Document:

<PAGE>
                                                                    EXHIBIT 10.8

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

                              iBEAM and Microsoft
                   Broadband Streaming Initiative Agreement

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

                                   Recitals

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

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

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

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

                                   Agreement

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

<TABLE>
<CAPTION>

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

                   Microsoft Confidential & Proprietary             Page 1 of 9
<PAGE>

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

1.    Definitions

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

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

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

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

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

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

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

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

                   Microsoft Confidential & Proprietary                   Page 2
<PAGE>

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

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

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

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

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

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

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

2.     Microsoft Obligations

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

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

                   Microsoft Confidential & Proprietary                   Page 3
<PAGE>

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

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

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

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

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

<PAGE>

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

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

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

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

3      iBEAM Obligations

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

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

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

                   Microsoft Confidential & Proprietary                   Page 5

<PAGE>

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

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

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

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

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

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

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

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

                   Microsoft Confidential & Proprietary                   Page 6
<PAGE>

       [*].

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

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

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

   (b) [*] iBEAM will install copies of the Microsoft Software and provide its
       standard level of customer service for such software during the Term in
       order to support ISPs which Microsoft has designated in its discretion
       to participate in the Broadband Streaming Initiative. In performing the
       foregoing obligations, iBeam shall maintain and comply with separate
       written agreements with Microsoft and/or its licensees with respect to
       installation and support of the Microsoft Software, and nothing in this
       Agreement shall be deemed to authorize iBeam to install and/or support
       such copies of the Microsoft Software.

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

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

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

                   Microsoft Confidential & Proprietary                   Page 7
<PAGE>

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

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

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

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

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

                   Microsoft Confidential & Proprietary                   Page 8
<PAGE>

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

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

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

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

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

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

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

                   Microsoft Confidential & Proprietary                   Page 9
<PAGE>

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

4.  Additional Understandings

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

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

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

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

              Microsoft Confidential & Proprietary                       Page 10
<PAGE>

5.   Non-Exclusive

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

6.   Confidentiality

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

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

7.   Warranties and Disclaimers

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

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

              Microsoft Confidential & Proprietary                       Page 11
<PAGE>

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

8.   Indemnity

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

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

              Microsoft Confidential & Proprietary                       Page 12
<PAGE>

9.   Termination

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

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

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

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

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

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

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

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

10. Limitation Of Liabilities

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

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

              Microsoft Confidential & Proprietary                       Page 13
<PAGE>

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

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

11.  General Provisions

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

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

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

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

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

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

              Microsoft Confidential & Proprietary                       Page 14
<PAGE>

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

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

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

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

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

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

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

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

              Microsoft Confidential & Proprietary                       Page 15
<PAGE>

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

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

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

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

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

              Microsoft Confidential & Proprietary                       Page 16
<PAGE>

                                   EXHIBIT A

                           IBEAM SERVICES GUIDELINES

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

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

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

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

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

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

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

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

              Microsoft Confidential & Proprietary                       Page 17
<PAGE>

                                   EXHIBIT B

                         Get Windows Media(TM) player
                              Link Logo Guidelines

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

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

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

     [ICON APPEARS HERE]

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

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

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

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

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

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

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

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

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

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

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

              Microsoft Confidential & Proprietary                       Page 18

<PAGE>

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

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

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

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

              Microsoft Confidential & Proprietary                       Page 19<PAGE>

                                                                    EXHIBIT 10.9

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

                            iBEAM Network Membership

                          Agreement  No. 100599 Covad

This membership agreement (the "Agreement"), effective as of October 5, 1999
                                ---------
(the "Effective Date"), is entered into by Covad, Inc., ("Member") and iBEAM
      --------------                       -----------                 -----
BROADCASTING CORPORATION, a Delaware corporation with primary business offices
-------------------------
at 645 Almanor Avenue, Suite 100, Sunnyvale, CA 94086 ("iBEAM"). (iBEAM and
Member individually a "Party" or together the "Parties")

WHEREAS, iBEAM intends to provide a paid service which provides Internet service
providers ("ISPs") with MaxCasters(TM) providing replication, live broadcast and
on-demand data streaming and,

WHEREAS, Member provides access to a high-speed network for the subscribers of
its ISP customers and,

WHEREAS, iBEAM offers and Member accepts the iBEAM  service subject to the terms
and conditions set forth below.

