Document:

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                                                                   EXHIBIT 10.11

                                                                January 27, 2000
                                                                ----------------

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.

                           SYSTEM SERVICES AGREEMENT

     This System Services Agreement ("Agreement") is made as of January 27,
2000 (the "Effective Date") between America Online, Inc., a Delaware corporation
with its principal office at 22000 AOL Way, Dulles, VA 20166 ("AOL"), and iBEAM
Broadcasting, Inc., a Delaware corporation with its principal office at 645
Almanor Avenue, Suite 100, Sunnyvale, CA 94086 ("iBEAM").  Each of AOL and iBEAM
may be individually referred to herein as a "Party" and collectively, as the
"Parties."

                                    RECITALS

     A.  AOL desires to engage iBEAM to provide iBEAM's content distribution
services (the "Services") to AOL for installation within the areas of the AOL
Network infrastructure as set forth herein and for the purpose of improving
content distribution both within the AOL Network and between the AOL Network and
the Internet (collectively, the "Installation and Distribution Right").

     B.  iBEAM desires to provide the Services to AOL for the purpose of
obtaining access to AOL's Internet bandwidth for use by iBEAM on behalf of its
customers in accordance with the terms of this Agreement, and to provide support
to AOL Users accessing content from iBEAM servers.

     C.  The Parties intend to set forth in this Agreement the terms and
conditions governing iBEAM's provision of the Services and the compensation to
AOL for providing iBEAM with the Installation and Distribution Right.

     THEREFORE, the Parties hereby agree as follows:

     1.  iBEAM Services.  iBEAM will provide the Services using iBEAM servers,
         --------------
which shall be physically located within the AOL host complex (collectively, the
"iBEAM Servers").  iBEAM initially will install the iBEAM Servers within the AOL
host complex using no more than [*] standard equipment racks (each an "Equipment
Rack", and the [*] standard Equipment Racks collectively referred to herein as
the "Obligatory Equipment Rack Space") in each operational AOL data center
(currently in Reston, Virginia, Manassas, Virginia and Dulles, Virginia).  AOL
shall make space in such racks available to iBEAM no later than fifteen (15)
days after the Effective Date (the "Rack Space Availability Date"). The date on
which iBEAM completes the initial installation such that AOL's members have
access to the Media Content (as defined below) shall be known as the
"Installation Date."  iBEAM will retain all right, title and interest in and to
the iBEAM Servers and all iBEAM software and other IBEAM equipment installed on
or used in connection with the iBEAM Servers (other than the Equipment Racks).
The number of iBEAM Servers to be used by iBEAM in providing the Services will
be agreed upon by the Parties as part of the implementation of this Agreement.
If, following the Effective Date, IBEAM requests additional space in the AOL
host complex for further

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Equipment Racks (i.e., in addition to the Obligatory Equipment Rack Space), AOL
and iBEAM will discuss terms on which AOL may provide such space to iBEAM. iBEAM
will provide to AOL rolling quarterly forecasts of anticipated space needs
within the AOL host complex, and AOL, in its sole discretion, shall decide
whether to accommodate any such iBEAM request for additional Equipment Rack
space. The Services will facilitate the distribution of (and iBEAM shall be
permitted to use the iBEAM Servers and utilize AOL's Internet bandwidth to send,
receive and deliver) text, software, communications, images, video, sound and
other media or information (collectively, "Media Content"), as follows:

          (a) Media Content will be delivered to members of the AOL Service and
the CompuServe Service (collectively, "AOL Users") through iBEAM Servers (the
"Internal Distribution");

          (b) Media Content will be delivered from the Internet to iBEAM Servers
using AOL's Internet bandwidth ("Inbound Distribution"); and

          (c) Media Content will be delivered from iBEAM Servers to Internet
recipients who are not AOL Users as expressly permitted by the terms of this
Agreement, using AOL's Internet bandwidth ("Outbound Distribution").

     2.  Payments. iBEAM will make the following payments to AOL:
         --------

          (a) Guaranteed Payments. iBEAM shall pay AOL a non-refundable (except
              -------------------
as provided expressly to the contrary in this Section 2 (a) and Section 11 of
this Agreement ) guaranteed payment of [*] Dollars (US$[*]), as follows: (i) [*]
Dollars (US$[*]) upon execution of this Agreement and (ii) [*] Dollars (US$[*])
upon the earlier of (A) the Installation Date or (B) sixty (60) days after the
Effective Date. The parties acknowledge that if iBEAM terminates this Agreement
due to AOL's failure to provide iBeam with the Obligatory Equipment Rack Space
as required under Section 1, the above payments will be refundable.

