned hereby sells,  assigns,  and transfers
unto the  person(s)  named  below  under  the  heading  "Transferees"  the right
represented  by the within  Warrant to  purchase  the  percentage  and number of
shares of Common  Stock of  BestNet  Communications  Corp.  to which the  within
Warrant  relates  specified  under the  headings  "Percentage  Transferred"  and
"Number Transferred,"  respectively,  opposite the name(s) of such person(s) and
appoints each such person Attorney to transfer its respective right on the books
of BestNet Communications Corp. with full power of substitution in the premises.

================================================================================
                                   PERCENTAGE            NUMBER
               TRANSFEREES         TRANSFERRED         TRANSFERRED
--------------------------------------------------------------------------------

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

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

================================================================================

Dated:___________, ______                _______________________________________
                                         (Signature must conform to name of
                                          holder as specified on the face of the
                                          Warrant)

Signed in the presence of:

_______________________________          _______________________________________
            (Name)                                     (address)

ACCEPTED AND AGREED:                     _______________________________________
[TRANSFEREE]                                           (address)

_______________________________
            (Name)Exhibit 4.2

              CERTIFICATE TO SET FORTH DESIGNATIONS, VOTING POWERS,
              PREFERENCES, LIMITATIONS, RESTRICTIONS, AND RELATIVE
                  RIGHTS OF SERIES C 8% CUMULATIVE CONVERTIBLE
                   PREFERRED STOCK, $.001 PAR VALUE PER SHARE

     Pursuant to Title 7,  Chapter  78,  Section  78.1955 of the Nevada  Revised
Statutes

     It is hereby certified that:

     I.  The  name of the  corporation  is  BestNet  Communications  Corp.  (the
"CORPORATION"), a Nevada corporation.

     II. The  certificate  of  incorporation  of the  Corporation,  as  amended,
authorizes the issuance of Ten Million  (10,000,000)  shares of Preferred Stock,
$.001 par value per share,  and expressly vests in the Board of Directors of the
Corporation the authority provided therein to issue all of said shares in one or
more series and by resolution or  resolutions to establish the  designation  and
number and to fix the  relative  rights  and  preferences  of each  series to be
issued.

     III. The Board of Directors of the  Corporation,  pursuant to the authority
expressly vested in it, has adopted the following  resolutions  creating a class
of Series C Preferred Stock:

     RESOLVED,  that a portion of the Ten Million (10,000,000) authorized shares
of Preferred Stock of the  Corporation  shall be designated as a separate series
possessing the rights and preferences set forth below:

     1.  DESIGNATION:  NUMBER  OF  SHARES.  The  designation  of said  series of
Preferred Stock shall be Series C 8% Cumulative Convertible Preferred Stock (the
"SERIES C PREFERRED  STOCK").  The number of shares of Series C Preferred  Stock
shall be 10,000.  Each  share of Series C  Preferred  Stock  shall have a stated
value equal to $100 (as adjusted for any stock dividends, combinations or splits
with respect to such shares) (the "STATED VALUE"), and $.001 par value.

     2.  RANKING.  The  Series C  Preferred  Stock  shall  rank (i) prior to the
Corporation's  common stock,  par value $.001 per share ("COMMON  STOCK");  (ii)
junior to the  Corporation's  Series A Convertible  Preferred  Stock,  par value
$.001  per  share  (the  "SERIES  A  PREFERRED  STOCK");  (iii)  junior  to  the
Corporation's  Series B Convertible  Preferred  Stock, par value $.001 per share
(the  "SERIES B  PREFERRED  STOCK;  (iv) prior to any class or series of capital
stock of the  Corporation  hereafter  created  (unless,  with the consent of the
holders of Series C Preferred Stock (which may be withheld in such holders' sole
and absolute discretion), such class or series of capital stock specifically, by
its terms, ranks senior to or Pari Passu with the Series C Preferred Stock); (v)
Pari  Passu  with any  class  or  series  of  capital  stock of the  Corporation
hereafter  created  (with the  consent of the  holders of the Series C Preferred
Stock (which may be withheld in such  holders'  sole and  absolute  discretion))
specifically  ranking, by its terms, on parity with the Series C Preferred Stock
("PARI  PASSU  SECURITIES");  and (vi)  junior to any class or series of capital
stock of the Corporation  hereafter  created (with the consent of the holders of
Series C  Preferred  Stock  (which may be  withheld  in such  holders'  sole and
absolute  discretion) obtained in accordance with Section 8 hereof) specifically
ranking,  by its  terms,  senior  to  the  Series  C  Preferred  Stock  ("SENIOR
SECURITIES"),  in each  case as to  distribution  of  assets  upon  liquidation,
dissolution or winding up of the Corporation, whether voluntary or involuntary.

