Document:

<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 $[*]. 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            [*]
------------------------------------------------------------------------------------------------------------------------------------
</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.PURCHASE AGREEMENT

8x8, Inc.

 

Common Stock Purchase
Agreement

 

January 24, 2000

 

TABLE OF CONTENTS

Page

1.Purchase and Sale of Stock*
1.1Sale and Issuance of Common Stock*

1.2Closings and Deliveries*

2.Representations and Warranties of the Company*
2.1Organization and Standing*

2.2Corporate Power; Authorization*

2.3Issuance and Delivery of the Shares*

2.4SEC Documents; Financial Statements*

2.5Government Consents*

2.6No Material Adverse Change*

2.7Authorized Capital Stock*

2.8No Dividends*

2.9Litigation and Compliance with Laws*

2.10Intellectual Property*

2.11Taxes*

2.12Title to Property and Assets*

2.13Material Contracts*

3.Representations, Warranties and Covenants of the
Investor*
3.1Authorization*

3.2Independent Investment Decision*

3.3Investment Intent*

3.4Registration or Exemption Requirements*

3.5Legends*

4.Conditions of Investor's Obligations at Closing*
4.1Representations and Warranties*

4.2Covenants*

4.3Qualifications*

4.4Execution of Investor Rights Agreement*

4.5License Agreement and Development Agreement*

4.6Board of Directors*

4.7Closing Deliveries*

5.Conditions of the Company's Obligations at
Closing*
5.1Representations and Warranties*

5.2Covenants*

5.3Qualifications*

6.Covenants of the Investor and of the Company*
6.1HSR Clearance*

6.2Conduct of Business of the Company*

6.3Use of Proceeds*

7.Right of First Refusal*
7.1Company's Right of First Refusal*

7.2Notice of Proposed Transfer*

7.3Exercise of Right of First Refusal*

7.4Purchase Price*

7.5Payment*

7.6Right to Transfer*

8.Restrictions on Transfer*

9.Standstill Agreement*

10.Lock-up Agreement*

11.Termination*
11.1Mutual Consent*

11.2Investor Termination*

11.3Company Termination*

11.4Termination Due to Governmental Action*

12.Indemnification*
12.1Survival of Representations and Warranties*

12.2Indemnification by the Company*

12.3Termination of Indemnification*

13.Miscellaneous*
13.1Transaction Expenses*

13.2Successors and Assigns; No Third-Party Beneficiary
Status*

13.3Governing Law*

13.4Counterparts*

13.5Titles and Subtitles*

13.6Notices*

13.7Finder's Fee*

13.8Amendments and Waivers*

13.9Severability*

13.10Construction*

13.11Entire Agreement*

13.12Press Releases*

8x8, INC.

COMMON STOCK PURCHASE AGREEMENT

THIS COMMON STOCK PURCHASE AGREEMENT (the
"Agreement") is made as of January 24, 2000, by and between 8x8,
Inc. a Delaware corporation (the "Company"), and STMicroelectronics NV, a
company organized under the laws of the Netherlands, having an office at ICC
Bloc A, Route Pre-bois, 1215 Geneve, Switzerland (the
"Investor").

RECITALS

A.The Investor wishes to purchase from the Company
3,700,000 shares of the common stock of the Company, par value $0.001 per share
(the "Common Stock"), and the Company wishes to issue and sell such
Common Stock to the Investor, on the terms set forth in this Agreement at the
Closing (as defined herein). 

B.Effective as of the Closing, the Investor and the
Company shall execute an Investor Rights Agreement ("Rights Agreement"),
substantially in the forms attached hereto as Exhibit A, to promote
their mutual interests by providing for certain rights and imposing certain
restrictions on the rights, privileges and preferences of the Investor as a
holder of the capital stock of the Company.  

C.STMicroelectronics, Inc. and the Company have executed
a license agreement (the "License Agreement") and a development agreement
(the "Development Agreement"), respectively, which shall become effective
upon the Closing, to promote this mutual interest by providing for the licensing
and co-development of certain technology by the Investor and the Company.  The
Agreement, the Rights Agreement, and the License Agreement and Development
Agreement are collectively hereafter referred to as the "Transactional
Agreements."

AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises
and covenants herein, each of the Investors and the Company, intending to be
legally bound, agree as follows:

	Purchase and Sale of Stock

	Sale and
Issuance of Common Stock

Subject to the terms and conditions of this
Agreement, the Investor agrees to purchase at the Closing (as defined herein)
and the Company agrees to sell, issue and deliver to the Investor at the
Closing, 3,700,000 shares of the Company's Common Stock (the "Shares") at
a purchase price of $7.50 per share, or the aggregate purchase price of
$27,750,000 (the "Aggregate Purchase Price").

