Exhibit 10.6

AMENDMENT

TO

AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT

 

                  THIS AMENDMENT TO AMENDED AND RESTATED INVESTOR RIGHTS
AGREEMENT (the "Amendment") is entered into as of the 14th day of June, 2004
(the "Effective Date"), by and among VitalStream Holdings, Inc., a Nevada
corporation (the "Company"), the Common Stockholders, the Preferred
Stockholders, the Convertible Noteholders, and the Warrant Holders (together
with the Company, the "Parties"). Capitalized terms not expressly defined herein
shall have the meaning set forth in the Agreement (as such term is defined
below).

RECITALS

           WHEREAS, the Parties entered into that certain Amended and Restated
Investor Rights Agreement dated as of September 30, 2003 (the "Agreement"); and

           WHEREAS, the Parties desire to amend the Agreement as set forth
herein.

AGREEMENT

           NOW, THEREFORE, for good and valuable consideration, the receipt,
adequacy and legal sufficiency of which are hereby acknowledged, the Parties
hereby agree as follows:

           1. Amendment. Section 2 (Preemptive Rights) of the Agreement is
hereby deleted in its entirety.

           2. Party to Walden Investor Rights Agreement. Upon the execution and
delivery by the Major Investor (as defined in the Purchase Agreement dated June
14, 2004 among the Company and the Investors party thereto, (the "Purchase
Agreement")) of a counterpart signature page to the Agreement, as amended by
this Amendment, the Parties party hereto (other than Kevin Herzog) shall execute
and deliver a counterpart signature page to the Investor Rights Agreement (as
defined in the Purchase Agreement). The Parties hereby consent to the Major
Investor becoming a party to, and assuming all rights and obligations of a
Common Stockholder under, the Agreement, as amended by this Amendment.

           3. Deletion of Kevin Herzog. Notwithstanding anything herein to the
contrary, upon execution of a counterpart signature page hereto by Kevin Herzog,
Kevin Herzog shall no longer be deemed to be a party to the Agreement and shall
have no rights and obligations thereunder or hereunder.

           4. Elimination of Automatic Termination of Board Right. The phrase
"At any time and from time to time until the earlier to occur of (x) the date
that the Underlying Common Stock constitutes no more than seven (7) percent of
the Company's outstanding Common Stock or (y) January 15, 2007" in the first
sentence of Section 3(a) of the Agreement is hereby deleted and replaced with
the following: "At any time and from time to time until the date that the
Underlying Common Stock constitutes no more than seven (7) percent of the
Company's outstanding Common Stock,".

           5. Continuing Enforceability. In all respects, other than as
specifically set forth in this Amendment, the Agreement shall remain unaffected
by this Amendment, and the Agreement shall continue in full force and effect,
subject to the terms and conditions thereof.

           6. Further Assurances. Each of the Parties shall execute any and all
further documents, agreements and instruments, and take all further actions
which may be required under applicable law, or which another Party may, in its
reasonable discretion, request in order to effectuate the transactions
contemplated by this Amendment.

           7. Sufficient Signatories. In accordance with Section 14 of the
Agreement, this Amendment shall be effective as of the Effective Date upon
execution of the same by (a) the Company, (b) the holders of a majority of the
Common Stock held by the Common Stockholders, (c) the holders of a majority of
the Series A Preferred held by the Preferred Stockholders and (d) the Dolphin
Holders owning a majority of the Stockholder Shares held by all Dolphin Holders,
regardless of whether this Amendment is executed by all of the Parties listed
below. To the extent permitted by governing law, all parties to the Agreement
shall be bound the terms of this Amendment upon its effectiveness, whether or
not they have executed counterpart signature pages hereto.

           8. Facsimile Signature and Counterparts. This Amendment may be
executed by facsimile signature and in separate counterparts, each of which is
deemed to be an original and all of which taken together constitute one and the
same instrument.

 

[Signature Pages Follows]

 

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                      IN WITNESS WHEREOF, the Parties hereto have executed this
Amendment to Amended and Restated Investor Rights Agreement as of the Effective
Date.

 

 

   

VITALSTREAM HOLDINGS, INC.

                   

By:

/s/ Paul Summers

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Name:

Paul Summers

   

Title:

President

                   

EPOCH HOSTING, INC.

                   

By:

/s/ Dennis O'Connell

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Name:

     

Title:

                     

DOLPHIN COMMUNICATIONS FUND II, L.P.

                   

By:

Dolphin Communications II, L.P.,
Its General Partner

           

By:

Dolphin Communications, L.L.C.,
Its General Partner

           

By:

/s/ Dennis O'Connell

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Name:

Dennis O'Connell

   

Title:

                 

 

   

DOLPHIN COMMUNICATIONS PARALLEL FUND II (NETHERLANDS), L.P.

                   

By:

Dolphin Communications II, L.P.,
Its General Partner

           

By:

Dolphin Communications, L.L.C.,
Its General Partner

           

By:

/s/ Dennis O'Connell

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Name:

Dennis O'Connell

   

Title:

                 

 

[signature page to Amendment to Amended and Restated Investor Rights Agreement]

 

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/s/ Paul Summers

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Paul Summers

                     

/s/ Philip N. Kaplan

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Philip N. Kaplan

                     

/s/ David R. Williams

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David R. Williams

                     

/s/ Steve Smith

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Steve Smith

                       

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Kevin Herzog

       

 

 

 

 

 

[signature page to Amendment to Amended and Restated Investor Rights Agreement]

 

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Counterpart Signature Page

to

Amended and Restated Investor Rights Agreement, as Amended

 

                      IN WITNESS WHEREOF, the undersigned hereby executes, and
agrees to assume all rights and obligations of a Common Stockholder under, the
Amended and Restated Investor Rights Agreement dated September 30, 2003 among
VitalStream Holdings, Inc. and the Common Stockholders, Preferred Stockholders,
Convertible Noteholders, and Warrant Holders party thereto, as amended by the
Amendment to Amended and Restated Investor Rights Agreement dated as of June 14,
2004.

 

   

WALDENVC II, L.P.

                   

By:

WaldenVC, LLC
Its General Partner

           

By:

/s/ Phil Sanderson

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Name:

Phil Sanderson

   

Title:

General Partner

 

 

 

 

 

 

 

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