     3. DIVIDENDS.

          (a) The  Holders of  outstanding  shares of Series C  Preferred  Stock
shall be entitled to receive preferential  dividends in cash out of any funds of
the  Corporation  legally  available  at the time for  declaration  of dividends
<PAGE>
before any dividend or other distribution will be paid or declared and set apart
for payment on any shares of any Common Stock, or other class of stock presently
authorized  or to be authorized  (the Common  Stock,  and such other stock being
hereinafter  collectively  the "JUNIOR STOCK") at the rate of 8% simple interest
per annum on the Stated Value per share payable  quarterly  commencing  with the
quarter ending December 31, 2001 when as and if declared,  at the  Corporation's
option however that dividend  payments may be made in additional  fully paid and
non  assessable  shares  of Series C  Preferred  Stock at a rate of one share of
Series C Preferred  Stock for each $100 of such  dividend not paid in cash,  and
the issuance of such  additional  shares shall  constitute  full payment of such
dividend. Dividends may be paid with Series C Preferred Stock only if the Common
Stock  deliverable  upon  conversion of such Series C Preferred  Stock will have
been included for public  resale in an effective  registration  statement  filed
with the  Securities  and Exchange  Commission  on the dates such  dividends are
payable and paid to the Holders, otherwise the dividend will be paid in cash.

          (b) The  dividends  on the  Series  C  Preferred  Stock  at the  rates
provided above shall be cumulative whether or not earned so that, if at any time
full  cumulative  dividends at the rate  aforesaid on all shares of the Series C
Preferred  Stock then  outstanding  from the date from and after which dividends
thereon  are  cumulative  to the  end  of the  quarterly  dividend  period  next
preceding  such time  shall not have  been  paid or  declared  and set apart for
payment,  or if the full  dividend  on all such  outstanding  Series C Preferred
Stock for the then current  dividend period shall not have been paid or declared
and set  apart  for  payment,  the  amount  of the  deficiency  shall be paid or
declared and set apart for payment (but without interest thereon) before any sum
shall be set apart for or  applied by the  Corporation  or a  subsidiary  of the
Corporation  to the purchase,  redemption or other  acquisition  of the Series C
Preferred  Stock or Parri  Passu  Securities)  and before any  dividend or other
distribution  shall be paid or declared  and set apart for payment on any Junior
Stock and  before  any sum shall be set aside for or  applied  to the  purchase,
redemption or other acquisition of Junior Stock.

          (c)  Dividends  on all shares of the Series C  Preferred  Stock  shall
begin to accrue and be cumulative from and after the date of issuance thereof. A
dividend  period  shall be deemed to commence  on the day  following a quarterly
dividend  payment  date  herein  specified  and to end  on the  next  succeeding
quarterly dividend payment date herein specified.