	Closings and Deliveries

	The Closing.  The purchase and sale of the
Shares shall take place at a closing (the "Closing") at the offices of
Wilson Sonsini Goodrich & Rosati, P.C., 650 Page Mill Road, Palo Alto,
California, at 10:00 a.m., on the third business day following (i) the
expiration or early termination of the applicable waiting period under the Hart-
Scott-Rodino Antitrust Improvement Act of 1976, as amended (the "HSR
Act"), or other receipt of clearance under the HSR Act and
(ii) satisfaction or waiver of all other conditions to the obligations of
the parties set forth in Articles 4 and 5, or at such other time and place
as the Company and the Investor mutually agree upon orally or in writing (the
date of the Closing being the "Closing Date").

	Deliveries.  At the Closing, the Company shall
deliver to the Investor (i) a certificate representing the Common Stock
that the Investor is purchasing against payment of the purchase price therefor
by wire transfer, as directed by the Company and (ii) any other documents
and agreements required hereunder to be delivered by the Company.  In the event
that payment by the Investor is made, in whole or in part, by cancellation of
indebtedness, then such Investor shall surrender to the Company for cancellation
at the Closing any evidence of such indebtedness or shall execute an instrument
of cancellation in form and substance acceptable to the Company.

	Representations and Warranties of the
Company

The Company hereby represents and warrants to the
Investor as follows, except as set forth in written disclosure to the Investor
which specifically identifies the relevant subsection hereof:

	Organization and
Standing

The Company is a corporation duly organized and validly
existing under, and by virtue of, the laws of the State of Delaware and is in
good standing as a domestic corporation under the laws of said state.  The
Company has all requisite corporate power and authority to carry on its business
as now conducted and as proposed to be conducted.  The Company is duly qualified
as a foreign corporation to transact business and is in good standing in each
jurisdiction in which the nature of its business or the location of its
properties requires such qualification and in which the failure to so qualify
would have a material adverse effect on its business or properties.  The Company
has provided Investor with correct and complete copies of its Certificate of
Incorporation and Bylaws, each as in effect on the date hereof and as will be in
effect on the Closing Date.  The Company is not in violation or default of any
provisions of its Certificate of Incorporation or Bylaws.  Except as set forth
in written disclosure to the Investor, the Company does not own, of record or
beneficially, any direct or indirect equity or other interest, or any right
(contingent or otherwise) to acquire the same, in any corporation, partnership,
joint venture, association or other entity and the Company is not a member of
(nor is any part of the Company's business conducted through) any partnership,
nor is the Company a participant in any joint venture or similar
arrangement.

	Corporate Power;
Authorization

The Company has all requisite legal and corporate power
to execute and deliver this Agreement and the other Transactional Agreements, to
sell and issue the Shares and to carry out and perform all of its obligations
under this Agreement and the other Transactional Agreements.  The execution and
delivery by the Company of this Agreement and the other Transactional Agreements
and the performance by the Company of its obligations hereunder and thereunder,
including, without limitation, the issuance and delivery of the Shares, have
been duly authorized by all requisite action on the part of the Company and its
directors, officers and stockholders.  The Board of Directors of the Company has
approved the transactions contemplated by this Agreement.  No approval of
stockholders of the Company is required in connection with the execution and
delivery of this Agreement and the other Transactional Agreements or the
consummation of the transactions contemplated hereby or thereby.  This Agreement
has been, and the other Transactional Agreements will be, duly executed and
delivered by the Company.  This Agreement constitutes, and upon their execution
and delivery the other Transactional Agreements will constitute, legal, valid
and binding obligations of the Company, enforceable in accordance with their
terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization or similar laws relating to or affecting the enforcement of
creditors' rights generally and (ii) as limited by equitable principles
generally.  The execution and delivery of this Agreement and the other
Transactional Agreements do not, and the performance of this Agreement and the
other Transactional Agreements and the compliance with the provisions hereof and
thereof and the issuance, sale and delivery of the Shares by the Company will
not, (i) conflict with, or result in a breach or violation of the terms,
conditions or provisions of, or constitute a default under (with or without the
passage of time or giving of notice), or result in the creation or imposition of
any material lien pursuant to the terms of, the Certificate of Incorporation or
Bylaws of the Company or to the Company's knowledge, any statute, law, rule or
regulation or any state or federal order, judgment or decree or
(ii) materially conflict with, or result in a material breach or violation
of the terms, conditions or provisions of, or constitute a material default
under (with or without the passage of time or giving of notice), or result in
the creation or imposition of any material lien pursuant to the terms of, any
indenture, mortgage, lease or other material agreement or instrument to which
the Company or any of its properties is subject. 

