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                                                                     EXHIBIT 4.1

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

THE TRANSFER OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT IS SUBJECT TO THE
CONDITIONS SPECIFIED IN THE CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT,
DATED AS OF NOVEMBER 1, 2002, AMONG THE ISSUER OF SUCH SECURITIES (THE
"COMPANY") AND THE OTHER PARTIES REFERRED TO THEREIN, AS AMENDED AND MODIFIED
FROM TIME TO TIME, AND THE COMPANY RESERVES THE RIGHT TO REFUSE THE TRANSFER OF
SUCH SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO SUCH
TRANSFER. A COPY OF SUCH CONDITIONS SHALL BE FURNISHED WITHOUT CHARGE BY THE
COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.

THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE SUBJECT TO A INVESTOR RIGHTS
AGREEMENT, DATED AS OF [__], 2002, AMONG THE COMPANY AND THE STOCKHOLDERS OF THE
COMPANY REFERRED TO THEREIN, AS AMENDED AND MODIFIED FROM TIME TO TIME. A COPY
OF SUCH INVESTOR RIGHTS AGREEMENT SHALL BE FURNISHED WITHOUT CHARGE BY THE
COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.

                           VITALSTREAM HOLDINGS, INC.

                          COMMON STOCK PURCHASE WARRANT

DATE OF ISSUANCE:  NOVEMBER [_____], 2002              CERTIFICATE NO. W-[_____]

          FOR VALUE RECEIVED, VitalStream Holdings, Inc., a Nevada corporation
(the "COMPANY"), hereby grants to [_____], or its registered assigns (the
"REGISTERED HOLDER"), the right to purchase from the Company a number of shares
of the Company's Common Stock equal to the Warrant Share Amount at a price per
share equal to $[_____] [TO BE INSERTED AT CLOSING - A PRICE EQUAL TO THE MARKET
PRICE (AS DEFINED HEREIN) OF THE COMMON STOCK ENDING ON THE BUSINESS DAY
IMMEDIATELY

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PRIOR TO THE EXECUTION OF THE ASSET PURCHASE AGREEMENT, MULTIPLIED BY 1.1] (as
adjusted from time to time hereunder, the "EXERCISE PRICE").

          This Warrant was issued pursuant to a Convertible Note and Warrant
Purchase Agreement, dated as of November 1, 2002 (as amended and modified from
time to time, the "NOTE PURCHASE AGREEMENT"), between the Company and the other
parties referred to therein, and this Warrant is one of the "Warrants" referred
to in the Note Purchase Agreement.

          The amount and kind of securities obtainable pursuant to the rights
granted hereunder and the Exercise Price for such securities are subject to
adjustment pursuant to the provisions contained in this Warrant.

          For income tax purposes, the fair market value of this Warrant on the
date hereof is an amount equal to the product of is (i) $0.21 MULTIPLIED BY (b)
the Warrant Share Amount.

          Except as defined in SECTION 5 or unless otherwise indicated herein,
capitalized terms used in this Warrant have the meanings ascribed to them in the
Note Purchase Agreement.

          This Warrant is subject to the following provisions:

          Section 1.     EXERCISE OF WARRANT.

          1A.     EXERCISE PERIOD. The Registered Holder may exercise, in whole
or in part (but not as to a fractional share of Common Stock), the purchase
rights represented by this Warrant at any time and from time to time after the
Date of Issuance until and including the third anniversary of the Date of
Issuance (the "EXERCISE PERIOD"). The Company shall give the Registered Holder
written notice of the expiration of the rights hereunder at least thirty (30)
days but not more than ninety (90) days prior to the end of the Exercise Period.

          1B.     EXERCISE PROCEDURE.

          (i)     This Warrant shall be deemed to have been exercised when the
Company has received all of the following items (the "EXERCISE TIME"):

          (a)     a completed Exercise Agreement, substantially in the form of
     EXHIBIT A attached here, executed by the Person exercising all or part of
     the purchase rights represented by this Warrant (the "PURCHASER");

          (b)     this Warrant;

          (c)     if this Warrant is not registered in the name of the
     Purchaser, an Assignment Agreement or Assignments Agreements, substantially
     in the form set forth as EXHIBIT B attached hereto, evidencing the
     assignment of this Warrant to the Purchaser, in which case the Registered
     Holder shall have complied with the provisions set forth in SECTION 7 of
     this Warrant; and

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          (d)     either (1) a check payable to the Company in an amount equal
     to the product of the Exercise Price multiplied by the number of shares of
     Common Stock being purchased upon such exercise (the "AGGREGATE EXERCISE
     PRICE"), (2) the surrender to the Company of VitalStream Securities having
     a Market Price equal to the Aggregate Exercise Price of the Common Stock
     being purchased upon such exercise (provided that for purposes of this
     SECTION 1B(i)(d), the Market Price of any note or other Debt Security or
     any Preferred Stock shall be deemed to be equal to the aggregate
     outstanding principal amount or liquidation value thereof plus all accrued
     and unpaid interest thereon or accrued or declared and unpaid dividends
     thereon) or (3) a written notice to the Company that the Purchaser is
     exercising the Warrant (or a portion thereof) by authorizing the Company to
     withhold from issuance a number of shares of Common Stock issuable upon
     such exercise of the Warrant which when multiplied by the Market Price of
     the Common Stock is equal to the Aggregate Exercise Price (and such
     withheld shares shall no longer be issuable under this Warrant).

          (ii)    Certificates for shares of Common Stock purchased upon
exercise of this Warrant shall be delivered by the Company to the Purchaser
within five (5) business days after the date of the Exercise Time. Unless this
Warrant has expired or all of the purchase rights represented hereby have been
exercised, the Company shall prepare a new Warrant, substantially identical
hereto, representing the rights formerly represented by this Warrant which have
not expired or been exercised and shall within such five (5) business day
period, deliver such new Warrant to the Person designated for delivery in the
Exercise Agreement.

          (iii)   The Common Stock issuable upon the exercise of this Warrant
shall be deemed to have been issued to the Purchaser at the Exercise Time, and
the Purchaser shall be deemed for all purposes to have become the record holder
of such Common Stock at the Exercise Time.

          (iv)    The issuance of certificates for shares of Common Stock upon
exercise of this Warrant shall be made without charge to the Registered Holder
or the Purchaser for any issuance tax in respect thereof or other cost incurred
by the Company in connection with such exercise and the related issuance of
shares of Common Stock. Each share of Common Stock issuable upon exercise of
this Warrant shall upon payment of the Exercise Price therefor, be fully paid
and non-assessable and free from all liens and charges with respect to the
issuance thereof.

          (v)     The Company shall not close its books against the transfer of
this Warrant or of any share of Common Stock issued or issuable upon the
exercise of this Warrant in any manner which interferes with the timely exercise
of this Warrant. The Company shall from time to time take all such action as may
be necessary to assure that the par value per share of the unissued Common Stock
acquirable upon exercise of this Warrant is at all times equal to or less than
the Exercise Price then in effect.

          (vi)    The Company shall assist and cooperate with any Registered
Holder or Purchaser required to make any governmental filings or obtain any
governmental approvals prior to or in connection with any exercise of this
Warrant (including, without limitation, making any filings required to be made
by the Company).

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          (vii)   Notwithstanding any other provision hereof, if an exercise of
all or any portion of this Warrant is to be made in connection with a registered
public offering, the sale of the Company or any other transaction or any other
event, the exercise of any portion of this Warrant may, at the election of the
Holder hereof, be conditioned upon the consummation of the public offering or
sale of the Company in which case such exercise shall not be deemed to be
effective until the consummation of such transaction or such event.

          (viii)  The Company shall at all times reserve and keep available out
of its authorized but unissued shares of Common Stock solely for the purpose of
issuance upon the exercise of the Warrants, such number of shares of Common
Stock issuable upon the exercise of all outstanding Warrants. All shares of
Common Stock which are so issuable shall, when issued, be duly and validly
issued, fully paid and non-assessable and free from all taxes, liens and
charges. The Company shall take all such actions as may be necessary to assure
that all such shares of Common Stock may be so issued without violation of any
applicable law or governmental regulation or any requirements of any domestic
securities exchange upon which shares of Common Stock may be listed (except for
official notice of issuance which shall be immediately delivered by the Company
upon each such issuance). The Company shall not take any action which would
cause the number of authorized but unissued shares of Common Stock to be less
than the number of such shares required to be reserved hereunder for issuance
upon exercise of the Warrants.

          1C.     EXERCISE AGREEMENT. Upon any exercise of this Warrant, the
Exercise Agreement shall be substantially in the form set forth as EXHIBIT A
attached hereto, except that if the shares of Common Stock are not to be issued
in the name of the Person in whose name this Warrant is registered, the Exercise
Agreement shall also state the name of the Person to whom the certificates for
the shares of Common Stock are to be issued, and if the number of shares of
Common Stock to be issued does not include all the shares of Common Stock
purchasable hereunder, it shall also state the name of the Person to whom a new
Warrant for the unexercised portion of the rights hereunder is to be delivered.
Such Exercise Agreement shall be dated the actual date of execution thereof.

          1D.     FRACTIONAL SHARES. If a fractional share of Common Stock
would, but for the provisions of SECTION 1A of this Warrant, be issuable upon
exercise of the rights represented by this Warrant, the Company shall, within
five (5) business days after the date of the Exercise Time, deliver to the
Purchaser a check payable to the Purchaser in lieu of such fractional share in
an amount equal to the difference between Market Price of such fractional share
as of the date of the Exercise Time and the Exercise Price of such fractional
share.

          Section 2.     ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES. In
order to prevent dilution of the rights granted under this Warrant, the Exercise
Price shall be subject to adjustment from time to time as provided in this
SECTION 2, and the number of shares of Common Stock obtainable upon exercise of
this Warrant shall be subject to adjustment from time to time as provided in
this SECTION 2.

          2A.     ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES UPON
ISSUANCE OF COMMON STOCK.

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          (i)     If and whenever on or after the Subsequent Closing Date (or,
if the Subsequent Closing is not consummated, the Initial Closing Date), the
Company issues or sells, or in accordance with SECTION 2B of this Warrant is
deemed to have issued or sold, any shares of Common Stock for a consideration
per share less than the Market Price of the Common Stock determined as of the
date of such issuance or sale, then immediately upon such issuance or sale the
Exercise Price shall be reduced to the Exercise Price determined by multiplying
the Exercise Price in effect immediately prior to such issue or sale by a
fraction, the numerator of which shall be the sum of (a) the number of shares of
Common Stock Deemed Outstanding immediately prior to such issue or sale
multiplied by the Market Price of the Common Stock determined as of the date of
such issuance of sale, plus (b) the consideration, if any, received by the
Company upon such issue or sale, and the denominator of which shall be the
product derived by multiplying the Market Price of the Common Stock by the
number of shares of Common Stock Deemed Outstanding immediately after such issue
or sale.

          (ii)    Upon each such adjustment of the Exercise Price hereunder, the
number of shares of Common Stock acquirable upon exercise of this Warrant shall
be adjusted to the number of shares determined by multiplying the Exercise Price
in effect immediately prior to such adjustment by the number of shares of Common
Stock acquirable upon exercise of this Warrant immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment.

          (iii)   Notwithstanding the foregoing, there shall be no adjustment to
the Exercise Price or the number of shares of Common Stock obtainable upon
exercise of this Warrant with respect any sale or issuance (or in accordance
with SECTION 2B any deemed issuance or sale) of shares of its Common Stock: (a)
which are included in the calculation of the number of shares of Fully Diluted
Outstanding Common Stock, (b) upon issuance of any Notes pursuant to the Note
Purchase Agreement, (c) upon issuance of any Warrants pursuant to the Note
Purchase Agreement, (d) upon conversion of any Notes, (e) upon exercise of any
Warrants, (f) upon exercise of any Options or conversion of any Convertible
Securities outstanding on the Subsequent Closing Date (or, if the Subsequent
Closing is not consummated, the Initial Closing Date), (g) to directors or
employees of, or consultants to, the Company and its Subsidiaries pursuant to
stock option plans and stock ownership plans approved by the Company's board of
directors (including any shares of its Common Stock issued or issuable upon
exercise of Options granted pursuant to such plans), up to an aggregate of
8,000,000 shares of Common Stock (including any shares of its Common Stock
issued (or in accordance with SECTION 2B of this Warrant is deemed to have
issued or sold) pursuant to such plans before, on or after the Subsequent
Closing Date (or, if the Subsequent Closing is not consummated, the Initial
Closing Date)) (as such number of shares is proportionately adjusted for
subsequent stock splits, combinations and dividends affecting the Common Stock),
(h) as a dividend or other distribution on the outstanding shares of its Common
Stock (provided such dividend or other distribution causes an adjustment to the
Conversion Price pursuant to SECTION 2C of this Warrant), (i) in connection with
a stock split or subdivision of its outstanding Common Stock (provided such
stock split or subdivision causes an adjustment to the Conversion Price pursuant
to SECTION 2C of this Warrant) or (j) in connection with equipment lease
financing transactions, real estate leasing transactions, strategic partnering
arrangements and other similar transactions provided such issuances are (1)
approved by the Company's board of directors and (2) primarily for purposes

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other than an Equity Securities or Debt Securities financing (including any
shares of its Common Stock issued or issuable upon exercise of Options or
conversion of Convertible Securities granted in connection therewith).

