Document:

<PAGE>

                                                                    EXHIBIT 10.8

Note: Information in this document marked with an "[*]" has been omitted and
filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions.

                              iBEAM and Microsoft
                   Broadband Streaming Initiative Agreement

     This Broadband Streaming Initiative Agreement (the "Agreement") is entered
into and effective as of September 20, 1999 (the "Effective Date") by and
between Microsoft Corporation, a Washington corporation located at One Microsoft
Way, Redmond, WA 98052 ("Microsoft") and iBEAM Broadcasting Corporation, a
Delaware Corporation located at 645 Almanor Avenue, Sunnyvale, CA 94086
("iBEAM").

                                   Recitals

iBEAM is an application service provider capable of delivering Internet-related
broadband multimedia applications and services for independent content providers
and corporate customers (referred to collectively as "ICPs"), including
competitively priced hosting and broadcasting services for live and on-demand
broadband Streaming Media.

Microsoft is a developer of operating system technologies and tools for the
development and serving of broadband multimedia applications and content,
including Streaming Media.

Microsoft has established a "Broadband Streaming Initiative," whereby Microsoft
desires to promote adoption of Windows Media Technologies ("WMT") for broadband
multimedia applications on the Internet.

Microsoft wishes to engage iBEAM as, and iBEAM wishes to become, a supplier and
promoter of broadband multimedia applications and services in connection with
Microsoft's upcoming Broadband Streaming Initiative.

                                   Agreement

     This Agreement is entered into with reference to the following information
("Initial Definitions Table") as well as the definitions set forth below:

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------
<S>                                          <C>
iBEAM Information:                           Corporate Name:  iBEAM Broadcasting Corporation
                                             Place of Incorporation: Delaware
                                             Address for Notices:  645 Almanor Avenue, Suite 100,
                                             Sunnyvale, CA  94086
-----------------------------------------------------------------------------------------------------
iBEAM Contact:                               iBEAM Contact/Title: Chris Dier, CFO
                                             Telephone Number:  (408) 523-1603
                                             Facsimile Number:  (408) 730-8937
                                             Email: cdier@ibeam.com
-----------------------------------------------------------------------------------------------------
iBEAM Name and iBEAM Service Name(s)         iBEAM Name:   iBEAM Broadcasting
(for use in press release):                  iBEAM Service Name(s):  DirectCast
-----------------------------------------------------------------------------------------------------
</TABLE>

                   Microsoft Confidential & Proprietary             Page 1 of 9
<PAGE>

<TABLE>
-----------------------------------------------------------------------------------------------------
<S>                                          <C>
iBEAM Web Site:                              www.ibeam.com and any successors and additional and/or
                                             new versions of a web site owned or controlled by iBEAM
                                             during the Term.
-----------------------------------------------------------------------------------------------------
Term:                                        Beginning as of the Effective Date and continuing
                                             through September 30, 2002 unless earlier terminated in
                                             accordance with Section 9.
-----------------------------------------------------------------------------------------------------
</TABLE>

1.    Definitions

1.1   Above the fold means the placement of Content (including an icon and/or
      link) or other material on an iBEAM Web Site Page such that the material
      is viewable on a computer screen at a 800 x 600 pixels resolution when the
      user first accesses such web page and without having to scroll down to
      view more of the web page.

1.2    Broadband Streaming Initiative ICP Participant means an ICP or other
       customer designated by Microsoft in its sole discretion (including
       without limitation Microsoft or any of its affiliates) to use Network
       Credits in support of the Broadband Streaming Initiative as contemplated
       by this Agreement.

1.3    Confidential Information means: (i) any source code of software disclosed
       by either party to the other party; (ii) any trade secrets and/or other
       proprietary non-public information not generally known relating to either
       party's product plans, designs, costs, prices or names, finances,
       marketing plans, business opportunities, personnel, research, development
       or know-how; and (iii) the terms and conditions of this Agreement.
       "Confidential Information" does not include information that: (i) is or
       becomes generally known or available by publication, commercial use or
       otherwise through no fault of the receiving party; (ii) is known and has
       been reduced to tangible form by the receiving party prior to the time of
       disclosure and is not subject to restriction; (iii) is independently
       developed by the receiving party without the use of the other party's
       Confidential Information; (iv) is lawfully obtained from a third party
       that has the right to make such disclosure; or (v) is made generally
       available by the disclosing party without restriction on disclosure.

1.4    Content means data, text, audio, video, graphics, photographs, artwork
       and other technology and materials.

1.5    iBEAM Services means the provision of hosting, serving, broadcasting,
       and/or other applications and services involving "live" and "on-demand"
       broadband Streaming Media for third parties.

1.6    iBEAM Services Guidelines means the guidelines and procedures related to
       this Agreement with respect to how iBEAM will be engaged by Broadband
       Streaming Initiative ICP Participants to provide iBEAM Services to such
       customers and will apply Network Credits against such provision of
       services, as more fully described in Exhibit A.

1.7    Microsoft Software means Windows NT Server (including Windows Media
       Streaming Media and Site Server 3.0) and direct successors thereto.

1.8    Network Credits means credits available to pay for iBEAM Services which
       credits are equal in value to the Network Credits Fee Amount having been
       paid by Microsoft from time to time during the Term, less amounts having
       been applied pursuant to this

                   Microsoft Confidential & Proprietary                   Page 2
<PAGE>

       Agreement to reflect the provision of iBEAM Services to Broadband
       Streaming Initiative Participants, as further set forth in Section 2.1
       and Exhibit A.

1.9    Streaming Media means multimedia Content that is transmitted live or held
       in archive on servers and played or displayed via the Web incrementally,
       or in semi-real time, such that it can be heard, viewed or received by an
       end user with minimal download delays, if any.

1.10   Updates means, as to any Microsoft software, all subsequent public
       releases thereof during the Term, including public maintenance releases,
       error corrections, upgrades, enhancements, additions, improvements,
       extensions, modifications and successor versions.

1.11   Windows Media Format means (a) the Windows Media Audio format which
       encodes files with the Microsoft Audio codec (.wma extension), (b) the
       proposed industry standard format referred to as the "Advanced Streaming
       Format" (.asf extension), which as of the Effective Date is in
       comment/revision processes within industry standards bodies, and (c) any
       successors or replacements for such formats that may be designated by
       Microsoft, regardless of the brand or trademark under which they are made
       available from time to time.

1.12   Windows Media Player means the North American English version of the
       upgrade to the Windows 95 and Windows 98 Microsoft Windows Media Player
       client technology that displays Streaming Media in Windows Media Format,
       other formats of Streaming Media, and other multimedia data-types, and
       all successors and Updates to such technology which are commercially
       released during the Term.

1.13   Windows Media Technologies or "WMT" means, collectively and
       interchangeably, Windows Media Player and Windows Media Streaming Media
       services for the Windows NT operating system.

All other initially capitalized terms shall have the meanings assigned to them
in this Agreement.

2.     Microsoft Obligations

2.1    Network Credits Fee. Microsoft agrees to pay to iBEAM a Network Credits
       Fee Amount of Five Hundred Thousand Dollars ($500,000.00), which fee will
       pre-pay for iBEAM web hosting services and other iBEAM Services which
       Microsoft may then use in accordance with this Agreement either for
       Microsoft's internal operations or for the benefit of Broadband Streaming
       Initiative ICP Participants or iBEAM customers. Microsoft will pay the
       Network Credits Fee Amount of Five Hundred Thousand Dollars ($500,000.00)
       in accordance with the following schedule: (a) Three Hundred Thousand
       Dollars ($300,000.00) after iBEAM delivers an invoice for such amount to
       Microsoft, which invoice iBEAM may deliver on or after the Effective
       Date; (b) One Hundred Thousand Dollars ($100,000.00) on January 15, 2000,
       and (c) One Hundred Thousand Dollars ($100,000.00) on April 15, 2000. All
       amounts payable under this Agreement shall be due on a net thirty (30)
       day basis. Such fees shall be refundable by iBEAM to Microsoft only to
       the extent set forth in Section 9.

2.2    Deployment Support. During the Term, and at no charge to iBEAM, Microsoft
       shall provide high-level technical support in the United States from
       Microsoft's developer relations group or product support group in order
       to assist iBEAM with carrying out its obligations under this Agreement
       (with Microsoft selecting in its discretion which of these groups will
       provide support). Such support shall include providing reasonable on-site
       deployment support services to iBEAM, provided that Microsoft shall be
       entitled to charge iBEAM at its then-current rates for any such on-site

                   Microsoft Confidential & Proprietary                   Page 3
<PAGE>

       deployment support services which exceed a cumulative total of [*]
       person-weeks (i.e., a total of [*] hours).

2.3    Promotion of iBEAM's Services. In conjunction with its Broadband
       Streaming Initiative, Microsoft agrees to publicly announce that iBEAM is
       a Microsoft recommended solution provider for ICPs who are using WMT to
       run high bandwidth Streaming Media applications in a manner commercially
       similar to the level of promotion provided to the other application
       service providers who are Broadband Streaming Initiative Participants.
       Thereafter, during the Term, Microsoft will use commercially reasonable,
       good faith efforts to include and promote iBEAM as a provider of hosting
       and other applications and services related to Streaming Media, including
       without limitation as part of Microsoft's applicable marketing efforts
       and materials, sales training, Web sites, and other promotions,
       consistent with Microsoft's promotion of other Broadband Streaming
       Initiative application service providers which have entered into
       agreements with Microsoft on similar terms to this Agreement.

2.4    Early Releases. During the Term, Microsoft will provide to iBEAM, at no
       charge, successive pre-commercial releases (beta, and where practical as
       determined by Microsoft in its sole discretion, pre-beta) of Microsoft
       Software in object code form; provided, however, that nothing herein
       shall be deemed to require that Microsoft release any additional versions
       of the Microsoft Software during the Term. Any Microsoft Software
       provided hereunder may be used by iBEAM only in accordance with the
       confidentiality and license agreements accompanying such Microsoft
       Software and, in addition, may be used solely in connection with
       supporting the provision of iBEAM Services that use Windows Media
       Technologies. iBEAM understands that pre-release software is not intended
       for full scale commercial use.

2.5    Preconditions for Microsoft Sponsorship and Support Obligations. Each of
       Microsoft's obligations under this Section 2 is expressly conditioned
       upon iBEAM's performance of its obligations under Sections 3.1 through
       3.5 throughout the Term. In addition, because iBEAM has not fully
       formulated and shared with Microsoft its plans for the iBEAM Services as
       of the Effective Date, iBEAM agrees to confer in good faith with
       Microsoft promptly after the Effective Date in order to develop and set
       forth in writing, no later than ninety (90) days after the Effective
       Date, mutually approved performance objectives (the "Performance
       Criteria") for iBEAM's participation in the Broadband Streaming
       Initiative during the first two (2) years of the Term. If Microsoft
       reasonably believes that iBEAM has not met or exceeded such Performance
       Criteria during the first fifteen (15) months of the Term, then Microsoft
       may notify iBEAM of such determination by providing a written notice
       identifying the specific Performance Criteria which iBEAM has not met,
       provided that Microsoft must issue any such notice within ninety (90)
       days after the fifteen (15) month anniversary of the Effective Date. If,
       after receiving such a notice, iBEAM does not improve its performance
       such that it meets the Performance Criteria within sixty (60) days after
       receiving Microsoft's written notice hereunder, then Microsoft may in its
       discretion terminate this Agreement effective thirty (30) days after
       Microsoft provides written notice to iBEAM of such termination.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
                   Microsoft Confidential & Proprietary                   Page 4

<PAGE>

2.6    Digital Rights Management Application. To assist iBEAM in conducting an
       evaluation of Microsoft's Digital Rights Management applications ("DRM")
       in connection with iBEAM's services and applications related to Streaming
       Media, Microsoft agrees to provide iBEAM with reasonable access to
       applicable beta programs and other information on applicable new
       technologies and technical support offerings, subject to Microsoft's
       applicable confidentiality and license agreements.

2.7    Account Introductions. Microsoft agrees to use commercially reasonable
       efforts during the first ninety (90) days after the Effective Date to
       provide, on a non-exclusive basis, introductions to existing Microsoft
       account contacts in order to assist iBEAM's efforts to make initial
       presentations to selected Broadband Streaming Initiative ICP Participants
       and appropriate ISPs with respect to participation in the Broadband
       Streaming Initiative. The following is a preliminary list of anticipated
       accounts as to which Microsoft agrees, if and only to the extent it has
       appropriate existing contacts at such accounts as of the Effective Date,
       to use commercially reasonable efforts to introduce iBEAM to, in
       accordance with the foregoing sentence: [*].

2.8    International Marketing. Microsoft agrees to use commercially reasonable
       efforts to provide senior iBEAM managers with reasonable access (subject
       to availability) to Microsoft's applicable senior international managers
       in order to provide advice on entering international markets in
       connection with the Broadband Streaming Initiative. Microsoft agrees to
       make commercially reasonable efforts to help iBEAM identify and make
       initial executive level presentations to a mutually agreed list of tier
       one international accounts.

2.9    Reservation of Rights. Except as expressly licensed pursuant to this
       Agreement, iBEAM shall have no other rights in the Microsoft Software,
       the Windows Media Player or any other Microsoft software, technology or
       service provided to iBEAM hereunder. Microsoft retains all right, title
       and interest in and to the Microsoft Software, the Windows Media Player
       and any other Microsoft software, technologies and services. Nothing in
       this Agreement shall be construed, by implication, estoppel or otherwise,
       as granting iBEAM any rights to any Microsoft software, technology,
       service or other intellectual property rights.

3      iBEAM Obligations

3.1    Use and Promotion of Windows Media Technologies. Subject to Window Media
       Technologies being a competitively comparable solution to other Streaming
       Media technologies (as reasonably determined by iBEAM in good faith based
       on technology, price, quality and delivery timetables), throughout the
       Term, including without limitation as part of iBEAM's full services
       product launch, iBEAM will deploy, describe and promote Microsoft's WMT
       platform and formats to prospective and actual customers [*] iBEAM may
       also deploy, describe and promote other Streaming Media platforms or
       formats. iBEAM agrees to hold its full services platform launch within
       fifteen (15) days after Microsoft's initial public announcement of its
       Broadband Streaming Initiative.

       iBEAM's use and promotion of Windows Media Technologies shall further
       include, without limitation:

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                   Microsoft Confidential & Proprietary                   Page 5

<PAGE>

   (a) Content Format. Within thirty (30) days after the Effective Date, and
       continuing thereafter throughout the Term, all Streaming Media available
       on the iBEAM Web Site shall be made available in Windows Media Format;
       provided, however, that nothing herein shall be deemed to prevent iBEAM
       from making Streaming Media available on such Web site in other formats.

   (b) Deployment of New Applications and Services. Throughout the Term, iBEAM
       will promote and make available to its customers all new applications and
       services related to Streaming Media on WMT platforms and in Windows Media
       Format concurrently with or sooner than iBEAM makes such new applications
       and services available based on or in conjunction with other Streaming
       Media technologies or formats, subject to the limitation that iBEAM's
       obligations hereunder with respect to release schedule parity are subject
       to Microsoft's providing comparable competitive offerings to other
       commercially available offerings in the area of Streaming Media
       technology or formats (as applicable) during the Term.

   (c) Sponsorship. Beginning on the Effective Date and continuing thereafter
       throughout the Term, iBEAM shall include on all pages of the iBEAM Web
       Site pages that relate to or contain Streaming Media or applications
       therefor a prominent "Get Windows Media Player" link logo (the "Windows
       Media Sponsorship Notice") which links to a Microsoft-authorized Windows
       Media Player download site, in accordance with the following terms:

       (i)     The Windows Media Sponsorship Notice shall appear prominently and
               Above the fold on each iBEAM Web Site page that contains or
               provides access to Streaming Media or that materially focuses on
               any iBEAM Service.

       (ii)    On all pages of the iBEAM Web Site, including without limitation
               those described in Section 3.1(c)(i), in the event iBEAM includes
               any information or notices concerning Streaming Media
               technologies or formats other than Windows Media Technologies and
               Windows Media Format, the Windows Media Sponsorship Notice shall
               appear on such page in a position at least as favorable in
               prominence, size and positioning as any other such notice.

