Document:

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                                                                    EXHIBIT 10.6

                         iBEAM BROADCASTING CORPORATION

                           2000 DIRECTOR OPTION PLAN

          1.  Purposes of the Plan.  The purposes of this 2000 Director Option
              --------------------
Plan are to attract and retain the best available personnel for service as
Outside Directors (as defined herein) of the Company, to provide additional
incentive to the Outside Directors of the Company to serve as Directors, and to
encourage their continued service on the Board.

              All options granted hereunder shall be nonstatutory stock options.

          2.  Definitions.  As used herein, the following definitions shall
              -----------
apply:

              (a) "Board" means the Board of Directors of the Company.
                   -----

              (b) "Code" means the Internal Revenue Code of 1986, as amended.
                   ----

              (c) "Common Stock" means the common stock of the Company.
                   ------------

              (d) "Company" means iBEAM Broadcasting Corporation, a Delaware
                   -------
corporation.

              (e) "Director" means a member of the Board.
                   --------

              (f) "Disability" means total and permanent disability as defined
                   ----------
in section 22(e)(3) of the Code.

              (g) "Employee" means any person, including officers and Directors,
                   --------
employed by the Company or any Parent or Subsidiary of the Company.  The payment
of a Director's fee by the Company shall not be sufficient in and of itself to
constitute "employment" by the Company.

              (h) "Exchange Act" means the Securities Exchange Act of 1934, as
                   ------------
amended.

              (i) "Fair Market Value" means, as of any date, the value of Common
                   -----------------
Stock determined as follows:

                   (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system on
the day of determination as reported in The Wall Street Journal or such other
source as the Administrator deems reliable;
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                   (ii)  If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the day of determination, as reported in The Wall
Street Journal or such other source as the Board deems reliable; or

                   (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Board.

              (j)  "Inside Director" means a Director who is an Employee.
                    ---------------

              (k)  "Option" means a stock option granted pursuant to the Plan.
                    ------

              (l)  "Optioned Stock" means the Common Stock subject to an Option.
                    --------------

              (m)  "Optionee" means a Director who holds an Option.
                    --------

              (n)  "Outside Director" means a Director who is not an Employee.
                    ----------------

              (o)  "Parent" means a "parent corporation," whether now or
                    ------
hereafter existing, as defined in Section 424(e) of the Code.

              (p)  "Plan" means this 2000 Director Option Plan.
                    ----

              (q)  "Share" means a share of the Common Stock, as adjusted in
                    -----
accordance with Section 10 of the Plan.

              (r)  "Subsidiary" means a "subsidiary corporation," whether now or
                    ----------
hereafter existing, as defined in Section 424(f) of the Internal Revenue Code of
1986.

          3.  Stock Subject to the Plan.  Subject to the provisions of Section
              -------------------------
10 of the Plan, the maximum aggregate number of Shares which may be optioned and
sold under the Plan is 688,500 Shares, plus an annual increase to be added on
the first day of the Company's fiscal year beginning in 2001, equal to (i) the
Optioned Stock underlying Options granted in the immediately preceding year, or
(ii) a lesser amount determined by the Board (the "Pool").  The Shares may be
authorized, but unissued, or reacquired Common Stock.

          If an Option expires or becomes unexercisable without having been
exercised in full, the unpurchased Shares which were subject thereto shall
become available for future grant or sale under the Plan (unless the Plan has
terminated).  Shares that have actually been issued under the Plan shall not be
returned to the Plan and shall not become available for future distribution
under the Plan.

                                      -2-
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          4.  Administration and Grants of Options under the Plan.
              ---------------------------------------------------

              (a) Procedure for Grants.  All grants of Options to Outside
                  --------------------
Directors under this Plan shall be automatic and nondiscretionary and shall be
made strictly in accordance with the following provisions:

                  (i)   No person shall have any discretion to select which
Outside Directors shall be granted Options or to determine the number of Shares
to be covered by Options.

                  (ii)  Each Outside Director shall be automatically granted an
Option to purchase 82,620 Shares (the "First Option") on the date on which such
person first becomes an Outside Director, whether through election by the
shareholders of the Company or appointment by the Board to fill a vacancy;
provided, however, that an Inside Director who ceases to be an Inside Director
but who remains a Director shall not receive a First Option.