	Issuance and Delivery of the
Shares

The Shares, when issued and paid for in accordance with
the provisions of this Agreement, will be validly issued and outstanding, fully
paid and nonassessable.  The issuance and delivery of the Shares is not subject
to preemptive or any other similar rights of the stockholders of the Company or
any liens or encumbrances.  Assuming the accuracy of the representations of the
Investor in this Agreement, the Shares will be issued in compliance with all
applicable federal and state securities laws.  The Shares shall be free of any
liens or encumbrances; provided, however, that the Shares may be
subject to restrictions on transfer under state and/or federal securities laws
or in this Agreement or the Rights Agreement.  Neither the offer nor the
issuance or sale of the Shares constitutes or will constitute an event under any
capital stock or convertible security or any anti-dilution or similar provision
of any agreement or instrument to which the Company is a party or by which it is
bound or affected, which shall either increase the number of shares of capital
stock issuable upon conversion of any securities or upon exercise of any warrant
or right to subscribe to or purchase any stock or similar security, or decrease
the consideration per share of capital stock to be received by the Company upon
such conversion or exercise.

	SEC Documents; Financial
Statements

The Company has delivered to the Investor its Annual
Report on Form 10-K for the year ended March 31, 1999 (the "10-K"), and
its Quarterly Reports on Form 10-Q for the periods ended June 30, 1999 and
September 30, 1999 (the "10-Qs"). The Company has filed in a timely
manner all documents that the Company was required to file with the SEC under
Sections 13, 14(a) and 15(d) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), since December 31, 1998.  As of their
respective filing dates, all documents filed by the Company with the Securities
and Exchange Commission (the "SEC" or the "Commission") since
March 31, 1999 (the "SEC Documents") complied in all material respects
with the requirements of the Exchange Act or the Securities Act of 1933, amended
(the "Securities Act"), as applicable.  None of the SEC Documents as of
their respective dates contained any untrue statement of material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements made therein, in light of the circumstances under which they
were made, not misleading.  The financial statements of the Company included in
the SEC Documents (the "Financial Statements") comply as to form in all
material respects with applicable accounting requirements and with the published
rules and regulations of the SEC with respect thereto.  The Financial Statements
have been prepared in accordance with generally accepted accounting principles
consistently applied and fairly present the consolidated financial position of
the Company and any subsidiaries at the dates thereof and the consolidated
results of their operations and consolidated cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal, recurring
adjustments, the absence of footnote disclosure and the condensed presentation
of such statements).

	Government
Consents

To the Company's knowledge, no consent, approval, order
or authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state, or local governmental authority on the part of
the Company is required in connection with the consummation of the transactions
contemplated by this Agreement and the other Transactional Agreements except for
(a) clearance under the HSR Act, (b) such filings as have been made prior to the
Closing or such post-closing filings as may be required under applicable state
securities laws, which will be timely filed within the applicable periods
therefor, and (c) the filing of the Nasdaq National Market Notification Form
with the Nasdaq National Market.

	No Material Adverse
Change

Except as otherwise disclosed herein or in filings with
the SEC prior to the date of this Agreement or as set forth in written
disclosure to the Investor since March 31, 1999, there have not been any
changes in the assets, liabilities, financial condition, business prospects or
operations of the Company which, in the aggregate are materially adverse to the
Company taken as a whole.

	Authorized Capital
Stock

The authorized capital stock of the Company consists of
40,000,000 shares of Common Stock and 5,000,000 shares of preferred stock, par
value $0.001 per share ("Preferred Stock").  As of January 20, 2000, 18,687,179
shares of Common Stock were issued and outstanding, all of which are validly
issued, fully paid and nonassessable, and no shares of Preferred Stock were
outstanding.  Except as set forth in written disclosure to the Investor, and
except for the grant of options to purchase a total of 4,200,612 shares of
Common Stock, as of January 20, 2000, there are no outstanding options, warrants
or other securities exercisable for, or convertible into, or commitments to
issue securities exercisable for or convertible into, capital stock of the
Company, or other commitments to issue any capital stock of the Company.  None
of the issued and outstanding shares of capital stock of the Company was issued
in violation of any preemptive rights.  There are no voting trusts, stockholder
agreements, proxies or other agreements in effect with respect to the voting or
transfer of shares of Common Stock.  Since January 20, 2000, the Company has not
issued or agreed to issue, or granted options to purchase, more than 40,000
shares of Common Stock in the aggregate.

	No Dividends

The Company has not declared or paid any dividends, or
authorized or made any distribution or established any record date for the
issuance of any dividend or other distribution upon or with respect to any class
or series of its capital stock.

	Litigation and Compliance with
Laws

There is no litigation, suit, claim, action, proceeding
or investigation pending or, to the knowledge of the Company, threatened against
the Company, or any property or asset of the Company, before any court,
arbitrator or governmental entity, domestic or foreign.  Neither the Company nor
any property or asset of the Company is subject to any continuing order of,
consent decree, settlement agreement or other similar written agreement with,
or, to the knowledge of the Company, continuing investigation by, any
governmental entity or any order, writ, judgment, injunction, decree,
determination or award of any governmental entity or arbitrator.  The Company is
conducting, and has conducted, its business in compliance in all material
respects with all applicable laws and regulations.