          2B.     EFFECT ON EXERCISE PRICE OF CERTAIN EVENTS. For purposes of
determining the adjusted Exercise Price under SECTION 2A of this Warrant, the
following shall be applicable:

          (i)     ISSUANCE OF RIGHTS OR OPTIONS. If the Company in any manner
grants or sells any Options and the price per share for which Common Stock is
issuable upon the exercise of such Options, or upon conversion or exchange of
any Convertible Securities issuable upon exercise of such Options, is less than
the Market Price of the Common Stock as of the date of the granting or sale of
such Options, then the total maximum number of shares of Common Stock issuable
upon the exercise of such Options, or upon conversion or exchange of the total
maximum amount of such Convertible Securities issuable upon the exercise of such
Options, shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the granting or sale of such Options for such price
per share. For purposes of this SECTION 2B(i), the "price per share for which
Common Stock is issuable upon exercise of such Options or upon conversion or
exchange of such Convertible Securities" is determined by dividing (a) the total
amount, if any, received or receivable by the Company as consideration for the
granting or sale of such Options, plus the minimum aggregate amount of
additional consideration payable to the Company upon the exercise of all such
Options, plus in the case of such Options which relate to Convertible
Securities, the minimum aggregate amount of additional consideration, if any,
payable to the Company upon the issuance or sale of such Convertible Securities
and the conversion or exchange thereof, by (b) the total maximum number of
shares of Common Stock issuable upon exercise of such Options or upon the
conversion or exchange of all such Convertible Securities issuable upon the
exercise of such Options. No further adjustment of the Exercise Price shall be
made upon the actual issuance of such Common Stock or of such Convertible
Securities upon the exercise of such Options or upon the actual issuance of such
Common Stock upon conversion or exchange of such Convertible Securities.

          (ii)    ISSUANCE OF CONVERTIBLE SECURITIES. If the Company in any
manner issues or sells any Convertible Securities and the price per share for
which Common Stock is issuable upon conversion or exchange thereof is less than
the Market Price of the Common Stock as of the date of such issuance or sale,
then the maximum number of shares of Common Stock issuable upon conversion or
exchange of such Convertible Securities shall be deemed to be outstanding and to
have been issued and sold by the Company at the time of the issuance or sale of
such Convertible Securities for such price per share. For the purposes of this
SECTION 2B(ii), the "price per share for which Common Stock is issuable upon
conversion or exchange thereof" is determined by dividing (a) the total amount
received or receivable by the Company as consideration for the issuance or sale
of such Convertible Securities, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the conversion or exchange
thereof, by (b) the total maximum number of shares of Common Stock issuable upon
the conversion or exchange of all such Convertible Securities. No further
adjustment of the Exercise Price shall be made upon the actual issuance of such
Common Stock upon conversion or exchange of such Convertible Securities, and if
any such issuance or sale of such Convertible Securities is made upon exercise
of any Options for which adjustments of the

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Exercise Price had been or are to be made pursuant to other provisions of this
SECTION 2B, no further adjustment of the Exercise Price shall be made by reason
of such issuance or sale.

          (iii)   CHANGE IN OPTION PRICE OR CONVERSION RATE. If the purchase
price provided for in any Options, the additional consideration, if any, payable
upon the issuance, conversion or exchange of any Convertible Securities, or the
rate at which any Convertible Securities are convertible into or exchangeable
for Common Stock changes at any time, the Exercise Price in effect at the time
of such change shall be adjusted immediately to the Exercise Price which would
have been in effect at such time had such Options or Convertible Securities
still outstanding provided for such changed purchase price, additional
consideration or changed conversion rate, as the case may be, at the time
initially granted, issued or sold and the number of shares of Common Stock
issuable hereunder shall be correspondingly adjusted provided that if such
adjustment would result in an increase of the Exercise Price then in effect,
such adjustment shall not be effective until 30 days after written notice
thereof has been given by the Company to all Holders of the Warrants. For
purposes of this SECTION 2B, if the terms of any Option or Convertible Security
which was outstanding as of Subsequent Closing Date (or, if the Subsequent
Closing is not consummated, the Initial Closing Date) are changed in the manner
described in the immediately preceding sentence, then such Option or Convertible
Security and the Common Stock deemed issuable upon exercise, conversion or
exchange thereof shall be deemed to have been issued as of the date of such
change; provided that no such change shall at any time cause the Exercise Price
hereunder to be increased.

          (iv)    CALCULATION OF CONSIDERATION RECEIVED. If any Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, the consideration received therefor shall be deemed to
be the net amount received by the Company therefor. In case any Common Stock,
Options or Convertible Securities are issued or sold for a consideration other
than cash, the amount of the consideration other than cash received by the
Company shall be the fair value of such consideration, except where such
consideration consists of securities, in which case the amount of consideration
received by the Company shall be the Market Price thereof as of the date of
receipt. In case any Common Stock, Options or Convertible Securities are issued
to the owners of the non-surviving entity in connection with any merger in which
the Company is the surviving entity the amount of consideration therefor shall
be deemed to be the fair value of such portion of the net assets and business of
the non-surviving entity as is attributable to such Common Stock, Options or
Convertible Securities, as the case may be. The fair value of any consideration
other than cash or securities shall be determined jointly by the Company and the
Registered Holders of Warrants representing a majority of the shares of Common
Stock obtainable upon exercise of such Warrants. If such parties are unable to
reach agreement within a reasonable period of time, such fair value shall be
determined by an appraiser jointly selected by the Company and the Registered
Holders of Warrants representing a majority of the shares of Common Stock
obtainable upon exercise of such Warrants. The determination of such appraiser
shall be final and binding on the Company and the Registered Holders of the
Warrants, and the fees and expenses of such appraiser shall be paid by the
Company.

          (v)     INTEGRATED TRANSACTIONS. In case any Option is issued in
connection with the issuance or sale of other securities of the Company,
together comprising one integrated

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transaction in which no specific consideration is allocated to such Options by
the parties thereto, the Options shall be deemed to have been issued without
consideration.

          (vi)    TREASURY SHARES. The number of shares of Common Stock
outstanding at any given time does not include shares owned or held by or for
the account of the Company or any Subsidiary, and the disposition of any shares
so owned or held shall be considered an issuance or sale of Common Stock.

          (vii)   RECORD DATE. If the Company takes a record of the holders of
Common Stock for the purpose of entitling them (a) to receive a dividend or
other distribution payable in Common Stock, Options or in Convertible Securities
or (b) to subscribe for or purchase Common Stock, Options or Convertible
Securities, then such record date shall be deemed to be the date of the issuance
or sale of the shares of Common Stock deemed to have been issued or sold upon
the declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase, as the case may
be.

          2C.     SUBDIVISION OR COMBINATION OF COMMON STOCK. If, after the
Subsequent Closing Date (or, if the Subsequent Closing is not consummated, the
Initial Closing Date), the Company at any time subdivides (by any stock split,
stock dividend, recapitalization or otherwise) one or more classes of its
outstanding shares of Common Stock into a greater number of shares, the Exercise
Price in effect immediately prior to such subdivision shall be proportionately
reduced and the number of shares of Common Stock obtainable upon exercise of
this Warrant shall be proportionately increased. If, after the Subsequent
Closing Date (or, if the Subsequent Closing is not consummated, the Initial
Closing Date), the Company at any time combines (by reverse stock split or
otherwise) one or more classes of its outstanding shares of Common Stock into a
smaller number of shares, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased and the number of shares of
Common Stock obtainable upon exercise of this Warrant shall be proportionately
decreased.(1)

          2D.     REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR
SALE. Any recapitalization, reorganization, reclassification, consolidation,
merger, sale of all or substantially all of the Company's assets or other
transaction, in each case which is effected in such a way that the holders of
Common Stock are entitled to receive (either directly or upon subsequent
liquidation) stock, securities or assets with respect to or in exchange for
Common Stock is referred to herein as "ORGANIC CHANGE." Prior to the
consummation of any Organic Change, the Company shall make appropriate provision
(in form and substance satisfactory to the Registered Holders of the Warrants
representing a majority of the Common Stock obtainable upon exercise of all
Warrants then outstanding) to insure that each of the Registered Holders of the
Warrants shall thereafter have the right to acquire and receive, in lieu of or
addition to (as the case may be) the shares of Common Stock immediately
theretofore acquirable and receivable upon the exercise of such Holder's
Warrant, such shares of stock, securities or assets as may be issued or

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     (1)  For example only, (1) if the Company consummates a two for one stock
split of its Common Stock, the Conversion Price shall be reduced to fifty
percent of the Conversion Price theretofore in effect and (2) if the Company
consummates a one for two reverse stock split of its Common Stock, the
Conversion Price shall be increased to two hundred percent of the Conversion
Price theretofore in effect.

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payable with respect to or in exchange for the number of shares of Common Stock
immediately theretofore acquirable and receivable upon exercise of such Holder's
Warrant had such Organic Change not taken place. In any such case, the Company
shall make appropriate provision (in form and substance satisfactory to the
Registered Holders of the Warrants representing a majority of the Common Stock
obtainable upon exercise of all Warrants then outstanding) with respect to such
Holders' rights and interests to insure that the provisions of this SECTION 2
and SECTION 3 and SECTION 4 of this Warrant shall thereafter be applicable to
the Warrants (including, in the case of any such consolidation, merger or sale
in which the successor entity or purchasing entity is other than the Company, an
immediate adjustment of the Exercise Price to the value for the Common Stock
reflected by the terms of such consolidation, merger or sale, and a
corresponding immediate adjustment in the number of shares of Common Stock
acquirable and receivable upon exercise of the Warrants, if the value so
reflected is less than the Exercise Price in effect immediately prior to such
consolidation, merger or sale). The Company shall not effect any such
consolidation, merger or sale, unless prior to the consummation thereof, the
successor entity (if other than the Company) resulting from consolidation or
merger or the entity purchasing such assets assumes by written instrument (in
form and substance satisfactory to the Registered Holders of Warrants
representing a majority of the Common Stock obtainable upon exercise of all of
the Warrants then outstanding), the obligation to deliver to each such holder
such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such Holder may be entitled to acquire.

          2E.     CERTAIN EVENTS. If any event occurs of the type contemplated
by the provisions of this SECTION 2 but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the
Company's board of directors shall make an appropriate adjustment in the
Exercise Price and the number of shares of Common Stock obtainable upon exercise
of this Warrant so as to protect the rights of the Holders of the Warrants;
provided that no such adjustment shall increase the Exercise Price or decrease
the number of shares of Common Stock obtainable as otherwise determined pursuant
to this SECTION 2.

          2F.     NOTICES.

          (i)     Immediately upon any adjustment of the Exercise Price, the
Company shall give written notice thereof to the Registered Holder, setting
forth in reasonable detail and certifying the calculation of such adjustment.

          (ii)    The Company shall give written notice to the Registered Holder
at least twenty (20) business days prior to the date on which the Company closes
its books or takes a record (a) with respect to any dividend or distribution
upon the Common Stock, (b) with respect to any pro rata subscription offer to
holders of Common Stock or (c) for determining rights to vote with respect to
any Organic Change, dissolution or liquidation.

          (iii)   The Company shall also give written notice to the Registered
Holders at least twenty (20) business days prior to the date on which any
Organic Change, dissolution or liquidation shall take place.

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          Section 3.     LIQUIDATING DIVIDENDS. If the Company declares or pays
a dividend upon the Common Stock payable otherwise than in cash out of earnings
or earned surplus (determined in accordance with GAAP, consistently applied)
except for a stock dividend payable in shares of Common Stock (a "LIQUIDATING
DIVIDEND"), then the Company shall pay to the Registered Holder of this Warrant
at the time of payment thereof the Liquidating Dividend which would have been
paid to such Registered Holder on the Common Stock had this Warrant been fully
exercised immediately prior to the date on which a record is taken for such
Liquidating Dividend, or, if no record is taken, the date as of which the record
holders of Common Stock entitled to such dividends are to be determined.

          Section 4.     PURCHASE RIGHTS. If at any time the Company grants,
issues or sells any Options, Convertible Securities or rights to purchase stock,
warrants, securities or other property pro rata to the record holders of any
class of Common Stock (the "PURCHASE RIGHTS"), then the Registered Holder of
this Warrant shall be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which such Holder could have
acquired if such Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant immediately before the date on which a
record is taken for the grant, issuance or sale of such Purchase Rights, or, if
no such record is taken, the date as of which the record holders of Common Stock
are to be determined for the grant, issuance or sale of such Purchase Rights.

          Section 5.     DEFINITIONS. The following terms have meanings set
forth below:

          "ASSET PURCHASE AGREEMENT" means that certain Asset Purchase
Agreement, dated as of November 1, 2002, by and among the Company, VitalStream
Broadcasting Corp., Networks and Hosting, as amended, modified, restated,
superseded or replaced from time to time.

          "ASSET PURCHASE AGREEMENT SHARES" means the aggregate number of shares
of Common Stock issued by the Company pursuant to Section 2(c), Section 2(d),
Section 2(e) and Section 2(f) of the Asset Purchase Agreement.

          "COMMON STOCK" means the common stock, par value $0.001 per share, any
capital stock of any class of the Company (other than any Preferred Equity
Securities (as defined in the Notes) or the Conversion Preferred (as defined in
the Notes)) hereafter authorized which is not limited to a fixed sum or
percentage of par or stated value in respect to the rights of the holders
thereof to participate in dividends or in the distribution of assets upon any
liquidation, dissolution or winding up of the Company.

          "COMMON STOCK DEEMED OUTSTANDING" means, at any given time, the number
of shares of Common Stock actually outstanding at such time, plus the number of
shares of Common Stock deemed to be outstanding pursuant to SECTION 2B(i) and
SECTION 2B(ii) of this Warrant regardless of whether the Options or Convertible
Securities are actually exercisable at such time, but excluding any shares of
Common Stock issuable upon exercise of the Warrants.