                  (iii) Notwithstanding the provisions of subsections (ii)
hereof, any exercise of an Option granted before the Company has obtained
shareholder approval of the Plan in accordance with Section 16 hereof shall be
conditioned upon obtaining such shareholder approval of the Plan in accordance
with Section 16 hereof.

                  (iv)  The terms of a First Option granted hereunder shall be
as follows:

                        (A) the term of the First Option shall be ten (10)
years.

                        (B) the First Option shall be exercisable only while the
Outside Director remains a Director of the Company, except as set forth in
Sections 8 and 10 hereof.

                        (C) the exercise price per Share shall be 100% of the
Fair Market Value per Share on the date of grant of the First Option.

                        (D) subject to Section 10 hereof, the First Option shall
become exercisable as to 1/48/th/ of the Shares subject to the First Option on
each monthly anniversary of its date of grant, provided that the Optionee
continues to serve as a Director on such dates.

                  (v)   In the event that any Option granted under the Plan
would cause the number of Shares subject to outstanding Options plus the number
of Shares previously purchased under Options to exceed the Pool, then the
remaining Shares available for Option grant shall be granted under Options to
the Outside Directors on a pro rata basis. No further grants shall be made until
such time, if any, as additional Shares become available for grant under the
Plan through action of the Board or the shareholders to increase the number of
Shares which may be issued under the Plan or through cancellation or expiration
of Options previously granted hereunder.

          5.  Eligibility.  Options may be granted only to Outside Directors.
              -----------
All Options shall be automatically granted in accordance with the terms set
forth in Section 4 hereof.

                                      -3-
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              The Plan shall not confer upon any Optionee any right with respect
to continuation of service as a Director or nomination to serve as a Director,
nor shall it interfere in any way with any rights which the Director or the
Company may have to terminate the Director's relationship with the Company at
any time.

          6.  Term of Plan.  The Plan shall become effective upon the earlier to
              ------------
occur of its adoption by the Board or its approval by the shareholders of the
Company as described in Section 16 of the Plan.  It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 11 of the Plan.

          7.  Form of Consideration.  The consideration to be paid for the
              ---------------------
Shares to be issued upon exercise of an Option, including the method of payment,
shall consist of (i) cash, (ii) check, (iii) other shares, provided shares
acquired directly from the Company (x) have been owned by the Optionee for more
than six (6) months on the date of surrender, and (y) have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as
to which said Option shall be exercised, (iv) consideration received by the
Company under a cashless exercise program implemented by the Company in
connection with the Plan, or (v) any combination of the foregoing methods of
payment.

          8.  Exercise of Option.
              ------------------

              (a) Procedure for Exercise; Rights as a Shareholder. Any Option
                  -----------------------------------------------
granted hereunder shall be exercisable at such times as are set forth in Section
4 hereof; provided, however, that no Options shall be exercisable until
shareholder approval of the Plan in accordance with Section 16 hereof has been
obtained.  An Option may not be exercised for a fraction of a Share.

                  An Option shall be deemed to be exercised when written notice
of such exercise has been given to the Company in accordance with the terms of
the Option by the person entitled to exercise the Option and full payment for
the Shares with respect to which the Option is exercised has been received by
the Company. Full payment may consist of any consideration and method of payment
allowable under Section 7 of the Plan. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the stock certificate evidencing such Shares, no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
A share certificate for the number of Shares so acquired shall be issued to the
Optionee as soon as practicable after exercise of the Option. No adjustment
shall be made for a dividend or other right for which the record date is prior
to the date the stock certificate is issued, except as provided in Section 10 of
the Plan.

                  Exercise of an Option in any manner shall result in a decrease
in the number of Shares which thereafter may be available, both for purposes of
the Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

              (b) Termination of Continuous Status as a Director.  Subject to
                  ----------------------------------------------
Section 10 hereof, in the event an Optionee's status as a Director terminates
(other than upon the Optionee's death or

                                      -4-
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Disability), the Optionee may exercise his or her Option, but only within six
(6) months following the date of such termination, and only to the extent that
the Optionee was entitled to exercise it on the date of such termination (but in
no event later than the expiration of its ten (10) year term). To the extent
that the Optionee was not entitled to exercise an Option on the date of such
termination, and to the extent that the Optionee does not exercise such Option
(to the extent otherwise so entitled) within the time specified herein, the
Option shall terminate.