     4. LIQUIDATION RIGHTS.

          (a)  Upon  the   dissolution,   liquidation   or   winding-up  of  the
Corporation,  whether  voluntary  or  involuntary,  the  Holders of the Series C
Preferred  Stock shall be entitled to receive before any payment or distribution
shall  be  made  on the  Junior  Stock,  out of the  assets  of the  Corporation
available for distribution to stockholders, the Stated Value per share of Series
C Preferred Stock and all accrued and unpaid dividends to and including the date
of payment  thereof.  Upon the  payment in full of all amounts due to Holders of
the Series C Preferred  Stock the Holders of the Common Stock of the Corporation
and any other class of Junior Stock shall  receive all  remaining  assets of the
Corporation legally available for distribution. If the assets of the Corporation
available for  distribution to the Holders of the Series C Preferred Stock shall
be insufficient to permit payment in full of the amounts payable as aforesaid to
the Holders of Series C Preferred  Stock upon such  liquidation,  dissolution or
winding-up,  whether  voluntary  or  involuntary,  then all such  assets  of the
Corporation  shall be  distributed  to the exclusion of the Holders of shares of
Junior Stock ratably among the Holders of the Series C Preferred Stock.

          (b) Neither the  purchase nor the  redemption  by the  Corporation  of
shares of any class of stock nor the merger or  consolidation of the Corporation
with or into any other  corporation or corporations  nor the sale or transfer by
the  Corporation  of all or any  part of its  assets  shall  be  deemed  to be a
liquidation,  dissolution or winding-up of the  Corporation  for the purposes of
this paragraph 4.

     5. CONVERSION  INTO COMMON STOCK.  Shares of Series C Preferred Stock shall
have the following conversion rights and obligations:

          (a) Subject to the further  provisions of this paragraph 5 each Holder
of  shares  of  Series  C  Preferred  Stock  shall  have  the  right at any time
commencing  after the  issuance  to the Holder of Series C Preferred  Stock,  to
convert such shares into fully paid and non-assessable shares of Common Stock of
the  Corporation  (as defined in paragraph 5(i) below)  determined in accordance
with the  Conversion  Price  provided in paragraph  5(b) below (the  "CONVERSION
PRICE").  All issued or accrued but unpaid  dividends  may be  converted  at the

                                       2
<PAGE>
election of the Holder simultaneously with the conversion of principal amount of
Stated Value of Series C Preferred Stock being converted.

          (b) The number of shares of Common Stock  issuable upon  conversion of
each share of Series C Preferred Stock shall equal (i) the sum of (A) the Stated
Value per share and (B) at the Holder's election accrued and unpaid dividends on
such share,  divided by (ii) the Conversion Price. The Conversion Price shall be
(i) until 45 days  from the date  hereof,  $2.90,  and (ii) on and after 45 days
from the date hereof, the lower of (x) $2.40; or (y) eighty percent (80%) of the
average of the three lowest  closing prices for the Common Stock on the NASD OTC
Bulletin Board, NASDAQ SmallCap Market, NASDAQ National Market System,  American
Stock Exchange, or New York Stock Exchange (whichever of the foregoing is at the
time the  principal  trading  exchange  or  market  for the  Common  Stock,  the
"PRINCIPAL MARKET"), or on any securities exchange or other securities market on
which the Common  Stock is then  being  listed or  traded,  for the thirty  (30)
trading days prior to but not including the Conversion Date.