          (b)  Revenue Sharing Arrangement.
               ---------------------------

               (i) If at the end of any calendar quarter during the Term, the
          amounts owed to AOL under subparagraphs (iii) and (iv) below exceed
          the corresponding quarterly minimum dollar amounts set forth below
          (the "Revenue Sharing Threshold"), then iBEAM will pay to AOL the
          amounts owed to AOL under subparagraphs (iii) and (iv) below, less the
          corresponding Revenue Sharing Threshold for the applicable calendar
          quarter. The Revenue Sharing Threshold is as follows:

               Quarter    Revenue Sharing Threshold
               -------    -------------------------

               1st        $[*]

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               2nd        $[*]

               3rd        $[*]

               4th        $[*]

               5th        $[*]

               6th        $[*]

               7th        $[*]

               8th        $[*]

     (ii)    There shall be no carryover of the Revenue Sharing Threshold from
any previous calendar quarter. The Revenue Sharing Threshold shall apply only to
amounts owed to AOL as a result of Gross Revenues generated in accordance with
subparagraphs (iii) and (iv) below.

     (iii)   Traffic Between AOL Network and the Internet.  Within [*] ([*])
             --------------------------------------------
days following the end of each month of the Term, AOL shall calculate iBEAM's
Monthly Bandwidth Usage, in accordance with Section 9.1 of this Agreement, and
shall notify iBEAM of such usage.  Within [*] ([*]) days following the end of
each month of the Term, iBEAM shall pay to AOL [*] percent ([*]%) of all Gross
Revenues generated from the traffic between the AOL Network and the Internet
during such month on the iBEAM Servers for all traffic up to and equal to the
Maximum Projected Inbound Distribution Bandwidth and Maximum Projected Outbound
Distribution Bandwidth (each as defined in Section 9.3 hereto) (collectively,
the "Minimum Internet Bandwidth Payment"); provided, however, that for each
                                           --------  -------
month in which iBEAM's Monthly Bandwidth Usage equals or exceeds either the
Maximum Projected Inbound Distribution Bandwidth or the Maximum Projected
Outbound Distribution Bandwidth, for such month, iBEAM shall pay to AOL, within
[*] ([*]) days following the end of such month (A) the Minimum Internet
Bandwidth Payment plus  (B) the greater of (1) [*] Dollars (US$[*]) per T-3-
                  ----
equivalent bandwidth for the amount by which the Inbound Distribution traffic
during such month exceeded the Maximum Projected Inbound Distribution Bandwidth
or (2) [*] Dollars (US$[*]) per T-3 equivalent bandwidth for the amount by which
the Outbound Distribution traffic for such month exceeded the Maximum Projected
Outbound Distribution Bandwidth for such month.  . By way of example, if the
Inbound Distribution usage exceeds the Maximum Projected Inbound Distribution
Bandwidth by [*] ([*]) Mbps and the Outbound Distribution exceeds the Maximum
Projected Outbound Distribution Bandwidth by [*] ([*]) Mbps in a particular
month, iBEAM would pay AOL [*] Dollars (US$[*]) per T3-equivalent multiplied by
[*] ([*]) Mbps (rather than $[*] per T3-equivalent multiplied by [*] ([*])
Mbps), in addition to the payment referred to in the preceding clause (A).  For
purposes of this Agreement, (x) "T-3-equivalent" bandwidth shall mean at least
[*] ([*]) Mbps and (y) "Gross Revenues" for a particular month shall mean the
payments billed by iBEAM to its customers during such month for Media Content

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delivery services and excluding any sales, excise, export, use and similar
taxes.

     (iv) Traffic Within the AOL Network.  iBEAM shall pay AOL [*] percent
          ------------------------------
([*]%) of all Gross Revenues generated from traffic on the iBEAM Servers located
within or directly attached to the AOL Network (including, without limitation,
the AOL Service and the CompuServe Service) and delivered to AOL Users.

     (v)  Other Stipulations. iBEAM agrees that it will not structure its
          ------------------
customer relationships so as to circumvent (or implement any billing mechanism
that would have the effect of circumventing) the revenue sharing provisions of
this Agreement.

     3.  Purchase of Services by AOL.  AOL may elect during the Term to purchase
         ---------------------------
Services from iBEAM for use in connection with the delivery of Media Content
from AOL's Internet websites (including but not limited to aol.com,
netcenter.com, spinner.com, netscape.com and moviefone.com), pursuant to iBEAM's
standard Service Terms and Conditions, which are attached hereto as Schedule A
to this Agreement. AOL may elect, at its sole discretion, to offset against or
waive iBEAM's payment obligations as set forth in this paragraph in exchange for
AOL purchasing Services in accordance with this Section 3.  AOL's purchase of
iBEAM's Services under this Section will be measured based on Mbps routed over
iBEAM's network, calculated at the "[*]" method, and priced in accordance with
the pricing schedule set forth in the Services Terms and Conditions attached as
Schedule A to this Agreement.

     4.  Warrants. Upon execution of this Agreement and subject to approval by
         --------
iBEAM's board of directors, iBEAM will issue to AOL warrants (in form and
substance satisfactory to AOL) to purchase [*] of iBEAM common stock at ______
dollars per share (price to be determined after execution of the agreement
concurrent with execution of a warrant agreement between AOL and iBEAM.
(collectively, the "Warrants").  The warrants shall fully vest upon the earlier
of (i) three (3) years, (ii) the occurrence of any Initial Public Offering, or
(iii)the expiration of this Agreement.  For purposes of this Agreement, "Initial
Public Offering" shall mean an offering of iBEAM common stock to the public per
registration with the SEC for an aggregate value of greater the [*]. The Parties
will agree on additional terms and conditions with respect to the Warrants.

