Document:

<Page>

                                                                    EXHIBIT 10.1

                            ASSET PURCHASE AGREEMENT

                          DATED AS OF NOVEMBER 1, 2002

                                      AMONG

                           VITALSTREAM HOLDINGS, INC.,

                      VITALSTREAM BROADCASTING CORPORATION,

                               EPOCH HOSTING, INC.

                                       AND

                              EPOCH NETWORKS, INC.

<Page>

                                TABLE OF CONTENTS
<Table>
<S>      <C>                                                                                                     <C>
1.       Definitions..............................................................................................1

2.       Basic Transaction.......................................................................................15
         (a)    Purchase and Sale of Assets......................................................................15
         (b)    Assumption of Liabilities........................................................................16
         (c)    Consideration....................................................................................16
         (d)    Post-Closing Adjustment in Connection with the Issuance of Common Stock Pursuant
                Section 1.4(c)(iii) of the Merger Agreement......................................................17
         (e)    Post-Closing Adjustment in Connection with the Issuance of Common Stock Pursuant
                Section 1.4(c)(iv) of the Merger Agreement.......................................................19
         (f)    Post-Closing Adjustment in Connection with the Issuance of Common Stock Pursuant
                Section 1.4(c)(v) of the Merger Agreement........................................................19
         (g)    Allocation of Consideration......................................................................19
         (h)    The Closing......................................................................................20
         (i)    Deliveries at the Closing........................................................................20
         (j)    Post-Closing Deliveries..........................................................................20

3.       Representations and Warranties of Hosting and Networks..................................................20
         (a)    Organization, Corporate Power and Licenses.......................................................20
         (b)    Approval and Consents; Authorization; No Breach..................................................21
         (c)    Subsidiaries.....................................................................................21
         (d)    Hosting Financial Statements.....................................................................22
         (e)    Notes and Accounts Receivable; Notes and Accounts Payable........................................22
         (f)    Guaranties.......................................................................................23
         (g)    Title to Assets; Condition of Assets; Sufficiency of Assets......................................23
         (h)    Absence of Undisclosed Liabilities...............................................................23
         (i)    Absence of Certain Developments..................................................................24
         (j)    Compliance With Laws.............................................................................25
         (k)    Litigation.......................................................................................25
         (l)    Contracts and Commitments........................................................................26
         (m)    Tax Matters......................................................................................27
         (n)    Real Property....................................................................................29
         (o)    Environmental Matters............................................................................31
         (p)    Intellectual Property Rights.....................................................................32
         (q)    Employees........................................................................................34
         (r)    Employee Benefits Relating to Hosting............................................................35
         (s)    Employee Benefits Relating to Networks...........................................................35
         (t)    Insurance........................................................................................36
         (u)    Affiliate Transactions...........................................................................36
         (v)    Brokerage........................................................................................37
         (w)    Governmental Consent, etc........................................................................37
         (x)    Disclosure.......................................................................................37
         (y)    Capital Stock and Related Matters................................................................37
         (z)    Investment in Purchase Shares....................................................................37
</Table>

                                       -i-
<Page>

<Table>
<S>      <C>                                                                                                     <C>
         (aa)   Customers and Suppliers..........................................................................38

4.       Representations and Warranties of VitalStream...........................................................38
         (a)    Organization, Corporate Power and Licenses.......................................................39
         (b)    Approval and Consents; Authorization; No Breach..................................................39
         (c)    Subsidiaries.....................................................................................40
         (d)    Securities and Exchange Commission Reports and VitalStream Financial Statements..................40
         (e)    Notes and Accounts Receivable....................................................................41
         (f)    Guaranties.......................................................................................41
         (g)    Title to Assets; Condition of Assets; Sufficiency of Assets......................................41
         (h)    Absence of Undisclosed Liabilities...............................................................42
         (i)    Absence of Certain Developments..................................................................42
         (j)    Compliance With Laws.............................................................................44
         (k)    Litigation.......................................................................................44
         (l)    Contracts and Commitments........................................................................44
         (m)    Tax Matters......................................................................................46
         (n)    Real Property....................................................................................47
         (o)    Environmental Matters............................................................................49
         (p)    Intellectual Property Rights.....................................................................50
         (q)    Employees........................................................................................52
         (r)    Employee Benefits................................................................................53
         (s)    Insurance........................................................................................54
         (t)    Affiliate Transactions...........................................................................55
         (u)    Brokerage........................................................................................55
         (v)    Governmental Consent, etc........................................................................55
         (w)    Disclosure.......................................................................................55
         (x)    Capital Stock and Related Matters................................................................55
         (y)    Issuance of the Purchase Shares..................................................................56
         (z)    Customers and Suppliers..........................................................................56
         (aa)   Investment Company...............................................................................57

5.       Pre-Closing Covenants...................................................................................57
         (a)    General..........................................................................................57
         (b)    Notices and Consents.............................................................................57
         (c)    Operation and Preservation of Business...........................................................58
         (d)    Full Access......................................................................................58
         (e)    Notice of Developments...........................................................................59
         (f)    Exclusivity......................................................................................59

6.       Additional Agreements...................................................................................60
         (a)    General..........................................................................................61
         (b)    Litigation Support...............................................................................61
         (c)    Purchase Shares..................................................................................61
         (d)    Employees........................................................................................63
         (e)    Non-Competition; Non-Interference; Non-Solicitation..............................................63
         (f)    No Assignment Causing Breach.....................................................................65
</Table>

                                      -ii-
<Page>

<Table>
<S>      <C>                                                                                                     <C>
         (g)    Mail, Notices and Other Correspondence...........................................................65
         (h)    Tax Matters......................................................................................65
         (i)    Notice of Assignment.............................................................................66
         (j)    Updating Hosting Contracts List..................................................................66
         (k)    Post-Closing Certifications and Deliveries.......................................................67
         (l)    Additional Software Licenses.....................................................................67

7.       Conditions to Obligation to Close.......................................................................67
         (a)    Conditions to Obligation of Each of VitalStream and the Buyer....................................68
         (b)    Conditions to Obligation of Each of Hosting and Networks.........................................70

8.       Survival of Representations and Warranties; Indemnification.............................................73
         (a)    Survival of Representations and Warranties.......................................................73
         (b)    Indemnification of VitalStream...................................................................74
         (c)    Indemnification of the Holders of the Purchase Shares............................................75
         (d)    Method of Asserting Claims Involving Third-Party Claims..........................................75
         (e)    Method of Asserting Claims not Involving Third-Party Claims......................................77
         (f)    Limitations......................................................................................77
         (g)    Exclusive Remedies...............................................................................77

9.       Termination.............................................................................................78
         (a)    Termination of Agreement.........................................................................78
         (b)    Effect of Termination............................................................................78

10.      Miscellaneous...........................................................................................78
         (a)    Expenses.........................................................................................78
         (b)    Press Releases and Public Announcements..........................................................79
         (c)    No Third-Party Beneficiaries.....................................................................79
         (d)    Entire Agreement.................................................................................79
         (e)    Successors and Assigns...........................................................................79
         (f)    Counterparts.....................................................................................79
         (g)    Descriptive Headings; Interpretation.............................................................79
         (h)    Notices; Business Days...........................................................................79
         (i)    Amendments and Waivers...........................................................................81
         (j)    Severability.....................................................................................81
         (k)    Construction.....................................................................................81
         (l)    Incorporation of Annexes, Schedules and Exhibits.................................................81
         (m)    Specific Performance.............................................................................81
         (n)    GOVERNING LAW....................................................................................82
         (o)    JURISDICTION AND VENUE...........................................................................82
         (p)    WAIVER OF RIGHT TO JURY TRIAL....................................................................82
</Table>

                                      -iii-
<Page>

                         ANNEXES, SCHEDULES AND EXHIBITS

                                     ANNEXES

Annex 1 -- Eligible Networks Employees

                                    SCHEDULES

Schedule 1(b)       --    Excluded Hosting Assets
Schedule 1(c)       --    Hosting Business Customers
Schedule 1(d)       --    Hosting Permits and Licenses
Schedule 1(e)       --    Hosting Records and Miscellaneous Items
Schedule 1(f)       --    Hosting Tangible Personal Property
Schedule 1(g)       --    Hosting Customer Security Deposits
Schedule 3(a)       --    Organization, Corporate Power and Licenses
Schedule 3(b)       --    Approval and Consents
Schedule 3(e)       --    Notes and Accounts Receivable; Notes and Accounts
                          Payable
Schedule 3(f)       --    Guaranties
Schedule 3(g)       --    Title to Assets; Condition of Assets
Schedule 3(i)       --    Absence of Certain Developments
Schedule 3(j)       --    Compliance with Laws
Schedule 3(k)       --    Litigation
Schedule 3(l)       --    Contracts and Commitments
Schedule 3(m)       --    Tax Matters
Schedule 3(n)(ii)   --    Hosting Leased Real Property
Schedule 3(p)(iii)  --    Intellectual Property Rights - Patents, Trademarks and
                          Copyrights
Schedule 3(p)(iv)   --    Intellectual Property Rights - Third Parties
Schedule 3(q)       --    Employees
Schedule 3(r)       --    Employee Benefits
Schedule 3(s)       --    Employee Benefits Relating to Networks
Schedule 3(u)       --    Affiliate Transaction
Schedule 3(aa)      --    Customers and Suppliers

Schedule 4(a)       --    Organization, Corporate Power and Licenses
Schedule 4(b)       --    Approval and Consents
Schedule 4(c)       --    Subsidiaries
Schedule 4(d)       --    Securities and Exchange Commission Reports and
                          VitalStream Financial Statements
Schedule 4(e)       --    Notes and Accounts Receivable; Notes and Accounts
                          Payable
Schedule 4(f)       --    Guaranties
Schedule 4(g)       --    Title to Assets; Condition of Assets
Schedule 4(i)       --    Absence of Certain Developments
Schedule 4(j)       --    Compliance with Laws
Schedule 4(k)       --    Litigation
Schedule 4(l)       --    Contracts and Commitments

                                      -iv-
<Page>

Schedule 4(l)(ii)   --    Contracts and Commitments
Schedule 4(m)       --    Tax Matters
Schedule 4(n)(ii)   --    Hosting Leased Real Property
Schedule 4(p)(iii)  --    Intellectual Property Rights - Patents, Trademarks and
                          Copyrights
Schedule 4(p)(iv)   --    Intellectual Property Rights - Third Parties
Schedule 4(q)       --    Employees
Schedule 4(r)       --    Employee Benefits
Schedule 4(t)       --    Affiliate Transaction
Schedule 4(u)       --    Brokerage
Schedule 4(x)(i)    --    Capital Stock and Related Matters
Schedule 4(z)       --    Customers and Suppliers
Schedule 6(l)       --    Additional Software Licenses

                                    EXHIBITS

Exhibit A           --    Form of Colocation Agreement
Exhibit B           --    Form of Escrow Agreement
Exhibit C           --    Form of Investor Rights Agreement
Exhibit D           --    Form of Master Access Agreement
Exhibit E           --    Form of Networks Contribution Agreement
Exhibit F           --    Form of Opinion of Hosting's Counsel
Exhibit G           --    Form of Opinion of VitalStream's Counsel
Exhibit H           --    Form of Registration Agreement
Exhibit I           --    Form of Customer Migration Agreement
Exhibit J           --    Form of Assignment and Assumption Agreement
Exhibit K           --    Form of Bill of Sale
Exhibit L           --    Form of Hosting Audited Financial Statements Officer's
                          Certificate
Exhibit M           --    Form of Hosting Financial Statements
Exhibit N           --    Form of Partial Termination and Second Amendment to
                          Sublease Agreement

                                       -v-
<Page>

                            ASSET PURCHASE AGREEMENT

     This ASSET PURCHASE AGREEMENT, dated as of November 1, 2002 (this
"AGREEMENT"), by and among VitalStream Holdings, Inc., a Nevada corporation
("VITALSTREAM"), VitalStream Broadcasting Corporation, a Nevada corporation (the
"BUYER"; and together with VitalStream, the "BUYING PARTIES"), Epoch Networks,
Inc., a California corporation ("NETWORKS"), and Epoch Hosting, Inc. a Delaware
corporation ("HOSTING"). VitalStream, Buyer, Networks and Hosting are referred
to collectively herein as the "PARTIES." Unless otherwise indicated herein,
capitalized terms used in this Agreement have the meanings set forth in SECTION
1 of this Agreement.

                                    RECITALS

     WHEREAS, this Agreement contemplates a transaction in which the Buyer will
(1) purchase substantially all of the assets of Hosting and certain specified
assets of Networks and (2) assume certain specified Liabilities of Hosting and
Networks related to their Hosting Businesses and (3) VitalStream will pay the
Cash Consideration and issue the Purchase Shares to Hosting as consideration
therefor.

     NOW, THEREFORE, in consideration of the premises and the mutual promises
herein made, and in consideration of the representations, warranties and
covenants herein contained, the Parties agree as follows.

     1.   DEFINITIONS. For the purposes of this Agreement, the following terms
have the meanings set forth below:

     "AKKAD AGREEMENT" means the Stockholders and Registration Rights Agreement,
dated as of August 9, 2000, by and among VitalStream, Inc., Paul Summer, Philip
Kaplan and the Series B Holders (as defined therein), as assumed by VitalStream,
as amended, modified, restated, superseded or replaced from time to time.

     "ACQUIRED ASSETS" means all right, title, and interest of (a) Hosting in
and to all of the assets of any kind, other than the Excluded Hosting Assets,
that are used or held for use by Hosting following the consummation of the
Contribution Transaction in connection with the operation of the Hosting
Business of Hosting as currently operated by Hosting, including all rights and
benefits of Hosting under and in each of the following: (i) the Hosting Real
Property Leases to which Hosting is a party; (ii) the Hosting Tangible Personal
Property; (iii) the Hosting Intellectual Property Rights; (iv) the Hosting
Contracts; (v) all Hosting Permits and Licenses; (vi) the Hosting Records and
Miscellaneous Items; (vii) the Hosting Customer Security Deposits; and (viii)
all goodwill and going concern value associated with the Hosting Business as
currently operated by Hosting and (b) Networks under and in each of the Hosting
Real Property Leases to which it is a party.

     "ACQUIRED ASSETS GENERATED QUARTERLY NET REVENUES" has the meaning set
forth in SECTION 2(d)(i) of this Agreement.

     "AFFILIATE" of any particular Person means any other Person controlling,
controlled by or under common control with such particular Person, where
"control" means the possession,

<Page>

directly or indirectly, of the power to direct the management and policies of a
Person whether through the ownership of voting securities, contract or
otherwise.

     "ARTICLES OF INCORPORATION" means the Articles of Incorporation of
VitalStream as amended, modified, restated, superseded or replaced from time to
time.

     "ASSIGNMENT AND ASSUMPTION AGREEMENT" has the meaning set forth in SECTION
2(i) of this Agreement.

     "ASSUMED LIABILITIES" means (a) all of the Liabilities of Hosting or
Networks, as the case may be, relating to, or arising out of or in connection
with, each of the Hosting Contracts set forth on SCHEDULE 3(l) attached hereto
(as such SCHEDULE 3(l) attached hereto may be amended from time to time pursuant
to SECTION 6(j) of this Agreement) to the extent such Liabilities arise or
accrue after the Closing Date, (b) all of the Liabilities under the Hosting Real
Property Leases to the extent such Liabilities arise or accrue after the Closing
Date, (c) all of the Liabilities of Hosting which constitute deferred revenue
Liabilities, to the extent such Liabilities do not exceed $20,000 in the
aggregate, as determined in accordance with GAAP and (d) any Liabilities of
Networks to any Transferred Employee for paid time off in an amount set forth
opposite such Transferred Employee's name on ANNEX 1 attached hereto under the
heading "DOLLAR VALUE OF ACCRUED PAID TIME OFF", which will be updated at
Closing for the period from the date of this Agreement through the Closing Date.

     "AUDITED FINANCIAL STATEMENTS PREPARATION FEE" shall mean an amount equal
to $25,000 to be paid by VitalStream as partial reimbursement of the fees and
expenses incurred by Hosting in connection with the preparation by Rose, Snyder
& Jacobs of the Hosting Audited Financial Statements.

     "BANKRUPTCY LAW" means Title 11, U.S. Code, or any similar federal or state
law for the relief of debtors.

     "BILL OF SALE" has the meaning set forth in SECTION 2(i) of this Agreement.

     "BUYING PARTIES" has the meaning set forth in the preamble to this
Agreement.

     "CASH" means cash and cash equivalents (including marketable securities and
short term investments) calculated in accordance with GAAP applied on a basis
consistent with the preparation of the Hosting Financial Statements.

     "CASH CONSIDERATION" has the meaning set forth in SECTION 2(c).

     "CISCO" means Cisco Systems Capital Corporation.

     "CISCO INDEBTEDNESS" means the Indebtedness evidenced by that certain
Secured Promissory Note, dated as of August 31, 2001, by Holdings in favor of
Cisco.

     "CISCO SECURITY AGREEMENTS" means that certain (a) Second Amended and
Restated General Security Agreement, dated as of January 31, 2002, between
Holdings, Networks, Epoch Network Communications, Inc., and Cisco, as agent, as
amended; (b) Second Amended And

                                       -2-
<Page>

Restated Pledge Agreement, dated as of January 31, 2002, by and among Holdings,
Networks, Epoch Network Communications, Inc., and Cisco, as agent, as amended;
and (c) Second Amended And Restated Guaranty, dated as of January 31, 2002, by
and among Networks, Epoch Network Communications, Inc., and Cisco, as agent, as
amended.

     "CLAIM" means any action, claim, lawsuit, demand, suit, charge, complaint,
inquiry, hearing, investigation, notice of a violation or noncompliance,
litigation, proceeding, arbitration, appeals or other dispute, whether civil,
criminal, administrative or otherwise.

     "CLOSING" has the meaning set forth in SECTION 2(h) of this Agreement.

     "CLOSING DATE" has the meaning set forth in SECTION 2(h) of this Agreement.

     "COBRA" means the requirements of Part 6 of Subtitle B of Title I of ERISA
and Section 4980B of the Code and of any similar state Law.

     "CODE" means the Internal Revenue Code of 1986, as amended.

     "COLOCATION AGREEMENT" means that certain Colocation Agreement, dated as of
the Closing Date, by and between VitalStream and Netifice in the form of EXHIBIT
A attached hereto, as amended, modified, restated, superseded or replaced from
time to time.

     "COMMON STOCK" means the Common Stock of VitalStream, par value $0.001 per
share.

     "CONFIDENTIAL INFORMATION" means any of the following, to the extent not
already made available to the public, trade secrets and any other information of
a secret, confidential or proprietary nature concerning the operation of the
Hosting Business of Hosting as currently operated by Hosting or of any of the
customers or customer accounts of the Hosting Business of Hosting (including the
accounts and information related to the Hosting Business Customers), including
(a) matters of a technical nature (including know-how, processes, computer
programs), (b) accounting methods, and documentation, (c) matters of a business
nature (such as information about prices, costs, profits, contract forms,
promotional methods, markets, market or marketing plans, sales, customers or
accounts, possible customers or accounts, and employees), (d) plans for further
development and (e) any other information not generally available to the public.

     "CONTRIBUTION TRANSACTION" means the contribution of certain assets of
Networks to Hosting and the assumption by Hosting of certain Liabilities of
Networks pursuant to the Network Contribution Agreement (including the exhibits
attached thereto).

     "COVERED ACTIVITIES" has the meaning set forth in SECTION 6(e)(i) of this
Agreement.

     "CONVERTIBLE PROMISSORY NOTE AND WARRANT PURCHASE AGREEMENT" means that
certain Convertible Promissory Note and Warrant Purchase Agreement, dated as of
the Closing Date, by and among VitalStream and the Purchasers set forth on the
signature pages thereto, as amended, modified, restated, superseded or replaced
from time to time.

                                       -3-
<Page>

     "CUSTOMER MIGRATION AGREEMENT" means that certain Customer Migration
Agreement, dated as of the Closing Date, by and between VitalStream and Netifice
in the form of EXHIBIT I attached hereto, as amended, modified, restated,
superseded or replaced from time to time.

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

     "DECIDING ACCOUNTANT" has the meaning set forth in SECTION 2(d)(iii) of
this Agreement.

     "DISPUTE" has the meaning set forth in SECTION 2(d)(ii) of this Agreement.

     "DOLPHIN" means Dolphin Equity Partners, L.P.

     "DOLPHIN COMMUNICATIONS I" means Dolphin Communications Fund, L.P.

     "DOLPHIN COMMUNICATIONS II" means Dolphin Communications Fund II, L.P.

     "DOLPHIN FUND I" means Dolphin Communications I and Dolphin Parallel I.

     "DOLPHIN FUND II" means Dolphin Communications II and Dolphin Parallel II.

     "DOLPHIN PARALLEL I" means Dolphin Communications Parallel Fund, L.P.

     "DOLPHIN PARALLEL II" means Dolphin Communications Parallel Fund II
(Netherlands), L.P.

     "ELIGIBLE NETWORKS EMPLOYEES" has the meaning set forth in SECTION 6(d) of
this Agreement.

     "EMPLOYEE BENEFIT PLAN" means any "employee benefit plan" (as such term is
defined in Section 3(3) of ERISA) and any other employee benefit plan, program
or arrangement of any kind.

     "ENVIRONMENTAL, HEALTH, AND SAFETY REQUIREMENTS" means all Laws, all
contractual obligations and all common law concerning public health and safety,
worker health and safety, pollution or protection of the environment, including
all those relating to the presence, use, production, generation, handling,
transportation, treatment, storage, disposal, distribution, labeling, testing,
processing, discharge, release, threatened release, control, or cleanup of any
hazardous materials, substances or wastes, chemical substances or mixtures,
pesticides, pollutants, contaminants, toxic chemicals, petroleum products or
byproducts, asbestos, polychlorinated biphenyls, noise or radiation, each as
amended and as now or hereafter in effect.

     "EQUITY SECURITY" 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 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

                                       -4-
<Page>

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.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     "ESCROW AGENT" has the meaning set forth in the Escrow Agreement.

     "ESCROW AGREEMENT" means the Escrow Agreement, dated as of the Closing
Date, by and among VitalStream, Hosting and the Escrow Agent in the form of
EXHIBIT B attached hereto, as amended, modified, restated, superseded or
replaced from time to time.

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended and
the rules and regulations promulgated thereunder.

     "EXCLUDED HOSTING ASSETS" means the right, title and interest of Hosting or
Networks in and to the following assets: (a) the corporate charter,
qualifications to conduct business as a foreign corporation, arrangements with
registered agents relating to foreign qualifications, taxpayer and other
identification numbers, seals, minute books, stock transfer books, blank stock
certificates, and other documents relating to the organization, maintenance, and
existence of Hosting as a corporation, (b) any of the rights of Hosting or
Networks under this Agreement (or under any Transaction Agreement or side
agreement between Hosting and/or Networks, on the one hand, and VitalStream, on
the other hand, entered into on or after the date of this Agreement), (c) all
Cash of Hosting or Networks, (d) all accounts and notes receivable of Networks
or Hosting and (e) any of the assets of Hosting set forth on SCHEDULE 1(b)
attached hereto.

     "EXCLUDED HOSTING LIABILITIES" means all Liabilities of Hosting or Networks
which do not constitute Assumed Liabilities.

     "FAIR MARKET VALUE" means the price at which an asset would change hands
between a willing buyer and a willing seller when the former is not under any
compulsion to buy and the latter is not under any compulsion to sell, and both
parties are able, as well as willing, to trade and are well-informed about the
asset and the market for the asset, as determined jointly by VitalStream and
Hosting. If such parties are unable to reach agreement within a reasonable
period of time, such "FAIR MARKET VALUE" shall be determined by an independent
appraiser experienced in valuing such type of asset jointly selected by
VitalStream and Hosting. The determination of such appraiser shall be final and
binding upon the Parties and VitalStream shall pay the first $10,000 of the fees
and expenses of such appraiser, after which VitalStream and Hosting shall each
pay one-half of the fees and expenses of such appraiser. Notwithstanding the
foregoing, the "FAIR MARKET VALUE" of any security listed on any securities
exchange or quoted in the NASDAQ System (including the proposed Bulletin Board
Exchange) or the over-the-counter market shall be the "MARKET PRICE."

     "FULLY DILUTED OUTSTANDING COMMON STOCK" means the sum of (a) the number of
shares of Common Stock actually outstanding on the Closing Date immediately
prior to the Closing and (b) a number of shares equal to 1,757,982, (as such
number of shares shall be equitably adjusted for stock splits, stock
combinations and dividends affecting the Common Stock).

                                       -5-
<Page>

     "GAAP" means United States generally accepted accounting principles as in
effect from time to time.

     "GOVERNMENTAL ENTITY" means individually, and "GOVERNMENTAL ENTITIES" means
collectively, the United States of America, any foreign country and any state or
other political subdivision thereof, or any entity exercising executive,
legislative, judicial, regulatory or administrative functions of government,
including any court.

     "GUARANTEE" means any guarantee or other contingent Liability (other than
any endorsement for collection or deposit in the ordinary course of business),
direct or indirect with respect to any Liabilities of another Person, through a
contract or otherwise, including, (a) any endorsement or discount with recourse
or undertaking substantially equivalent to or having economic effect similar to
a guarantee in respect of any such Liabilities and (b) any contract (i) to
purchase, or to advance or supply funds for the payment or purchase of, any such
Liabilities, (ii) to purchase, sell or lease property, products, materials or
supplies, or transportation or services, in respect of enabling such other
Person to pay any such Liability or to assure the owner thereof against loss
regardless of the delivery or nondelivery of the property, products, materials
or supplies or transportation or services or (iii) to make any loan, advance or
capital contribution to or other investment in, or to otherwise provide funds to
or for, such other Person in respect of enabling such Person to satisfy a
Liability (including any Liability for a dividend, stock liquidation payment or
expense) or to assure a minimum equity, working capital or other balance sheet
condition in respect of any such Liability.

     "HIGHEST CALENDAR QUARTER" has the meaning set forth in SECTION 2(d)(i) of
this Agreement.

     "HIGHEST CALENDAR QUARTER NET REVENUES" has the meaning set forth in
SECTION 2(d)(i) of this Agreement.

     "HOLDINGS" means Epoch Holdings, Inc., a Delaware corporation and the
parent of Networks.

     "HOSTING" has the meaning set forth in the preamble of this Agreement.

     "HOSTING AUDITED FINANCIAL STATEMENTS" has the meaning set forth in SECTION
7(a)(viii) of this Agreement.

     "HOSTING AUDITED FINANCIAL STATEMENTS OFFICER'S CERTIFICATE" means that
certain officer's certificate from an officer of Hosting certifying,
representing and warranting as to certain matters regarding the Hosting Audited
Financial Statements in the form attached hereto as EXHIBIT L.

     "HOSTING BALANCE SHEET" means the balance sheet contained within the
Hosting Financial Statements.

     "HOSTING BUSINESS" means (a) the hosting business of any Person, which
includes providing customers any or all of an Internet website, server and
network monitoring, reporting and ongoing maintenance and backup, e-mail account
management (to the extent that such e-mail account management arises solely as
part of a hosting agreement) and traffic reporting as

                                       -6-
<Page>

each pertains to the provision of hosting services and (b) the colocation
business of any Person, which includes leasing or licensing space for a server
or other computer equipment to customers.

     "HOSTING BUSINESS CUSTOMERS" means each Person set forth on SCHEDULE 1(c)
attached hereto and to which (i) Hosting provided goods or services at any time
in connection with the operation of its Hosting Business during the period
commencing on January 1, 2002, and continuing through the Closing Date, as
determined from the books and records of Hosting or (ii) Networks provided goods
or services at any time in connection with the operation of its Hosting Business
during the period commencing on January 1, 2002 and continuing through the
consummation of the transactions contemplated by the Networks Contribution
Agreement, as determined from the books and records of Networks; provided,
however, "HOSTING BUSINESS CUSTOMERS" shall exclude any Person which, prior to
the Closing Date, (a) notified Hosting or Networks, as the case may be, of its
intention to cease purchasing goods and services from Hosting or Networks, as
the case may be, and (b) ceased purchasing goods and services from Hosting or
Networks, as the case may be prior to the Closing Date.

     "HOSTING CONTRACTS" means all contracts, leases, accounts receivable,
licenses, employment agreements, instruments and other agreements to the extent
that they are used or held for use by Hosting following the consummation of the
Contribution Transaction in connection with the operation of the Hosting
Business of Hosting as currently operated by Hosting; provided, however, the
Hosting Contracts shall exclude any contracts, leases, accounts receivable,
licenses employment agreements, instruments and other agreements which
constitute an Excluded Hosting Asset. Notwithstanding the foregoing, Hosting
Contracts shall not include any contracts, leases, accounts receivable,
licenses, employment agreements, instruments and other agreements that are not
listed on SCHEDULE 3(l) attached hereto (as such SCHEDULE 3(l) attached hereto
may be amended from time to time pursuant to SECTION 6(j) of this Agreement).

     "HOSTING CUSTOMER SECURITY DEPOSITS" means those Cash security deposits
held by Hosting and Networks as security for the payment by certain Hosting
Business Customers for services provided by the Hosting Business of Hosting and
Networks and which are set forth on SCHEDULE 1(g) attached hereto.

     "HOSTING FINANCIAL STATEMENTS" has the meaning set forth in SECTION 3(d) of
this Agreement.

     "HOSTING INTELLECTUAL PROPERTY RIGHTS" means all right, title and interest
in and to all Intellectual Property Rights to the extent that they are used or
held for use by Hosting following the consummation of the Contribution
Transaction in connection with the operation of the Hosting Business of Hosting
as currently operated by Hosting, including (a) all Intellectual Property Rights
with respect to web sites, URLs and domain names, (b) the Intellectual Property
Rights set forth on SCHEDULE 3(p)(iii) and SCHEDULE 3(p)(iv) attached hereto and
(c) all rights of Hosting arising under licenses and sublicenses and other
agreement or permissions obtained with respect to any of the foregoing
Intellectual Property Rights, together with all income, royalties, damages and
payments due to Hosting and payable on the Closing Date or thereafter (including
damages and payments due to Hosting for past or future infringements or
misappropriations thereof by third parties), remedies against infringements
thereof and rights to protection of interests therein (including the right to
sue and recover for past infringements and

                                       -7-
<Page>

misappropriations thereof), and any and all corresponding rights that now or
hereafter may arise or be secured under the Laws of all jurisdictions; provided,
however, the Hosting Intellectual Property Rights shall exclude any Intellectual
Property Rights which constitute an Excluded Hosting Asset.

     "HOSTING MATERIAL ADVERSE EFFECT" means a material and adverse effect upon
the business, operations, assets, liabilities, condition (financial or
otherwise), operating results, prospects, cash flow, net worth or employee,
customer or supplier relations of the Hosting Business of Hosting and Networks
as currently operated by Hosting and Networks.

     "HOSTING MATERIAL CONTRACTS" has the meaning set forth in SECTION 3(l).

     "HOSTING LEASED REAL PROPERTY" has the meaning set forth in SECTION 3(n) of
this Agreement.

     "HOSTING PERMITS AND LICENSES" means all franchises, authorizations,
approvals, permits, licenses, orders, registrations, certificates, variances and
similar rights obtained from Governmental Entities to the extent that they are
used or held for use by Hosting in connection with the operation of the Hosting
Business of Hosting as currently operated by Hosting and includes all such items
identified on SCHEDULE 1(d) attached hereto; provided, however, the Hosting
Permits and Licenses shall exclude any franchises, authorizations, approvals,
permits, licenses, orders, registrations, certificates, variances and similar
rights obtained from Governmental Entities which constitute an Excluded Hosting
Asset.

     "HOSTING REAL PROPERTY LEASES" has the meaning set forth in SECTION 3(n) of
this Agreement.

     "HOSTING RECORDS AND MISCELLANEOUS ITEMS" means all of the following, to
the extent that they are used or held for use by Hosting following the
consummation of the Contribution Transaction in connection with the operation of
the Hosting Business of Hosting as currently operated by Hosting: (a) lists of
the Hosting Business Customers, information regarding the Hosting Business
Customers and related pricing information; (b) Claims, deposits, prepayments,
refunds, causes of action, choices in action, rights of recovery, rights of set
off, prepaid operating expenses, deposits, warranties and rights of recoupment
(other than any such item relating to the payment of Taxes paid by Hosting); (c)
books, records, ledgers, files, documents, correspondence, lists, plats,
architectural plans, drawings and specifications, creative materials,
advertising, marketing and promotional materials, studies, reports and other
printed or written materials; (d) any Debt Securities (under which Hosting is
the lender) or Equity Securities held by Hosting immediately prior to the
Closing; (e) telephone, telefax and telex numbers and listings in all telephone
books, Internet sites and directories used solely in the Hosting Business of
Hosting; and (f) all of the items identified on SCHEDULE 1(e) attached hereto;
provided, however, the Hosting Records and Miscellaneous Items shall exclude any
of the foregoing items which constitute an Excluded Hosting Asset.

     "HOSTING SERVICES AGREEMENT" means that certain Inter-Company Management
and Services Agreement, dated as of February 28, 2002, by and between Networks
and Hosting, as amended, modified, restated, superseded or replaced from time to
time.

                                       -8-
<Page>

     "HOSTING TANGIBLE PERSONAL PROPERTY" means all tangible personal property
(including all machinery, equipment, inventories of raw materials and supplies,
manufactured and purchased parts, goods in process and finished goods,
furniture, automobiles, trucks, tractors, trailers, tools, and dies) used or
held for use by Hosting following the consummation of the Contribution
Transaction in connection with the operation of the Hosting Business of Hosting
as currently operated by Hosting including the tangible personal property set
forth on SCHEDULE 1(f) attached hereto; provided, however, the Hosting Tangible
Personal Property shall exclude any tangible personal property which constitutes
an Excluded Hosting Asset.

     "IMPROVEMENTS" means all buildings, structures, fixtures, building systems
and equipment, and all components thereof, including the roof, foundation,
load-bearing walls and other structural elements thereof, heating, ventilation,
air conditioning, mechanical, electrical, plumbing and other building systems,
environmental control, remediation and abatement systems; sewer, storm and waste
water systems, irrigation and other water distribution systems, parking
facilities; fire protection, security and surveillance systems,
telecommunications, computer wiring and cable installations and landscaping.

     "INDEBTEDNESS" with respect to any Person means (a) any Liability of such
Person for borrowed money, including: (i) any Liabilities incurred for all or
any part of the purchase price of property or other assets or for the cost of
property or other assets constructed or of improvements thereto, other than
accounts payable included in current Liabilities and incurred in respect of
property purchased in the Ordinary Course of Business, (whether or not such
Person has assumed or become liable for the payment of such Liabilities)
(whether accrued, absolute, contingent, unliquidated or otherwise, known or
unknown, whether due or to become due) and whether or not secured by liens; (ii)
the face amount of all letters of credit issued for the account of such Person
and all drafts drawn thereunder; (iii) capitalized lease obligations; and (iv)
all Guarantees of such Person; (b) accounts payable of such Person that have not
been paid within sixty (60) calendar days of their due date; and (c) retroactive
insurance premium obligations.

     "INDEMNITEE" has the meaning set forth in SECTION 8(d)(i) of this
Agreement.

     "INDEMNITOR" has the meaning set forth in SECTION 8(d)(i) of this
Agreement.

     "INITIAL PURCHASE SHARES" has the meaning set forth in SECTION 2(c) of this
Agreement.

     "INTELLECTUAL PROPERTY RIGHTS" means all (a) patents, patent applications
and patent disclosures; (b) trademarks, service marks, trade dress, trade names,
logos, slogans, corporate names, Internet domain names and registrations and
applications for registration thereof, together with all of the goodwill
associated therewith (and all translations, adaptations, derivations and
combinations of the foregoing); (c) copyrights (registered or unregistered) and
copyrightable works and registrations and applications for registration thereof;
(d) mask works and registrations and applications for registration thereof; (e)
computer software (including, but not limited to, source code and executable
code), data, databases and documentation thereof; (f) trade secrets and other
confidential information (including ideas, formulas, compositions, inventions
(whether patentable or unpatentable and whether or not reduced to practice),
know-how, manufacturing and production processes and techniques, research and
development information, customer accounts, identifying information regarding
customers, drawings,

                                       -9-
<Page>

specifications, designs, plans, proposals, technical data, financial and
marketing plans and customer and supplier lists and information); (g) domain
names, (h) other intellectual property or proprietary rights; and (i) copies and
tangible embodiments thereof (in whatever form or medium).

     "INVESTMENT" as applied to any Person means (a) any direct or indirect
purchase or other acquisition by such Person of any Debt Securities, Equity
Securities, obligations, instruments or ownership interests (including
partnership interests and joint venture interests) of any other Person and (b)
any capital contribution by such Person to any other Person.

     "INVESTOR RIGHTS AGREEMENT" means that certain Investor Rights Agreement,
dated as of the Closing Date, by and among VitalStream, Hosting and the other
signatories thereto in the form of EXHIBIT C attached hereto, as amended,
modified, restated, superseded or replaced from time to time.

     "KNOWLEDGE" except as provided expressly herein, means the actual knowledge
or awareness of a Person (which shall include the actual knowledge and awareness
of the executive officers and directors of such Person and, in the case of
VitalStream only, its Subsidiaries) after making reasonable inquiry and
reasonable diligence with respect to the particular matter in question.

     "LAWS" means all constitutions, statutes, laws, treaties, codes,
ordinances, regulations, rules, orders, judgments, writs, injunctions, acts,
determinations, directions or decrees of any Governmental Entity.

     "LEGAL REQUIREMENT" means any requirement arising under any action or Law
of an arbitrator or Governmental Entity, including any Environmental, Health,
and Safety Requirements.

     "LEASE CONSENTS" has the meaning set forth in SECTION 7(a) of this
Agreement.

     "LEASED REAL PROPERTY" means all leasehold or subleasehold estates and
other rights to use or occupy any land, buildings, structures or other
Improvements or interest in Real Property.

     "LIABILITY" means any liability or obligation (whether known or unknown,
whether asserted 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.

     "LIENS" means any mortgage, pledge, restriction, security interest,
encumbrance, option, lien or charge of any kind (including any conditional sale
or other title retention agreement or lease in the nature thereof), any sale of
receivables with recourse against a Party, 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 a
Party 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).

                                      -10-
<Page>

     "LOS ANGELES LEASE AGREEMENT" means that certain Sublease, dated November
15, 1999, by and between Networks and Charter Holdings, Inc., as amended by
First Amendment to Sublease, dated March 1, 2000.

     "LOSS" and "LOSSES" have the meanings set forth in SECTION 8(b) of this
Agreement.

     "MARKET PRICE" of any security means either (a) if such security is listed
on an exchange, the closing prices of such security on the principal exchange on
which such security is listed, or, if there has been no sales on such exchange
on any day, the closing price of such security on the principal exchange on the
most recent day on which sales have taken place on such exchange or (b) if such
security is not listed on an exchange but is quoted in 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, in each case over a period of
five (5) days consisting of the day as of which the "MARKET PRICE" is being
determined and the four (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 Market Value
thereof.

     "MASTER ACCESS AGREEMENT" means that certain Master Access Agreement, dated
as of the Closing Date, by and between VitalStream and Netifice, in the form of
EXHIBIT D attached hereto, as amended, modified, restated, superseded or
replaced from time to time.

     "MERGER AGREEMENT" means that certain merger agreement by and between
VitalStream, VitalStream, Inc. and VitalStream Operating Corporation, dated
February 13, 2002.

     "MERGER CLOSING DATE" means April 23, 2002.

     "MOST RECENT VITALSTREAM BALANCE SHEET" means the balance sheet of
VitalStream as of August 31, 2002, contained within the VitalStream Financial
Statements.

     "NETIFICE" means Netifice Communications Inc., a Delaware corporation.

     "NETIFICE SERVICES AGREEMENT" means that certain Services Agreement, dated
as of October 9, 2002, by and between Netifice and Networks, as amended,
modified, restated, superseded or replaced from time to time.

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

     "NETWORKS CONTRIBUTION AGREEMENT" means that certain Contribution Agreement
dated as of October 4, 2002, by and between Hosting and Networks pursuant to
which Networks contributed the Networks Contributed Assets (as defined in the
Networks Contribution Agreement) and Hosting assumed the Networks Contributed
Liabilities (as defined in the Networks Contribution Agreement), in the form
attached hereto as EXHIBIT E.

     "NETWORKS DEFINED CONTRIBUTION PLAN" has the meaning set forth in SECTION
3(s) of this Agreement.

                                      -11-
<Page>

     "NETWORKS PLANS" has the meaning set forth in SECTION 3(s) of this
Agreement.

     "NEX2 DISPOSITION" has the meaning set forth in SECTION 2(e) of this
Agreement.

     "NEX2 DISPOSITION CONTINGENT SHARES" has the meaning set forth in SECTION
2(e) of this Agreement.

     "NEX2" has the meaning set forth in SECTION 2(e) of this Agreement.

     "NON-MATERIAL ASSETS" means (a) a group of assets or properties with a Fair
Market Value less than or equal to $20,000, in the aggregate, which are used or
held for use by Hosting or Networks in connection with the operation or conduct
of their respective Hosting Businesses and (b) Omitted Hosting Contracts that
the Buyer is deemed to have accepted pursuant to the third sentence of SECTION
6(j)(i) of this Agreement.

     "OMITTED HOSTING CONTRACT" means any contract, lease, account receivable,
license, employment agreement, instrument and other agreement that would have
been a Hosting Contract but for the fact that such contract, lease, account
receivable, license, employment agreement, instrument or other agreement is not
listed on SCHEDULE 3(l) attached hereto.

     "OPINION OF HOSTING'S COUNSEL" means an opinion of Karen Muller, general
counsel to Hosting and Networks, substantially in the form attached hereto as
EXHIBIT F.

     "OPINION OF VITALSTREAM'S COUNSEL" means an opinion of Stoel Rives LLP
legal counsel to VitalStream, substantially in the form attached hereto as
EXHIBIT G.

     "OPTION SHARES" has the meaning set forth in SECTION 2(f) of this
Agreement.

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

     "OTHER NETWORKS PLANS" has the meaning set forth in SECTION 3(s) of this
Agreement.

     "OTHER VITALSTREAM PLANS" has the meaning set forth in SECTION 4(r) of this
Agreement.

     "PARTIES" has the meaning set forth in the preamble of this Agreement.

     "PERMITTED LIENS" means (a) Liens with respect to Taxes not yet due and
payable; (b) deposits or pledges made in connection with, or to secure payment
of, utilities or similar services; (c) mechanics', materialmen's or contractors'
Liens created by statute securing payment for amounts not yet due and payable;
(d) rights of landlords under any Real Property Leases; and (e) in the case of
VitalStream and the VitalStream Subsidiaries, purchase money Liens and Liens
securing rental payments under capital lease arrangements.

     "PERSON" means an individual, a partnership, a corporation, 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.

                                      -12-
<Page>

     "PURCHASE SHARES" has the meaning set forth in SECTION 2(c) of this
Agreement.

     "PURCHASE SHARE DISTRIBUTEES" means Hosting, Networks, Holding, Dolphin
Fund I and Dolphin Fund II

     "PURCHASE SHARE INDEMNITEES" has the meaning set forth in SECTION 8(c)(i)
of this Agreement.

     "QUARTERLY REVENUE CONTINGENT SHARES" has the meaning set forth in SECTION
2(d)(i) of this Agreement.

     "QUARTERLY REVENUE CONTINGENT SHARES STATEMENT" has the meaning set forth
in SECTION 2(d)(ii) of this Agreement.

     "QUARTERLY REVENUE CONTINGENT SHARES PERIOD" has the meaning set forth in
SECTION 2(d)(i) of this Agreement.

     "REAL PROPERTY" means all land, together with all Improvements and all
easements and other rights and interests appurtenant thereto (including air,
oil, gas, mineral and water rights).

     "REAL PROPERTY LEASE" means a lease, sublease, license, concession and
other agreement (written or oral), including all amendments, extensions,
renewals, guaranties and other agreements with respect thereto, pursuant to
which a Person holds any Leased Real Property, including the right to all
security deposits and other amounts and instruments deposited by or on behalf of
such Person thereunder.

     "REGISTRATION AGREEMENT" means that certain Registration Rights Agreement,
dated as of the Closing Date, by and between VitalStream and Hosting in the form
of EXHIBIT H attached hereto, as amended, modified, restated, superseded or
replaced from time to time.

     "RESTRICTED PERIOD" has the meaning set forth in SECTION 6(e)(i)(A) of this
Agreement.