       (iii)   In all cases, the Windows Media Sponsorship Notice shall be a
               minimum of 65 by 57 pixels (width by height), and shall conform
               to all trademark usage standards provided by Microsoft to iBEAM
               from time to time.

       (iv)    Microsoft shall be entitled to substitute a different hypertext
               link and/or link logo as the Windows Media Sponsorship Notice,
               subject to the same pixel size restrictions as are set forth in
               Section 3.1(c)(iii), in place of the "Get Windows Media Player"
               link logo for purposes of this Agreement, including without
               limitation iBEAM's responsibilities under this Section 3.1(c),
               upon Microsoft's reasonable advance written notice to iBEAM.

   (d) Additional Promotions. Microsoft and iBEAM will cooperate in good faith
       to identify and pursue additional opportunities for promotion of Windows
       Media Technologies in conjunction with the iBEAM Services to U.S.- based
       ICPs in the

                   Microsoft Confidential & Proprietary                   Page 6
<PAGE>

       [*].

   (e) Uses of the Get Windows Media Player Logo. All use by iBEAM of the "Get
       Windows Media Player" link logo (or any successor logo(s)) in connection
       with this Agreement is subject to compliance with Microsoft's guidelines
       relating to the use of such logo(s). The current version of such
       guidelines as of the Effective Date is set forth in Exhibit B hereto.

3.2  Provision of iBEAM Services to Broadband Streaming Initiative ICP
     Participants.

   (a) iBEAM agrees to provide six (6) months of iBEAM Services, to be comprised
       of broadband Streaming Media hosting, distribution and broadcasting
       services, at no charge (either to Microsoft or the ICP, and without
       applying Network Credits against the value of such services) to each
       Broadband Streaming Initiative ICP Participant that Microsoft designates
       in its discretion as a participant in the Broadband Streaming Initiative;
       provided, however, that such obligation shall not extend beyond the Term
       of this Agreement, and the value of such no-charge services in the
       aggregate for Broadband Streaming Initiative ICPs will not exceed Two
       Hundred Thousand Dollars ($200,000.00) as calculated using the rates
       described in Exhibit A. iBEAM will use commercially reasonable efforts to
       notify Microsoft in writing at least sixty (60) days before it
       anticipates exceeding the foregoing maximum value of the relevant iBEAM
       Services.

   (b) At Microsoft's request and at no charge to Microsoft or the applicable
       Internet Service Providers ("ISPs") and without applying Network Credits
       against the value of such services. iBEAM will install copies of the
       Microsoft Software and provide its standard level of customer service for
       such software during the Term in order to support ISPs which Microsoft
       has designated in its discretion to participate in the Broadband
       Streaming Initiative. In performing the foregoing obligations, iBeam
       shall maintain and comply with separate written agreements with Microsoft
       and/or its licensees with respect to installation and support of the
       Microsoft Software, and nothing in this Agreement shall be deemed to
       authorize iBeam to install and/or support such copies of the Microsoft
       Software.

   (c) In addition to the obligations of iBEAM under Sections 3.2(a) and (b),
       Microsoft shall be entitled to apply its prepaid Network Credits and
       thereby obtain iBEAM Services for the benefit of designated ICP
       Participants in accordance with this Agreement (including without
       limitation Exhibit A). In the event that Microsoft authorizes iBEAM to
       provide iBEAM Services that exceed in value (as calculated pursuant to
       the terms set forth in Exhibit A) the value of then-existing pre-paid
       balance of Network Credits, Microsoft agrees to pay iBEAM for such iBEAM
       Services in accordance with iBEAM's then-current pricing to third parties
       which are purchasing iBEAM Services in aggregate volumes comparable to
       those being purchased by Microsoft in connection with the use of Network
       Credits under this Agreement.

3.3  Promotion of Internet Radio Networks.  iBEAM agrees to provide highly
     ------------------------------------
     competitive fixed rate pricing for iBEAM Services to radio networks or
     stations that iBEAM and Microsoft in

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                   Microsoft Confidential & Proprietary                   Page 7
<PAGE>

     their reasonable discretion mutually designate to participate in such
     manner in the Broadband Streaming Initiative. [*] iBEAM shall provide such
     fixed rate pricing [*] that each designated radio network or station
     participates in this program, provided that such customers enter agreements
     with terms equal to or greater than [*] and agree to make commercially
     reasonable efforts to promote their use of iBEAM's services.

3.4  Publicity. iBEAM will work with Microsoft to develop a mutually agreeable
     ---------
     press release to be released as soon as possible after the Effective Date,
     provided that the text of such release must have been approved in writing
     by each party before its release. In such release, iBEAM shall endorse
     Windows Media Technologies, and Windows Media Format as being recommended
     by iBEAM as its recommended platform and formats for its services and
     applications. Further, subject to the limitations set forth in the next
     sentence hereof, iBEAM agrees that (a) it will not release or approve any
     press releases using its name or descriptions of the iBEAM Services, other
     than in conjunction with promotions of Windows Media Technologies as
     described above, for [*] before the initial announcement contemplated by
     the previous sentence, nor for [*] following such initial announcement, and
     (b) at all times during the Term, iBEAM shall not issue or approve press
     releases from third parties that are inconsistent with the spirit of this
     Section 3.4. Notwithstanding the restrictions set forth in the previous
     sentence, iBEAM shall be entitled to perform under any contractual
     obligation existing as of the Effective Date which requires iBEAM to
     release or approve press releases or making other announcements during the
     Term; provided, however, that to the extent iBEAM can comply with such
     contractual obligations and also comply with the time limitations set forth
     in the previous sentence, it shall do so. During the Term, iBEAM will also
     work with Microsoft to develop and release joint press announcements,
     provided that the details of each such announcement must have been approved
     in writing by each party before it occurs, and iBEAM agrees to provide
     Microsoft with reasonably detailed information on iBEAM's use of Microsoft
     technology in its iBEAM Web Site for inclusion in a case study which iBEAM
     shall be entitled to review and approve. With respect to all approvals
     contemplated by this Section 3.4, the parties agree not to unreasonably
     withhold or delay such approvals.

3.5  Reporting and Audits.  By the tenth (10/th/) day of each calendar month
     --------------------
     during the Term (other than the month in which the Effective Date falls),
     iBEAM shall provide a report to Microsoft setting forth the following
     information concerning the previous calendar month, to the extent iBEAM's
     provision of such information to Microsoft does not conflict with any
     obligation of iBEAM to a customer and is reasonably available from iBEAM's
     reporting systems (and provided further that if iBEAM's reporting systems
     do not enable it to provide any element of such reports, iBEAM will
     promptly confer in good faith with Microsoft to pursue possible ways to
     enable such reporting systems to provide the requested information):

     (a)  The URL and number of page views for pages on the iBEAM Web Site or
          third party web sites hosted by iBEAM which contain Streaming Media;
     (b)  The number of referrals of end users from the iBEAM Web Site or third
          party web sites hosted by iBEAM to Microsoft's Windows Media Player
          download site(s);
     (c)  Web browsing software share and Streaming Media player share
          information for the iBEAM Web Site and third party web sites hosted by
          iBEAM; include version information;

[*]  Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                   Microsoft Confidential & Proprietary                   Page 8
<PAGE>

     (d)  The number of streams served, including the total number of .wma, .asx
          and .asf format files served, by bit rate;
     (e)  The average length of a user stream for a single connection to the
          iBEAM Web Site and third party web sites hosted by iBEAM;
     (f)  The number of streams of pages with feature/streaming technology; and
     (g)  The average number of .wma, .wmx, and .asx files on site.

     iBEAM shall provide all reports hereunder to Microsoft via Microsoft's web
     reporting system located at [*], or any successor thereto.

     In the event that iBEAM has failed to provide a report as described in this
     Section 3.5 on or before the tenth (10/th/) day of the relevant calendar
     month, then Microsoft will be entitled to suspend its performance under
     this Agreement (including without limitation its payment obligations under
     Section 2.1) until such report has been received. All information provided
     pursuant to this Section will be deemed to be Confidential Information of
     iBEAM.

3.6  Additional Trademark Use.  iBEAM further agrees to use all Windows Media
     ------------------------
     Technologies-related logos in accordance with the applicable logo program
     requirements established by Microsoft in its sole discretion from time to
     time. In the event that iBEAM fails to comply with Microsoft's then-current
     logo requirements for participation in the Streaming Media Initiative at
     any time during the Term, then Microsoft will be entitled, after providing
     iBEAM with notice of breach and an opportunity to cure such breach within
     thirty (30) days, to suspend its performance under this Agreement and
     terminate this Agreement (including without limitation Microsoft's payment
     obligations under Section 2.1) upon further written notice to iBEAM.

3.7  Technology Development and Testing Discussions.  iBEAM agrees that upon
     ----------------------------------------------
     request and subject to the parties' prior mutual written agreement with
     respect to applicable intellectual property ownership and licenses, iBEAM
     will make its appropriate senior technical personnel available to discuss
     architecture and beta release testing matters with Microsoft in relation to
     the following areas of mutual interest concerning technology development:
     [*]. Microsoft agrees to provide pre-commercial releases of Microsoft
     Software as specified under Section 2.4.

3.8  Digital Rights Management Applications.  iBEAM intends to implement and
     --------------------------------------
     license Microsoft Digital Rights Management "DRM" technologies and services
     in connection with the iBEAM Services, provided, however, that Microsoft
     technologies and services can be rejected by iBEAM if it evaluates and in
     good faith reasonably deems them not to be commercially competitive with
     respect to alternatives in the areas of technology, price, quality, and
     delivery timetables, taken as a whole. In the event that any such
     technology or service is reasonably deemed not to be competitive, iBEAM
     agrees to provide Microsoft a written notice describing in reasonable
     detail the reason(s) why the Microsoft offering has been deemed not to be
     competitive and the opportunity to discuss and address such shortfalls.
     Upon iBEAM's final selection (if any) of Microsoft's DRM technologies and
     services, the parties further agree to negotiate in good faith for a
     commercially reasonable period concerning the applicable license and
     support terms and concerning joint promotional efforts the parties may
     engage in with respect to iBEAM's implementation of

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                   Microsoft Confidential & Proprietary                   Page 9
<PAGE>

    DRM, and upon entering into any such agreement iBEAM agrees that it will
    deploy, describe and promote Microsoft's DRM technologies and services to
    prospective and actual customers as its recommended digital rights
    management solutions for iBEAM services; provided, however, that iBEAM may
    also deploy, describe and promote other digital rights management solutions.

4.  Additional Understandings

4.1 Corporate Solutions.  Subject to Window Media Technologies being a
    -------------------
    competitively comparable solution to other Streaming Media technologies (as
    reasonably determined by iBEAM in good faith based on technology, price,
    quality and delivery timetables) iBEAM agrees to promote Microsoft Software
    and Windows Media Technologies as its recommended platform and solutions
    with respect to all Streaming Media-related services and solutions that
    iBEAM may offer to corporate customers (e.g., to support intranets) during
    the Term. iBEAM agrees to make good faith efforts to share its product and
    sales plans for such marketplace with Microsoft promptly upon their
    development. Microsoft acknowledges that all such prospective plans shall be
    deemed to be Confidential Information of iBEAM.

4.2 International Service Rollout.  iBEAM agrees to use commercially reasonable
    -----------------------------
    efforts to provide Microsoft [*], subject to the provisions of this Section
    4.2, to [*] on then-standard commercial terms to support iBEAM's rollout of
    its network and services internationally as part of joint ventures and other
    affiliations in which iBEAM does not independently control technology
    deployment. In all applicable iBEAM international efforts, iBEAM will
    endeavor in good faith to provide Microsoft a [*] in order to implement and
    license Microsoft technologies and services as referenced herein, provided,
    however, that [*]. iBEAM and its international affiliates may make the final
    selection based on its sole discretion in accordance with this paragraph.

4.3 Other Opportunities.  iBEAM agrees to notify and offer Microsoft [*], on the
    -------------------
    same basis as described in Section 4.2, with respect to any and all
    Streaming Media-related initiatives, applications, services and other
    offerings that iBEAM may develop or offer during the Term of this Agreement.
    [*]

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

              Microsoft Confidential & Proprietary                       Page 10
<PAGE>

5.   Non-Exclusive

Nothing in this Agreement shall be deemed to restrict either party's ability to
license, develop, sub-license, manufacture, deploy, support, promote, or
distribute software, Content, Streaming Media or any other format or technology,
whether or not similar to Windows Media Technologies or any iBEAM Services.

6.   Confidentiality

6.1  Each party shall protect the other's Confidential Information from
     unauthorized dissemination and use with the same degree of care that such
     party uses to protect its own like information and in no event using less
     than a reasonable degree of care. Neither party will use the other's
     Confidential Information for purposes other than those necessary to
     directly further the purposes of this Agreement. Neither party will
     disclose to third parties the other's Confidential Information without the
     prior written consent of the other party. Except as expressly provided in
     this Agreement, no ownership or license rights are granted in any
     Confidential Information. The other provisions of this Agreement
     notwithstanding, either party will be permitted to disclose the
     Confidential Information to their outside legal and financial advisors; and
     to the extent required by applicable law, provided however that before
     making any such required filing or disclosure, the disclosing party shall
     first give written notice of the intended disclosure to the other party,
     within a reasonable time from the time disclosure is requested and in any
     event prior to the time when disclosure is to be made, and the disclosing
     party will exercise best efforts, in cooperation with and at the expense of
     the other party, consistent with reasonable time constraints, to obtain
     confidential treatment for all non-public and sensitive provisions of this
     Agreement, including without limitation dollar amounts and other numerical
     information.

6.2  The parties' obligations of confidentiality under this Agreement shall not
     be construed to limit either party's right to independently develop or
     acquire products without use of the other party's Confidential Information.
     Further, either party shall be free to use for any purpose the residuals
     resulting from access to or work with such Confidential Information,
     provided that such party shall maintain the confidentiality of the
     Confidential Information as provided herein. The term "residuals" means
     information in non-tangible form, which may be retained by persons who have
     had rightful and good faith access to the Confidential Information,
     including ideas, concepts, know-how or techniques contained therein.
     Neither party shall have any obligation to limit or restrict the assignment
     of such persons or to pay royalties for any work resulting from the use of
     residuals. However, the foregoing shall not be deemed to grant to either
     party a license under the other party's copyrights or patents.

7.   Warranties and Disclaimers

7.1  Warranties.  Each party warrants and covenants that it has the full power
     ----------
     and authority to enter into and perform according to the terms of this
     Agreement.

7.2  DISCLAIMERS.  ANY AND ALL SOFTWARE, TECHNOLOGY, SERVICES, CONTENT, OR
     -----------
     INFORMATION PROVIDED BY EITHER PARTY TO THE OTHER

              Microsoft Confidential & Proprietary                       Page 11
<PAGE>

     HEREUNDER IS PROVIDED "AS IS," WITHOUT WARRANTY OF ANY KIND. EACH PARTY
     DISCLAIMS ALL WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT
     LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
     PARTICULAR PURPOSE, TITLE AND NONINFRINGEMENT, WITH RESPECT TO ANY
     SOFTWARE, TECHNOLOGY, SERVICES, CONTENT, OR INFORMATION PROVIDED HEREUNDER.

8.   Indemnity

8.1  Indemnity.  iBEAM shall, at its expense and Microsoft's request, defend
     ---------
     any claim or action brought by a third party against Microsoft, or
     Microsoft's affiliates, directors, or officers, to the extent it is based
     upon a claim involving the iBEAM Services and/or the iBEAM Web Site,
     including without limitation any claim that any iBEAM Services or any
     Content included in or uploaded to the iBEAM Web Site infringes or violates
     any copyright, patent, trademark, trade secret, right of publicity, or
     other intellectual property, proprietary or contractual right of a third
     party (all such claims or actions being referred to hereinafter as "iBEAM
     Claims"), and iBEAM will indemnify and hold Microsoft harmless from and
     against any costs, damages and fees reasonably incurred by Microsoft,
     including but not limited to fees of outside attorneys and other
     professionals, that are attributable to such iBEAM Claims. Microsoft shall:
     (a) provide iBEAM reasonably prompt notice in writing of any such iBEAM
     Claims and permit iBEAM, through counsel chosen by iBEAM, to answer and
     defend such iBEAM Claims; and (b) provide the entity defending such claim
     information, assistance and authority, at such entity's expense, to help
     defend such iBEAM Claims. iBEAM will not be responsible for any settlement
     made by Microsoft without iBEAM's written permission, which permission will
     not be unreasonably withheld or delayed. Reasonable withholding of
     permission may be based upon, among other factors, editorial and business
     concerns. iBEAM will consult with Microsoft on the choice of any counsel
     under this Section 8.1. In the event Microsoft receives any iBEAM Claim or
     Microsoft has reason to believe it may be subject to any iBEAM Claim,
     Microsoft shall be entitled, upon written notice to iBEAM, to suspend
     performance under this Agreement (other than Microsoft's obligations under
     Section 2.1) with respect to the applicable iBEAM Services, iBEAM Web Site
     or Content thereon until iBEAM has taken steps to Microsoft's satisfaction
     in order to address the alleged infringement. If iBEAM does not take
     satisfactory steps to address the alleged infringement within fifteen (15)
     days after receiving a notice from Microsoft under the foregoing sentence,
     then Microsoft in its discretion may terminate this Agreement upon written
     notice to iBEAM and such termination shall be deemed to be a termination
     for cause for purposes of Section 9.