     5.  Media Content Restrictions.
         --------------------------

         (a)  Compliance with AOL Terms of Service. If AOL notifies iBEAM that
              ------------------------------------
     any Media Content delivered to AOL Users violates AOL's Terms of Service
     (which are the terms of service generally applied to AOL Users), iBEAM will
     promptly prevent such Media Content from being routed through the iBEAM
     Servers to the extent technically feasible; provided, however, that if
                                                 --------  -------
     iBEAM is unable to prevent such Media Content from being routed through the
     iBEAM Servers, then AOL may suspend the delivery of such Media Content to
     AOL Users, without penalty, immediately upon notice to iBEAM. AOL may
     modify its Terms of Service from time to time at its discretion; provided,
                                                                      --------
     however, that if AOL makes any material changes or revisions to its Terms
     -------
     of Service, notifications of such material changes or revisions shall be
     posted on the America

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     Online service at least thirty (30) days prior to the effectiveness of such
     revisions. The current Terms of Service are available on the AOL Service at
     Keyword: TOS.

         (b)  User Information.  iBEAM shall ensure that iBEAM's collection,
              ----------------
use and disclosure of information obtained from AOL Users under this Agreement
("User Information") complies with (i) all applicable laws and regulations and
(ii) AOL's standard privacy policies, available on the AOL Service at the
keyword term "Privacy" (e.g., no member profiling or data mining). iBEAM will
not disclose User Information collected hereunder to any third party in a manner
that identifies AOL Users as end users of an AOL product or service or use User
Information collected under this Agreement to market another Interactive
Service. For purposes of this Agreement, "Interactive Service" shall mean any
entity offering one or more of the following: (i) [*] (e.g., [*]); (ii) [*]
(e.g., [*] and/or [*] (e.g., [*]); and (iii) [*].

     6.  IBEAM's Responsibilities.  In providing the Services, iBEAM will
         ------------------------
distribute the Media Content to AOL Users exclusively from the iBEAM Servers
located within the AOL complex (subject to capacity restraints), and if AOL at
its sole discretion so requests, iBEAM will promptly provide AOL with
appropriate records to confirm compliance with this obligation.  Notwithstanding
the foregoing, AOL may request that iBEAM distribute Media Content to AOL Users
from other iBEAM servers located outside of the AOL complex (i.e., other than
the iBEAM Servers) in order to address emergency conditions, scheduled
maintenance or capacity constraints based on the number of iBEAM Servers located
within the AOL complex, in which case IBEAM shall do so, to the extent
commercially reasonable (collectively, the "Extraordinary Distribution
Arrangement"); provided, however, that the Media Content served pursuant to any
               --------  -------
such Extraordinary Distribution Arrangement shall not be subject to the revenue
share provisions described in paragraph 2 of this Agreement; provided, further,
                                                             --------  -------
that any resulting increase in Inbound Bandwidth usage is not counted when
measuring Inbound Distribution traffic as described in paragraph 2(b)(iii)(B).
iBEAM acknowledges and agrees that, except as expressly contemplated herein, it
does not require any access to AOL usage data, including but not limited to web
usage logs, to perform its obligations under this Agreement.  iBEAM will ensure
that its iBEAM Servers and Services support and interoperate with the leading
technology in the Internet industry (including, without limitation, [*] caching
servers, [*] and [*] browsers, [*] and [*] streaming software and any other
technology designated from time to time by AOL), and will be responsible for
providing the Services in a professional manner in conformance with industry
standards and the provisions of this Agreement; provided, however, that iBEAM
                                                --------  -------
does not represent or warrant that the Services will be uninterrupted or error
free, and iBEAM's liability in the event of interruptions, errors or failures in
its Services is limited as set forth in Section 10 below.  THE SERVICES ARE
PROVIDED "AS IS" AND IBEAM DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.

     7.  AOL's Responsibilities.  AOL shall be responsible for providing iBEAM
         ----------------------
with the Obligatory Equipment Rack Space to accommodate the iBEAM Servers and
for providing iBEAM with reasonable access to the iBEAM Servers as described in
Section

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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.

[*] 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.