     "RESTRICTED SECURITIES" means (a) the Purchase Shares and (b) any
securities issued with respect to the securities referred to in clause (a) above
by way of a stock dividend or stock split or in connection with a combination of
shares, recapitalization, merger, consolidation or other reorganization. As to
any particular Restricted Securities, such securities shall, subject to the
Escrow Agreement and SECTION 6(c)(v) of this Agreement cease to be Restricted
Securities when they have (i) been effectively registered under the Securities
Act and disposed of in accordance with the registration statement covering them,
(ii) been distributed to the public through a broker, dealer or market maker
pursuant to Rule 144 or become eligible for sale pursuant to Rule 144(k) adopted
by the Securities and Exchange Commission under the Securities Act (as such rule
may be amended from time to time) or any similar rule or regulation hereafter
adopted by the Securities and Exchange Commission or (iii) been otherwise
transferred and new certificates for them not bearing the Securities Act legend
set forth in SECTION 6(c)(i) of this Agreement have been delivered by
VitalStream in accordance with SECTION 6(c) of this Agreement. Whenever any
particular securities cease to be Restricted Securities, the holder thereof
shall be entitled, subject to the Escrow Agreement and SECTION 6(c)(v) of this
Agreement to receive from

                                      -13-
<Page>

VitalStream, without expense, new securities of like tenor not bearing a
Securities Act legend of the character set forth in SECTION 6(c)(i) of this
Agreement.

     "SECURITIES ACT" means the Securities Act of 1933, as amended and the rules
and regulations promulgated thereunder.

     "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.

     "TAX" or "TAXES" means federal, state, county, local, foreign or other
income, gross receipts, ad valorem, franchise, profits, sales or use, transfer,
registration, excise, utility, environmental, communications, real or personal
property, capital stock, income, license, payroll, wage or other withholding,
employment, unemployment, social security, severance, stamp, occupation,
alternative or add-on minimum, estimated and other taxes of any kind whatsoever
(including deficiencies, penalties, additions to tax, and interest attributable
thereto) whether disputed or not and including any obligations to indemnify or
otherwise assume or succeed to the tax Liability of any other Person.

     "TAX RETURN" means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

     "TRANSACTION AGREEMENTS" means this Agreement, the Assignment and
Assumption Agreement, the Bill of Sale, Escrow Agreement, Convertible Promissory
Note and Warrant Purchase Agreement, Customer Migration Agreement, Colocation
Agreement, Master Access Agreement, Registration Agreement, Investor Rights
Agreement and all other agreements and instruments contemplated by each of the
foregoing instruments or agreements to which VitalStream, the Buyer, Hosting or
Networks is a party.

     "TRANSFERRED EMPLOYEES" has the meaning set forth in SECTION 6(d) of this
Agreement.

     "VITALSTREAM" has the meaning set forth in the preamble of this Agreement.

     "VITALSTREAM DEFINED CONTRIBUTION PLAN" has the meaning set forth in
SECTION 4(r) of this Agreement.

                                      -14-
<Page>

     "VITALSTREAM FINANCIAL STATEMENTS" has the meaning set forth in SECTION
4(d) of this Agreement.

     "VITALSTREAM GENERATED QUARTERLY NET REVENUES" has the meaning set forth in
SECTION 2(d)(i) of this Agreement.

     "VITALSTREAM INDEMNITEES" has the meaning set forth in SECTION 8(b)(i) of
this Agreement.

     "VITALSTREAM INTELLECTUAL PROPERTY RIGHTS" has the meaning set forth in
SECTION 4(p) of this Agreement.

     "VITALSTREAM LEASED REAL PROPERTY" has the meaning set forth in SECTION
4(n) of this Agreement.

     "VITALSTREAM MATERIAL ADVERSE EFFECT" means a material and adverse effect
upon the business, operations, assets, liabilities, condition (financial or
otherwise), operating results, prospects, cash flow, net worth or employee,
customer or supplier relations of VitalStream and the VitalStream Subsidiaries
taken as a whole.

     "VITALSTREAM MATERIAL CONTRACTS" has the meaning set forth in SECTION 4(l).

     "VITALSTREAM PARTY" has the meaning set forth in SECTION 5(f)(iii) of this
Agreement.

     "VITALSTREAM PLANS" has the meaning set forth in SECTION 4(r) of this
Agreement.

     "VITALSTREAM PROPOSED AMOUNTS" has the meaning set forth in SECTION
2(d)(ii) of this Agreement.

     "VITALSTREAM REAL PROPERTY LEASES" has the meaning set forth in SECTION
4(n) of this Agreement.

     "VITALSTREAM SECURITIES AND EXCHANGE COMMISSION REPORTS" has the meaning
set forth in SECTION 4(d) of this Agreement.

     "VITALSTREAM SUBSIDIARIES" has the meaning set forth in SECTION 4(a) of
this Agreement.

     "VITALSTREAM TRANSACTION" has the meaning set forth in SECTION 5(f)(iii) of
this Agreement.

     "WARN ACT" means the Worker Adjustment and Retraining Notification Act of
1988, as amended, and any similar applicable foreign, state or local Law.

     2.   BASIC TRANSACTION.

     (a)  PURCHASE AND SALE OF ASSETS. On and subject to the terms and
conditions of this Agreement, at the Closing, the Buyer agrees to purchase from
Hosting and Networks, and Hosting and Networks agree to sell, transfer, assign,
convey and deliver to the Buyer, all of their respective right, title and
interest in and to the Acquired Assets, free and clear of all Liens, Claims,
Indebtedness and restrictions on transfer (except for Permitted Liens, the
Assumed

                                      -15-
<Page>

Liabilities and restrictions on transfer set forth in any Hosting Contract) for
the consideration specified in SECTION 2(b) and SECTION 2(c) of this Agreement.

     (b)  ASSUMPTION OF LIABILITIES.

          (i)     On and subject to the terms and conditions of this Agreement,
     at the Closing, the Buyer agrees to assume and thereafter become
     responsible for and pay, perform or discharge all of the Assumed
     Liabilities.

          (ii)    Each of Hosting and Networks expressly understands and agrees
     that, except for the Assumed Liabilities, the Buying Parties have not
     agreed to pay, will not be required to assume and will have no Liability
     for any Liabilities of Hosting, Networks or any Affiliate of Hosting or
     Networks. Without limiting the breadth of the foregoing, the Buying Parties
     have not agreed to pay, will not be required to assume and will have no
     Liability for the Excluded Hosting Liabilities, which Excluded Hosting
     Liabilities will, as between Hosting and Networks, on the one hand, and the
     Buying Parties, on the other hand, remain the sole responsibility of, and
     will be satisfied by, Hosting and Networks, as the case may be.

          (iii)   The assumption by the Buyer of the Assumed Liabilities, and
     the transfer thereof by Hosting and Networks, shall in no way expand the
     rights or remedies of any third party against VitalStream, the Buyer,
     Hosting, Networks or any of their respective Affiliates, officers,
     directors, employees, shareholders and advisors as compared to the rights
     and remedies which such third party would have had against such parties had
     the Buyer not assumed such Assumed Liabilities. Hosting or Networks, as the
     case may be, shall pay and discharge when due, or contest in good faith,
     any of their respective Liabilities which constitute Excluded Hosting
     Liabilities.

     (c)  CONSIDERATION. In addition to the assumption of the Assumed
Liabilities by the Buyer pursuant to SECTION 2(b) of this Agreement, in
consideration for sale of the Acquired Assets by Hosting and Networks to the
Buyer, VitalStream shall pay to Hosting the Cash Consideration and issue to
Hosting the Purchase Shares, in accordance with this SECTION 2(c).

          (i)     CASH CONSIDERATION. As partial consideration for the sale by
     Hosting and Networks to the Buyer of the Acquired Assets, VitalStream
     agrees to pay to Hosting at Closing cash in the amount of $250,000 (the
     "CASH CONSIDERATION").

          (ii)    PURCHASE SHARES. VitalStream has duly authorized the issuance
     of Common Stock pursuant to the terms of this Agreement. As partial
     consideration for the sale by Hosting and Networks of the Acquired Assets
     to the Buyer, VitalStream agrees to issue to Hosting a number of shares of
     Common Stock (the "INITIAL PURCHASE SHARES") equal to the difference
     between (A) the Fully Diluted Outstanding Common Stock DIVIDED BY 0.835
     MINUS (B) the Fully Diluted Outstanding Common Stock (all such shares of
     Common Stock together with such additional shares of Common Stock issued by
     VitalStream to Hosting pursuant to the terms of this Agreement are
     hereinafter referred to as the "PURCHASE SHARES"). Within ten (10) days of
     the Closing Date, VitalStream shall issue and deliver two stock
     certificates evidencing the Initial Purchase

                                      -16-
<Page>

     Shares as follows: (1) one stock certificate shall evidence a number of
     shares of Common Stock equal to 0.70 multiplied by the number of Initial
     Purchase Shares and shall be issued in the name of, and shall be delivered
     to, Hosting and (2) one stock certificate shall evidence a number of shares
     of Common Stock equal to 0.30 multiplied by the number of Initial Purchase
     Shares and shall be issued in the name of Hosting and shall be delivered to
     the Escrow Agent to be held subject to the terms and conditions of the
     Escrow Agreement. The Initial Purchase Shares delivered to the Escrow Agent
     pursuant to the terms of this Agreement and held by the Escrow Agent
     pursuant to the terms of the Escrow Agreement shall be available to satisfy
     any amounts owed by Hosting or Networks to VitalStream pursuant to SECTION
     8 of this Agreement, in each case subject to the terms of this Agreement
     and the Escrow Agreement.

     (d)  POST-CLOSING ADJUSTMENT IN CONNECTION WITH THE ISSUANCE OF COMMON
STOCK PURSUANT SECTION 1.4(c)(iii) OF THE MERGER AGREEMENT.

          (i)     If VitalStream is required to issue any portion of the
     8,789,907 shares of Common Stock (the "QUARTERLY REVENUE CONTINGENT
     SHARES") pursuant to Section 1.4(b) and Section 1.4(c)(iii) of the Merger
     Agreement (which number of shares of Common Stock shall be determined in
     accordance with the Merger Agreement based upon VitalStream's and its
     Subsidiaries' highest quarterly consolidated net revenue for any calendar
     quarter during the period (the "QUARTERLY REVENUE CONTINGENT SHARES
     PERIOD") beginning on the Merger Closing Date and ending on September 30,
     2003 (the calendar quarter during such period in which such highest
     quarterly consolidated net revenue occurs shall hereinafter be referred to
     as the "HIGHEST CALENDAR QUARTER" and the consolidated net revenue of
     VitalStream and its Subsidiaries generated during the Highest Calendar
     Quarter shall hereinafter be referred to as the "HIGHEST CALENDAR QUARTER
     NET REVENUES")), VitalStream shall, simultaneously with the issuance of
     such Quarterly Revenue Contingent Shares, deliver to Hosting a stock
     certificate registered in the name of Hosting evidencing an additional
     number of shares of Common Stock in an amount equal to: (A) if (1) the
     Highest Calendar Quarter Net Revenues is equal to or greater than
     $3,000,000 and (2) the difference (such difference shall hereinafter be
     referred to as the "VITALSTREAM GENERATED QUARTERLY NET REVENUES") between
     (x) the Highest Calendar Quarter Net Revenues MINUS (y) that portion of the
     Highest Calendar Quarter Net Revenues (such portion of the Highest Calendar
     Quarter Net Revenues shall hereinafter be referred to as the "ACQUIRED
     ASSETS GENERATED QUARTERLY NET REVENUES") generated by or from any of the
     Hosting Business Customers, is equal to or greater than $3,000,000, then
     zero; (B) if the Highest Calendar Quarter Net Revenues is equal to or
     greater than $3,000,000 and the VitalStream Generated Quarterly Net
     Revenues is less than $3,000,000, the product of (1) the number of
     Quarterly Revenue Contingent Shares actually issued by VitalStream and (2)
     a fraction, the numerator of which shall be the difference between (x)
     $3,000,000 MINUS (y) the VitalStream Generated Quarterly Net Revenues, and
     the denominator of which shall be $3,000,000; and (C) if the Highest
     Calendar Quarter Net Revenues is less than $3,000,000, the product of (1)
     the number of Quarterly Revenue Contingent Shares actually issued by
     VitalStream and (2) a fraction, the numerator of which shall be the
     Acquired Assets Generated Quarterly Net Revenues and the denominator of
     which shall be the Highest Calendar Quarter Net Revenues.

                                      -17-
<Page>

          (ii)    Simultaneously with the issuance of any Quarterly Revenue
     Contingent Shares pursuant to Section 1.4(b) and Section 1.4(c)(iii) of the
     Merger Agreement, VitalStream shall prepare and deliver to Hosting a
     statement (the "QUARTERLY REVENUE CONTINGENT SHARES STATEMENT") setting
     forth the number of Quarterly Revenue Contingent Shares issued, the Highest
     Calendar Quarter Net Revenues, the VitalStream Generated Quarterly Net
     Revenues and the Acquired Assets Generated Quarterly Net Revenues (the
     amounts so determined by VitalStream and set forth in the Quarterly Revenue
     Contingent Shares Statement being hereinafter respectively referred to as
     the "VITALSTREAM PROPOSED AMOUNTS"). Hosting shall have fifteen (15) days
     after their receipt of such statement to review the VitalStream Proposed
     Amounts. VitalStream shall make the work papers, books, records and other
     back-up materials used by VitalStream in preparing the Quarterly Revenue
     Contingent Shares Statement or otherwise requested by Hosting available to
     Hosting and its accountants and other representatives at reasonable times
     and upon reasonable notice during the (A) preparation by VitalStream of the
     Quarterly Revenue Contingent Shares Statement, (B) the fifteen (15) day
     period referred to above and (C) resolution by the Parties of any
     objections raised by Hosting to the VitalStream Proposed Amounts set forth
     in the Quarterly Revenue Contingent Shares Statement. If Hosting shall
     deliver to VitalStream a notice indicating its disagreement with any of the
     VitalStream Proposed Amounts during the fifteen (15) day period referred to
     above, the Parties shall, in good faith, attempt to resolve the
     disagreement as to such contested VitalStream Proposed Amounts within
     fifteen (15) days after VitalStream's receipt of such notice. If the
     Parties fail to resolve such disagreement (a "DISPUTE") within such time
     period, the Parties shall promptly refer such disagreement for resolution
     to a Deciding Accountant in accordance with the provision of SECTION
     2(d)(iii) of this Agreement. The number of Quarterly Revenue Contingent
     Shares issued, the Highest Calendar Quarter Net Revenues, the VitalStream
     Generated Quarterly Net Revenues and the Acquired Assets Generated
     Quarterly Net Revenues as agreed to by the Parties or as determined by the
     Deciding Accountant shall be final and binding for all purposes of this
     Agreement.

          (iii)   In the event the Parties refer a Dispute to an accounting
     firm, such accounting firm shall be selected by lot (from a group of six
     Western-regional accounting firms agreed upon by the Parties after
     excluding the respective regular outside accounting firms of VitalStream,
     Hosting and Networks) (the "DECIDING ACCOUNTANT"). Each of the Parties
     shall promptly furnish to the Deciding Accountant, at their own cost and
     expense, such documents and information as the Deciding Accountant may
     request in connection with such Dispute. The Deciding Accountant shall be
     instructed to report its determination of the Dispute in writing to each of
     the Parties within thirty (30) days after such engagement. The fees and
     expenses payable to the Deciding Accountant with respect to all disputes
     subject to the procedure set forth in SECTION 2(d)(ii), up to $15,000 in
     the aggregate, shall be borne by VitalStream after which all such fees and
     expenses shall be paid 50% by Hosting and Networks, on the one hand, and
     50% by VitalStream, on the other hand.

          (iv)    All amounts calculated for purposes of this SECTION 2(d) shall
     be calculated from the books and records of VitalStream in accordance with
     GAAP applied on a consistent basis in accordance with VitalStream's past
     practice.

                                      -18-
<Page>

          (v)     Any additional shares of Common Stock issued by VitalStream
     pursuant to this SECTION 2(d) shall not be subject to the terms of the
     Escrow Agreement.

     (e)  POST-CLOSING ADJUSTMENT IN CONNECTION WITH THE ISSUANCE OF COMMON
STOCK PURSUANT SECTION 1.4(c)(iv) OF THE MERGER AGREEMENT. If VitalStream is
required to issue any portion of the 1,318,488 shares of Common Stock (the "NEX2
DISPOSITION CONTINGENT SHARES") pursuant to Section 1.4(b) and Section
1.4(c)(iv) of the Merger Agreement as a result of the disposition of Nex2, Inc.
("NEX2") by VitalStream (the "NEX2 DISPOSITION"), VitalStream shall,
simultaneously with the issuance of such Nex2 Disposition Contingent Shares,
deliver to Hosting a stock certificate registered in the name of Hosting
evidencing an additional number of shares of Common Stock in an amount equal to
the difference between (i) the number of Nex2 Disposition Contingent Shares
divided by 0.835 MINUS (ii) the number of Nex2 Disposition Contingent Shares.
Any additional shares of Common Stock issued by VitalStream pursuant to this
SECTION 2(e) shall not be subject to the terms of the Escrow Agreement.

     (f)  POST-CLOSING ADJUSTMENT IN CONNECTION WITH THE ISSUANCE OF COMMON
STOCK PURSUANT SECTION 1.4(c)(v) OF THE MERGER AGREEMENT. If VitalStream is
required to issue any portion of the 1,133,905 shares of Common Stock (the
"OPTION SHARES") pursuant to Section 1.4(b) and Section 1.4(c)(v) of the Merger
Agreement as a result of the amount of proceeds received by VitalStream in
connection with the exercise of the "Outstanding Parent Options" (as defined in
the Merger Agreement), VitalStream shall, simultaneously with the issuance of
such Option Shares, deliver to Hosting a stock certificate registered in the
name of Hosting evidencing an additional number of shares of Common Stock in an
amount equal to the difference between (i) the number of Option Shares divided
by 0.835 MINUS (ii) the number of Option Shares. Any additional shares of Common
Stock issued by VitalStream pursuant to this SECTION 2(f) shall not be subject
to the terms of the Escrow Agreement.

     (g)  ALLOCATION OF CONSIDERATION. The Parties agree to allocate the
aggregate consideration to be paid for the Acquired Assets in accordance with
Section 1060 of the Code. The Parties agree that VitalStream shall prepare and
provide to Hosting a draft allocation of the consideration to be paid among the
Acquired Assets within ninety (90) calendar days after the Closing Date. The
Parties agree that the amount of consideration to be allocated to the tangible
personal property or assets which constitute part of the Acquired Assets in
connection with the allocation of the aggregate consideration to be paid for the
Acquired Assets (as adjusted pursuant to SECTION 2(d), SECTION 2(e) and SECTION
2(f) of this Agreement) pursuant to this SECTION 2(g) shall be $100,000. Hosting
shall notify VitalStream within thirty (30) calendar days of receipt of such
draft allocation of any objection Hosting may have thereto. The Parties agree to
resolve any disagreement with respect to such allocation in good faith. In
addition, the Parties hereby undertake and agree to file timely any information
that may be required to be filed pursuant to Treasury Regulations promulgated
under Section 1060(b) of the Code, and shall use the allocation determined
pursuant to this SECTION 2(g) in connection with the preparation of Internal
Revenue Service Form 8594 as such form relates to the transactions contemplated
by this Agreement. No Party shall file any Tax Return or other document or
otherwise take any position which is inconsistent with the allocation determined
pursuant to this Section except as may be adjusted by subsequent agreement
following an audit by the Internal Revenue Service or by court decision.

                                      -19-
<Page>

     (h)  THE CLOSING. The closing of the transactions contemplated by this
Agreement (the "CLOSING") shall take place at the offices of VitalStream located
at One Jenner, Suite 100, Irvine, California 92618 commencing at 9:00 a.m. local
time on the date of satisfaction or waiver of all conditions to the obligations
of the Parties to consummate the transactions contemplated hereby (other than
conditions with respect to actions the Parties will take at the Closing itself)
or such other date as the Parties may mutually determine in writing (the
"CLOSING Date").

     (i)  DELIVERIES AT THE CLOSING. At the Closing: (i) Hosting and/or Networks
will deliver to the VitalStream the various certificates, instruments and
documents referred to in SECTION 7(a) of this Agreement; (ii) the Buying Parties
will deliver to Hosting and Networks the various certificates, instruments and
documents referred to in SECTION 7(b) of this Agreement; (iii) Hosting and
Networks will execute and deliver to the Buyer (A) the instrument of assignment
substantially in the form of EXHIBIT J attached hereto (the "ASSIGNMENT AND
ASSUMPTION AGREEMENT"), (B) the instrument of sale, transfer, conveyance, and
assignment substantially in the form of EXHIBIT K attached hereto (the "BILL OF
SALE"), and (C) such other instruments, certificates and agreements as
VitalStream and its counsel may reasonably request (including any documents
evidencing the transfer of the Hosting Intellectual Property Rights); (iv) the
Buyer will execute and deliver to Hosting and Networks (A) the Assignment and
Assumption Agreement and (B) such other instruments, certificates and agreements
as Hosting, Networks and their counsel may reasonably request; (v) VitalStream
will execute and deliver to Hosting (A) the Cash Consideration by wire transfer
of immediately available funds (B) the Assignment and Assumption Agreement and
(C) such other instruments, certificates and agreements as Hosting and its
counsel may reasonably request; and (vi) VitalStream will execute and deliver to
Networks (A) the Assignment and Assumption Agreement and (B) such other
instruments, certificates and agreements as Networks and its counsel may
reasonably request.

     (j)  POST-CLOSING DELIVERIES. Within 10 days following the Closing Date,
(i) VitalStream will execute and deliver to Hosting a stock certificate
evidencing the Initial Purchase Shares to be issued to Hosting pursuant to
SECTION 2(c)(ii) of this Agreement registered in the name of Hosting and (ii)
VitalStream will execute and deliver to the Escrow Agent a stock certificate
evidencing the Initial Purchase Shares to be escrowed pursuant to SECTION
2(c)(ii) of this Agreement, registered in the name of Hosting.

     3.   REPRESENTATIONS AND WARRANTIES OF HOSTING AND NETWORKS. As a material
inducement to the Buying Parties to enter into this Agreement, Hosting and
Networks, jointly and severally, hereby represent and warrant to the Buying
Parties that the statements contained in this SECTION 3 are correct and complete
as of the date hereof (or on the date as of which they are made, in the case of
any representation or warranty which specifically relates to an earlier date).

     (a)  ORGANIZATION, CORPORATE POWER AND LICENSES. Each of Hosting and
Networks is a corporation duly organized, validly existing and in good standing
under the Laws of its respective jurisdiction of incorporation and is qualified
to do business in every jurisdiction in which such qualification is required,
except where failure to be so qualified would not reasonably be expected to have
a Hosting Material Adverse Effect. Each of Hosting and Networks possesses all
requisite corporate power and authority and all material licenses, permits and
authorizations necessary to own and operate its properties, to carry on its
Hosting Business

                                      -20-
<Page>

as now conducted and presently proposed to be conducted and to carry out the
transactions contemplated by this Agreement and the other Transaction Agreements
to which it is a party except where such failure would not reasonably be
expected to have a Hosting Material Adverse Effect. SCHEDULE 3(a) contains a
list of all jurisdictions in which each of Hosting and Networks are qualified or
licensed to do business and a list of all of the Hosting Permits and Licenses.
The copies of Hosting's and Networks' charter documents and bylaws to which
VitalStream has been provided access reflect all amendments made thereto at any
time prior to the date of this Agreement and are correct and complete.

     (b)  APPROVAL AND CONSENTS; AUTHORIZATION; NO BREACH. Each of Hosting and
Networks has full power and authority (including full corporate power and
authority) to execute and deliver this Agreement and each of the other
Transaction Agreements to which it is a party and to perform its obligations
hereunder and thereunder. Without limiting the generality of the foregoing, the
execution and delivery by each of Hosting and Networks and the performance by
each of Hosting and Networks of this Agreement and each of the other Transaction
Agreements to which it is a party, and the consummation of the transactions
contemplated by this Agreement and the other Transaction Agreements have been
duly authorized by the respective boards of directors of each of Hosting and
Networks, by Networks, as the sole shareholder of Hosting, and by Holdings, as
the sole shareholder of Networks. Except as described above, no other corporate
proceedings on the part of Hosting or Networks are necessary to authorize the
execution and delivery of this Agreement or any other Transaction Agreements by
Hosting and Networks and the consummation by Hosting and Networks of the
transactions contemplated by this Agreement and the other Transaction
Agreements. Each of this Agreement and the other Transaction Agreements to which
Hosting or Networks is a party constitutes a valid and binding obligation of
Hosting and Networks enforceable in accordance with its terms, except as such
enforceability may be limited by (i) applicable insolvency, bankruptcy,
reorganization, moratorium or other similar Laws affecting creditors' rights
generally, and (ii) applicable equitable principles (whether considered in a
proceeding at law or in equity). Except as set forth on SCHEDULE 3(b) attached
hereto, the execution and delivery by Hosting and Networks of this Agreement and
the other Transaction Agreements to which Hosting or Networks is a party, and
the fulfillment of and compliance with the respective terms hereof and thereof
by Hosting and Networks do not and shall not (i) conflict with or result in a
breach of the terms, conditions or provisions of, (ii) constitute a default
under or result in the violation of, (iii) result in the creation of any Lien
upon Hosting's or Networks' capital stock or assets pursuant to, (iv) give any
third party the right to modify, terminate or accelerate any obligation under,
or (v) require any authorization, consent, approval, exemption or other action
by or notice or declaration to, or filing with, any third party or any
Governmental Entity (other than any filings required by state and federal
securities Laws) pursuant to, (A) the charter documents or bylaws of Hosting or
Networks, (B) any Law or Legal Requirement to which Hosting or Networks is
subject, or (C) any material agreement, instrument, order, judgment or decree to
which Hosting or Networks is subject.

     (c)  SUBSIDIARIES. All of the issued and outstanding Equity Securities of
Hosting are owned by Networks. All of the issued and outstanding Equity
Securities of Networks are owned by Holdings. Hosting has no Subsidiaries and
does not own or control, directly or indirectly, any shares of capital stock of
any other corporation or any interest in any partnership, joint venture or other
non-corporate business enterprise.

                                      -21-
<Page>

     (d)  HOSTING FINANCIAL STATEMENTS.

          (i)     Hosting has provided to VitalStream the following financial
     statements (collectively, as to the financial statements set forth in
     Section 3(d)(i)(A) and Section 3(d)(i)(B) of this Agreement, the "HOSTING
     FINANCIAL STATEMENTS"), each of which is attached to this Agreement as
     EXHIBIT M:

                  (A)  an unaudited pro forma balance sheet of the Hosting
          Business of Hosting and Networks as of August 31, 2002 (the "HOSTING
          BALANCE SHEET"), and the related pro forma statements of operations,
          and cash flows as of and for the one month ended August 31, 2002; and

                  (B)  an unaudited balance sheet of the Hosting Business of
          Hosting as of August 31, 2002, and the related statements of
          operations and cash flows as of and for the eight months ended August
          31, 2002.

          (ii)    The Hosting Financial Statements (A) are accurate and complete
     in all material respects, (B) are consistent with the books and records of
     Hosting and Networks, as the case may be (each of which, in turn, are
     accurate and complete in all material respects), (C) were prepared in
     accordance with GAAP applied on a consistent basis during the respective
     periods involved (except as may be indicated therein or in the notes, if
     any, thereto), subject to normal year-end audit adjustments, which will not
     be material either individually or in the aggregate, and an absence of
     required footnotes and (D) fairly present the financial position of the
     Hosting Business of Hosting and Networks as at the date thereof and the
     results of their operations and cash flows for the respective periods then
     ended.

          (iii)   The total revenues of the Hosting Business conducted by
     Networks and Hosting for the one month ended August 31, 2002 was $260,798
     (which amount includes revenues generated by customers of Networks which
     shall not be contributed by Networks to Hosting pursuant to the Networks
     Contribution Agreement).

     (e)  NOTES AND ACCOUNTS RECEIVABLE; NOTES AND ACCOUNTS PAYABLE.

          (i)     All notes and accounts receivable of Hosting (including those
     accounts receivable of Networks which were contributed to Hosting pursuant
     to the Networks Contribution Agreement) are reflected properly on its books
     and records, are valid receivables arising from bona fide transactions in
     the Ordinary Course of Business subject to no setoffs, Claims or refusals
     to pay, are current and collectible, and will be collected in accordance
     with their terms at their recorded amounts, subject only to the reserve for
     bad debts set forth on the face of the Hosting Balance Sheet (rather than
     in any notes thereto) as adjusted for the passage of time through the
     Closing Date in accordance with the past custom and practice of Hosting and
     Networks. SCHEDULE 3(e) attached hereto contains a listing of all of the
     accounts receivable of each of Hosting and Networks (provided, in the case
     of Networks, solely to the extent arising solely from the conduct by
     Networks of its Hosting Business) as of August 31, 2002. Except as set
     forth on SCHEDULE 3(e) attached hereto, as of August 31, 2002, (a) no
     account or note debtor of

                                      -22-
<Page>

     Hosting is delinquent in payment by more than sixty (60) days and (b) the
     aging schedule of the accounts receivable and notes receivable of Hosting
     included in SCHEDULE 3(e) attached hereto is complete and accurate.

          (ii)    SCHEDULE 3(e) attached hereto contains a listing of all
     accounts payable and notes payable (which shall include any service level
     agreement credits, services or goods that have been paid for but not
     provided or delivered, and similar items) that each of Hosting and Networks
     (provided, in the case of Networks, solely to the extent arising solely
     from the conduct by Networks of its Hosting Business) will owe (or have any
     Liability with respect to) as of August 31, 2002. Except as set forth on
     SCHEDULE 3(e) attached hereto, as of August 31, 2002, all such accounts
     payable and notes payable arose from bona fide transactions in the Ordinary
     Course of Business and, no such account payable or note payable is
     delinquent by more than sixty (60) days in its payment.

     (f)  GUARANTIES. Except as set forth on SCHEDULE 3(f) attached hereto,
Hosting is not a guarantor of or otherwise is liable for, and no assets or
properties of Hosting are subject to, or security for, any Liability (including
Indebtedness) of any other Person.

     (g)  TITLE TO ASSETS; CONDITION OF ASSETS; SUFFICIENCY OF ASSETS. Either
Hosting or Networks has good and marketable title to, or a valid leasehold
interest in, the Acquired Assets (other than properties and assets disposed of
in the Ordinary Course of Business since the date of the Hosting Balance Sheet),
free and clear of all Liens, Claims, Indebtedness and restrictions on transfer,
except for (i) Permitted Liens and (ii) the Liens set forth on SCHEDULE 3(g)
attached hereto. All of the equipment and other tangible assets included in the
Acquired Assets are free from material defects (patent or latent), have been
maintained in good operating condition and repair (subject to normal wear and
tear), and are suitable for the purpose for which they presently are used by
Hosting and Networks in the conduct of their respective Hosting Businesses.
Except for (i) the Excluded Hosting Assets, (ii) any Non-Material Assets, (iii)
any properties or assets (tangible or intangible) needed to supply the services
provided to Networks and Hosting pursuant to the Hosting Services Agreement,
(iv) any properties or assets (tangible or intangible) needed to supply the
services provided to Hosting pursuant to the Netifice Services Agreement, (v)
any properties or assets (tangible or intangible) needed to supply the services
provided to Hosting pursuant to the Customer Migration Agreement, (vi) any
properties or assets (tangible or intangible) needed to supply the services
provided to Hosting pursuant to the Master Access Agreement and (vii) any
properties or assets (tangible or intangible) set forth on SCHEDULE 3(g)
attached hereto, the Acquired Assets include all of the properties or assets
(tangible or intangible) necessary for the Buyer to, and used immediately prior
to the Closing by Hosting to, (x) conduct the Hosting Business as presently
conducted by Hosting and (y) conduct the Hosting Business as conducted by
Networks immediately prior to the consummation of the transactions contemplated
by the Networks Contribution Agreement.

     (h)  ABSENCE OF UNDISCLOSED LIABILITIES. Neither Hosting nor Networks
(provided, in the case of Networks, solely with respect to the conduct by
Networks of its Hosting Business) has any Liability (and there is no basis for
any present or future Claim giving rise to any Liability), except for (i)
Liabilities not required to be reflected on a balance sheet of the Hosting
Business conducted by Hosting and Networks prepared in accordance with GAAP
consistently applied in accordance with Hosting's and Networks' past practice,
(ii) Liabilities set forth on the

                                      -23-
<Page>

face of the Hosting Balance Sheet (rather than in any notes thereto), (iii)
Liabilities which have arisen after the date of the Hosting Balance Sheet in the
Ordinary Course of Business (none of which results from, arises out of, relates
to, is in the nature of, or was caused by any Claim, breach of contract, breach
of warranty, tort, infringement, Environmental, Health, and Safety Requirements
or violation of Law) and (iv) the Assumed Liabilities.

     (i)  ABSENCE OF CERTAIN DEVELOPMENTS. Except as set forth in SCHEDULE 3(i)
attached hereto and for the transactions contemplated by this Agreement and the
other Transaction Agreements, since August 31, 2002, no event has occurred or is
anticipated, and no fact or facts exists, that individually or in the aggregate
have had or could have a Hosting Material Adverse Effect. Without limiting the
generality of the foregoing, since August 31, 2002, neither Networks nor Hosting
(provided, in the case of Networks, with respect to each of the following items,
solely with respect to the conduct by Networks of its Hosting Business):

          (i)     has sold, leased, transferred, or assigned any of its assets,
     tangible or intangible necessary for, or useful in, the conduct by Hosting
     or Networks of their respective Hosting Businesses, other than for a fair
     consideration in the Ordinary Course of Business;

          (ii)    has entered into any agreement, contract, lease, or license
     (or series of related agreements, contracts, leases, and licenses) either
     involving more than $25,000 or outside the Ordinary Course of Business;

          (iii)   has accelerated, terminated, modified, or cancelled any
     agreement, contract, lease, or license (or series of related agreements,
     contracts, leases, and licenses) involving more than $25,000 to which
     Hosting or Networks is a party or by which either of them is bound (and no
     other party to any such agreement, contract, lease, or license (or series
     of related agreements, contracts, leases, and licenses) has accelerated,
     terminated, modified, or cancelled any such agreement, contract, lease, or
     license (or series of related agreements, contracts, leases, and licenses);

          (iv)    has imposed, or permitted to exist, any Liens (except for
     Permitted Liens) upon any of its assets, tangible or intangible;

          (v)     has made any capital expenditure (or series of related capital
     expenditures) either involving more than $25,000 or outside the Ordinary
     Course of Business;

          (vi)    has made any Investment in, any loan to, or any acquisition of
     the assets of, any other Person (or series of related capital Investments,
     loans, and acquisitions) outside the Ordinary Course of Business;

          (vii)   has issued any Debt Security or created, incurred, assumed, or
     Guaranteed any Indebtedness for borrowed money or capitalized lease
     obligation either involving more than $10,000 singly or $50,000 in the
     aggregate;

          (viii)  has delayed or postponed the payment of accounts payable or
     other Liabilities outside the Ordinary Course of Business;

                                      -24-
<Page>

          (ix)    has cancelled, compromised, waived, or released any right or
     Claim (or series of related rights and Claims) either involving more than
     $10,000 or outside the Ordinary Course of Business;

          (x)     has granted any license or sublicense of any rights under or
     with respect to any Hosting Intellectual Property Rights, other than in the
     Ordinary Course of Business;

          (xi)    has experienced any damage, destruction, or loss (whether or
     not covered by insurance) to its properties or assets;

          (xii)   has made any loan to, or entered into any other transaction
     with, any of its Affiliates, stockholders, directors, officers or employees
     outside the Ordinary Course of Business;

          (xiii)  has entered into any employment contract or collective
     bargaining agreement, written or oral, or modified the terms of any
     existing such contract or agreement relating to or affecting any employee
     of Hosting or Networks;

          (xiv)   has granted any increase in the base compensation of any of
     the directors, officers or employees of Hosting or Networks outside the
     Ordinary Course of Business or has granted any increase at all in the base
     compensation of any of the Transferred Employees;

          (xv)    has adopted, amended, modified, or terminated any bonus,
     profit sharing, incentive, severance, or other plan, contract, or
     commitment for the benefit of any of the directors, officers or employees
     of Hosting or Networks, or taken any such action with respect to any other
     Employee Benefit Plan;

          (xvi)   has made any other change in employment terms for any of the
     directors, officers or employees of Hosting or Networks outside the
     Ordinary Course of Business or has made any change at all in the employment
     terms for any of the Transferred Employees; and

          (xvii)  has not collected any accounts receivable out of the Ordinary
     Course of Business; and

          (xviii) has committed to any of the foregoing.

     (j)  COMPLIANCE WITH LAWS. Except as set forth in SCHEDULE 3(j) attached
hereto, neither Networks nor Hosting (provided, in the case of Networks, with
respect to each of the following items, solely with respect to the conduct by
Networks of its Hosting Business) has violated any Law or Legal Requirement and
neither Hosting nor Networks has not received any written notice alleging any
such violation.

     (k)  LITIGATION. Except as set forth in SCHEDULE 3(k) attached hereto,
neither Networks nor Hosting (provided, in the case of Networks, solely with
respect to the conduct by Networks of its Hosting Business) is (i) subject to
any outstanding injunction, judgment, order, decree, ruling, or charge or (ii) a
party or, to the Knowledge of Hosting and Networks, threatened to be

                                      -25-
<Page>

made a party to any Claim at law or in equity, before any Governmental Entity or
that could come before any arbitrator. None of the Claims set forth in SCHEDULE
3(k) attached hereto could, either individually or in the aggregate, result in
or have a Hosting Material Adverse Effect. To the Knowledge of Hosting and
Networks, neither Hosting nor Networks has any reason to believe that any such
Claim may be brought against Hosting or Networks.

     (l)  CONTRACTS AND COMMITMENTS.

          (i)     Except as expressly contemplated by this Agreement or as set
     forth in SCHEDULE 3(l) attached hereto, neither Networks nor Hosting
     (provided, in the case of Networks, with respect to each of the following
     items, solely with respect to the conduct by Networks of its Hosting
     Business) is a party to or bound by any written or oral:

                  (A)  pension, profit sharing, stock option, employee stock
          purchase or other plan or arrangement providing for deferred or other
          compensation to employees or any other employee benefit plan or
          arrangement, or any collective bargaining agreement or any other
          contract with any labor union, or severance agreements, programs,
          policies or arrangements;

                  (B)  contract for the employment of any officer, individual
          employee or other Person on a full-time, part-time, consulting or
          other basis providing annual compensation in excess of $75,000 or
          contract relating to loans to officers, directors or Affiliates
          (unless terminable at will without severance obligations);

                  (C)  contract or agreement with any Governmental Entity
          entered into outside the Ordinary Course of Business;

                  (D)  contract under which Hosting or Networks has advanced or
          loaned any other Person amounts in the aggregate exceeding $10,000;

                  (E)  agreement or indenture relating to borrowed money or
          other Indebtedness or the mortgaging,  pledging or otherwise placing a
          Lien  (other  than a  Permitted  Lien) on any  assets  of  Hosting  or
          Networks;

                  (F)  Guarantee of any Liability of any Person;

                  (G)  settlement, conciliation or similar agreement under which
          such party has any future obligations or Liability;

                  (H)  lease or agreement under which Hosting is lessee of or
          holds or operates any property, real or personal, owned by any other
          party, except for any lease of real or personal property under which
          the aggregate annual rental payments do not exceed $25,000;

                  (I)  lease or agreement under which Hosting or Networks is
          lessor of or permits any third party to hold or operate any property,
          real or personal, owned or controlled by Hosting Networks;

                                      -26-
<Page>

                  (J)  contract or group of related contracts with the same
          party or group of Affiliated parties the performance of which involves
          the payment by Hosting or Networks of consideration in excess of
          $25,000 annually;

                  (K)  assignment, license, indemnification or agreement with
          respect to any intangible property (including any Hosting Intellectual
          Property Rights) entered into outside the Ordinary Course of Business;

                  (L)  warranty agreement with respect to its services rendered
          or its products sold or leased;

                  (M)  agreement under which it has granted any Person any
          registration rights (including demand and piggyback registration
          rights), any rights of first refusal or vetoes on the sale of the
          Acquired Assets;

                  (N)  agreement relating to any Investment;

                  (O)  contract or agreement prohibiting it from freely engaging
          in any business or competing anywhere in the world; or

                  (P)  any other agreement which is material to the operation of
          its Hosting Business or business prospects or involves a consideration
          in excess of $25,000 annually.

          (ii)    All of the contracts, agreements and instruments referenced on
     SCHEDULE 3(l) attached hereto (the "HOSTING MATERIAL CONTRACTS") are valid,
     binding and enforceable in accordance with their respective terms, except
     as such enforceability may be limited by (i) applicable insolvency,
     bankruptcy, reorganization, moratorium or other similar Laws affecting
     creditors' rights generally, and (ii) applicable equitable principles
     (whether considered in a proceeding at law or in equity). Hosting or
     Networks, as the case may be, has performed all material obligations
     required to be performed by it under the Hosting Material Contracts and is
     not in default under or in breach of nor in receipt of any claim of default
     or breach under any Hosting Material Contracts; no event has occurred which
     with the passage of time or the giving of notice or both would result in a
     default, breach or event of noncompliance by Hosting or Networks, as the
     case may be, under any of the Hosting Material Contracts; neither Hosting
     nor Networks has any present expectation or intention of not fully
     performing all such obligations; neither Hosting nor Networks has any
     Knowledge of any breach or anticipated breach of any material obligation to
     be performed by the other parties to any of the Hosting Material Contracts.

          (iii)   VitalStream has been provided access to a true and correct
     copy of each of the written Hosting Material Contracts, together with all
     amendments, waivers or other changes thereto, and an accurate description
     of each of the oral Hosting Material Contracts.

     (m)  TAX MATTERS.

                                      -27-
<Page>

          (i)     Except as set forth in SCHEDULE 3(m) attached hereto, each of
     Hosting and Networks has filed all Tax Returns which it is required to file
     under applicable Laws. All such Tax Returns are complete and correct and
     have been prepared in compliance with all applicable Laws in all material
     respects. Each of Hosting and Networks has paid all Taxes due and owing by
     it (whether or not such Taxes are required to be shown on a Tax Return) and
     have withheld and paid over to the appropriate taxing authority all Taxes
     which they were or are required to withhold from amounts paid or owing to
     any employee, stockholder, creditor or other third party. Neither Hosting
     nor Networks has waived any statute of limitations with respect to any
     Taxes or agreed to any extension of time with respect to any Tax assessment
     or deficiency. The accrual for Taxes on the Hosting Balance Sheet would be
     adequate to pay all Tax Liabilities of Hosting and Networks (provided, in
     the case of Networks, solely with respect to the conduct of by Networks of
     its Hosting Business) (A) if Hosting's current Tax year were treated as
     ending on the date of the Hosting Balance Sheet (excluding any amount
     recorded which is attributable solely to timing differences between book
     and Tax income), and (B) if Hosting's current Tax year were treated as
     ending on the Closing Date and the accrual for Taxes on the Hosting Balance
     Sheet was adjusted with the past custom and practice of Hosting in filing
     its Tax Returns. Since the date of the Hosting Balance Sheet, neither
     Hosting nor Networks has incurred any Liability for Taxes other than in the
     Ordinary Course of Business. The assessment of any additional Taxes or
     Hosting or Networks for periods for which Tax Returns have been filed by
     Hosting or Networks shall not exceed the recorded Liability therefor on the
     Hosting Balance Sheets (excluding any amount recorded which is attributable
     solely to timing differences between book and Tax income). There has not
     been any audit of any Tax Return filed by Hosting or Networks. Neither
     Hosting nor Networks has consented to any waiver of the statute of
     limitations for the assessment of any Taxes and had not requested any
     extension of time for the payment of any Taxes. There are no Liens for
     Taxes (other than Permitted Liens) upon any of the assets of Hosting or
     Networks. No Claim has ever been made by an authority in a jurisdiction
     where neither Hosting nor Networks file Tax Returns that either Hosting or
     Networks is or may be subject to Taxation by that jurisdiction. No foreign,
     federal, state or local Tax audits or administrative or judicial
     proceedings are pending or being conducted with respect to Hosting or
     Networks. No information related to Tax matters has been requested by any
     foreign, federal, state or local Taxing authority, no written notice
     indicating an intent to open an audit or other review has been received by
     Hosting or Networks from any foreign, federal, state or local Taxing
     authority, and no notice of deficiency or proposed adjustment for any
     amount of Tax proposed, asserted or assessed by a Taxing authority against
     Hosting or Networks has been received by Hosting or Networks and there are
     no material unresolved questions or claims concerning Hosting's or
     Networks' Tax Liability.

          (ii)    Neither Hosting nor Networks has made an election under
     Section 341(f) of the Code. Neither Hosting nor Networks is liable for the
     Taxes of another Person that is not a Subsidiary under (A) Treas. Reg.
     Section 1.1502-6 (or comparable provisions of state, local or foreign Law),
     (B) as a transferee or successor, (C) by contract or indemnity or (D)
     otherwise. Neither Hosting nor Networks is a party to any Tax allocation or
     sharing agreement. Neither Hosting nor Networks has made any payments, is
     obligated

                                      -28-
<Page>

     to make payments or is a party to an agreement that could obligate it to
     make any payments that would not be deductible under Section 280G of the
     Code.