8.2  Settlement by iBEAM.  Unless iBEAM obtains for Microsoft a complete release
     -------------------
     of all iBEAM Claims thereunder, iBEAM may not settle any iBEAM Claim under
     this Section 8 on Microsoft's behalf without first obtaining Microsoft's
     written permission, which permission will not be unreasonably withheld or
     delayed. Reasonable withholding of permission may be based upon, among
     other factors, the ability for Microsoft to ship any product. In the event
     iBEAM and Microsoft agree to settle an iBEAM Claim, iBEAM agrees not to
     disclose terms of the settlement without first obtaining Microsoft's
     written permission, which will not be unreasonably withheld or delayed.

              Microsoft Confidential & Proprietary                       Page 12
<PAGE>

9.   Termination

9.1  Termination By Either Party.  Either party may suspend performance and/or
     ---------------------------
     terminate this Agreement as expressly provided elsewhere in this Agreement
     or:

     (a) Immediately upon written notice at any time, if the other party is in
         material breach of any material warranty, term, condition or covenant
         of this Agreement, other than those contained in Section 6, and fails
         to cure that breach within [*] after written notice thereof; or

     (b) Immediately upon written notice at any time, if the other party is in
         material breach of Section 6.

9.2  Effect of Termination.
     ---------------------

     (a) Neither party shall be liable to the other for damages of any sort
         resulting solely from terminating this Agreement in accordance with its
         terms.

     (b) Termination of this Agreement shall not affect any other agreement
         between the parties.

     (c) Should either iBEAM or Microsoft terminate for cause pursuant to
         Section 8.1, 9.1(a), or 9.1(b), neither party shall have any further
         obligations to the other under Sections 2.1-2.9, Section 3.1-3.8, or
         Section 4.1-4.3, with the exception that Microsoft shall be entitled in
         its discretion either (i) to use, within [*] of such termination, any
         Network Credits representing amounts previously paid by Microsoft
         under this Agreement which have not been recouped via use of Network
         Credits as of the termination of this Agreement; or (ii) to require
         iBEAM to refund the portion of the Network Credit Fee Amount then
         having been paid by Microsoft and not (as of the termination date)
         used to provide iBEAM Services for the parties and purposes specified
         in Section 2.1 and Exhibit A, provided that in no event shall iBEAM
         be obligated to refund more than [*] of the total Network Credit Fee
         Amount paid to iBEAM by Microsoft during the twelve (12) months prior
         to Termination. Without limiting the generality of the foregoing,
         Microsoft will have no obligation following termination of this
         Agreement to make any additional payments or provide any further
         services to iBEAM under Section 2 of this Agreement.

9.3  Survival.  In the event of termination or expiration of this Agreement for
     --------
     any reason, Sections 1, 2.9, and 5-11 shall survive termination and
     continue in effect in accordance with their terms.

10. Limitation Of Liabilities

IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT,
INCIDENTAL, PUNITIVE OR SPECIAL DAMAGES WHATSOEVER, INCLUDING, WITHOUT
LIMITATION, DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, LOSS OF
BUSINESS INFORMATION, AND THE LIKE,

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

              Microsoft Confidential & Proprietary                       Page 13
<PAGE>

ARISING OUT OF THIS AGREEMENT OR THE USE OF OR INABILITY TO USE THE MICROSOFT
SOFTWARE OR EITHER PARTY'S CONFIDENTIAL INFORMATION, CONTENT, OR SERVICES, EVEN
IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

THIS SECTION SHALL NOT APPLY TO SECTION 6 (REGARDING CONFIDENTIALITY), NOR TO
iBEAM'S INDEMNITY OBLIGATIONS WITH RESPECT TO THIRD PARTY CLAIMS AS PROVIDED IN
SECTION 8 OF THIS AGREEMENT.

11.  General Provisions

11.1 Notices.  All notices and requests in connection with this Agreement shall
     -------
     be deemed given as of the day they are received either by messenger,
     delivery service, or in the United States of America mails, postage
     prepaid, certified or registered, return receipt requested. Any such
     notices to iBEAM should be sent to the address set forth in the Initial
     Definitions Table on the first page of this Agreement, and sent to the
     attention of the iBEAM Contact named in such Initial Definitions Table. Any
     such notices to Microsoft should be addressed as follows:

     --------------------------------------------------
     Address:
     --------------------------------------------------
     Microsoft Corporation
     One Microsoft Way
     Redmond, WA  98052-6399
     Attention: Patty Jackson
     --------------------------------------------------
     Phone: (425)882-8080
     --------------------------------------------------
     Fax:   (425)936-7329
     --------------------------------------------------
     Copy to: Law and Corporate Affairs
     --------------------------------------------------
     Microsoft Corporation
     One Microsoft Way
     Redmond, WA  98052-6399

     Attention:  Law & Corporate Affairs
     --------------------------------------------------
     Phone: (425)882-8080
     --------------------------------------------------
     Fax:   (425)936-7409
     --------------------------------------------------

     or to such other address as a party may designate pursuant to this notice
     provision.

11.2 Independent Parties. Nothing in this Agreement shall be construed as
     -------------------
     creating an employer-employee relationship, an agency relationship, a
     partnership, or a joint venture between the parties.

11.3 Governing Law.  This Agreement will be governed by the laws of the State of
     -------------
     Washington, without reference to the conflict of law principles thereof.
     Any action or litigation concerning this Agreement will take place
     exclusively in the federal or state courts in King County, Washington, and
     the parties expressly consent to jurisdiction of and venue in such courts
     and waive all defenses of lack of personal jurisdiction and forum non
     conveniens

              Microsoft Confidential & Proprietary                       Page 14
<PAGE>

     with respect to such courts. iBEAM hereby agrees to service of process by
     mail or other method acceptable under the laws of the State of Washington.

11.4 Attorneys' Fees.  In any action or suit to enforce any right or remedy
     ---------------
     under this Agreement or to interpret any provision of this Agreement, the
     prevailing party shall be entitled to recover its costs, including
     reasonable attorneys' fees.

11.5 Assignment.  This Agreement and any rights or obligations hereunder may not
     ----------
     be assigned by iBEAM (including without limitation via merger, stock
     purchase, a sale of substantially all assets, or otherwise by operation of
     law) without Microsoft's prior written approval which shall not be
     unreasonably withheld or delayed. Notwithstanding the foregoing, iBEAM may
     assign this Agreement in its entirety as part of a change in control of
     iBEAM, provided that the assignee is not a software platform provider
     (e.g., and without limitation, [*]) and does not develop and license
     Streaming Media technologies or platforms (e.g., and without limitation
     [*]); the parties further agree that it shall be deemed reasonable for
     Microsoft to elect in its discretion not to approve a proposed assignment
     to a software platform provider or a developer/licensor of Streaming Media
     technologies or platforms. Any attempted assignment, sub-license, transfer,
     encumbrance or other disposal by iBEAM which requires Microsoft's approval
     and which has not been so approved will be void and will constitute a
     material default and breach of this Agreement for which Microsoft may
     terminate this Agreement in accordance with Section 9.1. Except as
     otherwise provided, this Agreement will be binding upon and inure to the
     benefit of the parties' successors and lawful assigns.

11.6 Force Majeure.  Neither party shall be liable to the other under this
     -------------
     Agreement for any delay or failure to perform its obligations under this
     Agreement if such delay or failure arises from any cause(s) beyond such
     party's reasonable control, including by way of example labor disputes,
     strikes, acts of God, floods, fire, lightning, utility or communications
     failures, earthquakes, vandalism, war, acts of terrorism, riots,
     insurrections, embargoes, or laws, regulations or orders of any
     governmental entity.

11.7 Construction.  If for any reason a court of competent jurisdiction finds
     ------------
     any provision of this Agreement, or portion thereof, to be unenforceable,
     that provision of the Agreement will be enforced to the maximum extent
     permissible so as to effect the intent of the parties, and the remainder of
     this Agreement will continue in full force and effect. Failure by either
     party to enforce any provision of this Agreement will not be deemed a
     waiver of future enforcement of that or any other provision. This Agreement
     has been negotiated by the parties and their respective counsel and will be
     interpreted fairly in accordance with its terms and without any strict
     construction in favor of or against either party.

11.8 Entire Agreement.  This Agreement does not constitute an offer by Microsoft
     ----------------
     and it shall not be effective until signed by both parties. This Agreement
     constitutes the entire agreement between the parties with respect to the
     subject matter hereof and merges all prior and contemporaneous
     communications. It shall not be modified except by a written agreement
     dated subsequent to the date of this Agreement and signed on behalf of
     iBEAM and Microsoft by their respective duly authorized representatives.

IN WITNESS WHEREOF, the parties have entered into this Agreement as of the
Effective Date written above.

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

              Microsoft Confidential & Proprietary                       Page 15
<PAGE>

------------------------------------------------------------------------------
MICROSOFT CORPORATION                          IBEAM BROADCASTING
                                               CORPORATION
------------------------------------------------------------------------------

By: /s/ William Poole                          By: /s/ Chris Dier
------------------------------------------------------------------------------

Name (print): William Poole                    Name (print): Chris Dier
------------------------------------------------------------------------------

Title: General Manager                         Title: C.F.O.
------------------------------------------------------------------------------

Date: 9/22/99                                  Date: 9/20/99
------------------------------------------------------------------------------

              Microsoft Confidential & Proprietary                       Page 16
<PAGE>

                                   EXHIBIT A

                           IBEAM SERVICES GUIDELINES

1.   Approval of Program Participants
     --------------------------------

     Microsoft shall have sole discretion regarding the designation of Broadband
Streaming Initiative ICP Participants and allocation of Network Credits for use
by such entities and/or Microsoft's internal use under this Agreement.
Microsoft shall make reasonable efforts to provide Network Credits to customers
and programs that iBEAM recommends for the Broadband Streaming Initiative.  In
no event shall iBEAM provide any Microsoft Confidential Information to any
customer or prospective customer except with Microsoft's express written
approval. Microsoft shall notify iBEAM from time to time in writing of approved
Broadband Streaming Initiative ICP Participants, the particular iBEAM Services
to be used by each such entity pursuant to this Agreement, and the approved
allocation of Network Credits among such entities and Microsoft (if applicable).
Microsoft and iBEAM will cooperate in good faith following the Effective Date to
develop and implement operational procedures, including prior approvals for
sales programs, to coordinate the use of Network Credits in accordance with this
Agreement.

2.   Terms of Service
     ----------------

     Notwithstanding anything to the contrary in the foregoing paragraph, the
relationship between iBEAM and any Broadband Streaming Initiative ICP
Participant shall be separate from iBEAM's relationship with Microsoft and iBEAM
shall have the right to choose, in its sole discretion, not to do business with
any Broadband Streaming Initiative ICP Participant.  iBEAM shall enter into a
separate agreement, in a timely manner, with each Broadband Streaming Initiative
ICP Participant to which iBEAM intends to provide iBEAM Services pursuant to
this Agreement, and iBEAM shall perform all such iBEAM Services in a manner as
mutually agreed upon by iBEAM and each such Broadband Streaming Initiative ICP
Participant.  iBEAM shall be solely responsible for all services it provides to
Broadband Streaming Initiative ICP Participants, including without limitation
the iBEAM Services, and for enforcing the terms of any services or other
agreements it enters into with Broadband Streaming Initiative ICP Participants.

     At Microsoft's sole discretion, iBEAM may perform iBEAM Services for
Microsoft acting on behalf of a Broadband Streaming Initiative ICP Participant,
in which event such provision of iBEAM Services shall be subject to the terms of
this Agreement and any further services agreement that Microsoft and iBEAM may
mutually agree upon.

3.   Rate Schedule
     -------------

     [*]  Net Credits consumed by iBEAM customers shall be in accordance with
terms mutually approved by Microsoft and iBEAM and included in the operational
procedures specified in paragraph 1 above.

[*]  Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

              Microsoft Confidential & Proprietary                       Page 17
<PAGE>

                                   EXHIBIT B

                         Get Windows Media(TM) player
                              Link Logo Guidelines

Get Windows Media(TM) Player logo usage instructions
----------------------------------------------------

To put the logo and link on your Web site, follow these easy steps:
  1. Read our policy below on using the Get Windows Media Player logo.

  2. Copy the Get Windows Media Player logo.gif file image to your desktop.

     [ICON APPEARS HERE]

  3. Move the Get Windows Media Player logo .gif file from your desktop to your
     Web server.

  4. Insert the following HTML code on your Web page.  Be sure to point the (IMG
     SRC) to the location of the Get Windows Media Player logo .gif file on your
     server:

     (BR)(CENTER)
     (A HREF="http://www.microsoft.com/windows/mediaplayer/download/default.
      asp")
     (IMG SRC="type path to logo image here" WIDTH="65"
     HEIGHT="57" BORDER="0"
     ALT="Get Windows Media Player" VSPACE="7")(/A)
     (/CENTER)(BR)

  5. You can modify this HTML code to fit your formatting as long as you follow
     the guidelines outlined below.

  Get Windows Media(TM) Player logo usage guidelines
  --------------------------------------------------

1.  Except as Microsoft may authorize elsewhere, non-Microsoft Web sites may
    display only the Get Windows Media(YM) Player logo provided above ("Logo").
    By downloading the Logo to your Web site, you agree to be bound by these
    Policies.

2.  You may only display the Logo on your Web site, and not in any other manner.
    It must always be an active link to the download page for the Windows Media
    Player at http://www.microsoft.com/windows/mediaplayer/download/default.asp.

3.  The Logo GIF image includes the words "Get Windows Media Player" describing
    the significance of the Logo on your site (that the Logo is a link to the
    download page for the Microsoft Windows Media Player, not an endorsement of
    your site). You may not remove or alter any element of the Logo.

4.  The Logo may be displayed only on Web pages that make accurate references to
    Microsoft or its products or services or as otherwise authorized by
    Microsoft. Your Web page title and other trademarks and logos must appear at
    least as prominently as the Logo. You may not display the Logo in any manner
    that implies sponsorship, endorsement, or license by Microsoft except as
    expressly authorized by Microsoft.

5.  The Logo must appear by itself, with a minimum spacing (30 pixels) between
    each side of the Logo and other distinctive graphic or textual elements on
    your page. The Logo may not be displayed as a feature or design element of
    any other logo.

6.  You may not alter the Logo in any manner, including size, proportions,
    colors, elements, or animate, morph, or otherwise distort its perspective or
    appearance, except in the event expressly authorized by Microsoft.

              Microsoft Confidential & Proprietary                       Page 18

<PAGE>

7.  You may not display the Logo on any site that infringes any Microsoft
    intellectual property or other rights, or violates any state, federal, or
    international law.

8.  These Policies do not grant a license or any other right to Microsoft's
    logos or trademarks. Microsoft reserves the right at its sole discretion to
    terminate or modify permission to display the Logo at any time. Microsoft
    reserves the right to take action against any use that does not conform to
    these Policies, infringes any Microsoft intellectual property or other
    right, or violates other applicable law.

9.  MICROSOFT DISCLAIMS ANY WARRANTIES THAT MAY BE EXPRESS OR IMPLIED BY LAW
    REGARDING THE LOGO, INCLUDING WARRANTIES AGAINST INFRINGEMENT.

(C)1999 Microsoft Corporation.  All rights reserved.  Terms of Use.