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1 above in order for iBEAM to perform its obligations hereunder. AOL shall also
be responsible for supplying iBEAM with information about AOL's Internet
Protocol addressing scheme to the extent necessary for iBEAM to fulfill its
obligations under this Agreement. Notwithstanding the foregoing, AOL does not
represent or warrant that such services will be uninterrupted or error free, and
AOL's liability in the event of interruptions, errors or failures in the
services to be provided by AOL hereunder is limited as set forth in Section 10
below. In addition, the Parties hereby acknowledge and agree that this Agreement
is conditioned upon AOL's ability to permit iBEAM to utilize AOL's bandwidth in
the manner contemplated herein pursuant to AOL's existing arrangements with
third party peering partners. In the event that an AOL peering partner objects
to the use of its bandwidth (as provided to AOL) in accordance with the terms of
this Agreement, AOL shall have the right (without penalty to AOL) to suspend the
delivery of the Media Content through such peering partner's network, provided
that AOL meets its overall commitment to provide bandwidth as specified in this
Agreement. OTHER THAN AS SET FORTH HEREIN, THE SERVICES PROVIDED BY AOL ARE
PROVIDED `AS IS' AND AOL DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

     8.  Technical/Vendor Cooperation.  iBEAM will cooperate with AOL to the
         ----------------------------
extent commercially reasonable in adjusting the capacity of its Services under
this Agreement to adapt to AOL's changing needs, particularly in providing a
favorable browsing environment to AOL Users. In addition, AOL and iBEAM agree to
cooperate with each other to the extent commercially reasonable with a view to
discussing the provision of other value-added services to America Online content
providers and other IBEAM customers, and IBEAM agrees to make commercially
reasonable efforts to integrate the anticipated needs of AOL and its content
partners into IBEAM's future product plans.

     9.  Connectivity Relationships; Bandwidth Usage Calculation.
         -------------------------------------------------------

         9.1.  Reliance on Third-Party Internet Service Providers.  iBEAM
               --------------------------------------------------
acknowledges that AOL's ability to allow iBEAM to use AOL's bandwidth in the
manner set forth herein may, in part, require the approval of one or more third-
party Internet service providers or content partners that have a direct
connection with AOL for such bandwidth. AOL agrees to use commercially
reasonable efforts to obtain such approval; provided, however, that if any such
                                            --------  -------
third party refuses to grant such approval, then AOL may suspend the delivery of
Media Content through such provider's network in AOL's sole discretion, without
penalty, upon reasonable notice to iBEAM provided that AOL meets its overall
commitment to provide bandwidth as specified in this Agreement. The Parties
agree to act in good faith regarding the placement and connectivity of the iBEAM
Servers in the AOL host complex.

         9.2  Measurement of Monthly Bandwidth Usage.  AOL shall separately
              --------------------------------------
measure the amount of Inbound Distribution bandwidth and Outbound Distribution
bandwidth used by iBEAM through the AOL Network infrastructure during each month
of the Term (collectively, the "Monthly Bandwidth Usage"). AOL shall measure
Monthly

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Bandwidth Usage according to the "[*]" method, calculated as follows: (i) actual
Monthly Bandwidth Usage in megabit-per-second ("Mbps") will be sampled and
collected every [*] (each, an "Individual Data Point," and collectively, the
"Individual Data Points"), and such Individual Data Points shall be stored for
the remainder of the relevant month; (ii) at the end of each such month, all
Individual Data Points shall be ranked in descending order; (iii) the top [*]
percent ([*]%) of the ranked Individual Data Points shall then be discarded; and
(iv) the highest of the remaining, non-discarded Individual Data Points shall
constitute iBEAM's Monthly Bandwidth Usage.

         9.3  AOL Maximum Projected Monthly Total Bandwidth.  Within two (2)
              ---------------------------------------------
days following the Effective Date, AOL shall supply iBEAM with the maximum
surplus Inbound Distribution bandwidth projected to be available to iBEAM on a
monthly basis during the Term (the "Maximum Projected Inbound Distribution
Bandwidth") and Outbound Distribution bandwidth projected to be available to
iBEAM on a monthly basis during the Term (the "Maximum Projected Outbound
Distribution Bandwidth"), each in Mbps, and as determined by AOL in its sole
discretion (the Maximum Projected Inbound Distribution Bandwidth and the Maximum
Projected Outbound Distribution Bandwidth collectively referred to herein as the
"Maximum Projected Bandwidth", and each individually referred to herein as a
"Component"). AOL will have the right to change the Maximum Projected Bandwidth
(or any Component thereof) from time to time during the Term (as it applies to
subsequent months) upon thirty (30) days' prior notice to iBEAM. Notwithstanding
the foregoing, in no event shall (i) the Maximum Projected Inbound Distribution
Bandwidth be less than [*] ([*]) Mbps or (ii) the Maximum Projected Outbound
Distribution Bandwidth be less than [*] ([*]) Mbps. iBEAM may request from time
to time in writing during the Term an increase in the Maximum Projected
Bandwidth (or any Component thereof), and AOL agrees to respond to iBEAM within
fourteen (14) days following receipt by AOL of any such written request as to
whether or not such request is acceptable to AOL; provided, however, that AOL
                                                  --------  -------
shall not be obligated to provide or make available bandwidth beyond the Maximum
Projected Inbound Distribution Bandwidth (in the case of Inbound Distribution)
or the Maximum Projected Outbound Distribution Bandwidth (in the case of
Outbound Distribution).  The Parties hereby acknowledge and agree that any
bandwidth provided to AOL by iBEAM during the Term shall not constitute part of
either the Maximum Projected Bandwidth in any month of the Term.

