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Exhibit 4.12  

THE SECURITY EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAW, AND NO
INTEREST THEREIN (OR IN SUCH UNDERLYING SECURITIES) MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEGED OR OTHERWISE TRANSFERRED OR DISPOSED OF UNLESS (A) THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT AND APPLICABLE UNITED STATES SECURITIES LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES, OR (B) THIS CORPORATION RECEIVES AN OPINION OF LEGAL COUNSEL FOR
THE HOLDER OF THESE SECURITIES (CONCURRED IN BY LEGAL COUNSEL FOR THIS CORPORATION) STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (C) THIS CORPORATION OTHERWISE SATISFIES ITSELF
THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.

 
 

MDU COMMUNICATIONS INTERNATIONAL, INC.  
  

 
 

WARRANT TO PURCHASE COMMON STOCK  
  

Expires
June 10, 2008 

	No.: W-          	 	Number of Shares: 200,000
	Date of Issuance: June 10, 2003	 	 

        This
is to certify that, for value received and subject to the terms and conditions set forth below, that Steve Mazur, or assigns,
("Warrant Holder") is entitled to purchase and MDU Communications International, Inc., a Delaware corporation ("the Company"), promises and agrees to sell and issue, 200,000 fully paid, validly
issued and non-assessable shares of Common Stock (hereinafter defined) at a price of US$0.33 per share ("Exercise Price"). This Warrant shall expire on June 10, 2008. 

        This
Warrant is issued subject to the following terms and conditions: 

        1.    Definitions.    Except as may be otherwise clearly required by the context, the
following terms shall have the following meanings: 

"Common Stock" means the Common Stock of the Company. 

"Company" means MDU Communications International, Inc., a Delaware corporation. 

"Exercise Price" means the price at which a Warrant Holder may purchase one share of Common Stock (or Securities obtainable in lieu of one share of
Common Stock) upon exercise of Warrants as determined from time to time pursuant to the provisions hereof. 

"Securities" means the Common Stock or other securities obtained or obtainable upon exercise of the Warrants. 

"Warrant Holder" means the person named in the initial paragraph of this certificate or any successor who is a record holder of Warrants. 

"Warrants" means the warrants evidenced by this certificate or by any certificate obtained upon partial exercise of Warrants. 

        2.    Exercise of Warrants.    All or any part of the Warrants may be exercised by
surrendering this certificate, together with appropriate instructions, duly executed by the Warrant Holder, his assigns, or by its duly authorized attorney, at the office of the Company,
60-D Commerce Way, Totowa, New Jersey 07512, or at such other office or agency as the Company may designate by written notice to the Warrant Holder, accompanied by payment in full, in
lawful money of the United States of the Exercise 

 

Price
payable for the Securities being issued on exercise of such Warrants. If fewer than all the Warrants evidenced by this certificate are exercised, the Company will, upon such exercise, execute
and deliver to the Warrant Holder a new certificate (dated the date hereof), in form and tenor substantially similar to this certificate, evidencing the Warrants not exercised. The Securities to be
obtained on exercise of the Warrants shall be deemed to have been issued, and any person exercising the Warrants shall be deemed to have become a holder of record of those Securities, as of the date
of the surrender of this certificate and the payment of the Exercise Price. 

        3.    Adjustments in Certain Events.    The number, class and Exercise Price of Securities for
which this certificate may be exercised are subject to adjustment from time to time upon the happening of certain events as follows: 

        (a)    Stock Dividends, Splits, Etc.    If the outstanding shares of the Company's Common Stock are divided into a
greater number of shares or a dividend in stock is paid on the Common Stock, the number of shares of Common Stock which may be purchased under this certificate shall be proportionately
increased and the Exercise Price proportionately decreased; and, conversely, if the outstanding shares of Common Stock are combined into a smaller number of shares of Common Stock, the number of
shares of Common Stock which may be purchased under this certificate shall be proportionately reduced and the Exercise Price proportionately increased. The increases and reductions provided for in
this Section 3(a) shall be made with the intent and, as nearly as practicable, the effect that neither the percentage of the total equity of the Company obtainable on exercise of the Warrants
nor the aggregate Exercise Price for such percentage upon such exercise shall be affected by any event described in this Section 3(a). 