          (c) The Holder of any  certificate  for  shares of Series C  Preferred
Stock  desiring to convert any of such shares may give notice of its decision to
convert the shares into common stock by  delivering or  telecopying  an executed
and  completed  notice of  conversion to the  Corporation  or the  Corporation's
Transfer  Agent and  delivering  within  three  business  days  thereafter,  the
original   certificate  for  the  Preferred  Stock  properly   endorsed  for  or
accompanied  by duly executed  instruments  of transfer (and such other transfer
papers as said Transfer Agent may reasonably  require) to the Corporation or the
Corporation's  Transfer  Agent.  Each  date on which a notice of  conversion  is
delivered or telecopied to the Corporation or the  Corporation's  Transfer Agent
in accordance  with the provisions  hereof shall be deemed a Conversion  Date. A
form of Notice of Conversion  that may be employed by a Holder is annexed hereto
as Exhibit A. The Corporation  will transmit the  certificates  representing the
shares of common stock issuable upon  conversion of any Series C Preferred Stock
(together  with  the  Series C  Preferred  Stock  representing  the  shares  not
converted)  to the  Holder  via  express  courier,  by  electronic  transfer  or
otherwise,  within four business days after  receipt by the  Corporation  of the
original or  telecopied  notice of conversion  and the Series C Preferred  Stock
representing  the shares to be converted  ("DELIVERY  DATE").  The Holder of the
shares so surrendered  for conversion  shall be entitled to receive on or before
the Delivery Date a certificate or  certificates  which shall be expressed to be
fully paid and  non-assessable for the number of shares of Common Stock to which
such Holder shall be entitled  upon such  conversion  registered  in the name of
such   Holder.   The   Corporation   is  obligated  to  deliver  to  the  Holder
simultaneously  with the  aforedescribed  Common  Stock,  at the election of the
Holder,  additional  Common Stock  representing the conversion at the Conversion
Price, of dividends accrued on the Series C Preferred Stock being converted.  In
the case of any Series C  Preferred  Stock which is  converted  in part only the
Holder  of shares  of  Series C  Preferred  Stock  shall  upon  delivery  of the
certificate or certificates  representing  Common Stock also receive a new share
certificate  representing  the  unconverted  portion  of the  shares of Series C
Preferred Stock.  Nothing herein shall be construed to give any Holder of shares
of Series C Preferred  Stock  surrendering  the same for conversion the right to
receive any  additional  shares of Common Stock or other  property which results
from an adjustment in conversion rights under the provisions of paragraph (d) or
(e) of this  paragraph 5 until  Holders of Common  Stock are entitled to receive
the shares or other property giving rise to the adjustment.

          In the case of the  exercise  of the  conversion  rights  set forth in
paragraph 5(a) the conversion  privilege  shall be deemed to have been exercised
and the shares of Common Stock issuable upon such conversion  shall be deemed to
have been issued upon the date of receipt by the  Corporation  or Transfer Agent
of the Notice of  Conversion.  The person or entity  entitled to receive  Common
Stock issuable upon such conversion shall, on the date such conversion privilege
is deemed to have been exercised and thereafter,  be treated for all purposes as
the record  Holder of such  Common  Stock and shall on the same date cease to be
treated  for any  purpose  as the  record  Holder  of such  shares  of  Series C
Preferred Stock so converted.

          Upon the  conversion  of any  shares  of Series C  Preferred  Stock no
adjustment  or payment  shall be made with respect to such  converted  shares on
account of any  dividend  on the Common  Stock,  except  that the Holder of such
converted  shares shall be entitled to be paid any dividends  declared on shares
of Common Stock after conversion thereof.

                                       3
<PAGE>
          The  Corporation  shall  not  be  required,  in  connection  with  any
conversion  of Series C Preferred  Stock,  and payment of  dividends on Series C
Preferred  Stock to issue a fraction of a share of its Series C Preferred  Stock
and  shall  instead  deliver a stock  certificate  representing  the next  whole
number.

          The Corporation and Holder may not convert that amount of the Series C
Preferred  Stock  on  a  Conversion  Date  in  amounts   inconsistent  with  the
limitations  set forth in the  Subscription  Agreement in  connection  with that
number of shares of Common  Stock which would be in excess of the sum of (i) the
number of shares of Common Stock  beneficially  owned by the  Subscriber and its
affiliates  on such  Conversion  Date,  and (ii) the  number of shares of Common
Stock issuable upon the conversion of the Series C Preferred  Stock with respect
to which the  determination  of this  proviso is being  made on such  Conversion
Date,  which  would  result  in  beneficial  ownership  by the  Holder  and  its
affiliates of more than 4.99% of the  outstanding  shares of Common Stock of the
Corporation.  For the  purposes  of the  proviso  to the  immediately  preceding
sentence,  beneficial  ownership  shall be determined in accordance with Section
13(d) of the Securities  Exchange Act of 1934, as amended,  and Regulation 13d-3
thereunder.  The Holder may revoke the conversion  limitation  described in this
Paragraph  upon 75 days  prior  notice  to the  Corporation  or upon an Event of
Default  hereunder.  The  Holder  may  allocate  which  of  the  equity  of  the
Corporation  deemed  beneficially  owned by the Holder  shall be included in the
4.99%  amount  described  above and which shall be allocated to the excess above
4.99%.