     10.  Limitation of Liability.
          -----------------------

          (a)  Liability.  NEITHER PARTY (NOR ITS CUSTOMERS OR MEMBERS) SHALL
               ---------
BE LIABLE TO THE OTHER PARTY (NOR ITS CUSTOMERS OR MEMBERS) FOR PUNITIVE,
SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES, INCLUDING WITHOUT
LIMITATION LOST PROFITS OR LOSS OR DAMAGE TO DATA ARISING OUT OF THIS AGREEMENT,
EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES
(COLLECTIVELY, "DISCLAIMED DAMAGES"); PROVIDED THAT EACH PARTY WILL REMAIN
                                      --------
LIABLE TO THE OTHER PARTY TO THE EXTENT ANY DISCLAIMED DAMAGES ARE CLAIMED BY A
THIRD PARTY AND ARE SUBJECT TO INDEMNIFICATION PURSUANT TO SECTION 10(c). EXCEPT
AS PROVIDED IN

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SECTION 10(c), (I) LIABILITY ARISING UNDER THIS AGREEMENT WILL BE LIMITED TO
DIRECT, OBJECTIVELY MEASURABLE DAMAGES, AND (II) THE MAXIMUM LIABILITY OF ONE
PARTY TO THE OTHER PARTY FOR ANY CLAIMS ARISING IN CONNECTION WITH THIS
AGREEMENT WILL NOT EXCEED THE AGGREGATE AMOUNT OF FIXED GUARANTEED PAYMENT
OBLIGATIONS OWED BY EITHER PARTY TO THE OTHER PARTY HEREUNDER IN THE YEAR IN
WHICH THE EVENT GIVING RISE TO LIABILITY OCCURS; PROVIDED THAT EACH PARTY WILL
                                                 --------
REMAIN LIABLE FOR THE AGGREGATE AMOUNT OF ANY PAYMENT OBLIGATIONS OWED TO THE
OTHER PARTY PURSUANT TO THE AGREEMENT.

          (b)  No Additional Warranties.  EXCEPT AS EXPRESSLY SET FORTH IN THIS
               ------------------------
AGREEMENT, NEITHER PARTY MAKES ANY, AND EACH PARTY HEREBY SPECIFICALLY DISCLAIMS
ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE SERVICES,
AOL NETWORK, THE AOL SERVICE, AOL.COM, THE COMPUSERVE SERVICE, THE EQUIPMENT
RACKS, THE MEDIA CONTENT OR THE iBEAM SERVERS, INCLUDING ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED WARRANTIES
ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE. WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING, AOL SPECIFICALLY DISCLAIMS ANY WARRANTY REGARDING
THE PROFITABILITY OF THE iBEAM SERVERS OR THE MEDIA CONTENT.

          (c)  Indemnity. Either Party will defend, indemnify, save and hold
               ---------
harmless the other Party and the officers, directors, agents, affiliates,
distributors, franchisees and employees of the other Party from any and all
third party claims, demands, liabilities, costs or expenses, including
reasonable attorneys' fees ("Liabilities"), resulting from the indemnifying
Party's material breach of any duty, representation, or warranty of this
Agreement.

          (d)  Claims. If a Party entitled to indemnification hereunder (the
               ------
"Indemnified Party") becomes aware of any matter it believes is indemnifiable
hereunder involving any claim, action, suit, investigation, arbitration or other
proceeding against the Indemnified Party by any third party (each an "Action"),
the Indemnified Party will give the other Party (the "Indemnifying Party")
prompt written notice of such Action. Such notice will (i) provide the basis on
which indemnification is being asserted and (ii) be accompanied by copies of all
relevant pleadings, demands, and other papers related to the Action and in the
possession of the Indemnified Party. The Indemnifying Party will have a period
of ten (10) days after delivery of such notice to respond. If the Indemnifying
Party elects to defend the Action or does not respond within the requisite ten
(10) day period, the Indemnifying Party will be obligated to defend the Action,
at its own expense, and by counsel reasonably satisfactory to the Indemnified
Party. The Indemnified Party will cooperate, at the expense of the Indemnifying
Party, with the Indemnifying Party and its counsel in the defense and the
Indemnified Party will have the right to participate fully, at its own expense,
in the defense of such Action. If the Indemnifying Party responds within the
required ten (10) day period and elects not to defend such Action, the
Indemnified Party will be free, without prejudice to any of the Indemnified
Party's rights hereunder, to compromise or defend (and control the defense

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of) such Action. In such case, the Indemnifying Party will cooperate, at its own
expense, with the Indemnified Party and its counsel in the defense against such
Action and the Indemnifying Party will have the right to participate fully, at
its own expense, in the defense of such Action. Any compromise or settlement of
an Action will require the prior written consent of both Parties hereunder, such
consent not to be unreasonably withheld or delayed.