NOW THEREFORE, for good and valuable consideration exchanged between the
Parties, Member and iBEAM agree as follows:

1. DEFINITIONS
--------------
     When used in this Agreement, the following terms shall have the following
     meanings unless the subject or the context otherwise requires:

A.   Content: data or data streams used in the Service.
     -------

B.   Webcast Distribution Service (the "Service"):  The service provided by
     --------------------------------------------
     iBEAM, where iBEAM copies and distributes Content from a series of content
     providers to iBEAM MaxCasters using communications equipment and
     telecommunications services (including, but not limited to, satellite,
     broadcast and other networking services).

C.   Confidential Information.  Confidential and trade secret information as
     ------------------------
     set forth more specifically in Article 15 of this Agreement.

D.   Disclosing Party.  A Party that discloses Confidential Information to a
     ----------------
     Receiving Party.

E.   Receiving Party.  A Party receiving Confidential Information from a
     ---------------
     Disclosing Party.

F.   MaxCaster(TM): A system of satellite downlink equipment, one or more
     -------------
     computer servers, other communications equipment and appropriate software
     colocated with Member Network.

G    Member Network: The network operated by Member without the installation of
     ---------------
     the iBEAM MaxCaster(s).

H.   Content Provider: a person or entity who provides Content for dissemenation
     ----------------
     on Webcast Distribution.

I.   Reseller Plan: wherein, Member will have ISP's associated with Member,
     -------------
     contact iBEAM and said ISP must subscribe to iBEAM's service(s).

J.   Delivery Plan: wherein, Member will allow iBEAM to install its MaxCaster in
     -------------
     the Member Network and serve Content through iBEAM's MaxCaster and Member
     Network.

K.   Member ISP: An ISP who, under the Reseller Plan, has been recruited by
     ------------
     Member and has signed a contract with iBEAM.

L.   Member ISP Network: The network operated by a Member ISP without the
     --------------------
     installation of the iBEAM MaxCaster(s)

M.   Referral: Shall mean placing iBEAM in contact with a potential iBEAM
     --------
     customer where contract negotiations with such potential customer begin
     within ninety (90) days of the referral and such negotiations result in an
     order and provision of services from iBEAM, unless such referred customer
     was, as of the date of Member's referral:  (a) already a customer under
     contract with iBEAM;  (b) already formally referred by another customer of
     iBEAM; or (c) already in formal negotiations with iBEAM for services.
     Subject to the foregoing, iBEAM will pay  Member for Referrals as set forth
     in Article 4.1

2. SERVICE
----------
   iBEAM will provide the Service to Member and Member accepts the Service
pursuant to the terms and conditions of this Agreement and its Exhibits by
incorporation.
<PAGE>

     i)   Reseller Plan: To take advantage of the Reseller Plan, Member must
          refer to iBEAM a Member ISP, assist iBEAM in signing said Member ISP
          with iBEAM for iBEAM service and provide all reasonable assistance
          required to install a MaxCaster in said Member ISP's network.

     ii)  Delivery Plan: To take advantage of the Delivery Plan, Member must
          complete installations as set forth in Article 4.1.

3.   OWNERSHIP AND USE AND DAMAGE
---------------------------------

3.1 Ownership: Title to and ownership of the MaxCaster(TM), all copies of
documentation or instructions thereof  and all data resident upon each
MaxCaster, including but not limited to any trademarks, servicemarks,
tradedress, copyrights (whether in literal or non-literal form) and/or  patents
shall be and at all times remain with iBEAM, iBEAM's licensors or its agents or
assigns. Member will not reproduce or modify the MaxCaster or any portion
thereof.  Member shall not rent, sell, lease, create or have created security
interests in the MaxCaster, have liens placed on the MaxCaster or otherwise
transfer the MaxCaster or any part thereof or use, or allow its use for the
benefit of any third party that is not a customer or subscriber of Member.

3.2 Use: Member may transmit the Content resident on the MaxCaster to its end
users provided that the Content is unmodified or abridged in any manner. Member
shall not reverse assemble, reverse compile or reverse engineer the MaxCaster,
or otherwise attempt to discover any MaxCaster source code or underlying
Confidential Information (as that term is defined below). Further Member agrees
that it will not modify, copy, display, distribute, use, market, promote,
perform, cache or transmit any of the Content residing within the MaxCaster or
intercept any tranmission intended to place Content on the MaxCaster for the
heretofore mentioned reasons without the express permission of iBEAM. iBEAM may
use certain iBEAM defined shared elements of the MaxCaster for other services or
customers.