                                      -10-
<Page>

          "CONVERTIBLE SECURITIES" means any capital stock or securities
(directly or indirectly) convertible into or exchangeable for Common Stock.

          "DATE OF ISSUANCE" has the meaning set forth in SECTION 8 of this
Warrant.

          "FULLY DILUTED OUTSTANDING COMMON STOCK" means the sum of (a) the
number of shares of Common Stock actually outstanding on the Subsequent Closing
Date (or, if the Subsequent Closing is not consummated, the Initial Closing
Date), as determined immediately prior to the consummation of the transactions
contemplated by the Asset Purchase Agreement, (b) the number of Merger Agreement
Shares, (c) the number of Option Shares and (d) the number of Asset Purchase
Agreement Shares.

          "HOSTING" means Epoch Hosting, Inc., a Delaware corporation.

          "INITIAL CLOSING DATE" has the meaning set forth in the Asset Purchase
Agreement.

          "MARKET PRICE" of any security means (a) if such security is listed on
an exchange, the average closing price of such security on the principal
exchange on which such security is listed, or, if there has been no sale on any
such exchange on any day, the closing price of such security on the principal
exchange on the most recent day on which sales of such security have taken place
on such exchange or (b) if such security is not listed on an exchange but is
quoted through the NASDAQ System, or on the domestic over-the-counter market as
reported by the National Quotation Bureau, the average of the closing sales
prices as reported by the NASDAQ System or the National Quotation Bureau, as
applicable, over a period of 5 days consisting of the day as of which "MARKET
PRICE" is being determined and the 4 consecutive business days prior to such day
on which trades were reported in such security. If at any time such security is
not listed on any securities exchange or quoted in the NASDAQ System or the
over-the-counter market, the "MARKET PRICE" shall be the fair value thereof
determined jointly by the Company and the holders of a majority of the
Underlying Common Stock. If such parties are unable to reach agreement within a
reasonable period of time, such fair value shall be determined by an appraiser
jointly selected by the Company and the holders of a majority of the Underlying
Common Stock. The determination of such appraiser shall be final and binding
upon the parties, and the fees and expenses of such appraiser shall be borne by
the Company.

          "MERGER AGREEMENT" means that certain Merger Agreement, dated as of
February 13, 2002, among the Company, VitalStream, Inc., and VitalStream
Operating Corporation.

          "MERGER AGREEMENT SHARES" means the aggregate number of shares of
Common Stock issued by the Company after the Subsequent Closing Date (or, if the
Subsequent Closing is not consummated, the Initial Closing Date) pursuant to
Section 1.4(b) of the Merger Agreement and each of Section 1.4(c)(iii), Section
1.4(c)(iv), Section 1.4(c)(v) and Section 1.4(c)(vi) (with respect to Section
1.4(c)(vi), such number of shares, as of the date hereof, is expected to be
1,752,982 shares of Common Stock, which shares of Common Stock the Company
expects to issue on or about November 15, 2002) of the Merger Agreement (as each
such section may be amended, modified, restated, superseded or replaced from
time to time).

                                      -11-
<Page>

          "MERGER CLOSING DATE" means April 23, 2002.

          "NETWORKS" means Epoch Networks, Inc., a California corporation.

          "NOTES" has the meaning set forth in the Note Purchase Agreement.

          "OPTIONS" means any rights or options to subscribe for or purchase
Common Stock or Convertible Securities.

          "OPTION SHARES" means the aggregate number of shares of capital stock
issued by the Company pursuant to (a) that certain Option Agreement, dated as of
May 10, 2002, by and between the Company and Steve Smith, as amended, modified,
restated, superseded or replaced from time to time, (b) that certain Option
Agreement, dated as of May 10, 2002, by and between the Company and
David R. Williams, as amended, modified, restated, superseded or replaced from
time to time, (c) that certain Option Agreement, dated as of November 1, 2001,
by and between the Company and Kevin Herzog, as amended, modified, restated,
superseded or replaced from time to time, (d) that certain Option Agreement,
dated as of November 1, 2001, by and between the Company and David R. Williams,
as amended, modified, restated, superseded or replaced from time to time, and
(e) that certain Option Agreement, dated as of November 1, 2001, by and between
the Company and Steve Smith, as amended, modified, restated, superseded or
replaced from time to time.

          "PERSON" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization or any other similar entity or
organization or a governmental entity or any department, agency or political
subdivision thereof.

          "SUBSEQUENT CLOSING" has the meaning set forth in the Asset Purchase
Agreement.

          "SUBSEQUENT CLOSING DATE" has the meaning set forth in the Asset
Purchase Agreement.

          "SUBSIDIARY" means, with respect to any Person, any corporation,
limited liability company, partnership, association or other business entity of
which (a) if a corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (b) if a limited
liability company, partnership, association or other business entity, a majority
of the partnership or other similar ownership interest thereof is at the time
owned or controlled, directly or indirectly, by any Person or one or more
Subsidiaries of that Person or a combination thereof. For purposes hereof, a
Person or Persons shall be deemed to have a majority ownership interest in a
limited liability company, partnership, association or other business entity if
such Person or Persons shall be allocated a majority of limited liability
company, partnership, association or other business entity gains or losses or
shall be or control any managing director or general partner of such limited
liability company, partnership, association or other business entity.

                                      -12-
<Page>

          "UNDERLYING COMMON STOCK" means (a) the Common Stock issued or
issuable upon exercise of the Warrants and (b) any Common Stock issued or
issuable with respect to the securities referred to in clause (a) above by way
of stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. For purposes of
this Warrant, any Person who holds a Warrant shall be deemed to be the holder of
the Underlying Common Stock issuable upon exercise of such Warrant regardless of
any restriction or limitation on the exercise of such Warrant, and, such
Underlying Common Stock shall be deemed to be in existence and such Person shall
be entitled to exercise the rights of a holder of such Underlying Common Stock
hereunder. As to any particular shares of Underlying Common Stock, such shares
shall cease to be Underlying Common Stock when they have been (1) effectively
registered under the Securities Act and disposed of in accordance with the
registration statement covering them, (2) distributed to the public through a
broker, dealer or market maker pursuant to Rule 144 or (3) repurchased by the
Company or any of its subsidiaries.

          "WARRANTS" means this Warrant together with (a) any other "Warrants"
issued pursuant to the Note Purchase Agreement and (b) any Warrants issued upon
the exchange or transfer or in replacement or substitution of all or any portion
of the unexpired and unexercised purchase rights of such Warrants.

          "WARRANT SHARE AMOUNT" means the product of (a) [_____] [INSERT
HOLDER'S PRO RATA SHARE OF WARRANT AS SET FORTH ON ANNEX 1 OF THE PURCHASE
AGREEMENT], (b) 0.18 and (c) the difference between (1) the Fully Diluted
Outstanding Common Stock DIVIDED BY 0.868 MINUS (2) the Fully Diluted
Outstanding Common Stock.

          Other capitalized terms used in this Warrant but not defined herein
shall have the meanings set forth in the Note Purchase Agreement.

          Section 6.     NO VOTING RIGHTS; LIMITATIONS OF LIABILITY. Except as
provided in the Investor Rights Agreement and Note Purchase Agreement, this
Warrant shall not entitle the Holder hereof to any voting rights or other rights
as a stockholder of the Company. No provision hereof, in the absence of
affirmative action by the Registered Holder to purchase Common Stock, and no
enumeration herein of the rights or privileges of the Registered Holder shall
give rise to any liability of such Holder for the Exercise Price of Common Stock
acquirable by exercise hereof or as a stockholder of the Company.

          Section 7.     WARRANT TRANSFERABLE. Subject to the transfer
conditions referred to in the legend endorsed hereon, this Warrant and all
rights hereunder are transferable, in whole or in part, without charge to the
Registered Holder, upon surrender of this Warrant with a properly executed
Assignment (in the form of EXHIBIT B attached hereto) at the principal office of
the Company.

          Section 8.     WARRANT EXCHANGEABLE FOR DIFFERENT DENOMINATIONS. This
Warrant is exchangeable, upon the surrender hereof by the Registered Holder at
the principal office of the Company, for new Warrants of like tenor representing
in the aggregate the purchase rights hereunder, and each of such new Warrants
shall represent such portion of such rights as is

                                      -13-
<Page>

designated by the Registered Holder at the time of such surrender. The date the
Company initially issues this Warrant shall be deemed to be the "DATE OF
ISSUANCE" hereof regardless of the number of times new certificates representing
the unexpired and unexercised rights formerly represented by this Warrant shall
be issued.

          Section 9.     REPLACEMENT. Upon receipt of evidence reasonably
satisfactory to the Company (an affidavit of the Registered Holder shall be
satisfactory) of the ownership and the loss, theft, destruction or mutilation of
any certificate evidencing this Warrant, and in the case of any such loss, theft
or destruction, upon receipt of indemnity reasonably satisfactory to the Company
(provided that if the Holder is a financial institution or other institutional
investor its own agreement shall be satisfactory), or, in the case of any such
mutilation upon surrender of such certificate, the Company shall (at its
expense) execute and deliver in lieu of such certificate a new certificate of
like kind representing the same rights represented by such lost, stolen,
destroyed or mutilated certificate and dated the date of such lost, stolen,
destroyed or mutilated certificate.

          Section 10.    NOTICES. Except as otherwise expressly provided herein,
all notices or other communications to be given or delivered under or by reason
of the provisions of this Warrant shall be in writing and shall be deemed to
have been given when delivered personally to the recipient or when sent by
facsimile followed by delivery by reputable overnight courier service (charges
prepaid), one day after being sent to the recipient by reputable overnight
courier service (charges prepaid) or five days after being mailed to the
recipient by certified or registered mail, return receipt requested and postage
prepaid. Any notice or other communication hereunder may be given by any other
means (including telecopy or electronic mail), but shall not be deemed to have
been duly given unless and until it is actually received by the intended
recipient. Such notices and other communications shall be sent to (i) the
Company, at its principal executive offices and (ii) the Registered Holder of
this Warrant, at such Registered Holder's address as it appears in the records
of the Company (unless otherwise indicated by any such Registered Holder).

          Section 11.    DESCRIPTIVE HEADINGS; INTERPRETATION. Section headings
used in this Warrant are for convenience only and are not to affect the
construction of, or to be taken into consideration in interpreting, this
Warrant. The use of the word "including" or any variation or derivative thereof
in this Warrant is by way of example rather than by limitation.

          Section 12.    BUSINESS DAYS. If any payment is due, or any time
period for giving notice or taking action expires, on a day which is a Saturday,
Sunday or legal holiday in the State of New York or the State of California, the
payment shall be due and payable on, and the time period shall automatically be
extended to, the next business day immediately following such Saturday, Sunday
or legal holiday, and interest shall continue to accrue at the required rate
hereunder until any such payment is made.

          Section 13.    AMENDMENT AND WAIVER. Except as otherwise provided
herein, the provisions of the Warrants may be amended and the Company may take
any action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company has obtained the written consent of the
Registered Holders of Warrants representing a majority of

                                      -14-
<Page>

the shares of Common Stock obtainable upon exercise of the Warrants; provided
that no such action may change the Exercise Price of the Warrants or the number
of shares or class of stock obtainable upon exercise of each Warrant without the
written consent of the Registered Holder of that Warrant subject to such action.

          SECTION 14.    GOVERNING LAW. ALL ISSUES AND QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR
PROVISIONS (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT
WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE
OF NEW YORK. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF
NEW YORK SHALL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS WARRANT, EVEN
THOUGH UNDER THAT JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE
SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

          SECTION 15.    JURISDICTION AND VENUE. ALL JUDICIAL PROCEEDINGS
BROUGHT AGAINST THE COMPANY WITH RESPECT TO THIS WARRANT MAY BE BROUGHT IN ANY
STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN NEW YORK CITY, NEW YORK OR
LOS ANGELES, CALIFORNIA. BY EXECUTING AND DELIVERING THIS WARRANT, THE COMPANY,
ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS, AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS
WARRANT. THE COMPANY HEREBY WAIVES ANY CLAIM THAT NEW YORK CITY, NEW YORK OR LOS
ANGELES, CALIFORNIA IS AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED ON LACK
OF VENUE.

          SECTION 16.    WAIVER OF RIGHT TO JURY TRIAL. THE COMPANY HEREBY
WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY in any
litigation in any court with respect to, in connection with, or arising out of
this Warrant or the validity, protection, interpretation, collection or
enforcement of this Warrant; AND THE COMPANY HEREBY WAIVES, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, THE RIGHT TO INTERPOSE ANY SETOFF OR COUNTERCLAIM
OR CROSS-CLAIM in connection with any such litigation, irrespective of the
nature of such setoff, counterclaim or cross-claim except to the extent that the
failure so to assert any such setoff, counterclaim or cross-claim would
permanently preclude the prosecution of or recovery upon same. THE COMPANY
AGREES THAT THIS SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS WARRANT AND
ACKNOWLEDGES THAT THE HOLDER OF THIS WARRANT WOULD NOT HAVE PURCHASED THIS
WARRANT IF THIS SECTION WERE NOT PART OF THIS WARRANT.

                                      -15-
<Page>

                                    * * * * *

                                      -16-
<Page>

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

                         VITALSTREAM HOLDINGS, INC.

                         By:
                            ----------------------------------------
                            Name:
                            Title:

[Corporate Seal]

Attest:

----------------------------
Name:
Title:

<Page>

                                                                       EXHIBIT A

                               EXERCISE AGREEMENT

To:  Dated:

          The undersigned, pursuant to the provisions set forth in the attached
Warrant (Certificate No. W-____), hereby agrees to subscribe for the purchase of
______ shares of the Common Stock covered by such Warrant and makes payment
herewith in full therefor at the price per share provided by such Warrant.