              Microsoft Confidential & Proprietary                       Page 19<PAGE>

                                                                   EXHIBIT 10.10

Note: Information in this document marked with an "[*]" has been omitted and
filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions.

                                                        Agreement No.___________

[LOGO OF WILLIAMS]

                          Teleport Services Agreement

This is an agreement between Williams Vyvx Services, a business unit of Williams
Communications, Inc., ("Williams") and iBEAM Broadcasting Corporation
("Customer"), dated as of December 13, 1999, in connection with teleport
services to be provided by Williams from Williams Vyvx Teleport New York as its
primary signal path and Williams Vyvx Teleport Los Angeles as its redundant
signal path  (the "Teleport(s)") to Customer (the "Agreement").  The terms of
this Agreement are as follows:

1.   SERVICES. Williams shall provide Customer with the Teleport services as
     --------
     further described on Exhibit A-1 attached hereto and made a part hereof
     (collectively referred to herein as the "Services"). From time to time and
     subject to availability, changes may be made in the Services which will be
     reflected in amendments to the applicable Exhibit A or the addition of
     additional Exhibit As. Each amendment shall be executed by authorized
     individuals of both parties. Each Exhibit A shall be part of this Agreement
     and incorporated herein. All Exhibit As shall be sequentially numbered for
     ease of identification, e.g., Exhibits A-1, A-2, A-3 and so forth.

2.   TERM. Upon signature by both parties this Agreement shall become effective
     ----
     on the date first set forth above and shall continue in effect until the
     expiration of any Exhibit A attached hereto (the "Term").

3.   LATE PAYMENT.  If any payment is not received by Williams within 30 days
     ------------
     after the date of invoice (the "Due Date"), then such overdue amount shall
     be subject to late payment charges at the lower of 18% per annum or the
     highest legally permissible rate of interest until the date payment is
     actually received. If Customer in good faith disputes any portion of an
     invoice it must pay the undisputed amount of the invoice on or before its
     Due Date and provide written notice to Seller of the billing dispute at or
     before the time of payment. Such notice must include documentation
     substantiating the dispute. Customer's failure to notify Seller of a
     dispute within one hundred-twenty (120) days after the Due Date shall be
     deemed to be Customer's acceptance of such charges. The parties will make a
     good faith effort to resolve billing disputes as expeditiously as possible.
     If a dispute is resolved in favor of Customer, Customer shall receive an
     adjustment on its next bill.

4.   SUSPENSION RIGHT.  In the event that Customer has failed to pay any
     ----------------
     undisputed amount when due, Williams shall have the right to suspend
     Services. Williams shall only exercise this Suspension Right by first
     providing Customer with ten business days' written notice by facsimile. If
     Williams receives payment from Customer of all amounts due within the ten-
     day notice period, then Customer's Services shall not be suspended.
     Suspension of Services does not affect Customer's obligation to pay the
     Service Charges through the Term of this Agreement unless Customer
     exercises its termination right as described in this Section 4. In the
     event Williams suspends Customer's Services, Customer shall have the right
     but not the obligation to terminate this Agreement at its sole discretion.
     Customer's liability with respect to such termination shall be an amount
     equal to twelve (12) months of Service from the date of termination
     multiplied by the then current monthly Total Service Charge or an amount
     equal to the number of months remaining in the Term multiplied by the then
     current monthly Total Service Charge, whichever is less.

                                                                   Page 1 of 26
<PAGE>

5. TERMINATION.
   -----------

5.1  Customer shall have the right to terminate this Agreement upon a minimum of
     thirty (30) days' written notice. This right to terminate may only be
     exercised due to one of the following two circumstances:

     a.  Monthly Interruptions exceed 43 minutes in three (3) consecutive
         calendar months; or

     b.  A second Daily Interruption in excess of 24 consecutive hours (after
         the first Daily Interruption in excess of 24 consecutive hours).

     Customer must exercise its right to terminate pursuant to this Section 5.1
     within thirty (30) days of the circumstance giving rise to Customer's right
     to terminate. This right to terminate is Customer's only right to terminate
     due to excessive Interruptions, and Customer may not invoke the general
     termination right as set forth in Section 5.2 due to Interruptions.

5.2  Either party may terminate this Agreement due to a material breach of this
Agreement by the other party. The non-breaching party shall provide written
notice to the breaching party of the alleged breach, and the breaching party
shall have sixty (60) days to cure the breach. If the breach has not been cured
within this sixty-day period, then the non-breaching party may terminate upon
thirty (30) days' written notice. Customer shall pay Williams in accordance with
this Agreement for all Services performed up to and including the effective date
of termination.

6. TAXES.  Customer acknowledges and understands that all charges are computed
   -----
   exclusive of any applicable federal, state or local use, excise, gross
   receipts, sales and privilege taxes, duties, fees or similar liabilities
   (other than general income or property taxes), including without limitation,
   any tax or charge levied to support the Universal Service Fund contemplated
   by the Telecommunications Act of 1996, whether charged to or against
   Williams, its suppliers or affiliates or Customer for the Service provided to
   Customer ("Taxes"). Such Taxes shall be paid by Customer in addition to all
   other charges provided for herein.

7. OUTAGE ALLOWANCE.
   ----------------

7.1  Calculation of Outage Allowance.  If applicable, Williams shall grant
     -------------------------------
        Customer an Outage Allowance for Services as follows:

        (a)  For purposes of this Agreement an interruption to Services
             ("Interruption") will be deemed to have occurred when Services are
             either not provided at all or fail to meet the requirements of the
             Agreement for a period of ten aggregate minutes on any given
             calendar day (the "Daily Interruption") or forty-three (43)
             aggregate minutes in any given calendar month (the "Monthly
             Interruption"). An Interruption begins the earlier of when Customer
             notifies Williams of the Interruption or when Williams is actually
             aware of the Interruption or constructively aware through
             recordation of the Interruption in Williams' log files. An
             Interruption will be considered to have ended when Services in
             accordance with this Agreement have been restored.

       (b)   In the event that Williams has a Daily Interruption as set forth in
             Section 7.1(a) herein, Customer shall receive a credit for the day
             the Daily Interruption occurred. Such credit shall include all fees
             for the day containing the Daily Interruption related to the
             Primary uplink (the "Uplink Outage Allowance"), which represents
             62.5% of the total daily uplink fee.

       (c)   In addition to the Uplink Outage Allowance, a credit will be
             provided to Customer by Williams based on the outage formula below
             for the actual outage minutes related to the Space Segment (the
             "Space Segment Outage Allowance").

                                                                    Page 2 of 26
<PAGE>

                                   43,200 (deemed number of minutes per month)

     (d)  In the event Williams has a Monthly Interruption as set forth in
          Section 7.1(a) herein, Customer shall receive a credit for the month
          in which the Monthly Interruption took place. Such credit will include
          an Uplink Outage Allowance as defined herein for the month containing
          the Monthly Interruption. If Customer receives a credit for a Monthly
          Interruption, Customer shall not receive credits for any Daily
          Interruptions which occurred during the month in which the Monthly
          Interruption occurred.

  7.2  Audio/Video. Intentionally Left Blank.
       ------------

  7.3  Exceptions to Outage Allowance.  In no case shall an Outage Allowance be
       -------------------------------
       made for any Interruption that is a result of, or attributable in whole
       or in part to:

       (a)  Any failure on the part of Customer to perform its material or
            operational obligations pursuant to this Agreement;

       (b)  The failure of Customer's Signal provided by Customer or by carriers
            other than Williams;

       (c)  The failure of transmission lines, equipment, or other facilities
            provided by the Customer;

       (d)  The failure or nonperformance of any earth station not provided by
            Williams;

       (e)  Reasonable periodic maintenance as approved in advance by Customer,
            provided Williams provides Customer with 72 hours advance notice of
            such maintenance and cumulative maintenance time does not exceed two
            (2) hours per calendar month;

       (f)  Interference from third party transmission or usage;

       (g)  Cooperative testing;

       (h)  Sun transit outage or rain fade; or

       (i)  Any other act or failure to act by Customer.

  7.4  Credit Memoranda.  Interruptions and Outage Allowances shall be
       -----------------
       acknowledged by Williams through the issuance of credit memoranda.  Such
       memoranda shall be issued within fifteen (15) days of the close of each
       calendar month and shall reflect all credit allowances accumulated by
       Customer during such month.  Customer may deduct from its next monthly
       payment the amount specified in the credit memorandum received in the
       preceding month.

  7.5  Time Limitation.  In no event shall Williams be liable for allowances for
       ---------------
       interruption unless the claim for such allowance is made within fifteen
       (15) days after the date of the interruption.

8.  WILLIAMS' RIGHT TO RE-CONFIGURE TELEPORT.  Williams shall have the right to
    ----------------------------------------
    re-configure or relocate the Teleport. Notwithstanding the above, any re-
    configuration must have minimal impact on any Customer performance
    requirement, and any relocation will be within the continental United States
    and will require that the two Teleports used by Customer must be at a
    minimum 1000 miles apart and neither shall be located in Florida or southern
    Texas.

                                                                    Page 3 of 26
<PAGE>

9.   RISK OF LOSS; INSURANCE.
     -----------------------

9.1  Insurance Coverage. For Customer's Equipment (as defined in Exhibit A-1)
     ------------------
and Customer's employees on the Teleport premises, Customer will carry or cause
to be carried and maintained in force throughout the entire Term of this
Agreement insurance coverages as described in paragraphs (a) through (c) below
with insurance companies acceptable to Williams.  The limits set forth below are
minimum limits and will not be construed to limit Customer's liability.  All
costs and deductible amounts will be for the sole account of the Customer.

       (a)  Worker's Compensation insurance complying with the laws of the State
            or States having jurisdiction over each employee, whether or not
            Customer is required by such laws to maintain such insurance, and
            Employer's Liability with limits of $500,000 each accident, $500,000
            disease each employee, and $500,000 disease policy limit. If work is
            to be performed in Nevada, North Dakota, Ohio, Washington, Wyoming
            or West Virginia, Customer will participate in the appropriate state
            fund(s) to cover all eligible employees and provide a stop gap
            endorsement.

       (b)  Commercial or Comprehensive General Liability insurance on an
            occurrence form with a combined single limit of $1,000,000 each
            occurrence, and annual aggregates of $1,000,000, for bodily injury
            and property damage, including coverage for blanket contractual
            liability, broad form property damage, personal injury liability,
            independent contractors, products/completed operations, and when
            applicable the explosion, collapse and underground exclusion will be
            deleted.

       (c)  Automobile Liability insurance with a combined single limit of
            $1,000,000 each occurrence for bodily injury and property damage to
            include coverage for all owned, non-owned, and hired vehicles.

  9.2  Waiver of Subrogation. In each of the above described policies, 9.1(a)
       ---------------------
       and 9.1(c), Customer agrees to waive and will require its insurers to
       waive any rights of subrogation or recovery they may have against
       Williams, its parent, subsidiary, or affiliated companies. Customer does
       not waive and its insurers will not waive any rights of subrogation or
       recovery they may have against Williams, its parent, subsidiary, or
       affiliated companies under 9.1(b).

  9.3  Additional Insureds. Under the policies described in Sections 9.1(b) and
       -------------------
       9.1(c) above, Williams, its parent, subsidiary and affiliated companies
       will be named as additional insureds as respects Customer's operations
       and as respects any work performed under this Agreement. Any costs
       associated with naming these additional insureds will be the
       responsibility of Customer. These policies will be primary insurance as
       respects Williams.

  9.4  Certificates of Insurance. Non-renewal or cancellation of policies
       -------------------------
       described above will be effective only after written notice is received
       by Williams from the insurance company thirty (30) days in advance of any
       such non-renewal or cancellation. Prior to commencing the Collocation
       Service hereunder, Customer will deliver to Williams certificates of
       insurance on an ACORD 25 or 25S form evidencing the existence of the
       insurance coverages required above. In the event of a loss or claim
       arising out of or in connection with the work performed under this
       contract, Customer agrees, upon request of Williams, to submit the
       original or a certified copy of its insurance policies for inspection by
       Williams.

  9.5  Risk of Loss. Williams will not insure nor be responsible for any loss or
       ------------
       damage, regardless of cause, to property of any kind, including loss of
       use thereof, owned, leased or borrowed by the Customer, or its employees,
       servants or agents.

  9.6  Insurance Requirement for Contractors. If Customer utilizes contractor(s)
       -------------------------------------
       per this Agreement, then Customer shall require such contractor(s) to
       comply with these insurance requirements and supply certificates of
       insurance before any work commences.

                                                                    Page 4 of 26
<PAGE>

10.  CONTRACT NOTICES. Any required notices pursuant to this Agreement shall be
     ----------------
     sent by facsimile, with confirmation by overnight courier to the parties at
     the following addresses:

     Williams Vyvx Services, a business unit of   iBEAM Broadcasting Corporation
     Williams Communications, Inc.                645 Almanor Ave., Suite 100
     One Williams Center, MD 26-3                 Sunnyvale, CA 94086
     Tulsa, OK 74172                              Tel: (408)523-1600
     Telephone: 918.573.5602                      Fax: (408)730-8937
     Fax: 918.574.6042                            Attn: CFO
     Attention: Contract Administration

11.  OPERATIONAL NOTICES.  If Customer has any technical problems with
     -------------------
     Customer's Equipment, Customer's signal(s) or the Services, Customer may
     call the Primary Teleport at 732-969-3191 or 732-969-3610 or the Secondary
     Teleport at 800-922-4424 or 909-943-5399 on a 24 x 7 basis. Williams will
     communicate with Customer as promptly as possible regarding any technical
     problems with Customer's Equipment, Customer's signal(s) or the Services.
     For purposes of these communications from Williams, Customer agrees that
     Williams should contact the operational contacts of Customer, in the order
     listed in Exhibit B hereto.

     Customer shall update its list of Operational Contacts with Williams as
     needed. Williams shall not be responsible for any Interruptions or other
     technical problems with Customer's Equipment, Customer's signal(s) or the
     Services in the event that Williams has attempted to communicate with
     Customer's Operational Contacts according to the information provided by
     Customer to Williams and Williams is unable to establish communications
     with them.

12.  LIMITATION OF LIABILITY

       12.1   EXCEPTING ONLY LIABILITY FOR WILLIAMS' RECKLESS OR WILLFUL
              MISCONDUCT, WILLIAMS' LIABILITY ARISING OUT OF ITS PROVISION OF
              SERVICES HEREUNDER, INCLUDING BUT NOT LIMITED TO LIABILITIES
              ARISING OUT OF WILLIAMS' NEGLIGENCE, MISTAKES AND OMISSIONS,
              INTERRUPTIONS, DELAYS, ERRORS, OR OTHER DEFECTS IN THE SERVICES OR
              BREACH OF CONTRACT OR ARISING OUT OF THE FAILURE TO FURNISH
              SERVICES, WHETHER CAUSED BY ACTS OF COMMISSION OR OMISSION, SHALL
              BE LIMITED TO THE EXTENSION OF ALLOWANCES FOR INTERRUPTIONS AS SET
              FORTH IN THIS AGREEMENT. SUCH ALLOWANCES FOR INTERRUPTION SHALL BE
              THE SOLE REMEDY OF CUSTOMER, INCLUDING ANY END USER OF CUSTOMER,
              AND THE SOLE LIABILITY OF WILLIAMS HEREUNDER. WILLIAMS' LIABILITY
              FOR DAMAGES OR LOSSES OF ANY KIND ARISING OUT OF ITS FURNISHING
              SERVICES SHALL IN NO EVENT EXCEED AN AMOUNT EQUAL TO ITS FIXED
              MONTHLY OR OTHER CHARGE ALLOCABLE TO THE FAULTY OR DEFECTIVE
              SERVICE.

       12.2   NOTWITHSTANDING THE PROVISIONS OF THE PRECEDING SUBPARAGRAPH,
              WILLIAMS SHALL NOT BE LIABLE TO CUSTOMER OR ANY END USER FOR ANY
              LOSS OF, DEFECTS IN OR ANY INABILITY TO FURNISH SERVICE DUE TO
              ACTS OF GOD, ACTS OF GOVERNMENT, WARS, RIOTS, STRIKES, FAILURE OF
              A TRANSPONDER, FAILURE OF A SATELLITE, FAILURE OF ANY OTHER
              TRANSMISSION EQUIPMENT OR OTHER CAUSES BEYOND WILLIAMS' CONTROL.