     11. Terms and Termination.  The initial term of this Agreement (the
         ---------------------
"Initial Term") shall be two (2) years from the Installation Date (as defined in
Section 1 of this Agreement). The Parties may mutually agree to renew this
Agreement for up to two (2) additional one-year terms (each such additional
term, a "Renewal Term," and together with the Initial Term, collectively
referred to herein as the "Term"). Either Party may terminate this Agreement if
the other fails to cure a material breach of this Agreement within thirty (30)
days of receiving written notice of the breach from the terminating party.
Notwithstanding the foregoing, AOL may terminate the Agreement without penalty
in the event that iBEAM fails to reach [*] Dollars (US$[*]) in Gross Revenues
owed to AOL (pursuant to Section 2(b) of this Agreement) by the first
anniversary of the Effective Date ("Insufficient Gross Revenues Termination");
provided, however, that upon any such Insufficient Gross Revenues Termination,
--------  -------
AOL shall refund to iBEAM [*] Dollars (US$[*]).

     12. Public Relations and Confidentiality. Neither Party shall make or
         ------------------------------------
cause to be made any news release or other public announcement pertaining to
this Agreement or the relationship created hereby or disclose such information
to any third party without the express prior written consent and approval of the
other Party, which will not be unreasonably withheld, except to the extent
required by applicable law, in which case, the disclosing Party shall provide
the other Party with reasonable advance notice of its obligation to make such a
disclosure. The failure by one Party to obtain the prior written approval of the
other Party prior to issuing a Press Release (except as required by law) shall
be deemed a material breach of this Agreement.

     13. Audit Rights.  In making the payments required pursuant to this
         ------------
Agreement, the Party responsible for the same will accompany such payments with
a statement setting forth, in reasonable detail, the basis upon which the
payment has been calculated and the manner of such calculation. Each Party will
keep accurate and complete records supporting such calculation for a period of
at least three (3) years following the date the payment relating to such records
has been made. Each Party agrees to permit such records to be examined, upon
reasonable prior notice but no more than once per year during the Term, by an
independent certified public accountant designated by the Party seeking to audit
the same at such Party's cost in order to determine the accuracy of the reports
and payments made hereunder.  Prompt adjustment shall be made to correct any
errors or omissions in any reports or payments disclosed by any such audit
examination.  In the event that an audit uncovers inaccuracies in payments made
by either Party to the other Party in excess of five percent (5%), the audited
Party agrees to pay for the cost of the audit.  Similarly, AOL will keep
appropriate records supporting its calculation of iBEAM's bandwidth usage

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under this Agreement and AOL's purchase of Services and will permit examination
of such records by an independent certified public accountant (on behalf of
iBEAM and at iBEAM's sole cost and expense), and an adjustment shall promptly be
made to correct any errors or omissions disclosed by any such examination.

     14. Confidentiality.  The Parties agree that all disclosures of
         ---------------
confidential and/or proprietary information before and during the Term shall
constitute confidential information (collectively, "Confidential Information")
of the disclosing Party.  Such Confidential Information shall include, but not
be limited to: AOL User and member information, product designs and plans,
architecture and configuration of the AOL Service, source code, the existence of
this Agreement and the relationship created hereby.  Each Party shall use
commercially reasonable efforts to ensure the confidentiality of such
information supplied by the disclosing party, or which may be acquired by either
party in connection with or as a result of the provision of the services under
this Agreement.  Each Party agrees that it shall not disclose, use, modify,
copy, reproduce or otherwise divulge such confidential information other than to
fulfill its obligations under this Agreement, except to the extent required by
applicable law, in which case, the disclosing party shall provide the other
Party with reasonable advance notice of its obligation to make such a
disclosure.  Each Party further agrees to hold  harmless and indemnify the other
Party in the event of any disclosure by such Party.  "Confidential Information"
shall not include information (a) already lawfully known to or independently
developed by the receiving Party, (b) disclosed in published materials, (c)
generally known to the public, or (d) lawfully obtained from any third party.

     15. Change of Control.  "Change of Control" is defined as (a) the
         -----------------
consummation of a reorganization, merger or consolidation or sale or other
disposition of substantially all of the assets of a party or (b) the acquisition
by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1933, as amended) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under such Act) of more
than 50% of the outstanding voting securities of the Company or of securities
representing the right to elect a majority of the Company's board of directors.
iBEAM shall not assign this Agreement or any right, interest or benefit under
this Agreement without the prior written consent of AOL, which will not
unreasonably be withheld. Assumption of this Agreement by any successor to iBEAM
(including, without limitation, by way of merger or consolidation) shall be
subject to AOL's prior written approval, which will not unreasonably be
withheld. In the event of any Change of Control of iBEAM or any assignment or
assumption of this Agreement, without AOL's prior written consent, AOL shall
have the right to terminate this Agreement upon written notice to iBEAM. Subject
to the foregoing, this Agreement shall be fully binding upon, inure to the
benefit of and be enforceable by the Parties hereto and their respective
successors and assigns.

     16. Force Majeure.  During the term of this Agreement, neither Party shall
         -------------
be in default of its obligations to the extent that its performance is delayed
or prevented by causes beyond its reasonable control, including but not limited
to acts of God, natural disasters, bankruptcy of a vendor, strikes and other
labor disturbances, acts of war or civil disturbance, or other equivalent or
comparable events.