	Intellectual
Property

Except as disclosed in written disclosure to the
Investor, to the knowledge, of the Company, the Company owns or possesses
adequate licenses or other valid rights to use all patents, patent rights,
trademarks, trademark rights, trade names, trade dress, trade name rights,
copyrights, service marks, trade secrets, applications for trademarks and for
service marks, know-how and other proprietary rights and information used or
held for use in connection with the business of the Company as currently
conducted and as proposed to be conducted, and the Company has no knowledge of
any assertion or claim challenging the validity of any of the foregoing.  To the
knowledge of the Company the conduct of the business of the Company as currently
conducted does not infringe upon any valid intellectual property rights of other
persons.  To the knowledge of the Company, no other persons are materially
infringing upon any material proprietary rights owned by or licensed by or to
the Company.

	Taxes

The Company has timely filed or will timely file all
returns and reports required to be filed by them with any taxing authority with
respect to taxes.  All taxes shown to be payable on such returns or reports have
been paid or will be paid.

	Title to Property and
Assets

The Company has good and marketable title to its property
and assets, free and clear of all mortgages, liens, loans and encumbrances,
except such encumbrances and liens that arise in the ordinary course of business
and do not materially impair the Company's ownership or use of such property or
assets.  With respect to the property and assets that it leases, the Company is
in compliance with such leases and, to the knowledge of the Company, holds a
valid leasehold interest free of any liens, claims or encumbrances.

	Material
Contracts

The Company is not in material default under any material
contract or agreement, nor has the Company received notice that any third party
does not intend to renew any material contract it currently has with the
Company, or that any third party intends to terminate any material contract
currently in place with the Company.  To the knowledge of the Company, no other
party to any material contract is in material default thereunder.

	Representations, Warranties
and Covenants of the Investor

The Investor hereby represents and warrants to the
Company and agrees in favor of the Company, as follows: 

	Authorization

The Investor represents and warrants to the Company that:
(i) the Investor has been duly formed and is validly existing under the
laws of the jurisdiction of its formation; (ii) the Investor has all
requisite legal and corporate or other power and capacity and has taken all
requisite corporate or other action to execute and deliver this Agreement, to
purchase the Shares to be purchased by it and to carry out and perform all of
its obligations under this Agreement; and (iii) this Agreement constitutes
the legal, valid and binding obligation of the Investor, enforceable in
accordance with its terms, except (a) as limited by applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the
enforcement of creditors' rights generally and (b) as limited by equitable
principles generally.  

	Independent Investment
Decision

The Investor understands that no United States  federal
or state  agency has passed on,  reviewed or made any recommendation or
endorsement of the Shares.  In making the decision to purchase the Shares in
accordance with this Agreement, the Investor has relied solely upon independent
investigations made by it and not upon any representations made by the Company
other than those made pursuant to this Agreement.  

	Investment Intent

The Investor is purchasing the Shares for its own
account, for investment purposes only, and not with a view to a distribution
thereof.  The Investor further understands that its acquisition of the Shares
has not been registered under the Securities Act or registered or qualified
under any state securities law in reliance on specific exemptions therefrom,
which exemptions may depend upon, among other things, the bona fide nature of
the Investors' investment intent as expressed herein.  

	Registration or Exemption
Requirements

The Investor further acknowledges and understands that
the Shares have not been registered under the Securities Act and may not be
resold or otherwise transferred except in a transaction registered  under the
Securities Act or unless an exemption from such registration is available.

	Legends

To the extent applicable, each certificate or other
document evidencing any of the Shares shall be endorsed with the legends set
forth in Sections 3.5(a) and (b) below and the Purchaser covenants that,
except to the extent such restrictions are waived by the Company, the Purchaser
shall not transfer the shares represented by any such certificate without
complying with the restrictions on transfer described in the legends endorsed on
such certificate:

	"THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN
ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO OR IN CONNECTION
WITH THE SALE THEREOF.  SUCH SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER THE APPLICABLE STATE
SECURITIES LAWS.  THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, OR ASSIGNED IN
THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION, WITHOUT AN OPINION OF COUNSEL
FOR THE HOLDER, CONCURRED IN BY COUNSEL FOR THE COMPANY, STATING THAT SUCH SALE,
TRANSFER, OR ASSIGNMENT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF SAID
ACT.  THIS CERTIFICATE MUST BE SURRENDERED TO THE CORPORATION OR ITS TRANSFER
AGENT AS A CONDITION PRECEDENT TO THE TRANSFER OF ANY INTEREST IN THE SECURITIES
REPRESENTED BY THIS CERTIFICATE."

	Any other additional legends required by Delaware law or
other applicable state blue sky laws.

The Company need not register a transfer of any Shares, and
may also instruct its transfer agent not to register the transfer of such
shares, unless the conditions specified in this Agreement are satisfied.