       12.3   ANY AND ALL EXPRESS AND IMPLIED WARRANTIES RELATING TO THE
              SERVICES, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF
              MERCHANTABILITY OR FITNESS FOR A SPECIFIC PURPOSE OR USE, ARE
              EXPRESSLY DISCLAIMED. CUSTOMER SHALL DEFEND, INDEMNIFY AND HOLD
              HARMLESS WILLIAMS FROM

                                                                    Page 5 of 26
<PAGE>

              ANY CLAIMS MADE UNDER A WARRANTY OR REPRESENTATION MADE BY
              CUSTOMER TO ANY THIRD PARTY WITH RESPECT TO THE SERVICES.

        12.4  EXCEPT FOR CUSTOMER'S PAYMENT OBLIGATIONS HEREUNDER, IN NO EVENT
              SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INCIDENTAL OR
              CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOST
              PROFITS), REGARDLESS OF THE FORESEEABILITY THEREOF, OCCASIONED BY
              THE TERMINATION OF CUSTOMER'S RIGHTS TO USE, OR THE PREEMPTION OF
              OR THE FAILURE OF, OR LOSS OF TECHNICAL QUALITY OF, THE SERVICES
              OR BY ANY DELAY IN COMMENCEMENT OF THIS AGREEMENT OR BY ANY OTHER
              CAUSE OR MATTER WHATSOEVER.

        12.5  EXCEPT FOR CUSTOMER'S PAYMENT OBLIGATIONS HEREUNDER, IN NO EVENT
              SHALL CUSTOMER BE LIABLE TO WILLIAMS FOR DIRECT DAMAGES IN EXCESS
              OF ONE MILLION DOLLARS.

13.  CUSTOMER'S CONTENT
     ------------------

     13.1   Responsibility for Content.  Customer shall be solely responsible
            --------------------------
            for all content transmitted by Williams as part of the Services.
            Further, Customer shall make all arrangements with other common
            carriers, Customer shall make all arrangements with other common
            carriers, stations, networks, sponsors, music licensing
            organizations, performers, representatives or other parties for the
            authorizations necessary to avail itself of the Services. Customer
            shall indemnify, defend, and save harmless Williams from any
            liability arising out of failure to make such arrangements.

     13.2   Content Indemnity. Customer shall indemnify, defend, and save
            -----------------
            harmless Williams from and against all loss, liability, damage and
            expense, including reasonable attorneys' fees, due to claims arising
            out of the content of any programming transmitted over Williams'
            facilities pursuant to this Agreement including without limitation,
            any claim for libel, slander, or infringement of copyright and any
            other claim resulting from any act or omission of Customer arising
            from the use of Williams' facilities or the Services provided that
            Customer be given immediate written notice of any such claims and of
            any suits brought or threatened against Williams and authority to
            assume the sole defense thereof through its own counsel and to
            compromise or settle any suits so far as this may be without
            prejudice to Williams' rights.

     13.3   No Violation of Law. Customer shall not use the Services for an
            -------------------
            unlawful purpose, including (without limitation) any use which
            constitutes a violation of any local, state, federal, national or
            international laws. Williams shall have the right to terminate this
            Agreement and the Services provided hereunder without liability to
            Customer in the event that Williams, its officers, employees or
            agents, becomes the subject of any investigation, or is threatened
            with or made a party to any administrative proceeding or litigation,
            related to the alleged illegal use of the Services by Customer.
            Notwithstanding the foregoing, Williams will not terminate this
            Agreement pursuant to this Section 13.3 if, immediately upon
            notification by Williams of such alleged illegal use, Customer is
            able to satisfy Williams subject to Williams' sole and reasonable
            discretion within forty-eight (48) hours that Customer has ceased
            the aforementioned alleged illegal use.

14.  NO THIRD-PARTY BENEFICIARY. The provisions of this Agreement are for the
     ---------------------------
benefit only of the parties hereto, and no third party may seek to enforce, or
benefit from these provisions.

15.  LEGAL EXPENSES. If any proceeding is brought for the enforcement of this
     ---------------
Agreement, or because of an alleged or actual dispute, breach, default or
misrepresentation in connection with any of the provisions of this
                                                                    Page 6 of 26
<PAGE>

Agreement, the prevailing party shall be entitled to recover reasonable
attorneys' fees and other costs and expenses incurred in such action or
proceeding in addition to any other relief to which such party may be entitled.

16.  FORCE MAJEURE.  Notwithstanding any other provision of this Agreement,
     -------------
neither Williams nor Customer shall be held liable for any delay or failure to
perform any part of this Agreement (other than non-payment of amounts due
hereunder) for any cause beyond its control and without its fault or negligence,
including but not limited to acts or omissions of civil or military authorities,
national or local emergencies, government regulations, embargoes, epidemics,
wars, terrorist acts, sabotage, riots, insurrections, fires, lightning, sun,
hail, high winds or other adverse weather conditions  , explosions, nuclear
accidents, strikes, extended power blackouts, natural disasters including but
not limited to earthquakes, floods or volcanic action, failure of satellite
transponder or failure of any third party facilities, equipment or services
(outside of the control of Williams and its subcontractors) or any law,
regulation or order of any government agency or court of competent jurisdiction
affecting either of the parties hereto in the performance of their obligations
hereunder.

17.  INDEPENDENT CONTRACTORS. The parties to this Agreement are independent
     -----------------------
contractors, and none of the provisions of this Agreement shall be interpreted
or deemed to create any relationship between Williams and Customer other than
that of independent contractors. Without limiting the generality of the
foregoing, Williams and Customer shall have sole responsibilities for the
withholding of all federal and state income taxes, unemployment insurance tax,
social security tax and other withholding with respect to payments made by it to
its employees performing services for it under this Agreement. Neither party's
directors, officers, employees, contractors or agents shall be deemed employees
of the other party or shall be entitled to compensation or any employment
benefits of any kind provided by the other party to its employees.

18.  WAIVER. No delay or failure of Williams or Customer to insist on
     ------
performance of any of the terms or conditions herein or to exercise any right or
privilege, or either party's waiver of any breach hereunder, shall be construed
to be a waiver thereof or a waiver of any other terms, conditions or privileges,
whether of the same or similar type.

19.  GOVERNING LAW. This Agreement shall be governed by and construed in
     -------------
accordance with the laws of the State of New York without regard to its choice
of law provisions.

20.  SEVERABILITY. If any term or provision of this Agreement shall, to any
     ------------
extent, be determined to be invalid or unenforceable by a court or body of
competent jurisdiction, then (a) both parties shall be relieved of all
obligations arising under such provision and this Agreement shall be deemed
amended by modifying such provision to the extent necessary to make it valid and
enforceable while preserving its intent, and (b) the remainder of this Agreement
shall be valid and enforceable.

21.  SURVIVAL OF TERMS AND CONDITIONS. The terms and conditions of this
     --------------------------------
Agreement which by their nature extend beyond termination of this Agreement
shall survive the expiration or termination of this Agreement to the full extent
necessary for their enforcement and for the protection of the party in whose
favor they operate.

22.  COUNTERPARTS. This Agreement may be executed in counterparts, each of which
     ------------
shall constitute an original and all of which, when taken together, shall
constitute one agreement.

23.  PARTIES BOUND BY AGREEMENT; ASSIGNMENT. This Agreement is binding upon and
     --------------------------------------
shall inure to the benefit of the parties hereto and upon their respective
successors and permitted assigns. Customer may not assign this Agreement without
the prior written consent of Williams, which consent shall not be unreasonably
withheld. Notwithstanding the foregoing, upon written notice, either party may
assign to a parent, affiliate, subsidiary company and/or any entity that
acquires, substantially all the shares or assets of a Party, without the consent
of the other.

24.  OUTSOURCING OF NETWORK MANAGEMENT. Should Customer establish an outsourcing
     ---------------------------------
relationship with a third party to manage its network, Williams agrees to work
with such third party as designated by Customer in order to facilitate optimum
performance of Customer's network.

                                                                    Page 7 of 26
<PAGE>

25.  ENTIRE AGREEMENT; AMENDMENTS. This Agreement contains the entire agreement
     ----------------------------
of the parties with respect to the subject matter hereof and supersedes any
prior understandings, oral agreements and/or writings between the parties
regarding the subjects within this Agreement. This Agreement may only be amended
or modified in writing signed by Customer and Williams.

                                                                    Page 8 of 26
<PAGE>

IN WITNESS WHEREOF the parties have executed this Agreement by the hand of their
respective duly authorised officers.

WILLIAMS VYVX SERVICES, A BUSINESS UNIT       iBEAM BROADCASTING CORPORATION
OF WILLIAMS COMMUNICATIONS, INC.

/s/ Laura Kenny                               /s/ Chris Dier
----------------------------------------      ----------------------------------
SIGNATURE                                     SIGNATURE

Laura Kenny                                   Chris L. Dier
----------------------------------------      ----------------------------------
PRINT NAME                                    PRINT NAME

Sr. VP & General Manager                      CFO
----------------------------------------      ----------------------------------
TITLE                                         TITLE

12-14-99                                      12/18/99
----------------------------------------      ----------------------------------
DATE                                          DATE

                                                                   Page 10 of 26
<PAGE>

                                                     Agreement No.______________

[LOGO OF WILLIAMS]

VYVX SERVICES

                   Teleport Services Agreement - Exhibit A-1

1.   SERVICE DESCRIPTION. Williams shall provide to Customer the use of the
     -------------------
Teleport for a dedicated use transmission, based on the terms contained herein,
to uplink Customer's signal(s) from the Teleport to Williams-provided space
segment on TelStar 7, transponder 15.

2.   SERVICE INITIATION. Williams shall initiate the Services described herein
     ------------------
on January 4, 2000 (the "Service Initiation Date"), provided, however that
Customer has signed this Agreement no later than December 14, 1999. Customer's
obligation to pay for the Services shall begin on the Service Initiation Date.
Loral has agreed to provide a transponder for testing purposes up to a maximum
of 15 MHz, and Williams will provide the Services during a Testing Period, which
shall begin as early as possible during the week of December 13, 1999 and
continue until January 2, 2000. Loral has informed Williams that Telstar 7,
Transponder 3 has been designated for such Testing Period and service will
switch to Telstar 7, Transponder 15 on January 4, 2000.

3.   TERM.  The term of this Exhibit A-1 shall begin on the Service Initiation
     ----
Date and shall continue for a period of thirty-six (36)  months, or until
December 31, 2002  (the "Original Term").

4.   DEMARCATION POINT FOR SERVICES. The Demarcation Point for Services
     ------------------------------
described herein shall be defined as either

          4.1  RF Chain Demarcation

               a)  X   Customer provided equipment ("CPE") demarcation - the
                  ___
                  DVB/ASI data stream from Customer Provided encapsulator to the
                  input of Williams provided modulator for all uplink services
                  from the Teleport.;

               b)      Williams provided equipment demarcation - the Telco
                  ___
                  demarcation point as defined by the local loop provider (RBOC,
                  CAP, etc.), with Williams responsible for connectivity between
                  RF Chain and local loop demarcation;

          4.2  Local Loop Demarcation

               a)      Williams provided local loop demarcation - Customer
                  ___
                  premise - Williams provisions the local loop between the
                  Customer premise and the respective local facility, whether
                  that facility is a Williams POP or 3/rd/ party POP, with the
                  demarcation point being the Customer end of the local loop;

               b)      Williams provided local loop demarcation - Teleport
                  ___
                  premise - For the Primary uplink out of New York, Williams
                  provisions the local loop between the Teleport and the
                  respective local facility, whether that facility is a Williams
                  POP or 3/rd/ party POP, with the demarcation point being the
                  local facility end of the local loop. Williams is responsible
                  for provisioning and continued operation of the local loop for
                  the Primary signal path as defined herein;

               c)      Customer provided local loop demarcation - Customer
                  ___
                  premise - Customer provisions the local loop between the
                  Customer Premise and respective local facility, whether that
                  facility is a Williams POP or 3/rd/ party POP with the
                  demarcation point being the local facility end of the local
                  loop;

               d)  X   Customer provided local loop demarcation - Teleport
                  ___
                  premise - For the Redundant uplink out of Los Angeles,
                  Customer provisions the local loop between the Teleport and
                  the respective local facility, whether that facility is a
                  Williams POP or 3/rd/ party POP, with the demarcation point
                  being the Teleport end of the local loop. Customer is
                  responsible for provisioning, payment and continued operation
                  of the local loop for the Redundant signal path as defined
                  herein.

          4.3     IXC Demarcation. Intentionally Left Blank.

          4.4     "Other."  Intentionally Left Blank.

                                                                   Page 10 of 26
<PAGE>

5.  WILLIAMS RESPONSIBILITIES. (collectively, the Service[s])
    -------------------------

                             [CHART APPEARS HERE]

Generic Signal Path diagram

5.1  Terrestrial Fiber Connectivity:

     a) Local Access. Customer Premise (City A) Intentionally Left Blank.

     b) Interexchange Fiber. Intentionally Left Blank.

     c) Local Access - Teleport (City Z)

        City Z Customer Premise:          IXC POP, 12/th/ Flr, 60 Hudson St
        City Z NPA / NXX:                 T.B.D.
        Williams Teleport:                Primary - Williams Vyvx Teleport New
                                          York, 27 Randolph Street, Carteret, NJ
                                          07008

        Circuit Type:        _________ Analog              X        Digital
                                                           --------
        Circuit Capacity:    DS-3(45 Mbps)

        Transmission Type:   _________ Simplex             X        Duplex
                                                           --------

5.2  Space Segment  (the "Transponders")

a)  Williams shall provide two Ku-band transponders (the "Transponders") on
    Telstar 7 at the 129 West orbital slot. The Transponders shall be provided
    on a "ramp-up" schedule by which Customer commits to pay for increasing
    amounts of the space segment on the Transponders. The ramp-up schedule is
    depicted on the Ramp-Up and Pricing Schedule attached hereto as Exhibit D.
    Customer's commitment for the space segment depicted on Exhibit D begins on
    the first day of the first month of the respective quarter identified. With
    appropriate notice, Customer may accelerate the ramp-up of space segment,
    together with the corresponding charges. Once an increased level of space
    segment has been activated, however, the level may not be decreased. The
    full use of both Transponders as depicted on Exhibit D beginning no later
    than [*] shall continue through the end of the Term of the Agreement. The
    second transponder is subject to the Right of First Refusal described below
    in subparagraph (c).

b)  Additional bandwidth is available under the Bursting provision in Section
    6.6 (b) herein.

c)  Williams shall provide Customer with a Right of First Refusal on a Fully-
    Protected Ku-band transponder on Telstar 7. The Right of First Refusal shall
    be activated at the time Loral Skynet receives a bona fide offer for Loral's
    last Fully Protected Ku-band transponder on Telstar 7. In order to implement
    such Right-of-First Refusal, Williams shall provide Customer with written
    notice that Loral has received such bona fide offer. If Customer chooses to
    lease the transponder in question, Customer must respond, in writing, to
    Williams within twenty (20) calendar days of Customer's receipt of Williams'
    written notice and must begin full service on the second transponder no
    later than forty-five (45) days following receipt of Williams' written
    notice. The monthly rate for the second transponder shall

    [*]   Certain information on this page has been omitted and filed separately
    with the Commission. Confidential treatment has been requested with respect
    to the omitted portions.

--------------------------------------------------------------------------------
Standard Form                                                      Page 11 of 26
--------------------------------------------------------------------------------

<PAGE>

     immediately be [*] without any ramp-up schedule as depicted on Exhibit D
     hereto.  Customer's failure to respond to Williams' notification shall be
     deemed a refusal of the second transponder.  This Right of First Refusal
     terminates when service on the second transponder begins on [*] or when
     Customer declines service under the Right of First Refusal.

(d)  Williams' Standard Satellite Terms and Conditions are attached as Exhibit C
     and are considered an integral part of the Agreement.  In the event of
     conflict, the terms of this Agreement shall supersede the terms and
     conditions in Exhibit C.