        (b)    Mergers, Consolidations, Etc.    In case of any change in the Common Stock of the Company through merger,
consolidation, reclassification, reorganization, partial or complete liquidation, transfer of assets or other change in the capital structure of the Company (not including the issuance of additional
shares of Common Stock by the Company other than by stock split or stock dividend) (the "Capital Reorganization"), then, as a condition of such Capital Reorganization, lawful and adequate provision
shall be made so that the holder of this certificate will have the right thereafter to receive upon the exercise of the Warrants the kind and amount of shares of stock or other securities or property
to which it would have been entitled if, immediately prior to such Capital Reorganization, it had held the number of shares of Common Stock obtainable upon the exercise of the Warrants. In any such
case, appropriate adjustment shall be made in the application of the provisions set forth herein with respect to the rights and interest thereafter of the Warrant Holder, to the end that the
provisions set forth herein shall thereafter be applicable, as nearly as reasonably may be possible, in relation to any shares of stock or other property thereafter deliverable upon the exercise of
the Warrants. The Company will not permit any Capital Reorganization described in this Section 3(b) to occur unless the issuer of the shares of stock or other securities to be received by the
holder of this certificate, if not the Company, agrees to be bound by and comply with the provisions of this certificate. 

        (c)    Determination and Notice of Exercise Price.    When any adjustment is required to be made in the number of
shares of Common Stock, Exercise Price, other securities, or the property purchasable upon exercise of the Warrants as provided in this Section 3, the Company shall promptly determine the new
Exercise Price, number of such shares or other securities or property purchasable upon exercise of the Warrants and (i) prepare and retain on file a statement describing in reasonable
detail the method used in arriving at the new Exercise Price or number of such shares or other securities or property purchasable upon exercise of the Warrants and (ii) cause a copy of such
statement to be mailed to the Warrant Holder within sixty (60) days after the date when the event giving rise to the adjustment occurred. 

2

 

        (d)    No Fractional Shares.    No fractional shares of Common Stock or other Securities will be issued in connection
with the exercise of any Warrants, but the Company shall pay, in lieu of fractional shares, a cash payment therefore on the basis of the mean between the bid and asked prices in the
over-the-counter market or the closing price on a national securities exchange on the day immediately prior to exercise. 

        (e)    Issuance of Other Securities, Etc.    If other securities of the Company or securities of any subsidiary of the
Company are distributed pro rata to holders of any or all of the Company's Common Stock, such number of securities shall be distributed to the Warrant Holder upon exercise of his rights hereunder as
such Warrant Holder or assignee would have been entitled to if this Warrant had been exercised prior to such distribution. The provisions with respect to adjustment of the Company's Common Stock
provided in this Section 3 shall also apply to such other securities and securities of any subsidiary to which the Warrant Holder or his assignee shall be entitled under this
Section 3(e). 

        4.    Reservation of Shares.    The Company agrees that the number of shares of Common Stock
or other Securities sufficient to provide for the exercise of the Warrants upon the basis set forth above shall at all times during the term of the Warrants be reserved for exercise. 

        5.    Validity of Securities.    All Securities delivered upon the exercise of the Warrants
shall be duly and validly issued in accordance with their terms, and the Company will pay all documentary and transfer taxes, if any, in respect of the original issuance thereof upon exercise of the
Warrants. 

        6.    Exchange, Transfer, Assignment or Loss of Warrant.    This Warrant is exchangeable,
without expense, at the option of the Warrant Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other warrants of different
denominations entitling the holder thereof to purchase in the aggregate the same number of shares of Common Stock purchasable hereunder. Upon surrender of this Warrant to the Company at its principal
office or at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed and funds sufficient to pay any transfer tax, the Company shall, without charge,
execute and deliver a new Warrant in the name of the assignee named in such instrument of assignment and this Warrant shall promptly be cancelled. This Warrant may be divided or combined with other
warrants which carry the same rights upon presentation hereof at the principal office of the Company or at the office of its stock transfer agent, if any, together with a written notice specifying the
names and denominations in which new Warrants are to be issued and signed by the Warrant Holder hereof. The term "Warrant" as used herein includes any Warrants into which this Warrant may be divided
or exchanged. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of reasonably
satisfactory indemnification, and upon surrender and cancellation of this Warrant, if mutilated, the Company will execute and deliver a new Warrant of like tenor and date. Any such new Warrant
executed and delivered shall constitute an additional contractual obligation on the part of the Company, whether or not this Warrant so lost, stolen, destroyed, or mutilated shall be at any time
enforceable by anyone. 

        7.    Investment Representation.    The Warrant Holder represents and warrants that it has
acquired the Warrants, and will acquire the Common Stock or other Securities, if any, upon exercise of the Warrants for his, her or its own account, for investment purposes only and not with a view to
resale or other distribution thereof, nor with the intention of selling, transferring or otherwise disposing of all or any part of such shares (or underlying securities) for any particular event or
circumstance, except for selling, transferring or disposing of said shares in full compliance with all applicable provisions of the Act and the Securities Exchange Act of 1934, and the Rules and
Regulations promulgated by the Securities and Exchange Commission thereunder. The undersigned further understands and agrees that such shares may be sold only if they are subsequently registered under
the Act or an exemption from such registration is available, and that any routine sales or securities made in reliance upon Rule 144 

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can
be made only after the holding period specified in that Rule, and only in the amounts set forth in and pursuant to the other terms and conditions of that Rule. The undersigned understands that a
stop order will be placed on the books and records of the transfer agent regarding the shares. An appropriate legend to the foregoing effect and of the type commonly placed on certificates evidencing
privately placed securities may be placed on all certificates evidencing Securities. 