          (d) The Conversion Price determined  pursuant to 4(b) shall be subject
to adjustment from time to time as follows:

               (i) In case the  Corporation  shall at any time (A)  declare  any
dividend  or  distribution  on its  Common  Stock  or  other  securities  of the
Corporation  other than the Series C Preferred Stock, (B) split or subdivide the
outstanding  Common  Stock,  (C) combine  the  outstanding  Common  Stock into a
smaller number of shares, or (D) issue by  reclassification  of its Common Stock
any shares or other securities of the  Corporation,  then in each such event the
Conversion Price shall be adjusted proportionately so that the Holders of Series
C Preferred  Stock shall be entitled to receive the kind and number of shares or
other securities of the Corporation  which such Holders would have owned or have
been  entitled to receive  after the  happening  of any of the events  described
above had such shares of Series C  Preferred  Stock been  converted  immediately
prior to the happening of such event (or any record date with respect  thereto).
Such  adjustment  shall be made  whenever  any of the events  listed above shall
occur. An adjustment made to the Conversion  pursuant to this paragraph  5(d)(i)
shall  become  effective  immediately  after  the  effective  date of the  event
retroactive to the record date, if any, for the event.

          (e) (i) In case of any  merger  of the  Corporation  with or into  any
other corporation (other than a merger in which the Corporation is the surviving
or  continuing  corporation  and which does not result in any  reclassification,
conversion, or change of the outstanding shares of Common Stock) then unless the
right to convert shares of Series C Preferred  Stock shall have  terminated,  as
part of such merger lawful  provision  shall be made so that Holders of Series C
Preferred Stock shall  thereafter have the right to convert each share of Series
C  Preferred  Stock  into the kind and  amount of shares of stock  and/or  other
securities or property  receivable upon such merger by a Holder of the number of
shares of Common Stock into which such shares of Series C Preferred  Stock might
have been converted  immediately  prior to such  consolidation  or merger.  Such
provision shall also provide for adjustments which shall be as nearly equivalent
as may be practicable to the  adjustments  provided for in paragraph (d) of this
paragraph 5. The foregoing  provisions of this  paragraph  5(e) shall  similarly
apply to successive mergers.

               (ii) In case of any  sale or  conveyance  to  another  person  or
entity of the property of the Corporation as an entirety, or substantially as an
entirety,  in connection with which shares or other  securities or cash or other
property  shall  be  issuable,   distributable,   payable,  or  deliverable  for
outstanding  shares of Common  Stock,  then,  unless the right to  convert  such
shares shall have terminated, lawful provision shall be made so that the Holders
of Series C Preferred  Stock  shall  thereafter  have the right to convert  each
share of the  Series C  Preferred  Stock  into the kind and  amount of shares of
stock or other  securities  or property  that shall be issuable,  distributable,
payable,  or deliverable upon such sale or conveyance with respect to each share
of Common Stock immediately prior to such conveyance.

          (f) Whenever the number of shares to be issued upon  conversion of the
Series  C  Preferred  Stock is  required  to be  adjusted  as  provided  in this
paragraph 5, the  Corporation  shall  forthwith  compute the adjusted  number of

                                       4
<PAGE>
shares to be so issued and prepare a  certificate  setting  forth such  adjusted
conversion  amount and the facts upon which such  adjustment is based,  and such
certificate  shall  forthwith be filed with the Transfer  Agent for the Series C
Preferred  Stock and the Common Stock;  and the  Corporation  shall mail to each
Holder of record of Series C Preferred Stock notice of such adjusted  conversion
price.