                                         Signature:
                                                   ----------------------

                                         Address:
                                                  -----------------------

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

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

<Page>

                                                                       EXHIBIT B

                              ASSIGNMENT AGREEMENT

          FOR VALUE RECEIVED, ______________________________ hereby sells,
assigns and transfers all of the rights of the undersigned under the attached
Warrant (Certificate No. W-_____) with respect to the number of shares of the
Common Stock covered thereby set forth below, unto:

                                         Signature:
                                                   ----------------------

                                         Address:
                                                  -----------------------

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

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

                                         Witness:
                                                  -----------------------<Page>

                                                                     EXHIBIT 4.2

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

THE TRANSFER OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT IS SUBJECT TO THE
CONDITIONS SPECIFIED IN THE CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT,
DATED AS OF NOVEMBER 1, 2002, AMONG THE ISSUER OF SUCH SECURITIES (THE
"COMPANY") AND THE OTHER PARTIES REFERRED TO THEREIN, AS AMENDED AND MODIFIED
FROM TIME TO TIME, AND THE COMPANY RESERVES THE RIGHT TO REFUSE THE TRANSFER OF
SUCH SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO SUCH
TRANSFER. A COPY OF SUCH CONDITIONS SHALL BE FURNISHED WITHOUT CHARGE BY THE
COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.

THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE SUBJECT TO A INVESTOR RIGHTS
AGREEMENT, DATED AS OF [____], 2002, AMONG THE COMPANY AND THE STOCKHOLDERS OF
THE COMPANY REFERRED TO THEREIN, AS AMENDED AND MODIFIED FROM TIME TO TIME. A
COPY OF SUCH INVESTOR RIGHTS AGREEMENT SHALL BE FURNISHED WITHOUT CHARGE BY THE
COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.

                           VITALSTREAM HOLDINGS, INC.

                           CONVERTIBLE PROMISSORY NOTE

DATE OF ISSUANCE:  [_____], 2002                     PRINCIPAL AMOUNT:  $[_____]

          VitalStream Holdings, Inc., a Nevada corporation (the "COMPANY"),
hereby promises to pay to the order of [_____] (the "HOLDER"), or its registered
assigns, the principal amount of $[_____] together with interest thereon
calculated from the date hereof on or before the earlier to occur of (a) the
later to occur of (i) [_____], 2005 [INSERT THREE-YEAR ANNIVERSARY OF INITIAL
CLOSING DATE] and (ii) the three-year anniversary of the Subsequent Closing Date
and (b) the consummation of the sale of all or substantially all of the

<Page>

assets of the Company and its Subsidiaries  (the "MATURITY  DATE"),  subject to,
and in accordance with, the provisions of this Note.

          This Note was issued pursuant to a Convertible Note and Warrant
Purchase Agreement, dated as of November 1, 2002 (as amended and modified from
time to time, the "NOTE PURCHASE AGREEMENT"), by and among the Company and the
other parties referred to therein, and this Note is one of the "Convertible
Notes" referred to in the Note Purchase Agreement.

          The obligations of the Company under this Convertible Note are
guaranteed by certain Subsidiaries of the Company pursuant to a Guaranty, dated
as of [_____], 2002 [INSERT INITIAL CLOSING DATE (OR, IF THE INITIAL CLOSING IS
NOT CONSUMMATED, THE SUBSEQUENT CLOSING DATE)] (as amended and modified from
time to time, the "GUARANTY"), by and among the Company, and each Subsidiary and
reference is made to such Guaranty for the terms and conditions governing the
guaranty of the obligations of the Company under this Convertible Note.

          Except as defined in SECTION 8 or unless otherwise indicated herein,
capitalized terms used in this Agreement have the meanings ascribed to them in
the Note Purchase Agreement.

          1.      PAYMENT OF INTEREST.

          (a)     GENERALLY. Except as otherwise expressly provided in
SECTION 4(b), interest shall accrue at a rate of ten percent (10%) per annum
(computed on the basis of a 365 or 366 day year, as the case may be, and the
actual number of days elapsed in any year) on the unpaid principal amount of
this Note outstanding from time to time, or (if less) at the highest rate then
permitted under applicable law. The Company shall pay to the Holder of this Note
all accrued interest on the last day of each of March, June, September and
December, beginning on December 31, 2002. Interest shall accrue on any principal
payment due under this Note and, to the extent permitted by applicable law, on
any interest which has not been paid on the date on which it is due and payable
until such time as payment therefor is actually delivered to the Holder of this
Note. Any accrued interest which for any reason has not theretofore been paid,
shall be paid in full on the date on which the final principal payment on this
Note is made.

          2.      PAYMENT OF PRINCIPAL.

          (a)     SCHEDULED PAYMENT. The Company shall pay the principal amount
of $[_____] (or such lesser principal amount then outstanding) to the Holder of
this Note on the Maturity Date, together with all accrued and unpaid interest on
the principal amount being repaid.

          (b)     PREPAYMENT.

          (i)     GENERAL. The Notes are not prepayable except as expressly
provided in this SECTION 2(b). At any time following the one-year anniversary of
the Subsequent Closing Date (or, if the Subsequent Closing is not consummated,
the Initial Closing Date), the Company

                                       -2-
<Page>

may prepay (the "PREPAYMENT") all, but not less than all, of the outstanding
principal amount of the Notes outstanding on the Prepayment Date (as defined
below) together with all accrued and unpaid interest on such outstanding
principal amount for an amount equal to the aggregate Prepayment Price of such
Notes in accordance with, and pursuant to, the provisions of this SECTION 2(b).

          (ii)    PREPAYMENT NOTICE AND OFFICER'S CERTIFICATE. If the Company
elects to make the Prepayment, the Company shall deliver to each Holder of a
Note at least forty-five (45) days prior to the date (the "PREPAYMENT DATE") on
which the Prepayment is to be consummated (A) a written notice (a "PREPAYMENT
NOTICE") of such election and (B) an Officer's Certificate, dated as of the date
of the Prepayment Notice, stating that, as of such date, (1) the Company's
Indebtedness to EBITDA Ratio that is less than or equal to 2 and (2) the
Company's Current Ratio is greater than or equal to 1.5. The Prepayment Notice
shall set forth (x) the Prepayment Date, (y) instructions regarding submission
of wiring instructions by the Holder and tender of the Note(s) and (z) any other
information the Company deems necessary or expedient in order to facilitate
closing of the prepayment. Upon the delivery of the Prepayment Notice, the
Company shall be obligated to purchase from each Holder of a Note outstanding on
the Prepayment Date such Note at the Prepayment Price of such Note in accordance
with, and pursuant to, the provisions of this SECTION 2(b).

          (iii)   CLOSING OF THE PREPAYMENT. If the Company has elected to make
the Prepayment pursuant to this SECTION 2(b), subject to SECTION 2(b)(iv) of
this Note, the closing (the "PREPAYMENT CLOSING") of the Prepayment shall take
place at the principal executive offices of the Company commencing at 9:00 a.m.
local time on the Prepayment Date. At the Prepayment Closing, each Holder of a
Note then outstanding shall deliver to the Company the Note or Notes held by
such Holder, upon payment by the Company of the Prepayment Price of such Note or
Notes to such Holder by a cashier's or certified check, or by wire transfer of
immediately available funds to the such Holder. Any Prepayment of a Note shall
not be deemed to have been effected until the Holder of such Note has received
the Prepayment Price of such Note in accordance with this SECTION 2(b).

          (iv)    CONDITIONS PRECEDENT TO PREPAYMENT. If the Company has elected
to make the Prepayment pursuant to this SECTION 2(b), the obligation of each
Holder of a Note to deliver the Note(s) then held by such Holder to the Company
at the Prepayment Closing shall be subject to the fulfillment at or prior to the
Prepayment Closing of each of the following conditions, any and all of which may
be waived in whole or in part in writing by such Holder to the extent permitted
by applicable law:

                  (A)    The Company shall have duly adopted, executed and filed
     with the Secretary of State of Nevada the Certificate of Designation which
     shall set forth the powers, preferences and rights establishing the terms
     and the relative rights and preferences of the Conversion Preferred and the
     Company shall not have adopted or filed any other document designating
     terms, relative rights or preferences of the Conversion Preferred. The
     Certificate of Designation shall be in full force and effect as of the
     Prepayment Date under the laws of the State of Nevada and shall not have
     been amended or modified.

                                       -3-
<Page>

                  (B)    As of the Prepayment Date, (1) the Company's
     Indebtedness to EBITDA Ratio shall be less than or equal to 2 and (2) the
     Company's Current Ratio shall be greater than or equal to 1.5 and the
     Company shall have delivered to each Holder an Officer's Certificate, dated
     as of the date of the Prepayment Date, to that effect.

                  (C)    The Company shall have tendered at the Prepayment
     Closing the Prepayment Price of all of the Notes then outstanding
     (including the Note or Notes then held by such Holder).

          (v)     OPTIONAL CONVERSION IN LIEU OF PREPAYMENT. Notwithstanding the
Company's right of Prepayment set forth in this SECTION 2(b), following the
receipt of a Prepayment Notice by the Holder of a Note such Holder shall have
the right to exercise its right to convert all or any portion of the outstanding
principal amount of this Note (plus, at the option of the Holder, any accrued
and unpaid interest on the principal amount converted) pursuant to, and in
accordance with, the provisions of SECTION 5 of this Note at any time on or
before the day immediately prior to the date (the "FINAL PREPAYMENT CONVERSION
DATE") which is 3 days immediately prior to the Prepayment Date. The principal
amount outstanding under this Note not converted prior to the Final Prepayment
Conversion Date pursuant to, and in accordance with, the provisions of SECTION 5
of this Note shall be subject to Prepayment on the Prepayment Date.
Notwithstanding the foregoing, if the Company does not consummate the Prepayment
on the Prepayment Date in accordance with the terms of SECTION 2(b) of this
Note, the Holder shall have the right to exercise its right to convert all or
any portion of the outstanding principal amount of this Note (plus, at the
option of the Holder, any accrued and unpaid interest on the principal amount
converted) pursuant to, and in accordance with, the provisions of SECTION 5 of
this Note at any time after the Prepayment Date.

          (vi)    EXPENSES. If the Company has elected to make the Prepayment
pursuant to this SECTION 2(b), the Company shall pay, and hold the Holders
harmless against, the reasonable fees and expenses incurred by the Holders in
connection with their determination whether to convert the Notes or accept the
Prepayment Price for such Notes, which determination shall include such Holders'
due diligence review of the Company and its Subsidiaries and the reasonable fees
of one counsel selected by the Holders of a majority of the outstanding
principal amount of the Notes; provided, however, the Company shall not be
required to pay in excess of $10,000 pursuant to this SECTION 2(b)(vi). The
Company shall reimburse the Holders of the Notes the fees and expenses described
in this SECTION 2(b)(vi) on the Prepayment Date (regardless of whether any Notes
are then outstanding on the Prepayment Date).

          3.      PRO RATA PAYMENT. All payments (whether for principal,
interest or otherwise) to the Holder of this Note, the Holders of any other
Notes issued pursuant to the Note Purchase Agreement and the Holders of any
other Notes issued upon the exchange or transfer of any portion of the
outstanding principal amount of such Notes shall be made pro rata among such
Holders based upon the aggregate unpaid or unconverted principal amount of the
Note(s) held by each such Holder. If any Holder of a Note obtains any payment
(whether voluntary, involuntary or otherwise) of principal, interest or other
amount with respect to any Note in excess of such Holder's pro rata share of
such payments obtained by all Holders of the Notes (other than as

                                       -4-
<Page>

expressly provided herein), by acceptance of a Note each such Holder agrees to
purchase from the other Holders of the Notes a participation in the Notes held
by them as is necessary to cause such Holders to share the excess payment
ratably among each of them as provided in this SECTION 3.

          4.      EVENTS OF DEFAULT.

          (a)     DEFINITION. For purposes of this Note, an "EVENT OF DEFAULT"
shall be deemed to have occurred if:

          (i)     the Closing (as defined in the Asset Purchase Agreement) under
the Asset Purchase Agreement does not occur by December 15, 2002, due solely to
the failure of the Company to satisfy one or more of the conditions set forth in
Section 7(b) of the Asset Purchase Agreement;

          (ii)    the Company does not consummate the Prepayment on the
Prepayment Date in accordance with the terms of SECTION 2(b) of this Note;

          (iii)   the Company does not pay when due and payable (whether at
maturity or otherwise) the full amount of interest then accrued on this Note or
the full amount of the outstanding principal amount of this Note and such amount
remains unpaid for five (5) business days after notice to the Company by any
Holder of a Note;

          (iv)    the Company does not to perform or observe any other material
covenant of the Company contained in this Note, or any other Transaction
Agreement and such failure continues for a period of thirty (30) days after
notice to the Company by any Holder of Notes;

          (v)     any representation, warranty or information contained in the
Note Purchase Agreement or any of the other Transaction Agreements or required
to be furnished to the Holder of this Note pursuant to the Note Purchase
Agreement or any of the other Transaction Agreements, or any writing required to
be furnished by the Company to the Holder of this Notes, is false or misleading
in any material respect on the date made or furnished (for purposes of this
SECTION 2(b)(v), any representation, warranty or information that is false or
misleading and results in an aggregate amount of Liabilities to the Company and
the Company's Subsidiaries or diminution in value of their assets or securities
(when compared with their value had such representation, warranty or information
not be false or misleading) of more than $100,000 shall be deemed to be false or
misleading in any material respect);

          (vi)    the Company or any of its Subsidiaries makes an assignment for
the benefit of creditors or admits in writing its inability to pay its debts
generally as they become due; or an order, judgment or decree is entered
adjudicating the Company or such Subsidiary bankrupt or insolvent; or any order
for relief with respect to the Company or such Subsidiary is entered under any
bankruptcy reorganization, arrangement, insolvency, readjustment of debt,
dissolution or liquidation law of any jurisdiction (a "BANKRUPTCY LAW"); or the
Company or such Subsidiary petitions or applies to any tribunal for the
appointment of a custodian, trustee, receiver or liquidator of the Company or
such Subsidiary, or of any substantial part of the assets

                                       -5-
<Page>

of the Company or such Subsidiary, or commences any proceeding relating to the
Company or such Subsidiary under any Bankruptcy Law; or any such petition or
application is filed, or any such proceeding is commenced, against the Company
or such Subsidiary and either (A) the Company or any such Subsidiary by any act
indicates its approval thereof, consent thereto or acquiescence therein or (B)
such petition, application or proceeding is not dismissed within 20 days;

          (vii)   a judgment in excess of $100,000 is rendered against the
Company or any Subsidiary and, within ninety (90) days after entry thereof, such
judgment is not discharged in full or execution thereof stayed pending appeal,
or within sixty (60) days after the expiration of any such stay, such judgment
is not discharged in full; or

          (viii)  the Company or any Subsidiary defaults in the performance of
any obligation if the effect of such default is to cause an amount exceeding
$100,000 to become due prior to its stated maturity or to permit the holder or
holders of such obligation to cause an amount exceeding $100,000 to become due
prior to its stated maturity.