	Conditions of Investor's Obligations at
Closing

The obligations of the Investor to purchase the Shares is
subject to the satisfaction or waiver on or before the Closing of each of the
following conditions:

	Representations and
Warranties

The representations and warranties of the Company
contained in Section 2 shall be true on and as of the date hereof and shall
be true and correct on and as of the Closing Date except as would not be in the
aggregate  materially adverse to the Company taken as a whole.

	Covenants

The Company shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement that are
required to be performed or complied with by it on or before the Closing
Date.

	Qualifications

All authorizations, approvals, or permits, if any, of any
governmental authority or regulatory body of the United States or of any state
that are required as of the Closing in connection with the lawful issuance and
sale of the Shares pursuant to this Agreement shall have been duly obtained and
shall be effective as of the date hereof, including expiration or termination of
the waiting period under the HSR Act.  

	Execution of Investor Rights
Agreement

The Company and the Investor have executed the Investors'
Rights Agreement, attached as Exhibit A.

	License Agreement and
Development Agreement

The License Agreement and the Development Agreement shall
not have been terminated.

	Board of
Directors

On nominee of the Investor shall have been appointed to
the Board of Directors of the Company effective as of the Closing, provided that
Investor has proposed a nominee reasonably acceptable to the Company prior to
the Closing.

	Closing
Deliveries

The Investor shall have received (i) a certificate
of the President of the Company dated the Closing Date certifying that the
conditions specified in Sections 4.1 and 4.2 have been fulfilled,
(ii) a certificate of the Secretary of the Company dated the Closing Date
attaching correct and complete copies of (A) the Certificate of
Incorporation and Bylaws of the Company as in effect as of the Closing, and
(B) the resolutions adopted by the Board of Directors of the Company in
connection with the transactions contemplated by this Agreement and the other
Transactional Agreements and (iii) an opinion dated the Closing Date of
Wilson Sonsini Goodrich & Rosati in a form reasonably satisfactory to
the parties hereto.

	Conditions of the Company's Obligations at
Closing

The obligations of the Company to sell the Shares to the
Investor is subject to the satisfaction or waiver on or before the Closing of
each of the following conditions:

	Representations and
Warranties

The representations and warranties of the Investor
contained in Section 3 shall be true on and as of the date hereof and shall
be true and correct in all material respects on and as of the Closing Date.

	Covenants

The Investor shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement that are
required to be performed or complied with by the Investor on or before the
Closing Date.

	Qualifications

All authorizations, approvals, or permits, if any, of any
governmental authority or regulatory body of the United States or of any state
that are required as of the Closing Date in connection with the lawful issuance
and sale of the Shares pursuant to this Agreement shall have been duly obtained
and shall be effective as of the Closing Date, including termination of the
waiting period under the HSR Act.

	Covenants of the Investor and
of the Company

	HSR Clearance

Each of the Company and the Investor hereby covenants
to prepare and file, as soon as practicable hereafter, a notification and Report
Form for Mergers and Acquisitions as required under the HSR Act, in connection
with the purchase and sale of Common Stock under this Agreement. Each party will
use commercially reasonable efforts to obtain early termination of the waiting
period under the HSR Act and any other requisite governmental clearance in
connection with the transactions contemplated by this Agreement.

 

	Conduct of Business of the Company

  

During the period from the date of this Agreement and
continuing until the earlier of the termination of this Agreement or the Closing
Date, the Company agrees (except to the extent that the Investor shall otherwise
consent in writing), to carry on its business in the usual, regular and ordinary
course in substantially the same manner as heretofore conducted. The Company
shall promptly notify the Investor of any event or occurrence not in the
ordinary course of business of the Company which could have a material adverse
effect on the Company.  Without limiting the generality of the foregoing and
with the exceptions as set forth in written disclosure to the Investor, without
the prior written consent of the Investor, the Company will not during the
period from the date of this Agreement and continuing until the earlier of the
termination of this Agreement or the Closing Date:

	redeem any of the capital stock of the Company or
declare, make or pay any dividends or distributions (whether in cash, securities
or other property) to the holders of capital stock of the Company or
otherwise;

	merge or consolidate with or acquire an interest of five
percent (5%) or more in any person or entity or acquire a substantial portion of
the assets or business of any person or entity or any division of line of
business thereof, or otherwise acquire any material assets other than in the
ordinary course of business consistent with past practice;

	sell, transfer, lease, sublease, license or otherwise
dispose of any properties or assets, other than in the ordinary course of
business consistent with past practice;

	issue or sell any capital stock, notes, bonds or other
securities, or any option, warrant or other right to acquire the same, of, or
any other interest in, the Company except in the ordinary course of
business;

	incur any indebtedness for borrowed money in excess of
$500,000;

	make any change in any method of accounting or accounting
practice or policy used by the Company, other than such changes required by U.S.
generally accepted accounting principles;

	amend, modify or consent to the termination of any
material contract of the Company or the Company's rights thereunder; or

	amend or restate the Certificate of Incorporation or the
Bylaws of the Company.