                                       10
<PAGE>

     17. Notices.  All notices or reports permitted or required under this
         -------
Agreement shall be in writing and shall be delivered by personal delivery,
nationally recognized overnight courier, telegram, or facsimile transmission or
by registered mail, return receipt requested.  Notices shall be sent to the
signatories of this Agreement at the address set forth above or such other
address as either party may specify in writing.  Notices shall be effective upon
receipt. In the case of AOL, such notice will be provided to both the President,
Business Affairs (fax no. 703-[*]) and the Deputy General Counsel (fax no. 703-
[*]), each at the address of AOL set forth in the first paragraph of this
Agreement.  In the case of iBEAM, except as otherwise specified herein, the
notice address will be the address for iBEAM set forth in the first paragraph of
this Agreement, with the other relevant notice information, including the
recipient for notice and, as applicable, such recipient's fax number or e-mail
address, to be as reasonably identified by iBEAM.

     18. Injunctive Relief.  It is understood and agreed that, notwithstanding
         -----------------
any other provisions of this Agreement, breach of the provisions of this
Agreement by a Party will cause the other Party irreparable damage for which
recovery of money damages would be inadequate and that the non-breaching Party
may therefore seek timely injunctive relief to protect its rights under this
Agreement in addition to any and all remedies at law.

     19. No Agency.  Nothing contained herein shall be construed as creating any
         ---------
agency, partnership, or other form of joint enterprise between the Parties.

     20. Full Power.  Each Party warrants that it has full power to enter into
         ----------
and perform this Agreement and the person signing this Agreement on such Party's
behalf has been duly authorized and empowered to enter into this Agreement. Each
Party further acknowledges that it has read this Agreement, understands it, and
agrees to be bound by it.

     21. Survival.  Sections 10 ("Limitation of Liability"), 12 ("Public
         --------
Relations & Confidentiality"), 13 ("Audit Rights"), 14 ("Confidentiality"), 18
("Injunctive Relief"), 19 ("No Agency"), 21 ("Survival"), and 22 ("Legal
Matters") of this Agreement shall survive cancellation, termination or
expiration of this Agreement.

     22. Legal Matters.  This Agreement represents the entire agreement between
         -------------
the Parties regarding the subject matter hereof.  If any part of this Agreement
is held invalid or unenforceable, that portion shall be construed in a manner
consistent with applicable law to reflect, as nearly as possible, the original
intentions of the Parties, and the remaining portions shall remain in full force
and effect.  The laws of the State of Delaware, excluding its conflicts-of-law
rules, shall govern this Agreement.  The terms and conditions of this Agreement
supercede all previous agreements, proposals or representations related to the
subject matter hereof.

                                       11

[*] 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>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first set forth above.

                              AMERICA ONLINE, INC.

                              By: _____________________________

                              Title:____________________________

                              iBEAM BROADCASTING, INC.

                              By: _____________________________

                              Title: ____________________________

                                       12<PAGE>

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.

                                                                   EXHIBIT 10.12
                           iBEAM Network Membership
                           Agreement  No. 093099 NPoint

This membership agreement (the "Agreement"), effective as of September 30, 1999
                                ---------
(the "Effective Date"), is entered into by NorthPoint Communications, 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 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 dissemination
     ----------------
     on Webcast Distribution.

I.   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 negotiations with iBEAM for services. Subject to
     the foregoing, iBEAM will pay NorthPoint 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.

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

3.1 Ownership: Title to and ownership of the MaxCaster, 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
except as required to display or distribute the Content to viewers of the
Internet or intercept any transmission intended to place Content on the
MaxCaster for the heretofore mentioned reasons without the
<PAGE>

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.

3.4 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.

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

iBEAM owns all right, title and interest in and to any and all revenues
associated with all services transferred through the MaxCaster to Member
Network. iBEAM shall pay Member  (*).  In the event that Member provides iBEAM
with a Referral of   a content provider or other customer for the Service,
Member will receive an additional (*).

4.2 iBEAM will tender to Member a summary of all shared revenues set forth 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 Member's portion of any
revenues shared hereunder.

5.   LIMITATION OF LIABILITY 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 FORCE MAJEURE EVENT.

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  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.

5.3  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.

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 this
Agreement upon sixty (60) days notice prior to the one (1) year anniversary of
the Effective Date. Thereafter, termination may only be effectuated through a
material breach by the other party which is not cured within ten (10) days of
notice by the non-breaching party. Notwithstanding the above, should iBEAM
accept an investment from any of Covad Communications, Rhythms NetConnections or
an Incumbent Local Exchange Carrier, iBEAM will inform Member of such investment
and Member may, at its sole option, within ten (10) days after notice of such
investment by iBEAM, terminate this Agreement immediately without penalty or
liability except with regards to obligations imposed by Article 6.3.

[*] 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>

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.

8.   WAIVER, REMEDIES CUMULATIVE
--------------------------------

8.1 The wavier 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.

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

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.