3.3   In the event that Member breaches any provision of Articles 3.1 or 3.2
iBEAM shall have the right to bring immediate injunctive action to halt said
breach.

Damage to MaxCaster: Any damage caused to any portion of the MaxCaster while
resident at Member location by use outside the scope intended under this
Agreement will require Member to pay iBEAM to repair or replace the
MaxCaster.(TM)

4.  METHOD OF PAYMENT
---------------------

4.1 iBEAM owns all right, title and interest in and to any and all revenues
associated with all services, provided by iBEAM,  which are transferred through
the MaxCaster(TM) to the Member Network. Pursuant to the Delivery Plan iBEAM
shall pay Member [*] percent ([*]%) of all revenues created from the transport
of Content through the Member Network from all iBEAM MaxCasters co-located in
Member Network upon completion of one (1) installation. Upon completion of five
(5) installations iBEAM shall pay Member an additional percent ([*]%) of all
revenues created from the transport of Content through the Member Network from
all iBEAM MaxCasters co-located in Member Network. Pursuant to the Reseller
Plan, iBEAM will pay [*] percent ([*]%) of all revenues created from the
transport of Content through the Member ISP's Networks from all iBEAM MaxCasters
co-located in each Member ISP's Network. In the event that Member provides iBEAM
with a Referral for a content provider or other customer for the Service, Member
will receive an additional [*] ([*]) percent of such referred customer's revenue
accrued to iBEAM for transport of content through Member's Network from all
iBEAM MaxCasters co-located in Member Network, for a period of twelve (12)
months from the date of Service installation for such customer or fifty (50)
percent of said customers contract term whichever is less.

4.2 iBEAM will tender to Member a summary of all shared revenues as specified in
Article 4.1 on a calendar quarterly basis. Member will then invoice iBEAM for an
amount equal to the aforementioned summary, which shall be payable net 30 days
from iBEAM receipt of said valid invoice.

4.3 Member is responsible for any taxes associated with any revenues shared
hereunder

[*]  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.

<PAGE>

5  LIMITATION OF LIABILITY , WARRANTIES AND DISCLAIMER OF WARRANTIES
--------------------------------------------------------------------

5.1  NEITHER PARTY SHALL BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT
MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO, TO THE OTHER
OR ANY OTHER THIRD PARTY, UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR
OTHER THEORY(A) FOR ANY MONIES IN EXCESS OF $1,000,000.00,  (B) FOR LOSS OR
INACCURACY OF DATA , COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR
TECHNOLOGY, OR (C) FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES
INCLUDING, BUT NOT LIMITED TO LOSS OF REVENUES AND LOSS OF PROFITS. NEITHER
PARTY SHALL BE RESPONSIBLE FOR ANY MATTER BEYOND ITS REASONABLE CONTROL.

UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY
THIRD PARTY FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY
DAMAGES, ARISING FROM ANY ACT OR OMISSION, INCLUDING NEGLIGENT ACTS OR
OMISSIONS, OF THAT PARTY, EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES, ARISING FROM ANY PROVISION OF THIS AGREEMENT, SUCH AS, BUT NOT
LIMITED TO LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS.