	Use of
Proceeds

The Company shall use a portion of the proceeds of
the sale of the Shares to fund its obligations under the Development
Agreement.

	Right of First
Refusal

	Company's Right of First
Refusal 

Before any voting rights or value of the Common Stock may
be sold or otherwise transferred by the Investor, the Company shall have a right
of first refusal (the "Right of First Refusal") to purchase such shares
(the "Offered Securities").

	Notice of Proposed
Transfer

Before any transfer of any Offered Securities, the
Investor shall deliver to the Company a written notice (the "Transfer
Notice") stating: (i) the Investor's bona fide intention to sell or
otherwise transfer such Offered Securities; (ii) the name of each proposed
purchaser or other transferee (a "Proposed Transferee"); (iii) the
number of Offered Securities to be transferred to each Proposed Transferee; and
(iv) the bona fide cash price or other consideration for which the Investor
proposes to transfer the Offered Securities (the "Offered Price"). 

	Exercise of Right of First
Refusal

At any time within 20 days after receipt of the Transfer
Notice (the "Offer Period"), the Company may, by giving written notice to
the Investor, elect to purchase all, or such lesser amount as desired, of the
Offered Securities proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with
subsection 7.4 below.  Failure of the Company to give such a notice within
such time period will be deemed an election by it not to exercise its
option.

	Purchase Price

The purchase price for the Offered Securities so
purchased by the Company shall be the Offered Price, or such other amount agreed
to in writing by the Company and the Investor (the "Company Purchase
Price").

	Payment

Payment of the Company Purchase Price shall be made by
wire transfer (or such other form of consideration mutually agreed to by the
Company and the Investor) within 20 days after such Company Purchase Price is
agreed upon between the Company and the Investor.

	Right to
Transfer

  

If all of the Offered Securities proposed in the Transfer
Notice to be transferred are not purchased by the Company, then the Investor may
sell or otherwise transfer all Offered Securities originally covered in the
Transfer Notice to the Proposed Transferee(s) at the Offered Price or at a
higher price, provided that such sale or other transfer is consummated within
50 days after the date of the Transfer Notice and provided further that any
such sale or other transfer is effected in accordance with any applicable
securities laws and the Investor agrees in writing that the provisions of this
Section 7 shall continue to apply to the Offered Securities that are transferred
to such Proposed Transferee.  If the Offered Securities described in the
Transfer Notice are not transferred to the Proposed Transferee(s) within such
50-day period, the Investor will not transfer any Offered Securities unless such
securities are first re-offered to the Company in accordance herewith.

	Restrictions on
Transfer

In no event shall the Investor transfer any shares of
Common Stock except:

	through a sale pursuant to Rule 144 under the
Securities Act, provided that such sale complies with the  manner of sale
provisions under paragraph (f) of Rule 144 or is of securities representing
5% or less of the Company's outstanding voting stock (on an as converted basis)
and is not made to any person or group which has theretofore filed a
Schedule 13D reflecting ownership in excess of 5% of the Company's
outstanding voting stock (including shares issuable upon conversion of
convertible securities) or any person or group that has announced or commenced
an unsolicited offer for the Company voting stock or proxy contest with respect
to the Company;

	pursuant to a bona fide underwritten public offering
registered under the Securities Act;

	pursuant to any private sale exempt from the registration
requirements of the Securities Act, provided that such sale would not result in
a transferee having beneficial ownership in the Company in excess of 5% of the
Company's outstanding voting stock (including shares issuable upon conversion of
convertible securities) unless such transferee is a financial institution
holding exclusively for investment purposes in which case such five percent (5%)
threshold shall be ten percent (10%);

	to a wholly owned subsidiary of Investor (provided such
entity agrees to take such securities subject to the restrictions set forth
herein);

	pursuant to a merger, exchange offer or tender offer or
other change of control transaction;

	as a bona fide pledge to an institutional lender or
lenders to secure a loan, credit facility or other indebtedness of Investor,
with the Company's prior consent (which shall not be unreasonably withheld or
delayed), provided that each such lender agrees to take such securities subject
to the restrictions set forth below in Sections 9 and 10; or

	with the Company's prior consent.