        8.    No Rights as a Shareholder.    Except as otherwise provided herein, the Warrant Holder
shall not, by virtue of ownership of Warrants, be entitled to any rights of a shareholder of the Company but shall, upon written request to the Company, be entitled to receive such quarterly or annual
reports as the Company by mail shall distribute to its shareholders. 

        9.    Registration Rights.    If the Company shall determine to proceed with the preparation
and filing of a registration statement under the Securities Act of 1933, as amended, in connection with the proposed offer and sale of any of its securities by it or any of its security holders (other
than a registration statement on Form S-4, S-8 or other limited purpose form), then the Company will give written notice of its determination to the Warrant Holder. Upon
the written request from the Warrant Holder, the Company will cause to be registered a sufficient number of shares of Common Stock to effect the full exercise of this Warrant in such registration
statement. The Company covenants and agrees to keep the registration statement effective and file any post-effective amendments or prospectus supplements required to maintain the
effectiveness of the Registration Statement during the term of this Warrant and for a period of ninety (90) days thereafter. 

        10.    Notice.    Any notices required or permitted to be given hereunder shall be in writing
and may be served personally or by mail; and if served by mail, shall be addressed as follows: 

	To Company:	 	MDU Communications International, Inc.

60-D Commerce Way

Totowa, New Jersey 07512
	

To Warrant Holder:	
 	

Steve Mazur

66 Glenbrook Road, #1314

Stamford, CT 06903

        Any
notice so given by mail shall be deemed effectively given 48 hours after mailing when deposited in the United States mail, registered or certified mail, return receipt
requested, postage prepaid and addressed as specified above. Any party may by written notice to the other specify a different address for notice purposes. 

        11.    Applicable Law.    This Certificate shall be governed by and construed in accordance
with the laws of the State of New Jersey. 

        DATED as of June 10, 2003. 

	 	 	MDU COMMUNICATIONS INTERNATIONAL, INC.
	

 	
 	

per:	
 	

 Authorized Signatory

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   Warrant Exercise / Purchase Form  

        The undersigned hereby irrevocably elects to exercise on this          day of
                             ,
200        ,          shares of Common Stock pursuant to the within Warrant to Purchase Common Stock dated June 10, 2003
and hereby makes payment of                in payment of the actual exercise price thereof. 

Registration Information  

Please
register the issued Common Stock as follows: 

	Name:	 	
 (Please print)	 	 
	

Address:	
 	

 	
 	

 
	 	 	
    
    
	 	 

If
the Warrant Holder is an individual, please complete the following: 

	
 Signature of Witness	 	
 Signature of Warrant Holder
	

 Name of Witness (Please Print)	
 	

 Name of Warrant Holder (Please Print)

If
the Warrant Holder is a corporation, please have a duly authorized signatory sign here and complete the section below: 

	THE CORPORATE SEAL of:	 	)	 	 
	 	 	)	 	 
	
	 	)	 	 
	(Name of Warrant Holder) was hereunto	 	)	 	c/s
	affixed in the presence of:	 	)	 	 
	 	 	)	 	 
	
	 	)	 	 
	Authorized Signatory	 	)	 	 
	 	 	)	 	 

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   Assignment Form  

        FOR VALUE RECEIVED,
                              hereby sells, assigns and transfers unto: 

	Name:	 	
	 	 
	(Please typewrite or print in block letters)	 	 
	

Address:	
 	

	
 	

 

the
right to purchase Common Stock represented by this attached Warrant to the extent of                shares as to which such right is exercisable and does hereby
irrevocably constitute and appoint                               Attorney, to transfer the same on
the books of the Company with full power of substitution in the premises. 

	Date:	 	
	 	 
	

Signature:	
 	

	
 	

 

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Exhibit 4.13  

THIS WARRANT AND ANY SHARES OF COMMON STOCK ISSUABLE UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW, AND
NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR
SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THE HOLDER, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO COUNSEL FOR THIS
COMPANY, IS AVAILABLE.

 
 

WARRANT TO PURCHASE COMMON STOCK  
    
    OF  
    
    MDU COMMUNICATIONS INTERNATIONAL, INC.  
  

