Document:

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                                                                     EXHIBIT 4.2

                        iBEAM BROADCASTING CORPORATION

                             AMENDED AND RESTATED

                          INVESTORS' RIGHTS AGREEMENT

                               October 14, 1999
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                               TABLE OF CONTENTS

<TABLE>
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                                                                Page
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<S>                                                             <C>
1.   Registration Rights........................................   1

     1.1   Definitions..........................................   1
     1.2   Request for Registration.............................   2
     1.3   Company Registration.................................   4
     1.4   Form S-3 Registration................................   5
     1.5   Obligations of the Company...........................   6
     1.6   Information from Holder..............................   7
     1.7   Expenses of Registration.............................   7
     1.8   Delay of Registration................................   8
     1.9   Indemnification......................................   8
     1.10  Reports Under Securities Exchange Act of 1934........  10
     1.11  Assignment of Registration Rights....................  10
     1.12  Limitations on Subsequent Registration Rights........  11
     1.13  "Market Stand-Off" Agreement.........................  11
     1.14  Termination of Registration Rights...................  11

2.   Covenants of the Company...................................  12

     2.1   Delivery of Financial Statements.....................  12
     2.2   Inspection...........................................  12
     2.3   Termination of Information and Inspection Covenants..  12
     2.4   Right of First Offer.................................  13
     2.5   Termination of Right of First Offer..................  14
     2.6   MTV Observer Rights..................................  15
     2.7   Intel Observer Rights................................  15
     2.8   Microsoft Observer Rights............................  16
     2.9   Stand-Still..........................................  17
     2.10  Restrictions on Transfer.............................  17

3.   Confidentiality............................................  18

     3.1   Confidentiality......................................  18
     3.2   Amendment............................................  19

4.   Miscellaneous..............................................  19

     4.1   Successors and Assigns...............................  19
     4.2   Governing Law........................................  19
     4.3   Counterparts.........................................  19
     4.4   Titles and Subtitles.................................  20
     4.5   Notices..............................................  20
     4.6   Expenses.............................................  20
     4.7   Entire Agreement: Amendments and Waivers.............  20
     4.8   Severability.........................................  20
     4.9   Aggregation of Stock.................................  20
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               AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT

     THIS AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT is made as of the
14/th/ day of October, 1999, by and among iBEAM BROADCASTING CORPORATION, a
Delaware corporation (the "Company"), and the investors listed on Schedule A
hereto (each of which is herein referred to as an "Investor").

                                   RECITALS

     WHEREAS, certain of the Investors (the "Existing Investors") hold shares of
the Company's Series A Preferred Stock, Series B Preferred Stock, or Series C
Preferred Stock and/or shares of Common Stock issued upon conversion thereof
(the "Series A Preferred Stock," the "Series B Preferred Stock," and the "Series
C Preferred Stock," respectively) and possess registration rights, information
rights, rights of first offer, and other rights pursuant to an Amended and
Restated Investors' Rights Agreement dated as of February 3, 1999, among the
Company, and such Existing Investors (the "Prior Agreement"); and

     WHEREAS, the Existing Investors are holders of at least a majority of the
"Registrable Securities" of the Company (as defined in the Prior Agreement), and
desire to amend, restate and supersede the Prior Agreement in its entirety; and

     WHEREAS, certain Investors are parties to the Series D Preferred Stock
Purchase Agreement of even date herewith among the Company and certain of the
Investors (the "Series D Agreement"), which provides that as a condition to the
closing of the sale of the Series D Preferred Stock, this Agreement must be
executed and delivered by such Investors and Existing Investors holding at least
a majority of the "Registrable Securities" of the Company (as defined in the
Prior Agreement) and the Company.

     NOW, THEREFORE, in consideration of the mutual promises and covenants set
forth herein, the Existing Investors hereby agree that the Prior Agreement shall
be amended, restated and superseded in its entirety by this Agreement, and the
parties hereto further agree as follows:

          1.   Registration Rights.  The Company covenants and agrees as
               -------------------
follows:

               1.1  Definitions.  For purposes of this Section 1:
                    -----------

                    (a)  The term "Act" means the Securities Act of 1933, as
amended.