     (n)  REAL PROPERTY.

          (i)     Hosting does not own any Real Property. Networks does not own
     any Real Property. Hosting is not a party to any agreement or option to
     purchase any Real Property or interest therein.

          (ii)    SCHEDULE 3(n)(ii) attached hereto sets forth a true and
     complete list of (A) the address of each parcel of all Leased Real Property
     that is used or held for use by Hosting or Networks in connection with, the
     operation of their respective Hosting Business as currently operated by
     each of them (collectively, the "HOSTING LEASED REAL PROPERTY") and (B) the
     date and the names of the parties to each Real Property Lease in respect of
     each parcel of Hosting Leased Real Property (collectively, the "HOSTING
     REAL PROPERTY LEASES"). Hosting and Networks has delivered to VitalStream a
     true and complete copy of each written Hosting Real Property Lease, and in
     the case of any oral Hosting Real Property Lease, a written summary of the
     material terms of such Hosting Real Property Lease. Except as set forth on
     SCHEDULE 3(n)(ii) attached hereto, with respect to each Hosting Real
     Property:

                  (A)  such Hosting Real Property Lease is legal, valid,
          binding, enforceable and in full force and effect, except as such
          enforceability may be limited by (1) applicable insolvency,
          bankruptcy, reorganization, moratorium or other similar Laws affecting
          creditors' rights generally and (2) applicable equitable principles
          (whether considered in a proceeding at law or in equity);

                  (B)  the transactions contemplated by this Agreement and the
          other Transaction Agreements do not require the consent of any other
          party to such Hosting Real Property Lease (except as set forth in
          SCHEDULE 3(b) attached hereto), will not result in a breach of or
          default under such Hosting Real Property Lease, and will not otherwise
          cause such Hosting Real Property Lease to cease to be legal, valid,
          binding, enforceable and in full force and effect on identical terms
          following the Closing;

                  (C)  Neither Hosting's nor Network's possession and quiet
          enjoyment of the Hosting Leased Real Property under such Hosting Real
          Property Lease has not been disturbed, and there are no disputes with
          respect to such Hosting Real Property Lease;

                  (D)  Neither Hosting's or Network's, on the one hand, nor, to
          the Knowledge of Hosting and Networks, any other party to such Hosting
          Real Property Lease, on the other hand, is in breach or default under
          such Hosting Real Property Lease, and no event has occurred or
          circumstance exists which, with the delivery of notice, the passage of
          time or both, would constitute such a breach or default, or permit the
          termination, modification or acceleration of rent under such Hosting
          Real Property Lease;

                                      -29-
<Page>

                  (E)  Neither Hosting nor Networks owe in the future, any
          brokerage commissions or finder's fees with respect to such Hosting
          Real Property Lease;

                  (F)  The other party to such Hosting Real Property Lease is
          not an Affiliate of, and otherwise does not have any economic interest
          in, Hosting or Networks;

                  (G)  Neither Hosting nor Networks has subleased, licensed or
          otherwise granted any Person the right to use or occupy such Hosting
          Leased Real Property or any portion thereof;

                  (H)  Neither Hosting nor Networks has collaterally assigned or
          granted any other Lien in such Hosting Real Property Lease or any
          interest therein; and

                  (I)  Except as may arise by operation of law or under any
          Hosting Real Property Lease, there are no Liens on the estate or
          interest created by such Hosting Real Property Lease.

          (iii)   All Improvements included in the Hosting Leased Real Property
     are in good condition and repair and sufficient for the operation of the
     Hosting Business of Hosting and Networks as currently conducted thereon or
     contemplated to be conducted thereon. There are no structural deficiencies
     or latent defects affecting any of the Improvements and there are no facts
     or conditions affecting any of the Improvements which would, individually
     or in the aggregate, interfere in any respect with the use or occupancy of
     the Improvements or any portion thereof in the operation of the Hosting
     Business of Hosting and Networks as currently conducted thereon or
     contemplated to be conducted thereon.

          (iv)    There is no condemnation, expropriation or other proceeding in
     eminent domain, pending or threatened, affecting any parcel of Hosting
     Leased Real Property or any portion thereof or interest therein. There is
     no injunction, decree, order, writ or judgment outstanding, nor any Claims,
     administrative actions or similar proceedings, pending or threatened,
     relating to the ownership, lease, use or occupancy of the Hosting Leased
     Real Property or any portion thereof, or the operation of the Hosting
     Business of Hosting as currently conducted thereon or contemplated to be
     conducted thereon.

          (v)     The Hosting Leased Real Property is in compliance with all
     applicable Real Property Laws (including any Environmental, Health and
     Safety Requirements, zoning, planning, subdivision, platting or similar
     Laws) affecting the Hosting Leased Real Property, and the current use and
     occupancy of the Hosting Leased Real Property and operation of the Hosting
     Business of Hosting thereon does not violate any Real Property Laws.
     Neither Hosting nor Networks has received any notice of violation of any
     Real Property Law and there is no basis for the issuance of any such notice
     or the taking of any action for such violation. There is no pending or
     anticipated change in any Real Property Law that will have a Hosting
     Material Adverse Effect on the ownership, lease, use or occupancy of any
     Hosting Leased Real Property or any portion thereof in the

                                      -30-
<Page>

     continued operation of the Hosting Business of Hosting and Networks as
     currently conducted thereon or contemplated to be conducted thereon.

     (o)  ENVIRONMENTAL MATTERS.

          (i)     Each of Hosting, Networks and their predecessors have complied
     and each of Hosting and Networks is in compliance with all Environmental,
     Health and Safety Requirements and all permits thereunder.

          (ii)    Neither Hosting, Networks nor any of their predecessors or
     Affiliates has received any written or oral notice, report or other
     information regarding any actual or alleged violation of Environmental,
     Health, and Safety Requirements, or any Liabilities or potential
     Liabilities, including any investigatory, remedial or corrective
     Liabilities, relating to any of them or their facilities arising under
     Environmental, Health, and Safety Requirements.

          (iii)   Neither Hosting, Networks nor their predecessors and
     Affiliates has assumed or undertaken or otherwise become subject to any
     Liability, including any Liability for corrective or remedial action, of
     any other Person relating to Environmental, Health, and Safety
     Requirements.

          (iv)    No facts, events or conditions relating to the past or present
     facilities, properties or operations of Hosting or Networks, or any of
     their predecessors or Affiliates will prevent, hinder or limit continued
     compliance with Environmental, Health, and Safety Requirements, give rise
     to any investigatory, remedial or corrective obligations pursuant to
     Environmental, Health, and Safety Requirements, or give rise to any other
     Liabilities pursuant to Environmental, Health, and Safety Requirements,
     including any relating to onsite or offsite releases or threatened releases
     of hazardous materials, substances or wastes, personal injury, property
     damage or natural resources damage.

          (v)     None of Hosting, Networks or their predecessors or Affiliates
     has treated, stored, disposed of, arranged for or permitted the disposal
     of, transported, handled, or released any substance, including any
     hazardous substance, or owned or operated any property or facility (and no
     such property or facility is contaminated by any such substance) in a
     manner that has given rise to Liabilities or give rise to Liabilities,
     including any Liability for response costs, corrective action costs,
     personal injury, property damage, natural resource damages or attorney
     fees, pursuant to CERCLA or any other Environmental, Health, and Safety
     Requirements.

          (vi)    Hosting has provided to VitalStream copies of all material
     environmental reports, audits, assessments, and investigations, and any
     other material environmental documents, related to the past or present
     facilities, properties or operations of Hosting, Networks or their
     predecessors or Affiliates, to the extent the forgoing are in the
     possession, custody, or control of Hosting or Networks.

                                      -31-
<Page>

     (p)  INTELLECTUAL PROPERTY RIGHTS.

          (i)     Hosting owns and possesses all right, title and interest in
     and to, free and clear of any Liens, Claims, Indebtedness, licenses,
     restrictions on transfer or any other restrictions or limitations, except
     for (i) Permitted Liens and (ii) the Liens set forth on SCHEDULE 3(p)(i)
     attached hereto, or has the right to use pursuant to a valid and
     enforceable, written license, sublicense, agreement, or other permission,
     all Hosting Intellectual Property Rights. Hosting has taken all
     commercially reasonable actions to maintain and protect the Hosting
     Intellectual Property Rights.

          (ii)    To the Knowledge of Hosting and Networks, neither Hosting nor
     Networks (provided, in the case of Networks, solely with respect to the
     conduct by Networks of its Hosting Business) has interfered with, infringed
     upon, violated, misappropriated, or otherwise come into conflict with any
     Intellectual Property Rights of any other Person and, to the Knowledge of
     Hosting and Networks, neither Hosting nor Networks will interfere with,
     infringe upon, violate, misappropriate or otherwise come into conflict with
     any Intellectual Property Rights of any Person as a result of the continued
     operation of its Hosting Business as presently conducted or as contemplated
     to be conducted. Neither Hosting nor Networks (provided, in the case of
     Networks, solely with respect to the conduct by Networks of its Hosting
     Business) has ever received any Claim or notice alleging any such
     interference, infringement, conflict, misappropriation, or violation
     (including, but not limited to, any Claim that Hosting or Networks must
     license or refrain from using any Intellectual Property Rights of any other
     Person and any demand or offer to license any Intellectual Property Rights
     from any Person), and neither Hosting nor Networks is aware of any facts
     that indicate a likelihood of any of the foregoing. To the Knowledge of
     Hosting and Networks, no third party has interfered with, infringed upon,
     misappropriated, or otherwise come into conflict with any Hosting
     Intellectual Property Rights, and neither Hosting nor Networks is aware of
     any facts that indicate a likelihood of any of the foregoing.

          (iii)   SCHEDULE 3(p)(iii) attached hereto identifies: (A) each patent
     or registration which has been issued to Hosting or Networks with respect
     to any Hosting Intellectual Property Rights and each pending patent
     application or application for registration which Hosting or Networks has
     made with respect to any Hosting Intellectual Property Rights; (B) each
     license, sublicense, agreement, or other permission which Hosting or
     Networks has granted to any Person with respect to any Hosting Intellectual
     Property Rights (other than such licenses, sublicenses and other
     permissions as are granted in the Ordinary Course of Business under the
     terms of Hosting form licensing agreements), together with any exceptions;
     (C) each material unregistered trademark, copyright, material service mark,
     trade name, corporate name or Internet domain name, computer software item
     (other than commercially available off-the-shelf software purchased or
     licensed for less than a total cost of $1,000 in the aggregate) within the
     Hosting Intellectual Property Rights and (D) any other material Hosting
     Intellectual Property Rights. Hosting or Networks has delivered to
     VitalStream correct and complete copies of all such patents, registrations,
     applications, licenses, sublicenses, agreements, and permissions (as
     amended to date) and has made available to VitalStream correct and complete
     copies of

                                      -32-
<Page>

     all other written documentation evidencing ownership and prosecution (if
     applicable) of each such item.

          (iv)    SCHEDULE 3(p)(iv) attached hereto identifies each Hosting
     Intellectual Property Right that any third party owns and that Hosting or
     Networks uses pursuant to a written license, sublicense, agreement, or
     permission (other than commercially available off-the-shelf software
     purchased or licensed for less than a total cost of $1,000 in the
     aggregate). Either Hosting or Networks has delivered to VitalStream correct
     and complete copies of all such licenses, sublicenses, agreements, and
     permissions (as amended to date). With respect to each Hosting Intellectual
     Property Right required to be identified in SCHEDULE 3(p)(iv) attached
     hereto:

                  (A)  the license, sublicense, agreement, or permission
          covering such Hosting Intellectual Property Right is legal, valid,
          binding, enforceable, and in full force and effect;

                  (B)  the license, sublicense, agreement, or permission
          covering such Hosting Intellectual Property Right will continue to be
          legal, valid, binding, enforceable, and in full force and effect on
          identical terms following the consummation of the transactions
          contemplated by this Agreement;

                  (C)  to the Knowledge of Hosting and Networks no party to the
          license, sublicense, agreement, or permission covering such Hosting
          Intellectual Property Right is in breach or default, and, to the
          Knowledge of Hosting and Networks, no event has occurred which with
          notice or lapse of time would constitute a breach or default or permit
          termination, modification, or acceleration thereunder;

                  (D)  to the Knowledge of Hosting and Networks no party to the
          license, sublicense, agreement, or permission covering such Hosting
          Intellectual Property Right has repudiated any provision thereof;

                  (E)  such Hosting Intellectual Property Right is not subject
          to any outstanding injunction, judgment, order, decree, ruling, or
          charge;

                  (F)  no Claim is pending or, to the Knowledge of Hosting and
          Networks (and employees of Hosting or Networks with responsibility for
          Intellectual Property Right matters), is threatened which challenges
          the legality, validity, or enforceability of such Hosting Intellectual
          Property Right, and there are no grounds for the same; and

                  (G)  neither Hosting nor Networks has granted any sublicense
          or similar right with respect to the license, sublicense, agreement,
          or permission covering such Hosting Intellectual Property Right.

          (v)     No Hosting Intellectual Property Right is subject to any
     outstanding injunction, judgment, order, decree, ruling, or charge. No
     Claim is pending or, to the Knowledge of Hosting and Networks (and
     employees of Hosting and Networks with responsibility for Intellectual
     Property Right matters), threatened which challenges the

                                      -33-
<Page>

     legality, validity, enforceability, use, or ownership of any Hosting
     Intellectual Property Right, and, to the Knowledge of Hosting and Networks,
     there are no grounds for the same. To the Knowledge of Hosting and
     Networks, no loss or expiration of any Hosting Intellectual Property Right
     is threatened, pending, or reasonably foreseeable, except for patents
     expiring at the end of their statutory terms (and not as a result of any
     act or omission by Hosting, including, a failure by Hosting or Networks to
     pay any required maintenance fees).

     (q)  EMPLOYEES.

          (i)     Hosting does not currently have, and has never had, any
     employees.

          (ii)    Except as set forth on SCHEDULE 3(q) attached hereto:

                  (A)  Networks is not party to or bound by any collective
          bargaining agreement or relationship with any labor organization;

                  (B)  To the Knowledge of Networks, no executive, key employee
          or group of employees has any plans to terminate their employment with
          Networks;

                  (C)  to the Knowledge of Networks, no labor organization or
          group of employees has filed any representation petition or made any
          written or oral demand for recognition;

                  (D)  no union organizing or decertification efforts are
          underway or, to the Knowledge of Networks, threatened;

                  (E)  within the past five (5) years no labor strike, work
          stoppage, slowdown or other labor dispute has occurred, and none is
          underway or, to the Knowledge of Networks, threatened;

                  (F)  there is no workman's compensation Liability, experience
          or matter that would reasonably be expected to have a Hosting Material
          Adverse Effect; and

                  (G)  there is no employment-related charge, complaint,
          grievance, investigation, inquiry or Liability of any kind, pending or
          threatened in any forum, relating to an alleged violation or breach by
          Networks (or its officers or directors) of any Law, regulation or
          contract and, to the Knowledge of Networks, no facts or circumstances
          exist that would reasonably be expected to give rise to such a charge,
          complaint, grievance, investigation, inquiry or Liability.

          (iii)   Any notice of the transaction contemplated by this Agreement
     required under any Law or collective bargaining agreement has been given,
     and all bargaining obligations with any labor organization or other
     employee representative have been, or prior to Closing will be, satisfied.

                                      -34-
<Page>

          (iv)    In connection with the transactions contemplated by this
     Agreement, no plant closing or mass layoff of employees has been
     implemented that could implicate the WARN Act.

          (v)     ANNEX 1 attached hereto sets forth the name of each Eligible
     Networks Employee, as defined in SECTION 6(d) of this Agreement) and
     separately sets forth each such individual's current annual salary, and for
     the eight (8) month period ended August 31, 2002, the amount of each such
     individual's salary, bonus payments and any other indirect compensation as
     well as the paid time off (in dollar value), holiday time and sick pay due
     each Eligible Networks Employee as of the date of this Agreement.

     (r)  EMPLOYEE BENEFITS RELATING TO HOSTING.

          (i)     Hosting does not have any obligation to contribute to (or any
     other Liability, including current or potential withdrawal liability, with
     respect to) any "multiemployer plan" (as defined in Section 3(37) of
     ERISA), or any "defined benefit plan" (as defined in Section 3(35) of
     ERISA), whether or not terminated.

          (ii)    Hosting does not maintain or have any obligation to contribute
     to (or any other Liability with respect to) any plan or arrangement whether
     or not terminated, which provides medical, health, life insurance or other
     welfare-type benefits for current or future retired or terminated employees
     (except for limited continued medical benefit coverage required to be
     provided under COBRA).

          (iii)   Hosting does not maintain, contribute to or have any Liability
     under (or with respect to) any plan which is a "defined contribution plan"
     (as defined in Section 3(34) of ERISA), whether or not terminated.

          (iv)    Hosting does not maintain, contribute to or have any Liability
     under (or with respect to) any Employee Benefit Plan providing benefits to
     current or former employees, including any bonus plan, plan for deferred
     compensation, employee health or other welfare benefit plan or other
     arrangement, whether or not terminated.

     (s)  EMPLOYEE BENEFITS RELATING TO NETWORKS.

          (i)     Networks does not have any obligation to contribute to (or any
     other Liability, including current or potential withdrawal liability, with
     respect to) any "multi-employer plan" (as defined in Section 3(37) of
     ERISA), or any "defined benefit plan" (as defined in Section 3(35) of
     ERISA), whether or not terminated.

          (ii)    Networks does not maintain or have any obligation to
     contribute to (or any other Liability with respect to) any plan or
     arrangement whether or not terminated, which provides medical, health, life
     insurance or other welfare-type benefits for current or future retired or
     terminated employees (except for limited continued medical benefit coverage
     required to be provided under COBRA).

          (iii)   Except as set forth on SCHEDULE 3(s) attached hereto, Networks
     does not maintain, contribute to or have any Liability under (or with
     respect to) any employee plan

                                      -35-
<Page>

     which is a "defined contribution plan" (as defined in Section 3(34) of
     ERISA), whether or not terminated (the "NETWORKS DEFINED CONTRIBUTION
     Plan"). No Acquired Asset is subject to any Lien under ERISA or the Code.

          (iv)    Except for the Networks Defined Contribution Plan and as set
     forth on SCHEDULE 3(s) attached hereto, Networks does not maintain,
     contribute to or have any Liability under (or with respect to) any Employee
     Benefit Plan providing benefits to current or former employees, including
     any bonus plan, plan for deferred compensation, employee health or other
     welfare benefit plan or other arrangement, whether or not terminated. Such
     Employee Benefit Plans are referred to as the "OTHER NETWORKS PLANS" and,
     together with the Networks Defined Contribution Plan, the "NETWORKS PLANS."

          (v)     The Networks Plans and all related trusts, insurance contracts
     and funds have been maintained, funded and administered in accordance with
     their terms and have complied in form and in operation in all material
     respects with the applicable requirements of ERISA, the Code and other
     applicable Laws. The requirements of COBRA have been met in all material
     respects with respect to each Networks Plan which is an "employee welfare
     benefit plan" (as such term is defined in Section 3(1) of ERISA) which is
     subject to COBRA.

          (vi)    Each of the Networks Plans which is intended to be qualified
     under Section 401(a) of the Code has received a favorable determination
     from the Internal Revenue Service that such Networks Plan is qualified
     under Section 401(a) of the Code, and there are no circumstances which
     could reasonably be expected to adversely affect the qualified status of
     any such Networks Plan. All such Networks Plans have been or will be timely
     amended for the requirements of the Tax legislation commonly known as
     "GUST" and have been or will be submitted to the Internal Revenue Service
     for a favorable determination letter within the remedial amendment period
     prescribed by GUST.

          (vii)   No action, suit, proceeding, hearing, or investigation with
     respect to the administration or the investment of the assets of any
     Networks Plan (other than routine claims for benefits) is pending or, to
     the Knowledge of Networks, threatened which could result in or subject
     Networks to any material Liability, and there are no circumstances which
     could reasonably be expected to give rise to any such actions, suits or
     claims.

     (t)  INSURANCE. Neither Hosting nor Networks is in material default with
respect to its obligations under any insurance policy maintained by it, and
neither Hosting nor Networks has ever been denied insurance coverage. The
insurance coverage of Hosting is customary for entities of similar size engaged
in similar lines of business. The reserves set forth on the Hosting Balance
Sheets are adequate to cover all anticipated Liabilities with respect to all
self-insurance or co-insurance programs.

     (u)  AFFILIATE TRANSACTIONS. Except as set forth on the attached SCHEDULE
3(u) attached hereto, no officer, director, employee, stockholder, or other
Affiliate of Hosting or any individual related by blood, marriage or adoption to
any such individual or any entity in which any such Person or individual owns
any beneficial interest, is a party to any agreement, contract,

                                      -36-
<Page>

commitment or transaction with Hosting or Networks or has any material interest
in the Acquired Assets.

     (v)  BROKERAGE. Neither Hosting nor any Affiliate of Hosting has any
Liability to pay (or has made any arrangement under which Hosting or VitalStream
may be required to pay) any fees or commissions to any broker, finder, or agent
with respect to the transactions contemplated by this Agreement or the other
Transaction Agreements.

     (w)  GOVERNMENTAL CONSENT, ETC. No permit, consent, approval or
authorization of, or declaration to or filing with, any Governmental Entity is
required in connection with the execution, delivery and performance by Hosting
or Networks of this Agreement or any other Transaction Agreement or the
consummation by Hosting or Networks of any of the transactions contemplated
hereby or thereby, except for filings with any Governmental Entity which are
required or permitted to be made after the date hereof pursuant to applicable
federal and state securities Laws and blue sky Laws, which filings will be
effected within the applicable statutory periods.

     (x)  DISCLOSURE. This Agreement, together with the annexes, schedules,
exhibits and certificates supplied by Hosting or Networks or on behalf of
Hosting or Networks with respect to the transactions contemplated by this
Agreement and the other Transaction Agreements, do not contain any untrue
statement of a material fact, as of the date hereof, or omit to state a material
fact necessary to make the statements contained herein or therein, in light of
the circumstances in which they were made, not misleading.

     (y)  CAPITAL STOCK AND RELATED MATTERS. The authorized capital stock of
Hosting consists of 1,000 shares of common stock, par value $0.01 per share, all
of which shares of common stock are issued and outstanding and owned by
Networks. As of the date hereof, Hosting does not have outstanding any Equity
Securities or Debt Securities, except for the shares of common stock held by
Networks.

     (z)  INVESTMENT IN PURCHASE SHARES.

          (i)     DISCLOSURE OF INFORMATION. Hosting hereby represents that
     representatives of each of the Purchase Share Distributees have received
     and reviewed all the information about VitalStream that such Person needs
     to invest in the Purchase Shares and represents that representatives of
     each of the Purchase Share Distributees asked questions and received
     answers from VitalStream regarding the terms and conditions of the offering
     of the Purchase Shares and the business, properties, prospects and
     condition (financial or otherwise) of VitalStream and the VitalStream
     Subsidiaries. The foregoing, however, does not limit or modify the
     representations and warranties of VitalStream in SECTION 4 of this
     Agreement or the right of Hosting to rely thereon.

          (ii)    INVESTMENT EXPERIENCE. Hosting hereby represents that each of
     the Purchase Share Distributees is able to fend for itself, can bear the
     economic risk of its investment, has such knowledge and experience in
     financial or business matters that it is capable of evaluating the merits
     and risks of the investment in the Purchase Shares and has been represented
     with respect to the decision to invest in the Purchase Shares by

                                      -37-
<Page>

     Persons with such knowledge and experience in financial or business matters
     as to be capable of advising such Purchase Share Distributee with respect
     to the decision to invest in the Purchase Shares. Hosting also represents
     none of the Purchase Share Distributees has been organized for the purpose
     of acquiring the Purchase Shares.

          (iii)   INVESTMENT INTENT; OWN ACCOUNT. Except for the dividend or
     other distribution of the Purchase Shares by (A) Hosting to Networks, (B)
     Networks to Holdings and (C) Holdings to one of more Purchase Share
     Distributees, Hosting hereby represents that it is acquiring the Purchase
     Shares for its own account, not as nominee or agent, with the present
     intention of holding such securities for purposes of investment, and that
     it has no intention of selling such securities in a public distribution in
     violation of the federal securities Laws or any applicable state securities
     Laws. Subject to the foregoing, Hosting further represents that neither it
     nor any Purchase Shares Distributee has any contract, undertaking or
     agreement with any Person to sell, transfer or grant participations to such
     Person or to any other Person with respect to the Purchase Shares.

     (aa) CUSTOMERS AND SUPPLIERS.

          (i)     Except as set forth on SCHEDULE 3(aa) attached hereto, during
     the twelve (12) month period ending on the date hereof, there has not been
     any material interruption or outage (other than as requested by a Hosting
     Business Customer) in the provision by Hosting or Networks to the Hosting
     Business Customers of the goods and services provided by Hosting or
     Networks in the operation of its Hosting Business.

          (ii)    Except as set forth on SCHEDULE 3(aa) attached hereto, no
     Hosting Business Customer which generated monthly revenues in the one month
     period ended August 31, 2002 that accounted for in excess of $5,000 of the
     monthly revenues of the Hosting Business of Hosting or Networks, has
     terminated or threatened in writing to terminate its relationship, or any
     agreement, with Hosting or Networks, as the case may be.

          (iii)   SCHEDULE 3(aa) attached hereto sets forth (A) a complete and
     accurate list of the name of each Hosting Business Customer, together with
     the amount of revenue generated by such Hosting Business Customer during
     the one (1) month period ended August 31, 2002 and (B) a list of the
     contact information of each such Hosting Business Customer.

          (iv)    SCHEDULE 3(aa) attached hereto contains a listing of all
     suppliers and vendors of the Hosting Business of Hosting and Networks,
     together with complete contact information and the amount of expense
     incurred to such vendor or supplier during the one (1) month period ended
     August 31, 2002.

     4.   REPRESENTATIONS AND WARRANTIES OF VITALSTREAM. As a material
inducement to Hosting and Networks to enter into this Agreement, VitalStream and
the Buyer, jointly and severally, hereby represent and warrant to Hosting and
Networks that the statements contained in this SECTION 4 are correct and
complete as of the date hereof (or on the date as of which they are made, in the
case of any representation or warranty which specifically relates to an earlier
date).

                                      -38-
<Page>

     (a)  ORGANIZATION, CORPORATE POWER AND LICENSES. Except as set forth on
SCHEDULE 4(a), each of VitalStream and its direct and indirect Subsidiaries
(including the Buyer) (collectively, the "VITALSTREAM SUBSIDIARIES") is a
corporation duly organized, validly existing and in good standing under the Laws
of its respective jurisdiction of incorporation and is qualified to do business
in every jurisdiction in which such qualification is required except where
failure to be so qualified would not reasonably be expected to have a
VitalStream Material Adverse Effect. Each of VitalStream and the VitalStream
Subsidiaries possess all requisite corporate power and authority and all
material licenses, permits and authorizations necessary to own and operate its
properties, to carry on its business as now conducted and as presently proposed
to be conducted and to carry out the transactions contemplated by this Agreement
and the other Transaction Agreements to which it is a party except where such
failure would not reasonably be expected to have a VitalStream Material Adverse
Effect. The copies of VitalStream's and Buyer's charter documents and bylaws to
which Hosting has been provided access reflect all amendments made thereto at
any time prior to the date of this Agreement and are correct and complete.

     (b)  APPROVAL AND CONSENTS; AUTHORIZATION; NO BREACH. Each of the Buying
Parties full power and authority (including full corporate power and authority)
to execute and deliver this Agreement and each of the other Transaction
Agreements to which it is a party and to perform its obligations hereunder and
thereunder. Without limiting the generality of the foregoing, the execution and
delivery by the Buying Parties and the performance by the Buying Parties of this
Agreement and each of the other Transaction Agreements to which either Buying
Party is a party, and the consummation of the transactions contemplated by this
Agreement and the other Transaction Agreements have been duly authorized by the
respective boards of directors of each of VitalStream and Buyer. Except as
described above, no other corporate proceedings on the part of any Buying Party
is necessary to authorize the execution and delivery of this Agreement or any
other Transaction Agreements by any of the Buying Parties and the consummation
by the Buying Parties of the transactions contemplated by this Agreement and the
other Transaction Agreements. Each of this Agreement and the other Transaction
Agreements to which any of the Buying Parties is a party constitutes a valid and
binding obligation of each such Buying Party, enforceable in accordance with its
terms, except as such enforceability may be limited by (i) applicable
insolvency, bankruptcy, reorganization, moratorium or other similar Laws
affecting creditors' rights generally, and (ii) applicable equitable principles
(whether considered in a proceeding at law or in equity). Except as set forth on
SCHEDULE 4(b) attached hereto, the execution and delivery by any of the Buying
Parties of this Agreement and the other Transaction Agreements to which any of
the Buying Parties is a party, and the fulfillment of and compliance with the
respective terms hereof and thereof by each such Buying Party do not and shall
not (i) conflict with or result in a breach of the terms, conditions or
provisions of, (ii) constitute a default under or result in the violation of,
(iii) result in the creation of any Lien upon the capital stock or assets of any
of the Buying Parties or any VitalStream Subsidiary pursuant to, (iv) give any
third party the right to modify, terminate or accelerate any obligation under,
or (v) require any authorization, consent, approval, exemption or other action
by or notice or declaration to, or filing with, any third party or any
Governmental Entity (other than any filings required by state and federal
securities Laws) pursuant to, (A) the charter documents or bylaws of any of the
Buying Parties or any VitalStream Subsidiary, (B) any Law or Legal Requirement
to which any of the Buying Parties or any VitalStream Subsidiary is subject, or
(C) any material

                                      -39-
<Page>

agreement, instrument, order, judgment or decree to which any of the Buying
Parties or any VitalStream Subsidiary is subject.

     (c)  SUBSIDIARIES. SCHEDULE 4(c) attached hereto sets forth a complete and
accurate list of the VitalStream Subsidiaries. Except as set forth on SCHEDULE
4(c) attached hereto, VitalStream has no Subsidiaries and does not own or
control, directly or indirectly, any shares of capital stock of any other
corporation or any interest in any partnership, joint venture or other
non-corporate business enterprise. All of the outstanding shares of capital
stock of each VitalStream Subsidiary are validly issued, full paid and
nonassessable, and all such shares are owned by VitalStream or another of the
VitalStream Subsidiaries free and clear of any Lien and not subject to any
option or right to purchase any such shares. Except as set forth on the SCHEDULE
4(c) attached hereto, neither VitalStream nor any of the VitalStream
Subsidiaries owns or holds the right to acquire any shares of stock or any other
Equity Security of any other Person.

     (d)  SECURITIES AND EXCHANGE COMMISSION REPORTS AND VITALSTREAM FINANCIAL
STATEMENTS. The filings located on the Internet website of the Securities and
Exchange Commission with respect to VitalStream (previously known as Sensar
Corporation), together with the filings delivered by VitalStream to Hosting
prior to the execution of this Agreement, constitute a true and complete copy of
each form, report, schedule, registration statement, definitive proxy statement
and other document (together with all amendments thereof and supplements
thereto), filed by VitalStream or any of the VitalStream Subsidiaries with the
Securities and Exchange Commission since January 1, 2001 (as such documents have
since the time of their filing been amended or supplemented, the "VITALSTREAM
SECURITIES AND EXCHANGE COMMISSION REPORTS"), which are all the documents (other
than preliminary material) that VitalStream and the VitalStream Subsidiaries
were required to file with the Securities and Exchange Commission since such
date. As of their respective dates, the VitalStream Securities and Exchange
Commission Reports (i) complied as to form in all material respects with the
requirements of the Securities Act, or the Exchange Act, as the case may be, and
(ii) did not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading. The audited consolidated financial statements and unaudited
interim consolidated financial statements (including, in each case, the notes,
if any, thereto) included in the VitalStream Securities and Exchange Commission
Reports (the "VITALSTREAM FINANCIAL STATEMENTS") (A) complied as to form in all
material respects with the published rules and regulations of the Securities and
Exchange Commission with respect thereto, (B) are accurate and complete in all
material respects, (C) are consistent with the books and records of VitalStream
and the VitalStream Subsidiaries (which, in turn, are accurate and complete in
all material respects), (D) were prepared in accordance with GAAP applied on a
consistent basis during the periods involved (except (1) with respect to audited
statements, as may be indicated therein or in the notes thereto and (2) with
respect to unaudited statements, subject to normal year-end audit adjustments,
which will not be material either individually or in the aggregate, an absence
of required footnotes and as permitted by Form 10-Q of the Securities and
Exchange Commission) and (E) fairly present the consolidated financial position
of VitalStream and the VitalStream Subsidiaries as at the respective dates
thereof and the consolidated results of their operations and cash flows for the
respective periods then ended. Except as set forth on SCHEDULE 4(d) attached
hereto, each VitalStream Subsidiary is treated as a

                                      -40-
<Page>

consolidated Subsidiary of VitalStream in the VitalStream Financial Statements
for all periods covered thereby.

     (e)  NOTES AND ACCOUNTS RECEIVABLE.

          (i)     All notes and accounts receivable of VitalStream and the
     VitalStream Subsidiaries are reflected properly on its books and records,
     are valid receivables arising from bona fide transactions in the Ordinary
     Course of Business subject to no setoffs, Claims or refusals to pay, are
     current and collectible, and will be collected in accordance with their
     terms at their recorded amounts, subject only to the reserve for bad debts
     set forth on the face of the Most Recent VitalStream Balance Sheet (rather
     than in any notes thereto) as adjusted for the passage of time through the
     Closing Date in accordance with the past custom and practice of
     VitalStream. SCHEDULE 4(e) attached hereto contains a listing of all of the
     accounts receivable of VitalStream and the VitalStream Subsidiaries as of
     August 31, 2002. Except as set forth on SCHEDULE 4(e) attached hereto, as
     of August 31, 2002, (a) no account or note debtor of VitalStream or any
     VitalStream Subsidiary is delinquent in payment by more than sixty (60)
     days and (b) the aging schedule of the accounts receivable and notes
     receivable of VitalStream or any VitalStream Subsidiary included in
     SCHEDULE 4(e) is complete and accurate.

          (ii)    SCHEDULE 4(e) attached hereto contains a listing of all
     accounts payable and notes payable (which shall include any service level
     agreement credits, services or goods that have been paid for but not
     provided or delivered, and similar items) that VitalStream and the
     VitalStream Subsidiaries will owe (or have any Liability with respect to)
     as of August 31, 2002. Except as set forth on SCHEDULE 4(e) attached
     hereto, as of August 31, 2002, all accounts payable and notes payable of
     VitalStream and the VitalStream Subsidiaries arose from bona fide
     transactions in the Ordinary Course of Business and, no such account
     payable or note payable is delinquent by more than sixty (60) days in its
     payment.

     (f)  GUARANTIES. Neither VitalStream nor any VitalStream Subsidiary is a
guarantor of, or otherwise is liable for, and no assets or properties of
VitalStream or any VitalStream Subsidiary are subject to, or security for, any
Liability (including Indebtedness) of any other Person.

     (g)  TITLE TO ASSETS; CONDITION OF ASSETS; SUFFICIENCY OF ASSETS. Each of
VitalStream and the VitalStream Subsidiaries has good and marketable title to,
or a valid leasehold interest in, the properties and assets of its respective
properties and assets used by it in the conduct of its business, located on its
premises or shown on the Most Recent VitalStream Balance Sheet or acquired after
the date thereof (other than properties and assets disposed of in the Ordinary
Course of Business since the date of the Most Recent VitalStream Balance Sheet),
free and clear of all Liens, Claims, Indebtedness and restrictions on transfer,
except for (i) Permitted Liens and (ii) the Liens set forth on SCHEDULE 4(g)
attached hereto. The equipment and other tangible assets of VitalStream and each
of the VitalStream Subsidiaries are free from material defects (patent or
latent), have been maintained in good operating condition and repair (subject to
normal wear and tear), and are suitable for the purpose for which they presently
are used (including the conduct of the business of VitalStream and each of the
VitalStream Subsidiaries) and are proposed to be

                                      -41-
<Page>

used by VitalStream and the VitalStream Subsidiaries. VitalStream and the
VitalStream Subsidiaries own, or have a valid leasehold interest in, all
properties and assets (tangible and intangible) necessary for VitalStream and
the VitalStream Subsidiaries to conduct their Hosting Business as presently
conducted and are proposed to be used by VitalStream and the VitalStream
Subsidiaries.

     (h)  ABSENCE OF UNDISCLOSED LIABILITIES. Neither VitalStream nor any
VitalStream Subsidiary has any Liability (and there is no basis for any present
or future Claim giving rise to any Liability), except for (i) Liabilities not
required to be reflected on a consolidated balance sheet of VitalStream and the
VitalStream Subsidiaries prepared in accordance with GAAP consistently applied
in accordance with VitalStream's past practice, (ii) Liabilities set forth on
the face of the Most Recent VitalStream Balance Sheet (rather than in any notes
thereto) and (iii) Liabilities which have arisen after the date of the Most
Recent VitalStream Balance Sheet in the Ordinary Course of Business (none of
which results from, arises out of, relates to, is in the nature of, or was
caused by any Claim, breach of contract, breach of warranty, tort, infringement,
Environmental, Health, and Safety Requirements or violation of Law).

     (i)  ABSENCE OF CERTAIN DEVELOPMENTS. Except as set forth in SCHEDULE 4(i)
attached hereto and for the transactions contemplated by this Agreement and the
other Transaction Agreements, since August 31, 2002, no event has occurred or is
anticipated, and no fact or facts exists, that individually or in the aggregate
have had or could have a VitalStream Material Adverse Effect. Without limiting
the generality of the foregoing, since that August 31, 2002:

          (i)     neither VitalStream nor any VitalStream Subsidiary has sold,
     leased, transferred, or assigned any of its assets, tangible or intangible
     necessary for, or useful in, the conduct of its business, other than for a
     fair consideration in the Ordinary Course of Business;

          (ii)    neither VitalStream nor any VitalStream Subsidiary has entered
     into any agreement, contract, lease, or license (or series of related
     agreements, contracts, leases, and licenses) either involving more than
     $25,000 or outside the Ordinary Course of Business;

          (iii)   no party (including VitalStream or any VitalStream Subsidiary)
     has accelerated, terminated, modified, or cancelled any agreement,
     contract, lease, or license (or series of related agreements, contracts,
     leases, and licenses) involving more than $25,000 to which VitalStream or
     any VitalStream Subsidiary is a party or by which any of them are bound;

          (iv)    neither VitalStream nor any VitalStream Subsidiary has
     imposed, or permitted to exist, any Liens (except for Permitted Liens) upon
     any of their assets, tangible or intangible;

          (v)     neither VitalStream nor any VitalStream Subsidiary has made
     any capital expenditure (or series of related capital expenditures) either
     involving more than $25,000 or outside the Ordinary Course of Business;

                                      -42-
<Page>

          (vi)    neither VitalStream nor any VitalStream Subsidiary has made
     any Investment in, any loan to, or any acquisition of the assets of, any
     other Person (or series of related capital Investments, loans, and
     acquisitions) outside the Ordinary Course of Business;

          (vii)   neither VitalStream nor any VitalStream Subsidiary has issued
     any Debt Security or created, incurred, assumed, or Guaranteed any
     Indebtedness for borrowed money or capitalized lease obligation either
     involving more than $10,000 singly or $50,000 in the aggregate;

          (viii)  neither VitalStream nor any VitalStream Subsidiary has delayed
     or postponed the payment of accounts payable or other Liabilities outside
     the Ordinary Course of Business;

          (ix)    neither VitalStream nor any VitalStream Subsidiary has
     cancelled, compromised, waived, or released any right or Claim (or series
     of related rights and Claims) either involving more than $10,000 or outside
     the Ordinary Course of Business;

          (x)     neither VitalStream nor any VitalStream Subsidiary has granted
     any license or sublicense of any rights under or with respect to any
     VitalStream Intellectual Property Rights, other than in the Ordinary Course
     of Business;

          (xi)    neither VitalStream nor any VitalStream Subsidiary has
     experienced any damage, destruction, or loss (whether or not covered by
     insurance) to its properties or assets;

          (xii)   neither VitalStream nor any VitalStream Subsidiary has made
     any loan to, or entered into any other transaction with, any of its
     Affiliates, stockholders, directors, officers or employees outside the
     Ordinary Course of Business;

          (xiii)  neither VitalStream nor any VitalStream Subsidiary has entered
     into any employment contract or collective bargaining agreement, written or
     oral, or modified the terms of any existing such contract or agreement
     relating to or affecting any employee of VitalStream or any VitalStream
     Subsidiary;

          (xiv)   neither VitalStream nor any VitalStream Subsidiary has granted
     any increase in the base compensation of any of the directors, officers or
     employees of VitalStream or any VitalStream Subsidiary outside the Ordinary
     Course of Business;

          (xv)    neither VitalStream nor any VitalStream Subsidiary has
     adopted, amended, modified, or terminated any bonus, profit sharing,
     incentive, severance, or other plan, contract, or commitment for the
     benefit of any of the directors, officers or employees of VitalStream or
     any VitalStream Subsidiary, or taken any such action with respect to any
     other Employee Benefit Plan;

          (xvi)   neither VitalStream nor any VitalStream Subsidiary has made
     any other change in employment terms for any of the directors, officers or
     employees of VitalStream or any VitalStream Subsidiary outside the Ordinary
     Course of Business; and

                                      -43-
<Page>

          (xvii)  Neither VitalStream nor any VitalStream Subsidiary has not
     collected any accounts receivable out of the Ordinary Course of Business;
     and

          (xviii) Neither VitalStream nor any VitalStream Subsidiary has
     committed to any of the foregoing.

     (j)  COMPLIANCE WITH LAWS. Neither VitalStream nor any VitalStream
Subsidiary has violated any Law or Legal Requirement and neither VitalStream nor
any VitalStream Subsidiary has received any written notice alleging any such
violation.

     (k)  LITIGATION. Except as set forth in SCHEDULE 4(k) attached hereto,
neither VitalStream nor any VitalStream Subsidiary is (i) subject to any
outstanding injunction, judgment, order, decree, ruling, or charge or (ii) a
party or, to the Knowledge of VitalStream, threatened to be made a party to any
Claim at law or in equity, before any Governmental Entity or that could come
before any arbitrator. None of the Claims set forth in SCHEDULE 4(k) attached
hereto could, either individually or in the aggregate, result in or have a
VitalStream Material Adverse Effect. Except as set forth in SCHEDULE 4(k), to
the Knowledge of VitalStream, VitalStream does not have any reason to believe
that any such Claim may be brought against VitalStream or any of the VitalStream
Subsidiaries.

     (l)  CONTRACTS AND COMMITMENTS.

          (i)     Except as disclosed in the VitalStream Securities and Exchange
     Commission Reports, as expressly contemplated by this Agreement or as set
     forth in SCHEDULE 4(l) attached hereto, neither VitalStream nor any
     VitalStream Subsidiary is a party to or bound by any written or oral:

                  (A)  pension, profit sharing, stock option, employee stock
          purchase or other plan or arrangement providing for deferred or other
          compensation to employees or any other employee benefit plan or
          arrangement, or any collective bargaining agreement or any other
          contract with any labor union, or severance agreements, programs,
          policies or arrangements;

                  (B)  contract for the employment of any officer, individual
          employee or other Person on a full-time, part-time, consulting or
          other basis providing annual compensation in excess of $75,000 or
          contract relating to loans to officers, directors or Affiliates
          (unless terminable at will without severance obligations);

                  (C)  contract or agreement with any Governmental Entity
          entered into outside the Ordinary Course of Business;

                  (D)  contract under which VitalStream or any VitalStream
          Subsidiary has advanced or loaned any other Person amounts in the
          aggregate exceeding $10,000;

                  (E)  agreement or indenture relating to borrowed money or
          other Indebtedness or the mortgaging, pledging or otherwise placing a
          Lien (other than a Permitted Lien) on any assets of VitalStream or any
          VitalStream Subsidiary;

                                      -44-
<Page>

                  (F)  Guarantee of any Liability of any Person;

                  (G)  settlement, conciliation or similar agreement under which
          such party has any future obligations or Liability;

                  (H)  lease or agreement under which VitalStream or any
          VitalStream Subsidiary is lessee of or holds or operates any property,
          real or personal, owned by any other party, except for any lease of
          real or personal property under which the aggregate annual rental
          payments do not exceed $25,000;

                  (I)  lease or agreement under which VitalStream or any
          VitalStream Subsidiary is lessor of or permits any third party to hold
          or operate any property, real or personal, owned or controlled by
          VitalStream or any VitalStream Subsidiary;

                  (J)  contract or group of related contracts with the same
          party or group of Affiliated parties the performance of which involves
          the payment by VitalStream or any VitalStream Subsidiary of
          consideration in excess of $25,000; annually;

                  (K)  assignment, license, indemnification or agreement with
          respect to any intangible property (including any Intellectual
          Property Rights) entered into outside the Ordinary Course of Business;

                  (L)  warranty agreement with respect to its services rendered
          or its products sold or leased;

                  (M)  agreement under which it has granted any Person any
          registration rights (including demand and piggyback registration
          rights, any rights of first refusal or vetoes on the sale of the
          Acquired Assets);

                  (N)  agreement relating to any Investment;

                  (O)  contract or agreement prohibiting it from freely engaging
          in any business or competing anywhere in the world; or

                  (P)  any other agreement which is material to the operation of
          its Hosting Business or business prospects or involves a consideration
          in excess of $25,000; annually.