W—           

This
is to Certify That, FOR VALUE RECEIVED,                          or assigns ("Holder"), is entitled to purchase, subject to
the provisions of this Warrant, from MDU
Communications International, Inc., a Delaware corporation ("Company"),              fully paid, validly issued and nonassessable shares of common stock, par
value $.001 per share, of the Company ("Common Stock"), at a purchase price equal to $.33 per share at any time or from time to time commencing on the date hereof until June 24, 2008. The
number of shares of Common Stock to be received upon the exercise of this Warrant and the price to be paid for each share of Common Stock may be adjusted from time to time as hereinafter set forth.
The shares of
Common Stock deliverable upon such exercise, and as adjusted from time to time, are hereinafter sometimes referred to as "Warrant Shares" and the exercise price of a share of Common Stock in effect at
any time and as adjusted from time to time is hereinafter sometimes referred to as the "Exercise Price." 

        This
Warrant was originally issued in connection with a private offering of securities by the Company, pursuant to the terms of a Confidential Offering Memorandum dated June 10,
2003, as supplemented (the "Memorandum"). 

        (a)   EXERCISE
OF WARRANT; CANCELLATION OF WARRANT. 

        (1)   This
Warrant may be exercised in whole or in part at any time or from time to time commencing on the date hereof and until June 24, 2008 (the "Exercise Period"),
provided, however, that if either such day is a day on which banking institutions in the State of New York are authorized by law to close, then on the next succeeding day which shall not be such a
day. This Warrant may be exercised by presentation and surrender hereof to the Company at its principal office, or at the office of its stock transfer agent, if any, with the Purchase Form annexed
hereto duly executed and accompanied by payment of the Exercise Price for the number of Warrant Shares specified in such form. As soon as practicable after each such exercise of this Warrant, but not
later than seven days from the date of such exercise, the Company shall issue and deliver to the Holder a certificate or certificates for the Warrant Shares issuable upon such exercise, registered in
the name of the Holder or its designee. If this Warrant should be exercised in part only, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver a new Warrant
evidencing the rights of the Holder thereof to purchase the balance of the Warrant Shares purchasable thereunder. Upon receipt by the Company of this Warrant at its office, or by the stock transfer
agent of the Company at its office, in proper form for exercise, the Holder shall be deemed to be the holder of record of the shares of Common Stock issuable upon such exercise, notwithstanding that
the stock transfer books of the Company shall then be closed or that 

 

certificates
representing such shares of Common Stock shall not then be physically delivered to the Holder. 

        (2)   In
lieu of the payment method set forth in Section (a)(1) above, at any time during the Exercise Period, the Holder may, at its option, exchange this Warrant, in
whole or in part (a "Warrant Exchange"), without the payment by the Holder of any additional consideration into the number of Warrant Shares determined in accordance with this Section (a)(2),
by surrendering this Warrant at the principal office of the Company or at the office of its stock transfer agent, accompanied by a notice
stating such Holder's intent to effect such exchange, the number of Warrant Shares to be exchanged and the date on which the Holder requests that such Warrant Exchange occur (the "Notice of
Exchange"). The Warrant Exchange shall take place on the date specified in the Notice of Exchange or, if later, the date the Notice of Exchange is received by the Company (the "Exchange Date").
Certificates for the shares issuable upon such Warrant Exchange and, if applicable, a new warrant of like tenor evidencing the balance of the shares remaining subject to this Warrant, shall be issued
as of the Exchange Date and delivered to the Holder within seven days following the Exchange Date. In connection with any Warrant Exchange, this Warrant shall represent the right to subscribe for and
acquire the number of Warrant Shares (rounded to the next highest integer) equal to (i) the number of Warrant Shares specified by the Holder in its Notice of Exchange (the "Total Number") less
(ii) the number of Warrant Shares equal to the quotient obtained by dividing (A) the product of the Total Number and the existing Exercise Price by (B) the current market value of
a share of Common Stock. Current market value shall have the meaning set forth in Section (c) below, except that for purposes hereof, the date of exercise, as used in such Section (c),
shall mean the Exchange Date. 

        (b)   RESERVATION
OF SHARES.    The Company shall at all times reserve for issuance and/or delivery upon exercise of this Warrant such number of shares of Common
Stock as shall be required for issuance and delivery upon exercise of the Warrants. 