5.3  Uplinking/Downlinking. Williams shall modulate Customer's DVB/ASI data
     stream to 70 MHz, upconvert the signal to 14 GHz and then transmit the
     signal from the Teleport to the Transponder in accordance with the
     predicted performance parameters which have been established based on the
     technical specifications calculated in the New York link budget attached as
     Exhibit A-1(a). Customer acknowledges and agrees that any equipment
     substitutions or technical changes made by Customer or Williams may affect
     the attached link budget calculations and could result in corresponding
     changes to the following predicted performance specifications:

     Williams will provide a Primary signal path via its New York Teleport. The
     Customer's signal will be transmitted from New York at a calculated power
     level of 73.11 dBW to TelStar 7's Ku-band transponder 15, resulting in a
     predicted downlink EIRP of 47 dBW per carrier to CONUS. Williams
     understands that this signal will be received by Customer's downlink
     equipment utilizing a minimum 1.0 meter antenna in CONUS providing
     approximately 40 dBi gain at 12 GHz. Calculations are based on Loral Skynet
     provided specifications for TelStar 7. These values assume 6 dB of rain
     fade margin and 99.7% equipment availability. Additionally, these values
     predict an approximate data rate capacity of 39 MBps.

     Williams will provide a Redundant signal path via its Los Angeles Teleport.
     The Customer's signal will be transmitted from Los Angeles at a calculated
     power level of 70.34 dBW to TelStar 7's Ku-band transponder 15, resulting
     in a predicted downlink EIRP of 47 dBW per carrier to CONUS. Williams
     understands that this signal will be received by Customer's downlink
     equipment utilizing a minimum 1.0 meter antenna in CONUS providing
     approximately 40 dBi gain at 12 GHz. Calculations are based on Loral Skynet
     provided specifications for TelStar 7. These values assume 6 dB of rain
     fade margin and 99.7% equipment availability. Additionally, these values
     predict an approximate data rate capacity of 39 MBps.

     When Williams has actual knowledge that there is an outage to Customer's
     Service, Williams must switch signal delivery from the Primary uplink to
     the Redundant uplink as described herein. Williams will switch the signal
     within five (5) minutes upon Williams' actual knowledge of the outage. To
     accommodate Williams' switch of signal delivery, Customer shall maintain
     the delivery of the data signal to the Redundant uplink on a continuous
     basis.

     It is understood and agreed to by both parties that while these initial
     uplink systems do not support iBEAM's long term growth requirements,
     approximately [*] MBps for a CONUS service, but they do provide sufficient
     capacity for iBEAM to develop their service offering. At such time that
     both parties deem this current capacity to be insufficient to meet iBEAM's
     market requirements, both parties will work together to expand these
     systems to support iBEAM's long term growth requirements of [*] MBps. Such
     expansion of Services shall be reflected in an amendment to this Agreement.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
                                  Uplink       Uplink      Downlink     Downlink
   Direction         Data Rate    Freq.       Polarity       Freq.      Polarity       Modulation    FEC
---------------------------------------------------------------------------------------------------------
<S>                  <C>          <C>         <C>           <C>        <C>             <C>           <C>
Simplex Uplink-NY     39 MBps     14300     Horizontal     12000       Vertical       QPSK          3/4
                                   MHz                      MHz
---------------------------------------------------------------------------------------------------------
Simplex Uplink-LA     39 MBps     14300     Horizontal     12000       Vertical       QPSK          3/4
                                   MHz                      MHz
---------------------------------------------------------------------------------------------------------
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

--------------------------------------------------------------------------------
Standard Form                                                      Page 12 of 26
--------------------------------------------------------------------------------

<PAGE>

5.4  Equipment. Williams shall provide the necessary equipment to uplink
     Customer's signal(s) to/from the customer provided modem in accordance with
     this Agreement. Uplink system will operate with data modulators, frequency
     upconverters and High Power Amplifiers in a 1:N automatic redundancy mode
     where N=4. Williams will supply an environmentally controlled facility,
     including 2 19" racks for Customer's equipment and 2 POTS lines for remote
     monitoring of the Customer Provided equipment at each teleport facility.
     Facility power will be supplied at 120vac or 208vac. In the event of
     facility power failure, all critical equipment will have power supplied by
     an uninterruptable power supply with sufficient battery capacity to allow
     time for William's supplied diesel generator to be automatically switched
     on-line. All equipment provided by Williams shall remain the property of
     Williams.

5.5  Monitor. Williams will monitor the Service, and Williams will communicate
     with Customer as promptly as possible regarding any technical problems with
     Customer's Equipment, Customer's signal(s) or the Services. Williams will
     provide Customer with a monthly monitoring report in a form or format which
     is mutually agreed to by the parties.

5.6  Basic Maintenance. Williams may provide basic maintenance to Customer based
     on procedures mutually agreed upon by the parties.

6. CUSTOMER RESPONSIBILITIES.

6.1  Space Segment. Intentionally Left Blank.

6.2  Signal Delivery. Customer shall be solely responsible for delivery of its
signal(s) to/from the Demarcation Point, as defined in Section 4 above.

6.3  Uplinking/Downlinking. Intentionally Left Blank.

6.4  Customer's Equipment.

     (a) For the Services described above, Customer shall provide equipment
         ("Customer's Equipment") to both the New York and Los Angeles Teleports
         to be used in connection with Williams provision of the Services to
         Customer which will perform the following functions:

         2 Cisco 7206VXR Routers - The first router is for terminating ATM DS3
         local loop for the purpose of passing multicast and unicast data from
         Customer's broadcasting head ends into Customer's DVB encapsulators.
         The second router is for redundancy.

         2 Cisco 2924 Switches - The first switch is to terminate Customer's
         server, router, encapsulator and terminal server equipment LAN ports,
         and allows for layer 2 communication between Customer's equipment. The
         second switch is for redundancy.

         2 Skystream Encapsulators - The first encapsulator encapsulates
         Customer's data into a DVB compliant format for delivery to Williams'
         multiplexing equipment. The second encapsulator is for redundancy.

         Cisco 2511 Terminal Server - Provides out of band management and remote
         capability for controlling and configuring Customer owned equipment.

         Customer shall provide Williams with a list of equipment as well as a
         corresponding diagram(s) to be updated as required.

     (b) Customer's Equipment shall remain the property of Customer, and
         maintenance, repair, or replacement of Customer's Equipment shall be
         the sole responsibility of Customer. In the event that Customer's needs
         change with regard to rack space, the parties shall re-evaluate charges
         associated with such additional rack space. Upon

--------------------------------------------------------------------------------
Standard Form                                                      Page 13 of 26
--------------------------------------------------------------------------------

<PAGE>

         expiration or termination of this Agreement, Customer agrees to
         promptly remove Customer's Equipment. Customer's failure to do so, or
         failure to provide Williams with instructions regarding the disposition
         of Customer's Equipment within thirty (30) days of the expiration or
         termination of the Agreement shall be deemed to be an abandonment of
         Customer's Equipment, and Williams may remove Customer's Equipment and
         place it in storage for Customer. Upon payment to Williams of the total
         cost of removal, storage and shipping, Williams will ship Customer's
         Equipment to Customer.

     (c) The Teleport is staffed on a 24 x 7 basis. For security of the Teleport
         and in the best interests of Williams and its customers, access to the
         Teleport is restricted. Customer shall have access to Customer's
         Equipment for normal maintenance purposes from 08:00 to 17:00 local
         time, weekends and holidays excluded, and Customer shall give the
         Teleport a minimum of 24 hours advance notice. Customer shall have
         access to Customer's Equipment for emergency servicing purposes at any
         time, and Customer shall give a minimum of one hour advance notice.
         Customer shall provide the Teleport with a written list of all of
         Customer's employees (or contractors) who are authorized to have access
         to Customer's Equipment, and Customer shall update this list as needed.
         The Teleport may deny access to any person whose name is not on
         Customer's list of authorized persons.

     (d) The Teleport will supply adequate rack space for Customer's Equipment
         as listed above at no charge in addition to the Service Charge. Any
         additional rack space required or requested by Customer shall be
         subject to availability and to additional charge.

6.5  Uplinking/Downlinking Equipment. Customer shall be solely responsible for
     transmitting/receiving satellite signals, including all uplink/downlink
     equipment necessary for transmission/reception of satellite signals at
     locations other than the Teleport.

6.6  Data Rates and Service Charges.

     (a) Monthly Recurring Charges. The Monthly Recurring Charge ("MRC") for the
         Service shall be as described in the Ramp-Up and Pricing Schedule
         attached hereto as Exhibit D. Customer is committing to the following
         data rate ramp-up schedule for Services:

         Data Rate            Timeframe
         _______________________________
         [*]                  Qtr 1, '00
         [*]                  Qtr 2, '00
         [*]                  Qtr 3, '00
         [*]                  Qtr 4, '00
         [*]                  Qtr 1, '01
         [*]                  Qtr 2, '01
         [*]                  Qtr 3, '01
         [*]                  Qtr 4, '01
         [*]                  Qtr 1, '02
         [*]                  Qtr 2, '02
         [*]                  Qtr 3, '02
         [*]                  Qtr 4, '02

     (b) Non-Recurring Expense. The Non-Recurring Expense ("NRE") for the
         Services shall be as described in the Ramp-Up and Pricing Schedule
         attached hereto as Exhibit D. Customer shall be charged the NRE, or
         one-time fee of $[*], which sum represents $[*] installation fee for
         the two teleports ($[*] x 2 teleports) plus $[*] rack fees for two
         racks per each teleport ($[*] x 2 racks x 2 teleports).

     (c) Rack Space Charges. The Rack Space Charges for the Service shall be as
         described in the Ramp-Up and Pricing Schedule attached hereto as
         Exhibit D. Customer will not be charged any MRC for the initial two
         racks deployed at each teleport, or 4 total racks. However, as Customer
         adds racks, Customer will not incur any NRE, but Customer will incur
         MRC charges for every additional rack beyond the first four. The rates
         for these racks will vary with the number of transponders required to
         provide the service, or as the number of transponders required
         increases, the per rack rate will decrease. The Rack rates will be $[*]
         per rack, above the initial four, while the Customer requires

         [*] Certain information on this page has been omitted and filed
         separately with the Commission. Confidential treatment has been
         requested with respect to the omitted portions.

--------------------------------------------------------------------------------
Standard Form                                                      Page 14 of 26
--------------------------------------------------------------------------------

<PAGE>

              one transponder. Once the Customer adds a second transponder, the
              per rack rate will drop to $[*] per rack. If Customer adds a third
              transponder, the rate would drop to $[*] per rack.

        (d)   Bursting. The Bursting Charge for the Service shall be as
              described in the Ramp-Up and Pricing Schedule attached hereto as
              Exhibit D. Each single Bursting event is limited to a duration of
              seven (7) days, with a limitation of nine (9) days for multiple
              bursting events during any thirty-one (31) calendar day rolling
              period. If the bursting event exceeds either the seven (7) day
              limitation for a single event or any period of time during the
              nine (9) days for any thirty-one (31) calendar day period,
              Customer will be required to ramp-up its Service to the data rate
              level for the highest bandwidth actually used during the bursting
              event. For example, if Customer is at 10 MBps, and wants to burst
              to 15 MBps for nine (9) days, then Customer is required to ramp-up
              its fixed data rate to 15 MBps from 10 MBps and begin paying the
              15 MBps rate with no One-Time bursting fee associated with this
              ramp-up. Additionally, any Bursting is limited to 10 MBps above
              the current fixed data rate. If the Bursting requires bandwidth
              greater than 10 MBps higher than the current data rate, Customer
              will be required to raise its current data rate to a level
              supporting the desired bursted bandwidth. All Bursting is limited
              to the bandwidth available within a single transponder. No
              bursting capability is available if bandwidth requires an
              additional transponder.

        (e)   The Service Charge shall be invoiced thirty (30) days in arrears
              and shall be paid by Customer in U.S. Dollars within thirty (30)
              days of the date of invoice. Additionally, at the time of signing
              this Agreement, Customer shall remit to Williams the sum of
              $[*] which sum represents advance payment of one month's
              Service Charge for Transponder 1, to be held by Williams as a
              deposit (the "Deposit") throughout the Term of this Agreement.
              Further, prior to initiation of Service on Transponder 2, Customer
              shall remit to Williams the additional sum of $[*] which sum
              represents advance payment of one month's Service Charge for
              Transponder 2, to be held by Williams as a deposit throughout the
              Term of this Agreement. Such deposits, as are set forth above,
              shall be returned to Customer thirty (30) days from termination of
              this Agreement, provided however that Customer has made payment
              for all services rendered hereunder.

        (f)   Customer agrees that this is a take-or-pay commitment and that
              failure to use the Services throughout the Term does not affect
              Customer's obligation to pay the Service Charge throughout the
              Term. The parties agree that Customer's total commitment pursuant
              to this Agreement through the Term is approximately $8,850,840.
              The parties agree that this take-or-pay commitment is a portion of
              the consideration for this Agreement, and that it is not a
              penalty.

   6.7  Labor. If Williams performs labor for Customer beyond Basic Maintenance
        as described in Section 5.6 herein, at Customer's request, other than in
        connection with the Services, then Customer agrees to pay Williams for
        that labor at the rate of $100 per hour. An example of when a labor
        charge would be charged is if Williams agreed to switch out an item of
        Customer's Equipment with a replacement part provided by Customer.

   6.8  Compliance with Teleport Policies. Customer agrees that it shall comply
        with all policies and procedures of the Teleport.

7. AUTOMATIC RENEWAL.  After the expiration of the Original Term, this Exhibit
   -----------------
A-1 shall automatically renew for one-year renewal terms (a "Renewal Term").
Either party may elect not to renew the Agreement by providing the other party
with written notice a minimum of one hundred twenty (120) days prior to the end
of the Original Term or any Renewal Term.

8. ANNUAL SERVICE CHARGE ADJUSTMENT.  Upon expiration of the Original Term, and
   --------------------------------
   continuing thereafter annually on each anniversary of the Renewal Term of
   this Agreement, unless otherwise agreed to by the parties, the Service Charge
   shall be increased by an amount equal to the Consumer Price Index for All
   Urban Consumers (CPI-U), as originally published by the Bureau of Labor
   Statistics, for all items less food and energy, unadjusted for the twelve
   month period ending the previous December 31.

   [*] Certain information on this page has been omitted and filed separately
       with the Commission. Confidential treatment has been requested with
       respect to the omitted portions.