              (c) Disability of Optionee.  In the event Optionee's status as a
                  ----------------------
Director terminates as a result of Disability, the Optionee may exercise his or
her Option, but only within twelve (12) months following the date of such
termination, and only to the extent that the Optionee was entitled to exercise
it on the date of such termination (but in no event later than the expiration of
its ten (10) year term).  To the extent that the Optionee was not entitled to
exercise an Option on the date of termination, or if he or she does not exercise
such Option (to the extent otherwise so entitled) within the time specified
herein, the Option shall terminate.

              (d) Death of Optionee.  In the event of an Optionee's death, the
                  -----------------
Optionee's estate or a person who acquired the right to exercise the Option by
bequest or inheritance may exercise the Option, but only within twelve (12)
months following the date of death, and only to the extent that the Optionee was
entitled to exercise it on the date of death (but in no event later than the
expiration of its ten (10) year term).  To the extent that the Optionee was not
entitled to exercise an Option on the date of death, and to the extent that the
Optionee's estate or a person who acquired the right to exercise such Option
does not exercise such Option (to the extent otherwise so entitled) within the
time specified herein, the Option shall terminate.

          9.  Non-Transferability of Options.  The Option may not be sold,
              ------------------------------
pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Optionee, only by the Optionee.

          10. Adjustments Upon Changes in Capitalization, Dissolution, Merger
              ---------------------------------------------------------------
or Asset Sale.
-------------

              (a) Changes in Capitalization. Subject to any required action by
                  -------------------------
the shareholders of the Company, the number of Shares covered by each
outstanding Option, the number of Shares which have been authorized for issuance
under the Plan but as to which no Options have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option, the
number of shares that may be added annually to the shares reserved under the
Plan (pursuant to Section 3(a)(i)), as well as the price per Share covered by
each such outstanding Option, and the number of Shares issuable pursuant to the
automatic grant provisions of Section 4 hereof shall be proportionately adjusted
for any increase or decrease in the number of issued Shares resulting from a
stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued Shares effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of the
Company shall not be deemed to have been "effected without receipt of
consideration." Except as expressly provided herein, no issuance by the Company
of shares of stock of any class, or
                                      -5-
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securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of Shares subject to an Option.

              (b) Dissolution or Liquidation.  In the event of the proposed
                  --------------------------
dissolution or liquidation of the Company, to the extent that an Option has not
been previously exercised, it shall terminate immediately prior to the
consummation of such proposed action.

              (c) Merger or Asset Sale.  In the event of a merger of the Company
                  --------------------
with or into another corporation or the sale of substantially all of the assets
of the Company, outstanding Options may be assumed or equivalent options may be
substituted by the successor corporation or a Parent or Subsidiary thereof (the
"Successor Corporation").  If an Option is assumed or substituted for, the
Option or equivalent option shall continue to be exercisable as provided in
Section 4 hereof for so long as the Optionee serves as a Director or a director
of the Successor Corporation.  Following such assumption or substitution, if the
Optionee's status as a Director or director of the Successor Corporation, as
applicable, is terminated other than upon a voluntary resignation by the
Optionee, the Option or option shall become fully exercisable, including as to
Shares for which it would not otherwise be exercisable.  Thereafter, the Option
or option shall remain exercisable in accordance with Sections 8(b) through (d)
above.

          If the Successor Corporation does not assume an outstanding Option or
substitute for it an equivalent option, the Option shall become fully vested and
exercisable, including as to Shares for which it would not otherwise be
exercisable.  In such event the Board shall notify the Optionee that the Option
shall be fully exercisable for a period of one hundred-eighty (180) days from
the date of such notice, and upon the expiration of such period the Option shall
terminate.