        (c)   FRACTIONAL
SHARES.    No fractional shares or script representing fractional shares shall be issued upon the exercise of this Warrant. With respect to any
fraction of a share called for upon any exercise hereof, the Company shall pay to the Holder an amount in cash equal to such fraction multiplied by the current market value of a share, determined as
follows: 

        (1)   If
the Common Stock is listed on a national securities exchange or admitted to unlisted trading privileges on such exchange or listed for trading on the Nasdaq National
Market, the current market value shall be the last reported sale price of the Common Stock on such exchange or market on the last business day prior to the date of exercise of this Warrant or if no
such sale is made on such day, the average closing bid and asked prices for such day on such exchange or market; or 

        (2)   If
the Common Stock is not so listed or admitted to unlisted trading privileges, but is traded on the Nasdaq SmallCap Market, the current market value shall be the
average of the closing bid and asked prices for such day on such market and if the Common Stock is not so traded, the current market value shall be the mean of the last reported bid and asked prices
reported by the National Quotation Bureau, Inc. on the last business day prior to the date of the exercise of this Warrant; or 

        (3)   If
the Common Stock is not so listed or admitted to unlisted trading privileges and bid and asked prices are not so reported, the current market value shall be an
amount, not less than book value thereof as at the end of the most recent fiscal year of the Company ending prior to the date of the exercise of the Warrant, determined in such reasonable manner as
may be prescribed by the Board of Directors of the Company. 

2

 

        (d)   EXCHANGE,
TRANSFER, ASSIGNMENT OR LOSS OF WARRANT.    This Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and
surrender hereof to the Company or at the office of its stock transfer agent, if any, for other warrants of different denominations entitling the holder thereof to purchase in the aggregate the same
number of shares of Common Stock purchasable hereunder. Upon surrender of this Warrant to the Company at its principal office or at the office of its stock transfer agent, if any, with the Assignment
Form annexed hereto duly executed and funds sufficient to pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant in the name of the assignee named in such
instrument of assignment and this Warrant shall promptly be cancelled. This Warrant may be divided or combined with other warrants which carry the same rights upon presentation hereof at the principal
office of the Company or at the office of its stock transfer agent, if any, together with a written notice specifying the names and denominations in which new Warrants are to be issued and signed by
the Holder hereof. The term "Warrant" as used herein includes any Warrants into which this Warrant may be divided or exchanged. Upon receipt by the Company of evidence satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant, if
mutilated, the Company will execute and deliver a new Warrant of like tenor and date. Any such new Warrant executed and delivered shall constitute an additional contractual obligation on the part of
the Company, whether or not this Warrant so lost, stolen, destroyed, or mutilated shall be at any time enforceable by anyone. 

        (e)   RIGHTS
OF THE HOLDER.    The Holder shall not, by virtue hereof, be entitled to any rights of a shareholder in the Company, either at law or equity, and the
rights of the Holder are limited to those expressed in the Warrant and are not enforceable against the Company except to the extent set forth herein. 

        (f)    ANTI-DILUTION
PROVISIONS.    The Exercise Price in effect at any time and the number and kind of securities purchasable upon the exercise of the
Warrants shall be subject to adjustment from time to time upon the happening of certain events as follows: 

        (1)   In
case the Company shall (i) declare a dividend or make a distribution on its outstanding shares of Common Stock in shares of Common Stock, (ii) subdivide
or reclassify its outstanding shares of Common Stock into a greater number of shares, or (iii) combine or reclassify its outstanding shares of Common Stock into a smaller number of shares, the
Exercise Price in effect at the time of the record date for such dividend or distribution or of the effective date of such subdivision, combination or reclassification shall be adjusted so that it
shall equal the price determined by multiplying the Exercise
Price by a fraction, the denominator of which shall be the number of shares of Common Stock outstanding after giving effect to such action, and the numerator of which shall be the number of shares of
Common Stock outstanding immediately prior to such action. Such adjustment shall be made successively whenever any event listed above shall occur. 

        (2)   In
case the Company shall fix a record date for the issuance of rights or warrants to all holders of its Common Stock entitling them to subscribe for or purchase shares
of Common Stock (or securities convertible into Common Stock) at a price (the "Subscription Price") (or having a conversion price per share ("Conversion Price") less than the Exercise Price on such
record date or less than the current market price of the Common Stock (as defined in Subsection (8) below) on the record date mentioned below, the Exercise Price shall be adjusted so that the
same shall equal the price determined by multiplying the Exercise Price in effect immediately prior to the date of such issuance by a fraction, the numerator of which shall be the sum of the number of
shares of Common Stock outstanding on the record date mentioned below and the number of additional shares of Common Stock which the aggregate offering price of the total number of shares of Common
Stock so offered (or the aggregate conversion price of the convertible securities so offered) would purchase at either the Exercise Price in effect immediately prior to the date of 

3

 

such
issuance or such current market price per share of the Common Stock (as applicable), and the denominator of which shall be the sum of the number of shares of Common Stock outstanding on such
record date and the number of additional shares of Common Stock offered for subscription or purchase (or into which the convertible securities so offered are convertible). Such adjustment shall be
made successively whenever such rights or warrants are issued and shall become effective immediately after the record date for the determination of shareholders entitled to receive such rights or
warrants; and to the extent that shares of Common Stock are not delivered (or securities convertible into Common Stock are not delivered) after the expiration of such rights or warrants the Exercise
Price shall be readjusted to the Exercise Price which would then be in effect had the adjustments made upon the issuance of such rights or warrants been made upon the basis of delivery of only the
number of shares of Common Stock (or securities convertible into Common Stock) actually delivered. 