--------------------------------------------------------------------------------
Standard Form                                                      Page 15 of 26
--------------------------------------------------------------------------------

<PAGE>

Exhibit A-1(a) Primary Service - New York Link Budget

<TABLE>
<CAPTION>
     ---------------------------------------------------------------------------------------------------------------------
     Service Name                                   iBEAM

     Coverage                                       CONUS

     Uplink earth station                           Newark

     Downlink earth station                         CONUS EIRP

     Satellite name                                 Telstar 7
     <S>                                                 <C>             <C>                                 <C>
     ---------------------------------------------------------------------------------------------------------------------
     Link Input Parameters                                 Uplink          Downlink                             Units
     ---------------------------------------------------------------------------------------------------------------------
     Site latitude                                       40.73N            48.93N                             degrees
     Site longitude                                      74.17W           119.43W                             degrees
     Magnetic variation                                   13.3W             19.0E                             degrees
     Site altitude                                         0.1               0.2                                 km
     Frequency                                              14                12                                 GHz
     Polarization                                        Vertical        Horizontal
     Rain-climatic zone (* prefix Crane)                    K                 D
     Availability (average year)                          99.7              99.7                                 %
     Water vapour density                                   15                10                                 gm/m3
     Surface temperature                                    20                15                             /degrees/C
     Antenna aperture                                        7                 1                                 metres
     Antenna efficiency / gain                              65                65                         % (* prefix dBi)
     Coupling loss                                           4               0.1                                dB
     Antenna tracking / mispoint error                     0.1               0.1                                dB
     LNB noise figure / temp                                                 0.8                         dB (* prefix K)
     Antenna noise                                                            50                                 K
     Adjacent carrier interference                          28                28                                dB
     Adjacent satellite interference                        28                28                                dB
     Cross polarization interference                        28                28                                dB
     Uplink station HPA output back-off                      1                                                  dB
     Number of carriers / HPA                                1
     HPA C/IM (up)                                          30                                                  dB
     Uplink power control                                    6                                                  dB
     Uplink filter truncation loss                           0                                                  dB

     ---------------------------------------------------------------------------------------------------------------------
     Satellite Input Parameters                           Value                                                Units
     ---------------------------------------------------------------------------------------------------------------------
     Satellite longitude                                  129W                                               degrees
     Transponder type                                     TWTA
     Receive G/T                                           1.4                                                 dB/K
     Saturation flux density                               -96                                                 dBW/m2
     Satellite attenuator pad                                6                                                  dB
     Transmit EIRP at saturation                            47                                                 dBW
     Transponder bandwidth                                  36                                                 MHz
     Input back off total                                    1                                                  dB
     Output back off total                                2.49                                                  dB
     Intermodulation interference                         12.5                                                  dB

     ---------------------------------------------------------------------------------------------------------------------
     Carrier/Link Input Parameters                        Value                                                Units
     ---------------------------------------------------------------------------------------------------------------------
     Modulation                                           4-PSK
     Required bit error rate performance                   10-7
     Required Eb/No without FEC coding                    11.31                                                 dB
     Required Eb/No with FEC coding                         5.5                                                 dB
</TABLE>

--------------------------------------------------------------------------------
Standard Form                                                      Page 16 of 26
--------------------------------------------------------------------------------

<PAGE>

<TABLE>
     <S>                                                        <C>           <C>                            <C>
     Information rate                                              39                                           Mbps
     Overhead                                                       5                                            %
     FEC code rate                                               0.75
     Spread factor                                                1.2
     Carrier spacing factor                                       1.3
     Bandwidth allocation step size                               0.1                                           MHz
     System margin                                                  1                                           dB
     ---------------------------------------------------------------------------------------------------------------------
     Calculations at Saturation                                 Value                                          Units
     ---------------------------------------------------------------------------------------------------------------------
     Gain 1m2                                                   44.38                                          dB/m2
     Uplink C/No                                                95.52                                          dB.Hz
     Downlink C/No                                              88.78                                          dB.Hz
     Total C/No                                                 87.94                                          dB.Hz
     Uplink EIRP for saturation                                 74.11                                           dBW
     ---------------------------------------------------------------------------------------------------------------------
     General Calculations                                      Uplink          Downlink                         Units
     ---------------------------------------------------------------------------------------------------------------------
     Elevation                                                  17.59             33.1                        degrees
     True azimuth                                              245.31           192.61                        degrees
     Compass bearing                                           258.61           173.61                        degrees
     Path distance to satellite                              39794.08         38339.27                          km
     Propagation time delay                                      0.13             0.13                        seconds
     Antenna efficiency                                            65               65                           %
     Antenna gain                                               58.36            40.12                          dBi
     Availability (average year)                                 99.7             99.7                           %
     Link downtime (average year)                              26.298           26.298                         hours
     Availability (worst month)                                    99               99                           %
     Link downtime (worst month)                                7.305            7.305                         hours
     Spectral power density                                    -24.38             5.38                       dBW/4kHz
     ---------------------------------------------------------------------------------------------------------------------
     Uplink Calculation                                         Clear           Rain Up          Rain Dn       Units
     ---------------------------------------------------------------------------------------------------------------------
     Uplink transmit EIRP                                       73.11            73.11            73.11         dBW
     Transponder input back-off (total)                             1                1                1         dB
     Input back-off per carrier                                    -1               -1               -1         dB
     Mispoint loss                                                0.1              0.1              0.1         dB
     Free space loss                                           207.37           207.37           207.37         dB
     Atmospheric absorption                                      0.43             0.43             0.43         dB
     Tropospheric scintillation fading                           0.69             0.69             0.69         dB
     Atmospheric losses total                                    1.13             1.13             1.13         dB
     Total path loss (excluding rain)                          208.59           208.59           208.59         dB
     Rain attenuation                                               0              3.6                0         dB
     Uplink Power Control                                           0                6                0         dB
     Uncompensated Rain Fade                                        0                0                0         dB
     C/No (thermal)                                             94.52            94.52            94.52        dB.Hz
     C/N (thermal)                                              19.37            19.37            19.37         dB
     C/ACI                                                         28               28               28         dB
     C/ASI                                                         28               28               28         dB
     C/XPI                                                         28               28               28         dB
     C/IM                                                          30               30               30         dB
     Eb/(No*Io)                                                 16.64            16.64            16.64         dB
</TABLE>

--------------------------------------------------------------------------------
Standard Form                                                      Page 17 of 26
--------------------------------------------------------------------------------

<PAGE>

<TABLE>
<CAPTION>
   ------------------------------------------------------------------------------------------------------------------
   Downlink Calculation                                 Clear            Rain Up          Rain Dn            Units
   ------------------------------------------------------------------------------------------------------------------
   <S>                                                <C>               <C>               <C>                <C>
   Satellite EIRP total                                   47                 47               47              dBW
   Transponder output back-off (total)                  2.49               2.49             2.49              dB
   Output back-off per carrier                         -2.49              -2.49            -2.49              dB
   Satellite EIRP per carrier                          44.51              44.51            44.51              dBW
   Mispoint loss                                         0.1                0.1              0.1              dB
   Free space loss                                     205.7              205.7            205.7              dB
   Atmospheric absorption                               0.14               0.14             0.14              dB
   Tropospheric scintillation fading                    0.32               0.32             0.32              dB
   Atmospheric losses total                             0.46               0.46             0.46              dB
   Total path loss (excluding rain)                   206.27             206.27           206.27              dB
   Rain attenuation                                        0                  0             0.64              dB
   Noise increase due to precipitation                     0                  0             1.15              dB
   Downlink degradation (DND)                              0                  0             1.79              dB
   Total system noise                                 114.12             114.12            148.8               K
   Figure of merit (G/T)                               19.45              19.45            18.29             dB/K
   C/No (thermal)                                      86.29              86.29             84.5             dB.Hz
   C/N (thermal)                                       11.13              11.13             9.35              dB
   C/ACI                                                  28                 28               28              dB
   C/ASI                                                  28                 28               28              dB
   C/XPI                                                  28                 28               28              dB
   C/IM                                                 12.5               12.5             12.5              dB
   Eb/(No*Io)                                           7.63               7.63             6.54              dB
   ------------------------------------------------------------------------------------------------------------------
   Totals per Carrier (End-to-End)                     Clear            Rain Up          Rain Dn            Units
   ------------------------------------------------------------------------------------------------------------------
   C/No (thermal)                                      85.68              85.68            84.09             dB.Hz
   C/N (thermal)                                       10.53              10.53             8.93              dB
   C/ACI                                               24.99              24.99            24.99              dB
   C/ASI                                               24.99              24.99            24.99              dB
   C/XPI                                               24.99              24.99            24.99              dB
   C/IM                                                12.42              12.42            12.42              dB
   C/(No*Io)                                           83.24              83.24            82.26             dB.Hz
   C/(N*I)                                              8.09               8.09             7.11              dB
   Eb/(No*Io)                                           7.12               7.12             6.14              dB
   System margin                                           1                  1                1              dB
   Net Eb/(No*Io)                                       6.12               6.12             5.14              dB
   Required Eb/(No*Io)                                   5.5                5.5              5.5              dB
   Excess margin                                        0.62               0.62            -0.36              dB
   ------------------------------------------------------------------------------------------------------------------
   Earth Station Power Requirements                     Value                                                Units
   ------------------------------------------------------------------------------------------------------------------
   EIRP per carrier                                    73.11                                                  dBW
   HPA power per carrier                               14.75                                                  dBW
   Uplink power control                                    6                                                  dB
   HPA output back off                                     1                                                  dB
   Waveguide loss                                          4                                                  dB
   Filter truncation loss                                  0                                                  dB
   Number of HPA carriers                                  1
   Total HPA power required                            25.75                                                  dBW
   Required HPA power capability                      376.24                                                    W
   Spectral power density                             -24.38                                                dBW/4kHz
   ------------------------------------------------------------------------------------------------------------------
</TABLE>

 Standard Form                                                  Page 18 of 26
<PAGE>

<TABLE>
<CAPTION>
    ---------------------------------------------------------------------------------------------------------------------
    Space Segment Utilization                                  Value                                         Units
    ---------------------------------------------------------------------------------------------------------------------
    <S>                                                        <C>                                           <C>
    Information rate (inc overhead)                            40.95                                          Mbps
    Transmit rate                                               54.6                                          Mbps
    Symbol rate                                                 27.3                                         MBaud
    Occupied bandwidth                                         32.76                                           MHz
    Noise bandwidth                                            75.15                                         dB.Hz
    Minimum allocated bandwidth required                       35.49                                           MHz
    Allocated transponder bandwidth                             35.5                                           MHz
    Allocated transponder bandwidth                            98.61                                            %
    Carriers per transponder by bandwidth usage                 1.01
    Used transponder power                                     44.51                                           dBW
    Used transponder power                                       100                                            %
    ---------------------------------------------------------------------------------------------------------------------
</TABLE>

Standard Form                                                    Page 19 of 26
<PAGE>

Exhibit A-1(b) Redundant Service - Los Angeles Link Budget
<TABLE>
<CAPTION>
    -------------------------------------------------------------------------------------------------------------------
    Service Name                                           iBEAM
    Coverage                                               CONUS
    Uplink earth station                                   Steele Valley
    Downlink earth station                                 CONUS EIRP
    Satellite name                                         Telstar 7
    ------------------------------------------------------------------------------------------------------------------
    <S>                                                     <C>             <C>                         <C>
    Link Input Parameters                                   Uplink          Downlink                     Units
    ------------------------------------------------------------------------------------------------------------------
    Site latitude                                           33.95N           48.93N                     degrees
    Site longitude                                          117.40W          119.43W                    degrees
    Magnetic variation                                       13.7E            19.0E                     degrees
    Site altitude                                             0.2              0.2                         km
    Frequency                                                  14               12                        GHz
    Polarization                                           Vertical        Horizontal
    Rain-climatic zone (* prefix Crane)                        D                D
    Availability (average year)                              99.7             99.7                         %
    Water vapour density                                       10                5                       gm/m3
    Surface temperature                                        20               15                     (degrees)C
    Antenna aperture                                          3.5                1                       metres
    Antenna efficiency / gain                                  65               65                  % (* prefix dBi)
    Coupling loss                                               3              0.1                         dB
    Antenna tracking / mispoint error                         0.1              0.1                         dB
    LNB noise figure / temp                                                    *35                  dB (* prefix K)
    Antenna noise                                                               50                         K
    Adjacent carrier interference                              28               28                         dB
    Adjacent satellite interference                            28               28                         dB
    Cross polarization interference                            28               28                         dB
    Uplink station HPA output back-off                          1                                          dB
    Number of carriers / HPA                                    1
    HPA C/IM (up)                                              30                                          dB
    Uplink power control                                        6                                          dB
    Uplink filter truncation loss                               0                                          dB
    ---------------------------------------------------------------------------------------------------------------
    Satellite Input Parameters                               Value                                       Units
    ---------------------------------------------------------------------------------------------------------------
    Satellite longitude                                       129W                                       degrees
    Transponder type                                          TWTA
    Receive G/T                                                1.4                                         dB/K
    Saturation flux density                                    -96                                        dBW/m2
    Satellite attenuator pad                                     6                                          dB
    Transmit EIRP at saturation                                 47                                         dBW
    Transponder bandwidth                                       36                                         MHz
    Input back off total                                         1                                          dB
    Output back off total                                     2.49                                          dB
    Intermodulation interference                              12.5                                          dB
    ---------------------------------------------------------------------------------------------------------------
    Carrier/Link Input Parameters                            Value                                        Units
    ---------------------------------------------------------------------------------------------------------------
    Modulation                                               4-PSK
    Required bit error rate performance                      10-7
    ---------------------------------------------------------------------------------------------------------------
</TABLE>

Standard Form                                                   Page 20 of 26
<PAGE>

<TABLE>
     <S>                                                        <C>              <C>             <C>           <C>
     Required Eb/No without FEC coding                             11.31                                          dB
     Required Eb/No with FEC coding                                  5.5                                          dB
     Information rate                                                 30                                         Mbps
     Overhead                                                          5                                          %
     FEC code rate                                                  0.75
     Spread factor                                                   1.2
     Carrier spacing factor                                          1.3
     Bandwidth allocation step size                                  0.1                                         MHz
     System margin                                                     1                                          dB
     ------------------------------------------------------------------------------------------------------------------------
     Calculations at Saturation                                     Value                                       Units
     ------------------------------------------------------------------------------------------------------------------------
     Gain 1m2                                                      44.38                                        dB/m2
     Uplink C/No                                                   95.52                                        dB.Hz
     Downlink C/No                                                 89.92                                        dB.Hz
     Total C/No                                                    88.86                                        dB.Hz
     Uplink EIRP for saturation                                    72.72                                         dBW
     ------------------------------------------------------------------------------------------------------------------------
     General Calculations                                          Uplink          Downlink                     Units
     ------------------------------------------------------------------------------------------------------------------------
     Elevation                                                     48.61             33.1                      degrees
     True azimuth                                                 200.18           192.61                      degrees
     Compass bearing                                              186.48           173.61                      degrees
     Path distance to satellite                                 37165.77         38339.27                         km
     Propagation time delay                                         0.12             0.13                      seconds
     Antenna efficiency                                               65               65                         %
     Antenna gain                                                  52.34            40.12                        dBi
     Availability (average year)                                    99.7             99.7                         %
     Link downtime (average year)                                 26.298           26.298                       hours
     Availability (worst month)                                       99               99                         %
     Link downtime (worst month)                                   7.305            7.305                       hours
     Spectral power density                                       -19.99             5.14                      dBW/4kHz
     ------------------------------------------------------------------------------------------------------------------------
     Uplink Calculation                                            Clear          Rain Up        Rain Dn        Units
     ------------------------------------------------------------------------------------------------------------------------
     Uplink transmit EIRP                                          70.34            70.34         70.34          dBW
     Transponder input back-off (total)                                1                1             1           dB
     Input back-off per carrier                                    -2.38            -2.38         -2.38           dB
     Mispoint loss                                                   0.1              0.1           0.1           dB
     Free space loss                                              206.77           206.77        206.77           dB
     Atmospheric absorption                                         0.13             0.13          0.13           dB
     Tropospheric scintillation fading                              0.19             0.19          0.19           dB
     Atmospheric losses total                                       0.32             0.32          0.32           dB
     Total path loss (excluding rain)                              207.2            207.2         207.2           dB
     Rain attenuation                                                  0             0.85             0           dB
     Uplink Power Control                                              0                6             0           dB
     Uncompensated Rain Fade                                           0                0             0           dB
     C/No (thermal)                                                93.15            93.15         93.15         dB.Hz
     C/N (thermal)                                                 19.13            19.13         19.13           dB
     C/ACI                                                            28               28            28           dB
     C/ASI                                                            28               28            28           dB
     C/XPI                                                            28               28            28           dB
     ------------------------------------------------------------------------------------------------------------------------
</TABLE>

Standard Form                                                      Page 21 of 26
<PAGE>