5.2  IBEAM UNDERTAKES THAT ITS EQUIPMENT SHALL HAVE THE ABILITY TO DISTRIBUTE
CONTENT IN THE FOLLOWING MANNER. IN THE EVENT IBEAM IS UNABLE TO DELIVER CONTENT
IT SHALL BE DEEMED AN "UNAVAILABILITY EVENT". IBEAM WILL PROVIDE ITS WEBCAST
DISTRIBUTION FREE FROM UNAVAILABILITY EVENTS 99.9%  OF THE TIME AS AGGREGATED
OVER 12 MONTHS ("AVAILABILITY CALCULATION"). REGULARLY SCHEDULED, OR EMERGENCY
MAINTENANCE EVENTS, OR MEMBER CAUSED OUTAGES OR DISRUPTIONS SHALL NOT CONSTITUTE
UNAVAILABILITY EVENTS. FURTHER, UNAVAILABILITY EVENTS DO NOT INCLUDE ANY LOSS OF
SERVICE OF ANY TYPE AS A RESULT OF ANY EVENT OR CONDITION NOT WHOLLY WITHIN THE
CONTROL OF IBEAM.  CONTENT PROVIDER MUST REPORT UNAVAILABILITY EVENTS TO IBEAM
CONTENT PROVIDER SERVICE WITHIN SEVEN (7) DAY OF SAID EVENT.  FOLLOWING IBEAM
RECEIPT OF CONTENT PROVIDER REPORT OF THE UNAVAILABILITY EVENT, IBEAM WILL
ATTEMPT TO CONFIRM SAID EVENT AND IF CONFIRMED, THE INCIDENT WILL BE RECORDED,
AND USED IN THE YEARLY SERVICE AVAILABILITY CALCULATION FOR THE CONTENT
PROVIDER. IBEAM FURTHER STATES THAT IN THE EVENT THAT IBEAM REDIRECTS TCP/IP
TRAFFIC THAT IS NOT CONTENT, AS THAT TERM IS DEFINED IN THIS AGREEMENT, IBEAM
WILL CORRECT SUCH AN ERROR WITHIN ONE HOUR. MEMBERS SOLE REMEDY FOR BREACH UNDER
THIS PROVISION WILL BE TO TERMINATE THIS AGREEMENT WITHOUT PENALTY.

5.3    EXCEPT AS SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY, AND EACH
PARTY HEREBY SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES, EXPRESS
OR IMPLIED, REGARDING THE PRODUCTS AND SERVICES CONTEMPLATED BY THIS AGREEMENT,
INCLUDING ANY IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF
PERFORMANCE OTHER THAN ANY REPRESENTATIONS OR WARRANTIES THAT CANNOT BE EXCLUDED
BY LAW.

5.4  IBEAM FURTHER DISCLAIMS THAT IT HAS WARRANTED THAT THE CONTENT PROVIDED
HEREUNDER IS UNDER IBEAM'S EDITORIAL CONTROL IN ANY MANNER WHATSOEVER OR THAT IT
IS NOT OBSCENE, INDECENT, OFFENSIVE OR HARMFUL TO MINORS.

5.5  Member makes no representation of warranty regarding the performance or
availability of the Member network or the timing and breadth of completion of
new network implementation, and  disclaims any liability in connection herewith.

6.0 TERM AND TERMINATION
------------------------

6.1  This Agreement shall commence on the Effective Date and shall continue for
thirty-six (36) months. Either Party may, at its option, terminate with sixty
(60) days notice prior to the one (1) year anniversary of the
<PAGE>

Effective Date, thereafter termination may only be effectuated through a
material breach by the other party which is not cured within ten (10) days.

6.2 If this Agreement is terminated for any reason, each Party shall
expeditiously stop using, remove and/or return the other Party's proprietary
information including but not limited to Confidential Information, trademarks,
tradenames, and servicenames. Additionally, Member will disconnect all iBEAM
equipment from the Member Network, and provide iBEAM access to the equipment for
iBEAM retrieval of said equipment.

6.3   In the event that this Agreement terminates for any reason, the following
Articles shall survive the termination: Articles 5 and 15.

7. INTERPRETATION
-----------------

7.1   Changes: All changes to this Agreement must be in writing, signed by each
Party and reference this Agreement and the Effective Date.

7.2    Order of Precedence: The terms and conditions of this Agreement shall
take precedence over those set forth within each Exhibit, Addendum or other
written document, signed by both parties and specified as an addition or change
to this Agreement.

CUMULATIVE
----------

8.1   The waiver by either Party of a breach or default by the other Party of
any of the provisions of this Agreement shall not be construed as a waiver of
any succeeding breach or default of the same or any other provisions of this
Agreement and shall not impair the exercise of any rights accruing to it under
this Agreement thereafter; nor shall any delay or omission on the part of either
Party to exercise or avail itself of any rights accruing to it under this
Agreement operate as a waiver of any breach or default by the other Party of any
of the said provisions.

8.2   All rights and remedies provided in this Agreement are cumulative and are
not exclusive of any rights or remedies provided by law.

9  NOTICES
----------

All communications in connection with this Agreement shall be in writing and may
be given by telecopy or mail to the recipient at the address set out in this
Agreement and sent to the attention of General Counsel or Chief Financial
Officer.

10  COSTS
---------

Each Party shall bear its own legal, accounting and other costs, charges and
expenses of and incidental to this Agreement.