The foregoing shall constitute Events of Default whatever the reason or cause
for any such Event of Default and whether it is voluntary or involuntary or is
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body.

          (b)     CONSEQUENCES OF EVENTS OF DEFAULT.

          (i)     If any Event of Default has occurred and is continuing, the
interest rate on this Note shall increase immediately by an increment of two
percent (2%) (i.e., 200 basis points) to the extent permitted by applicable law.
Thereafter, until such time as no Event of Default exists, the interest rate on
this Note shall increase automatically at the end of each succeeding 30-day
period by an additional increment of two percent (2%) (i.e., 200 basis points)
to the extent permitted by applicable law, provided, however, that in no event
shall the interest rate on this Note increase pursuant to this SECTION 4(b)(i)
to a rate in excess of sixteen percent (16%) (i.e., 1600 basis points). Any
increase of the interest rate on this Note resulting from the operation of this
SECTION 4(b)(i) shall terminate as of the close of business on the date on which
no Events of Default exist (subject to subsequent increases pursuant to this
SECTION 4(b)(i)).

          (ii)    If an Event of Default of the type described in SECTION  4(a)
(vi) has occurred,  the principal amount of this Note (together with all accrued
interest  thereon and all other  amounts due and payable with  respect  thereto)
shall become  immediately  due and payable without any action on the part of the
Holder of this Note, and the Company shall immediately pay to the Holder of this
Note all amounts due and payable with respect to this Note.

          (iii)   If any Event of Default (other than an Event of Default of the
type described in SECTION 4(a)(vi)), has occurred and is continuing, the Holders
of a majority of the principal amount of Notes outstanding may declare all or
any portion of the outstanding principal amount of this Note (together with all
accrued interest thereon and all other amounts due and payable with respect
thereto) to be immediately due and payable and may demand immediate

                                       -6-
<Page>

payment of all or any portion of the outstanding principal amount of this Note
(together with all such other amounts then due and payable). If such Holders
demand any such immediate payment, then the Company will immediately pay to the
Holder all amounts due and payable with respect to this Note.

          (iv)    Each Holder shall also have any other rights which such Holder
may have been afforded under any contract or agreement at any time and any other
rights which such Holder may have pursuant to applicable law.

          (v)     The Company hereby waives diligence, presentment, protest and
demand and notice of protest and demand, dishonor and nonpayment of this Note,
and expressly agrees that this Note, or any payment hereunder, may be extended
from time to time and that the Holder of this Note may accept security for this
Note or release security for this Note, all without in any way affecting the
liability of the Company hereunder.

          5.      CONVERSION.

          (a)     RIGHT TO CONVERT; INITIAL CONVERSION PRICE; PREFERRED EQUITY
PRICE.

          (i)     At any time and from time to time prior to the payment of this
Note in full, subject to SECTION 2(b)(v) of this Note, the Holder of this Note
may convert all or any portion of the outstanding principal amount of this Note
(plus, at the option of the Holder, any accrued and unpaid interest on the
principal amount converted) into a number of shares of the Conversion Stock
(excluding any fractional share) determined by dividing (A) the sum of (1) the
principal amount designated by such Holder to be converted PLUS (2) at the
option of the Holder of this Note, any accrued and unpaid interest on the
principal amount converted by (B) the Conversion Price then in effect. The
initial Conversion Price shall be equal to (A) $1,100,000 DIVIDED BY (B) the
difference between (1) the Fully Diluted Outstanding Common Stock DIVIDED BY
0.868 minus (2) the Fully Diluted Outstanding Common Stock.

          (ii)    If, at any time prior to the payment of this Note in full, the
Company issues any Preferred Equity Securities, then, subject to SECTION 2(b)(v)
of this Note, at any time and from time to time prior to the payment of this
Note in full, the Holder of this Note may convert all or any portion of the
outstanding principal amount of this Note (plus, at the option of the Holder,
any accrued and unpaid interest on the principal amount converted) into a number
of shares of any such Preferred Equity Securities (excluding any fractional
share) determined by dividing the principal amount designated by such Holder
(plus, at the option of the Holder, any accrued and unpaid interest on the
principal amount converted) to be converted by the Preferred Equity Price of
such Preferred Equity Securities then in effect. Notwithstanding the foregoing,
if, in connection with the issuance of any Preferred Equity Securities, the
Company also issues other Equity Securities and/or Debt Securities (such other
Equity Securities and/or Debt Securities hereinafter referred to as "OTHER
COMPANY SECURITIES"), the Holder shall, upon conversion pursuant to this SECTION
5(a)(ii), receive, at the same price (subject to adjustment as provided herein)
and on the same terms as the purchasers of such Preferred Equity Securities and
Other Company Securities, the amount of such Preferred Equity Securities and
each Other Company Security issued in connection therewith (such amount of
Preferred Equity Securities

                                       -7-
<Page>

and Other Company Security to be in the same relative proportions as purchased
by such purchasers) that the Holder of this Note would have received had the
Holder of this Note paid an amount equal to the outstanding principal amount of
this Note that the Holder of this Note is converting (plus, at the option of the
Holder, any accrued and unpaid interest on the principal amount to be
converted).

          (iii)   At any time and from time to time after the receipt of a
Prepayment Notice and prior to the Final Prepayment Conversion Date, the Holder
of this Note may convert all or any portion of the outstanding principal amount
of this Note (plus, at the option of the Holder, any accrued and unpaid interest
on the principal amount converted) into a number of shares of Conversion
Preferred (excluding any fractional share) determined by dividing (A) the
product of (1) 1.1 MULTIPLIED BY (2) the sum of (x) the principal amount
designated by such Holder to be converted PLUS (y) at the option of the Holder
of this Note, any accrued and unpaid interest on the principal amount converted
by (B) the Series A Liquidation Value (as defined in the Certificate of
Designation).

          (b)     CONVERSION PROCEDURE.

          (i)     The Holder of this Note may exercise its right to convert all
or any portion of the outstanding principal amount of this Note (plus, at the
option of the Holder, any accrued and unpaid interest on the principal amount
converted) pursuant to SECTION 5(a) by delivering written notice to the Company
setting forth (A) the outstanding principal amount of the Note that the Holder
of this Note desires to convert, (B) the amount, if any, of any accrued and
unpaid interest on such principal amount the Holder of this Note desires to
convert, (C) whether the conversion shall be in accordance with SECTION 5(a)(i),
SECTION 5(a)(ii) or SECTION 5(a)(iii) and (D) with respect to a conversion
pursuant to SECTION 5(a)(ii) only, if the Company has issued more than one class
or series of Preferred Equity Securities, the class or series of Preferred
Equity Securities which the Holder of this Note desires to convert the Note
into. Except as otherwise expressly provided herein, each conversion of this
Note shall be deemed to have been effected as of the close of business on the
date on which this Note has been surrendered for conversion at the principal
office of the Company (which, with respect to a conversion under SECTIONS
2(b)(v) AND 5(a)(iii) shall be the Prepayment Date). At such time as such
conversion has been effected, the rights of the Holder of this Note as such
Holder to the extent of the conversion shall cease, and the Person or Persons in
whose name or names any certificate or certificates for (1) shares of Conversion
Stock are to be issued upon such conversion pursuant to SECTION 5(a)(i), shall
be deemed to have become the holder or holders of record of the shares of
Conversion Stock represented thereby as of the date of such conversion, (2)
shares of Preferred Equity Securities (and, if applicable, the Other Company
Securities) are to be issued upon such conversion pursuant to SECTION 5(a)(ii)
shall be deemed to have become the holder or holders of record of the shares of
Preferred Equity Securities (and, if applicable, the Other Company Securities)
represented thereby as of the first date on which the Company issued such
Preferred Equity Securities (and, if applicable, the Other Company Securities)
or (3) shares of Conversion Preferred are to be issued upon such conversion
pursuant to SECTION 5(a)(iii) shall be deemed to have become the holder or
holders of record of the shares of Conversion Preferred represented thereby as
of the date of such conversion; provided, however, for purposes of rights
relating to

                                       -8-
<Page>

dividends or interest with respect to any Preferred Equity Securities (and, if
applicable, the Other Company Securities) only, such date shall be the date of
such conversion.

          (ii)    Notwithstanding any other provision hereof, if a conversion of
all or any portion of this Note is to be made in connection with a registered
public offering, a sale of the Company or any other transaction or any other
event, the conversion of any portion of this Note may, at the election of the
Holder hereof, be conditioned upon the consummation of the public offering or
the sale of the Company, in which case such conversion shall not be deemed to be
effective until the consummation of such transaction or such event.

          (iii)   As soon as possible after a conversion has been effected (but
in any event within five (5) business days in the case of clause (A) below), the
Company shall deliver to the converting Holder:

                  (A)    a certificate or certificates representing the number
     of shares of Conversion Stock, Preferred Equity Securities (and, if
     applicable, the Other Company Securities) or Conversion Preferred
     (excluding any fractional shares) issuable by reason of such conversion in
     such name or names and such denomination or denominations as the converting
     Holder has specified;

                  (B)    payment in an amount equal to the sum of the amount
     payable under SECTION 5(b)(iv) plus an amount equal to all accrued interest
     with respect to the principal amount converted which has not been paid
     prior thereto or which has not been converted at the election of the
     converting Holder in accordance with the terms hereof; and

                  (C)    a new Note representing any portion of the principal
     amount which was represented by this Note which was not converted.

          (iv)    If any fractional share of Conversion Stock, Preferred Equity
Securities (or, if applicable, Other Company Securities) or Conversion Preferred
would, except for the provisions hereof, be deliverable upon conversion of this
Note, the Company, in lieu of delivering such fractional share, shall pay an
amount equal to the Market Price of such fractional share as of the date of such
conversion.

          (v)     The issuance of certificates for shares of Conversion Stock,
Preferred Equity Securities (and, if applicable, Other Company Securities) or
Conversion Preferred upon conversion of this Note shall be made without charge
to the Holder hereof for any issuance tax in respect thereof or other cost
incurred by the Company in connection with such conversion and the related
issuance of shares of Conversion Stock Preferred Equity Securities (and, if
applicable, Other Company Securities) or Conversion Preferred. Upon conversion
of this Note, the Company shall take all such actions as are necessary in order
to insure that the Conversion Stock, Preferred Equity Securities (and, if
applicable, the Other Company Securities) or Conversion Preferred issuable with
respect to such conversion shall be validly issued, fully paid and
non-assessable and free from all liens and charges with respect to the issuance
thereof.

                                       -9-
<Page>

          (vi)    The Company shall not close its books against the transfer of
Conversion Stock, Preferred Equity Securities (or, if applicable, Other Company
Securities) or Conversion Preferred issued or issuable upon conversion of this
Note in any manner which interferes with the timely conversion of this Note. The
Company shall assist and cooperate with any Holder of this Note required to make
any governmental filings or obtain any governmental approval prior to or in
connection with the conversion of this Note (including, without limitation,
making any filings required to be made by the Company).

          (vii)   The Company shall at all times reserve and keep available out
of its authorized but unissued shares of Conversion Stock, Preferred Equity
Securities (and, if applicable, Other Company Securities) or Conversion
Preferred, solely for the purpose of issuance upon the conversion of the Note,
such number of shares of Conversion Stock, Preferred Equity Securities (and, if
applicable, Other Company Securities) or Conversion Preferred issuable upon the
conversion of all outstanding Notes. All shares of Conversion Stock, Preferred
Equity Securities (and, if applicable, Other Company Securities) or Conversion
Preferred which are so issuable shall, when issued, be duly and validly issued,
fully paid and non-assessable and free from all taxes, liens and charges. The
Company shall take all such actions as may be necessary to assure that all such
shares of Conversion Stock, Preferred Equity Securities (and, if applicable,
Other Company Securities) or Conversion Preferred may be so issued without
violation of any applicable law or governmental regulation or any requirements
of any domestic securities exchange upon which shares of Conversion Stock,
Preferred Equity Securities (and, if applicable, Other Company Securities) or
Conversion Preferred may be listed (except for official notice of issuance which
shall be immediately delivered by the Company upon each such issuance).