                    (b)  The term "Form S-3" means such form under the Act as in
effect on the date hereof or any registration form under the Act subsequently
adopted by the SEC that permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company with the SEC.
<PAGE>

                    (c)  The term "Holder" means any person owning or having the
right to acquire Registrable Securities or any assignee thereof in accordance
with Section 1.11 hereof.

                    (d)  The term "Initial Offering" means the Company's first
firm commitment underwritten public offering of its Common Stock under the Act.

                    (e)  The term "1934 Act" means the Securities Exchange Act
of 1934, as amended.

                    (f)  The term "register," "registered," and "registration"
refer to a registration effected by preparing and filing a registration
statement or similar document in compliance with the Act, and the declaration or
ordering of effectiveness of such registration statement or document.

                    (g)  The term "Registrable Securities" means (i) the Common
Stock issuable or issued upon conversion of the Series A Preferred Stock, (ii)
the Common Stock issuable or issued upon conversion of the Series B Preferred
Stock, (iii) the Common Stock issuable or issued upon conversion of the Series C
Preferred Stock and (iv) the Common Stock issuable or issued upon conversion of
the Series D Preferred Stock and (v) any Common Stock of the Company issued as
(or issuable upon the conversion or exercise of any warrant, right or other
security that is issued as) a dividend or other distribution with respect to, or
in exchange for, or in replacement of, the shares referenced in (i) through (iv)
above, excluding in all cases, however, any Registrable Securities sold by a
person in a transaction in which his rights under this Section 1 are not
assigned.

                    (h)  The number of shares of Registrable Securities
outstanding shall be determined by the number of shares of Common Stock
outstanding that are, and the number of shares of Common Stock issuable pursuant
to then exercisable or convertible securities that are, Registrable Securities.

                    (i)  The term "SEC" shall mean the Securities and Exchange
Commission.

               1.2  Request for Registration.
                    ------------------------

                    (a)  Subject to the conditions of this Section 1.2, if the
Company shall receive at any time after the earlier of (i) February 2, 2003 or
(ii) six (6) months after the effective date of the Initial Offering, a written
request from the Holders of thirty percent (30%) or more of the Registrable
Securities then outstanding (the "Initiating Holders") that the Company file a
registration statement under the Act covering the registration of Registrable
Securities with an anticipated aggregate offering price of at least $10,000,000,
then the Company shall, within twenty (20) days of the receipt thereof, give
written notice of such request to all Holders, and subject to the limitations of
this Section 1.2, use all reasonable efforts to effect, as soon as practicable,
the registration under the Act of all Registrable Securities that the Holders
request to be registered in a

                                      -2-
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written request received by the Company within twenty (20) days of the mailing
of the Company's notice pursuant to this Section 1.2(a).

                    (b)  If the Initiating Holders intend to distribute the
Registrable Securities covered by their request by means of an underwriting,
they shall so advise the Company as a part of their request made pursuant to
this Section 1.2 and the Company shall include such information in the written
notice referred to in Section 1.2(a). In such event the right of any Holder to
include its Registrable Securities in such registration shall be conditioned
upon such Holder's participation in such underwriting and the inclusion of such
Holder's Registrable Securities in the underwriting (unless otherwise mutually
agreed by a majority in interest of the Initiating Holders and such Holder) to
the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such
underwriting by the Company (which underwriter or underwriters shall be
reasonably acceptable to a majority in interest of the Initiating Holders).
Notwithstanding any other provision of this Section 1.2, if the underwriter
advises the Company that marketing factors require a limitation of the number of
securities underwritten (including Registrable Securities), then the Company
shall so advise all Holders of Registrable Securities that would otherwise be
underwritten pursuant hereto, and the number of shares that may be included in
the underwriting shall be allocated to the Holders of such Registrable
Securities on a pro rata basis based on the number of Registrable Securities
held by all such Holders (including the Initiating Holders). Any Registrable
Securities excluded or withdrawn from such underwriting shall be withdrawn from
the registration.