          (ii)    All of the contracts, agreements and instruments set forth in
     SCHEDULE 4(l) attached hereto (the "VITALSTREAM MATERIAL CONTRACTS") are
     valid, binding and enforceable in accordance with their respective terms,
     except as such enforceability may be limited by (i) applicable insolvency,
     bankruptcy, reorganization, moratorium or other similar Laws affecting
     creditors' rights generally, and (ii) applicable equitable principles
     (whether considered in a proceeding at law or in equity). Except as set
     forth on SCHEDULE 4(l)(ii) attached hereto, VitalStream and each
     VitalStream Subsidiary has performed all material obligations required to
     be performed by it under the VitalStream Material Contracts and

                                      -45-
<Page>

     is not in default under or in breach of nor in receipt of any claim of
     default or breach under any VitalStream Material Contracts; no event has
     occurred which with the passage of time or the giving of notice or both
     would result in a default, breach or event of noncompliance by VitalStream
     or any of the VitalStream Subsidiaries under any of the VitalStream
     Material Contracts; neither VitalStream nor any of the VitalStream
     Subsidiaries has any present expectation or intention of not fully
     performing all such obligations; VitalStream does not have any Knowledge of
     any breach or anticipated breach of any material obligation to be performed
     by the other parties to any of the VitalStream Material Contracts.

          (iii)   Other than VitalStream Material Contracts included as exhibits
     to the VitalStream Securities and Exchange Commission Reports, Hosting has
     been supplied with a true and correct copy of each of the written
     VitalStream Material Contracts, together with all amendments, waivers or
     other changes thereto, and an accurate description of each of the oral
     VitalStream Material Contracts.

     (m)  TAX MATTERS.

          (i)     Except as set forth in SCHEDULE 4(m) attached hereto, each of
     VitalStream and the VitalStream Subsidiaries has filed all Tax Returns
     which it is required to file under applicable Laws. All such Tax Returns
     are complete and correct and have been prepared in compliance with all
     applicable Laws in all material respects. Each of VitalStream and the
     VitalStream Subsidiaries has paid all Taxes due and owing by it (whether or
     not such Taxes are required to be shown on a Tax Return) and have withheld
     and paid over to the appropriate taxing authority all Taxes which they were
     or are required to withhold from amounts paid or owing to any employee,
     stockholder, creditor or other third party. Neither VitalStream nor any
     VitalStream Subsidiary has waived any statute of limitations with respect
     to any Taxes or agreed to any extension of time with respect to any Tax
     assessment or deficiency. The accrual for Taxes on the Most Recent
     VitalStream Balance Sheet would be adequate to pay all Tax Liabilities of
     VitalStream and any VitalStream Subsidiaries (A) if VitalStream's current
     Tax year were treated as ending on the date of the Most Recent VitalStream
     Balance Sheet (excluding any amount recorded which is attributable solely
     to timing differences between book and Tax income), and (B) if
     VitalStream's current Tax year were treated as ending on the Closing Date
     and the accrual for Taxes on the Most Recent VitalStream Balance Sheet was
     adjusted with the past custom and practice of VitalStream in filing its Tax
     Returns. Since the date of the Most Recent VitalStream Balance Sheet,
     neither VitalStream nor any VitalStream Subsidiary has incurred any
     Liability for Taxes other than in the Ordinary Course of Business. The
     assessment of any additional Taxes for periods for which Tax Returns have
     been filed by VitalStream or any VitalStream Subsidiary shall not exceed
     the recorded Liability therefor on the Most Recent VitalStream Balance
     Sheet (excluding any amount recorded which is attributable solely to timing
     differences between book and Tax income). There has not been any audit of
     any Tax Return filed by VitalStream or any VitalStream Subsidiary. Neither
     VitalStream nor any VitalStream Subsidiary has consented to any waiver of
     the statute of limitations for the assessment of any Taxes and had not
     requested any extension of time for the payment of any Taxes. There are no
     Liens for Taxes (other than Permitted Liens) upon any of the assets of
     VitalStream or any

                                      -46-
<Page>

     VitalStream Subsidiary. No Claim has ever been made by an authority in a
     jurisdiction where VitalStream or any VitalStream Subsidiary does not file
     Tax Returns that it is or may be subject to Taxation by that jurisdiction.
     No foreign, federal, state or local Tax audits or administrative or
     judicial proceedings are pending or being conducted with respect to
     VitalStream or any VitalStream Subsidiary. No information related to Tax
     matters has been requested by any foreign, federal, state or local Taxing
     authority, no written notice indicating an intent to open an audit or other
     review has been received by VitalStream or any VitalStream Subsidiary from
     any foreign, federal, state or local Taxing authority, and no notice of
     deficiency or proposed adjustment for any amount of Tax proposed, asserted
     or assessed by a Taxing authority against VitalStream or any VitalStream
     Subsidiary has been received by VitalStream or any VitalStream Subsidiary
     and there are no material unresolved questions or claims concerning
     VitalStream's or any VitalStream Subsidiary's Tax Liability.

          (ii)    Neither VitalStream nor any VitalStream Subsidiary has made an
     election under Section 341(f) of the Code. Neither VitalStream nor any
     VitalStream Subsidiary is liable for the Taxes of another Person that is
     not a Subsidiary under (A) Treas. Reg. Section 1.1502-6 (or comparable
     provisions of state, local or foreign Law), (B) as a transferee or
     successor, (C) by contract or indemnity or (D) otherwise. Neither
     VitalStream nor any VitalStream Subsidiary is a party to any Tax allocation
     or sharing agreement. Neither VitalStream nor any VitalStream Subsidiary
     has made any payments, is not obligated to make payments and is not a party
     to an agreement that could obligate it to make any payments that would not
     be deductible under Section 280G of the Code.

     (n)  REAL PROPERTY.

          (i)     Neither VitalStream nor any VitalStream Subsidiary owns any
     Real Property. Neither VitalStream nor any VitalStream Subsidiary is a
     party to any agreement or option to purchase any Real Property or interest
     therein.

          (ii)    SCHEDULE 4(n)(ii) attached hereto sets forth a true and
     complete list of (A) the address of each parcel relating to, used in
     connection with, or necessary or useful in, the operation or conduct of the
     business of VitalStream and the VitalStream Subsidiaries (collectively, the
     "VITALSTREAM LEASED REAL PROPERTY") and (B) the date and the names of the
     parties to each Real Property Lease in respect of each parcel of
     VitalStream Leased Real Property (collectively, the "VITALSTREAM REAL
     PROPERTY LEASES"). VitalStream has delivered to Hosting a true and complete
     copy of each written VitalStream Real Property Lease, and in the case of
     any oral VitalStream Real Property Lease, a written summary of the material
     terms of such VitalStream Real Property Lease. Except as set forth on
     SCHEDULE 4(N)(II) attached hereto, with respect to each VitalStream Real
     Property Lease:

                  (A)  such VitalStream Real Property Lease is legal, valid,
          binding, enforceable and in full force and effect, except as such
          enforceability may be limited by (1) applicable insolvency,
          bankruptcy, reorganization, moratorium or other similar Laws affecting
          creditors' rights generally and (2) applicable equitable principles
          (whether considered in a proceeding at law or in equity);

                                      -47-
<Page>

                  (B)  the transactions contemplated by this Agreement and the
          other Transaction Agreements do not require the consent of any other
          party to such VitalStream Real Property Lease (except as set forth in
          SCHEDULE 4(b) attached hereto), will not result in a breach of or
          default under such VitalStream Real Property Lease, and will not
          otherwise cause such VitalStream Real Property Lease to cease to be
          legal, valid, binding, enforceable and in full force and effect on
          identical terms following the Closing;

                  (C)  VitalStream's and the VitalStream Subsidiaries'
          possession and quiet enjoyment of the VitalStream Leased Real Property
          under such VitalStream Real Property Lease has not been disturbed and
          there are no disputes with respect to such VitalStream Real Property
          Lease;

                  (D)  None of VitalStream, any VitalStream Subsidiary or, to
          the Knowledge of VitalStream, any other party to such VitalStream Real
          Property Lease is in breach or default under such VitalStream Real
          Property Lease, and no event has occurred or circumstance exists
          which, with the delivery of notice, the passage of time or both, would
          constitute such a breach or default, or permit the termination,
          modification or acceleration of rent under such VitalStream Real
          Property Lease;

                  (E)  Neither VitalStream nor VitalStream Subsidiary owes, or
          will owe in the future, any brokerage commissions or finder's fees
          with respect to such VitalStream Real Property Lease;

                  (F)  The other party to such VitalStream Real Property Lease
          is not an Affiliate of, and otherwise does not have any economic
          interest in, VitalStream or any VitalStream Subsidiary;

                  (G)  Neither VitalStream nor any VitalStream Subsidiary has
          subleased, licensed or otherwise granted any Person the right to use
          or occupy such VitalStream Leased Real Property or any portion
          thereof;

                  (H)  Neither VitalStream nor any VitalStream Subsidiary has
          collaterally assigned or granted any other Lien in such VitalStream
          Real Property Lease or any interest therein; and

                  (I)  Except as may arise by operation of law or under any
          VitalStream Real Property Lease, there are no Liens on the estate or
          interest created by such VitalStream Real Property Lease.

          (iii)   All Improvements included in the VitalStream Leased Real
     Property are in good condition and repair and sufficient for the operation
     of VitalStream's and any VitalStream Subsidiary's business as currently
     conducted thereon or contemplated to be conducted thereon. There are no
     structural deficiencies or latent defects affecting any of the Improvements
     and there are no facts or conditions affecting any of the Improvements
     which would, individually or in the aggregate, interfere in any respect
     with the use or

                                      -48-
<Page>

     occupancy of the Improvements or any portion thereof in the operation of
     VitalStream's and any VitalStream Subsidiary's business as currently
     conducted thereon or contemplated to be conducted thereon.

          (iv)    There is no condemnation, expropriation or other proceeding in
     eminent domain, pending or threatened, affecting any parcel of VitalStream
     Leased Real Property or any portion thereof or interest therein. There is
     no injunction, decree, order, writ or judgment outstanding, nor any Claims,
     administrative actions or similar proceedings, pending or threatened,
     relating to the ownership, lease, use or occupancy of the VitalStream
     Leased Real Property or any portion thereof, or the operation of
     VitalStream's and any VitalStream Subsidiary's business as currently
     conducted thereon or contemplated to be conducted thereon.

          (v)     The VitalStream Leased Real Property is in compliance with all
     applicable Real Property Laws (including any Environmental, Health and
     Safety Requirements, zoning, planning, subdivision, platting or similar
     Laws) affecting the VitalStream Leased Real Property, and the current use
     and occupancy of the VitalStream Leased Real Property and operation of by
     VitalStream and the VitalStream Subsidiaries of their business thereon does
     not violate any Real Property Laws. VitalStream has not received any notice
     of violation of any Real Property Law and there is no basis for the
     issuance of any such notice or the taking of any action for such violation.
     There is no pending or anticipated change in any Real Property Law that
     will have a VitalStream Material Adverse Effect on the ownership, lease,
     use or occupancy of any VitalStream Leased Real Property or any portion
     thereof in the continued operation of VitalStream's and any VitalStream
     Subsidiary's business as currently conducted thereon or contemplate to be
     conducted thereon.

     (o)  ENVIRONMENTAL MATTERS.

          (i)     Each of VitalStream, the VitalStream Subsidiaries and their
     predecessors has complied and is in compliance with all Environmental,
     Health and Safety Requirements and all permits thereunder.

          (ii)    Neither VitalStream, the VitalStream Subsidiaries nor any of
     their predecessors or Affiliates has received any written or oral notice,
     report or other information regarding any actual or alleged violation of
     Environmental, Health, and Safety Requirements, or any Liabilities or
     potential Liabilities, including any investigatory, remedial or corrective
     Liabilities, relating to any of them or their facilities arising under
     Environmental, Health, and Safety Requirements.

          (iii)   Neither VitalStream, the VitalStream Subsidiaries nor their
     predecessors and Affiliates has assumed or undertaken or otherwise become
     subject to any Liability, including any Liability for corrective or
     remedial action, of any other Person relating to Environmental, Health, and
     Safety Requirements.

          (iv)    No facts, events or conditions relating to the past or present
     facilities, properties or operations of VitalStream, the VitalStream
     Subsidiaries, or any of their

                                      -49-
<Page>

     predecessors or Affiliates will prevent, hinder or limit continued
     compliance with Environmental, Health, and Safety Requirements, give rise
     to any investigatory, remedial or corrective obligations pursuant to
     Environmental, Health, and Safety Requirements, or give rise to any other
     Liabilities pursuant to Environmental, Health, and Safety Requirements,
     including any relating to onsite or offsite releases or threatened releases
     of hazardous materials, substances or wastes, personal injury, property
     damage or natural resources damage.

          (v)     None of VitalStream, the VitalStream Subsidiaries or their
     predecessors or Affiliates has treated, stored, disposed of, arranged for
     or permitted the disposal of, transported, handled, or released any
     substance, including any hazardous substance, or owned or operated any
     property or facility (and no such property or facility is contaminated by
     any such substance) in a manner that has given rise to Liabilities or give
     rise to Liabilities, including any Liability for response costs, corrective
     action costs, personal injury, property damage, natural resource damages or
     attorney fees, pursuant to CERCLA or any other Environmental, Health, and
     Safety Requirements

          (vi)    VitalStream has provided to Hosting copies of all material
     environmental reports, audits, assessments, and investigations, and any
     other material environmental documents, related to the past or present
     facilities, properties or operations of VitalStream, the VitalStream
     Subsidiaries or their predecessors or Affiliates, to the extent the
     forgoing are in the possession, custody, or control of VitalStream.

     (p)  INTELLECTUAL PROPERTY RIGHTS.

          (i)     Each of VitalStream and the VitalStream Subsidiaries own and
     possess all right, title and interest in and to, free and clear of any
     Liens, Claims, Indebtedness, licenses, restrictions on transfer or any
     other restrictions or limitations, except for Permitted Liens, or has the
     right to use pursuant to a valid and enforceable, written license,
     sublicense, agreement, or other permission, all Intellectual Property
     Rights relating to, or used in connection with, the operation or conduct of
     the business of VitalStream and the VitalStream Subsidiaries as presently
     conducted (the "VITALSTREAM INTELLECTUAL PROPERTY RIGHTS"). The VitalStream
     Intellectual Property Rights will be owned or available for use by
     VitalStream and the VitalStream Subsidiaries immediately subsequent to the
     Closing on identical terms and conditions as applicable to VitalStream
     immediately prior to the Closing. VitalStream has taken all commercially
     reasonable actions to maintain and protect the VitalStream Intellectual
     Property Rights.

          (ii)    To the Knowledge of VitalStream, neither VitalStream nor the
     VitalStream Subsidiaries has interfered with, infringed upon, violated,
     misappropriated, or otherwise come into conflict with any Intellectual
     Property Rights of any other Person and, to the Knowledge of VitalStream,
     the continued conduct and operation of its business as presently conducted
     and operated will not interfere with, infringe upon, violate,
     misappropriate or otherwise come into conflict with any Intellectual
     Property Rights of any other Person. Neither VitalStream nor any
     VitalStream Subsidiary has ever received any Claim or notice alleging any
     such interference, infringement, conflict, misappropriation, or violation
     (including, but not limited to, any Claim that VitalStream

                                      -50-
<Page>

     or any VitalStream Subsidiary must license or refrain from using any
     Intellectual Property Rights of any other Person or any demand or offer to
     license any Intellectual Property Rights from any Person), and VitalStream
     is not aware of any facts that indicate a likelihood of any of the
     foregoing. To the Knowledge of VitalStream, no third party has interfered
     with, infringed upon, misappropriated, or otherwise come into conflict with
     any VitalStream Intellectual Property Rights, and VitalStream is not aware
     of any facts that indicate a likelihood of any of the foregoing.

          (iii)   SCHEDULE 4(p)(iii) attached hereto identifies (A) each patent
     or registration which has been issued to VitalStream or any VitalStream
     Subsidiary with respect to any VitalStream Intellectual Property Rights and
     each pending patent application or application for registration which
     VitalStream or any VitalStream Subsidiary has made with respect to any
     VitalStream Intellectual Property Rights (B) each license, sublicense,
     agreement, or other permission which VitalStream or any VitalStream
     Subsidiary has granted to any Person with respect to any VitalStream
     Intellectual Property Rights (other than such licenses, sublicenses and
     other permissions as are granted in the Ordinary Course of Business under
     the terms of VitalStream form licensing agreements) (together with any
     exceptions); (C) each material unregistered trademark, copyright, material
     unregistered service mark, trade name, corporate name, Internet domain
     name, computer software item (other than commercially available
     off-the-shelf software purchased or licensed for less than a total cost of
     $1,000 in the aggregate) within the VitalStream Intellectual Property
     Rights; and (D) any other material VitalStream Intellectual Property
     Rights. VitalStream has delivered to Hosting correct and complete copies of
     all such patents, registrations, applications, licenses, sublicenses,
     agreements, and permissions (as amended to date) and has made available to
     Hosting correct and complete copies of all other written documentation
     evidencing ownership and prosecution (if applicable) of each such item.

          (iv)    SCHEDULE 4(p)(iv) attached hereto identifies each VitalStream
     Intellectual Property Right that any third party owns and that VitalStream
     or the VitalStream Subsidiaries use (or contemplate to use) pursuant to a
     written license, sublicense, agreement, or permission (other than
     commercially available off-the-shelf software purchased or licensed for
     less than a total cost of $1,000 in the aggregate). VitalStream has
     delivered to Hosting correct and complete copies of all such licenses,
     sublicenses, agreements, and permissions (as amended to date). With respect
     to each Intellectual Property Right required to be identified on SCHEDULE
     4(p)(iv) attached hereto:

                  (A)  the license, sublicense, agreement, or permission
          covering such VitalStream Intellectual Property Right is legal, valid,
          binding, enforceable, and in full force and effect;

                  (B)  the license, sublicense, agreement, or permission
          covering such VitalStream Intellectual Property Right will continue to
          be legal, valid, binding, enforceable, and in full force and effect on
          identical terms following the consummation of the transactions
          contemplated by this Agreement (including the assignments and
          assumptions referred to in SECTION 2 of this Agreement);

                                      -51-
<Page>

                  (C)  to the Knowledge of VitalStream no party to the license,
          sublicense, agreement, or permission covering such VitalStream
          Intellectual Property Right is in breach or default, and, to the
          Knowledge of VitalStream, no event has occurred which with notice or
          lapse of time would constitute a breach or default or permit
          termination, modification, or acceleration thereunder;

                  (D)  to the Knowledge of VitalStream no party to the license,
          sublicense, agreement, or permission covering such VitalStream
          Intellectual Property Right has repudiated any provision thereof;

                  (E)  such VitalStream Intellectual Property Right is not
          subject to any outstanding injunction, judgment, order, decree, ruling
          or charge;

                  (F)  no Claim is pending or, to the Knowledge of VitalStream
          (and employees with responsibility for Intellectual Property Right
          matters), is threatened which challenges the legality, validity, or
          enforceability of such VitalStream Intellectual Property Right and
          there are no grounds for the same; and

                  (G)  Neither VitalStream nor any VitalStream Subsidiary has
          granted any sublicense or similar right with respect to the license,
          sublicense, agreement, or permission covering such VitalStream
          Intellectual Property Right.

          (v)     No VitalStream Intellectual Property Right is subject to any
     outstanding injunction, judgment, order, decree, ruling, or charge. No
     Claim is pending or, to the Knowledge of VitalStream (and employees with
     responsibility for Intellectual Property Right matters), is threatened
     which challenges the legality, validity, enforceability, use, or ownership
     of any VitalStream Intellectual Property Right, and, to the Knowledge of
     VitalStream, there are no grounds for the same. To the Knowledge of
     VitalStream, no loss or expiration of any VitalStream Intellectual Property
     Right is threatened, pending, or reasonably foreseeable, except for patents
     expiring at the end of their statutory terms (and not as a result of any
     act or omission by VitalStream or any VitalStream Subsidiary, including, a
     failure by VitalStream or any VitalStream Subsidiary to pay any required
     maintenance fees).

     (q)  EMPLOYEES.

          (i)     Except as set forth on SCHEDULE 4(q) attached hereto:

                  (A)  Neither VitalStream nor any of the VitalStream
          Subsidiaries is a party to or bound by any collective bargaining
          agreement or relationship with any labor organization;

                  (B)  To the Knowledge of VitalStream, no executive, key
          employee or group of employees has any plans to terminate their
          employment with any Buying Party or any VitalStream Subsidiary;

                                      -52-
<Page>

                  (C)  to the Knowledge of VitalStream, no labor organization or
          group of employees has filed any representation petition or made any
          written or oral demand for recognition;

                  (D)  no union organizing or decertification efforts are
          underway or, to the Knowledge of VitalStream, threatened;

                  (E)  within the past five (5) years no labor strike, work
          stoppage, slowdown, or other labor dispute has occurred, and none is
          underway or, to the Knowledge of VitalStream, threatened;

                  (F)  there is no workman's compensation Liability, experience
          or matter that would reasonably be expected to have a VitalStream
          Material Adverse Effect; and

                  (G)  there is no employment-related charge, complaint,
          grievance, investigation, inquiry or Liability of any kind, pending or
          threatened in any forum, relating to an alleged violation or breach by
          VitalStream or any VitalStream Subsidiary (or their officers or
          directors) of any Law, regulation or contract and, to the Knowledge of
          VitalStream, no facts or circumstances exist that would reasonably be
          expected to give rise to such a charge, complaint, grievance,
          investigation, inquiry or Liability.

          (ii)    Any notice of the transaction contemplated by this Agreement
     required under any Law or collective bargaining agreement has been given,
     and all bargaining obligations with any labor organization or other
     employee representative have been, or prior to Closing will be, satisfied.

          (iii)   No plant closing or mass layoff of employees has been
     implemented that could implicate the WARN Act.

     (r)  EMPLOYEE BENEFITS.

          (i)     Neither VitalStream nor any VitalStream Subsidiary has any
     obligation to contribute to (or any other Liability, including current or
     potential withdrawal liability, with respect to) any "multiemployer plan"
     (as defined in Section 3(37) of ERISA), or any "defined benefit plan" (as
     defined in Section 3(35) of ERISA), whether or not terminated.

          (ii)    Except as set forth on SCHEDULE 4(r) attached hereto, neither
     VitalStream nor any VitalStream Subsidiary maintains or has any obligation
     to contribute to (or any other Liability with respect to) any plan or
     arrangement whether or not terminated, which provides medical, health, life
     insurance or other welfare-type benefits for current or future retired or
     terminated employees (except for limited continued medical benefit coverage
     required to be provided under COBRA).

          (iii)   Except as set forth on SCHEDULE 4(r) attached hereto,
     VitalStream does not maintain, contribute to or have any Liability under
     (or with respect to) any employee plan

                                      -53-
<Page>

     which is a "defined contribution plan" (as defined in Section 3(34) of
     ERISA), whether or not terminated (the "VITALSTREAM DEFINED CONTRIBUTION
     PLAN").

          (iv)    Except for the VitalStream Defined Contribution Plan and as
     set forth on SCHEDULE 4(r) attached hereto, neither VitalStream nor any
     VitalStream Subsidiary maintains, contributes to or has any Liability under
     (or with respect to) any Employee Benefit Plan providing benefits to
     current or former employees, including any bonus plan, plan for deferred
     compensation, employee health or other welfare benefit plan or other
     arrangement, whether or not terminated. Such Employee Benefit Plans are
     referred to as the "OTHER VITALSTREAM PLANS" and, together with the
     VitalStream Defined Contribution Plan, the "VITALSTREAM PLANS."

          (v)     With respect to the VitalStream Defined Contribution Plan and
     the Other VitalStream Plans (collectively, the "VITALSTREAM PLANS"), all
     required or recommended (in accordance with historical practices) payments,
     premiums, contributions, reimbursements or accruals for all periods (or
     partial periods) ending prior to or as of the date hereof shall have been
     made or properly accrued on the Most Recent VitalStream Balance Sheet. None
     of the VitalStream Plans has any material unfunded Liabilities which are
     not reflected on the Most Recent VitalStream Balance Sheet.

          (vi)    The VitalStream Plans and all related trusts, insurance
     contracts and funds have been maintained, funded and administered in
     accordance with their terms and have complied in form and in operation in
     all material respects with the applicable requirements of ERISA, the Code
     and other applicable Laws. The requirements of COBRA have been met in all
     material respects with respect to each VitalStream Plan which is an
     "employee welfare benefit plan" (as such term is defined in Section 3(1) of
     ERISA) which is subject to COBRA.

          (vii)   Each of the VitalStream Plans which is intended to be
     qualified under Section 401(a) of the Code has received a favorable
     determination from the Internal Revenue Service that such VitalStream Plan
     is qualified under Section 401(a) of the Code, and there are no
     circumstances which could reasonably be expected to adversely affect the
     qualified status of any such VitalStream Plan. All such VitalStream Plans
     have been or will be timely amended for the requirements of the Tax
     legislation commonly known as "GUST" and have been or will be submitted to
     the Internal Revenue Service for a favorable determination letter within
     the remedial amendment period prescribed by GUST.

          (viii)  No action, suit, proceeding, hearing, or investigation with
     respect to the administration or the investment of the assets of any
     VitalStream Plan (other than routine claims for benefits) is pending or, to
     the Knowledge of VitalStream, threatened which could result in or subject
     VitalStream or any VitalStream Subsidiary to any material Liability, and
     there are no circumstances which could reasonably be expected to give rise
     to any such actions, suits or claims.

     (s)  INSURANCE. Neither VitalStream nor any of the VitalStream Subsidiaries
is in material default with respect to its obligations under any insurance
policy maintained by it, and

                                      -54-
<Page>

neither VitalStream nor any of the VitalStream Subsidiaries has ever been denied
insurance coverage. The insurance coverage of VitalStream and the VitalStream
Subsidiaries is customary for entities of similar size engaged in similar lines
of business. The reserves set forth on the Most Recent VitalStream Balance Sheet
is adequate to cover all anticipated Liabilities with respect to all
self-insurance or co-insurance programs.

     (t)  AFFILIATE TRANSACTIONS. Except as set forth on the attached SCHEDULE
4(t) attached hereto or in the VitalStream Securities and Exchange Commission
Reports, no officer, director, employee, stockholder, or other Affiliate of
VitalStream or any of the VitalStream Subsidiaries or any individual related by
blood, marriage or adoption to any such individual or any entity in which any
such Person or individual owns any beneficial interest, is a party to any
agreement, contract, commitment or transaction with VitalStream or any of the
VitalStream Subsidiaries or has any material interest in any assets or property
owned or used by VitalStream or any of the VitalStream Subsidiaries.

     (u)  BROKERAGE. Except as set forth on SCHEDULE 4(u), neither VitalStream
nor any of the VitalStream Subsidiaries has any Liability to pay (or has made
any arrangement under which VitalStream or any VitalStream Subsidiary may be
required to pay) any fees or commissions to any broker, finder, or agent with
respect to the transactions contemplated by this Agreement or the other
Transaction Agreements.

     (v)  GOVERNMENTAL CONSENT, ETC. No permit, consent, approval or
authorization of, or declaration to or filing with, any Governmental Entity is
required in connection with the execution, delivery and performance by
VitalStream or the Buyer of this Agreement or any other Transaction Agreement or
the consummation by VitalStream or the Buyer of any of the transactions
contemplated hereby or thereby, except for filings with any Governmental Entity
which are required or permitted to be made after the date hereof pursuant to
applicable federal and state securities Laws and blue sky Laws, which filings
will be effected within the applicable statutory periods.

     (w)  DISCLOSURE. This Agreement, together with the VitalStream Securities
and Exchange Commission Reports and the annexes, schedules, exhibits and
certificates supplied by VitalStream or the Buyer or on behalf of VitalStream or
the Buyer or any of the other VitalStream Subsidiaries with respect to the
transactions contemplated by this Agreement and the other Transaction
Agreements, do not contain any untrue statement of a material fact, as of the
date hereof or thereof, as the case may be, or omit to state a material fact
necessary to make the statements contained herein or therein, in light of the
circumstances in which they were made, not misleading.

     (x)  CAPITAL STOCK AND RELATED MATTERS.

          (i)     The authorized capital stock of VitalStream consists of (A)
     290,000,000 shares of Common Stock, 22,703,719 of which shares of Common
     Stock are issued and outstanding as of the date hereof and (B) 10,000,000
     shares of Preferred Stock, no shares of which have been issued. As of the
     date hereof, VitalStream does not have outstanding any Equity Securities,
     except as set forth on SCHEDULE 4(x)(i) attached hereto. Except as required
     by the Articles of Incorporation, VitalStream is not subject to any
     obligation

                                      -55-
<Page>

     (contingent or otherwise) to repurchase or otherwise acquire or retire any
     of its Equity Securities. All of the outstanding shares of VitalStream's
     capital stock have been validly issued and are fully paid and
     nonassessable. Immediately following the Closing, the Initial Purchase
     Shares shall represent 16.5% of the sum of (1) the number of shares of
     Common Stock issuable pursuant to this Agreement plus (2) the number of
     shares of Fully Diluted Common Stock.

          (ii)    Except as set forth in SCHEDULE 4(x)(ii) attached hereto, (A)
     as of the date of the stockholder list attached as part of SCHEDULE
     4(x)(ii) attached hereto, no person owns of record or is known to
     VitalStream to own of record any Equity Securities of VitalStream; (B) no
     subscription, warrant, option, convertible security, or other right
     (contingent or otherwise) to purchase or otherwise acquire Equity
     Securities of VitalStream issued by VitalStream is authorized or
     outstanding; (C) there is no commitment of VitalStream to issue shares,
     subscriptions, warrants, options, convertible securities, or other such
     rights (contingent or otherwise) or to distribute to holders of any of its
     Equity Securities or Debt Securities any evidence of Indebtedness or
     assets. Except as provided for in the Articles of Incorporation, or as set
     forth in SCHEDULE 4(x)(ii) attached hereto, VitalStream has no obligation
     (contingent or otherwise) to purchase, redeem, or otherwise acquire any of
     its Equity Securities or Debt Securities or any interest therein or to pay
     any dividend or make any other distribution is respect thereof. All of the
     outstanding Equity Securities and Debt Securities of VitalStream were
     issued in compliance with all applicable federal, provincial and state
     securities Laws.

          (iii)   There are no statutory or contractual stockholders preemptive
     rights or rights of refusal with respect to the issuance of the Purchase
     Shares. VitalStream has not violated any applicable securities Laws in
     connection with the offer, sale or issuance of any of its capital stock,
     and (subject to the accuracy of the representations, acknowledgements and
     agreements contained in SECTION 3(z) and SECTION 6(c) of this Agreement),
     the offer, sale and issuance of the Purchase Shares hereunder do not
     require registration under the Securities Act or any applicable state
     securities Laws. To VitalStream's Knowledge, except for the AKKAD
     Agreement, there are no agreements between VitalStream's stockholders with
     respect to the voting or transfer of VitalStream's capital stock or with
     respect to any other aspect of VitalStream's affairs other than as set
     forth in the Articles of Incorporation.

     (y)  ISSUANCE OF THE PURCHASE SHARES. The issuance, sale and delivery of
the Purchase Shares in accordance with this Agreement, have been, or will be on
or prior to the Closing, duly authorized by all necessary corporate action on
the part of VitalStream. The Purchase Shares, when so issued, sold and delivered
against payment therefor in accordance with the provisions of this Agreement,
will be duly and validly issued, fully paid and non-assessable, free and clear
of all Liens, and not subject to any preemptive rights. Subject to the accuracy
of the representations, acknowledgements and agreements contained in SECTION
3(z) and SECTION 6(c) of this Agreement, the offer and sale of the Purchase
Shares to Hosting will be in compliance with all applicable Laws.

     (z)  CUSTOMERS AND SUPPLIERS.

                                      -56-
<Page>

          (i)     Except as set forth on SCHEDULE 4(z) attached hereto, during
     the twelve (12) month period ending on the date hereof, there has not been
     any material interruption or outage (other than as requested by a customer
     of VitalStream or any VitalStream Subsidiary) in the provision by
     VitalStream or any VitalStream Subsidiary to any customer of VitalStream or
     any VitalStream Subsidiary of the goods and services provided by
     VitalStream or any VitalStream Subsidiary in the operation of its Hosting
     Business.

          (ii)    Except as set forth on SCHEDULE 4(z) attached hereto, since
     July 31, 2002, no customer of VitalStream or any VitalStream Subsidiary
     which generated monthly revenues in the one month period ended August 31,
     2002 that accounted for in excess of $5,000 of the monthly revenues of the
     Hosting Business operated by VitalStream and any VitalStream Subsidiary has
     terminated or threatened in writing to terminate its relationship, or any
     agreement, with VitalStream or any VitalStream Subsidiary, as the case may
     be.

     (aa) INVESTMENT COMPANY. The Company is not an "investment company" as
defined under the Investment Company Act of 1940.

     5.   PRE-CLOSING COVENANTS. The Parties agree as follows with respect to
the period between the execution of this Agreement and the Closing.

     (a)  GENERAL. Each of the Parties will, and VitalStream will cause each of
the VitalStream Subsidiaries to, use its reasonable best efforts to take all
action and to do all things necessary, proper or advisable in order to
consummate and make effective the transactions contemplated by this Agreement
and by the other Transaction Agreements (including satisfaction, but not waiver,
of the closing conditions set forth in SECTION 6(h)(i) of this Agreement).

     (b)  NOTICES AND CONSENTS.

          (i)     Each of Hosting and Networks, will give any notices to third
     parties, and each of Hosting and Networks will use their respective
     reasonable best efforts to obtain any third party consents required in
     connection with the consummation of the transactions contemplated by this
     Agreement and the other Transaction Agreements VitalStream may reasonably
     request in connection with the matters contemplated herein and in the other
     Transaction Agreements. Each of Hosting and Networks, will give any notices
     to, make any filings with, and use its reasonable best efforts to obtain
     any authorizations, consents and approvals of any Governmental Entity
     required in connection with the consummation of the transactions
     contemplated by this Agreement and the other Transaction Agreements.

          (ii)    Each of the Buying Parties will, and VitalStream will cause
     each of the other VitalStream Subsidiaries to, give any notices to third
     parties, and each of the Buying Parties will, and VitalStream will cause
     each of the VitalStream Subsidiaries to, use their reasonable best efforts
     to obtain any third party consents required in connection with the
     consummation of the transactions contemplated by this Agreement and the
     other

                                      -57-
<Page>

     Transaction Agreements Hosting may reasonably request in connection with
     the matters contemplated herein and in the Transaction Agreements. Each of
     the Buying Parties will, and VitalStream will cause each of the other
     VitalStream Subsidiaries to, give any notices to, make any filings with,
     and use its reasonable best efforts to obtain any authorizations, consents
     and approvals of any Governmental Entity required in connection with the
     consummation of the transactions contemplated by this Agreement and the
     other Transaction Agreements.

     (c)  OPERATION AND PRESERVATION OF BUSINESS.

          (i)     Each of Hosting and Networks shall operate its Hosting
     Business in the Ordinary Course of Business consistent with prudent
     business practices and in compliance with applicable Laws, and to the
     extent consistent therewith so as to preserve the current value and
     integrity of the Hosting Business of Hosting and the Acquired Assets,
     maintain insurance on the Acquired Assets (in amounts and types consistent
     with past practice), and use its reasonable best efforts to preserve the
     goodwill and organization of the Hosting Business of Hosting and its
     relationships with customers, suppliers and others having business dealings
     with it. Neither Hosting nor Networks will engage in any practice, take any
     action, or enter into any transaction outside the Ordinary Course of
     Business of their respective Hosting Businesses.

          (ii)    VitalStream shall, and shall cause each of the VitalStream
     Subsidiaries to, operate its business in the Ordinary Course of Business
     consistent with prudent business practices and in compliance with
     applicable Laws, and to the extent consistent therewith so as to preserve
     the current value and integrity of its business, and use its reasonable
     best efforts to preserve the goodwill and organization of its business and
     its relationships with customers, suppliers and others having business
     dealings with it. VitalStream will not, and will cause each of the
     VitalStream Subsidiaries not to, engage in any practice, take any action,
     or enter into any transaction (other than a transaction described in
     SECTION 5(f) of this Agreement which shall be governed by SECTION 5(f) of
     this Agreement) outside the Ordinary Course of Business.

     (d)  FULL ACCESS.

          (i)     Each of Hosting and Networks shall afford to VitalStream and
     its counsel, accountants, agents and other authorized representatives
     specified by VitalStream access during business hours to their respective
     premises, properties, personnel, books, records (including Tax records),
     contracts and documents of or pertaining to the Acquired Assets in order
     that VitalStream may have full opportunity to make such reasonable
     investigations as it shall desire to make of the affairs of the Acquired
     Assets and their respective Hosting Businesses. Each of Hosting and
     Networks shall cause its officers and employees, and shall use its best
     efforts to cause their counsel and auditors to furnish such additional
     financial and operating data and other information as VitalStream shall
     from time to time reasonably request including any internal control
     recommendations made by its independent auditors in connection with any
     audit of their respective Hosting Businesses. From time to time prior to
     the Closing Date, each of Hosting and Networks shall promptly supplement or
     amend information previously delivered to VitalStream

                                      -58-
<Page>

     with respect to any matter hereafter arising which, if existing or
     occurring at the date of this Agreement, would have been required to be set
     forth or disclosed herein; provided, however, that such supplemental
     information shall not be deemed to be an amendment to any schedule hereto
     and shall not change the risk allocation of this Agreement between
     VitalStream, on the one hand, and Hosting and Networks, on the other hand.

          (ii)    VitalStream shall, and shall cause each of the VitalStream
     Subsidiaries to, afford to Hosting and its counsel, accountants, agents and
     other authorized representatives specified by Hosting access during
     business hours to the premises, properties, personnel, books, records
     (including Tax records), contracts and documents of or pertaining to
     VitalStream and each of the VitalStream Subsidiaries in order that Hosting
     may have full opportunity to make such reasonable investigations as it
     shall desire to make of the affairs of VitalStream and each of the
     VitalStream Subsidiaries. VitalStream shall, and shall cause each of the
     VitalStream Subsidiaries to, cause its officers and employees, and shall
     use its best efforts to cause their counsel and auditors to furnish such
     additional financial and operating data and other information as Hosting
     shall from time to time reasonably request including, any internal control
     recommendations made by its independent auditors in connection with any
     audit of VitalStream and the VitalStream Subsidiaries. From time to time
     prior to the Closing Date, VitalStream shall promptly supplement or amend
     information previously delivered to Hosting with respect to any matter
     hereafter arising which, if existing or occurring at the date of this
     Agreement, would have been required to be set forth or disclosed herein;
     provided, however, that such supplemental information shall not be deemed
     to be an amendment to any schedule hereto and shall not change the risk
     allocation of this Agreement between VitalStream, on the one hand, and
     Hosting and Networks, on the other hand.

     (e)  NOTICE OF DEVELOPMENTS. Each Party will give prompt written notice to
the other Party of any material adverse development causing a breach of any of
its own representations and warranties set forth in SECTION 2(j) and SECTION 4
of this Agreement. No disclosure by any Party pursuant to this SECTION 5(e),
however, shall be deemed to amend or supplement any schedule attached hereto or
to prevent or cure any misrepresentation, breach of warranty, or breach of
covenant.

     (f)  EXCLUSIVITY.

          (i)     During the period beginning on the date of the execution of
     this Agreement and continuing until the earlier of (A) the termination of
     this Agreement and (B) the consummation of the transactions contemplated by
     this Agreement, no Party (nor any of such Party's stockholders, directors,
     officers, employees, agents or representatives, if any) will, without the
     prior written approval of each of the other Parties:

                  (A)  solicit, initiate, encourage the submission or discuss
          any proposal or offer from any Person (other than the Parties)
          relating to any financing, acquisition, divestiture or business
          combination of or involving the Hosting Business of such Party
          (including any acquisition or divestiture of any capital stock or
          other voting securities or any portion of the assets of such Party and
          any

                                      -59-
<Page>

          acquisition structured as a merger, consolidation, or share exchange)
          other than communications necessary to advise Persons of such Party's
          lack of interest in any such proposal or offer or

                  (B)  participate in any discussions or negotiations regarding,
          furnish any information with respect to, assist or participate in, or
          facilitate in any other manner any effort or attempt by any Person to
          do or seek any of the foregoing.

          (ii)    For the avoidance of any doubt, this SECTION 5(f) shall not
     prohibit any transaction involving, Holdings, Networks or any of their
     respective Affiliates, stockholders, directors, officers, employees, agents
     or representatives in connection with any financing, acquisition,
     divestiture or business combination (including any acquisition or
     divestiture of any capital stock or other voting securities or any portion
     of the assets of such Party and any acquisition structured as a merger,
     consolidation, or share exchange) of or involving the business and
     operations of Networks or Holdings (or any of their respective
     Subsidiaries) other than their respective Hosting Business including,
     without limitation, the transactions contemplated by that certain Asset
     Purchase Agreement dated as of October 10, 2002, by and among Netifice,
     Holdings and Networks.

          (iii)   Notwithstanding anything to the contrary set forth in SECTION
     5(f)(i) of this Agreement, this Section 5(f) shall not prohibit (A) the
     issuance of Equity Securities of VitalStream upon the exercise of any
     options or warrants outstanding on the Closing Date, (B) the grant of
     options by VitalStream pursuant to the VitalStream 2001 Stock Incentive
     Plan, (C) the discussion by VitalStream of any transaction involving
     VitalStream or any VitalStream Subsidiary or any of their respective
     Affiliates, stockholders, directors, officers, employees, agents or
     representatives (each a "VITALSTREAM PARTY") in connection with any
     financing, acquisition, divestiture or business combination (including any
     acquisition or divestiture of any Equity Securities or any portion of the
     assets of such VitalStream Party and any acquisition structured as a
     merger, consolidation or share exchange) of or involving the business and
     operations of VitalStream or any VitalStream Subsidiary (a "VITALSTREAM
     TRANSACTION") PROVIDED, HOWEVER, that such VitalStream Party shall promptly
     update Dolphin as to any material information regarding a VitalStream
     Transaction and provide Dolphin with at least a weekly update of such
     discussions (in writing, if Dolphin shall so request) regarding any
     VitalStream Transaction and copies of all term sheets, agreements and any
     other documentation or correspondence prepared for or in connection with
     such VitalStream Transaction and PROVIDED FURTHER, that no VitalStream
     Party shall enter into any term sheet, contract or other agreement or
     arrangement (whether written or oral) upon the earlier to occur of (1)
     December 31, 2002, and (2) that date that is fifteen days following the
     Closing Date. VitalStream hereby represents and warrants that neither
     VitalStream, any VitalStream Subsidiary nor, to the Knowledge of
     VitalStream, any other VitalStream Party has entered into any executory
     agreement which has not yet terminated or accepted any commitment with
     respect to any VitalStream Transaction.

     6.   ADDITIONAL AGREEMENTS.

                                      -60-
<Page>

     (a)  GENERAL. At any time after the Closing, if any further action is
necessary or desirable to carry out the purposes of this Agreement or any other
Transaction Agreement (including any action necessary to transfer, convey and
assign the Acquired Assets to VitalStream and to put VitalStream in the
possession and operating control of the Acquired Assets), each of the Parties
will take such further action (including the execution and delivery of such
further instruments and documents of sale, transfer, conveyance, assignment and
confirmation) as any other Party may request, at the sole cost and expense of
the requesting Party (unless the requesting Party is entitled to indemnification
therefor under SECTION 8 of this Agreement). Each of Hosting and Networks
acknowledges and agrees that from and after the Closing Date VitalStream will be
entitled to possession of all documents, books, records (including Tax records),
agreements, and financial data of any sort relating to the Hosting Business of
Hosting or the Acquired Assets. Networks acknowledges and agrees that from and
after the Closing Date VitalStream will be entitled to possession of all
documents, books, records (including Tax records), agreements, and financial
data of any sort relating solely to the Hosting Business of Networks.