11 DENIAL OF PARTNERSHIP
------------------------

Nothing herein contained shall be construed as creating the relationship of
partnership, joint venture, fiduciary relationship or principal and agent
between the parties.  Neither Party may pledge or purport to pledge the credit
of the other Party or make or purport to make any representations, warranties or
undertakings for the other Party.

12 FORCE MAJEURE
----------------

12.1  Where a Party is unable, wholly or in part, by reason of force majeure, to
carry out any obligations under this Agreement that obligation is suspended so
far as it is affected by force majeure during the continuance thereof.

12.2  In this Agreement, "force majeure" means an act of God, strike, lockout or
other interference with work, war declared or undeclared, blockade, disturbance,
lightning, fire, earthquake, storm, flood, explosion, network failures, error in
the coding of electronic files, software limitations, or inability to obtain
telecommunications services, governmental or quasi-governmental restraint
expropriation prohibition intervention direction or embargo, unavailability or
delay in availability of equipment or transport, inability or delay in obtaining
governmental or quasi-governmental approvals consents permits licenses
authorities or allocations, and any other cause whether of the kind specified
above or otherwise which is not reasonably within the control of the Party
affected.

13 ASSIGNMENT
-------------

Except for (i) assignment to a successor who acquires substantially all of the
assets and business of iBEAM or Member, (ii) assignment to a subsidiary company,
parent company, or subsidiary of a parent company, or (iii) assignment, pledge,
or transfer by iBEAM of any interest in any payments to be received by iBEAM
hereunder, neither party hereto may assign this Agreement or any portion thereof
without the prior written consent of the other.  Any assignment permitted
hereunder or otherwise agreed to by the other Party hereto will not relieve the
<PAGE>

assigning party of any obligations with respect to any covenant, condition, or
obligation required to be performed by the assigning Party under this Agreement

14 PROMOTION AND PUBLIC ANNOUNCEMENT
------------------------------------

14.1   Each Party shall have the right to make public announcements and/or press
releases using the other Party's name provided they have obtained prior written
approval, which shall not be unreasonably withheld.

14.2   iBEAM may offer Member certain tradenames and/or logos for use on
Member's Internet web site. Member may use these tradenames and/or logos only if
Member agrees to and abides by all usage requirements set forth within the
download area containing these tradenames and/or logos. Notwithstanding anything
to the contrary Member agrees to remove these tradenames and/or logos, from any
Member owned, operated or run in the name of, equipment or storage device within
twenty four (24) hours of receiving a request by iBEAM to remove said tradenames
and/or logos.

15 CONFIDENTIALITY
------------------

15.1 Each Party acknowledges that during the contractual relationship created
under the Agreement, situations may arise which require that they be given
access to Confidential Information (as defined more specifically in Article
15.2) owned by the other Party, its suppliers or customers.

15.2 The Receiving Party of the Confidential Information recognizes that the
Disclosing Party has a proprietary interest in maintaining the confidentiality
of such Confidential Information.  The Receiving Party shall not, during the
term of this Agreement and for three (3) years after the termination of this
Agreement disclose any Confidential Information of the Disclosing Party to any
third party or use any Confidential Information for its benefit or for the
benefit of any third party except as permitted herein or to further the purposes
of this Agreement. The Receiving Party shall take reasonable precautions to
maintain the confidentiality of all Confidential Information, and in no case
lesser precautions that Receiving Party takes with its own similar Confidential
Information. Upon termination of this Agreement for any reason, each Party shall
immediately return or destroy all Confidential Information of the other Party in
its possession or control.

15.3 Confidential Information shall mean all information, whether in tangible
form or communicated orally, which is learned by the Receiving Party in the
course and performance of its obligations under this Agreement  (i) which is
labeled or stamped Confidential (or words to that effect), (ii) which is of the
type that Receiving Party has been informed to be confidential, and (iii)
concerns the Disclosing Party's products, or contents thereof or services
(existing or potential), business affairs, pricing, suppliers, customers, and
distributors, including without limitation, customer usage data, computer
hardware and software (in existence or under development), pending patent
applications,  technical, sales and business reports, technical or research
notebooks, and information and data, whether owned by the Disclosing Party or a
third party, relating to the Disclosing Party's commercial activities.  Excluded
from the foregoing definition is information which: i) at the time of
disclosure, is, or, after disclosure, becomes generally known or available to
the public other than as a consequence of the Receiving Party breach of this
Agreement; ii ) was properly known or otherwise available to the Receiving Party
prior to the disclosure by the Disclosing Party; iii) was disclosed by a third
party to the Receiving Party after the disclosure by the Disclosing Party if
such third party's disclosure neither violates any obligation of the third party
to the Disclosing Party nor is a consequence of  the Receiving Party's breach of
this Agreement; iv)the Disclosing Party authorizes a release.