	Standstill
Agreement

The Investor agrees not to acquire any voting stock of
the Company, through market purchases or otherwise, except that (i) until
the first anniversary of the Closing, but not thereafter, Investor may acquire
shares of voting stock through market purchases, provided that (a) at no
time shall Investor's aggregate ownership of voting stock of the Company exceed
19.9% of the outstanding voting stock of the Company, and (b) the
acquisition of such additional shares shall be in compliance with applicable
laws, including the HSR Act, (ii) Investor may at any time acquire shares
of voting stock pursuant to a stock split, dividend or similar event,
(iii) Investor may at any time acquire shares of voting stock pursuant to
preemptive rights and (iv) in the event the company authorizes the offer or sale
of any shares of Common Stock pursuant to a public offering in which Investor is
denied preemptive rights pursuant to the terms of Section 3.2 of the Investor
Rights Agreement, Investor may acquire, through market purchases, additional
shares of Common Stock until its ownership percentage of the outstanding shares
of Common Stock is equal to its ownership percentage prior to such
offering.

	the acquisition by any person or entity, or group of
persons or entities, of beneficial ownership of voting securities of the Company
representing ten percent (10%) or more of the then outstanding voting securities
of the Company;

	the announcement or commencement by any person or entity,
or group of persons or entities, of a tender or exchange offer to acquire voting
securities of the Company which, if successful, would result in such person or
entity, or group of persons or entities, owning, when combined with any other
voting securities of the Company owned by such person or entity, or group of
persons or entities, ten percent (10%) or more of the then outstanding voting
securities of the Company; or

	the Company enters into, or otherwise determines to seek
to enter into, any merger, sale or other business combination transaction
pursuant to which the outstanding shares of Common Stock would be converted into
cash or securities of another person or entity, or group of persons or entities,
or fifty percent (50%) or more of the then outstanding shares of Common Stock
would be owned by persons or entities other than the then current holders of
Common Stock, or which would result in a substantial portion of the Company's
assets being sold to any person or entity, or group of persons or
entities.

	Lock-up Agreement

The Investor agrees in connection with any underwritten
offering of the Company's securities, not to sell, make any short sale of, loan,
grant any option for the purchase of, or otherwise dispose of any of its Shares
(other than those included in the registration) without the prior written
consent of the Company or such underwriter, as the case may be, for such period
of time (not to exceed one hundred eighty (180) days) (the "Lockup
Period") during the effectiveness of such registration statement relating to
such offering, provided that such agreement shall not apply to Shares included
in the registration statement.  In order to enforce the provisions of this
Section 10, the Company may impose stop-transfer instructions with respect
to the securities of the Company held by the Investor not included in the
registration statement until the end of the Lockup Period.

	Termination

The parties hereto shall be entitled to terminate this
Agreement as follows, provided that no such termination shall limit or terminate
any liability of one party to another for any breach hereof:

	Mutual Consent

The parties hereto may terminate this Agreement by mutual
written consent at any time.

	Investor
Termination

Investor may terminate this Agreement by written notice
to the Company on or prior to the Closing Date if (A) the Company shall
have breached in any material respect any representation, warranty or covenant
contained in this Agreement and failed to cure the same within ten (10) days
after written notice thereof from the Investor; or (b) the consummation of
the transactions contemplated hereby has not occurred within ninety (90) days of
the date hereof due to the failure of any condition set forth in Section 4
above to have been satisfied on or before such date.

	Company
Termination

The Company may terminate this Agreement by written
notice to the Investor on or prior to the Closing Date if (A) the Investor shall
have breached in any material respect any representation, warranty or covenant
contained in this Agreement and failed to cure the same within ten (10) days
after written notice thereof from the Investor; or (B) the consummation of the
transactions contemplated hereby has not occurred within ninety (90) days of the
date hereof, due to the failure of any condition set forth in Section 5
above to have been satisfied on or before such date.

	Termination Due to
Governmental Action

Any party may terminate this Agreement by written notice
to the other parties hereto on or prior to the Closing Date if any court or
other governmental instrumentality of competent jurisdiction shall have issued
an order, decree or ruling or taken any other action restraining, enjoining or
otherwise prohibiting the transactions contemplated by this Agreement.

	Indemnification

	Survival of Representations and
Warranties

The representations, warranties, covenants and agreements
of the Company and the Investor contained in this Agreement shall survive the
execution and delivery of this Agreement and the Closing, subject to the
limitations set forth in Section 12.2 below,  and shall in no way be affected by
any investigation of the subject matter thereof made by or on behalf of the
Investor or the Company.

	Indemnification by the
Company

Without prejudice to any other rights or remedies that
Investor may have, the Company shall indemnify and hold the Investor, its
directors, officers, employees and agents (collectively, the "Investor
Indemnified Parties") harmless from and against, and agree promptly to defend
any such Investor Indemnified Party from and reimburse any such Investor
Indemnified Party for, any and all material losses, costs, expenses, damages,
diminution in value, taxes, penalties, fines, charges, demands, liabilities,
obligations and claims of any kind (including interest, penalties and reasonably
attorney's fees, expenses and disbursements) ("Losses") which any Investor
Indemnified Party may suffer or incur, or become subject to, arising out of or
resulting from, without duplication: (i) any material breach or inaccuracy of
any of the representations or warranties made by the Company in this Agreement,
or (ii) any material failure of the Company to carry out, perform, satisfy or
discharge any of its respective covenants, agreements, undertakings, liabilities
or obligations under this Agreement.  Any reimbursement for such Losses shall be
offset by any recovery by Investor under any federal, state or local securities
laws for the same cause of action.  Reimbursement under this Section 12.2 shall
be limited to $10,000,000.