     (b)  LITIGATION SUPPORT. At any time after the Closing, in the event and
for so long as any Party actively is contesting or defending against any Claim
in connection with (i) any transaction contemplated under this Agreement or any
Transaction Agreement or (ii) any fact, situation, circumstance, status,
condition, activity, practice, plan, occurrence, event, incident, action,
failure to act, or transaction on or prior to the Closing Date involving the
Hosting Business of Hosting or Networks or the Acquired Assets, the other
Parties will (and VitalStream will cause each of the VitalStream Subsidiaries
to) cooperate with the contesting or defending Party and its counsel in the
contest or defense, make available its personnel, and provide such testimony and
access to its books and records as shall be necessary in connection with the
contest or defense, all at the sole cost and expense of the contesting or
defending Party (unless the contesting or defending Party is entitled to
indemnification therefor under SECTION 8 of this Agreement).

     (c)  PURCHASE SHARES.

          (i)     The Purchase Shares issued pursuant to this Agreement will be
     imprinted with a legend substantially in the following form:

         "THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
         APPLICABLE 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.

                                      -61-
<Page>

         "THE TRANSFER OF THE SECURITIES REPRESENTED BY THIS
         INSTRUMENT ARE SUBJECT TO THE CONDITIONS SPECIFIED IN THE
         ASSET 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."

          (ii)    Hosting acknowledges and agrees that the Purchase Shares it is
     acquiring pursuant to this Agreement are characterized as "restricted
     securities" under the federal securities Laws inasmuch as they are being
     acquired from VitalStream in a transaction not involving a public offering
     and that under such Laws such securities may be resold without registration
     under the Securities Act only in certain limited circumstances as set forth
     in this SECTION 6(c). Restricted Securities are transferable only pursuant
     to (A) public offerings registered under the Securities Act, (B) Rule 144
     or Rule 144A adopted by the Securities and Exchange Commission under the
     Securities Act (as such rule may be amended from time to time) or any
     similar rule or regulation hereafter adopted by the Securities and Exchange
     Commission if the exemption from registration under such rule is available
     and (C) subject to the conditions specified in SECTION 6(c)(iii) below, any
     other legally available means of transfer.

          (iii)   In connection with the transfer of any Restricted Securities
     (other than a transfer described in SECTION 6(c)(ii) of this Agreement),
     the holder thereof shall deliver written notice to VitalStream describing
     in reasonable detail the transfer or proposed transfer, together with an
     opinion of legal counsel which is knowledgeable in securities Law matters
     to the effect that such transfer of Restricted Securities may be effected
     without registration of such Restricted Securities under the Securities
     Act. In addition, if the transferring holder delivers to VitalStream an
     opinion of such legal counsel that no subsequent transfer of such
     Restricted Securities shall require registration under the Securities Act,
     VitalStream shall promptly upon such contemplated transfer deliver new
     certificates for such Restricted Securities which do not bear the
     Securities Act legend set forth in SECTION 6(c)(i) of this Agreement. If
     VitalStream is not required to deliver new certificates for such Restricted
     Securities not bearing such legend, the holder thereof shall not transfer
     the same until the prospective transferee has confirmed to VitalStream in
     writing its agreement to be bound by the conditions contained in this
     SECTION 6(c).

          (iv)    Notwithstanding any provision of this Agreement to the
     contrary, upon the request of the holders of a majority of the Purchase
     Shares, VitalStream shall promptly supply to such holders or their
     prospective transferees all information regarding VitalStream required to
     be delivered in connection with a transfer pursuant to Rule 144A adopted by
     the Securities and Exchange Commission under the Securities Act (as such

                                      -62-
<Page>

     rule may be amended from time to time) or any similar rule or regulation
     hereafter adopted by the Securities and Exchange Commission.

          (v)     If any Restricted Securities become eligible for sale pursuant
     to Rule 144(k) adopted by the Securities and Exchange Commission under the
     Securities Act (as such rule may be amended from time to time) or any
     similar rule or regulation hereafter adopted by the Securities and Exchange
     Commission, VitalStream shall, upon the request of the holder of such
     Restricted Securities remove the legend set forth in SECTION 6(c)(i) of
     this Agreement from the certificates for such Restricted Securities.

     (d)  EMPLOYEES. As of the Closing Date, Networks shall terminate the
employment of each individual currently employed by Networks and listed on ANNEX
1 (the "ELIGIBLE NETWORKS EMPLOYEES"). As of the Closing Date, VitalStream will
offer employment to the Eligible Networks Employees on such terms and conditions
as VitalStream shall determine in its sole discretion. Those Eligible Networks
Employees who accept such offer of employment as of the Closing Date shall be
referred to herein as the "TRANSFERRED EMPLOYEES." Notwithstanding the
provisions of this SECTION 6(d), nothing in this Agreement shall limit
VitalStream's ability to terminate the employment of any Transferred Employee at
any time and for any reason, including without cause. Networks shall be liable
for all severance costs and other Liabilities incurred as a result of the
termination of the Transferred Employees other than those severance costs and
other Liabilities expressly assumed by VitalStream pursuant to the terms of this
Agreement. VitalStream will use its reasonable best efforts to assist Networks
in obtaining releases of Liability of Hosting and Networks from all Transferred
Employees.

     (e)  NON-COMPETITION; NON-INTERFERENCE; NON-SOLICITATION. As a significant
inducement to the Buying Parties to enter into and perform their obligations
under this Agreement, each of Networks and Hosting (collectively, the
"NONCOMPETING PARTIES"), hereby agree as follows:

          (i)     Each Noncompeting Party acknowledges that (A) a principal
     business of Hosting is the Hosting Business of Hosting; (B) Hosting and
     Networks are among a limited number of Persons who have developed a Hosting
     Business; (C) the Hosting Business of Hosting and Networks is, in part,
     national and international in scope; (D) the agreements and covenants of
     each Noncompeting Party contained in this SECTION 6(e)(i) are essential to
     the business and goodwill of the Hosting Business of Hosting and Networks
     and the use by VitalStream of the Acquired Assets and the conduct by
     VitalStream of the Hosting Business of Hosting and Networks; and (E)
     VitalStream would not have entered into this Agreement and would not have
     purchased the Acquired Assets but for the covenants and agreements set
     forth in this SECTION 6(e)(i). Accordingly, each of the Noncompeting
     Parties covenants and agrees that:

                  (A)  During the period commencing on the Closing Date and
          ending five (5) years following the Closing Date (the "RESTRICTED
          PERIOD"), none of the Noncompeting Parties will directly or
          indirectly, own, operate, manage, control, participate in, consult
          with, advise, permit its name to be used by, provide services for,
          lease, or in any manner engage in any business that manufactures or
          sells any products or provides any services which are in competition
          with any

                                      -63-
<Page>

          products or services of the Hosting Business of Hosting and Networks
          anywhere in the United States, as such businesses exist as of the
          Closing Date (collectively, "COVERED ACTIVITIES").

                  (B)  At all times after the date hereof, each of the
          Noncompeting Parties shall keep secret and retain in strictest
          confidence all Confidential Information, and shall not use for its
          benefit or for the benefit of any third party, any and all
          Confidential Information and shall not disclose any Confidential
          Information to anyone outside of each of the Noncompeting Parties and
          their Affiliates and advisors who do not presently have such
          Confidential Information, except with the express written consent of
          VitalStream and except for Confidential Information which is at the
          time of receipt or thereafter becomes publicly known through no
          wrongful act of any of the Noncompeting Parties of their Affiliates.

                  (C)  During the Restricted Period, none of the Noncompeting
          Parties shall, without the prior written consent of VitalStream,
          directly or indirectly, (i) induce or attempt to induce any employee
          of any Buying Party to leave the employ of any Buying Party, (ii)
          employ any employee of any Buying Party when employed by any Buying
          Party, (iii) in any other way interfere with the relationship between
          any Buying Party and any employee of any Buying Party, (iv) employ
          during the period commencing from the date hereof and ending two (2)
          years following the Closing Date any Person (other than a Transferred
          Employee) who is employed by any Buying Party during such period, or
          (v) induce or attempt to induce any customer, supplier, licensee,
          licensor, reseller, partner or franchisee of any Buying Party
          (including any Hosting Business Customer) to cease doing business with
          any Buying Party, or in any way interfere with the relationship
          between any such customer, supplier, licensee, licensor, reseller,
          partner or franchisee or business relation and any Buying Party.

          (ii)    Each of Networks and Hosting further acknowledge and agree
     that:

                  (A)  the covenants set forth in SECTION 6(e)(i) of this
          Agreement are reasonable in geographical and temporal scope and in all
          other respects,

                  (B)  VitalStream would not have entered into this Agreement
          but for the covenants of Hosting and Networks contained herein, and

                  (C)  the covenants contained herein have been made in order to
          induce VitalStream to enter into this Agreement and purchase the
          Acquired Assets from which VitalStream will receive substantial
          benefit.

          (iii)   If, at the time of enforcement of the covenants contained in
     SECTION 6(e)(i) of this Agreement, a court shall hold that the duration,
     scope or geographic restrictions stated therein are unreasonable under
     circumstances then existing, the Parties agree that the maximum duration,
     scope or geographic area reasonable under such circumstances shall be
     substituted for the stated duration, scope or geographic area (and any
     court or

                                      -64-
<Page>

     other adjudicator interpreting these provision is hereby authorized to so
     amend this Agreement).

          (iv)    For the avoidance of any doubt, this SECTION 6(e) shall not
     prohibit any transaction by Networks or any assignee of Networks pursuant
     to which Networks or any such assignee shall lease the premises located at
     555 Anton Blvd, Costa Mesa California, to any third party for the purpose
     of the conduct by such third party of its colocation business.

     (f)  NO ASSIGNMENT CAUSING BREACH. Notwithstanding anything in this
Agreement, neither this Agreement nor any document or instrument delivered
pursuant hereto shall constitute an assignment of an Acquired Asset (including
any Claim, contract, commitment, sales order or purchase order or any right or
any benefit arising thereunder or resulting therefrom) if an attempted
assignment thereof without the consent of any other Person would constitute a
breach thereof or in any way adversely affect the rights to be assigned. Until
such consent is obtained, or if an attempted assignment thereunder would be
ineffective or would affect the rights of Hosting thereunder so that
VitalStream, would not in fact receive all such rights, Hosting on the one hand,
and VitalStream, on the other hand, will cooperate with each other to provide
for the benefits of, and to permit VitalStream to assume all Liabilities under,
any such Acquired Asset or Assumed Liability including enforcement at the
request and expense of VitalStream for the benefit of VitalStream any and all
rights of Hosting against any Person thereto arising out of the breach or
cancellation thereof by such Person; and any transfer or assignment to
VitalStream by Hosting of any Acquired Asset which shall require the consent or
approval of any Person shall be made subject to such consent or approval being
obtained.

     (g)  MAIL, NOTICES AND OTHER CORRESPONDENCE.

          (i)     After the Closing, Hosting and Networks shall deliver or cause
     to be delivered to VitalStream, promptly after receipt by Hosting or
     Networks, as the case may be, all mail, notices and other correspondence
     relating to the Acquired Assets or the Hosting Business of Hosting or
     Networks.

          (ii)    After the Closing, each of VitalStream and the Buyer shall
     deliver or cause to be delivered to Hosting, promptly after receipt by
     VitalStream or the Buyer (A) all mail, notices and other correspondence
     which do not relate to the Acquired Assets or the Hosting Business of
     Hosting or Networks, (B) all payments in respect of any accounts or notes
     receivable which constitute an Excluded Asset or (C) any other Excluded
     Asset that comes into its possession at any time after the Closing.

     (h)  TAX MATTERS.

          (i)     Hosting and Networks will be responsible for the preparation
     and filing of all Tax Returns for Hosting and Networks for all periods as
     to which Tax Returns are due after the Closing Date (including the
     consolidated, unitary, and combined Tax Returns for Hosting and Networks
     which include the operations of the Hosting Business of Hosting and
     Networks for any period ending on or before the Closing Date); provided,
     however,

                                      -65-
<Page>

     that VitalStream, will reimburse Hosting or Networks, as the case may be,
     concurrently therewith to the extent any payment Hosting or Networks, as
     the case may be, is making relates to the operations of the Hosting
     Business of Hosting and Networks for any period beginning after the Closing
     Date.

          (ii)    VitalStream will be responsible for the preparation and filing
     of all Tax Returns for the Acquired Assets for all periods as to which Tax
     Returns are due after the Closing Date (other than for Tax Returns of
     Hosting and Networks described in SECTION 6(h)(i) of this Agreement).
     VitalStream will make all payments required with respect to any such Tax
     Return; provided, however, that Hosting or Networks, as the case may be,
     will reimburse VitalStream concurrently therewith to the extent any payment
     VitalStream is making relates to the operations of the Hosting Business of
     Hosting and Networks for any period ending on or before the Closing Date.

          (iii)   Notwithstanding anything in SECTION 6(h)(i) and SECTION 6(h)
     (ii) to the contrary, Hosting shall pay, or reimburse VitalStream for, all
     sales Tax payable to the State of California as a result of the purchase
     and sale of the Acquired Assets pursuant to the Transaction Agreements.

     (i)  NOTICE OF ASSIGNMENT. Hosting shall promptly after the Closing Date
notify the Hosting Business Customers of the assignment of their service
contracts to the Buyer and shall instruct the Hosting Business Customers to make
payments for the services provided by Buyer directly to the Buyer in accordance
with instructions from Buyer.

     (j)  UPDATING HOSTING CONTRACTS LIST

          (i)     At any time and from time to time following the Closing Date,
     if Hosting discovers the existence of an Omitted Hosting Contract, Hosting
     shall deliver to the Buyer and VitalStream an addendum to SCHEDULE 3(l)
     attached hereto listing such Omitted Hosting Contract (each, a "CONTRACT
     ADDENDUM"), together with a true, correct and complete copy of such Omitted
     Hosting Contract. The Buyer shall have ten (10) days after their receipt of
     the Contract Addendum to review the Contract Addendum. To the extent (a)
     the document listed on the Contract Addendum is an Omitted Hosting Contract
     and (b) the performance of such Omitted Hosting Contract, when aggregated
     with all other Omitted Hosting Contracts listed on Contract Addenda
     previously delivered to the Buyer and VitalStream involves the payment by
     or to Hosting of consideration less than or equal to $20,000 annually, such
     Omitted Hosting Contract shall automatically be deemed to have been
     accepted by the Buyer as a Hosting Contract and added to SCHEDULE 3(l)
     attached hereto as of the date hereof. To the extent either (A) the
     document listed on the Contract Addendum is not an Omitted Hosting Contract
     or (B) the performance of such Omitted Hosting Contract, when aggregated
     with all other Omitted Hosting Contracts listed on Contract Addenda
     previously delivered to the Buyer and VitalStream involves the payment by
     or to Hosting of consideration greater than $20,000 annually, the Buyer may
     reject any such asserted Omitted Hosting Contract by delivering written
     notice (the "BUYER REJECTION NOTICE") to Hosting indicating its rejection
     of such asserted Omitted Hosting Contract and the reason for such rejection
     prior to the expiration of the ten (10) day period referred to above. If
     the Buyer does not deliver a

                                      -66-
<Page>

     Buyer Rejection Notice within the ten (10) day period described above, the
     Omitted Hosting Contract described in the respective Contract Addendum
     shall be deemed to have been accepted by the Buyer as a Hosting Contract
     and added to SCHEDULE 3(l) attached hereto as of the date hereof. In the
     event of a dispute regarding whether an asserted Omitted Hosting Contract
     may, or may not, be rejected, Hosting and the Buyer shall, in good faith,
     attempt to resolve the dispute within fifteen (15) days after Hosting's
     receipt of the Buyer Rejection Notice.

          (ii)    At any time and from time to time following the Closing Date
     if the Buyer discovers the existence of an Omitted Hosting Contract, the
     Buyer may, in its discretion, deliver to Hosting a demand that Hosting
     deliver a Contract Addendum listing such Omitted Hosting Contract (a
     "CONTRACT DEMAND"). Hosting shall have ten (10) days after its receipt of
     the Contract Demand to review the Contract Demand. To the extent the
     document identified in the Contract Demand is an Omitted Hosting Contract,
     Hosting shall, within the ten (10) day period described above, deliver a
     Contract Addendum listing such Omitted Hosting Contract (which the Buyer
     will be deemed to have accepted with respect to the relevant Omitted
     Hosting Contract). To the extent the document identified in the Contract
     Demand is not an Omitted Hosting Contract, Hosting may reject any such
     asserted Omitted Hosting Contract by delivering written notice (a "HOSTING
     REJECTION NOTICE") to the Buyer indicating its rejection of such asserted
     Omitted Hosting Contract and the reason for such rejection prior to the
     expiration of the ten (10) day period referred to above. If Hosting does
     not deliver a Hosting Rejection Notice within the ten (10) day period
     referred to above, the Omitted Hosting Contract described in the respective
     Contract Addendum shall be deemed to have been accepted Hosting and the
     Buyer as a Hosting Contract and added to SCHEDULE 3(l) Hosting Contract
     may, or may not, be rejected, Hosting and the Buyer shall, in good faith,
     attempt to resolve the dispute within fifteen (15) days after the Buyer's
     receipt of the Hosting Rejection Notice.

     (k)  POST-CLOSING CERTIFICATIONS AND DELIVERIES. Within ten (10) days of
the Closing Date, VitalStream shall deliver to Hosting a list identifying, as of
the Closing Date, each of the stockholders of record of the Company and the
number of shares of Common Stock held by such stockholders of record, together
with a certification executed by an officer of VitalStream certifying that,
except as set forth on such list, there were no shares of Common Stock issued or
outstanding on the Closing Date.

     (l)  ADDITIONAL SOFTWARE LICENSES. Hosting and Networks shall each use
their good faith reasonable efforts to transfer all right, title and interest,
if any, held by each of them in and to each of the software licenses set forth
on SCHEDULE 6(l) attached hereto. Notwithstanding the foregoing, VitalStream
hereby acknowledges that to the extent Hosting or Networks do not have any
right, title or interest in such software licenses, such software licenses shall
not be transferred to VitalStream pursuant to this SECTION 6(l).

     7.   CONDITIONS TO OBLIGATION TO CLOSE.

                                      -67-
<Page>

     (a)  CONDITIONS TO OBLIGATION OF EACH OF VITALSTREAM AND THE BUYER. The
obligation of each of VitalStream and the Buyer to consummate the transactions
to be performed by it in connection with the Closing shall be subject to the
fulfillment at or prior to the Closing of each of the following conditions, any
and all of which may be waived in whole or in part in writing by VitalStream and
the Buyer to the extent permitted by applicable Law:

          (i)     NETWORKS CONTRIBUTION AGREEMENT. The Networks Contribution
     Agreement shall have been executed and delivered by Networks and Hosting,
     and shall be in full force and effect and shall not have been amended or
     modified. The transactions contemplated by the Networks Contribution
     Agreement shall have been consummated prior to the Closing in accordance
     with the terms of the Networks Contribution Agreement.

          (ii)    CONVERTIBLE PROMISSORY NOTE AND WARRANT PURCHASE AGREEMENT.
     The Convertible Promissory Note and Warrant Purchase Agreement shall have
     been executed and delivered by each of the Purchasers (as that term is
     defined in the Convertible Promissory Note and Warrant Purchase Agreement).
     The Convertible Promissory Note and Warrant Purchase Agreement shall be in
     full force and effect as of the Closing Date and shall not have been
     amended or modified. The transactions contemplated by the Convertible
     Promissory Note and Warrant Purchase Agreement, including the wire transfer
     to VitalStream of all amounts payable at or in connection with the
     consummation of the transactions under the Convertible Promissory Note and
     Warrant Purchase Agreement, shall have been consummated in accordance with
     the terms of the Convertible Promissory Note and Warrant Purchase
     Agreement.

          (iii)   REPRESENTATIONS AND WARRANTIES; COVENANTS. The representations
     and warranties contained in SECTION (j) of this Agreement shall be true and
     correct in all material respects (except for any representations and
     warranties which are qualified by materiality, which shall be true and
     correct in all respects) at the Closing as though then made and as though
     the Closing Date was substituted for the date of this Agreement throughout
     such representations and warranties (except for any representation or
     warranty made as of a specific date, which shall be true and correct as of
     such date). Hosting and Networks shall have duly performed or complied
     with, in all material respects, all of the covenants, obligations and
     conditions to be performed or complied with under the terms of this
     Agreement and the other Transaction Agreements on, prior to, or at the
     Closing and shall be in compliance with, in all material respects, all of
     the covenants, obligations and conditions to be complied with under the
     terms of this Agreement at the Closing.

          (iv)    CONSENTS AND APPROVALS. Each of Hosting and Networks shall
     have made all filings and shall have obtained and delivered to VitalStream
     all governmental and/or third party permits, authorizations, consents and
     approvals required to be obtained by it to consummate the transactions
     contemplated by this Agreement and the other Transaction Agreements,
     including all of the consents to assignment of the Hosting Contracts
     identified on SCHEDULE 3(b).

          (v)     LITIGATION. No Claim shall be threatened or shall be pending
     in which it is sought to restrain or prohibit or to obtain damages or other
     relief in connection with the

                                      -68-
<Page>

     transactions contemplated by this Agreement or that would have, or
     reasonably be expected to have, a Hosting Material Adverse Effect, and no
     injunction, judgment, order, decree or ruling with respect thereto shall be
     in effect.

          (vi)    NO BANKRUPTCY. Neither Hosting nor Networks shall not have
     sought protection pursuant to any Bankruptcy Law. No Persons shall have
     initiated any Claim or proceedings under any Bankruptcy Law against Hosting
     or Networks.

          (vii)   NO HOSTING MATERIAL ADVERSE EFFECT. There shall not have
     occurred any Hosting Material Adverse Effect since the date of the Hosting
     Balance Sheet.

          (viii)  AUDITED FINANCIALS STATEMENTS. Hosting shall have caused to be
     prepared and delivered to VitalStream audited balance sheets and statements
     of income and cash flow of the Hosting Business of Hosting and Networks as
     of and for the twelve months ended December 31, 2001, and as of and for the
     nine months ended September 30, 2002, in a form sufficient to satisfy the
     requirements of Item 7(a) on a Current Report on Form 8-K with respect to a
     Current Report on Form 8-K to be filed by VitalStream reporting the
     transaction contemplated by this Agreement (the "HOSTING AUDITED FINANCIAL
     STATEMENTS"), together with the Hosting Audited Financial Statements
     Certificate.

          (ix)    ESCROW AGREEMENT. The Escrow Agreement shall have been
     executed and delivered by the Hosting and the Escrow Agent and shall be in
     full force and effect.

          (x)     MASTER ACCESS AGREEMENT. The Master Access Agreement shall
     have been executed and delivered by Netifice and shall be in full force and
     effect.

          (xi)    CUSTOMER MIGRATION AGREEMENT. The Customer Migration Agreement
     shall have been executed and delivered by Netifice and shall be in full
     force and effect.

          (xii)   COLOCATION AGREEMENT. The Colocation Agreement shall have been
     executed and delivered by Netifice and shall be in full force and effect.

          (xiii)  PARTIAL TERMINATION AND SECOND AMENDMENT TO SUBLEASE
     AGREEMENT. The Partial Termination and Second Amendment to Sublease
     Agreement relating to the Los Angeles Lease substantially in the form of
     EXHIBIT N attached hereto shall have been executed and delivered by Charter
     Holdings, Inc and Networks on or prior to the Closing Date and shall be in
     full force and effect.

          (xiv)   ASSIGNMENT AND ASSUMPTION AGREEMENT. The Assignment and
     Assumption Agreement shall have been executed and delivered by Hosting and
     shall be in full force and effect.

          (xv)    BILL OF SALE. The Bill of Sale shall have been executed and
     delivered by Hosting and shall be in full force and effect.

          (xvi)   CLOSING DOCUMENTS. Hosting and Networks shall have delivered
     to VitalStream all of the following documents:

                                      -69-
<Page>

                  (A)  an officer's certificate, dated as of the Closing Date,
          stating that the conditions specified in SECTION 7(a)(i) through
          SECTION 7(a)(vii) of this Agreement have been fully satisfied;

                  (B)  certified copies of the resolutions complying with the
          requirements of SECTION 3(b) duly adopted by the board of directors of
          Hosting (and by the shareholders of Hosting) authorizing the
          execution, delivery and performance of this Agreement, the other
          Transaction Agreements to which it is a party and each of the other
          agreements contemplated hereby or thereby to which it is a party and
          the consummation of all other transactions contemplated by this
          Agreement and the other Transaction Agreements to which it is a party;

                  (C)  certified copies of the certificate of incorporation and
          bylaws of each of Hosting and Networks as in effect at the Closing
          Date;

                  (D)  certificate of good standing of each of Hosting and
          Networks from the Secretary of State of the state of its respective
          incorporation dated within five (5) days of the Closing Date;

                  (E)  copies of all third party and governmental consents,
          approvals and filings required in connection with the consummation of
          the transactions contemplated by this Agreement and the other
          Transaction Agreements (including all blue sky Law filings); and

                  (F)  such other documents relating to the transactions
          contemplated by this Agreement or the other Transaction Agreements as
          VitalStream or its special counsel may reasonably request.

          (xvii)  PROCEEDINGS. All corporate and other proceedings taken or
     required to be taken by each of Hosting and Networks in connection with the
     transactions contemplated hereby and by the other Transaction Agreements to
     be consummated at or prior to the Closing and all documents incident
     thereto shall be reasonably satisfactory in form and substance to
     VitalStream and its special counsel.

          (xviii) TERMINATION OF CISCO SECURITY AGREEMENTS. Cisco shall have
     released the Acquired Assets from all Liens under the Cisco Security
     Agreements which relate to the Acquired Assets, and evidence of termination
     of all financing statements and other evidences of a Lien or other
     Indebtedness with respect to the Cisco Security Agreements affecting any of
     the Acquired Assets shall have been delivered to VitalStream.

     (b)  CONDITIONS TO OBLIGATION OF EACH OF HOSTING AND NETWORKS. The
obligation of each of Hosting and Networks to consummate the transactions to be
performed by it in connection with the Closing shall be subject to the
fulfillment at or prior to the Closing of each of the following conditions, any
and all of which may be waived in whole or in part in writing by Hosting and
Networks to the extent permitted by applicable Law:

          (i)     CONVERTIBLE PROMISSORY NOTE AND WARRANT PURCHASE AGREEMENT.
     The Convertible Promissory Note and Warrant Purchase Agreement shall have
     been executed

                                      -70-
<Page>

     and delivered by VitalStream. The Convertible Promissory Note and Warrant
     Purchase Agreement shall be in full force and effect as of the Closing Date
     and shall not have been amended or modified. The conditions in Section 2(B)
     of the Convertible Promissory Note and Warrant Purchase Agreement shall
     have been satisfied in full (without reliance on any waiver by the
     Purchasers (as that term is defined in the Convertible Promissory Note and
     Warrant Purchase Agreement)), and the transactions contemplated by the
     Convertible Promissory Note and Warrant Purchase Agreement shall have been
     consummated in accordance with the terms of the Convertible Promissory Note
     and Warrant Purchase Agreement.

          (ii)    REPRESENTATIONS AND WARRANTIES; COVENANTS. The representations
     and warranties contained in SECTION 4 of this Agreement shall be true and
     correct in all material respects (except for any representations and
     warranties which are qualified by materiality, which shall be true and
     correct in all respects) at the Closing as though then made and as though
     the Closing Date was substituted for the date of this Agreement throughout
     such representations and warranties (except for any representation or
     warranty made as of a specific date, which shall be true and correct as of
     such date). The Buying Parties shall have duly performed or complied with,
     in all material respects, all of the covenants, obligations and conditions
     to be performed or complied with under the terms of this Agreement and the
     other Transaction Agreements on, prior to, or at the Closing and shall be
     in compliance with, in all material respects, all of the covenants,
     obligations and conditions to be complied with under the terms of this
     Agreement at the Closing.

          (iii)   CONSENTS AND APPROVALS. Each of the Buying Parties shall have
     made all filings and shall have obtained and delivered to Hosting all
     governmental and/or third party permits, authorizations, consents and
     approvals required to be obtained it to consummate the transactions
     contemplated by this Agreement and the other Transaction Agreements.

          (iv)    LITIGATION. No Claim shall be threatened or shall be pending
     in which it is sought to restrain or prohibit or to obtain damages or other
     relief in connection with the transactions contemplated by this Agreement
     or that would have, or reasonably be expected to have, a VitalStream
     Material Adverse Effect, and no injunction, judgment, order, decree or
     ruling with respect thereto shall be in effect.

          (v)     NO BANKRUPTCY. No Buying Party nor any Subsidiary of
     VitalStream shall have sought protection pursuant to any Bankruptcy Law. No
     Persons shall have initiated any Claim or proceedings under any Bankruptcy
     Law against any Buying Party or any Subsidiary of VitalStream.

          (vi)    NO VITALSTREAM MATERIAL ADVERSE EFFECT. There shall not have
     occurred any VitalStream Material Adverse Effect since the date of the Most
     Recent VitalStream Balance Sheet.

          (vii)   SECURITIES LAW COMPLIANCE. The Buying Parties shall have made
     all filings under all applicable federal and state securities Laws
     necessary to consummate the

                                      -71-
<Page>

     issuance of the Purchase Shares pursuant to this Agreement in compliance
     with such Laws.

          (viii)  ESCROW AGREEMENT. The Escrow Agreement shall have been
     executed and delivered by VitalStream and the Escrow Agent and shall be in
     full force and effect.

          (ix)    MASTER ACCESS AGREEMENT. The Master Access Agreement shall
     have been executed and delivered by VitalStream and Netifice and shall be
     in full force and effect.

          (x)     CUSTOMER MIGRATION AGREEMENT. The Customer Migration Agreement
     shall have been executed and delivered by VitalStream and Netifice and
     shall be in full force and effect.

          (xi)    COLOCATION AGREEMENT. The Colocation Agreement shall have been
     executed and delivered by VitalStream and Netifice and shall be in full
     force and effect.

          (xii)   REGISTRATION AGREEMENT. The Registration Agreement shall have
     been executed and delivered by VitalStream, and shall be in full force and
     effect.

          (xiii)  INVESTOR RIGHTS AGREEMENT. The Investor Rights Agreement shall
     have been executed and delivered by VitalStream and the other signatories
     thereto (other than Hosting) and shall be in full force and effect.

          (xiv)   DELIVERY OF CASH CONSIDERATION. VitalStream shall have
     delivered or shall be ready to deliver at Closing to Hosting $250,000 by
     wire transfer of immediately available funds pursuant to SECTION 2(c) of
     this Agreement.

          (xv)    TERMINATION OF CISCO SECURITY AGREEMENTS. Each of the Cisco
     Security Agreements shall have been terminated by the parties thereto,
     Cisco shall have released the Acquired Assets from all Liens thereunder
     which relate to the Acquired Assets, and evidence of termination of all
     financing statements and other evidences of a Lien or other Indebtedness
     with respect to the Cisco Security Agreement affecting any of the Acquired
     Assets shall have been delivered to VitalStream.

          (xvi)   PARTIAL TERMINATION AND SECOND AMENDMENT TO SUBLEASE
     AGREEMENT. The Partial Termination and Second Amendment to Sublease
     Agreement relating to the Los Angeles Lease substantially in the form of
     EXHIBIT N attached hereto shall have been executed and delivered by Charter
     Holdings, Inc and Networks on or prior to the Closing Date and shall be in
     full force and effect.

          (xvii)  CLOSING DOCUMENTS. VitalStream shall have delivered to Hosting
     and Networks all of the following documents:

                  (A)  an officer's certificate, dated as of the Closing Date,
          stating that the conditions specified in SECTION 7(b)(i) through
          SECTION 7(b)(vii) of this Agreement have been fully satisfied;

                                      -72-
<Page>

                  (B)  certified copies of the resolutions duly adopted by each
          of VitalStream's and the Buyer's board of directors authorizing the
          execution, delivery and performance of this Agreement, the other
          Transaction Agreements to which it is a party and each of the other
          agreements contemplated hereby or thereby to which it is a party and
          the consummation of all other transactions contemplated by this
          Agreement and the other Transaction Agreements to which it is a party;

                  (C)  certified copies of the Certificate of Incorporation and
          the certificate of incorporation of the Buyer as in effect at the
          Closing Date;

                  (D)  certified copies of the bylaws of each of the Buying
          Parties as in effect at the Closing Date;

                  (E)  certificate of good standing of each of the Buying
          Parties from the Secretary of State of the state of its respective
          incorporation dated within five (5) days of the Closing Date;

                  (F)  copies of all third party and governmental consents,
          approvals and filings required in connection with the consummation of
          the transactions contemplated by this Agreement and the other
          Transaction Agreements (including all blue sky law filings); and

                  (G)  such other documents relating to the transactions
          contemplated by this Agreement or the other Transaction Agreements as
          Hosting, Networks or its special counsel may reasonably request.

          (xviii) PROCEEDINGS. All corporate and other proceedings taken or
     required to be taken by each of the Buying Parties in connection with the
     transactions contemplated hereby and by the other Transaction Agreements to
     be consummated at or prior to the Closing and all documents incident
     thereto shall be reasonably satisfactory in form and substance to Hosting,
     Networks and its special counsel.

     8.   SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION.

     (a)  SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

          (i)     The representations and warranties of Hosting and Networks set
     forth in this Agreement shall survive the Closing (A) with respect to the
     matters covered by the representations and warranties contained in SECTION
     3(z), until sixty (60) days after the expiration of all applicable statute
     of limitations (including all periods of extension, whether automatic or
     permissive), (B) in the case of all other representations and warranties
     and any covenant or agreement contained in this Agreement to be performed
     on or prior to the Closing Date, until the date which is eight (8) months
     after the Closing Date and (C) with respect to each other covenant and
     agreement contained in this Agreement (including the Hosting Audited
     Financial Statements Certificate), until one hundred and eighty (180) days
     after the last date on which such covenant or agreement is

                                      -73-
<Page>

     to be performed or, if no such date is specified, indefinitely, in each
     case regardless of any investigation by VitalStream or on behalf of
     VitalStream.

          (ii)    The representations and warranties of VitalStream set forth in
     this Agreement shall survive the Closing (A) with respect to the matters
     covered by the representations and warranties contained in SECTION 4(x) and
     SECTION 4(y) of this Agreement, until sixty (60) days after the expiration
     of all applicable statute of limitations (including all periods of
     extension, whether automatic or permissive), (B) in the case of all other
     representations and warranties and any covenant or agreement contained in
     this Agreement to be performed on or prior to the Closing Date, until the
     date which is eight (8) months after the Closing Date and (C) with respect
     to each other covenant and agreement contained in this Agreement, until one
     hundred and eighty (180) days after the last date on which such covenant or
     agreement is to be performed or, if no such date is specified,
     indefinitely, in each case regardless of any investigation by Hosting or
     Networks or on behalf of Hosting or Networks.

     (b)  INDEMNIFICATION OF VITALSTREAM.

          (i)     Subject to the limitations set forth in this SECTION 8,
     Hosting and Networks, jointly and severally, agree to indemnify on an
     after-tax basis and defend, protect and hold harmless VitalStream and its
     Affiliates and each of their respective directors, officers, employees,
     stockholders, members, partners, agents (including, those retained in
     connection with the transactions contemplated by this Agreement),
     successors and assigns (collectively, the "VITALSTREAM INDEMNITEES") from
     and against any and all Claims, costs, damages, deficiencies, expenses
     (including interest, court costs, fees of attorneys, accountants and other
     experts or other expenses of litigation or other proceedings or of any
     Claim, default or assessment), fees, fines, Liabilities, losses and
     penalties (hereinafter individually, a "Loss" and collectively, "LOSSES")
     which, directly or indirectly, arise out of, result from or relate to
     (irrespective of whether any such VitalStream Indemnitee is a party to the
     action for which indemnification hereunder is sought):

                  (A)  any facts or circumstances which constitute a
          misrepresentation or breach by Hosting or Networks of any
          representation or warranty set forth in this Agreement (including any
          annex or schedule attached hereto), any other Transaction Agreement or
          in any instrument or document delivered by Hosting or Networks
          pursuant to this Agreement;

                  (B)  any non-fulfillment or breach of any covenant or
          agreement of Hosting or Networks set forth in this Agreement; or

                  (C)  any Excluded Hosting Liability.

          (ii)    To the extent that the foregoing undertakings by Hosting and
     Networks may be unenforceable for any reason, Hosting and Networks shall
     make the maximum contribution to the payment and satisfaction of the Losses
     described above incurred by any VitalStream Indemnitee which is permissible
     under applicable Law.

                                      -74-
<Page>

     (c)  INDEMNIFICATION OF THE HOLDERS OF THE PURCHASE SHARES.

          (i)     Subject to the limitations set forth in this SECTION 8,
     VitalStream agrees to indemnify on an after-tax basis and defend, protect
     and hold harmless the holders of the Purchase Shares (provided that such
     holder is Holdings, a wholly-owned Subsidiary of Holdings or an Affiliate
     of Dolphin) and each of their Affiliates and each of their respective
     directors, officers, employees, stockholders, members, partners, agents
     (including those retained in connection with the transactions contemplated
     by this Agreement), successors and assigns (collectively, the "PURCHASE
     SHARE INDEMNITEES") from and against any and all Losses which, directly or
     indirectly, arise out of, result from or relate to (irrespective of whether
     any such Purchase Share Indemnitee is a party to the action for which
     indemnification hereunder is sought):

                  (A)  any facts or circumstances which constitute a
          misrepresentation or breach by VitalStream of any representation or
          warranty set forth in this Agreement (including any annex or schedule
          attached hereto), any other Transaction Agreement or in any instrument
          or document delivered by VitalStream pursuant to this Agreement;

                  (B)  any non-fulfillment or breach of any covenant or
          agreement of VitalStream set forth in this Agreement; or

                  (C)  any Assumed Liability.

          (ii)    To the extent that the foregoing undertakings by VitalStream
     may be unenforceable for any reason, VitalStream shall make the maximum
     contribution to the payment and satisfaction of the Losses described above
     incurred by any Purchase Share Indemnitee which is permissible under
     applicable Law.

     (d)  METHOD OF ASSERTING CLAIMS INVOLVING THIRD-PARTY CLAIMS.

          (i)     The following procedures shall be applicable with respect to
     indemnification for third-party Claims. Promptly after receipt by the Party
     seeking indemnification under this SECTION 8 (hereinafter referred to as
     the "INDEMNITEE") of notice of the commencement of any (A) Tax audit or
     proceeding for the assessment of Tax by any Taxing Authority or any other
     proceeding likely to result in the imposition of a Tax Liability or (B) any
     action or the assertion of any Claim or Liability by a third party (whether
     by legal process or otherwise), against which Claim or Liability another
     Party (hereinafter the "INDEMNITOR") is, or may be, required under this
     Agreement to indemnify such Indemnitee, the Indemnitee shall, if a Claim
     thereon is to be, or may be, made against the Indemnitor, notify the
     Indemnitor in writing of the commencement or assertion thereof and give the
     Indemnitor a copy of such Claim, process and all legal pleadings. The
     Indemnitor shall have the right to (1) participate in the defense of such
     action with counsel of reputable standing and (2) assume the defense of
     such action by agreeing to assume such defense within ten (10) calendar
     days of transmittal of the notice of the Claim by the Indemnitee, in
     writing unless such Claim (a) may result in criminal proceedings,
     injunctions or other equitable remedies in respect of the Indemnitee or its

                                      -75-
<Page>

     business; (b) may result in Liabilities which, taken with other then
     existing Claims under this SECTION 8, would not be fully indemnified
     hereunder; (c) may have a material and adverse effect on the business or
     condition (financial or otherwise) of the Indemnitee after the Closing Date
     (including an effect on the Tax Liabilities, earnings or ongoing business
     relationships of the Indemnitee); (d) is for an alleged amount of less than
     $5,000; (e) upon petition by the Indemnitee, if an appropriate court rules
     that the Indemnitor failed or is failing to vigorously prosecute or defend
     such Claim, in which events the Indemnitee shall assume the defense; or (f)
     also involves the Indemnitor or its Affiliate as a party and counsel to the
     Indemnitee determines in good faith that joint representation would give
     rise to a conflict of interest.

          (ii)    The Indemnitor and the Indemnitee shall cooperate in the
     defense of any third-party Claims. In the event that the Indemnitor assumes
     or participates in the defense of such third-party Claim as provided
     herein, the Indemnitee shall make available to the Indemnitor all relevant
     records and take such other action and sign such documents as are
     reasonable necessary to defend such third-party Claim in a timely manner.
     If the Indemnitee shall be required by judgment or a settlement agreement
     to pay any amount in respect of any Liability against which the Indemnitor
     has agreed to indemnify the Indemnitee under this Agreement, the Indemnitor
     shall promptly reimburse the Indemnitee in an amount equal to the Losses
     incurred by such Indemnitee in connection with such Liability subject to
     this SECTION 8. No Indemnitor, in the defense of any such Claim, shall,
     except with the consent of the Indemnitee, consent to entry of any judgment
     or enter into any settlement which does not include as an unconditional
     term thereof the giving by the claimant or plaintiff to such Indemnitee of
     a release from all Liability with respect to such Claim. In addition, with
     respect to a Claim for Taxes, the Indemnitor shall not enter into any
     settlement or arrangement with any Taxing Authority without the prior
     written consent of the Indemnitee, such consent not to be unreasonably
     withheld or delayed. In the event that the Indemnitor does not accept the
     defense of any matter for which it is entitled to assume as provided above,
     the Indemnitee shall have the full right to defend such Claim.

          (iii)   Prior to paying or settling any Claim against which an
     Indemnitor is, or may be, obligated under this Agreement to indemnify an
     Indemnitee, the Indemnitee must first supply the Indemnitor with a copy of
     a final court judgment or decree holding the Indemnitee liable on such
     Claim or failing such judgment or decree, must first receive the written
     approval of the terms and conditions of such settlement from the
     Indemnitor, which shall not be unreasonably withheld; provided however,
     that no written approval is required from the Indemnitor as to any third
     party Claim (A) that results solely in injunctions or other equitable
     remedies in respect of the Indemnitee or its business; (B) that settles
     Liabilities, or portions thereof, that are not subject to indemnification
     hereunder; or (C) is for an amount of less than $5,000.

          (iv)    An Indemnitee shall have the right to employ its own counsel
     in any case and the fees and expenses of such counsel shall be at the
     expense of the Indemnitee unless (A) the employment of such counsel shall
     have been authorized in writing by the Indemnitor in connection with the
     defense of such Claim; (B) the Indemnitor shall not have employed counsel
     in the defense of such Claim after ten (10) calendar days notice;

                                      -76-
<Page>

     or (C) such Indemnitee shall have reasonably concluded that there may be
     defenses available to it which are contrary to, or inconsistent with, those
     available to the Indemnitor; in any of the foregoing events such fees and
     expenses shall be borne by the Indemnitor.

     (e)  METHOD OF ASSERTING CLAIMS NOT INVOLVING THIRD-PARTY CLAIMS. In the
event any Indemnitee shall have a Claim against any Indemnitor under this
Agreement which does not involve a Claim being asserted against or sought to be
collected from such Indemnitee by a third party, the Indemnitee shall notify the
Indemnitor in writing of such Claim.

     (f)  LIMITATIONS.

          (i)     In the absence of fraud, (A) neither Hosting nor Networks
     shall have any Liability, nor be subject to any Claim, under SECTION
     8(b)(i)(A) of this Agreement in respect of any misrepresentation or breach
     by Hosting or Networks of any representation or warranty set forth in this
     Agreement (1) with respect to any individual Liability or Claim, unless
     such Liability or Claim involves Losses in excess of $5,000 or (2) the
     amount of indemnifiable Losses, in the aggregate, exceeds $75,000, and then
     shall be liable only to the extent of such excess and (B) the aggregate
     obligation of Networks and Hosting to indemnify, defend and hold the
     VitalStream Indemnitees harmless hereunder shall be limited to $800,000. In
     the event a VitalStream Indemnitee seeks indemnification for Losses
     pursuant to this SECTION 8, such VitalStream Indemnitee's sole recourse
     shall be against the Escrow Shares, (as defined in the Escrow Agreement).
     Any recourse against the Escrow Shares shall be made based upon the Fair
     Market Value of the Escrow Shares as determined on the day immediately
     prior to the date on which a Claims Notice (as defined in the Escrow
     Agreement) is sent by VitalStream.