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.

14.3  iBEAM agrees to submit to Member, on a monthly basis, a list of all
signed Content provider customers, in order that Member and iBEAM  mutually plan
their marketing efforts.

14.4  The Parties will use commercially reasonable efforts to  work to create a
portal page as specified in Exhibit D. Each six (6) month period as measured
from the Effective Date, the Parties will evaluate the progress and commercial
viability of the portal page.

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 which 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. Neither party shall be
required to designate written or oral information as Confidential Information,
provided that any such undesignated information shall only be considered
confidential if a reasonable person under the circumstances would understand it
to be confidential. 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.
<PAGE>

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.

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              NorthPoint Communications, Inc.
By:                                         By:
   ------------------------------------        ---------------------------------

Printed:                                    Printed:
        -------------------------------             ----------------------------

Title:                                      Title:
      ---------------------------------           ------------------------------
<PAGE>

                   Exhibit A to Agreement No. 093099NPoint

                               Statement of Work

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 and NorthPoint'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,
       depending on the availability of such space.

    .  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.

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

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

    .  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.

    .  Subject to prior approval and scheduling by NorthPoint, 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.

    .  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. In cases where NorthPoint has only DC power, iBEAM
       will be responsible for conversion from DC to AC.

    .  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
<PAGE>

                  Exhibit B to Agreement No. 093099NPoint

Milestone Schedule

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)  Within 30 days of the date of this Agreement, the Parties hereby agree
      to have Initiated Installation of one (1) of Member site.

  2)  Within 75 days of the date of this Agreement the Parties hereby agree to
      have Initiated Installation of an additional four (4) Member sites.

  3)  Within 95 days of the date  of this Agreement the Parties hereby agree to
      have Initiated Installation of an additional six (6) Member sites.

  4)  After the first eleven (11) sites have achieved Initiated Installation,
      Member and iBEAM will use reasonable efforts to achieve Complete
      Installation in the remaining operational Member sites within(180) days
      from completion of installation of such 11 sites. As new Member sites
      become operational Member and iBEAM will use reasonable efforts to achieve
      Initiated Installation at each site within sixty (60) days of such site
      achieving Complete Installation.

  5)  Upon Initiated Installation, each site will achieve Complete Installation
      within an additional thirty (30) days, with the exception of any
      unexpected delays outside the control of NorthPoint in securing roof
      rights and the proper building access.

Initiated Installation shall mean that iBEAM has been supplied with a completed
installation check list as specified in Exhibit A, an analog phone connection as
specified in Exhibit A, 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.
<PAGE>

                   Exhibit C to Agreement No.093099 NPoint

                            Revenue-Sharing Schedule

The following schedule will govern the percentage of revenue shared with Member
pursuant to Section 4.1:

 1) Referral for (*) and (*) customers:         (*)% of all revenues from such
customers

 2) Referrals for (*)  and (*) customers:       (*)% of all revenues from such
customers

 3) Referrals in excess of (*) (*) customers:   (*)% of all revenues form such
customers

Once Member has referred at least (*) customers, then Member's revenue-sharing
percentage for all customers referred during the term of this Agreement shall be
(*)%, provided that the total percentage of revenues shared with Member shall
not exceed (*)%. The revenue sharing for each Referral shall have a duration of
(*)months from the date iBEAM begins receiving revenue from such customer.

[*] 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>

                  Exhibit D to Agreement No. 093099NPoint

                               Portal Description

     Hosting:  iBEAM will host the co-branded portal page at no cost to Member.
     The portal will display links to live and on demand streams that are
     available on the iBEAM Network. iBEAM undertakes to use commercially
     reasonable efforts to acquire the license to use Content Provider name and
     Content on the portal page.  The portal will be accessible to all Internet
     users.

     Portal Branding and Creation:  iBEAM and Member will equally divide the
     cost of developing and maintaining the co-branded portal.  iBEAM will
     provide any project management and operational support necessary to roll-
     out and sustain the portal project.  iBEAM and Member will jointly agree on
     the design, content and operation of the portal.  iBEAM will develop a
     proof-of-concept portal at no cost to Member.  iBEAM and Member will
     jointly generate and fund the advertising associated with the portal.  The
     objective of this advertising is to drive demand for Member DSL service and
     iBEAM-delivered streaming media.

     DSL Promotion:  The sub-portal will contain static links to the streaming
     content of iBEAM content providers who have chosen to utilize the portal.
     When a Member user clicks on a link, they will see an interstitial message
     that informs them they are viewing an iBEAM enabled stream that is
     available to them because they are a Broadband user.  If a non-Member user
     clicks on a link, they will receive an interstitial message encouraging
     them to sign up for NorthPoint DSL service to get the high-fidelity version
     of the stream.

     Portal Promotion:  iBEAM will promote the Member sub-portal with all iBEAM
     content partners, as well as with iBEAM technology partners and joint
     iBEAM/Member ISP customers.  Also, iBEAM will include the Member sub-portal
     whenever reasonable in iBEAM end user marketing and promotion efforts.

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