                    (c)  The Company shall not be required to effect a
registration pursuant to this Section 1.2:

                         (i)   in any particular jurisdiction in which the
Company would be required to execute a general consent to service of process in
effecting such registration, unless the Company is already subject to service in
such jurisdiction and except as may be required under the Act; or

                         (ii)  after the Company has effected two (2)
registrations pursuant to this Section 1.2, and such registrations have been
declared or ordered effective; or

                         (iii) during the period starting with the date sixty
(60) days prior to the Company's good faith estimate of the date of the filing
of, and ending on a date one hundred eighty (180) days following the effective
date of, a Company-initiated registration subject to Section 1.3 below, provided
that the Company is actively employing in good faith all reasonable efforts to
cause such registration statement to become effective; or

                         (iv)  if the Initiating Holders propose to dispose of
Registrable Securities that may be registered on Form S-3 pursuant to Section
1.4 hereof; or

                         (v)   if the Company shall furnish to Holders
requesting a registration statement pursuant to this Section 1.2, a certificate
signed by the Company's Chief

                                      -3-
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Executive Officer or Chairman of the Board stating that in the good faith
judgment of the Board of Directors of the Company, it would be seriously
detrimental to the Company and its stockholders for such registration statement
to be effected at such time, in which event the Company shall have the right to
defer such filing for a period of not more than one hundred twenty (120) days
after receipt of the request of the Initiating Holders, provided that such right
to delay a request shall be exercised by the Company not more than once in any
twelve (12)-month period.

               1.3  Company Registration.
                    --------------------

                    (a)  If (but without any obligation to do so) the Company
proposes to register (including for this purpose a registration effected by the
Company for stockholders other than the Holders) any of its stock or other
securities under the Act in connection with the public offering of such
securities (other than a registration relating solely to the sale of securities
to participants in a Company stock plan, a registration relating to a corporate
reorganization or other transaction under Rule 145 of the Act, a registration on
any form that does not include substantially the same information as would be
required to be included in a registration statement covering the sale of the
Registrable Securities, a registration in which the only Common Stock being
registered is Common Stock issuable upon conversion of debt securities that are
also being registered, a registration in which the only Common Stock being
registered is Common Stock issuable pursuant to warrants issued in connection
with the issuance of debt securities, or a registration relating solely to
securities not convertible into Common Stock), the Company shall, at such time,
promptly give each Holder written notice of such registration. Upon the written
request of each Holder given within twenty (20) days (or within ten (10) days if
the notice is given after the Company has completed its Initial Offering) after
mailing of such notice by the Company in accordance with Section 4.5, the
Company shall, subject to the provisions of Section 1.3(c), use all reasonable
efforts to cause to be registered under the Act all of the Registrable
Securities that each such Holder has requested to be registered.

                    (b)  Right to Terminate Registration.  The Company shall
                         -------------------------------
have the right to terminate or withdraw any registration initiated by it under
this Section 1.3 prior to the effectiveness of such registration whether or not
any Holder has elected to include securities in such registration. The expenses
of such withdrawn registration shall be borne by the Company in accordance with
Section 1.7 hereof.

                    (c)  Underwriting Requirements.  In connection with any
                         -------------------------
offering involving an underwriting of shares of the Company's capital stock, the
Company shall not be required under this Section 1.3 to include any of the
Holders' securities in such underwriting unless they accept the terms of the
underwriting as agreed upon between the Company and the underwriters selected by
it (or by other persons entitled to select the underwriters) and enter into an
underwriting agreement in customary form with an underwriter or underwriters
selected by the Company, and then only in such quantity as the underwriters
determine in their sole discretion will not jeopardize the success of the
offering by the Company. If the total amount of securities, including
Registrable Securities, requested by stockholders to be included in such
offering exceeds the amount of securities sold other than by the Company that
the underwriters determine in their sole discretion is