          (ii)    In the absence of fraud, (A) VitalStream shall have no
     Liability, nor be subject to any Claim, under SECTION 8(c)(i)(A) of this
     Agreement in respect of any misrepresentation or breach by VitalStream of
     any representation or warranty set forth in this Agreement (1) with respect
     to any individual Liability or Claim, unless such Liability or Claim
     involves Losses in excess of $5,000 or (2) the amount of indemnifiable
     Losses, in the aggregate, exceeds $75,000, and then shall be liable only to
     the extent of such excess and (B) the aggregate obligation of VitalStream
     to indemnify, defend and hold Purchase Share Indemnitees harmless hereunder
     shall be limited to $800,000. In the event a Purchase Share Indemnitee
     seeks indemnification for Losses pursuant to this SECTION 8, such Purchase
     Share Indemnitee's sole remedy shall be the issuance by VitalStream of
     additional shares of Common Stock to such Purchase Share Indemnitee with an
     aggregate Fair Market Value (as determined on the day immediately prior to
     the date on which a Purchase Share Indemnitee sends a notice of an
     indemnifiable Loss to VitalStream under this SECTION 8) equal to such
     indemnifiable Losses; provided, however, the aggregate number of shares of
     Common Stock VitalStream shall be required to issue pursuant to this
     SECTION 8 shall not exceed a number of shares of Common Stock equal to the
     number of Escrow Shares.

     (g)  EXCLUSIVE REMEDIES. Subject to SECTION 10(m), the remedies set forth
in this SECTION 8 shall be the exclusive remedies of the Parties with respect to
this Agreement and the

                                      -77-
<Page>

transactions contemplated hereby. The Parties hereby waive, with respect to each
other, to the fullest extent permitted by Law, any and all other rights and
remedies.

     9.   TERMINATION.

     (a)  TERMINATION OF AGREEMENT. The Parties may terminate this Agreement as
provided below:

          (i)     The Parties may terminate this Agreement by mutual written
     consent at any time prior to the Closing;

          (ii)    VitalStream may terminate this Agreement by giving written
     notice to Hosting at any time prior to the Closing (A) in the event Hosting
     or Networks has breached any material representation, warranty, or covenant
     contained in this Agreement in any material respect, VitalStream has
     notified Hosting and Networks of the breach in writing, and the breach has
     continued without cure for a period of thirty (30) days after delivery of
     the written notice of breach or (B) if the Closing shall not have occurred
     on or before December 15, 2002, by reason of the failure of any condition
     precedent under SECTION 7(a) of this Agreement (unless the failure results
     primarily from VitalStream or the Buyer themselves breaching any
     representation, warranty, or covenant contained in this Agreement);

          (iii)   Hosting and Networks may terminate this Agreement by giving
     written notice to VitalStream at any time prior to the Closing (A) in the
     event VitalStream or the Buyer have breached any material representation,
     warranty, or covenant contained in this Agreement in any material respect,
     Hosting and Networks have notified VitalStream of the breach in writing,
     and the breach has continued without cure for a period of thirty (30) days
     after delivery of the written notice of breach or (B) if the Closing shall
     not have occurred on or before December 15, 2002, by reason of the failure
     of any condition precedent under SECTION 7(b) of this Agreement (unless the
     failure results primarily from Hosting or Networks breaching any
     representation, warranty, or covenant contained in this Agreement); and

          (iv)    Any Party may terminate this Agreement by giving written
     notice to the non-terminating Parties at any time prior to the Closing if
     the Closing shall not have occurred on or before December 31, 2002.

     (b)  EFFECT OF TERMINATION. If any Party terminates this Agreement pursuant
to SECTION 9(a) of this Agreement, all rights and obligations of the Parties
hereunder shall terminate without any Liability of any Party to the other Party
(except for any Liability of any Party then in breach).

     10.  MISCELLANEOUS.

     (a)  EXPENSES. Each Party shall pay the fees and expenses incurred by such
Party in consummation of the transactions contemplated by this Agreement and the
other Transaction Agreements. Notwithstanding the foregoing, in the event
Hosting or Networks terminates this Agreement pursuant to SECTION 9(a)(iii) of
this Agreement, VitalStream shall pay to Hosting

                                      -78-
<Page>

within five (5) business days of the date of the termination of this Agreement
the Audited Financial Statements Preparation Fee and indemnify, defend, protect
and hold harmless Networks and Hosting for the same.

     (b)  PRESS RELEASES AND PUBLIC ANNOUNCEMENTS. No Party shall issue any
press release or make any public announcement or in any document or material
filed with any Governmental Entity relating to the subject matter of this
Agreement or containing the name of any other Party without the prior written
approval of each of the other Parties, unless such Party has a good faith belief
that such disclosure is required by applicable Law or governmental regulations
or by order of a court of competent jurisdiction, in which case prior to making
such disclosure the disclosing Party shall give written notice to the each of
the other Parties describing in reasonable detail the proposed content of such
disclosure and shall permit the non-disclosing Party to review and comment upon
the form and substance of such disclosure.

     (c)  NO THIRD-PARTY BENEFICIARIES. Except as expressly provided herein,
this Agreement shall not confer any rights or remedies upon any Person other
than the Parties and their respective successors and permitted assigns.

     (d)  ENTIRE AGREEMENT. This Agreement, the Transaction Agreements and the
documents referred to herein and therein contain the entire agreement between
the Parties and supersede any prior understandings, agreements or
representations by or between the Parties, written or oral, which may have
related to the subject matter hereof in any way.

     (e)  SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure
to the benefit of the Parties and their respective successors and permitted
assigns. No Party may assign this Agreement or any of its rights, interests, or
obligations hereunder without the prior written approval of each of the other
Parties. Notwithstanding the foregoing and whether or not any express assignment
has been made, the provisions of this Agreement or any other Transaction
Agreement which are for Hosting's benefit as a holder of Purchase Shares are
also for the benefit of, and enforceable by, any subsequent holder of such
Purchase Shares so long as such Person is an Affiliate of Dolphin.

     (f)  COUNTERPARTS. This Agreement or any other Transaction Agreement may be
executed simultaneously in two or more counterparts, any one of which need not
contain the signatures of more than one party, but all such counterparts taken
together shall constitute one and the same agreement. A facsimile copy of this
Agreement or any counterpart thereto shall be valid as an original.

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

     (h)  NOTICES; BUSINESS DAYS. All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
or any other Transaction Agreement shall be in writing and shall be deemed to
have been given when

                                      -79-
<Page>

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 the addresses
indicated below:

                  If to VitalStream:

                  One Jenner, Suite 100
                  Irvine, California 92618
                  Facsimile: 949-453-8686
                  Attention: Philip N. Kaplan, Chief Operating Officer

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

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

                  If to Hosting:

                  Epoch Hosting, Inc.
                  555 Anton Boulevard
                  Costa Mesa, CA 92626
                  Facsimile: 714-327-2031
                  Attention: General Counsel

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

                  Kirkland & Ellis
                  Citigroup Center
                  153 East 53rd Street
                  New York, NY  10022
                  Facsimile: 212-446-4900
                  Attention: John Kuehn, 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. If 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 California or the State of New York (any other day being a "business

                                      -80-
<Page>

day"), such time period shall automatically be extended to, the next business
day immediately following such Saturday, Sunday or legal holiday.

     (i)  AMENDMENTS AND WAIVERS. No amendment of any provision of this
Agreement shall be valid unless the same shall be in writing and signed by each
Party. No waiver by any Party of any default, misrepresentation, or breach of
warranty or covenant hereunder, whether intentional or not, shall be deemed to
extend to any prior or subsequent default, misrepresentation, or breach of
warranty or covenant hereunder or affect in any way any rights arising by virtue
of any prior or subsequent such occurrence.

     (j)  SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable Law, but if any provision of this Agreement or any other Transaction
Agreement is held to be prohibited by or invalid under applicable Law, such
provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of this Agreement or such other
Agreement.

     (k)  CONSTRUCTION. The Parties have participated jointly in the negotiation
and drafting of this Agreement and the other Transaction Agreements. In the
event an ambiguity or question of intent or interpretation arises, this
Agreement and the other Transaction Agreements shall be construed as if drafted
jointly by the Parties, and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement or any other Transaction Agreement. Any reference
to any federal, state, local, or foreign Law shall be deemed also to refer to
all rules and regulations promulgated thereunder, unless the context requires
otherwise. Nothing in the schedules attached hereto shall be deemed adequate to
disclose an exception to a representation or warranty made herein unless the
schedule attached hereto identifies the exception with particularity and
describes the relevant facts in detail. Without limiting the generality of the
foregoing, the mere listing (or inclusion of a copy) of a document or other item
shall not be deemed adequate to disclose an exception to a representation or
warranty made herein (unless the representation or warranty has to do with the
existence of the document or other item itself). The Parties intend that each
representation, warranty, and covenant contained herein shall have independent
significance. If any Party has breached any representation, warranty, or
covenant contained herein in any respect, the fact that there exists another
representation, warranty, or covenant relating to the same subject matter
(regardless of the relative levels of specificity) which the Party has not
breached shall not detract from or mitigate the fact that the Party is in breach
of the first representation, warranty, or covenant.

     (l)  INCORPORATION OF ANNEXES, SCHEDULES AND EXHIBITS. The annexes,
schedules and exhibits identified in this Agreement are incorporated herein by
reference and made a part hereof.

     (m)  SPECIFIC PERFORMANCE. Each of the Parties acknowledges and agrees that
the other Parties would be damaged irreparably in the event any of the
provisions of this Agreement are not performed in accordance with their specific
terms or otherwise are breached. Accordingly, each of the Parties agrees that,
notwithstanding any provision limiting the remedies of the Parties contained
herein, the other Parties shall be entitled to an injunction or injunctions to
prevent breaches of the provisions of this Agreement and to enforce specifically
this Agreement and the

                                      -81-
<Page>

terms and provisions hereof in any action instituted in any court of the United
States or any state thereof having jurisdiction over the Parties and the matter
(subject to the provisions set forth in SECTION 10(o) of this Agreement), in
addition to any other remedy to which it may be entitled, at law or in equity.

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

     (o)  JURISDICTION AND VENUE. ALL JUDICIAL PROCEEDINGS BROUGHT BY
VITALSTREAM OR THE BUYER AGAINST NETWORKS OR HOSTING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER TRANSACTION AGREEMENT MAY BE BROUGHT IN ANY STATE OR
FEDERAL COURT OF COMPETENT JURISDICTION IN NEW YORK CITY, NEW YORK. ALL JUDICIAL
PROCEEDINGS BROUGHT BY NETWORKS OR HOSTING AGAINST VITALSTREAM OR THE BUYER WITH
RESPECT TO THIS AGREEMENT OR ANY OTHER TRANSACTION AGREEMENT MAY BE BROUGHT IN
ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN ORANGE COUNTY,
CALIFORNIA. BY EXECUTING AND DELIVERING THIS AGREEMENT AND THE OTHER TRANSACTION
AGREEMENTS TO WHICH THEY ARE A PARTY, EACH PARTY 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 AGREEMENT OR ANY OF THE OTHER
TRANSACTION AGREEMENTS. EACH PARTY HEREBY WAIVES ANY CLAIM THAT ORANGE COUNTY,
CALIFORNIA OR NEW YORK CITY, NEW YORK IS AN INCONVENIENT FORUM OR AN IMPROPER
FORUM BASED ON LACK OF VENUE.

     (p)  WAIVER OF RIGHT TO JURY TRIAL. EACH PARTY 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 Agreement or any of the
other Transaction Agreements or the validity, protection, interpretation,
collection or enforcement hereof or thereof. EACH PARTY AGREES THAT THIS SECTION
10(p) IS A

                                      -82-
<Page>

SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND EACH OF THE OTHER TRANSACTION
AGREEMENTS AND ACKNOWLEDGES THAT THE OTHER PARTIES WOULD NOT HAVE ENTERED INTO
THIS AGREEMENT AND CONSUMMATED THE TRANSACTIONS CONTEMPLATED HEREBY IF THIS
SECTION 10(p) WERE NOT PART OF THIS AGREEMENT AND THE OTHER TRANSACTION
AGREEMENTS.

                                    * * * * *

                                      -83-
<Page>

     IN WITNESS WHEREOF, the Parties have executed this Asset Purchase Agreement
as of the date first above written.

                           VITALSTREAM HOLDINGS, INC.

                           By:   /s/ Paul Summers
                               ---------------------------------------------
                               Name: Paul Summers
                               Title: President and Chief Executive Officer

                           VITALSTREAM BROADCASTING CORPORATION

                           By:   /s/ Paul Summers
                               ---------------------------------------------
                               Name: Paul Summers
                               Title: President and Chief Executive Officer

                           EPOCH HOSTING, INC.

                           By:   /s/ Karen M. Muller
                               ---------------------------------------------
                               Name: Karen M. Muller
                               Title: Vice President and Secretary

                           EPOCH NETWORKS, INC.

                           By:   /s/ Karen M. Muller
                               ---------------------------------------------
                               Name: Karen M. Muller
                               Title: Vice President and Secretary

<Page>

                                     ANNEX 1

                           ELIGIBLE NETWORKS EMPLOYEES

NAME OF EMPLOYEE                         DOLLAR VALUE OF ACCRUED PAID TIME OFF

<Page>

                                  SCHEDULE 1(b)

                             EXCLUDED HOSTING ASSETS

<Page>

                                  SCHEDULE 1(c)

                           HOSTING BUSINESS CUSTOMERS

<Page>

                                  SCHEDULE 1(d)

                          HOSTING PERMITS AND LICENSES

<Page>

                                  SCHEDULE 1(e)

                     HOSTING RECORDS AND MISCELLANEOUS ITEMS

<Page>

                                  SCHEDULE 1(f)

                       HOSTING TANGIBLE PERSONAL PROPERTY

<Page>

                                  SCHEDULE 1(g)

                       HOSTING CUSTOMER SECURITY DEPOSITS

<Page>

                                  SCHEDULE 3(s)

                     EMPLOYEE BENEFITS RELATING TO NETWORKS

<Page>

                                 SCHEDULE 3(aa)

                             CUSTOMERS AND SUPPLIERS

<Page>

                                  SCHEDULE 4(a)

                   ORGANIZATION, CORPORATE POWER AND LICENSES

<Page>

                                  SCHEDULE 4(e)

                          NOTES AND ACCOUNTS RECEIVABLE

<Page>

                                  SCHEDULE 1(b)

                          EXECUTED HOSTING LIABILITIES

<Page>

                                  SCHEDULE 3(b)

                              APPROVAL AND CONSENTS

<Page>

                                  SCHEDULE 3(f)

                                   GUARANTIES

<Page>

                                  SCHEDULE 3(g)

                      TITLE TO ASSETS; CONDITION OF ASSETS

<Page>

                                  SCHEDULE 3(i)

                         ABSENCE OF CERTAIN DEVELOPMENTS

<Page>

                                  SCHEDULE 3(j)

                              COMPLIANCE WITH LAWS

<Page>

                                  SCHEDULE 3(k)

                                   LITIGATION

<Page>

                                  SCHEDULE 3(l)

                            CONTRACTS AND COMMITMENTS

                                  SCHEDULE 3(m)

                                   TAX MATTERS

<Page>

                                SCHEDULE 3(n)(ii)

                          HOSTING LEASED REAL PROPERTY

<Page>

                               SCHEDULE 3(p)(iii)

        INTELLECTUAL PROPERTY RIGHTS - PATENTS, TRADEMARKS AND COPYRIGHTS

<Page>

                                SCHEDULE 3(p)(iv)

                  INTELLECTUAL PROPERTY RIGHTS - THIRD PARTIES

<Page>

                                  SCHEDULE 3(q)

                                    EMPLOYEES

<Page>

                                  SCHEDULE 3(r)

                                EMPLOYEE BENEFITS

<Page>

                                  SCHEDULE 3(u)

                              AFFILIATE TRANSACTION

<Page>

                                  SCHEDULE 4(b)

                              APPROVAL AND CONSENTS

<Page>

                                  SCHEDULE 4(c)

                                  SUBSIDIARIES

<Page>

                                  SCHEDULE 4(d)

 SECURITIES AND EXCHANGE COMMISSION REPORTS AND VITALSTREAM FINANCIAL STATEMENTS

<Page>

                                  SCHEDULE 4(f)

                                   GUARANTIES

<Page>

                                  SCHEDULE 4(g)

                      TITLE TO ASSETS; CONDITION OF ASSETS

<Page>

                                  SCHEDULE 4(i)

                         ABSENCE OF CERTAIN DEVELOPMENTS

<Page>

                                  SCHEDULE 4(j)

                              COMPLIANCE WITH LAWS

<Page>

                                  SCHEDULE 4(k)

                                   LITIGATION

<Page>

                                  SCHEDULE 4(l)

                            CONTRACTS AND COMMITMENTS

                                SCHEDULE 4(l)(ii)

                            CONTRACTS AND COMMITMENTS

<Page>

                                  SCHEDULE 4(m)

                                   TAX MATTERS

<Page>

                                SCHEDULE 4(n)(ii)

                        VITALSTREAM LEASED REAL PROPERTY

<Page>

                               SCHEDULE 4(p)(iii)

        INTELLECTUAL PROPERTY RIGHTS - PATENTS, TRADEMARKS AND COPYRIGHTS

<Page>

                                SCHEDULE 4(p)(iv)

                  INTELLECTUAL PROPERTY RIGHTS - THIRD PARTIES

<Page>

                                  SCHEDULE 4(q)

                                    EMPLOYEES

<Page>

                                  SCHEDULE 4(r)

                                EMPLOYEE BENEFITS

<Page>

                                  SCHEDULE 4(t)

                              AFFILIATE TRANSACTION

<Page>

                                SCHEDULE 4(x)(i)

                       CAPITAL STOCK AND RELATED MATTERS.

<Page>

                                  SCHEDULE 4(z)

                             CUSTOMERS AND SUPPLIERS

<Page>

                                  SCHEDULE 6(l)

                          ADDITIONAL SOFTWARE LICENSES

<Page>

                                    EXHIBIT A

                          FORM OF COLOCATION AGREEMENT

<Page>

                                    EXHIBIT B

                            FORM OF ESCROW AGREEMENT

<Page>

                                    EXHIBIT C

                            INVESTOR RIGHTS AGREEMENT

<Page>

                                    EXHIBIT D

                         FORM OF MASTER ACCESS AGREEMENT

<Page>

                                    EXHIBIT E

                     FORM OF NETWORKS CONTRIBUTION AGREEMENT

<Page>

                                    EXHIBIT F

                      FORM OF OPINION OF HOSTING'S COUNSEL

<Page>

                                    EXHIBIT G

                    FORM OF OPINION OF VITALSTREAM'S COUNSEL

<Page>

                                    EXHIBIT H

                         FORM OF REGISTRATION AGREEMENT

<Page>

                                    EXHIBIT I

                      FORM OF CUSTOMER MIGRATION AGREEMENT

<Page>

                                    EXHIBIT J

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

<Page>

                                    EXHIBIT K

                              FORM OF BILL OF SALE

<Page>

                                    EXHIBIT L

       FORM OF HOSTING AUDITED FINANCIAL STATEMENTS OFFICER'S CERTIFICATE

<Page>

                                   EXHIBIT M

                      FORM OF HOSTING FINANCIAL STATEMENTS

<Page>

                                    EXHIBIT N

     FORM OF PARTIAL TERMINATION AND SECOND AMENDMENT TO SUBLEASE AGREEMENT<Page>

                                                                    EXHIBIT 10.2

                          CONVERTIBLE NOTE AND WARRANT
                               PURCHASE AGREEMENT

                          DATED AS OF NOVEMBER 1, 2002

                                      AMONG

                           VITALSTREAM HOLDINGS, INC.

                                       AND

                        THE PURCHASERS REFERRED TO HEREIN

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                Page
<S>               <C>                                                                             <C>
SECTION 1.        DEFINITIONS......................................................................1
         1A.      Definitions......................................................................1

SECTION 2.        AUTHORIZATION AND CLOSINGS......................................................11
         2A.      Authorization, Purchase and Sale of the Initial Convertible Notes and
                  Warrants........................................................................12
         2B.      Authorization, Purchase and Sale of the Subsequent Convertible Notes............12
         2C.      The Closings....................................................................13

SECTION 3.        CONDITIONS OF EACH PURCHASER'S OBLIGATIONS AT THE CLOSINGS......................14
         3A.      Conditions of each Purchaser's Obligations at Each Closing......................14
         3B.      Additional Conditions of each Purchaser's Obligations at the Initial
                  Closing.........................................................................16
         3C.      Additional Conditions of each Purchaser's Obligations at the Subsequent
                  Closing if the Initial Closing has not been Consummated.........................16
         3D.      Additional Conditions of each Purchaser's Obligations at the Subsequent
                  Closing if the Initial Closing has been Consummated.............................17

SECTION 4.        CONDITIONS OF VITALSTREAM'S OBLIGATIONS AT THE CLOSINGS.........................17
         4A.      Conditions of VitalStream's Obligations at each Closing.........................17
         4B.      Additional Conditions of VitalStream's Obligations at the Subsequent
                  Closing if the Initial Closing has not been Consummated.........................18
         4C.      Additional Conditions of VitalStream's Obligations at the Subsequent
                  Closing if the Initial Closing has been Consummated.............................19

SECTION 5.        COVENANTS.......................................................................19
         5A.      Reservation of Common Stock and Series A Preferred..............................19
         5B.      Intellectual Property Rights....................................................19
         5C.      Restrictive Covenants...........................................................20
         5D.      Compliance with Agreements......................................................26
         5E.      Current Public Information......................................................26
         5F.      Information Rights..............................................................26
         5G.      Public Disclosures..............................................................26
         5H.      Post-Closing Certifications and Deliveries......................................27

SECTION 6.        NATURE OF RESTRICTED SECURITIES; TRANSFER OF RESTRICTED SECURITIES;
                  GENERAL TRANSFER PROCEDURE......................................................27
         6A.      General Provisions..............................................................27
         6B.      Opinion Delivery................................................................27
         6C.      Rule 144A.......................................................................28
         6D.      Legend Removal..................................................................28

SECTION 7.        REPRESENTATIONS AND WARRANTIES OF VITALSTREAM...................................28
</Table>

                                        i
<Page>

<Table>
<S>               <C>                                                                             <C>
         7A.      Approval and Consents; Authorization; No Breach.................................28
         7B.      Capital Stock and Related Matters...............................................29
         7C.      Issuance and Commitment of the Convertible Notes and Warrants...................30
         7D.      Investment Company..............................................................30
         7E.      Margin Securities...............................................................31
         7F.      Representations and Warranties of VitalStream in the Asset Purchase
                  Agreement.......................................................................31

SECTION 8.        TERMINATION.....................................................................31
         8A.      Termination of Agreement........................................................31
         8B.      Effect of Termination...........................................................31

SECTION 9.        MISCELLANEOUS...................................................................31
         9A.      Commitment Fee; Expenses........................................................31
         9B.      Remedies; Survival of Representations, Warranties and Covenants;
                  Indemnification.................................................................32
         9C.      Purchaser's Representations; Legends............................................33
         9D.      Entire Agreement................................................................35
         9E.      Successors and Assigns..........................................................35
         9F.      Counterparts....................................................................36
         9G.      Descriptive Headings; Interpretation............................................36
         9H.      Notices; Business Days..........................................................36
         9I.      Consent to Amendments and Waivers...............................................37
         9J.      Severability....................................................................37
         9K.      No Strict Construction..........................................................37
         9L.      Incorporation of Annexes, Schedules and Exhibits................................38
         9M.      Registered Holders; Ownership...................................................38
         9N.      Consideration for Warrants and Notes............................................38
         9O.      Understanding Among the Purchasers..............................................38
         9P.      GOVERNING LAW...................................................................38
         9Q.      JURISDICTION AND VENUE..........................................................39
         9R.      WAIVER OF RIGHT TO JURY TRIAL...................................................39
</Table>

                                       ii
<Page>

                         ANNEXES, SCHEDULES AND EXHIBITS

                                     ANNEXES

Annex 1      --   Schedule of Purchasers

                                    SCHEDULES

Schedule 7A  --   Approval and Consents
Schedule 7B  --   Capital Stock and Related Matters

                                    EXHIBITS

Exhibit A    --   Form of Guaranty
Exhibit B    --   Form of Convertible Note
Exhibit C    --   Form of Investor Rights Agreement
Exhibit D    --   Form of Registration Agreement
Exhibit E    --   Form of VitalStream Counsel Opinion
Exhibit F    --   Form of Warrant
Exhibit G    --   Form of Certificate of Designation

                                       iii
<Page>

                 CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT

          CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT, dated as of November
1, 2002 (this "AGREEMENT"), by and among VitalStream Holdings, Inc., a Nevada
corporation ("VITALSTREAM"), and the Persons listed on ANNEX 1 attached hereto
(such Persons shall be collectively referred to herein as the "PURCHASERS" and
individually as a "PURCHASER").

          Unless otherwise indicated herein, capitalized terms used in this
Agreement have the meanings set forth in SECTION 1 of this Agreement.

          WHEREAS, reference is made to that certain Asset Purchase Agreement,
dated as of the date hereof (as amended and modified from time to time, the
"ASSET PURCHASE AGREEMENT"), by and among the VitalStream, VitalStream
Broadcasting Corporation (the "BUYER"), Epoch Hosting, Inc. ("HOSTING") and
Epoch Networks, Inc. ("NETWORKS")

          WHEREAS, the execution and delivery of this Agreement is a condition
to the closing of the transactions contemplated by the Asset Purchase Agreement.

          NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties to this Agreement hereby agree as
follows:

          Section 1. DEFINITIONS.

          1A.     DEFINITIONS. For the purposes of this Agreement, the following
terms have the meanings set forth below:

          "AFFILIATE" of any particular Person means any other Person
controlling, controlled by or under common control with such particular Person,
where "CONTROL" means the possession, directly or indirectly, of the power to
direct the management and policies of a Person whether through the ownership of
voting securities, contract or otherwise.

          "AGREEMENT" has the meaning set forth in the preamble of this
Agreement.

          "AKKAD AGREEMENT" means the Stockholders and Registration Rights
Agreement, dated as of August 9, 2000, by and among VitalStream, Inc., Paul
Summer, Philip Kaplan and the Series B Holders (as defined therein), as assumed
by VitalStream, as amended, modified, restated, superseded or replaced from time
to time.

          "ARTICLES OF INCORPORATION" means the Articles of Incorporation of
VitalStream, as amended, modified, restated, superseded or replaced from time to
time.

          "ASSET PURCHASE AGREEMENT" has the meaning set forth in the preamble
of this Agreement.

          "AUTHORIZED VITALSTREAM ACQUISITION TRANSACTION" means a VitalStream
Acquisition Transaction which (i) the Board of Directors has determined, in its
good faith judgment, to be fair and in the best interest of all of the
securityholders of VitalStream and (ii)

<Page>

has been approved in writing, or by the vote at a duly-called meeting of the
Board of Directors, by a majority of the members of the Board of Directors.

          "AUTHORIZED VITALSTREAM SALE TRANSACTION" means a VitalStream Sale
Transaction in which either (i) the consideration to be paid consists solely of
Cash Consideration, (ii) each of the following conditions have been satisfied:
(a) the Board of Directors has determined, in its good faith judgment, to be
fair and in the best interest of all of the securityholders of VitalStream, (b)
has been approved in writing, or by the vote at a duly-called meeting of the
Board of Directors, by a majority of the members of the Board of Directors, (c)
after giving effect to such VitalStream Sale Transaction, the Net Worth of the
acquiring or surviving Person of such VitalStream Sale Transaction immediately
after the consummation of such VitalStream Sale Transaction is equal to or
greater than the Net Worth of VitalStream immediately prior to the consummation
of such VitalStream Sale Transactions, (d) after giving effect to such
VitalStream Sale Transaction, the Indebtedness to Equity Ratio of the acquiring
or surviving Person of such VitalStream Sale Transaction immediately after the
consummation of such VitalStream Sale Transaction less than or equal to 0.35,
and (e) after giving effect to such VitalStream Sale Transaction, the Current
Ratio of the acquiring or surviving Person of such VitalStream Sale Transaction
immediately after the consummation of such VitalStream Sale Transaction is equal
to or greater than 1.6 or (iii) the acquiring Person in such VitalStream Sale
Transaction shall, immediately prior to the consummation of such VitalStream
Sale Transaction, (a) have securities listed on a major national or
international stock exchange and (b) have a public market capitalization of at
least $1,000,000,000.

          "AVERAGE MONTHLY CASH FLOW" means, with respect to any period of any
Person, the sum of the Cash Flow of such Person for each month (and pro rata
portion thereof) during such period DIVIDED BY the number of months (and pro
rata portion thereof) in such period.

          "BOARD OF DIRECTORS" means the board of directors of VitalStream.

          "BUYER" has the meaning set forth in the preamble of this Agreement.

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

          "CASH CONSIDERATION" means cash and Marketable Securities.

          "CASH FLOW" means, with respect to any period of any Person, (i) the
sum of each of the following for such Person and all Subsidiaries of such Person
on a consolidated basis for such period, to the extent applicable, without
duplication, (a) net income or loss (excluding extraordinary or non-recurring
items) after Taxes and interest PLUS (b) depreciation expense MINUS (ii) the sum
of each of the following for such Person and all Subsidiaries of such Person on
a consolidated basis for such period, to the extent applicable, without
duplication, (a) changes in net working capital (which change for purposes
hereunder shall be a positive number for an increase in net working capital and
a negative number for a decrease in net working capital) PLUS (b) changes in
fixed assets (which change for purposes hereunder shall be a positive number for
an increase in fixed assets and a negative number for a decrease in fixed
assets) PLUS (c) the amount of payments and prepayments of principal on any
Indebtedness for borrowed money or

                                        2
<Page>

any Indebtedness evidenced by any Debt Security MINUS (iii) the amount of
proceeds of any Debt Security issued in substitution for, or exchange of,
Indebtedness for borrowed money, in each case as determined in accordance with
GAAP applied on a consistent basis in accordance with such Person's past
practice. For the avoidance of any doubt, the parties hereto hereby agree that
the calculation of Cash Flow as described immediately above shall be done in
accordance with the methodology set forth in Chapter 13 of the text CORPORATE
FINANCE: A VALUATION APPROACH by Simon Benninga and Oded Sarig.

          "CERTIFICATE OF DESIGNATION" means the Certificate of Designation,
setting forth, among other matters, the rights, preferences and privileges of
the Series A Preferred, in the form of EXHIBIT G attached hereto.

          "CLAIM" means any action, claim, lawsuit, demand, suit, charge,
complaint, inquiry, hearing, investigation, notice of a violation or
noncompliance, litigation, proceeding, arbitration, appeals or other dispute,
whether civil, criminal, administrative or otherwise.

          "CLOSING DATE" has the meaning set forth in SECTION 2C of this
Agreement.

          "CLOSING" has the meaning set forth in SECTION 2C of this Agreement.

          "COMMON STOCK" means VitalStream's Common Stock, par value $0.001 per
share, and any capital stock of any class of VitalStream (other than any
Preferred Equity Securities or the Series A 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
VitalStream.

          "COMMITMENT FEE" has the meaning set forth in SECTION 9A of this
Agreement.

          "CONVERTIBLE NOTES" means the Initial Convertible Notes and Subsequent
Convertible Notes.

          "CURRENT RATIO" means, with respect to any Person as of any date, the
ratio of (i) the aggregate amount of all current assets of such Person and all
Subsidiaries of such Person as determined on a consolidated basis as of such
date DIVIDED BY (ii) the aggregate amount of all current Liabilities of such
Person and all Subsidiaries of such Person as determined on a consolidated basis
as of such date, in each case as determined in accordance with GAAP applied on a
consistent basis in accordance with such Person's past practice.

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

          "DOLPHIN" means Dolphin Equity Partners, L.P.

          "DOLPHIN DIRECTOR NOTICE" has the meaning set forth in SECTION 5C of
this Agreement.

                                        3
<Page>

          "DOLPHIN FUND II" means Dolphin Communications Fund II, L.P. and
Dolphin Communications Parallel Fund II (Netherlands), L.P.

          "DOLPHIN DIRECTOR" has the meaning set forth in the Investor Rights
Agreement.

          "EQUITY SECURITY" means (i) any capital stock or other equity
security, (ii) any security directly or indirectly convertible into or
exchangeable for any capital stock or other equity security or security
containing any profit participation features, (iii) any warrants, options 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 or other equity security or security containing profit
participation features, or (iv) any stock appreciation rights, phantom stock
rights or other similar rights.

          "FAIR MARKET VALUE" means the price at which an asset would change
hands between a willing buyer and a willing seller when the former is not under
any compulsion to buy and the latter is not under any compulsion to sell, and
both parties are able, as well as willing, to trade and are well-informed about
the asset and the market for the asset, as determined jointly by VitalStream 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 MARKET
VALUE" shall be determined by an independent appraiser experienced in valuing
such type of asset jointly selected by VitalStream 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 VitalStream shall pay the fees and
expenses of such appraiser. Notwithstanding the foregoing, the "FAIR MARKET
VALUE" of any security listed on any securities exchange or quoted in the NASDAQ
System (including the proposed Bulletin Board Exchange) or the over-the-counter
market shall be the "MARKET PRICE".

          "FULLY DILUTED OUTSTANDING COMMON STOCK" has the meaning set forth in
the Convertible Notes.

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

          "GOVERNMENTAL ENTITY" means individually, and "GOVERNMENTAL ENTITIES"
means collectively, the United States of America, any state or other political
subdivision thereof, or any entity exercising executive, legislative, judicial,
regulatory or administrative functions of government, including any court.

          "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

                                        4
<Page>

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.

          "GUARANTY" means that certain Guaranty, dated as of the Initial
Closing Date or, if there is no Initial Closing, the Subsequent Closing Date, by
and among VitalStream, the VitalStream Subsidiaries and the Purchasers, in the
form of EXHIBIT A attached hereto, as amended, modified, restated, superseded or
replaced from time to time.

          "HOLDINGS" means Epoch Holdings, Inc., a Delaware corporation.

          "HOLDINGS EXECUTIVE OFFICER" means any current or former executive
officer of Holdings or any of its Subsidiaries or any employee of Holdings or
any of its Subsidiaries with a title of "Director" or "Vice-President" (or any
equivalent title indicating a position of similar or greater authority and
responsibility).

          "HOSTING" has the meaning set forth in the preamble of this Agreement.

          "INDEBTEDNESS" means at a particular time, without duplication, (i)
any indebtedness for borrowed money or issued in substitution for or exchange of
indebtedness for borrowed money, (ii) any indebtedness evidenced by any Debt
Security, (iii) 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), (iv) any commitment by which a
Person assures a creditor against loss (including, without limitation,
contingent reimbursement obligations with respect to letters of credit), (v) any
indebtedness Guaranteed in any manner by a Person (including, without
limitation, guaranties in the form of an agreement to repurchase or reimburse),
(vi) any obligations under capitalized leases and (vii) any indebtedness secured
by a Lien on a Person's assets.

          "INDEBTEDNESS TO EQUITY RATIO" means, with respect to any Person as of
any date, the quotient of (i) the aggregate amount of Indebtedness of such
Person and all Subsidiaries of such Person as determined on a consolidated basis
as of such date DIVIDED BY (ii) the aggregate amount of stockholders equity of
such Person and all Subsidiaries of such Person as determined on a consolidated
basis as of such date, in each case as determined in accordance with GAAP
applied on a consistent basis in accordance with such Person's past practice.

          "INDEMNITEES" has the meaning set forth in SECTION 9B of this
Agreement.

          "INITIAL CLOSING DATE" has the meaning set forth in SECTION 2C of this
Agreement.

          "INITIAL CLOSING" has the meaning set forth in SECTION 2C of this
Agreement.

          "INITIAL CONVERTIBLE NOTES" means those certain 10% Convertible
Promissory Notes of VitalStream issued at the Initial Closing pursuant to this
Agreement, in the form of EXHIBIT B attached hereto, as amended, modified,
restated, superseded or replaced from time to time.

                                        5
<Page>

          "INITIAL FINANCING AMOUNT" has the meaning set forth in SECTION 2A(ii)
of this Agreement.

          "INTELLECTUAL PROPERTY RIGHTS" means all (i) patents, patent
applications and patent disclosures; (ii) trademarks, service marks, trade
dress, trade names, logos, slogans, corporate names, Internet domain names and
registrations and applications for registration thereof, together with all of
the goodwill associated therewith (and all translations, adaptations,
derivations and combinations of the foregoing); (iii) copyrights (registered or
unregistered) and copyrightable works and registrations and applications for
registration thereof; (iv) mask works and registrations and applications for
registration thereof; (v) computer software (including, but not limited to,
source code and executable code), data, databases and documentation thereof;
(vi) trade secrets and other confidential information (including ideas,
formulas, compositions, inventions (whether patentable or unpatentable and
whether or not reduced to practice), know-how, manufacturing and production
processes and techniques, research and development information, customer
accounts, identifying information regarding customers, drawings, specifications,
designs, plans, proposals, technical data, financial and marketing plans and
customer and supplier lists and information); (vii) domain names, (viii) other
intellectual property or proprietary rights; and (ix) copies and tangible
embodiments thereof (in whatever form or medium).

          "INVESTMENT" as applied to any Person means (i) any direct or indirect
purchase or other acquisition by such Person of any Debt Securities, Equity
Securities, obligations, instruments or ownership interests (including
partnership interests and joint venture interests) of any other Person or any
other Person's business and (ii) any capital contribution by such Person to any
other Person.

          "INVESTOR RIGHTS AGREEMENT" means that certain Investor Rights
Agreement, dated as of the Initial Closing Date or, if there is no Initial
Closing, the Subsequent Closing Date, by and among VitalStream and the
securityholders of VitalStream referred to therein, in the form of EXHIBIT C
attached hereto, as amended, modified, restated, superseded or replaced from
time to time.

          "KNOWLEDGE" except as otherwise provided expressly herein, means the
actual knowledge or awareness of a Person (which shall include the actual
knowledge and awareness of the executive officers and directors of such Person
and any of such Person's Subsidiaries) after making reasonable inquiry and
reasonable diligence with respect to the particular matter in question.

          "LAWS" means all constitutions, statutes, laws, codes, ordinances,
regulations, rules, orders, judgments, writs, injunctions, acts or decrees of
any Governmental Entity.

          "LEGAL REQUIREMENT" means any requirement arising under any action,
Law, treaty, rule or regulation, determination or direction of an arbitrator or
Governmental Entity.

          "LIABILITY" means any liability or obligation of whatever kind or
nature (whether known or unknown, whether assert or unasserted, whether absolute
or contingent, whether

                                        6
<Page>

accrued or unaccrued, whether liquidated or unliquidated, and whether due or to
become due), including any liability or obligation for Taxes.

          "LIENS" 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 VitalStream or any of
the VitalStream 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
VitalStream or any of the VitalStream 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).

          "LOSSES" has the meaning set forth in SECTION 9B of this Agreement.

          "MARKET PRICE" of any security means either (i) 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
sales on such exchange on any day, the closing price of such security on the
principal exchange on the most recent day on which sales have taken place on
such exchange or (ii) if such security is not listed on an exchange but is
quoted in 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, in each case over a period of five (5) days consisting of the day as
of which the "MARKET PRICE" is being determined and the four (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 Market Value thereof.

          "MARKETABLE SECURITIES" means securities (i) issued by an issuer with
a public float equal to or greater than $500,000,000; (ii) that are of a class
of securities listed on a major national or international stock exchange or the
Nasdaq National Market; (iii) that constitute, in the aggregate, not more than
3.0% of the outstanding securities of such class; (iv) that are or were issued
to the Purchasers in a transaction registered under the Securities Act, or the
resale of which by such Purchasers is registered under the Securities Act, and
are otherwise freely tradable by such Purchasers without restriction under
applicable federal and state securities Laws; and (v) for which the product of
(a) the weekly trading volume for such securities for the five (5) business days
ending immediately prior to the date of consummation of an Authorized
VitalStream Sale Transaction for which such securities are to be issued,
MULTIPLIED BY, (b) four (4), is greater than the aggregate number of shares of
securities issued by such issuer as consideration for the Authorized VitalStream
Sale Transaction for which such securities are being issued.

          "NETWORKS" has the meaning set forth in the preamble of this
Agreement.

          "NET WORTH" means, with respect to any Person as of any date, the
difference of (i) the aggregate amount of all assets of such Person and all
Subsidiaries of such Person on a consolidated basis as of such date MINUS (ii)
the aggregate amount of all Liabilities of such

                                        7
<Page>

Person and all Subsidiaries of such Person on a consolidated basis as of such
date, in each case as determined in accordance with GAAP applied on a consistent
basis in accordance with such Person's past practice.

          "OFFICER'S CERTIFICATE" means a certificate signed by VitalStream's
president or its chief financial officer, stating that (i) 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 (ii) 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.

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

          "OTHER COMPANY SECURITIES" has the meaning set forth in the
Convertible Notes.

          "PERMITTED LIENS" means (i) Tax Liens with respect to Taxes not yet
due and payable or which are being contested in good faith by appropriate
proceedings and for which appropriate reserves have been established in
accordance with GAAP, consistently applied; (ii) deposits or pledges made in
connection with, or to secure payment of, utilities or similar services,
workers' compensation, unemployment insurance, old age pensions or other social
security obligations; (iii) mechanics', materialmen's or contractors' Liens
created by statute securing payment for amounts not yet due and payable; and
(iv) purchase money Liens and Liens securing rental payments under capital lease
arrangements.

          "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.

          "PREFERRED EQUITY SECURITIES" has the meaning set forth in the
Convertible Notes.

          "PREFERRED STOCK" means VitalStream's Preferred Stock, par value
$0.001 per share, as more fully described in the Articles of Incorporation.

          "PURCHASERS" has the meaning set forth in the preamble of this
Agreement.

          "REGISTRATION AGREEMENT" means that certain Registration Agreement,
dated as of the Initial Closing Date, or if there is no Initial Closing, the
Subsequent Closing Date, by and among VitalStream and the Purchasers, in the
form of EXHIBIT D attached hereto, as amended, modified, restated, superseded or
replaced from time to time.

          "RESTRICTED SECURITIES" means (i) the Convertible Notes, (ii) the
Warrants, (iii) the Equity Securities issued or issuable, directly or
indirectly, upon conversion of the Convertible Notes, (iv) the Common Stock
issued or issuable upon exercise of the Warrants, (v) the Common Stock issued as
payment of the Commitment Fee and (vi) any securities issued with respect to the
securities referred to in clauses (i), (ii), (iii), (iv) or (v) above by way of
a stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. As to any
particular Restricted Securities, such securities shall cease to

                                        8
<Page>

be Restricted Securities when they have (a) been effectively registered under
the Securities Act and disposed of in accordance with the registration statement
covering them, (b) been distributed to the public through a broker, dealer or
market maker pursuant to Rule 144 or become eligible for sale pursuant to Rule
144(k) adopted by the Securities and Exchange Commission under the Securities
Act (as such rule may be amended from time to time) or any similar rule or
regulation hereafter adopted by the Securities and Exchange Commission or (c)
been otherwise transferred and new certificates for them not bearing the
Securities Act legend set forth in SECTION 9C of this Agreement have been
delivered by VitalStream in accordance with SECTION 6 of this Agreement.
Whenever any particular securities cease to be Restricted Securities, the holder
thereof shall be entitled to receive from VitalStream, without expense, new
securities of like tenor not bearing a Securities Act legend of the character
set forth in SECTION 9C of this Agreement.

          "RULE 144" means Rule 144 adopted by the Securities and Exchange
Commission under the Securities Act (as such rule may be amended from time to
time) or any similar rule or regulation hereafter adopted by the Securities and
Exchange Commission.

          "SECURITIES ACT" means the Securities Act of 1933, as amended, or any
similar federal Law then in force and the rules promulgated thereunder.

          "SECURITIES AND EXCHANGE COMMISSION" means the Securities and Exchange
Commission and any Governmental Entity succeeding to the functions thereof.

          "SECURITIES EXCHANGE ACT" means the Securities Exchange Act of 1934,
as amended, or any similar federal Law then in force and the rules promulgated
thereunder.

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

          "SUBSEQUENT CONVERTIBLE NOTES" means those certain 10% Convertible
Promissory Notes of VitalStream issued at the Subsequent Closing pursuant to
this Agreement in the form of EXHIBIT B attached hereto, as amended, modified,
restated, superseded or replaced from time to time.

          "SUBSIDIARY" means, with respect to any Person, any corporation,
limited liability company, partnership, association or other business entity of
which (i) 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 (ii) 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.

                                        9
<Page>

          "TAX" or "TAXES" means federal, state, county, local, foreign or other
income, gross receipts, ad valorem, franchise, profits, sales or use, transfer,
registration, excise, utility, environmental, communications, real or personal
property, capital stock, income, license, payroll, wage or other withholding,
employment, unemployment, social security, severance, stamp, occupation,
alternative or add-on minimum, estimated and other taxes of any kind whatsoever
(including deficiencies, penalties, additions to tax, and interest attributable
thereto) whether disputed or not and including any obligations to indemnify or
otherwise assume or succeed to the Tax Liability of any other Person.