          (g) In case at any time the Corporation shall propose:

               (i) to pay any  dividend or  distribution  payable in shares upon
its Common Stock or make any  distribution  (other than cash  dividends)  to the
Holders of its Common Stock; or

               (ii) to offer for subscription to the Holders of its Common Stock
any additional shares of any class or any other rights; or

               (iii)  any  capital  reorganization  or  reclassification  of its
shares or the merger of the Corporation with another  corporation  (other than a
merger in which the  Corporation is the surviving or continuing  corporation and
which  does not  result in any  reclassification,  conversion,  or change of the
outstanding shares of Common Stock); or

               (iv) the voluntary dissolution,  liquidation or winding-up of the
Corporation;

then, and in any one or more of said cases, the Corporation shall cause at least
fifteen  (15)  days  prior  notice  of the  date on which  (A) the  books of the
Corporation  shall  close  or  a  record  be  taken  for  such  stock  dividend,
distribution,  or  subscription  rights,  or (B)  such  capital  reorganization,
reclassification,  merger,  dissolution,  liquidation  or winding-up  shall take
place,  as the case may be, to be mailed to the Transfer  Agent for the Series C
Preferred  Stock and for the  Common  Stock and to the  Holders of record of the
Series C Preferred Stock.

          (h) So long as any shares of Series C  Preferred  Stock  shall  remain
outstanding  and the Holders thereof shall have the right to convert the same in
accordance  with  provisions of this  paragraph 5 the  Corporation  shall at all
times  reserve from the  authorized  and  unissued  shares of its Common Stock a
sufficient number of shares to provide for such conversions.

          (i) The term Common  Stock as used in this  paragraph 5 shall mean the
$.001 par value Common Stock of the  Corporation as such stock is constituted at
the date of issuance thereof or as it may from time to time be changed or shares
of stock of any class of other securities  and/or property into which the shares
of Series C Preferred Stock shall at any time become convertible pursuant to the
provisions of this paragraph 5.

          (j) The  Corporation  shall pay the amount of any and all issue  taxes
(but not income  taxes) which may be imposed in respect of any issue or delivery
of stock upon the conversion of any shares of Series C Preferred  Stock, but all
transfer  taxes and income taxes that may be payable in respect of any change of
ownership of Series C Preferred  Stock or any rights  represented  thereby or of
stock receivable upon conversion  thereof shall be paid by the person or persons
surrendering such stock for conversion.

          (k) In the event a Holder  shall elect to convert any shares of Series
C Preferred Stock as provided herein,  the Corporation may not refuse conversion
based on any claim that such Holder or any one  associated  or  affiliated  with
such Holder has been  engaged in any  violation  of law, or for any other reason
unless,  an injunction  from a court,  on notice,  restraining  and or enjoining
conversion of all or part of said shares of Series C Preferred  Stock shall have
been  issued and the  Corporation  posts a surety  bond for the  benefit of such
Holder in the amount of 150% of the Stated Value of the Series C Preferred Stock
and dividends sought to be converted, which is subject to the injunction,  which
bond shall remain in effect until the  completion of  arbitration/litigation  of
the  dispute  and the  proceeds  of which shall be payable to such Holder in the
event it obtains judgment.

                                       5
<PAGE>
          (l) In addition to any other rights  available  to the Holder,  if the
Corporation  fails to deliver to the Holder  such  certificate  or  certificates
pursuant to paragraph  5(c) by the Delivery  Date and if after the Delivery Date
the Holder  purchases (in an open market  transaction  or  otherwise)  shares of
Common Stock to deliver in  satisfaction  of a sale by such Holder of the Common
Stock which the Holder anticipated  receiving upon such conversion (a "BUY-IN"),
then  the  Corporation  shall  pay in cash to the  Holder  (in  addition  to any
remedies  available  to or  elected by the  Holder)  the amount by which (A) the
Holder's total purchase price (including brokerage commissions,  if any) for the
shares of Common Stock so purchased  exceeds (B) the  aggregate  Stated Value of
the shares of Series C Preferred  Stock for which such conversion was not timely
honored,  together  with interest  thereon at a rate of 15% per annum,  accruing
until such amount and any accrued interest thereon is paid in full (which amount
shall be paid as liquidated damages and not as a penalty).  For example,  if the
Holder purchases shares of Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to an attempted  conversion  of $10,000 of Stated
Value of Series C Preferred Stock, the Corporation  shall be required to pay the
Holder $1,000,  plus interest.  The Holder shall provide the Corporation written
notice indicating the amounts payable to the Holder in respect of the Buy-In.