                                      -4-
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compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including
Registrable Securities, that the underwriters determine in their sole discretion
will not jeopardize the success of the offering (the securities so included to
be apportioned pro rata among the selling Holders according to the total amount
of securities entitled to be included therein owned by each selling Holder or in
such other proportions as shall mutually be agreed to by such selling Holders),
but in no event shall (i) the amount of securities of the selling Holders
included in the offering be reduced below twenty percent (20%) of the total
amount of securities included in such offering, unless such offering is the
initial public offering of the Company's securities, in which case the selling
Holders may be excluded if the underwriters make the determination described
above and no other stockholder's securities are included, or (ii)
notwithstanding (i) above, any shares being sold by a stockholder exercising a
demand registration right similar to that granted in Section 1.2 be excluded
from such offering. For purposes of the preceding parenthetical concerning
apportionment, for any selling stockholder that is a Holder of Registrable
Securities and that is a partnership or corporation, the partners, retired
partners and stockholders of such Holder, or the estates and family members of
any such partners and retired partners and any trusts for the benefit of any of
the foregoing persons shall be deemed to be a single "selling Holder," and any
pro rata reduction with respect to such "selling Holder" shall be based upon the
aggregate amount of Registrable Securities owned by all such related entities
and individuals.

               1.4  Form S-3 Registration.  In case the Company shall receive
                    ---------------------
from the Holders a written request or requests that the Company effect a
registration on Form S-3 and any related qualification or compliance with
respect to all or a part of the Registrable Securities owned by such Holder or
Holders, the Company shall:

                    (a)  promptly give written notice of the proposed
registration, and any related qualification or compliance, to all other Holders;
and

                    (b)  use all reasonable efforts to effect, as soon as
practicable, such registration and all such qualifications and compliances as
may be so requested and as would permit or facilitate the sale and distribution
of all or such portion of such Holders' Registrable Securities as are specified
in such request, together with all or such portion of the Registrable Securities
of any other Holders joining in such request as are specified in a written
request given within fifteen (15) days after receipt of such written notice from
the Company, provided, however, that the Company shall not be obligated to
effect any such registration, qualification or compliance, pursuant to this
section 1.4:

                         (i)  if Form S-3 is not available for such offering by
the Holders;

                         (ii) if the Holders, together with the holders of any
other securities of the Company entitled to inclusion in such registration,
propose to sell Registrable Securities and such other securities (if any) at an
aggregate price to the public (net of any underwriters' discounts or
commissions) of less than $1,000,000;

                                      -5-
<PAGE>

                         (iii) if the Company shall furnish to the Holders a
certificate signed by the Chief Executive Officer or Chairman of the Board of
the Company stating that in the good faith judgment of the Board of Directors of
the Company, it would be seriously detrimental to the Company and its
stockholders for such Form S-3 Registration to be effected at such time, in
which event the Company shall have the right to defer the filing of the Form S-3
registration statement for a period of not more than one hundred twenty (120)
days after receipt of the request of the Holder or Holders under this Section
1.4; provided, however, that the Company shall not utilize this right more than
once in any twelve month period;

                         (iv)  if the Company has, within the twelve (12) month
period preceding the date of such request, already effected one registration on
Form S-3 for the Holders pursuant to this Section 1.4; or

                         (v)   in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a general
consent to service of process in effecting such registration, qualification or
compliance.

                    (c)  Subject to the foregoing, the Company shall file a
registration statement covering the Registrable Securities and other securities
so requested to be registered as soon as practicable after receipt of the
request or requests of the Holders. Registrations effected pursuant to this
Section 1.4 shall not be counted as requests for registration effected pursuant
to Sections 1.2.

               1.5  Obligations of the Company.  Whenever required under this
                    --------------------------
Section 1 to effect the registration of any Registrable Securities, the Company
shall, as expeditiously as reasonably possible:

                    (a)  prepare and file with the SEC a registration statement
with respect to such Registrable Securities and use all reasonable efforts to
cause such registration statement to become effective, and, upon the request of
the Holders of a majority of the Registrable Securities registered thereunder,
keep such registration statement effective for a period of up to one hundred
twenty (120) days or, if earlier, until the distribution contemplated in the
Registration Statement has been completed;

                    (b)  prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Act with respect to the disposition of all securities covered
by such registration statement;

                    (c)  furnish to the Holders such numbers of copies of a
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Act, and such other documents as they may reasonably request
in order to facilitate the disposition of Registrable Securities owned by them;