          "TRANSACTION AGREEMENTS" means this Agreement, the Notes, the
Guaranty, the Certificate of Designation, the Warrants, 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
VitalStream or any of the VitalStream 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).

          "UNDERLYING COMMON STOCK" means (i) the Common Stock issued or
issuable, directly or indirectly, upon conversion of the Convertible Notes, (ii)
the Common Stock issued or issuable upon exercise of the Warrants, (iii) the
Common Stock issued or issuable in connection with the Commitment Fee, and (iv)
any Common Stock issued or issuable with respect to the securities referred to
in clauses (i), (ii) and (iii) 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 Agreement, (a) any
Person who holds Convertible Notes shall be deemed to be the holder of the
Underlying Common Stock issuable, directly or indirectly, upon conversion of
such Convertible Notes regardless of any restriction or limitation on the
conversion of such Convertible Notes and (b) any Person who holds Warrants shall
be deemed to be the holder of the Underlying Common Stock issuable upon exercise
of such Warrants regardless of any restriction or limitation on the exercise of
such Warrants, and, with respect to both clauses (a) and (b) above, 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
VitalStream or any VitalStream Subsidiary.

          "VITALSTREAM" has the meaning set forth in the preamble to this
Agreement.

          "VITALSTREAM COUNSEL OPINION" shall mean an opinion of Stoel Rives,
LLP, counsel to VitalStream, substantially in the form attached hereto as
EXHIBIT E.

          "VITALSTREAM MATERIAL ADVERSE EFFECT" means a material and adverse
effect upon the business, operations, assets, Liabilities, condition (financial
or otherwise), operating results, prospects, cash flow, net worth or employee,
customer or supplier relations of VitalStream and the VitalStream Subsidiaries
taken as a whole.

                                       10
<Page>

          "VITALSTREAM ACQUISITION TRANSACTION" means (i) the acquisition by
VitalStream or any VitalStream Subsidiary of a Person who is not an Affiliate of
VitalStream or a substantial portion of the business of such Person by means of
any transaction or series of related transactions, including (a) any merger,
consolidation or other similar transaction, involving VitalStream or any
VitalStream Subsidiary and such Person (and its Affiliates) that, if
consummated, would result in the securityholders of VitalStream immediately
prior to the consummation of such merger, consolidation or other similar
transaction, directly or indirectly, owning more than 50% of the voting power of
the outstanding Equity Securities and Debt Securities of the surviving Person of
such merger, consolidation or other similar transaction, (b) the acquisition by
VitalStream or any VitalStream Subsidiary of Equity Securities or Debt
Securities of such Person or (c) the acquisition by VitalStream or any
VitalStream Subsidiary of the assets of such Person and (ii) VitalStream or any
VitalStream Subsidiary entering into a joint venture with a Person who is not an
Affiliate of VitalStream.

          "VITALSTREAM SALE TRANSACTION" means the acquisition of VitalStream or
any VitalStream Subsidiary or a substantial portion of the business of
VitalStream or any VitalStream Subsidiary by a Person who is not an Affiliate of
VitalStream by means of any transaction or series of related transactions,
including (i) any merger, consolidation or other similar transaction, involving
VitalStream or any VitalStream Subsidiary and such Person (and its Affiliates)
that, if consummated, would result in the securityholders of VitalStream
immediately prior to the consummation of such merger, consolidation or other
similar transaction, directly or indirectly, owning less than 50% of the voting
power of the outstanding Equity Securities and Debt Securities of the surviving
Person of such merger, consolidation or other similar transaction, (ii) the
issuance of Equity Securities or Debt Securities by VitalStream or any
VitalStream Subsidiary to such Person (and its Affiliates) or the acquisition by
such Person (and its Affiliates) of Equity Securities or Debt Securities of
VitalStream or any VitalStream Subsidiary representing more than 50% of the
voting power of the outstanding Equity Securities and Debt Securities of
VitalStream or such VitalStream Subsidiary, (iii) any tender or exchange offer
that, if consummated, would result in such Person and its Affiliates owning
Equity Securities or Debt Securities of VitalStream or any VitalStream
Subsidiary representing more than 50% of the voting power of the outstanding
Equity Securities or Debt Securities of VitalStream or such VitalStream
Subsidiary or (iv) the sale of all or substantially all of the assets of
VitalStream or any VitalStream Subsidiary followed by a liquidation of
VitalStream or such VitalStream Subsidiary.

          "VITALSTREAM SUBSIDIARIES" shall mean the Subsidiaries of VitalStream.

          "WARRANTS" shall mean those certain Common Stock Purchase Warrants of
VitalStream issued pursuant to this Agreement, in the form of EXHIBIT F attached
hereto, as amended, modified, restated, superseded or replaced from time to
time.

          "WHOLLY-OWNED SUBSIDIARY" means, with respect to any Person, a
Subsidiary of which all of the outstanding capital stock or other ownership
interests are owned by such Person or another Wholly-Owned Subsidiary of such
Person.

          Section 2. AUTHORIZATION AND CLOSINGS.

                                       11
<Page>

          2A.     AUTHORIZATION, PURCHASE AND SALE OF THE INITIAL CONVERTIBLE
NOTES AND WARRANTS.

          (i)     VitalStream has duly authorized the issuance and sale,
pursuant to the terms of this Agreement, of the Initial Convertible Notes and
the Warrants. The Initial Convertible Notes are, subject to the terms of the
Initial Convertible Notes, convertible into shares of Common Stock, Series A
Preferred, Preferred Equity Securities and Other Company Securities. The
Warrants are exercisable for shares of Common Stock.

          (ii)    At any time during the period (the "INITIAL FINANCING PERIOD")
beginning on the date fifteen (15) business days after the date hereof and
ending on the day immediately prior to the date of the consummation of the
transactions contemplated by the Asset Purchase Agreement, subject to the terms
and conditions of this Agreement, at the Initial Closing, VitalStream shall have
the one-time right (the "INITIAL FINANCING PUT RIGHT") to require the Purchasers
to purchase, in the aggregate, no less than $150,000 and no more than
$409,167.67 principal amount of Initial Convertible Notes. If VitalStream
chooses to exercise its Initial Financing Put Rights, VitalStream shall deliver
a notice (a "INITIAL FINANCING PUT NOTICE") to each Purchaser between the date
hereof and the date that is fifteen (15) business days prior to the day
immediately prior to the date of the consummation of the transactions
contemplated by the Asset Purchase Agreement setting forth the date (the
"INITIAL CLOSING DATE") on which such issuance shall be consummated (which date
shall be no less than fifteen (15) business days after the date of the receipt
by the Purchasers of such Initial Financing Put Notice and no later than the day
immediately prior to the date of the consummation of the transactions
contemplated by the Asset Purchase Agreement) and the aggregate principal amount
of Initial Convertible Notes (the "INITIAL FINANCING AMOUNT") to be purchased by
the Initial Purchasers on the Initial Closing Date. In no event may the Initial
Closing occur after the day immediately prior to the date of the consummation of
the transactions contemplated by the Asset Purchase Agreement.

          (iii)   If VitalStream elects to exercise its Initial Financing Put
Rights, subject to the terms and conditions of this Agreement, at the Initial
Closing, VitalStream shall issue and sell to each Purchaser and each Purchaser
shall purchase from VitalStream: (i) an Initial Convertible Note in the
principal amount equal to the product of (a) the Initial Financing Amount
MULTIPLIED BY (b) the percentage set forth opposite such Purchaser's name on
ANNEX 1 attached hereto under the heading "PRO RATA SHARE OF INITIAL FINANCING
AMOUNT" for a price equal to such principal amount and (ii) for no additional
consideration, a Warrant to purchase a number of shares of Common Stock
calculated in accordance with the terms of the Warrant.

          (iv)    The sale of the Initial Convertible Notes and Warrants to each
Purchaser hereunder shall constitute a separate sale.

          2B.     AUTHORIZATION, PURCHASE AND SALE OF THE SUBSEQUENT CONVERTIBLE
NOTES.

          (i)     VitalStream has duly authorized the issuance and sale,
pursuant to the terms of this Agreement, of the Subsequent Convertible Notes.
The Subsequent Convertible Notes are, subject to the terms of the Subsequent
Convertible Notes, convertible into shares of Common Stock, Series A Preferred,
Preferred Equity Securities and Other Company Securities.

                                       12
<Page>

          (ii)    Subject to the terms and conditions of this Agreement, at the
Subsequent Closing, VitalStream shall issue and sell to each Purchaser and each
Purchaser shall purchase from VitalStream (a) a Subsequent Convertible Note in
the principal amount equal to the difference between (1) the product of (A)
$1,100,000 MULTIPLIED BY, (B) the percentage set forth opposite such Purchaser's
name on ANNEX 1 attached hereto under the heading "PRO RATA SHARE OF INITIAL
FINANCING AMOUNT" MINUS (2) the principal amount of Initial Convertible Notes,
if any, purchased by such Purchaser at the Initial Closing, for a price equal to
such principal amount and (b) if the Initial Closing is not consummated, for no
additional consideration, a Warrant to purchase a number of shares of Common
Stock calculated in accordance with the terms of the Warrant.

          (iii)   The sale of each Subsequent Convertible Note and, if
applicable, Warrants to each Purchaser hereunder shall constitute a separate
sale.

          2C.     THE CLOSINGS.

          (i)     The closing (the "INITIAL CLOSING") of the issuance, sale and
purchase of the Initial Convertible Notes and Warrants under this Agreement
shall, subject to the satisfaction or waiver of all conditions to the
obligations of the parties hereto to consummate the Initial Closing (other than
conditions with respect to actions the parties hereto will take at the Initial
Closing itself), take place at the offices of VitalStream located at One Jenner,
Suite 100, Irvine, California 92618 commencing at 9:00 a.m. local time on the
Initial Closing Date (or such other date as the parties hereto may mutually
determine in writing). At the Initial Closing, VitalStream shall deliver to each
Purchaser (a) an instrument evidencing the Initial Convertible Note to be
purchased by such Purchaser, payable to such Purchaser or its nominee or
registered in such Purchaser's or its nominee's name, upon payment of the
purchase price thereof by a cashier's or certified check, or by wire transfer of
immediately available funds, to VitalStream and (b) an instrument evidencing the
Warrant to be purchased by such Purchaser, registered in such Purchaser's or its
nominee's name.

          (ii)    SUBSEQUENT CLOSING. The closing (the "SUBSEQUENT CLOSING") of
the issuance, sale and purchase of the Subsequent Convertible Notes and, if the
Initial Closing has not been consummated, Warrants under this Agreement, shall,
subject to the satisfaction or waiver of all conditions to the obligations of
the parties hereto to consummate the Subsequent Closing (other than conditions
with respect to actions the parties hereto will take at the Subsequent Closing
itself), take place at the offices of VitalStream located at One Jenner, Suite
100, Irvine, California 92618 commencing at 9:00 a.m. local time on the date
(the "SUBSEQUENT CLOSING DATE" and, together with the Initial Closing Date, the
"CLOSING DATES") of closing of the transactions contemplated by the Asset
Purchase Agreement. At the Subsequent Closing (a) if the Initial Closing has
been consummated, VitalStream shall deliver to each Purchaser an instrument
evidencing the Subsequent Convertible Note to be purchased by such Purchaser,
payable to such Purchaser or its nominee or registered in such Purchaser's or
its nominee's name, upon payment of the purchase price thereof by a cashier's or
certified check, or by wire transfer of immediately available funds, to
VitalStream and (b) if the Initial Closing has not been consummated, VitalStream
shall deliver to each Purchaser (1) an instrument evidencing the Subsequent
Convertible Note to be purchased by such Purchaser, payable to such Purchaser or
its nominee or registered in such Purchaser's or its nominee's name, upon
payment of the

                                       13
<Page>

purchase price thereof by a cashier's or certified check, or by wire transfer of
immediately available funds, to VitalStream and (2) an instrument evidencing the
Warrant to be purchased by such Purchaser, registered in such Purchaser's or its
nominee's name.

          Section 3. CONDITIONS OF EACH PURCHASER'S OBLIGATIONS AT THE CLOSINGS.

          3A.     CONDITIONS OF EACH PURCHASER'S OBLIGATIONS AT EACH CLOSING.
The obligation of each Purchaser to purchase and pay for the Convertible Notes
and Warrants, as the case may be, at each Closing shall be subject to the
fulfillment at or prior to such Closing of each of the following conditions, any
and all of which may be waived in whole or in part in writing by such Purchaser
to the extent permitted by applicable Law:

          (i)     REPRESENTATIONS AND WARRANTIES; COVENANTS. The representations
and warranties of VitalStream contained in SECTION 7 hereof shall be true and
correct in all material respects at and as of such Closing as though then made
and as though such Closing Date was substituted for the date of this Agreement
throughout such representations and warranties (except for any representations
or warranties made as of a specific date, which shall be true and correct as of
such date and except for any representations and warranties which are qualified
by materiality, which shall be true and correct in all respects). VitalStream
shall have duly performed or complied with, in all material respects, all of the
covenants, obligations and conditions to be performed or complied with under the
terms of this Agreement and the other Transaction Agreements on, prior to, or at
such Closing and shall be in compliance with, in all material respects, all of
the covenants, obligations and conditions to be complied with under the terms of
this Agreement at such Closing.

          (ii)    CONSENTS AND APPROVALS. VitalStream shall have made all
filings and shall have obtained and delivered to each Purchaser all permits,
authorizations, consents and approvals of any Governmental Entity and/or third
party required to be obtained by VitalStream to consummate the transactions
contemplated to be consummated at such Closing by this Agreement and the other
Transaction Agreements.

          (iii)   LITIGATION. No suit, action or other proceeding, or
injunction, order, decree or judgment relating thereto, shall be threatened or
shall be pending in which it is sought to restrain or prohibit or to obtain
damages or other relief in connection with the transactions contemplated under
this Agreement or any of the other Transaction Agreements or that would have, or
would reasonably be expected to have, a VitalStream Material Adverse Effect, and
no injunction, judgment, order, decree or ruling with respect thereto shall be
in effect.

          (iv)    SECURITIES LAW COMPLIANCE. VitalStream shall have made all
filings under all applicable federal and state securities Laws necessary to
consummate the issuance and sale of the Initial Convertible Notes, Warrants and
Underlying Common Stock pursuant to this Agreement in compliance with such Laws.

          (v)     NO VITALSTREAM MATERIAL ADVERSE EFFECT. There shall not have
occurred any VitalStream Material Adverse Effect since June 30, 2002.

          (vi)    ASSET PURCHASE AGREEMENT. The Asset Purchase Agreement shall
have been executed and delivered by VitalStream, the Buyer, Hosting and
Networks. The Asset

                                       14
<Page>

Purchase Agreement shall be in full force and effect as of such Closing Date and
shall not have been amended or modified.

          (vii)   REGISTRATION AGREEMENT. The Registration Agreement shall have
been executed and delivered by VitalStream and shall be in full force and
effect.

          (viii)  INVESTOR RIGHTS AGREEMENT. The Investor Rights Agreement shall
have been executed and delivered by VitalStream and each of the other parties
thereto and shall be in full force and effect.

          (ix)    GUARANTY. The Guaranty shall have been executed and delivered
by VitalStream and each VitalStream Subsidiary which has any assets and shall be
in full force and effect.

          (x)     OPINION OF VITALSTREAM'S COUNSEL. Purchasers shall have
received an executed copy of the VitalStream Counsel Opinion.

          (xi)    SALE OF CONVERTIBLE NOTES AND WARRANTS TO EACH PURCHASER.
VitalStream shall have simultaneously issued and sold to each Purchaser the
Convertible Notes and Warrants, as the case may be, to be purchased by such
Purchaser hereunder at such Closing and VitalStream shall have received payment
therefore in full.

          (xii)   CLOSING DOCUMENTS. VitalStream shall have delivered to each
Purchaser all of the following documents:

                  (a)  an Officer's Certificate, dated as of such Closing Date,
     stating that the conditions specified in SECTION 3A(i) through SECTION
     3A(vi) of this Agreement have been fully satisfied;

                  (b)  certified copies of the resolutions duly adopted by
     VitalStream's Board of Directors authorizing the execution, delivery and
     performance of this Agreement, the other Transaction Agreements to which it
     is a party and each of the other agreements contemplated hereby or thereby
     to which it is a party, the issuance and sale of the Convertible Notes, the
     issuance and sale of the Warrants, the reservation for issuance of a number
     of shares of Common Stock sufficient for conversion of the Convertible
     Notes, the reservation for issuance of a number of shares of Common Stock
     sufficient for exercise of the Warrants and the consummation of all other
     transactions contemplated by this Agreement and the other Transaction
     Agreements to which it is a party;

                  (c)  certified copies of the Articles of Incorporation and
     VitalStream's bylaws, each as in effect at such Closing Date;

                  (d)  certificate of good standing from the Secretary of State
     of the State of Nevada dated within ten (10) days of such Closing Date;

                  (e)  copies of all filings, permits, authorizations, consents
     and approvals of any Governmental Entity and/or third party required in
     connection with the

                                       15
<Page>

     consummation of the transactions contemplated by this Agreement and the
     other Transaction Agreements (including, without limitation, all blue sky
     Law filings); and

                  (f)  such other documents relating to the transactions
     contemplated by this Agreement or the other Transaction Agreements as any
     Purchaser or its special counsel may reasonably request.

          (xiii)  PROCEEDINGS. All corporate and other proceedings taken or
required to be taken by VitalStream in connection with the transactions
contemplated hereby and by the other Transaction Agreements to be consummated at
or prior to such Closing and all documents incident thereto shall be reasonably
satisfactory in form and substance to each Purchaser and its special counsel.

          3B.     ADDITIONAL CONDITIONS OF EACH PURCHASER'S OBLIGATIONS AT THE
INITIAL CLOSING. In addition to each of the conditions set forth in SECTION 3A
hereof, the obligation of each Purchaser to purchase and pay for the Initial
Convertible Notes and Warrants at the Initial Closing shall be subject to the
fulfillment at or prior to the Initial Closing of each of the following
additional conditions, any and all of which may be waived in whole or in part in
writing by such Purchaser to the extent permitted by applicable Law:

          (i)     PAYMENT OF THE COMMITMENT FEE. VitalStream shall have paid
one-third of the aggregate amount of the Commitment Fee to Dolphin.

          (ii)    PAYMENT OF PURCHASERS' ATTORNEYS FEES. VitalStream shall have
reimbursed the Purchasers for the fees and expenses of legal counsel incurred by
Purchasers in connection with the preparation of this Agreement and the other
Transaction Agreements in an amount not to exceed $42,500.

          3C.     ADDITIONAL CONDITIONS OF EACH PURCHASER'S OBLIGATIONS AT THE
SUBSEQUENT CLOSING IF THE INITIAL CLOSING HAS NOT BEEN CONSUMMATED. If the
Initial Closing has not been consummated, in addition to each of the conditions
set forth in SECTION 3A hereof, the obligation of each Purchaser to purchase and
pay for the Subsequent Convertible Notes and Warrants at the Subsequent Closing
shall be subject to the fulfillment at or prior to the Subsequent Closing of
each of the following additional conditions, any and all of which may be waived
in whole or in part in writing by such Purchaser to the extent permitted by
applicable Law:

          (i)     ASSET PURCHASE AGREEMENT. The conditions in Section 7(b) of
the Asset Purchase Agreement shall have been satisfied in full (without reliance
on any waiver by Hosting) (other than the transfer of the Cash Consideration (as
defined in the Asset Purchase Agreement) as contemplated by Section 7(b)(xiv) of
the Asset Purchase Agreement which transfer shall not occur until immediately
after VitalStream has received the purchase price for all of the Subsequent
Convertible Notes as contemplated by this Agreement), and the transactions
contemplated by the Asset Purchase Agreement shall have been consummated
immediately prior to the Subsequent Closing in accordance with the terms of the
Asset Purchase Agreement.

          (ii)    PAYMENT OF THE COMMITMENT FEE. VitalStream shall have paid the
Commitment Fee to Dolphin in full.

                                       16
<Page>

          (iii)   PAYMENT OF PURCHASERS' ATTORNEYS FEES. VitalStream shall have
reimbursed the Purchasers for the fees and expenses of legal counsel incurred by
Purchasers in connection with the preparation of this Agreement and the other
Transaction Agreements in an amount not to exceed $42,500.

          (iv)    SUBSEQUENT CLOSING DOCUMENTS. VitalStream shall have delivered
to each Purchaser an Officer's Certificate, dated as of the Subsequent Closing
Date, stating that the conditions specified in SECTION 3C(i) of this Agreement
have been fully satisfied.

          3D.     ADDITIONAL CONDITIONS OF EACH PURCHASER'S OBLIGATIONS AT THE
SUBSEQUENT CLOSING IF THE INITIAL CLOSING HAS BEEN CONSUMMATED. If the Initial
Closing has been consummated, in addition to each of the conditions set forth in
SECTION 3A hereof, the obligation of each Purchaser to purchase and pay for the
Subsequent Convertible Notes at the Subsequent Closing shall be subject to the
fulfillment at or prior to the Subsequent Closing of each of the following
additional conditions, any and all of which may be waived in whole or in part in
writing by such Purchaser to the extent permitted by applicable Law:

          (i)     CONSUMMATION OF THE INITIAL CLOSING. The Initial Closing shall
have been consummated in accordance with the terms of this Agreement.

          (ii)    NO EVENT OF DEFAULT. No Event of Default (as defined in the
Initial Convertible Notes) shall have occurred and be continuing under the
Initial Convertible Notes.

          (iii)   ASSET PURCHASE AGREEMENT. The conditions in Section 7(b) of
the Asset Purchase Agreement shall have been satisfied in full (without reliance
on any waiver by Hosting) (other than the transfer of the Cash Consideration (as
defined in the Asset Purchase Agreement) as contemplated by Section 7(b)(xiv) of
the Asset Purchase Agreement which transfer shall not occur until immediately
after VitalStream has received the purchase price for all of the Subsequent
Convertible Notes as contemplated by this Agreement), and the transactions
contemplated by the Asset Purchase Agreement shall have been consummated prior
to the Subsequent Closing in accordance with the terms of the Asset Purchase
Agreement.

          (iv)    PAYMENT OF THE COMMITMENT FEE. VitalStream shall have paid in
full any amount of the Commitment Fee to Dolphin which has not been previously
paid.

          (v)     SUBSEQUENT CLOSING DOCUMENTS. VitalStream shall have delivered
to each Purchaser an Officer's Certificate, dated as of the Subsequent Closing
Date, stating that the conditions specified in SECTION 3D(i) and SECTION 3D(iii)
of this Agreement have been fully satisfied.

          Section 4. CONDITIONS OF VITALSTREAM'S OBLIGATIONS AT THE CLOSINGS.

          4A.     CONDITIONS OF VITALSTREAM'S OBLIGATIONS AT EACH CLOSING. The
obligation of VitalStream to issue and sell the Convertible Notes and Warrants,
as the case may be, to the Purchasers at each Closing shall be subject to the
fulfillment at or prior to such Closing of each of the following conditions, any
and all of which may be waived in whole or in part in writing by VitalStream to
the extent permitted by applicable Law:

                                       17
<Page>

          (i)     REPRESENTATIONS AND WARRANTIES; COVENANTS. The representations
and warranties of each of the Purchasers contained in SECTION 9C hereof shall be
true and correct in all material respects at and as of such Closing as though
then made and as though such Closing Date was substituted for the date of this
Agreement throughout such representations and warranties (except for any
representations or warranties made as of a specific date, which shall be true
and correct as of such date and except for any representations and warranties
which are qualified by materiality, which shall be true and correct in all
respects). Each Purchaser shall have duly performed or complied with, in all
material respects, all of the covenants, obligations and conditions to be
performed or complied with under the terms of this Agreement on, prior to, or at
such Closing.

          (ii)    LITIGATION. No suit, action or other proceeding, or
injunction, order, decree or judgment relating thereto, shall be threatened or
shall be pending in which it is sought to restrain or prohibit or to obtain
damages or other relief in connection with the transactions contemplated under
this Agreement or any of the other Transaction Agreements or that would have, or
reasonably be expected to have, a VitalStream Material Adverse Effect, and no
injunction, judgment, order, decree or ruling with respect thereto shall be in
effect.

          (iii)   ASSET PURCHASE AGREEMENT. The Asset Purchase Agreement shall
have been executed and delivered by VitalStream, the Buyer, Hosting and
Networks. The Asset Purchase Agreement shall be in full force and effect as of
such Closing Date and shall not have been amended or modified.

          (iv)    SALE OF CONVERTIBLE NOTES AND WARRANTS TO EACH PURCHASER. Each
Purchaser shall have tendered at such Closing the purchase price required under
this Agreement to be tendered for the Convertible Notes and Warrants being
purchased.

          (v)     CLOSING DOCUMENTS. Each Purchaser shall have delivered to
VitalStream such documents relating to the transactions contemplated by this
Agreement as VitalStream or its special counsel may reasonably request.

          (vi)    PROCEEDINGS. All corporate and other proceedings taken or
required to be taken by each Purchaser in connection with the transactions
contemplated hereby and by the other Transaction Agreements to be consummated at
or prior to such Closing and all documents incident thereto shall be reasonably
satisfactory in form and substance to VitalStream and its special counsel.

          4B.     ADDITIONAL CONDITIONS OF VITALSTREAM'S OBLIGATIONS AT THE
SUBSEQUENT CLOSING IF THE INITIAL CLOSING HAS NOT BEEN CONSUMMATED. If the
Initial Closing has not been consummated, in addition to each of the conditions
set forth in SECTION 4A hereof, the obligation of VitalStream to issue and sell
the Convertible Notes and Warrants to the Purchasers at the Subsequent Closing
shall be subject to the fulfillment at or prior to the Subsequent Closing of the
following additional condition, which may be waived in whole or in part in
writing by VitalStream to the extent permitted by applicable Law:

          (i)     ASSET PURCHASE AGREEMENT. The conditions in Section 7(a) of
the Asset Purchase Agreement shall have been satisfied in full (without reliance
on any waiver by

                                       18
<Page>

Hosting), and the transactions contemplated by the Asset Purchase Agreement
shall have been consummated immediately prior to the Subsequent Closing in
accordance with the terms of the Asset Purchase Agreement.

          4C.     ADDITIONAL CONDITIONS OF VITALSTREAM'S OBLIGATIONS AT THE
SUBSEQUENT CLOSING IF THE INITIAL CLOSING HAS BEEN CONSUMMATED. If the Initial
Closing has been consummated, in addition to each of the conditions set forth in
SECTION 4A hereof, the obligation of VitalStream to issue and sell the
Subsequent Convertible Notes to the Purchasers at the Subsequent Closing shall
be subject to the fulfillment at or prior to the Subsequent Closing of each of
the following additional conditions, any and all of which may be waived in whole
or in part in writing by VitalStream to the extent permitted by applicable Law:

          (i)     CONSUMMATION OF THE INITIAL CLOSING. The Initial Closing shall
have been consummated in accordance with the terms of this Agreement.

          (ii)    ASSET PURCHASE AGREEMENT. The conditions in Section 7(a) of
the Asset Purchase Agreement shall have been satisfied in full (without reliance
on any waiver by Hosting), and the transactions contemplated by the Asset
Purchase Agreement shall have been consummated immediately prior to the
Subsequent Closing in accordance with the terms of the Asset Purchase Agreement.

          Section 5. COVENANTS.

          5A.     RESERVATION OF COMMON STOCK AND SERIES A PREFERRED.
VitalStream shall at all times reserve and keep available out of its authorized
but unissued shares of Common Stock, solely for the purpose of issuance,
directly or indirectly, upon the conversion of the Convertible Notes and
exercise of the Warrants, such number of shares of Underlying Common Stock
issuable upon the conversion of all outstanding Convertible Notes and exercise
of all outstanding Warrants. VitalStream shall at all times reserve and keep
available out of its authorized but unissued shares of Series A Preferred,
solely for the purpose of issuance upon the conversion of the Convertible Notes,
such number of shares of Series A Preferred issuable upon the conversion of all
outstanding Convertible Notes. All shares of Underlying Common Stock or Series A
Preferred, as the case may be, which are so issuable shall, when issued, be duly
and validly issued, fully paid and non assessable and free from all Taxes and
Liens. VitalStream shall take all such actions as may be necessary to assure
that all such shares of Underlying Common Stock or Series A Preferred, as the
case may be, may be so issued without violation of any applicable Law or Legal
Requirement or any requirements of any domestic securities exchange upon which
shares of Underlying Common Stock or Series A Preferred, as the case may be, may
be listed (except for official notice of issuance which shall be immediately
transmitted by VitalStream upon issuance).

          5B.     INTELLECTUAL PROPERTY RIGHTS. VitalStream shall possess and
maintain all Intellectual Property Rights necessary to the conduct of its
business and own all right, title and interest in and to, or have a valid and
enforceable license to use, all such Intellectual Property Rights. VitalStream
shall not take any action or fail to take any action which would result in the
invalidity, abandonment, misuse or unenforceability of such Intellectual
Property Rights or which would infringe upon or misappropriate any Intellectual
Property Rights of other Persons.

                                       19
<Page>

          5C.     RESTRICTIVE COVENANTS. In addition to any action otherwise
required by the Articles of Incorporation or applicable Law for so long as any
Convertible Notes remain outstanding and, (a) at any time on or prior to the
Subsequent Closing Date, for so long as the Underlying Common Stock constitutes
at least one (1) percent of VitalStream's outstanding Common Stock and (b) at
any time following the Subsequent Closing Date, for so long as the Underlying
Common Stock constitutes at least three (3) percent of VitalStream's outstanding
Common Stock, VitalStream shall not take any of the following actions without
the prior written authorization and approval of the holders of a majority of the
principal amount of the Convertible Notes then outstanding.

          (i)     directly or indirectly declare or pay any dividends or make
any distributions upon any of its Equity Securities, except for dividends
payable in shares of Common Stock issued upon the outstanding shares of Common
Stock;

          (ii)    directly or indirectly redeem, purchase or otherwise acquire,
or permit any of the VitalStream Subsidiaries to redeem, purchase or otherwise
acquire, any of VitalStream's or any of the VitalStream Subsidiary's Debt
Securities or Equity Securities or directly or indirectly redeem, purchase or
make any payments with respect to any stock appreciation rights, phantom stock
plans or similar rights or plans; PROVIDED, HOWEVER (a) the payment of any
Indebtedness under any Debt Security of VitalStream or any VitalStream
Subsidiary at the time, and in the amounts, such Indebtedness becomes due and
payable in accordance with the terms of such Debt Security or the repayment in
full of all of the Indebtedness under any Debt Security of VitalStream or any
VitalStream Subsidiary with the proceeds of an issuance of Debt Securities by
VitalStream or any VitalStream Subsidiary shall not require the consent of the
holders of the Convertible Notes under this SECTION 5C(ii) (notwithstanding the
foregoing, for the avoidance of any doubt, this provision shall not negate the
obligation of VitalStream to obtain the consent of the holders of the
Convertible Notes under SECTION 5C(xiii) of this Agreement) and (b) at any time
after the date on which the Dolphin Director becomes a member of the Board of
Directors and, for so long as any Convertible Notes remain outstanding,
continues to be a member of the Board of Directors, VitalStream may, at any time
and from time to time during any fiscal quarter, redeem shares of Common Stock
which are publicly traded and listed on any securities exchange or quoted in the
NASDAQ System (including the proposed Bulletin Board Exchange) or the
over-the-counter market, for an aggregate purchase price of up to an amount
equal to 35% of the consolidated Cash Flow of Vital Stream and the VitalStream
Subsidiaries for the prior fiscal quarter of VitalStream if (1) the Board of
Directors has determined, in its good faith judgment, that such redemption is
fair and in the best interest of all of the securityholders of VitalStream and
(2) such redemption has been approved in writing, or by the vote at a
duly-called meeting of the Board of Directors, by a majority of the members of
the Board of Directors;

          (iii)   (a) make, or permit any of the VitalStream Subsidiaries to
make, any loans or advances to, guaranties for the benefit of, or Investments
in, any Person or business (other than with respect to Wholly-Owned
Subsidiaries), (b) acquire, or permit any of the VitalStream Subsidiaries to
acquire, any interest in any Person or business (other than with respect to
Wholly-Owned Subsidiaries) by a purchase of assets or (c) enter into, or permit
any of the VitalStream Subsidiaries to enter into, a joint venture with any
Person (other than a Wholly-Owned Subsidiaries), except for (1) advances to
employees of an amount not in excess of one month's

                                       20
<Page>

salary in the Ordinary Course of Business, (2) Investments having a stated
maturity no greater than one year from the date such Investment is made in (A)
obligations of the United States government or any agency thereof or obligations
guaranteed by the United States government, (B) certificates of deposit of
commercial banks having combined capital and surplus of at least $50 million at
the time of such Investment, (C) commercial paper with a rating of at least
"PRIME-1" by Moody's Investors Service, Inc. at the time of such Investment or
(D) Debt Securities of a Person solely as part of the consummation of an
acquisition (whether by a purchase of assets, purchase of stock, merger or
otherwise) by VitalStream or any VitalStream Subsidiary of any interest in such
Person or such Person's business; PROVIDED, THAT, (i) to the extent required,
such acquisition has been approved by the holders of the Convertible Notes under
this SECTION 5C, (ii) at any time prior to the date on which the Dolphin
Director has become a member of the Board of Directors, such acquisition and
Investment has been approved in writing by Dolphin, (iii) such acquisition and
Investment has been approved in writing, or by the vote at a duly-called meeting
of the Board of Directors, by a majority of the members of the Board of
Directors and (iv) such Investment is an amount not greater than $375,000 or (3)
Investments, acquisitions of assets or joint ventures (A) in which the pro forma
consolidated Average Monthly Cash Flow of the Person or business in which an
Investment is made, the assets acquired or the joint venture entity, as the case
may be, for the twelve (12) month period immediately following the execution of
a definitive agreement relating to such Investment, purchase of assets or joint
venture (as determined, (i) at any time prior to the date on which the Dolphin
Director has become a member of the Board of Directors, by Dolphin and (ii) at
any time after the date on which the Dolphin Director becomes a member of the
Board of Directors and, for so long as any Convertible Notes remain outstanding,
continues to be a member of the Board of Directors, by the Board of Directors in
its good faith judgment) is greater than $0.00 and (B) which constitute an
Authorized VitalStream Acquisition Transaction;

          (iv)    merge or consolidate with any Person, or permit any of the
VitalStream Subsidiaries to merge or consolidate with any Person (other than a
Wholly-Owned Subsidiary), except, at any time after the date on which the
Dolphin Director becomes a member of the Board of Directors and, for so long as
any Convertible Notes remain outstanding, continues to be a member of the Board
of Directors, for any merger or consolidation (a) in which the pro forma
consolidated Average Monthly Cash Flow of the Person with whom VitalStream or
any of the VitalStream Subsidiaries will merge or consolidate for the twelve
(12) month period immediately following the execution of a definitive agreement
relating to such merger or consolidation (as determined, (1) at any time prior
to the date on which the Dolphin Director has become a member of the Board of
Directors, by Dolphin and (2) at any time after the date on which the Dolphin
Director becomes a member of the Board of Directors and, for so long as any
Convertible Notes remain outstanding, continues to be a member of the Board of
Directors, by the Board of Directors in its good faith judgment) is greater than
$0.00 and (b) which constitutes either (1) an Authorized VitalStream Sale
Transaction or (2) an Authorized VitalStream Acquisition Transaction;

          (v)     sell, lease or otherwise dispose of, or permit any of the
VitalStream Subsidiaries to sell, lease or otherwise dispose of, in the
aggregate, more than 17.5% of the consolidated assets of VitalStream and the
VitalStream Subsidiaries (computed on the basis of the greater of (a) book value
determined in accordance with GAAP consistently applied or (b) Fair Market
Value), except for (1) any sale, lease or other disposition of assets in the
Ordinary

                                       21
<Page>

Course of Business, (2) any sale, lease or other disposition of assets required
by any Law or Legal Requirement in order to permit VitalStream or any
VitalStream Subsidiary to consummate an acquisition (whether by a purchase of
assets, purchase of stock, merger or otherwise) of any interest in a Person or
such Person's business; PROVIDED, THAT, (A) to the extent required, such
acquisition has been approved by the holders of the Convertible Notes under this
SECTION 5C, (B) at any time prior to the date on which the Dolphin Director has
become a member of the Board of Directors, such acquisition has been approved in
writing by Dolphin and (C) at any time after the date on which the Dolphin
Director becomes a member of the Board of Directors and, for so long as any
Convertible Notes remain outstanding, continues to be a member of the Board of
Directors, such acquisition has been approved in writing, or by the vote at a
duly-called meeting of the Board of Directors, by a majority of the members of
the Board of Directors or (3) any sale of assets which constitutes an Authorized
VitalStream Sale Transaction;

          (vi)    liquidate, dissolve or effect a recapitalization or
reorganization in any form of transaction (including, without limitation, any
reorganization into a limited liability company, a partnership or any other
non-corporate entity which is treated as a partnership for federal income tax
purposes), except for any liquidation, dissolution, recapitalization or
reorganization effectuated in connection with the consummation of (a) an
Authorized VitalStream Sale Transaction or (b) an Authorized VitalStream
Acquisition Transaction;

          (vii)   change the nature of the business or operations of VitalStream
or any of the VitalStream Subsidiaries or enter into or allow any of the
VitalStream Subsidiaries to enter into the ownership, active management or
operation of a line of business other than that line of business in which
VitalStream and the VitalStream Subsidiaries engage as of the date hereof;
PROVIDED, HOWEVER, that VitalStream may continue to employ new technologies and
provide new services which either become commonly employed or provided by, or,
in the good faith judgment of the management of Vital Stream are reasonably
expected to become commonly employed or provided by, Persons engaged in
VitalStream's line of business;

          (viii)  become subject to, or permit any of the VitalStream
Subsidiaries to become subject to (including, without limitation, by way of
amendment to or modification of) any agreement or instrument which by its terms
would (under any circumstances) restrict (a) the right of any of the VitalStream
Subsidiaries to make loans or advances or pay dividends to, transfer property
to, or repay any Indebtedness owed to, VitalStream or any of the VitalStream
Subsidiaries or (b) VitalStream's or any of the VitalStream Subsidiaries' right
to perform the provisions of this Agreement or any of the other Transaction
Agreements (including, without limitation, provisions relating to the payment of
principal and interest on the Convertible Notes);

          (ix)    enter into, amend, modify or supplement, or permit any of the
VitalStream Subsidiaries to enter into, amend, modify or supplement, any
agreement, transaction, commitment or arrangement with any of its or any of the
VitalStream Subsidiaries' officers, directors, employees, stockholders or
Affiliates or with any individual related by blood, marriage or adoption to any
such individual or with any entity in which any such Person or individual owns a
beneficial interest, except for (a) customary employment arrangements bonus and
benefit programs on reasonable and customary terms, (b) any agreement,
amendment, modification or supplement where the amount involved does not exceed
$25,000 per annum or (c) at any time after the date on which the Dolphin
Director becomes a member of the Board of Directors and,

                                       22
<Page>

for so long as any Convertible Notes remain outstanding, continues to be a
member of the Board of Directors, any agreement, amendment, modification or
supplement which is approved in writing, or by the vote at a duly-called meeting
of the Board of Directors, by all of the members of the Board of Directors;

          (x)     except as expressly provided herein or in the Asset Purchase
Agreement, (a) induce or attempt to induce, or permit any of the VitalStream
Subsidiary to induce or attempt to induce, any Holdings Executive Officer to
leave the employ of Holdings or any of its Subsidiaries, (b) hire, employ or
engage, or permit any of the VitalStream Subsidiary to hire, employ or engage,
any Holdings Executive Officer employed or engaged by Holdings or any of its
Subsidiaries, (c) hire, employ or engage, or permit any of the VitalStream
Subsidiary to hire, employ or engage, any Holdings Executive Officer who has
left the employment or engagement of Holdings or any of its Subsidiaries prior
to, on or after the date hereof within two (2) years of the termination of such
Holdings Executive Officer's employment or engagement with Holdings or any of
its Subsidiaries, or (d) in any other way interfere, or permit any of the
VitalStream Subsidiary to in any other way interfere, with the employment
relationship between Holdings and any of its Subsidiaries, on the one hand, and
any Holding's Executive Officer, on the other hand;

          (xi)    increase, or permit any of the VitalStream Subsidiaries to
increase, any compensation (including salary, bonuses and other forms of current
and deferred compensation), payable to any officer or director of VitalStream or
any of the VitalStream Subsidiaries, except where (a) such increase is on
reasonable and customary terms, (b) such increase does not involve an amount in
excess of $25,000, (c) such officer or director is offered and accepts new,
different, or additional employment or responsibilities with VitalStream or any
of the VitalStream Subsidiaries or (d) at any time after the date on which the
Dolphin Director becomes a member of the Board of Directors and, for so long as
any Convertible Notes remain outstanding, continues to be a member of the Board
of Directors, such increase is approved by the unanimous written consent of the
Board of Directors;

          (xii)   establish or acquire, or permit any of the VitalStream
Subsidiaries to establish or acquire, any Subsidiary that is not a Wholly-Owned
Subsidiary, except where such Subsidiary is established or acquired as part of
the formation of a joint venture and such Subsidiary will be consolidated with
VitalStream and the VitalStream Subsidiaries in preparation of the financial
statements of VitalStream and the VitalStream Subsidiaries in accordance with
GAAP and either (a) the pro forma consolidated Average Monthly Cash Flow of such
joint venture entity for the twelve (12) month period immediately following the
execution of a definitive agreement relating to such joint venture (as
determined, (1) at any time prior to the date on which the Dolphin Director has
become a member of the Board of Directors, by Dolphin and (2) at any time after
the date on which the Dolphin Director becomes a member of the Board of
Directors and, for so long as any Convertible Notes remain outstanding,
continues to be a member of the Board of Directors, by the Board of Directors in
its good faith judgment) is greater than $0.00, or (b) at any time after the
date on which the Dolphin Director becomes a member of the Board of Directors
and, for so long as any Convertible Notes remain outstanding, continues to be a
member of the Board of Directors, (1) the establishment or acquisition of such
Subsidiary is approved in writing, or by the vote at a duly-called meeting of
the Board of Directors, by all of the members of the Board of Directors and (2)
the joint venture in connection

                                       23
<Page>

with which such Subsidiary was established or acquired does not, and will not,
require the transfer or contribution by VitalStream or any VitalStream
Subsidiary of any assets (including Cash) to such joint venture;

          (xiii)  except as expressly permitted by the Transaction Agreements
create, incur, assume or suffer to exist (including as a result of the
consummation of an Authorized VitalStream Acquisition Transaction or Authorized
VitalStream Sale Transaction in which VitalStream is not the surviving entity),
or permit any of the VitalStream Subsidiaries to create, incur, assume or suffer
to exist (including as a result of the consummation of an Authorized VitalStream
Acquisition Transaction or Authorized VitalStream Sale Transaction in which such
VitalStream Subsidiary is not the surviving entity), Indebtedness except for (a)
any Indebtedness incurred under capitalized leases entered into in the Ordinary
Course of Business or (b) any Indebtedness incurred under one or more commercial
bank loans or other credit facilities with one or more commercial banking
institutions in an aggregate amount not exceeding $1,000,000 as determined on a
consolidated basis; PROVIDED, THAT, with respect to any Indebtedness described
in clause (b) above, the Indebtedness evidenced by the Convertible Notes ranks
pari passu as to seniority with respect to any Lien granted in any assets of
VitalStream or any VitalStream Subsidiary to secure such Indebtedness (other
than with respect to any Lien granted in the accounts receivable of VitalStream
or any VitalStream Subsidiary after the three-month anniversary of the
Subsequent Closing Date);

          (xiv)   create, incur, assume or suffer to exist, or permit any of the
VitalStream Subsidiaries to create, incur, assume or suffer to exist, any Liens
other than Permitted Liens or Liens incurred in connection with any Indebtedness
permitted to be incurred under SECTION 5C(xiii) of this Agreement;

          (xv)    change its, or permit any VitalStream Subsidiary to change
its, fiscal year to a fiscal year ending on a date other than December 31;

          (xvi)   prepay, or permit any of the VitalStream Subsidiaries to
prepay, any interest on any Indebtedness or prepay, or permit any of the
VitalStream Subsidiaries to prepay, any principal on any Indebtedness; PROVIDED,
HOWEVER, the payment of any Indebtedness of VitalStream or any VitalStream
Subsidiary at the time, and in the amounts, such Indebtedness becomes due and
payable in accordance with the terms of the Debt Security evidencing such
Indebtedness or the repayment in full of all of such Indebtedness with the
proceeds of an issuance of Debt Securities by VitalStream or any VitalStream
Subsidiary shall not require the consent of the holders of the Convertible Notes
under this SECTION 5C(xvi) (notwithstanding the foregoing, for the avoidance of
any doubt, this provision shall not negate the obligation of VitalStream to
obtain the consent of the holders of the Convertible Notes under
SECTION 5C(xiii) of this Agreement);

          (xvii)  amend or modify, or permit any of the VitalStream Subsidiaries
to amend or modify, any stock option plan or employee stock ownership plan as in
existence as of the Initial Closing (or if no Initial Closing has occurred, the
Subsequent Closing), except any amendments or modifications made with the
consent of the majority of the outstanding Common Stock and Underlying Common
Stock (voting together as a single class); adopt, or permit any of the
VitalStream Subsidiaries to adopt, any new stock option plan or employee stock
ownership

                                       24
<Page>

plan or issue, or permit any of the VitalStream Subsidiaries to issue, any
shares of Common Stock to its or any of the VitalStream Subsidiaries' employees,
other than, in each case, (a) options, warrants and other rights to acquire
Common Stock outstanding on the Initial Closing Date, or if the Initial Closing
has not been consummated, the Subsequent Closing Date, (b) shares of Common
Stock issued pursuant to any stock option plan or employee stock ownership plan
in existence as of the Initial Closing (or if no Initial Closing has occurred,
the Subsequent Closing), (c) at any time after the date on which the Dolphin
Director becomes a member of the Board of Directors and, for so long as any
Convertible Notes remain outstanding, continues to be a member of the Board of
Directors, with the approval in writing, or by the vote at a duly-called meeting
of the Board of Directors, by a majority of the members of the Board of
Directors, shares of capital stock issued by VitalStream to its employees for
BONA FIDE capital raising purposes or (d) at any time after the date on which
the Dolphin Director becomes a member of the Board of Directors and, for so long
as any Convertible Notes remain outstanding, continues to be a member of the
Board of Directors, with the approval in writing, or by the vote at a
duly-called meeting of the Board of Directors, by all of the members of the
Board of Directors;

          (xviii) within 60 days of the Subsequent Closing Date, use the
proceeds from the sale of the Convertible Notes and Warrants other than for (a)
working capital and general corporate purposes, (b) the $250,000 payment
contemplated by Section 2(c)(i) of the Asset Purchase Agreement, (c) fees and
expenses, not exceeding $42,500, payable pursuant to SECTION 9A of this
Agreement, (d) legal and accounting fees and expenses, not exceeding $125,000,
of VitalStream's counsel and auditors in connection with the transactions
contemplated by the Asset Purchase Agreement and this Agreement (including
expenses not to exceed $25,000 to be paid in connection with the preparation of
the Hosting Audited Financial Statements (as defined in the Asset Purchase
Agreement)), (e) fees not in excess of $100,000 to be paid to The Seidler
Companies Incorporated, (f) capital expenditures, not exceeding $50,000 for
routers and switches, and (g) any acquisition, merger or Investment (including
expenses and fees) which does not require the approval of the holders of the
Convertible Notes under this SECTION 5C;

          (xix)   except as expressly contemplated by the Asset Purchase
Agreement or the Transaction Agreements, make any amendment to the Articles of
Incorporation or VitalStream's bylaws, or file any resolution of the Board of
Directors with the Nevada Secretary of State containing any provisions, which
would increase the number of authorized shares of the Common Stock or adversely
affect or otherwise impair the rights or the relative preferences and priorities
of the holders of the Convertible Notes, Warrants, Series A Preferred or
Underlying Common Stock under this Agreement, the Articles of Incorporation,
VitalStream's bylaws or the other Transaction Agreements;

          (xx)    except as expressly contemplated by the Transaction
Agreements, authorize, issue or create, or enter into any agreement providing
for the issuance (contingent or otherwise) of, any Equity Securities which are
senior to or on parity with the Series A Preferred with respect to the payment
of dividends, redemptions or distributions upon liquidation or otherwise other
than Equity Securities that are on parity with the Series A Preferred with
respect to the payment of dividends, redemptions or distributions upon
liquidation or otherwise that have terms that are identical to the terms of the
Series A Preferred (other than the conversion price of such Equity Securities);
or

                                       25
<Page>

          (xxi)   issue, or enter into any agreement providing for the issuance
(contingent or otherwise) of, any shares of Series A Preferred other than upon
conversion of the Convertible Notes.