          For the purposes of this Section 10(c), an Option shall be considered
assumed if, following the merger or sale of assets, the Option confers the right
to purchase or receive, for each Share of Optioned Stock subject to the Option
immediately prior to the merger or sale of assets, the consideration (whether
stock, cash, or other securities or property) received in the merger or sale of
assets by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares).
If such consideration received in the merger or sale of assets is not solely
common stock of the successor corporation or its Parent, the Administrator may,
with the consent of the successor corporation, provide for the consideration to
be received upon the exercise of the Option, for each Share of Optioned Stock
subject to the Option, to be solely common stock of the successor corporation or
its Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the merger or sale of assets.

          11.  Amendment and Termination of the Plan.
               -------------------------------------

               (a) Amendment and Termination.  The Board may at any time amend,
                   -------------------------
alter, suspend, or discontinue the Plan, but no amendment, alteration,
suspension, or discontinuation shall be made which would impair the rights of
any Optionee under any grant theretofore made, without his or her consent.  In
addition, to the extent necessary and desirable to comply with any applicable

                                      -6-
<PAGE>

law, regulation or stock exchange rule, the Company shall obtain shareholder
approval of any Plan amendment in such a manner and to such a degree as
required.

               (b) Effect of Amendment or Termination.  Any such amendment or
                   ----------------------------------
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated.

          12.  Time of Granting Options.  The date of grant of an Option shall,
               ------------------------
for all purposes, be the date determined in accordance with Section 4 hereof.

          13.  Conditions Upon Issuance of Shares.  Shares shall not be issued
               ----------------------------------
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

               As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the time
of any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares, if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

               Inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company's counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been obtained.

          14.  Reservation of Shares.  The Company, during the term of this
               ---------------------
Plan, will at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan.

          15.  Option Agreement.  Options shall be evidenced by written option
               ----------------
agreements in such form as the Board shall approve.

          16.  Shareholder Approval.  The Plan shall be subject to approval by
               --------------------
the shareholders of the Company within twelve (12) months after the date the
Plan is adopted.  Such shareholder approval shall be obtained in the degree and
manner required under applicable state and federal law and any stock exchange
rules.

                                      -7-<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>
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<S>                                          <C>
iBEAM Web Site:                              www.ibeam.com and any successors and additional and/or
                                             new versions of a web site owned or controlled by iBEAM
                                             during the Term.
-----------------------------------------------------------------------------------------------------
Term:                                        Beginning as of the Effective Date and continuing
                                             through September 30, 2002 unless earlier terminated in
                                             accordance with Section 9.
-----------------------------------------------------------------------------------------------------
</TABLE>

1.    Definitions

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

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

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

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

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

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

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

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

                   Microsoft Confidential & Proprietary                   Page 2
<PAGE>

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

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

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

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

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

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

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

2.     Microsoft Obligations

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

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

                   Microsoft Confidential & Proprietary                   Page 3
<PAGE>

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

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

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

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

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

<PAGE>

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

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

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

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

3      iBEAM Obligations

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

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

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

                   Microsoft Confidential & Proprietary                   Page 5

<PAGE>

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

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

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

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

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

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

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

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

                   Microsoft Confidential & Proprietary                   Page 6
<PAGE>

       [*].

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

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

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

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

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

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

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

                   Microsoft Confidential & Proprietary                   Page 7
<PAGE>

     their reasonable discretion mutually designate to participate in such
     manner in the Broadband Streaming Initiative. Such fixed rate pricing shall
     be established at or below a rate that is the lesser of (a) seventy five
     percent (75%) of iBEAM's then-applicable list prices and (b) the lowest
     price then being provided by iBEAM to customers purchasing such iBEAM
     Services in aggregate volumes comparable to those being purchased by
     applicable radio networks or stations. iBEAM shall provide such fixed rate
     pricing for the first year that each designated radio network or station
     participates in this program, provided that such customers enter agreements
     with terms equal to or greater than eighteen (18) months 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
     -------------

     In applying Network Credits under this Agreement for Microsoft's internal
use or provision to Broadband Streaming Initiative ICP Participants, iBEAM will
calculate use of Network Credits on the basis of the lower of (a) a discount of
twenty percent (20%) from iBEAM's then-current list rates for iBEAM Services;
and (b) any more favorable rate charged by iBEAM from time to time to any other
customer which is purchasing iBEAM Services in aggregate volumes that are
comparable to those being purchased by Microsoft in connection with this
Agreement. 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.

              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

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