<TABLE>
     <S>                                                          <C>              <C>           <C>            <C>
     C/IM                                                             30               30            30           dB
     Eb/(No*Io)                                                    16.49            16.49         16.49           dB
     ------------------------------------------------------------------------------------------------------------------------
     Downlink Calculation                                          Clear           Rain Up        Rain Dn       Units
     ------------------------------------------------------------------------------------------------------------------------
     Satellite EIRP total                                             47               47            47          dBW
     Transponder output back-off (total)                            2.49             2.49          2.49           dB
     Output back-off per carrier                                   -3.87            -3.87         -3.87           dB
     Satellite EIRP per carrier                                    43.13            43.13         43.13          dBW
     Mispoint loss                                                   0.1              0.1           0.1           dB
     Free space loss                                               205.7            205.7         205.7           dB
     Atmospheric absorption                                         0.11             0.11          0.11           dB
     Tropospheric scintillation fading                              0.22             0.22          0.22           dB
     Atmospheric losses total                                       0.33             0.33          0.33           dB
     Total path loss (excluding rain)                             206.13           206.13        206.13           dB
     Rain attenuation                                                  0                0          0.64           dB
     Noise increase due to precipitation                               0                0          1.41           dB
     Downlink degradation (DND)                                        0                0          2.05           dB
     Total system noise                                            90.46            90.46        125.14           K
     Figure of merit (G/T)                                         20.45            20.45         19.05          dB/K
     C/No (thermal)                                                86.05            86.05         84.01         dB.Hz
     C/N (thermal)                                                 12.04            12.04          9.99           dB
     C/ACI                                                            28               28            28           dB
     C/ASI                                                            28               28            28           dB
     C/XPI                                                            28               28            28           dB
     C/IM                                                           12.5             12.5          12.5           dB
     Eb/(No*Io)                                                     8.11             8.11          6.96           dB
     ------------------------------------------------------------------------------------------------------------------------
     Totals per Carrier (End-to-End)                               Clear           Rain Up        Rain Dn       Units
     ------------------------------------------------------------------------------------------------------------------------
     C/No (thermal)                                                85.28            85.28         83.51         dB.Hz
     C/N (thermal)                                                 11.27            11.27          9.49           dB
     C/ACI                                                         24.99            24.99         24.99           dB
     C/ASI                                                         24.99            24.99         24.99           dB
     C/XPI                                                         24.99            24.99         24.99           dB
     C/IM                                                          12.42            12.42         12.42           dB
     C/(No*Io)                                                     82.51            82.51         81.48         dB.Hz
     C/(N*I)                                                        8.49             8.49          7.47           dB
     Eb/(No*Io)                                                     7.52             7.52           6.5           dB
     System margin                                                     1                1             1           dB
     Net Eb/(No*Io)                                                 6.52             6.52           5.5           dB
     Required Eb/(No*Io)                                             5.5              5.5           5.5           dB
     Excess margin                                                  1.02             1.02             0           dB
     ------------------------------------------------------------------------------------------------------------------------
     Earth Station Power Requirements                               Value                                       Units
     ------------------------------------------------------------------------------------------------------------------------
     EIRP per carrier                                              70.34                                         dBW
     HPA power per carrier                                            18                                         dBW
     Uplink power control                                              6                                          dB
     HPA output back off                                               1                                          dB
     Waveguide loss                                                    3                                          dB
     ------------------------------------------------------------------------------------------------------------------------
</TABLE>

Standard Form                                                      Page 22 of 26
<PAGE>

<TABLE>
     <S>                                                <C>                                                    <C>
     Filter truncation loss                                            0                                          dB
     Number of HPA carriers                                            1
     Total HPA power required                                         28                                         dBW
     Required HPA power capability                                 631.6                                          W
     Spectral power density                                       -19.99                                       dBW/4kHz
     ------------------------------------------------------------------------------------------------------------------------
     Space Segment Utilization                                      Value                                        Units
     ------------------------------------------------------------------------------------------------------------------------
     Information rate (inc overhead)                                31.5                                         Mbps
     Transmit rate                                                    42                                         Mbps
     Symbol rate                                                      21                                        MBaud
     Occupied bandwidth                                             25.2                                         MHz
     Noise bandwidth                                               74.01                                        dB.Hz
     Minimum allocated bandwidth required                           27.3                                         MHz
     Allocated transponder bandwidth                                27.3                                         MHz
     Allocated transponder bandwidth                               75.83                                          %
     Carriers per transponder by bandwidth usage                    1.32
     Used transponder power                                        43.13                                         dBW
     Used transponder power                                        72.85                                          %
     Carriers per transponder by power usage                        1.37
     Carriers per transponder limited by:-              Transponder bandwidth [1.32 carriers]
     ------------------------------------------------------------------------------------------------------------------------
</TABLE>

Standard Form                                                      Page 23 of 26
<PAGE>

                                   EXHIBIT B

                  CUSTOMER'S CONTACTS FOR OPERATIONAL NOTICES

Customer Contact No. 1

Name:  iBEAM Network Operations
Telephone: 877-523-1700 or 408-523-1700

Customer Contact No. 2

Name:  Pet Kumler
Title: Director, Network Operations
Telephone: 408-523-1710

Customer Contact No. 3

Name:  Joseph Thurman
Title: Executive Director Operations
Telephone: 408-523-1683

Standard Form                                                     Page 24 of 26
<PAGE>

                                   Exhibit C

                         Satellite Terms & Conditions

1.  Application of Terms and Conditions; Exclusion of Other or Additional Terms
    ---------------------------------------------------------------------------
    These Standard Terms and Conditions are applicable to all Communications
    Services provided by Williams to the Customer ("Customer") pursuant to this
    Service Agreement ("Agreement"). COMMUNICATIONS SERVICES WILL BE PROVIDED ON
    THE FOLLOWING TERMS AND CONDITIONS AND THE TERMS AND CONDITIONS OF THE
    AGREEMENT AND IN THE EVENT OF ANY CONFLICTS BETWEEN THE TERMS AND CONDITIONS
    OF THIS EXHIBIT C AND THE TERMS AND CONDITIONS OF THE AGREEMENT, THE TERMS
    AND CONDITIONS OF THIS EXHIBIT C SHALL CONTROL.

2.  Definitions  For purposes of this Agreement, the following terms shall have
    -----------
    the definitions set forth in this Section 2, as follows:

    "Applicable Carrier" shall mean the person, corporation, partnership, firm
     ------------------
    or other entity in control of the satellite, satellite transponder,
    microwave link, uplink, downlink, analog copper and/or fiber optic
    facilities being used to provide the Communications Services.

    "Applicable Carrier's Tariff" shall mean the Applicable Carrier's Tariff for
     ---------------------------
    Allowances for Interruptions, setting forth the policies of the Applicable
    Carrier with regard to credits, allowances, refunds or payments in the event
    of an interruption of Communications Services caused by the Applicable
    Carrier or the Applicable Carrier's equipment, as well as the policies of
    the Applicable Carrier with regard to payments, penalties and charges for
    cancellation of Communications Services by the Customer.

    "Communications Services" shall include (without limitation) satellite
     -----------------------
    transponder, transponder uplink/downlink, fiber optic, telephone line and/or
    microwave capacity, as applicable to the services requested by Customer.

    "Customer Agent" shall mean any person, corporation, partnership, firm or
     --------------
    other entity transmitting signals to, from or via a satellite transponder or
    using other Communications Services with the permission of or on behalf of a
    Customer.

    "Exchange Rates" shall mean the rates at which US dollars are exchanged for
     --------------
    the relevant foreign currency as published in The Wall Street Journal, U.S.
    Edition.

    "Uplink/Downlink Agent" shall mean the person, corporation, partnership,
     ---------------------
    firm or other entity engaged by Customer to transmit or receive Customer's
    signal to the satellite transponder being used to provide the Communications
    Services.

3.  Provision of Communications Services  Williams shall provide Customer, and
    ------------------------------------
    Customer shall accept from Williams as specified by Customer on the terms
    and conditions set forth herein.

4.  International Service   Rates for international Communications Services are
    ---------------------
    priced to Customer based on the Exchange Rate at the time service is
    contracted for, subject to monthly adjustments to reflect changes in the
    applicable published Exchange Rate on the first day of each month. Should
    the carrier of non-U.S. Communications Services modify its tariff or the
    technical parameters for Communications Services during the term of this
    Agreement, Williams shall have the right correspondingly to modify the
    tariff or rate or technical parameters of its Communications Services to
    Customer.

5.  Obligations of the Customer Customer shall make all arrangements with other
    ---------------------------
    common carriers, stations, networks, sponsors, music licensing
    organizations, performers, representatives or other parties for the
    authorizations necessary to avail itself of the Communications Services.
    Williams shall be indemnified, defended and saved harmless by Customer from
    any liability arising out of failure to make such arrangements. Customer
    shall not use Communications Services for an unlawful purpose, including
    (without limitation) any use which constitutes a violation of any state or
    federal obscenity laws. Williams shall have the right to terminate
    Communications Services provided hereunder without liability to Customer in
    the event that Williams, its officers, employees or agents, or the
    Applicable Carrier, its officers, employees or agents, becomes the subject
    of any investigation, or is threatened with or made a party to any
    administrative proceeding or litigation, related to the alleged illegal use
    of the Communications Services by the Customer.

6.  Non-Interference for Satellite Transmissions and Use of Other Communications
    ----------------------------------------------------------------------------
    Services
    --------

    (a) All transmissions to and from the satellite transponder or other use of
        Communications Services made by Customer and/or a Customer Agent in
        connection with use of Communications Services pursuant to this
        Agreement shall comply with all of the rules and regulations of the
        Federal Communications Commission ("FCC"), other governmental agencies,
        carriers or other authorities applicable to Customer and/or each
        Customer Agent with respect to the Satellite Transponder or the
        Communications Services. Customer and each Customer Agent will follow
        the established practices and procedures of the Applicable Carrier for
        frequency coordination and will not utilize the Communications Services
        in a manner which, under standard engineering practice, would or might
        interfere with the use of or cause physical harm to any satellite
        transponder, the satellite or any other communications facility. If, in
        Williams, the Applicable Carrier's or other carrier's judgment,
        Customer's or any Customer Agent's transmissions to or from or
        utilization of the satellite transponder or other Communications
        Services (whether directly or through a Customer Agent), interferes with
        or causes physical harm to any satellite transponder, the satellite or
        any other communications facility, Customer agrees to cease or cause to
        be ceased immediately all transmissions to and utilization of the
        satellite transponder or other Communications Services upon notice
        thereof by Williams or the carrier until such time as such transmission
        or utilization shall not, in Williams' or the carrier's

Standard Form                                                      Page 25 of 26
<PAGE>

          judgment, interfere with and shall not cause physical harm to any
          satellite transponder, the satellite or any other communications
          facility. In such event and in addition to Williams' other rights and
          remedies hereunder, Customer agrees that its rights to use a portion
          of the satellite transponder or other Communications Services in
          accordance with this Agreement shall be subject to Williams' right to
          terminate Communications Services and all of Customer's rights
          hereunder without liability to Customer and to take such action as may
          be necessary, appropriate or desirable to terminate any such
          interference or physical harm by Customer and each Customer Agent.
               (b)  To ensure that Customer and each Uplink/Downlink Agent's
                    transmissions to and from the satellite transponder and
                    Customer's utilization of the Communications Services
                    (whether directly or through an Uplink/Downlink Agent) does
                    not so interfere with or cause physical harm to any
                    transponder or satellite, Customer and each Uplink/Downlink
                    Agent, prior to any transmission to the satellite
                    transponder, must satisfy the uplink access requirements set
                    forth by the Applicable Carrier. Further, without limiting
                    the generality of the foregoing, if Customer's use involves
                    video broadcasting, Customer agrees to comply in all
                    respects with Section 25.308 of the FCC rules regarding the
                    Automatic Transmitter Identification System.

7.   Pre-emptible Nature of Communications Services The satellite transponder
     ----------------------------------------------
     and other Communications Services provided herein are not normally
     protected, other than as provided in Section 8 herein, and may be preempted
     and Customer acknowledges and agrees that it sometimes may be necessary or
     advisable for the Applicable Carrier or other carrier deliberately to
     preempt or interrupt Customer's use of the Communications Services in order
     to protect the overall performance of each satellite, fiber optic network
     or other communications facility, or other technical reasons. Such
     decisions shall be made by the owners or operators of the satellite, fiber
     optic network or other communications facility at their sole discretion and
     Williams shall have no liability to Customer as a result of such decisions.

9.   Fully Protected Transponder. "Fully-Protected" transponders, in the event
     ---------------------------
     of failure, shall be restored by the Applicable Carrier using spare
     equipment that may be available on the satellite at the time of failure, or
     on a comparable transponder on the same satellite, or on another Applicable
     Carrier satellite then in orbit, except when the failure is caused by
     Customer. Fully Protected transponders are not preemptible.

9.   Allowances for Interruption
     ---------------------------
     (a)  Allowances for interruption of Communications Service will be in
          accordance with the Applicable Carrier's Tariff. In the absence of an
          Applicable Carrier's Tariff, Williams' policy shall apply as follows:
          (i) When an interruption of a Communications Service occurs for a
          period of 60 seconds or more, credit is allowed on the basis of 5
          minutes for each 5 consecutive minutes or fraction thereof of
          interruption; (ii) Two or more interruptions occurring during any
          period of 5 consecutive minutes shall be considered one interruption;
          and (iii) An interruption of either the audio or visual portion of the
          television channel shall be considered an interruption of both.
     (b)  An allowance will not be made where Customer fails to transmit or
          receive a television, data or voice channel as a result of, or
          attributable in whole or in part to: (i) Customer's negligence or
          willful acts, or the negligence or willful acts of its officers,
          directors, agents, employees, subsidiaries, parents, affiliates,
          customers, authorized users and viewing subscribers, or any of them;
          (ii) The failure of local channels, transmission lines or equipment
          provided by Customer, its subsidiaries, parents, affiliates,
          authorized users, viewing subscribers, Customer Agents or any of them;
          (iii) Sun outages, heavy precipitation or heavy cloud cover; or (iv)
          Customer's failure to use the channel ordered.
     (c)  In no event shall Williams be liable for allowances for interruption
          unless the claim for such allowance is made within fifteen (15) days
          after the date of the interruption.

10.  Denial of Service   For any violation of the Communications Act of 1934, as
     -----------------
     amended, or any Rules, Regulations or Orders of the FCC or of the terms of
     this Agreement by Customer, or the imposition by the FCC or any
     governmental authority having jurisdiction of conditions on the provision
     of Communications Services which are unacceptable to Williams or the
     Applicable Carrier, Williams may either temporarily deny service or
     terminate the service without incurring liability to Customer.

11.  Cancellation by Customer  Except as specifically provided herein,
     -------------------------
     Communications Service may only be canceled upon the occurrence of all the
     following: written notice to Williams; payment of total hourly, monthly or
     annual charges due for service previously provided and for scheduled
     service that has not been provided as of the date of cancellation; and
     payment of all other sums otherwise due through the term of the Fixed-Term
     Service to be provided pursuant to this Agreement.

12.  Title to Communications Facilities  This Agreement shall not, and shall not
     ----------------------------------
     be deemed to, convey to Customer title of any kind to any of the satellite
     transponders, transponder uplinks/downlinks, fiber optic links, telephone
     lines, microwave facilities or other facilities utilized in connection with
     the Communications Services.

Standard Form                                                      Page 26 of 26
<PAGE>

EXHIBIT D Ramp-Up and Pricing Schedule

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
CONUS Solution                         QTR 1   QTR 2   QTR 3   QTR 4   QTR 1   QTR 2  QTR 3  QTR 4  QTR 1  QTR 2   QTR 3   QTR
                                       `00     `00     `00     `00     `01     `01    `01    '01    `02     `02    `02     '02
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>     <C>     <C>     <C>     <C>     <C>    <C>    <C>    <C>    <C>     <C>    <C>
Service Parameters                      [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
   Aggregate Data Rate                  [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
   XP #1 Data Rate                      [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
   XP #1 Power Required in MHz          [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
   XP #2 Data Rate                      [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
   XP #2 Power Required in MHz          [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
------------------------------------------------------------------------------------------------------------------------------------
Service Fees                     NRE      Monthly Recurring Charges
------------------------------------------------------------------------------------------------------------------------------------
Uplink with Redundancy
   Total Uplink                  [*]    [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
   Rack Charges                  [*]    [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
Space Segment
   XP #1 - TelStar 7 Ku - 36 MHz        [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
   XP #2 First Right of Refusal         [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
   XP #2 - TelStar 7 Ku - 36 MHz        [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
------------------------------------------------------------------------------------------------------------------------------------
                                 [*]    [*]     [*]     [*]     [*]     [*]     [*]    [*]    [*]    [*]     [*]    [*]     [*]
                                                                                              Approximate Term Value      $8,850,840
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
Bursting - 24 hour notice is required to burst with a One-Time fee of [*]  per event.
-----------------------------------------------------------------------------------------------------------------
<S>                                                     <C>
Transponder Assumptions                                 Additional Charges Not Included Above...
XP Protection = Fully Protected                         Rack Space
Full Transponder - Full Power & Bandwidth               2 Racks Per Teleport Included in Monthly Uplink Charges
Data rate assumes Proportional Power & Bandwidth        $[*] per rack, per month, per location for the 1/st/ XP
Data rate can only ramp-up                              $[*] per rack, per month, per location for 2/nd/ XP
Term is 3 Years                                         $[*] per rack, per month, per location for the 3/rd/ XP
                                                        Pricing does not include local loop charges
-----------------------------------------------------------------------------------------------------------------
</TABLE>

Note: Information in this document marked with an "[*]" has been omitted and
filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions.

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