For purposes of this SECTION 5C only, at any time during the period beginning on
the date on which the Dolphin Director becomes a member of the Board of
Directors and ending on the date on which the Dolphin Director is no longer
entitled to be a member of the Board of Directors pursuant to the terms of the
Investor Rights Agreement, if no individual is serving as a member of the Board
of Directors in the capacity of the Dolphin Director, VitalStream shall have the
right to deliver written notice (the "DOLPHIN DIRECTOR NOTICE") to the Dolphin
Holders (as defined in the Investor Rights Agreement) requesting that the
Dolphin Holders designate an individual to nominated as the Dolphin Director. If
the Dolphin Holders do not submit a nominee to serve as the Dolphin Director in
writing to VitalStream within ten (10) business days after receipt by the
Dolphin Holders of the Dolphin Director Notice, then the Dolphin Director shall
be deemed to be a member of the Board of Directors (regardless of whether an
individual is actually serving in such capacity).

          5D.     COMPLIANCE WITH AGREEMENTS. VitalStream shall perform and
observe all of its obligations to each holder of Convertible Notes, Warrants and
Underlying Common Stock as set forth in this Agreement, each of the other
Transaction Agreements, the Convertible Notes and the Warrants.

          5E.     CURRENT PUBLIC INFORMATION. VitalStream shall file all reports
required to be filed by it under the Securities Act and the Securities Exchange
Act and the rules and regulations adopted by the Securities and Exchange
Commission thereunder, and will take such further action as any holder or
holders of Restricted Securities may reasonably request, all to the extent
required to enable such holders to sell Restricted Securities pursuant to (i)
Rule 144 adopted by the Securities and Exchange Commission under the Securities
Act (as such rule may be amended from time to time) or any similar rule or
regulation hereafter adopted by the Securities and Exchange Commission or (ii) a
registration statement on Form S-2 or S-3 or any similar registration form
hereafter adopted by the Securities and Exchange Commission; provided, however,
that the foregoing provision shall not be interpreted to require the VitalStream
to file a registration statement on Form S-2 or S-3 other than as may be
required pursuant to the Registration Agreement. Upon the request of the holders
of a majority of the Underlying Common Stock, VitalStream will deliver to such
holders a written statement as to whether it has complied with such
requirements.

          5F.     INFORMATION RIGHTS. VitalStream shall deliver to Dolphin Fund
II, so long as (a) at any time on or prior to the Subsequent Closing Date, the
Underlying Common Stock constitutes at least one percent of VitalStream's
outstanding Common Stock and (b) at any time following the Subsequent Closing
Date, the Underlying Common Stock constitutes at least three percent of
VitalStream's outstanding Common Stock, each monthly, quarterly and annual
internally prepared financial statement and budget reporting packages delivered
to the Board of Directors.

          5G.     PUBLIC DISCLOSURES. VitalStream shall not disclose any
Purchaser's name or identity as a stockholder of VitalStream in any press
release or other public announcement or

                                       26
<Page>

in any document or material filed with any Governmental Entity,
without the prior written consent of such Purchaser, unless (i) such disclosure
is required by applicable Law, in which case VitalStream shall use its best
efforts to permit Purchaser to review and comment upon the form and substance of
such disclosure, or (ii) such disclosure has previously been reported in any
document or material filed with any Governmental Entity by either VitalStream or
such Purchaser.

          5H.     POST-CLOSING CERTIFICATIONS AND DELIVERIES. Within ten (10)
days of the Subsequent Closing Date, VitalStream shall deliver to each of the
Purchasers a list identifying, as of the Closing Date, each of the stockholders
of record of the Company and the number of shares of Common Stock held by such
stockholders of record, together with a certification executed by an officer of
VitalStream certifying that, except as set forth on such list, there were no
shares of Common Stock issued or outstanding on the Subsequent Closing Date.

          Section 6. NATURE OF RESTRICTED SECURITIES; TRANSFER OF RESTRICTED
SECURITIES; GENERAL TRANSFER PROCEDURE.

          6A.     GENERAL PROVISIONS.

          (i)     Each Purchaser acknowledges and agrees that the Convertible
Notes and Warrants it is purchasing and the Underlying Common Stock are
characterized as "RESTRICTED SECURITIES" under the federal securities Laws
inasmuch as they are being acquired from VitalStream in a transaction not
involving a public offering and that under such Laws such securities may be
resold without registration under the Securities Act only in certain limited
circumstances as set forth in this SECTION 6. In the absence of an effective
registration statement covering such securities or an available exemption from
registration under the Securities Act, the Convertible Notes, Warrants and
Underlying Common Stock must be held indefinitely. In this connection, such
Purchaser represents that it is familiar with SEC Rule 144, as presently in
effect, and understands the resale limitations imposed thereby and by the
Securities Act, including without limitation the Rule 144 condition that current
information about VitalStream be available to the public.

          (ii)    Restricted Securities are transferable only pursuant to (a)
public offerings registered under the Securities Act, (b) Rule 144 or Rule 144A
adopted by the Securities and Exchange Commission under the Securities Act (as
such rules may be amended from time to time) or any similar rule or regulation
hereafter adopted by the Securities and Exchange Commission if the exemption
from registration under such rule is available and (c) subject to the conditions
specified in SECTION 6B below, any other legally available means of transfer.

          (iii)   In addition to the restrictions set forth above, each
Purchaser acknowledges and agrees that the Convertible Notes may only be
transferred in increments of a minimum of $100,000 and $1,000 increments in
excess thereof.

          6B.     OPINION DELIVERY. In connection with the transfer of any
Restricted Securities (other than a transfer described in SECTION 6A(i) or
SECTION 6A(ii) above), the holder thereof shall deliver written notice to
VitalStream describing in reasonable detail the transfer or proposed transfer,
together with an opinion of legal counsel which is knowledgeable in securities

                                       27
<Page>

Law matters to the effect that such transfer of Restricted Securities may be
effected without registration of such Restricted Securities under the Securities
Act. In addition, if the transferring holder delivers to VitalStream an opinion
of such legal counsel that no subsequent transfer of such Restricted Securities
shall require registration under the Securities Act, VitalStream shall promptly
upon such contemplated transfer deliver new certificates for such Restricted
Securities which do not bear the Securities Act legend set forth in
SECTION 9C(ii) of this Agreement. If VitalStream is not required to deliver new
certificates for such Restricted Securities not bearing such legend, the holder
thereof shall not transfer the same until the prospective transferee has
confirmed to VitalStream in writing its agreement to be bound by the Investor
Rights Agreement and the conditions contained in this SECTION 6 and
SECTION 9C(ii) of this Agreement.

          6C.     RULE 144A. Notwithstanding any provision of this Agreement to
the contrary, upon the request of the holders of a majority of the Underlying
Common Stock, VitalStream shall promptly supply to such holders or their
prospective transferees all information regarding VitalStream required to be
delivered in connection with a transfer pursuant to Rule 144A adopted by the
Securities and Exchange Commission under the Securities Act (as such rule may be
amended from time to time) or any similar rule or regulation hereafter adopted
by the Securities and Exchange Commission.

          6D.     LEGEND REMOVAL. If any Restricted Securities become eligible
for sale pursuant to Rule 144(k) adopted by the Securities and Exchange
Commission under the Securities Act (as such rule may be amended from time to
time) or any similar rule or regulation hereafter adopted by the Securities and
Exchange Commission or an effective registration statement under the Securities
Act, VitalStream shall, upon the request of the holder of such Restricted
Securities, remove the legend set forth in SECTION 9C(ii) of this Agreement from
the certificates for such Restricted Securities.

          Section 7. REPRESENTATIONS AND WARRANTIES OF VITALSTREAM. As a
material inducement to the Purchasers to enter into this Agreement and purchase
the Convertible Notes and Warrants hereunder, VitalStream hereby represents and
warrants to each of the Purchasers that the statements contained in this
SECTION 7 are correct and complete as of the date hereof (or on the date as of
which they are made, in the case of any representation or warranty which
specifically relates to an earlier date).

          7A.     APPROVAL AND CONSENTS; AUTHORIZATION; NO BREACH. VitalStream
has full power and authority (including full corporate power and authority) to
execute and deliver this Agreement and each of the other Transaction Agreements
to which it is a party and to perform its obligations hereunder and thereunder.
Without limiting the generality of the foregoing, the execution, delivery and
performance by VitalStream of this Agreement and each of the other Transaction
Agreements to which VitalStream is a party, have been duly authorized by
VitalStream. Each of this Agreement and the other Transaction Agreements to
which VitalStream is a party constitutes a valid and binding obligation of
VitalStream enforceable in accordance with its terms, except as such
enforceability may be limited by (i) applicable insolvency, bankruptcy,
reorganization, moratorium or other similar Laws affecting creditors' rights
generally, and (ii) applicable equitable principles (whether considered in a
proceeding at law or in equity) including those limiting the enforceability of
indemnification provisions. Except as set forth on SCHEDULE 7A attached hereto,
the execution and delivery by VitalStream of

                                       28
<Page>

this Agreement and the other Transaction Agreements to which VitalStream or the
Buyer is a party, and the fulfillment of and compliance with the respective
terms hereof and thereof by VitalStream or the Buyer do not and shall not (i)
conflict with or result in a breach of the terms, conditions or provisions of,
(ii) constitute a default under or result in the violation of, (iii) result in
the creation of any Lien upon the capital stock or assets of VitalStream or any
VitalStream Subsidiary pursuant to, (iv) give any third party the right to
modify, terminate or accelerate any obligation under, or (v) require any
authorization, consent, approval, exemption or other action by or notice or
declaration to, or filing with, any third party or any Governmental Entity
pursuant to, (A) the charter documents or bylaws of VitalStream or any
VitalStream Subsidiary, (B) to the Knowledge of VitalStream, any Law or Legal
Requirement to which VitalStream or any VitalStream Subsidiary is subject, or
(C) to the Knowledge of VitalStream any material agreement, instrument, order,
judgment or decree to which VitalStream or any VitalStream Subsidiary is
subject.

          7B.     CAPITAL STOCK AND RELATED MATTERS.

          (i)     The authorized capital stock of VitalStream shall consist of
(a) 290,000,000 shares of Common Stock, 22,703,719 of which shares of Common
Stock shall be issued and outstanding and (b) 10,000,000 shares of Preferred
Stock, none of which are issued and outstanding. As of the date hereof,
VitalStream does not have outstanding any Equity Securities, except as set forth
on SCHEDULE 7B attached hereto. Except as required by the Articles of
Incorporation, as of each Closing, VitalStream shall not be subject to any
obligation (contingent or otherwise) to repurchase or otherwise acquire or
retire any of its Equity Securities. As of each Closing, all of the outstanding
shares of VitalStream's capital stock shall be validly issued, fully paid and
nonassessable. If the Initial Closing is consummated, immediately following the
Initial Closing, the Common Stock issuable upon the (1) conversion of the
Initial Convertible Notes shall represent 4.4% of the sum of (A) the number of
shares of Common Stock issuable upon conversion of the Initial Convertible Notes
PLUS (B) the number of shares of Fully Diluted Common Stock and (2) exercise of
the Warrants shall represent 18.0% of the sum of (A) the number of shares of
Common Stock issuable upon exercise of the Warrants PLUS (B) the number of
shares of Fully Diluted Common Stock. If the Initial Closing is consummated,
immediately following the Subsequent Closing, the Common Stock issuable upon the
conversion of the Initial Convertible Notes and the Subsequent Convertible Notes
shall represent 13.2% of the sum of (A) the number of shares of Common Stock
issuable upon conversion of the Initial Convertible Notes and the Subsequent
Convertible Notes PLUS (B) the number of shares of Fully Diluted Common Stock.
If the Initial Closing is not consummated, immediately following the Subsequent
Closing, the Common Stock issuable upon the (1) conversion of the Subsequent
Convertible Notes shall represent 13.2% of the sum of (A) the number of shares
of Common Stock issuable upon conversion of the Subsequent Convertible Notes
PLUS (B) the number of shares of Fully Diluted Common Stock and (2) exercise of
the Warrants shall represent 18.0% of the sum of (A) the number of shares of
Common Stock issuable upon exercise of the Warrants PLUS (B) the number of
shares of Fully Diluted Common Stock.

          (ii)    Except as set forth in SCHEDULE 7B attached hereto, (i) as of
the date of the stockholder list attached as part of SCHEDULE 7B attached
hereto, no person owns of record, or to VitalStream's Knowledge is known to own
of record, any Equity Securities of VitalStream or any VitalStream Subsidiary;
(ii) no subscription, warrant, option, convertible security, or other

                                       29
<Page>

right (contingent or other) to purchase or otherwise acquire Equity Securities
of VitalStream or any VitalStream Subsidiary is authorized or outstanding; (iii)
there is no commitment of VitalStream or any VitalStream Subsidiary to issue
shares, subscriptions, warrants, options, convertible securities, or other such
rights (contingent or otherwise) or to distribute to holders of any of its
Equity Securities or Debt Securities any evidence of indebtedness or assets.
Except as provided for in the Articles of Incorporation, or as set forth in
SCHEDULE 7B attached hereto, neither VitalStream nor any VitalStream Subsidiary
has any obligation (contingent or otherwise) to purchase, redeem, or otherwise
acquire any of its Equity Securities or Debt Securities or any interest therein
or to pay any dividend or make any other distribution is respect thereof.
Immediately prior to each Closing, other than the Investor Rights Agreement and
the AKKAD Agreement, there are no voting trusts or agreements, shareholders'
agreements, pledge agreements, buy-sell agreements, rights of first refusal,
preemptive rights or proxies relating to any Debt Securities or Equity
Securities of VitalStream or any VitalStream Subsidiary (whether or not
VitalStream or any VitalStream Subsidiary is a party thereto). All of the
outstanding Debt Securities and Equity Securities of VitalStream and each
VitalStream Subsidiary were issued in compliance with all applicable federal and
state securities Laws.

          (iii)   Other than as set forth in the Investor Rights Agreement,
there are no statutory or contractual stockholders preemptive rights or rights
of refusal with respect to the issuance of the Convertible Notes, Warrants or
Underlying Common Stock. VitalStream has not violated any applicable securities
Laws in connection with the offer, sale or issuance of any of its capital stock,
and (subject to the accuracy of the representations, acknowledgements and
agreements contained in SECTION 9C of this Agreement) the offer, sale and
issuance of the Convertible Notes or Warrants hereunder or the issuance of the
Underlying Common Stock upon conversion of the Notes or exercise of the Warrants
do not require registration under the Securities Act or any applicable state
securities Laws. To VitalStream's Knowledge, other than the Investor Rights
Agreement and the AKKAD Agreement, there are no agreements between VitalStream's
stockholders with respect to the voting or transfer of VitalStream's capital
stock or with respect to any other aspect of VitalStream's affairs other than as
set forth in the Articles of Incorporation.

          7C.     ISSUANCE AND COMMITMENT OF THE CONVERTIBLE NOTES AND WARRANTS.
The issuance, sale and delivery of the Convertible Notes and Warrants in
accordance with this Agreement and the issuance of the Underlying Common Stock
upon conversion of the Convertible Notes and exercise of the Warrants, have
been, or will be on or prior to the Closing, duly authorized by all necessary
corporate action on the part of VitalStream. The Convertible Notes and Warrants,
when so issued, sold and delivered against payment therefor in accordance with
the provisions of this Agreement, will be duly and validly issued, fully paid
and non-assessable, free and clear of all Liens, and not subject to any
preemptive rights. Subject to the accuracy of the representations,
acknowledgements and agreements made by each Purchaser in this Agreement, the
offer and sale of the Convertible Notes and Warrants and the issuance of the
Underlying Common Stock upon conversion of the Convertible Notes and exercise of
the Warrants to each Purchaser will be in compliance with all applicable Laws.

          7D.     INVESTMENT COMPANY. Neither VitalStream nor any of the
VitalStream Subsidiaries is an "investment company" as defined under the
Investment Company Act of 1940.

                                       30
<Page>

          7E.     MARGIN SECURITIES. Neither VitalStream nor any of the
VitalStream Subsidiaries is engaged in the business of extending credit for the
purpose of buying or carrying "margin securities" within the meaning of
Regulations T, U or X promulgated by the Board of Governors of the Federal
Reserve Board, and no part of the proceeds realized from the sale of the
Convertible Notes shall be used to buy or carry any such margin securities or
used in violation of Regulations T, U or X.

          7F.     REPRESENTATIONS AND WARRANTIES OF VITALSTREAM IN THE ASSET
PURCHASE AGREEMENT. The representations and warranties of VitalStream contained
in Section 4 of the Asset Purchase Agreement and all information contained in
any exhibit, schedule or attachment hereto or in any certificate or other
writing delivered by, or on behalf of, VitalStream pursuant to the Asset
Purchase Agreement shall be true, correct and complete in all respects as of the
date hereof (or on the date as of which they are made, in the case of any
representation or warranty which specifically relates to an earlier date).

          Section 8. TERMINATION.

          8A.     TERMINATION OF AGREEMENT.

          (i)     The parties may terminate this Agreement as provided below:

                  (a)  VitalStream and the Purchasers may terminate this
     Agreement by mutual written consent of VitalStream and each of the
     Purchasers at any time prior to the Initial Closing.

                  (b)  Either VitalStream or the Purchasers may terminate this
     Agreement by giving written notice to the non-terminating parties at any
     time prior to the Initial Closing or, if the Initial Closing has not
     occurred, prior to the Subsequent Closing, if the Initial Closing or, if
     the Initial Closing has not occurred, the Subsequent Closing, shall not
     have occurred on or before December 15, 2002.

          (ii)    This Agreement shall terminate immediately upon the
termination of the Asset Purchase Agreement if the Initial Closing or the
Subsequent Closing has not been consummated.

          8B.     EFFECT OF TERMINATION. If any party terminates this Agreement
pursuant to SECTION 8A of this Agreement, all rights and obligations of the
parties hereunder shall terminate without any Liability of any party to the
other party (except for any Liability of any party then in breach).

          Section 9. MISCELLANEOUS.

          9A.     COMMITMENT FEE; EXPENSES.

          (i)     VitalStream shall pay to Dolphin Partners a commitment fee
(the "COMMITMENT FEE") in an amount equal to $25,000 as follows (A) if
VitalStream has elected to consummate the Initial Closing pursuant to
SECTION 2C(i) of this Agreement, one-third of the Commitment Fee shall be paid
at the Initial Closing and the remaining two-thirds of the

                                       31
<Page>

Commitment Fee shall be paid at the Subsequent Closing and (B) if VitalStream
has not elected to consummate the Initial Closing pursuant to SECTION 2C(i) of
this Agreement, the aggregate amount of the Commitment Fee shall be paid in full
at the Subsequent Closing. The Commitment Fee shall be payable in shares of
Common Stock (which shall not be registered under the Securities Act) in an
amount equal to $25,000 DIVIDED BY the Market Price of the Common Stock as
determined as of the day three (3) days prior to the Closing Date at which the
Commitment Fee is to be paid. Notwithstanding the foregoing, if any fractional
interest in a share of Common Stock would be deliverable upon the payment of the
Commitment Fee, VitalStream, in lieu of delivering the fractional share
therefor, shall pay an amount in cash to Dolphin Partners equal to the Market
Price of such fractional interest of Common Stock.

          (ii)    VitalStream shall pay, and hold the Purchasers harmless
against Liability for the payment of, (a) the fees and expenses of their special
counsel arising in connection with their due diligence review of VitalStream,
the negotiation and execution of this Agreement and each of the other
Transaction Agreements (other than the Asset Purchase Agreement) and the
consummation of the transactions contemplated hereby and thereby (provided,
VitalStream shall not be required to pay in excess of $42,500 pursuant to this
SECTION 9A(ii)(a)) and (b) the reasonable fees and expenses incurred with
respect to any amendments or waivers (whether or not the same become effective)
under or in respect of this Agreement or any the other Transaction Agreements
(other than the Asset Purchase Agreement). VitalStream shall pay, and hold each
Purchaser and each holder of a Convertible Note, a Warrant or Underlying Common
Stock harmless against Liability for the payment of, (1) stamp and other taxes
which may be payable in respect of the execution and delivery of this Agreement
or the issuance, delivery or acquisition of any Convertible Notes or Warrants,
any share of Common Stock issuable upon conversion of a Convertible Note or any
share of Common Stock issuable upon exercise of a Warrant, (2) the reasonable
fees and expenses incurred with respect to the enforcement of the rights granted
under this Agreement or any the other Transaction Agreements (other than the
Asset Purchase Agreement), and (3) the reasonable fees and expenses incurred by
each such Person in any filing with any Governmental Entity with respect to its
Investment in VitalStream or in any other filing with any Governmental Entity
with respect to VitalStream which mentions such Person.

          9B.     REMEDIES; SURVIVAL OF REPRESENTATIONS, WARRANTIES AND
COVENANTS; INDEMNIFICATION.

          (i)     Each holder of Convertible Notes, Warrants or Underlying
Common Stock shall have all rights and remedies set forth in this Agreement, and
the other Transaction Agreements for the benefit of each such holder and all
rights and remedies which such holders have been granted at any time under any
other agreement or contract and all of the rights which such holders have under
any Law. Any Person having any rights under any provision of this Agreement or
any other Transaction Agreement shall be entitled to enforce such rights
specifically (without posting a bond or other security), to recover damages by
reason of any breach of any provision of this Agreement or any other Transaction
Agreement and to exercise all other rights granted by Law. The following
indemnification provisions are in addition to, and not in derogation of, any
statutory, equitable, or common law remedy any holder of Convertible Notes,
Warrants or Underlying Common Stock may have for breach of representation,
warranty or covenant with respect to VitalStream or any VitalStream Subsidiary
or the transactions

                                       32
<Page>

contemplated by this Agreement; provided, however, that no provision of this
Agreement shall negate any limitation on remedies as agreed among the parties
to, and set forth in, the Asset Purchase Agreement with respect to any breach of
any provision of the Asset Purchase Agreement.

          (ii)    The representations and warranties set forth in this Agreement
shall survive each Closing (a) with respect to the matters covered by the
representations and warranties contained in SECTION 7A, and SECTION 7B of this
Agreement and Section 4(m), Section 4(o) and Section 4(r) of the Asset Purchase
Agreement, until sixty (60) days after the expiration of all applicable statute
of limitations (including all periods of extension, whether automatic or
permissive) and (b) in the case of all other representations and warranties and
any covenant or agreement contained in this Agreement to be performed on or
prior to a Closing Date, until the date which is eight (8) months after such
Closing Date.

          (iii)   In consideration of each Purchaser's execution and delivery of
this Agreement and acquiring the Convertible Notes and Warrants hereunder and in
addition to all of VitalStream's and the Buyer's other obligations under this
Agreement and the other Transaction Agreements, VitalStream agrees to indemnify
on an after-tax basis and defend, protect and hold harmless each Purchaser and
its Affiliates and each of their respective directors, officers, employees,
stockholders, members, partners, agents (including, without limitation, those
retained in connection with the transactions contemplated by this Agreement),
successors and assigns (collectively, the "INDEMNITEES") from and against any
and all Claims, costs, damages, deficiencies, expenses (including interest,
court costs, fees of attorneys, accountants and other experts or other expenses
of litigation or other proceedings or of any Claim, default or assessment),
fees, fines, Liabilities, losses and penalties (hereinafter individually, a
"LOSS" and collectively, "LOSSES") which, directly or indirectly, arise out of,
result from or relate to (irrespective of whether any such Indemnitee is a party
to the action for which indemnification hereunder is sought): (a) any facts or
circumstances which constitute a misrepresentation or breach by VitalStream or
any VitalStream Subsidiary of any representation, warranty or covenant set forth
in this Agreement (including any annex, exhibit or schedule attached hereto),
any other Transaction Agreement or in any instrument or document delivered by
VitalStream or the Buyer pursuant to this Agreement or (b) any non-fulfillment
or breach of any covenant or agreement of VitalStream or any VitalStream
Subsidiary set forth in this Agreement or any other Transaction Agreement. To
the extent that the foregoing undertakings by VitalStream or the Buyer may be
unenforceable for any reason, VitalStream and the Buyer shall make the maximum
contribution to the payment and satisfaction of the Losses described above
incurred by any Indemnitee which is permissible under applicable Law.

          9C.     PURCHASER'S REPRESENTATIONS; LEGENDS.

          (i)     Purchaser's Representations.

                  (a)  AUTHORIZATION. Each Purchaser hereby represents that it
     has full power and authority to enter into this Agreement and the
     Transaction Agreements, and this Agreement and the Transaction Agreements
     constitute its valid and legally binding obligations, enforceable in
     accordance with their respective terms.

                                       33
<Page>

                  (b)  DISCLOSURE OF INFORMATION. Each Purchaser hereby
     represents that it has received and reviewed the information about
     VitalStream and the VitalStream Subsidiaries that it has requested and
     represents that it has had an opportunity to ask questions and receive
     answers from VitalStream and the Buyer regarding the terms and conditions
     of the offering of the Convertible Notes and Warrants and the business,
     properties, prospects and financial condition of VitalStream and the
     VitalStream Subsidiaries that it has requested. The foregoing, however,
     does not limit or modify the representations and warranties of VitalStream
     and the Buyer in SECTION 7 of this Agreement or the right of the Purchasers
     to rely thereon.

                  (c)  INVESTMENT EXPERIENCE. Each Purchaser hereby represents
     that it is able to fend for itself, can bear the economic risk of its
     Investment and has such knowledge and experience in financial or business
     matters that it is capable of evaluating the merits and risks of the
     Investment in the Convertible Notes, Warrants and Underlying Common Stock.
     If other than an individual, such Purchaser also represents it has not been
     organized for the purpose of acquiring the Convertible Notes, Warrants or
     Underlying Common Stock.

                  (d)  ACCREDITED INVESTOR. Except as set forth on SCHEDULE 9C
     attached hereto, each Purchaser hereby represents that it is an
     "institutional investor," as that term is used in the definition of
     "Dealer" under Section 359-e of the New York Fraudulent Practices Act, as
     presently in effect.

                  (e)  INVESTMENT INTENT; OWN ACCOUNT. Each Purchaser hereby
     represents that it is acquiring the Restricted Securities purchased
     hereunder or acquired pursuant hereto for its own account, not as nominee
     or agent, with the present intention of holding such securities for
     purposes of Investment, and that it has no intention of selling such
     securities in a public distribution in violation of the federal securities
     Laws or any applicable state securities Laws; provided that nothing
     contained herein shall prevent any Purchaser and subsequent holders of
     Restricted Securities from transferring such securities to its Affiliates
     or in compliance with the provisions of SECTION 6 of this Agreement. Each
     Purchaser further represents that such Purchaser does not have
     any contract, undertaking or agreement with any Person to sell, transfer or
     grant participations to such Person or to any other Person with respect to
     the Restricted Securities.

                  (f)  RESIDENCE; DOMICILE. Each Purchaser hereby represents and
     warrants that the principal office of such Purchaser is located at the
     address set forth with respect to such Purchaser on ANNEX 1 attached
     hereto.

                  (g)  OWNERSHIP OF VITALSTREAM. Dolphin Fund II hereby
     represents and warrants that, as of the date hereof, Dolphin Fund II and
     its Affiliates, together with each of Holdings, Networks and Hosting and
     each of their respective Affiliates own less than 5% of the outstanding
     Common Stock in the aggregate.

          (ii)    LEGENDS. Each certificate or instrument representing
Restricted Securities shall be imprinted with a legend in substantially the
following form:

                                       34
<Page>

     "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 AN
     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."

          9D.     ENTIRE AGREEMENT. This Agreement, the other Transaction
Agreements and the other agreements and instruments referred to herein and
therein contain the entire agreement between the parties hereto and supersede
any prior understandings, agreements or representations by or between the
parties hereto, written or oral, which may have related to the subject matter
hereof in any way.

          9E.     SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
herein or therein, all covenants and agreements contained in this Agreement or
any other Transaction Agreement by or on behalf of any of the parties hereto
shall bind and inure to the benefit of the respective successors and assigns of
the parties hereto whether so expressed or not. In addition, and whether or not
any express assignment has been made, the provisions of this Agreement or any
other Transaction Agreement which are for any Purchaser's benefit as a purchaser
or holder of Convertible Notes, Warrants or Underlying Common Stock are also for
the benefit of, and

                                       35
<Page>

enforceable by, any subsequent holder of such Convertible Notes, Warrants or
Underlying Common Stock.

          9F.     COUNTERPARTS. This Agreement or any other Transaction
Agreement may be executed simultaneously in two or more counterparts, any one of
which need not contain the signatures of more than one party, but all such
counterparts taken together shall constitute one and the same agreement.

          9G.     DESCRIPTIVE HEADINGS; INTERPRETATION. Section headings used in
this Agreement or in any other Transaction Agreement are for convenience only
and are not to affect the construction of, or to be taken into consideration in
interpreting, such agreement. The use of the word "INCLUDING" or any variation
or derivative thereof in this Agreement or in any other Transaction Agreement is
by way of example rather than by limitation.

          9H.     NOTICES; BUSINESS DAYS. All notices, demands or other
communications to be given or delivered under or by reason of the provisions of
this Agreement or any other Transaction Agreement 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) each Purchaser at the address indicated for such Purchaser on
ANNEX 1 attached hereto, (ii) any other holder of a Convertible Note, Warrant or
Underlying Common Stock at the address set forth in VitalStream's records and
(iii) VitalStream at the address indicated below:

                       One Jenner, Suite 100
                       Irvine, California 92618
                       Facsimile:  (949) 453-8686
                       Attention:  Philip N. Kaplan, Chief Operating Officer

                       with a copy (which shall not constitute notice to
                        VitalStream) 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. If 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 (any other day being a "BUSINESS DAY"), such time period shall
automatically be extended to, the next business day immediately following such
Saturday, Sunday or legal holiday.

                                       36
<Page>

          9I.     CONSENT TO AMENDMENTS AND WAIVERS. Except as otherwise
provided herein, no modification, amendment or waiver of any provision of this
Agreement shall be effective against VitalStream or the holders of the
Convertible Notes, Warrants or Underlying Common Stock unless such modification,
amendment or waiver is approved in writing by (i) VitalStream, in the case of
any amendment, modification or waiver affecting the rights and interests
VitalStream, (ii) in the case of any amendment, modification or waiver affecting
the rights and interests of the holders of the Initial Convertible Notes,
Warrants or Underlying Common Stock under this Agreement, the holders of a
majority of the Underlying Common Stock with respect to such Initial Convertible
Notes, Warrants or Underlying Common Stock and (iii) in the case of any
amendment, modification or waiver affecting the rights and interests of any
holder of Subsequent Convertible Notes or any Person listed on ANNEX 1 as
obligated to purchase Subsequent Convertible Notes, the holders of a majority of
the Underlying Common Stock with respect to such Subsequent Convertible Notes.
Notwithstanding the foregoing, without the consent of any other Person,
VitalStream may restate ANNEX 1 attached hereto to (a) add additional Persons
who purchase Convertible Notes hereunder and execute and deliver a counterpart
signature page to this Agreement or (b) change the addresses for notice to any
Person at such Person's request. No other course of dealing between VitalStream
and the holder of any Convertible Notes, Warrants or Underlying Common Stock or
any delay in exercising any rights under this Agreement or any of the other
Transaction Agreements shall operate as a waiver of any rights of any such
holder. For purposes of this Agreement, Convertible Notes, Warrants or
Underlying Common Stock held by VitalStream or any of the VitalStream
Subsidiaries shall not be deemed to be outstanding.

          9J.     SEVERABILITY. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable Law, but if any provision of this Agreement or any other Transaction
Agreement is held to be prohibited by or invalid under applicable Law, such
provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of this Agreement or such other
Agreement.

          9K.     NO STRICT CONSTRUCTION. The parties hereto have participated
jointly in the negotiation and drafting of this Agreement and the other
Transaction Agreements. In the event an ambiguity or question of intent or
interpretation arises, this Agreement and the other Transaction Agreements shall
be construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Agreement or any other Transaction
Agreement. Any reference to any federal, state, local, or foreign Law shall be
deemed also to refer to all rules and regulations promulgated thereunder, unless
the context requires otherwise. Nothing in the schedules attached hereto (or, as
applicable, to the Asset Purchase Agreement) shall be deemed adequate to
disclose an exception to a representation or warranty made herein unless the
schedule attached hereto identifies the exception with particularity and
describes the relevant facts in detail. Without limiting the generality of the
foregoing, the mere listing (or inclusion of a copy) of a document or other item
shall not be deemed adequate to disclose an exception to a representation or
warranty made herein (unless the representation or warranty has to do with the
existence of the document or other item itself). The parties hereto intend that
each representation, warranty, and covenant contained herein shall have
independent significance. If any party hereto has breached any representation,
warranty, or covenant contained herein in any

                                       37
<Page>

respect, the fact that there exists another representation, warranty, or
covenant relating to the same subject matter (regardless of the relative levels
of specificity) which such party has not breached shall not detract from or
mitigate the fact that such party is in breach of the first representation,
warranty, or covenant.

          9L.     INCORPORATION OF ANNEXES, SCHEDULES AND EXHIBITS. The annexes,
schedules and exhibits identified in this Agreement are incorporated herein by
reference and made a part hereof.

          9M.     REGISTERED HOLDERS; OWNERSHIP. As used in this Agreement and
each of the other Transaction Agreements, references to a "HOLDER" of
Convertible Notes, Warrants or Underlying Common Stock shall mean the registered
holder of such Convertible Notes, Warrants or Underlying Common Stock as set
forth in VitalStream's records. For purposes of this Agreement and each of the
other Transaction Agreements, all holdings of Convertible Note, Warrants and
Underlying Common Stock by Persons who are Affiliates of each other shall be
aggregated for purposes of meeting any threshold tests under this Agreement and
each of the other Transaction Agreements.

          9N.     CONSIDERATION FOR WARRANTS AND NOTES. The Purchasers and
VitalStream acknowledge and agree that (i) the fair market value of all of the
Warrants (the "AGGREGATE WARRANT VALUE") issued hereunder shall be an amount
equal to the product of is (a) $0.055 MULTIPLIED BY (b) the aggregate Warrant
Share Amount (as defined in the Warrant) and (ii) the fair market value of all
of the Convertible Notes issued hereunder is $1,100,000 MINUS the Aggregate
Warrant Value. Each Purchaser and VitalStream shall file their respective
federal, state and local Tax returns in a manner which is consistent with such
valuation and allocation and shall not take any contrary position with any
Taxing authority.

          9O.     UNDERSTANDING AMONG THE PURCHASERS. The determination of each
Purchaser to purchase the Convertible Notes and Warrants pursuant to this
Agreement has been made by such Purchaser independent of any other Purchaser and
independent of any statements or opinions as to the advisability of such
purchase or as to the properties, business, prospects or condition (financial or
otherwise) of VitalStream and the VitalStream Subsidiaries which may have been
made or given by any other Purchaser or by any agent or employee of any other
Purchaser.

          9P.     GOVERNING LAW. TO THE EXTENT APPLICABLE, THE CORPORATE LAW OF
THE STATE OF NEVADA SHALL GOVERN ALL ISSUES AND QUESTIONS CONCERNING THE
RELATIVE RIGHTS AND OBLIGATIONS OF VITALSTREAM AND ITS SECURITYHOLDERS. ALL
OTHER ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT
AND INTERPRETATION OF THIS AGREEMENT AND ANY OF THE OTHER TRANSACTION AGREEMENTS
AND THE ANNEXES, EXHIBITS AND SCHEDULES HERETO AND THERETO 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

                                       38
<Page>

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 AGREEMENT AND EACH OF THE OTHER
TRANSACTION AGREEMENTS (AND ALL ANNEXES, SCHEDULES AND EXHIBITS HERETO AND
THERETO), EVEN THOUGH UNDER THAT JURISDICTION'S CHOICE OF LAW OR CONFLICT OF LAW
ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

          9Q.     JURISDICTION AND VENUE. ALL JUDICIAL PROCEEDINGS BROUGHT
AGAINST VITALSTREAM WITH RESPECT TO THIS AGREEMENT OR ANY OTHER TRANSACTION
AGREEMENT MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION
IN NEW YORK CITY, NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT AND THE
OTHER TRANSACTION AGREEMENTS TO WHICH THEY ARE A PARTY, VITALSTREAM AND EACH
HOLDER OF CONVERTIBLE NOTES, WARRANTS OR UNDERLYING COMMON STOCK, 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 AGREEMENT OR ANY OF THE OTHER
TRANSACTION AGREEMENTS. VITALSTREAM AND EACH HOLDER OF CONVERTIBLE NOTES,
WARRANTS OR UNDERLYING COMMON STOCK HEREBY WAIVE ANY CLAIM THAT NEW YORK CITY,
NEW YORK IS AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED ON LACK OF VENUE.

          9R.     WAIVER OF RIGHT TO JURY TRIAL. VITALSTREAM AND EACH HOLDER OF
CONVERTIBLE NOTES, WARRANTS OR UNDERLYING COMMON STOCK HEREBY WAIVE, 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 Agreement or any of
the other Transaction Agreements or the validity, protection, interpretation,
collection or enforcement hereof or thereof; AND VITALSTREAM HEREBY WAIVES, TO
THE EXTENT PERMITTED BY APPLICABLE LAW, THE RIGHT TO INTERPOSE ANY SETOFF in
connection with any such litigation, irrespective of the nature of such setoff
except to the extent that the failure so to assert any such setoff would
permanently preclude the prosecution of or recovery upon same. VITALSTREAM
AGREES THAT THIS SECTION 9R IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT
AND EACH OF THE OTHER TRANSACTION AGREEMENTS AND ACKNOWLEDGES THAT EACH HOLDER
OF CONVERTIBLE NOTES, WARRANTS OR UNDERLYING COMMON STOCK WOULD NOT HAVE ENTERED
INTO THIS AGREEMENT OR MADE AN INVESTMENT HEREUNDER IF THIS SECTION 9R WERE NOT
PART OF THIS AGREEMENT AND THE OTHER TRANSACTION AGREEMENTS.

                                       39
<Page>

          IN WITNESS WHEREOF, the parties have executed this Convertible Note
and Warrant Purchase Agreement as of the date first written above.

                           COMPANY:

                           VITALSTREAM HOLDINGS, INC.

                           By: /s/ Paul Summers
                              -------------------------------------------------
                              Name: Paul Summers
                              Title: President and Chief Executive Officer

                           PURCHASERS:

                           DOLPHIN COMMUNICATIONS FUND II, L.P.

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

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

                                 By:  /s/ Richard J. Brekka
                                    -------------------------------------------
                                    Name: Richard J. Brekka
                                    Title: President

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

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

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

                                 By:  /s/ Richard J. Brekka
                                    -------------------------------------------
                                    Name: Richard J. Brekka
                                    Title: President

<Page>

                                     ANNEX 1
                             SCHEDULE OF PURCHASERS

<Table>
<Caption>
                                                  PRO RATA SHARE OF
                                                 INITIAL CONVERTIBLE
NAMES AND ADDRESSES                                     NOTES
----------------------------------------------   -------------------
                                                    <C>
1.   Dolphin Communications Fund II, L.P.               89.9%
     750 Lexington Avenue
     16th Floor
     New York, NY 10022
     Attention: Mr. Richard J. Brekka
     Facsimile: (212) 446-4900

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

     Kirkland & Ellis
     Citigroup Center
     153 East 53rd Street
     New York, NY 10022
     Attention: John Kuehn, Esq.
     Facsimile: (212) 446-4900

2.   Dolphin Communications Parallel                    10.1%
      Fund II (Netherlands), L.P.
     750 Lexington Avenue
     16th Floor
     New York, NY 10022
     Attention: Mr. Richard J. Brekka
     Facsimile: (212) 446-4900

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

     Kirkland & Ellis
     Citigroup Center
     153 East 53rd Street
     New York, NY 10022
     Attention: John Kuehn, Esq.
     Facsimile: (212) 446-4900

                                                 -------------------
          TOTAL                                        100.0%
</Table>

<Page>

                                   SCHEDULE 7A

                              APPROVAL AND CONSENTS

<Page>

                                   SCHEDULE 7B

                        CAPITAL STOCK AND RELATED MATTERS

<Page>

                                   SCHEDULE 9C

                              ACCREDITED INVESTORS

     1.   Dolphin Communications Parallel Fund II (Netherlands), L.P.

                                       44
<Page>

                                    EXHIBIT A

                                FORM OF GUARANTY

<Page>

                                    EXHIBIT B

                            FORM OF CONVERTIBLE NOTE

<Page>

                                    EXHIBIT C

                        FORM OF INVESTOR RIGHTS AGREEMENT

<Page>

                                    EXHIBIT D

                         FORM OF REGISTRATION AGREEMENT

<Page>

                                    EXHIBIT E

                       FORM OF VITALSTREAM COUNSEL OPINION

<Page>

                                    EXHIBIT F

                                 FORM OF WARRANT

<Page>

                                    EXHIBIT G

                       FORM OF CERTIFICATE OF DESIGNATION

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"}]]