        (3)   In
case the Company shall hereafter distribute to the holders of its Common Stock evidences of its indebtedness or assets (excluding cash dividends or distributions and
dividends or distributions referred to in Subsection (1) above) or subscription rights or warrants (excluding those referred to in Subsection (2) above), then in each such case the
Exercise Price in effect thereafter shall be determined by multiplying the Exercise Price in effect immediately prior thereto by a fraction, the numerator of which shall be the total number of shares
of Common Stock outstanding multiplied by the current market price per share of Common Stock (as defined in Subsection (7) below), less the fair market value (as determined by the Company's
Board of Directors) of said assets or evidences of indebtedness so distributed or of such rights or warrants, and the denominator of which shall be the total number of shares of Common Stock
outstanding multiplied by such current market price per share of Common Stock. Such adjustment shall be made successively whenever such a record date is fixed. 

        (4)   In
case the Company shall issue or sell shares of its Common Stock or other securities convertible, exchangeable, or exercisable into Common Stock [excluding
shares issued (i) in any of
the transactions described in Subsection (1) above, (ii) to any employee, but not in excess of 1 million shares in the aggregate, or upon exercise of (y) options granted to
or (z) shares sold to, the Company's employees, consultants, officers and directors under a plan or plans adopted by the Company's Board of Directors and approved by its shareholders, if such
shares would otherwise be included in this Subsection (4), (but only to the extent that the aggregate number of shares excluded hereby and issued after the date hereof, shall not exceed 5% of the
Company's Common Stock outstanding at the time of any issuance), (iii) upon exercise of options and warrants outstanding on the date of the Memorandum, (iv) to shareholders of any
corporation which merges into the Company in proportion to their stock holdings of such corporation immediately prior to such merger, upon such merger, or (v) issued in a bona fide public
offering pursuant to a firm commitment underwriting, but only if no adjustment is required pursuant to any other specific subsection of this Section (f) (without regard to Subsection
(9) below) with respect to the transaction giving rise to such rights)] for a consideration per share (the "Offering Price") less than the Exercise Price and/or less than ninety
percent (90%) of the current market price per share (as defined in Subsection (8) below) on the date of such sale or issuance of such securities, the Exercise Price shall be adjusted
immediately thereafter so that it shall be reduced to the lower of either of the following prices, determined as follows: 

	(i)
	by
dividing (x) the sum of (A) the total number of shares of Common Stock outstanding immediately prior to such issuance or sale multiplied by the
then-existing Exercise Price, plus (B) the aggregate of the amount of all consideration, if any, received by the Company upon such issuance or sale, by (y) the total number
of shares of Common Stock outstanding immediately after such issuance or sale; or 

4

 

	(ii)
	by
multiplying (x) the Exercise Price in effect immediately prior to the time of such issue or sale by (y) a fraction, the numerator of which shall be the
sum of (A) the number of shares of Common Stock outstanding immediately prior to such issue or sale, multiplied by ninety percent (90%) of the current market price per share (as defined in
Subsection (8) below) immediately prior to such issue or sale, plus (B) the consideration received by the Company upon such issue or sale, and the denominator of which shall be the
product of (1) the total number of shares of Common Stock outstanding immediately after such issue or sale, multiplied by (2) ninety percent (90%) of the current market price per share
immediately prior to such issue or sale. 

        (5)   Whenever
the Exercise Price payable upon exercise of each Warrant is adjusted pursuant to Subsections (1), (2), (3) and (4) above, the number of Warrant
Shares purchasable upon exercise of this Warrant shall simultaneously be adjusted by multiplying the number of shares initially issuable upon exercise of this Warrant by the Exercise Price in effect
on the date hereof and dividing the product so obtained by the Exercise Price, as adjusted. 

        (6)   For
purposes of any computation respecting consideration received pursuant to Subsections (4) above, the following shall apply: 

        (A)  in
the case of the issuance of shares of Common Stock for cash, the consideration shall be the amount of such cash, provided that in no case shall any deduction be made
for any commissions, discounts or other expenses incurred by the Company for any underwriting of the issue or otherwise in connection therewith; 

        (B)  in
the case of the issuance of shares of Common Stock for a consideration in whole or in part other than cash, the consideration other than cash shall be deemed to be
the fair market value thereof as determined in good faith by the Board of Directors of the Company (irrespective of the accounting treatment thereof), whose determination shall be conclusive; and 

        (C)  in
the case of the issuance of securities convertible, exchangeable or exercisable for shares of Common Stock, the aggregate consideration received therefor shall be
deemed to be the consideration received by the Company for the issuance of such securities plus the additional minimum consideration, if any, to be received by the Company upon the conversion or
exchange thereof (the consideration in each case to be determined in the same manner as provided in clauses (A) and (B) of this Subsection (6)). 