	Termination of
Indemnification

Rights to make claims for indemnification under Section
12.2(i) above shall terminate one (1) year from the Closing Date.  Rights to
make claims for indemnification under Section 12.2(ii) shall terminate seven (7)
years from the Closing Date. 

	Miscellaneous

	Transaction Expenses

	Irrespective of whether the Closing is effected, each
party to this Agreement shall pay all costs and expenses that it incurs with
respect to the negotiation, execution, delivery and performance of this
Agreement and the Transactional Agreements.

	Each of the Company and the Investor shall pay one-half
of the $45,000 filing fee under the HSR Act.

	Successors and Assigns; No Third-Party Beneficiary
Status

	Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon
the respective successors and assigns of the parties (including transferees of
any Shares).

	Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

	Governing Law

This Agreement is to be construed in accordance with and
governed by the laws of the State of California, without giving effect to any
choice of law rule that would cause the application of the laws of any
jurisdiction other than the State of California to the rights and duties of the
parties.

	Counterparts

This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

	Titles
and Subtitles

The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting
this Agreement.

	Notices

Any notice or other communication required or permitted
to be delivered to any party under this Agreement shall be in writing and shall
be deemed properly delivered, given and received when delivered (by hand, by
registered mail, by courier or express delivery service or by facsimile during
business hours) to the address or telecopier number for each party set forth on
the signature page hereof (or to such other address or telecopier number as such
party shall have specified in a written notice given to the other parties
hereto).

	Finder's Fee

Each party represents that it neither is nor will be
obligated for any finders' fee or commission in connection with this
transaction. The Investor agrees to indemnify and to hold harmless the Company
from any liability for any commission or compensation in the nature of a
finders' fee (and the costs and expenses of defending against such liability or
asserted liability) for which the Investor or any of its officers, partners,
employees, or representatives is responsible.

The Company agrees to indemnify and hold harmless the
Investor from any liability for any commission or compensation in the nature of
a finders' fee (and the costs and expenses of defending against such liability
or asserted liability) for which the Company or any of its officers, employees
or representatives is responsible.

	Amendments and Waivers

Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of the Company and the holders of a majority of the Common Stock
issued pursuant to this Agreement that have not subsequently been sold in the
public market.  Any amendment or waiver effected in accordance with this
paragraph shall be binding upon each holder of any securities purchased under
this Agreement at the time outstanding (including securities into which such
securities are convertible) each future holder of all such securities and the
Company.

	Severability

If one or more provisions of this Agreement are held to
be unenforceable under applicable law, so long as the economic or legal
substance of the transactions contemplated hereby are not affected in any manner
materially adverse to any party such provision shall be excluded from this
Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

	Construction

For purposes of this Agreement, whenever the context
requires:  the singular number shall include the plural, and vice versa; the
masculine gender shall include the feminine and neuter genders; the feminine
gender shall include the masculine and neuter genders; and the neuter gender
shall include the masculine and feminine genders.

	Entire
Agreement

This Agreement and the Transactional Agreements
constitute the entire agreement among the parties with regard to the subject
matter hereof and thereof, and supercede any and all prior negotiations,
correspondence, understandings and agreements between the parties regarding the
subject matter hereof and thereof.  No party shall be liable or bound to any
other party in any manner by any warranties, representations or covenants,
except as specifically set forth in this Agreement or the Transactional
Agreements.

	Press
Releases

The parties shall cooperate as to the timing and contents
of any press release or public announcement relating to this Agreement or the
transactions contemplated hereby.  Notwithstanding the foregoing, the parties
may make any filings with governmental agencies relating to this Agreement or
the transactions contemplated hereby, as required by law.

 

 

 

IN WITNESS WHEREOF, the parties have executed this Common
Stock Purchase Agreement as of the date first above written.

 

The Company8x8,
Inc.

a
Delaware corporation

2445 Mission College Blvd.Santa
Clara, CA 95054

Facsimile: (408) 933-0234

By: 

Paul Voois

Chairman and CEO

 

 

The InvestorSTMicroelectronics NV

Technoparc du pays de Gex

165 Rue Edouard Branly

B.P. 11201637

St. Genis Pouilly Cedex (France)

Attention:  General Counsel

 

By: 

Its: President

8x8, Inc.

Common Stock Purchase Agreement

Index of Exhibits

	
Exhibit A
	
Form of Investor's Rights Agreement

EXHIBIT A

FORM OF INVESTOR'S RIGHTS AGREEMENT

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