          (c)     CONVERSION PRICE.

          (i)     In order to prevent dilution of the conversion rights granted
under SECTION 5(a)(i), the Conversion Price shall be subject to adjustment from
time to time pursuant to this SECTION 5(c).

          (ii)    If and whenever on or after the Subsequent Closing Date (or,
if the Subsequent Closing is not consummated, the Initial Closing Date) the
Company issues or sells, or in accordance with SECTION 5(d) is deemed to have
issued or sold, any shares of Common Stock for a consideration per share less
than the Conversion Price in effect immediately prior to such time, then
immediately upon such issuance or sale the Conversion Price shall be reduced to
the Conversion Price determined by dividing (a) the sum of (1) the product
derived by multiplying the Conversion Price in effect immediately prior to such
issuance or sale times the number of shares of Common Stock Deemed Outstanding
immediately prior to such issuance or sale, plus (2) the consideration, if any,
received by the Company upon such issuance or sale by (b) the number of shares
of Common Stock Deemed Outstanding immediately after such issuance or sale;
provided that no adjustment shall be made in the Conversion Price as a result of
any issuance (or, in accordance with SECTION 5(d) any deemed issuance or sale)
of shares of its Common Stock: (A) which are included in the calculation of the
number of shares of Fully Diluted Outstanding Common Stock, (B) upon issuance of
any Notes pursuant to the Note Purchase Agreement, (C) upon issuance of any
Warrants pursuant to the Note Purchase

                                      -10-
<Page>

Agreement, (D) upon conversion of any Notes, (E) upon exercise of any Warrants,
(F) upon exercise of any Options or conversion of any Convertible Securities
outstanding on the Subsequent Closing Date (or, if the Subsequent Closing is not
consummated, the Initial Closing Date), (G) to directors or employees of, or
consultants to, the Company and its Subsidiaries pursuant to stock option plans
and stock ownership plans approved by the Company's board of directors
(including any shares of its Common Stock issued or issuable upon exercise of
Options granted pursuant to such plans), up to an aggregate of 8,000,000 shares
of Common Stock (including any shares of its Common Stock issued (or, in
accordance with SECTION 5(d) any deemed issuance or sale) pursuant to such plans
before, on or after the Subsequent Closing Date (or, if the Subsequent Closing
is not consummated, the Initial Closing Date)) (as such number of shares is
proportionately adjusted for subsequent stock splits, combinations and dividends
affecting the Common Stock), (H) as a dividend or other distribution on the
outstanding shares of its Common Stock (provided such dividend or other
distribution causes an adjustment to the Conversion Price pursuant to SECTION
5(e)), (I) in connection with a stock split or subdivision of its outstanding
Common Stock (provided such stock split or subdivision causes an adjustment to
the Conversion Price pursuant to SECTION 5(e)) or (J) in connection with
equipment lease financing transactions, real estate leasing transactions,
strategic partnering arrangements and other similar transaction provided such
issuances are (1) approved by the Company's board of directors and (2) primarily
for purposes other than an Equity Securities or Debt Securities financing
(including any shares of its Common Stock issued or issuable upon exercise of
Options or conversion of Convertible Securities granted in connection
therewith).

          (d)     EFFECT ON CONVERSION PRICE OF CERTAIN EVENTS. For purposes of
determining the adjusted Conversion Price under SECTION 5(c), the following
shall be applicable:

          (i)     ISSUANCE OF RIGHTS OR OPTIONS. If the Company in any manner
grants or sells any Options and the price per share for which Common Stock is
issuable upon the exercise of such Options, or upon conversion or exchange of
any Convertible Securities issuable upon exercise of such Options, is less than
the Conversion Price in effect immediately prior to the time of the granting or
sale of such Options, then the total maximum number of shares of Common Stock
issuable upon the exercise of such Options, or upon conversion or exchange of
the total maximum amount of such Convertible Securities issuable upon the
exercise of such Options, shall be deemed to be outstanding and to have been
issued and sold by the Company at the time of the granting or sale of such
Option for such price per share. For purposes of this SECTION 5, the "price per
share for which Common Stock is issuable upon exercise of such Options or upon
conversion or exchange of such Convertible Securities" is determined by dividing
(A) the total amount, if any, received or receivable by the Company as
consideration for the granting or sale of such Options, plus the minimum
aggregate amount of additional consideration payable to the Company upon the
exercise of all such Options, plus in the case of such Options which relate to
Convertible Securities, the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the issuance or sale of such
Convertible Securities and the conversion or exchange thereof, by (B) the total
maximum number of shares of Common Stock issuable upon the exercise of such
Options or upon the conversion or exchange of all such Convertible Securities
issuable upon the exercise of such Options. No further adjustment of the
Conversion Price shall be made upon the actual issuance of such Common Stock or
of such

                                      -11-
<Page>

Convertible Securities upon the exercise of such Options or upon the actual
issuance of such Common Stock upon conversion or exchange of such Convertible
Securities.

          (ii)    ISSUANCE OF CONVERTIBLE SECURITIES. If the Company in any
manner issues or sells any Convertible Securities and the price per share for
which Common Stock is issuable upon conversion or exchange thereof is less than
the Conversion Price in effect immediately prior to the time of such issue or
sale, then the maximum number of shares of Common Stock issuable upon conversion
or exchange of all such Convertible Securities shall be deemed to be outstanding
and to have been issued and sold by the Company at the time of the issuance or
sale of such Convertible Securities for such price per share. For the purposes
of this SECTION 5, the "price per share for which Common Stock is issuable upon
conversion or exchange thereof" is determined by dividing (A) the total amount
received or receivable by the Company as consideration for the issue or sale of
such Convertible Securities, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the conversion or exchange
thereof, by (B) the total maximum number of shares of Common Stock issuable upon
the conversion or exchange of all such Convertible Securities. No adjustment of
the Conversion Price shall be made upon the actual issue of such Common Stock
upon conversion or exchange of such Convertible Securities, and if any such
issue or sale of such Convertible Securities is made upon exercise of any
Options for which adjustments of the Conversion Price had been or are to be made
pursuant to other provisions of this SECTION 5(d), no further adjustment of the
Conversion Price shall be made by reason of such issue or sale.

          (iii)   CHANGE IN OPTION PRICE OR CONVERSION RATE. If the purchase
price provided for in any Option, the additional consideration (if any) payable
upon the issue, conversion or exchange of any Convertible Security, or the rate
at which any Convertible Security is convertible into or exchangeable for Common
Stock changes at any time, the Conversion Price in effect at the time of such
change shall be adjusted immediately to the Conversion Price which would have
been in effect at such time had such Option or Convertible Security originally
provided for such changed purchase price, additional consideration or changed
conversion rate, as the case may be, at the time initially granted, issued or
sold; provided that if such adjustment of the Conversion Price would result in
an increase in the Conversion Price then in effect, such adjustment shall not be
effective until 30 days after written notice thereof has been given to all
Holders of the Notes. For purposes of this SECTION 5(d), if the terms of any
Option or Convertible Security which was outstanding as of the date of issuance
of this Note are changed in the manner described in the immediately preceding
sentence, then such Option or Convertible Security and the Common Stock deemed
issuable upon exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such change; provided that no such change shall at
any time cause the Conversion Price hereunder to be increased.

          (iv)    CALCULATION OF CONSIDERATION RECEIVED. If any Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, the consideration received therefor shall be deemed to
be the net amount received by the Company therefor. In case any Common Stock,
Options or Convertible Securities are issued or sold for a consideration other
than cash, the amount of the consideration other than cash received by the
Company shall be the fair value of such consideration, except where such
consideration consists

                                      -12-
<Page>

of securities, in which case the amount of consideration received by the Company
shall be the Market Price thereof as of the date of receipt. In case any Common
Stock, Options or Convertible Securities are issued to the owners of the
non-surviving entity in connection with any merger in which the Company is the
surviving entity, the amount of consideration therefor shall be deemed to be the
fair value of such portion of the net assets and business of the non-surviving
entity as is attributable to such Common Stock, Options or Convertible
Securities, as the case may be. The fair value of any consideration other than
cash and securities shall be determined jointly by the Company and the Holders
of a majority of the outstanding principal amount of the Notes. If such parties
are unable to reach agreement within a reasonable period of time, such fair
value shall be determined by an appraiser jointly selected by the Company and
the Holders of a majority of the outstanding principal amount of the Notes. The
determination of such appraiser shall be final and binding upon the parties, and
the fees and expenses of such appraiser shall be borne by the Company.

          (v)     INTEGRATED TRANSACTIONS. In case any Option is issued in
connection with the issuance or sale of other securities of the Company,
together comprising one integrated transaction in which no specific
consideration is allocated to such Options by the parties thereto, the Options
shall be deemed to have been issued without consideration.

          (vi)    TREASURY SHARES. The number of shares of Common Stock
outstanding at any given time does not include shares owned or held by or for
the account of the Company or any Subsidiary, and the disposition of any shares
so owned or held shall be considered an issue or sale of Common Stock.

          (vii)   RECORD DATE. If the Company takes a record of the holders of
Common Stock for the purpose of entitling them (A) to receive a dividend or
other distribution payable in Common Stock, Options or in Convertible Securities
or (B) to subscribe for or purchase Common Stock, Options or Convertible
Securities, then such record date shall be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued or sold upon the
declaration of such dividend or the making of such other distribution or the
date of the granting of such right of subscription or purchase, as the case may
be.

          (e)     SUBDIVISION OR COMBINATION. If, after the Subsequent Closing
Date (or, if the Subsequent Closing is not consummated, the Initial Closing
Date), the Company at any time subdivides (by any stock split, stock dividend,
recapitalization or otherwise) one or more classes of its outstanding shares of
Common Stock or Preferred Equity Securities into a greater number of shares,
each of the Conversion Price and the Preferred Equity Price in respect of such
class of Preferred Equity Securities in effect immediately prior to such
subdivision shall be proportionately reduced, and if, after the Subsequent
Closing Date (or, if the Subsequent Closing is not consummated, the Initial
Closing Date), the Company at any time combines (by reverse stock split or
otherwise) one or more classes of its outstanding shares of Common Stock or
Preferred Equity Securities into a smaller number of shares, each of the
Conversion Price and the Preferred Equity Price in respect of such class of
Preferred Equity Securities in effect

                                      -13-
<Page>

immediately prior to such combination shall be proportionately increased.(1) If,
after the Subsequent Closing Date (or, if the Subsequent Closing is not
consummated, the Initial Closing Date), the Company at any time subdivides (by
any stock split, stock dividend or otherwise) one or more classes of its
outstanding shares of Other Company Securities into a greater number of shares,
the purchase price per share of the shares of such Other Company Securities
shall be proportionately reduced and the number of shares of such class of Other
Company Securities which the Holder of this Note would be entitled upon
conversion shall be proportionately increased, and if the Company at any time
combines (by reverse stock split or otherwise) one or more classes of its
outstanding shares of Other Company Securities into a into a smaller number of
shares, the purchase price per share of the shares of such Other Company
Securities shall be proportionately increased and the number of shares of such
class of such Other Company Securities which the Holder of this Note would be
entitled upon conversion shall be proportionately decreased.(2)

          (f)     REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR
SALE. Any recapitalization, reorganization, reclassification, consolidation,
merger, sale of all or substantially all of the Company's assets or other
transaction, which in each case is effected in such a manner that holders of
Common Stock are entitled to receive (either directly or upon subsequent
liquidation) stock, securities or assets with respect to or in exchange for
Common Stock, Conversion Preferred or Preferred Equity Securities (and, if
applicable, Other Company Securities), as the case may be, is referred to herein
as an "ORGANIC CHANGE". Prior to the consummation of any Organic Change, the
Company shall make lawful and adequate provision (in form and substance
satisfactory to the Holders of a majority of the principal amount of the Notes
then outstanding) to insure that each of the Holders of the Notes shall
thereafter have the right to acquire and receive, in lieu of or addition to (as
the case may be) shares of Conversion Stock, Conversion Preferred or Preferred
Equity Securities (and, if applicable, Other Company Securities), as the case
may be, immediately theretofore acquirable and receivable upon the conversion of
such Holder's Note, such shares of stock, securities or assets as may be issued
or payable with respect to or in exchange for the number of shares of Conversion
Stock, Conversion Preferred or Preferred Equity Securities (and, if applicable,
Other Company Securities), as the case may be, immediately theretofore
acquirable and receivable upon conversion of such

----------
     (1)  For example only, (1) if the Company consummates a two for one stock
split of its Common Stock, the Conversion Price or Preferred Equity Price, as
the case may be, shall be reduced to fifty percent of the Conversion Price or
Preferred Equity Price, as the case may be, theretofore in effect and (2) if the
Company consummates a one for two reverse stock split of its Common Stock, the
Conversion Price or Preferred Equity Price, as the case may be, shall be
increased to two hundred percent of the Conversion Price or Preferred Equity
Price, as the case may be, theretofore in effect.

     (2)  For example only, (1) if the Company consummates a two for one stock
split of any of its Other Company Securities, the purchase price per share of
the shares of such Other Company Securities which the Holder of this Note would
be entitled upon conversion shall be reduced by fifty percent and the number of
shares of such Other Company Securities which the Holder of this Note would be
entitled upon conversion shall be increased by two hundred percent and (2) if
the Company consummates a one for two reverse stock split of any of its Other
Company Securities, the purchase price per share of the shares of such Other
Company Securities which the Holder of this Note would be entitled upon
conversion shall be increased by two hundred percent and the number of shares of
such Other Company Securities which the Holder of this Note would be entitled
upon conversion shall be reduced by fifty percent.