        (7)   For
the purpose of any computation under Subsections (2), (3) and (4) above, the current market price per share of Common Stock at any date shall be
determined in the manner set forth in Section (c) hereof except that the current market price per share shall be deemed to be the average of the prices for thirty (30) consecutive
business days before such date. 

        (8)   No
adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least five cents ($0.05) in such price;
provided, however, that any adjustments which by reason of this Subsection (8) are not required to be made shall be carried forward and taken into account in any subsequent adjustment required
to be made hereunder. All calculations under this Section (f) shall be made to the nearest cent or to the nearest one-hundredth of a share, as the case may be. Anything in this
Section (f) to the contrary notwithstanding, the Company shall be entitled, but shall not be required, to make such changes in the Exercise Price, in addition to those required by this
Section (f), as it shall determine, in its sole discretion, to be advisable in order that any dividend or distribution in shares of Common Stock, or any subdivision, reclassification or
combination of Common Stock, hereafter made by the Company shall not result in any Federal Income tax liability to the holders of Common Stock or securities convertible into Common Stock (including
Warrants). 

5

 

        (9)   Whenever
the Exercise Price is adjusted, as herein provided, the Company shall promptly but no later than 10 days after such adjustment, cause a notice setting
forth the adjusted Exercise Price and adjusted number of shares issuable upon exercise of each Warrant, and, if requested, information describing the transactions giving rise to such adjustments, to
be mailed to the Holders at their last addresses appearing in the Warrant Register, and shall cause a certified copy thereof to be mailed to its transfer agent, if any. In the event the Company does
not provide the Holder with such notice and information within such ten (10) days, then notwithstanding the provisions of this Section (f), the Exercise Price shall be immediately
adjusted to equal the lowest Offering Price, Subscription Price or Conversion Price, as applicable, since the date of this Warrant, and the number of shares issuable upon exercise of this Warrant
shall be adjusted accordingly. The Company may retain a firm of independent certified public accountants selected by the Board of Directors (who may be the regular accountants employed by the Company)
to make any computation required by this Section (f), and a certificate signed by such firm shall be conclusive evidence of the correctness of such adjustment. 

        (10) In
the event that at any time, as a result of an adjustment made pursuant to Section (i) below, the Holder of this Warrant thereafter shall become entitled to
receive any shares of the Company, other than Common Stock, thereafter the number of such other shares so receivable upon exercise of this Warrant shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with respect to the Common Stock contained in Subsections (1) to (8), inclusive above. 

        (11) Irrespective
of any adjustments in the Exercise Price or the number or kind of shares purchasable upon exercise of this Warrant, Warrants theretofore or thereafter
issued may continue to express the same price and number and kind of shares as are stated in the similar Warrants initially issuable pursuant to this Agreement. 

        (g)   OFFICER'S
CERTIFICATE. Whenever the Exercise Price shall be adjusted as required by the provisions of the foregoing Section, the Company shall forthwith file in the
custody of its Secretary or an Assistant Secretary at its principal office and with its stock transfer agent, if any, an officer's certificate showing the adjusted Exercise Price and Warrant Shares
determined as herein provided, setting forth in reasonable detail the facts requiring such adjustment, including a statement of the number of additional shares of Common Stock, if any, and such other
facts as shall be necessary to show the reason for and the manner of computing such adjustment. Each such officer's certificate shall be made available at all reasonable times for inspection by the
Holder or any holder of a Warrant executed and delivered pursuant to Section (a) and the Company shall, forthwith after each such adjustment, mail a copy by certified mail of such certificate
to the Holder or any such holder. 

        (h)   NOTICES
TO WARRANT HOLDERS. So long as this Warrant shall be outstanding, (i) if the Company shall pay any dividend or make any distribution upon the Common Stock
or (ii) if the Company shall offer to the holders of Common Stock for subscription or purchase by them any share of any class or any other rights or (iii) if any capital reorganization
of the Company, reclassification of the capital stock of the Company, consolidation or merger of the Company with or into another corporation, sale, lease or transfer of all or substantially all of
the property and assets of the Company to another corporation, or voluntary or involuntary dissolution, liquidation or winding up of the Company shall be effected, then in any such case, the Company
shall cause to be mailed by certified mail to the Holder, at least fifteen days prior the date specified in (x) or (y) below, as the case may be, a notice containing a brief description
of the proposed action and stating the date on which (x) a record is to be taken for the purpose of such dividend, distribution or rights, or (y) such reclassification, reorganization,
consolidation, merger, conveyance, lease, dissolution, liquidation or winding up is to take place and the date, if any is to be fixed, as of which the holders of Common Stock or other securities shall
receive cash or other property deliverable upon such reclassification, reorganization, consolidation, merger, conveyance, dissolution, liquidation or winding up. 