     6.  MANDATORY  CONVERSION.  The  shares  of  Series C  Preferred  Stock and
dividends may not be converted without the consent of the Holder.

     7. VOTING  RIGHTS.  The shares of Series C  Preferred  Stock shall not have
voting rights.

     8. OPTIONAL  REDEMPTION.  The Corporation will have the option of redeeming
any outstanding  shares of Preferred Stock ("OPTIONAL  REDEMPTION") by paying to
the Purchaser a sum of money as follows:

          from the date hereof through 30 days after the date hereof - 120% from
          31 days  through  90 days  after  the date  hereof - 135% from 91 days
          through 180 days after the date hereof - 150% after 180 days following
          the date hereof - 200%

of the  Stated  Value of the  Preferred  Stock and any and all  other  sums due,
accrued  or  payable  to  the  Purchaser  arising  under  this  Agreement,   the
Certificate  of   Designations   or  any  other  document   delivered   herewith
("REDEMPTION  AMOUNT")  outstanding on the day notice of redemption  ("NOTICE OF
REDEMPTION) is given to a Purchaser  ("REDEMPTION DATE"). A Notice of Redemption
may not be given in  connection  with any portion of  Preferred  Stock for which
notice of conversion  has been given by the Purchaser at any time before receipt
of a Notice of  Redemption.  A Notice of  Redemption  must be  accompanied  by a
certificate  signed by the chief executive officer or chief financial officer of
the Corporation stating that the Corporation has on deposit and segregated ready
funds equal to the Redemption Amount. The Redemption Amount must be paid in good
funds to the  Purchaser no later than the seventh  (7th)  business day after the
Redemption  Date  ("OPTIONAL   REDEMPTION  PAYMENT  DATE").  In  the  event  the
Corporation  fails  to pay the  Redemption  Amount  by the  Optional  Redemption
Payment  Date,  then  the  Redemption  Notice  will be  null  and  void  and the
Corporation  will  thereafter  have no  further  right  to  effect  an  Optional
Redemption,  and at the  Purchaser's  election,  the  Redemption  Amount will be
deemed a Mandatory  Redemption Payment and the Optional  Redemption Payment Date
will be deemed a Mandatory  Redemption  Payment Date.  Such failure will also be
deemed an Event of Default under the Preferred  Stock.  Any Notice of Redemption
must be given to all holders of Preferred  Stock issued in  connection  with the
Offering,  in  proportion to their  holdings of Preferred  Stock on a Redemption
Date. A Notice of Redemption  may be given by the  Corporation,  provided (i) no
Event of Default,  as described in the  Certificate of  Designations  shall have
occurred  or be  continuing;  and  (ii)  the  Conversion  Shares  issuable  upon
conversion  of the full Stated  Value of the  Preferred  Stock are  included for
unrestricted  resale in a registration  statement effective as of the Redemption
Date. Preferred Stock proceeds may not be used to effect an Optional Redemption.

     9. EVENT OF  DEFAULT.  The  occurrence  of any of the  following  events of
default  ("EVENT OF DEFAULT")  shall,  after the  applicable  period to cure the
Event of Default,  cause the dividend rate of 8% described in paragraph 3 hereof
to become 15% from and after the occurrence of such event,  and the Holder shall
have the  option to require  the  Corporation  to redeem the Series C  Preferred
Stock  held by  such  Holder  by the  immediate  payment  to the  Holder  by the
Corporation  of a sum of money  equal to the  number  of  shares  that  would be
issuable  upon  conversion  of an amount of Stated  Value and accrued  dividends

                                        6
<PAGE>
designated by the Holder at the Conversion Price in effect as of the trading day
prior to the date notice is given to the Corporation by the Holder multiplied by
the average of the closing ask prices of the Corporation's  Common Stock for the
same days employed when determining such Conversion Price:

          9.1 FAILURE TO PAY DIVIDEND. The Corporation fails to pay any dividend
payment  required to be paid  pursuant to the terms of paragraph 3 hereof or the
failure  to  timely  pay any  other  sum of  money  due to the  Holder  from the
Corporation  and such  failure  continues  for a period of ten (10)  days  after
written notice to the Corporation from the Holder.