                                      -14-
<Page>

Holder's Note had such Organic Change not taken place. In any such case,
appropriate provision (in form and substance satisfactory to the Holders of a
majority of the principal amount of the Notes then outstanding) shall be made
with respect to such Holder's rights and interests to insure that the provisions
of this SECTION 5 and SECTION 6 and SECTION 7 shall thereafter be applicable in
relation to any shares of stock, securities or assets thereafter deliverable
upon the conversion of the Notes (including, in the case of any such
consolidation, merger or sale in which the successor entity or purchasing entity
is other than the Company, an immediate adjustment of the Conversion Price or
Preferred Equity Price, as the case may be, to the value for the Common Stock,
Conversion Preferred or Preferred Equity Securities (and, if applicable, Other
Company Securities), as the case may be, reflected by the terms of such
consolidation, merger or sale, and a corresponding immediate adjustment in the
number of shares of Conversion Stock, Conversion Preferred or Preferred Equity
Securities (and, if applicable, Other Company Securities), as the case may be,
acquirable and receivable upon conversion of the Notes, if the value so
reflected is less than the Conversion Price in effect immediately prior to such
consolidation, merger or sale). The Company shall not effect any such
consolidation, merger or sale, unless prior to the consummation thereof, the
successor entity (if other than the Company) resulting from consolidation or
merger or the entity purchasing such assets assumes by written instrument (in
form reasonably satisfactory to the Holders of a majority of the principal
amount of the Notes then outstanding), the obligation to deliver to each such
Holder such shares of stock, securities or assets as, in accordance with the
foregoing provisions, such Holder may be entitled to acquire.

          (g)     CERTAIN EVENTS. If any event occurs of the type contemplated
by the provisions of this SECTION 5 but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the
Company's board of directors shall make an appropriate adjustment in each of the
Conversion Price and the Preferred Equity Price and/or the quantity of Other
Company Securities issuable upon conversion of this Note so as to protect the
rights of the Holders of the Notes; provided that no such adjustment shall
increase the Conversion Price or Preferred Equity Price as otherwise determined
pursuant to this SECTION 5 or decrease the number of shares of Conversion Stock,
Preferred Equity Securities (and, if applicable, Other Company Securities) or
Conversion Preferred issuable upon conversion of the Notes then outstanding.

          (h)     NOTICES.

          (i)     Immediately upon any adjustment of the Conversion Price or
Preferred Equity Price, the Company shall send written notice thereof to the
Holder of this Note, setting forth in reasonable detail and certifying the
calculation of such adjustment.

          (ii)    The Company shall send written notice to the Holder of this
Note at least twenty (20) days prior to the date on which the Company closes its
books or takes a record (A) with respect to any dividend or distribution upon
the Conversion Stock, any Preferred Equity Securities (and, if applicable, Other
Company Securities) or Conversion Preferred, (B) with respect to any pro rata
subscription offer to holders of Conversion Stock, any Preferred Equity
Securities (and, if applicable, Other Company Securities) or Conversion
Preferred or (C) for determining rights to vote with respect to any Organic
Change, dissolution or liquidation.

                                      -15-
<Page>

          (iii)   The Company shall also give at least twenty (20) days prior
written notice of the date on which any Organic Change, dissolution or
liquidation shall take place.

          6.      LIQUIDATING DIVIDENDS. If the Company declares a dividend upon
the Conversion Stock, any Preferred Equity Securities (and, if applicable, Other
Company Securities) or the Conversion Preferred payable otherwise than in cash
out of earnings or earned surplus (determined in accordance with generally
accepted accounting principles, consistently applied) except for a stock
dividend payable in shares of Common Stock (a "LIQUIDATING DIVIDEND"), then the
Company shall pay to the Holder of this Note at the time of payment thereof the
Liquidating Dividend which would have been paid to the Holder of this Note on,
at the option of the Holder of this Note, the Conversion Stock, Preferred Equity
Securities (and, if applicable, Other Company Securities) or Conversion
Preferred, as the case may be, had this Note been fully converted immediately
prior to the date on which a record is taken for such Liquidating Dividend, or,
if no record is taken, the date as of which the record holders of Common Stock
entitled to such dividends are to be determined.

          7.      PURCHASE RIGHTS. If at any time the Company grants, issues or
sells any Options, Convertible Securities or rights to purchase stock, warrants,
securities or other property pro rata to the record holders of the Conversion
Stock (the "PURCHASE RIGHTS"), then the Holder of this Note shall be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate
Purchase Rights which such Holder could have acquired if such Holder had held
the number of shares of Conversion Stock acquirable upon complete conversion of
this Note immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of the Conversion Stock are to be determined
for the grant, issuance or sale of such Purchase Rights.

          8.      DEFINITIONS. For purposes of this Note, the following
capitalized terms have the following meanings:

          "ASSET PURCHASE AGREEMENT" means that certain Asset Purchase
Agreement, dated as of November 1, 2002, by and among the Company, VitalStream
Broadcasting Corp., Epoch Networks, Inc. and Epoch Hosting, Inc., as amended,
modified, restated, superseded or replaced from time to time.

          "ASSET PURCHASE AGREEMENT SHARES" means the aggregate number of shares
of Common Stock issued by the Company pursuant to Section 2(c), Section 2(d),
Section 2(e) and Section 2(f) of the Asset Purchase Agreement.

          "CASH" means cash and cash equivalents (including marketable
securities and short term Investments).

          "CERTIFICATE OF DESIGNATION" has the meaning ascribed thereto in the
Note Purchase Agreement.

          "COMMON STOCK" means the common stock, par value $0.001 per share, and
any capital stock of any class of the Company (other than any Preferred Equity
Securities or the

                                      -16-
<Page>

Conversion Preferred) hereafter authorized which is not limited to a fixed sum
or percentage of par or stated value in respect to the rights of the holders
thereof to participate in dividends or in the distribution of assets upon any
liquidation, dissolution or winding up of the Company.

          "COMMON STOCK DEEMED OUTSTANDING" means, at any given time, the number
of shares of Common Stock actually outstanding at such time, plus the number of
shares of Common Stock deemed to be outstanding pursuant to SECTION 5(d) of this
Note regardless of whether the Options or Convertible Securities are actually
exercisable at such time, but excluding any shares of Common Stock issuable upon
exercise of the Notes.

          "CONVERSION PREFERRED" means the 2002 Series A Preferred Stock, $0.001
par value, of the Company having the rights and preferences set forth in the
Certificate of Designation.

          "CONVERSION STOCK" means shares of the Company's authorized but
unissued Common Stock; provided that if there is a change such that the
securities issuable upon conversion of the Notes are issued by an entity other
than the Company or there is a change in the class of securities so issuable,
then the term "CONVERSION STOCK" shall mean one share of the security issuable
upon conversion of this Note if such security is issuable in shares, or shall
mean the smallest unit in which such security is issuable if such security is
not issuable in shares.

          "CONVERTIBLE SECURITIES" means any capital stock or securities
(directly or indirectly) convertible into or exchangeable for Common Stock.

          "CURRENT RATIO" means, with respect to the Company as of any date, the
ratio of (a) the aggregate amount of all current assets of the Company and the
Company's Subsidiaries on a consolidated basis as of such date to (b) the
aggregate amount of all current Liabilities of Company and the Company's
Subsidiaries on a consolidated basis as of such date, in each case as determined
(i) in accordance with GAAP applied on a consistent basis in accordance past
practice and (ii) after giving effect to the payment of the aggregate Prepayment
Price for the Notes outstanding as of such date.

          "DEBT SECURITY" means any note, bond, debenture or other instrument or
security evidencing Indebtedness.

          "EBITDA" means, with respect to any period of any Person, (a) the net
income or loss (excluding extraordinary or non-recurring items) of such Person
for such period PLUS (b) the sum of the amount of each of the following for such
Person for such period to the extent deducted in the computation of such net
income or loss: (i) interest expense, (ii) income tax expense, (iii)
depreciation expense and (iv) amortization expense (each item referred to in
clauses (a) and (b) above to be calculated in accordance with GAAP in accordance
with such Person's past practice on a consistent basis, in each case on a
consolidated basis).

          "EQUITY SECURITIES" means (a) any capital stock or other equity
security, (b) any security directly or indirectly convertible into or
exchangeable for any capital stock or other equity security or security
containing any profit participation features, (c) any warrants, options

                                      -17-
<Page>

or other rights directly or indirectly to subscribe for or to purchase any
capital stock, other equity security or security containing any profit
participation features or directly or indirectly to subscribe for or to purchase
any security directly or indirectly convertible into or exchangeable for any
capital stock, other equity security or security containing profit participation
features, or (d) any stock appreciation rights, phantom stock rights or other
similar rights.

          "FULLY DILUTED OUTSTANDING COMMON STOCK" means the sum of (a) the
number of shares of Common Stock actually outstanding on the Subsequent Closing
Date (or, if the Subsequent Closing is not consummated, the Initial Closing
Date), as determined immediately prior to the consummation of the transactions
contemplated by the Asset Purchase Agreement, (b) the number of Merger Agreement
Shares, (c) the number of Option Shares and (d) the number of Asset Purchase
Agreement Shares.

          "GAAP" means United States generally accepted accounting principles as
in affect from time to time on a consistent basis.

          "GUARANTEE" means any guarantee of the payment or performance of any
Indebtedness or other obligation and any other arrangement whereby credit is
extended to one obligor on the basis of any promise of such Person, whether that
promise is expressed in terms of an obligation to pay the Indebtedness of such
obligor, to provide reimbursement, or to purchase an obligation owed by such
obligor, or to purchase goods and services from such obligor pursuant to a
take-or-pay contract, or to maintain the capital, working capital, solvency or
general financial condition of such obligor, whether or not any such arrangement
is listed in the balance sheet of such Person, or referred to in a footnote
thereto, but shall not include endorsements of items for collection in the
Ordinary Course of Business.

          "HOLDERS" means all the holders of the Notes.

          "INDEBTEDNESS" means at a particular time, without duplication, (a)
any indebtedness for borrowed money or issued in substitution for or exchange of
indebtedness for borrowed money, (b) any indebtedness evidenced by any note,
bond, debenture or other Debt Security, (c) any indebtedness for the deferred
purchase price of property or services with respect to which a Person is liable,
contingently or otherwise, as obligor or otherwise (other than trade payables
and other current liabilities incurred in the Ordinary Course of Business), (d)
any commitment by which a Person assures a creditor against loss (including,
without limitation, contingent reimbursement obligations with respect to letters
of credit), (e) any indebtedness Guaranteed in any manner by a Person
(including, without limitation, guaranties in the form of an agreement to
repurchase or reimburse), (f) any obligations under capitalized leases and (g)
any indebtedness secured by a Lien on a Person's assets.

          "INDEBTEDNESS TO EBITDA RATIO" means, with respect to the Company as
of any date, the quotient of (a) the aggregate amount of Indebtedness of the
Company and the Company's Subsidiaries as determined (i) on a consolidated basis
as of such date, (ii) in accordance with GAAP applied on a consistent basis in
accordance past practice and (iii) after giving effect to the payment of the
aggregate Prepayment Price for the Notes outstanding as of such date DIVIDED BY
(b) the product of (i) the EBITDA of the Company and the Company's

                                      -18-
<Page>

Subsidiaries as determined on a consolidated basis for the three-calendar-month
period ending on the last day of the calendar month that is two months prior to
the calendar month in which the Indebtedness to EBITDA Ratio is to be calculated
MULTIPLIED BY (ii) four.

          "INITIAL CLOSING DATE" has the meaning set forth in the Note Purchase
Agreement.

          "LIABILITY" means any liability or obligation of whatever kind or
nature (whether known or unknown, whether assert or unasserted, whether absolute
or contingent, whether accrued or unaccrued, whether liquidated or unliquidated,
and whether due or to become due), including any liability or obligation for
taxes.

          "LIEN" means any mortgage, pledge, restriction, security interest,
encumbrance, option, lien or charge of any kind (including, without limitation,
any conditional sale or other title retention agreement or lease in the nature
thereof), any sale of receivables with recourse against the Company or any of
its subsidiaries, any filing or agreement to file a financing statement as
debtor under the Uniform Commercial Code or any similar statute other than to
reflect ownership by a third party of property leased to the Company or any of
its subsidiaries under a lease which is not in the nature of a conditional sale
or title retention agreement, or any subordination arrangement in favor of
another Person (other than any subordination arising in the Ordinary Course of
Business).

          "MARKET PRICE" of any security means (a) if such security is listed on
an exchange, the average closing price of such security on the principal
exchange on which such security is listed, or, if there has been no sale on any
such exchange on any day, the average closing price of such security on the
principal exchange on the most recent day on which sales of such security have
taken place on such exchange or (b) if such security is not listed on an
exchange but is quoted through the NASDAQ System, or on the domestic
over-the-counter market as reported by the National Quotation Bureau, the
average of the closing sales prices as reported by the NASDAQ System or the
National Quotation Bureau, as applicable, over a period of 5 days consisting of
the day as of which "MARKET PRICE" is being determined and the 4 consecutive
business days prior to such day on which trades were reported in such security.
If at any time such security is not listed on any securities exchange or quoted
in the NASDAQ System or the over-the-counter market, the "MARKET PRICE" shall be
the fair value thereof determined jointly by the Company and the Holders of a
majority of the outstanding principal amount of the Notes. If such parties are
unable to reach agreement within a reasonable period of time, such fair value
shall be determined by an appraiser jointly selected by the Company and the
Holders of a majority of the outstanding principal amount of the Notes. The
determination of such appraiser shall be final and binding upon the parties, and
the fees and expenses of such appraiser shall be borne by the Company.