6

 

        (i)    RECLASSIFICATION,
REORGANIZATION OR MERGER. In case of any reclassification, capital reorganization or other change of outstanding shares of Common Stock of the Company,
or in case of any consolidation or merger of the Company with or into another corporation (other than a merger with a subsidiary in which merger the Company is the continuing corporation and which
does not result in any reclassification, capital reorganization or other change of outstanding shares of Common Stock of the class issuable upon exercise of this Warrant) or in case of any sale, lease
or conveyance to another corporation of the property of the Company as an entirety, the Company shall, as a condition precedent to such transaction, cause effective provisions to be made so that the
Holder shall have the right thereafter by exercising this Warrant at any time prior to the expiration of the Warrant, to purchase the kind and amount of shares of stock and other securities and
property receivable upon such reclassification, capital reorganization and other change, consolidation, merger, sale or conveyance by a holder of the number of shares of Common Stock which might have
been purchased upon exercise of this Warrant immediately prior to such reclassification, change, consolidation, merger, sale or conveyance. Any such provision shall include provision for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Warrant. The foregoing provisions of this Section (i) shall similarly apply to successive
reclassifications, capital reorganizations and changes of shares of Common Stock and to successive consolidations, mergers, sales or conveyances. In the event that in connection with any such capital
reorganization or reclassification, consolidation, merger, sale or conveyance, additional shares of Common Stock shall be issued in exchange, conversion, substitution or payment, in whole or in part,
for a security of the Company other than Common Stock, any such issue shall be treated as an issue of Common Stock covered by the provisions of Subsection (1) of Section (f) hereof. 

        (j)    REGISTRATION
UNDER THE SECURITIES ACT OF 1933. The Holder shall have registration rights with respect to the Warrant Shares as more particularly set forth in the
subscription agreement executed in connection with the Private Placement. 

	 	 	MDU COMMUNCATIONS INTERNATIONAL, INC.
	

 	
 	

By:	
 	

 Sheldon Nelson, Chief Executive Officer
	

Dated: June 24, 2003	
 	

 	
 	

 
	

Attest:	
 	

 	
 	

 
	

	
 	

 	
 	

 
	

c/s	
 	

 	
 	

 

7

CASHLESS EXERCISE FORM/NOTICE OF EXCHANGE  

[To
be executed upon exercise of Warrant pursuant to Section (a)] 

        The
undersigned hereby irrevocably elects to surrender its Warrant for such shares of Common Stock pursuant to the cashless exercise provisions of the within Warrant, as provided for in
Section (a)(2) of such Warrant. 

        Please
issue a certificate or certificates for            shares of Common Stock in the name of, and pay cash for fractional shares pursuant to Section (c) of the Warrant. 

	Date of Warrant Exercise:	 	
	 	 
	

Name:	
 	

	
 	

 
	

[Please Print Name, Address and Social Security No.]	

 	

 
	

Address:	
 	

	
 	

 
	

	
 	

 
	

	
 	

 
	

Social Security No.:	
 	

	
 	

 
	

Signature:	
 	

	
 	

 

NOTE: The above signature should correspond exactly with the name on the first page of this Warrant or with the name of the assignee appearing in the
assignment form below. 

And
if said number of shares shall not be all the shares exchangeable or purchasable under the within Warrant, a new Warrant is to be issued in the name of the undersigned or the parties listed below
for the balance remaining of the shares purchasable thereunder. 

 
 

PURCHASE FORM    
    

Dated
             

        The
undersigned hereby irrevocably elects to exercise the within Warrant to the extent of purchasing              shares of Common Stock and hereby makes
payment of $             in payment of the actual exercise price thereof. 

INSTRUCTIONS
FOR REGISTRATION OF STOCK 

	Name:	 	
 (Please typewrite or print in block letters)	 	 
	

 Address	
 	

 
	

 Signature	
 	

 

ASSIGNMENT FORM  

        FOR VALUE RECEIVED,                          hereby sells,
assigns and transfers unto 

	Name:	 	    
 (Please typewrite or print in block letters)	 	 
	

 Address	
 	

 

The
right to purchase Common Stock represented by this Warrant to the extent of              shares as to which such right is exercisable and does hereby irrevocably
constitute and appoint                          Attorney, to transfer the same on the books of the Company with full power
of substitution in the premises. 

	    
 Date	 	 
	

 Signature	
 	

 
	

 Print Name	
 	

 

QuickLinks

WARRANT TO PURCHASE COMMON STOCK OF MDU COMMUNICATIONS INTERNATIONAL, INC.

PURCHASE FORM

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