15.4 The rights and obligations of the parties with respect to confidentiality
shall survive
termination of this Agreement.

16.   ACTS BY LAW
-----------------

Neither party shall be under any obligation to perform any service or deliver
any work should such service or delivery constitute a violation of any
applicable law.

17. GOVERNING LAW
-----------------

This Agreement shall be governed by, and construed and enforced in accordance
with the laws of the State of California, without regards to its choice of law
provisions. The exclusive jurisdiction for any legal proceeding regarding this
Agreement shall be in the courts of the State of California and the Parties
hereto expressly submit to the jurisdiction of said courts.

18. SEVERABILITY
----------------

If any provision or provisions of this Agreement shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining portions shall not in any way be affected or impaired thereby.
<PAGE>

19 INTEGRATION
--------------

This Agreement supersedes and replaces any and all prior agreements,
understandings or arrangements, whether oral or written, heretofore made between
the Parties and relating to the subject matter hereof and constitutes the entire
understanding of the Parties with respect to the subject matter of this
Agreement. This Agreement may not be altered or amended except by an express
written agreement signed by both Parties hereto.

iBEAM Broadcasting Corporation             Covad

By: /s/ Robert Davis                       By:  /s/ Peter Clark
    ------------------------------              ----------------------------

Printed: Robert Davis                      Printed: Peter Clark
         -------------------------                  -----------------------

Title: V.P. Sales                          Title: Director, Business Development
       ---------------------------                ------------------------------
                                                  10/5/99
<PAGE>

Exhibit A Statement of Work to Agreement No. 100599 Covad
Party  Responsibilities

1.   iBEAM will be responsible for the following actions:
     .    A satellite pre-installation site survey of the facility by phone or
          at iBEAM's option at customer site.

     .    The installation of the satellite dish utilizing a non-penetrating
          roof mount on the roof of the facility or a designated area of the
          building,

     .    The running of coaxial cable to the data or rack room where the iBEAM
          MaxCaster indoor components will be racked.

     .    The racking and cabling of the server and switch components of the
          MaxCaster.

     .    Registration and pointing of the satellite system.

     .    The activation of the system with the iBEAM Network operations
          monitoring facility. This includes adding IP Addresses, Host ID names
          to the iBEAM server and to Tier 1 NOC.

     .    Orientation of the customer technical staff to the equipment and to
          the remote monitoring process.

     .    [*]

     .    [*]

2.   The Member will be responsible for the following actions for installations
into the Member Network:

     .    Completion of the customer data network site survey. This information
          is critical to the iBEAM Tier 1 NOC in the monitoring of the MaxCaster
          and to the integration of the MaxCaster in the data network. The
          customer will be required to provide IP addresses, host ID names,
          subnet masks, and gateway default as specified by iBEAM.

     .    Designate a single point of contact for satellite and network
          installation issues.

     .    Allow iBEAM NOC to monitor traffic to the switch, server or other
          equipment for the following protocols, SNMP, FTP, Telnet, Ping,
          Traceroutes.

     .    Access to the data room for installation of the MaxCaster indoor
          components and the roof structure for installation of the MaxCaster
          satellite antenna. Installation must be supported by on-time access to
          the install areas.

     .    One "ACTIVE" twisted pair "analog" telephone line for termination to
          the iBEAM MaxCaster internal modem card. This is to allow for "out of
          band" monitoring and control of the iBEAM system.

     .    Member is responsible to pull data cables between router and
          MaxCaster.

[*]  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.
<PAGE>

     .    Connection to the Member Lan/Wan Network. If a layer 4 switch solution
          is utilized a connection to the bit path must be provided.

     .    Access to 120 Volt AC from the Rack Power distribution harness for the
          server and the switch.

     .    Provided space is available, adequate rack space for server, switch or
          other equipment. In addition, iBEAM will need to know the type and
          model of racks used in the data room for determining complementary
          shelves or rack guides for the server.