          9.2 BREACH OF COVENANT. The Corporation breaches any material covenant
or other term or condition of this  Certificate of  Designations in any material
respect and such breach, if subject to cure, continues for a period of seven (7)
days after written notice to the Corporation from the Holder.

          9.3  BREACH  OF   REPRESENTATIONS   AND   WARRANTIES.   Any   material
representation  or warranty of the  Corporation  made  herein,  in the  Purchase
Agreement,  or in any  agreement,  statement  or  certificate  given in  writing
pursuant hereto or in connection therewith shall be false or misleading.

          9.4 RECEIVER OR TRUSTEE.  The Corporation shall make an assignment for
the  benefit  of  creditors,  or apply for or consent  to the  appointment  of a
receiver  or  trustee  for it or for a  substantial  part  of  its  property  or
business; or such a receiver or trustee shall otherwise be appointed.

          9.5 JUDGMENTS. Any money judgment, writ or similar final process shall
be entered or filed against  Borrower or any of its property or other assets for
more than $50,000, and shall remain unvacated, unbonded or unstayed for a period
of forty-five (45) days.

          9.6 BANKRUPTCY. Bankruptcy, insolvency,  reorganization or liquidation
proceedings  or other  proceedings or relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against the Corporation.

          9.7 DELISTING. Delisting of the Common Stock from the Principal Market
or such  other  principal  exchange  on which the  Common  Stock is  listed  for
trading; the Corporation's failure to comply with the conditions for listing; or
notification  that the  Corporation is not in compliance with the conditions for
such continued listing.

          9.8  CONCESSION.  A concession by the  Corporation,  after  applicable
notice  and cure  periods,  under any one or more  obligations  in an  aggregate
monetary amount in excess of $50,000.

          9.9 STOP TRADE.  An SEC stop trade order or Principal  Market  trading
suspension.

          9.10 FAILURE TO DELIVER  COMMON STOCK.  The  Corporation's  failure to
timely deliver  Common Stock to the Holder  pursuant to and in the form required
by this certificate and Section 8 of the Purchase Agreement.

          9.11 REGISTRATION DEFAULT. The occurrence of a Non-Registration  Event
as described in Section 9.4 of the Purchase Agreement.

     10. STATUS OF CONVERTED OR REDEEMED  STOCK.  In case any shares of Series C
Preferred  Stock shall be redeemed or otherwise  repurchased or reacquired,  the
shares  so  redeemed,  converted,  or  reacquired  shall  resume  the  status of
authorized  but  unissued  shares  of  Preferred  Stock  and  shall no longer be
designated as Series C Preferred Stock.

Dated:  October ___, 2001                  BESTNET COMMUNICATIONS CORP.

                                           By:_________________________

                                       7
<PAGE>
                                    EXHIBIT A

                              NOTICE OF CONVERSION

(To Be  Executed  By the  Registered  Holder in Order to  Convert  the  Series C
Convertible Preferred Stock of BestNet Communications Corp.)

     The undersigned hereby irrevocably elects to convert $______________ of the
Stated Value of the above Series C  Convertible  Preferred  Stock into shares of
Common Stock of BestNet  Communications  Corp. (the "Corporation")  according to
the conditions hereof, as of the date written below.

Date of Conversion:_____________________________________________________________

Applicable Conversion Price Per Share:__________________________________________

Conversion Price Calculated Pursuant to:
Section 4(b)(x):__________________________  or 4(b)(y):_________________________

The three dates and closing prices employed are:

(1)_______________/$_______________         (2)_______________/$_____________

(3)_______________/$_______________

Number of Common Shares Issuable Upon This Conversion:_____________

Signature:______________________________________________________________________

Print Name:_____________________________________________________________________

Address:________________________________________________________________________

________________________________________________________________________________

Deliveries Pursuant to this Notice of Conversion Should Be Made to:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

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