          "MERGER AGREEMENT" means that certain Merger Agreement, dated as of
February 13, 2002, among the Company, VitalStream, Inc., and VitalStream
Operating Corporation.

          "MERGER AGREEMENT SHARES" means the aggregate number of shares of
Common Stock issued by the Company after the Subsequent Closing Date (or, if the
Subsequent Closing is not consummated, the Initial Closing Date) pursuant to
Section 1.4(b) of the Merger Agreement

                                      -19-
<Page>

and each of Section 1.4(c)(iii), Section 1.4(c)(iv), Section 1.4(c)(v) and
Section 1.4(c)(vi) (with respect to Section 1.4(c)(vi), such number of shares,
as of the date hereof, is expected to be 1,752,982 shares of Common Stock, which
shares of Common Stock the Company expects to issue on or about November 15,
2002) of the Merger Agreement (as each such section may be amended, modified,
restated, superseded or replaced from time to time).

          "MERGER CLOSING DATE" means April 23, 2002.

          "NETWORKS" means Epoch Networks, Inc.

          "NOTES" means this Note together with (a) any other "Convertible
Notes" issued pursuant to the Note Purchase Agreement and (b) any Notes issued
upon the exchange or transfer or in replacement or substitution of all or any
portion of the outstanding principal amount of such Notes.

          "OFFICER'S CERTIFICATE" means a certificate signed by the Company's
president or its chief financial officer, stating that (a) the officer signing
such certificate has made or has caused to be made such investigations as are
necessary in order to permit him to verify the accuracy of the information set
forth in such certificate and (b) to such officer's knowledge, such certificate
does not misstate any material fact and does not omit to state any fact
necessary to make the certificate not misleading.

          "OPTIONS" means any rights or options to subscribe for or purchase
Common Stock or Convertible Securities.

          "OPTION SHARES" means the aggregate number of shares of capital stock
issued by the Company pursuant to (a) that certain Option Agreement, dated as of
May 10, 2002, by and between the Company and Steve Smith, as amended, modified,
restated, superseded or replaced from time to time, (b) that certain Option
Agreement, dated as of May 10, 2002, by and between the Company and
David R. Williams, as amended, modified, restated, superseded or replaced from
time to time, (c) that certain Option Agreement, dated as of November 1, 2001,
by and between the Company and Kevin Herzog, as amended, modified, restated,
superseded or replaced from time to time, (d) that certain Option Agreement,
dated as of November 1, 2001, by and between the Company and David R. Williams,
as amended, modified, restated, superseded or replaced from time to time, and
(e) that certain Option Agreement, dated as of November 1, 2001, by and between
the Company and Steve Smith, as amended, modified, restated, superseded or
replaced from time to time.

          "ORDINARY COURSE OF BUSINESS" means the ordinary course of business
consistent with past custom and practice (including with respect to quantity and
frequency).

          "PERSON" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization or any other similar entity or
organization or a governmental entity or any department, agency or political
subdivision thereof.

                                      -20-
<Page>

          "PREFERRED EQUITY PRICE" means, with respect to any Preferred Equity
Security as of any date, the lowest net price per share at which any such share
of Preferred Equity Security has been issued or sold (or deemed to have been
issued or sold) on or prior to such date.

          "PREFERRED EQUITY SECURITIES" means any Equity Security of the Company
(other than the Conversion Preferred) that ranks senior to the Common Stock as
to dividends or the distribution of assets upon any liquidation, dissolution or
winding up of the Company, or any Debt Security that is issued with any Equity
Security.

          "PREPAYMENT PRICE" means, with respect to any Note, the product of (a)
the outstanding principal amount of such Note plus all accrued and unpaid
interest on the principal amount of such Note through and including the
Prepayment Date MULTIPLIED BY (b) 1.1.

          "SUBSEQUENT CLOSING DATE" has the meaning set forth in the Note
Purchase Agreement.

          "SUBSIDIARY" means, with respect to any Person, any corporation,
limited liability company, partnership, association or other business entity of
which (a) if a corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (b) if a limited
liability company, partnership, association or other business entity, a majority
of the partnership or other similar ownership interest thereof is at the time
owned or controlled, directly or indirectly, by any Person or one or more
Subsidiaries of that Person or a combination thereof. For purposes hereof, a
Person or Persons shall be deemed to have a majority ownership interest in a
limited liability company, partnership, association or other business entity if
such Person or Persons shall be allocated a majority of limited liability
company, partnership, association or other business entity gains or losses or
shall be or control any managing director or general partner of such limited
liability company, partnership, association or other business entity.

          "TRANSACTION AGREEMENTS" means the Notes, the Guaranty, the
Certificate of Designation, the Warrants, the Note Purchase Agreement, the
Investor Rights Agreement, the Registration Agreement, the Asset Purchase
Agreement and all other agreements and instruments contemplated by each of the
foregoing to which the Company or any of its Subsidiaries is a party other than
the Customer Migration Agreement (as defined in the Asset Purchase Agreement),
the Colocation Agreement (as defined in the Asset Purchase Agreement) and the
Master Access Agreement (as defined in the Asset Purchase Agreement).

          "WARRANTS" has the meaning set forth in the Note Purchase Agreement.

          9.      REGISTERED HOLDER; OWNERSHIP. As used in this Note, references
to a "Holder" of a Note shall mean the registered Holder of such Note as set
forth in the Company's records. The Holder of this Note is the Holder of such
Note with respect to the principal and interest in respect of such Note.

                                      -21-
<Page>

          10.     NOTE EXCHANGEABLE FOR DIFFERENT DENOMINATIONS. This Note is
exchangeable, upon the surrender of this Note by the Holder at the principal
office of the Company, for one or more new Notes of like tenor representing in
the aggregate the rights hereunder, and each such new Note will represent such
portion of such rights as is designated by the Holder of this Note at the time
of such surrender.

          11.     REPLACEMENT. Upon receipt of evidence reasonably satisfactory
to the Company (an affidavit of the Holder executed under penalty of perjury
being satisfactory) of the ownership and the loss, theft, destruction or
mutilation of this Note, and in the case of any such loss, theft or destruction,
upon receipt of indemnity reasonably satisfactory to the Company (provided that
if the Holder is a financial institution or other institutional investor its own
agreement shall be satisfactory), or, in the case of any such mutilation upon
surrender of this Note, the Company will execute and deliver in lieu of this
Note a new Note of like kind representing the rights represented by such lost,
stolen, destroyed or mutilated Note and dated the date of such lost, stolen,
destroyed or mutilated Note.

          12.     CANCELLATION. After all principal and accrued interest at any
time owed on this Note has been paid in full, this Note shall be surrendered to
the Company for cancellation and shall not be reissued.

          13.     PAYMENTS. All payments to be made to the Holder of this Note
shall be made in the lawful money of the United States of America in immediately
available funds.

          14.     PLACE OF PAYMENT. Payments of principal and interest shall be
delivered to Holder, or its registered assigns, at the address of the Holder set
forth in the Company's records or to such other address or to the attention of
such other Person as specified by prior written notice delivered by the Holder
to the Company.

          15.     DESCRIPTIVE HEADINGS; INTERPRETATION. Section headings used in
this Note are for convenience only and are not to affect the construction of, or
to be taken into consideration in interpreting, this Note. The use of the word
"including" or any variation or derivative thereof in this Note is by way of
example rather than by limitation.

          16.     NOTICES. All notices, demands or other communications to be
given or delivered under or by reason of the provisions of this Note shall be in
writing and shall be deemed to have been given when delivered personally to the
recipient or when sent by facsimile followed by delivery by reputable overnight
courier service (charges prepaid), one day after being sent to the recipient by
reputable overnight courier service (charges prepaid) or five days after being
mailed to the recipient by certified or registered mail, return receipt
requested and postage prepaid. Any notice, demand or other communication
hereunder may be given by any other means (including telecopy or electronic
mail), but shall not be deemed to have been duly given unless and until it is
actually received by the intended recipient. Such notices, demands and other
communications shall be sent to (i) the Holder of this Note at the address of
the Holder set forth in the Company's records and (ii) the Company at the
address indicated below:

                  One Jenner, Suite 100

                                      -22-
<Page>

                  Irvine, California 92618
                  Facsimile: (949) 453-8686
                  Attention: Philip N. Kaplan, Chief Operating Officer

                  with a copy (which shall not constitute notice to the Company)
                  to:

                  Stoel Rives LLP
                  201 South Main Street, Suite 1100
                  Salt Lake City, Utah 84111
                  Facsimile: (801) 578-6999
                  Attention: Bryan T. Allen, Esq.

or to such other address, to the attention of such other Person and/or with such
other copy or copies as the recipient party has specified by prior written
notice to the sending party.

          17.     BUSINESS DAYS. If any payment is due, or any time period for
giving notice or taking action expires, on a day which is a Saturday, Sunday or
legal holiday in the State of New York or the State of California, the payment
shall be due and payable on, and the time period shall automatically be extended
to, the next business day immediately following such Saturday, Sunday or legal
holiday, and interest shall continue to accrue at the required rate hereunder
until any such payment is made.

          18.     USURY LAWS. It is the intention of the Company and the Holder
of this Note to conform strictly to all applicable usury laws now or hereafter
in force, and any interest payable under this Note shall be subject to reduction
to the amount not in excess of the maximum legal amount allowed under the
applicable usury laws as now or hereafter construed by the courts having
jurisdiction over such matters. If the maturity of this Note is accelerated by
reason of an election by the Holder of this Note resulting from an Event of
Default, voluntary prepayment by the Company or otherwise, then earned interest
may never include more than the maximum amount permitted by law, computed from
the date hereof until payment, and any interest in excess of the maximum amount
permitted by law shall be canceled automatically and, if theretofore paid, shall
at the option of the Holder of this Note either be rebated to the Company or
credited on the principal amount of this Note, or if this Note has been paid,
then the excess shall be rebated to the Company. The aggregate of all interest
(whether designated as interest, service charges, points or otherwise)
contracted for, chargeable, or receivable under this Note shall under no
circumstances exceed the maximum legal rate upon the unpaid principal balance of
this Note remaining unpaid from time to time. If such interest does exceed the
maximum legal rate, it shall be deemed a mistake and such excess shall be
canceled automatically and, if theretofore paid, rebated to the Company or
credited on the principal amount of this Note, or if this Note has been repaid,
then such excess shall be rebated to the Company.

                                      -23-
<Page>

          19.     TIME OF ESSENCE. Time is of the essence for the performance by
the Company of the obligations set forth in this Note.

          20.     AMENDMENT AND WAIVER. Except as otherwise expressly provided
herein, the provisions of this Note may be amended and the Company may take any
action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company has obtained the written consent of the
Holders of a majority of the outstanding principal amount of the Notes; provided
that no such action shall change (a) the principal amount outstanding or the
rate at which or the manner in which interest accrues on this Note or the times
at which such interest becomes payable or (b) the Conversion Price, the
Preferred Equity Price or the number of shares or the class of stock into which
this Note is convertible, without the written consent of the Holder of this
Note.

          21.     GOVERNING LAW. ALL ISSUES AND QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS NOTE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR
PROVISIONS (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT
WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE
OF NEW YORK. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF
NEW YORK SHALL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS NOTE, EVEN
THOUGH UNDER THAT JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE
SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

          22.     JURISDICTION AND VENUE. ALL JUDICIAL PROCEEDINGS BROUGHT
AGAINST THE COMPANY WITH RESPECT TO THIS NOTE MAY BE BROUGHT IN ANY STATE OR
FEDERAL COURT OF COMPETENT JURISDICTION IN NEW YORK CITY, NEW YORK OR LOS
ANGELES, CALIFORNIA. BY EXECUTING AND DELIVERING THIS NOTE, THE COMPANY, ACCEPTS
FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY,
THE JURISDICTION OF THE AFORESAID COURTS, AND IRREVOCABLY AGREES TO BE BOUND BY
ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS NOTE. THE COMPANY HEREBY
WAIVES ANY CLAIM THAT NEW YORK CITY, NEW YORK OR LOS ANGELES, CALIFORNIA IS AN
INCONVENIENT FORUM OR AN IMPROPER FORUM BASED ON LACK OF VENUE.

          23.     WAIVER OF RIGHT TO JURY TRIAL. THE COMPANY HEREBY WAIVES, TO
THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY in any litigation in any
court with respect to, in connection with, or arising out of this Note or the
validity, protection, interpretation, collection or enforcement of this Note;
AND THE COMPANY HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE
RIGHT TO INTERPOSE ANY SETOFF OR COUNTERCLAIM OR CROSS-

                                      -24-
<Page>

CLAIM in connection with any such litigation, irrespective of the nature of such
setoff, counterclaim or cross-claim except to the extent that the failure so to
assert any such setoff, counterclaim or cross-claim would permanently preclude
the prosecution of or recovery upon same. THE COMPANY AGREES THAT THIS SECTION
23 IS A SPECIFIC AND MATERIAL ASPECT OF THIS NOTE AND ACKNOWLEDGES THAT THE
HOLDER OF THIS NOTE WOULD NOT HAVE EXTENDED TO THE COMPANY THE LOANS IN RESPECT
OF WHICH THIS NOTE WAS ISSUED AND SOLD HEREUNDER IF THIS SECTION 23 WERE NOT
PART OF THIS NOTE.

                                    * * * * *

                                      -25-
<Page>

     IN WITNESS WHEREOF, the Company has executed and delivered this Note as of
the date first above written.

                         VITALSTREAM HOLDINGS, INC.

                         By:
                             -----------------------------------------
                             Name:
                             Title:

[Corporate Seal]

Attest:

--------------------------------
Name:
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]