     .    Technical support and actual physical connection of the Layer 4 switch
          into the bit stream and associated patching if required. The Member is
          responsible for inserting the Layer 4 switch into the bit stream if
          required.

     .    Access to MaxCaster user logs for tracking purposes such as number of
          users on the network.

     .    UPS support for 14-Volt Amp power requirement for a period of 60
          minutes to allow an orderly shutdown of the equipment.

     .    Keep area in which the MaxCaster is located at 80 or less degrees
          Fahrenheit and 75% or less, non-condensing relative humidity.

     .    Alert iBEAM during power outage or any Member Network outage, whether
          planned or otherwise, by telephoning iBEAM at iBEAM specified numbers.

     .    Inform iBEAM whether the Member network is Multicast enabled at any
          time during the contractual relationship.

     .    Provide iBEAM optimal connectivity into Member Network as mutually
          agreed by the Parties

iBEAM Broadcasting Corporation        Covad

By: /S/ Robert Davis                  By: /S/ Peter Clark
   ------------------------------        --------------------------------

Printed: Robert M. Davis              Printed: Peter Clark
        -------------------------             ---------------------------

Title: V.P. Sales                     Title: Director, Business Development
      ---------------------------           -------------------------------

Date: 10/5/99                         Date: 10/5/99
     ----------------------------          ------------------------------

<PAGE>

Exhibit B Milestone Schedule to Agreement No. 100599 Covad

The Parties hereto will mutually agree upon a reasonable installation plan that
will detail the order and time for installation into each site. Notwithstanding
the above the Parties hereby agree to install the following numbers of sites in
the following schedule:

  Milestones:
  1)  Upon Covad's completion of the new network implementation in each market,
      the Parties hereby agree to have Initiated Installation in said market
      within thirty (30) days.
  2)  Upon Initiated Installation, each site will achieve Complete Installation
      within an additional thirty (30) days.

  Initiated Installation shall mean that iBEAM has been supplied with a
completed installation check list, an analog phone connection, and all iBEAM
indoor equipment is installed and operational within Member Network.

Complete Installation shall mean that Member has obtained rights sufficient to
install all iBEAM outdoor equipment, including but not limited to a satellite
receiver and that iBEAM has installed such outdoor equipment.

iBEAM Broadcasting Corporation       Covad

By: /s/ Robert Davis                 By: /s/ Peter Clark
   -----------------------------        -----------------------------

Printed: Robert Davis                Printed: Peter Clark
        ------------------------             -------------------------

Title: V.P.-Sales                    Title: Director, Business Development
      --------------------------           -------------------------------

Date: 10/5/99                        Date: 10/5/99
     ---------------------------          -------------------------------

<PAGE>

Exhibit C Technical Requirements to Agreement No.100599 Covad

     .    Covad must approve all technical details of the iBEAM service and
          equipment before installation in any Covad data centers or in the
          Covad network. As iBEAM transitions its technical service from Layer 4
          switching, iBEAM will warrant the suitability of the new technique for
          deployment before any changes are made in field deployments in the
          Covad network or with any Covad-affiliated ISP.

     .    iBEAM will be responsible for all technical support and service
          assurance for the iBEAM equipment installed at any Covad-affiliated
          ISP or in a Covad data center. iBEAM warrants that only TCP/IP traffic
          destined for contracted content provider origin servers will be
          redirected to the iBEAM MaxCaster. All errors in traffic routing
          caused by the iBEAM equipment and configuration will be remedied by
          iBEAM in no more than 1 hour after notification.

     .    If the iBEAM equipment is causing problems on Covad's Layer 3 network,
          Covad reserves the right to disconnect the iBEAM equipment if iBEAM
          cannot fix the problem in a timely fashion.

     .    The iBEAM equipment will be integrated into Covad's network in a
          manner that is consistent with its functionality and Covad's other
          design criteria.

iBEAM Broadcasting Corporation           Covad

By: /s/ Robert Davis                     By: /s/ Peter Clark
   ------------------------------           ------------------------------

Printed: Robert Davis                    Printed: Peter Clark
        -------------------------                -------------------------

Title: VP-Sales                          Title: Director, Busines Development
      ---------------------------               -----------------------------

Date: 10/5/99                                 Date: 10/5/99
     ----------------------------                  ----------------------------

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