                                      -6-
<PAGE>

                    (d)  use all reasonable efforts to register and qualify the
securities covered by such registration statement under such other securities or
Blue Sky laws of such jurisdictions as shall be reasonably requested by the
Holders, provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent
to service of process in any such states or jurisdictions;

                    (e)  in the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering;

                    (f)  notify each Holder of Registrable Securities covered by
such registration statement at any time when a prospectus relating thereto is
required to be delivered under the Act or the happening of any event as a result
of which the prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing;

                    (g)  cause all such Registrable Securities registered
pursuant hereunder to be listed on each securities exchange on which similar
securities issued by the Company are then listed; and

                    (h)  provide a transfer agent and registrar for all
Registrable Securities registered pursuant hereunder and a CUSIP number for all
such Registrable Securities, in each case not later than the effective date of
such registration.

               1.6  Information from Holder.  It shall be a condition precedent
                    -----------------------
to the obligations of the Company to take any action pursuant to this Section 1
with respect to the Registrable Securities of any selling Holder that such
Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such Holder's
Registrable Securities.

               1.7  Expenses of Registration.  All expenses other than
                    ------------------------
underwriting discounts and commissions incurred in connection with
registrations, filings or qualifications pursuant to Sections 1.2, 1.3 and 1.4,
including (without limitation) all registration, filing and qualification fees,
printers' and accounting fees, fees and disbursements of counsel for the Company
and for one special counsel for the Holders (which shall not exceed $20,000)
shall be borne by the Company. Notwithstanding the foregoing, the Company shall
not be required to pay for any expenses of any registration proceeding begun
pursuant to Section 1.2 if the registration request is subsequently withdrawn at
the request of the Holders of a majority of the Registrable Securities to be
registered (in which case all participating Holders shall bear such expenses pro
rata based upon the number of Registrable Securities that were to be requested
in the withdrawn registration). Unless otherwise stated, all selling expenses
incurred in connection with a registration relating to securities registered on
behalf of the Holders shall be borne pro rata by the Holder or Holders based on
the number of shares so registered.

                                      -7-
<PAGE>

               1.8  Delay of Registration.  No Holder shall have any right to
                    ---------------------
obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 1.

               1.9  Indemnification.  In the event any Registrable Securities
                    ---------------
are included in a registration statement under this Section 1:

                    (a)  To the extent permitted by law, the Company will
indemnify and hold harmless each Holder, the partners or officers, directors and
stockholders of each Holder, legal counsel and accountants for each Holder, any
underwriter (as defined in the Act) for such Holder and each person, if any, who
controls such Holder or underwriter within the meaning of the Act or the 1934
Act, against any losses, claims, damages or liabilities (joint or several) to
which they may become subject under the Act, the 1934 Act or any state
securities laws, insofar as such losses, claims, damages, or liabilities (or
actions in respect thereof) arise out of or are based upon any of the following
statements, omissions or violations (collectively a "Violation"): (i) any untrue
statement or alleged untrue statement of a material fact contained in such
registration statement, including any preliminary prospectus or final prospectus
contained therein or any amendments or supplements thereto, (ii) the omission or
alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (iii) any
violation or alleged violation by the Company of the Act, the 1934 Act, any
state securities laws or any rule or regulation promulgated under the Act, the
1934 Act or any state securities laws; and the Company will reimburse each such
Holder, underwriter or controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that the
indemnity agreement contained in this subsection 1.9(a) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the consent of the Company (which consent
shall not be unreasonably withheld), nor shall the Company be liable in any such
case for any such loss, claim, damage, liability or action to the extent that it
arises out of or is based upon a Violation that occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by any such Holder, underwriter or controlling person;
provided further, however, that the foregoing indemnity agreement with respect
to any preliminary prospectus shall not inure to the benefit of any Holder or
underwriter, or any person controlling such Holder or underwriter, from whom the
person asserting any such losses, claims, damages or liabilities purchased
shares in the offering, if a copy of the prospectus (as then amended or
supplemented if the Company shall have furnished any amendments or supplements
thereto) was not sent or given by or on behalf of such Holder or underwriter to
such person, if required by law so to have been delivered, at or prior to the
written confirmation of the sale of the shares to such person, and if the
prospectus (as so amended or supplemented) would have cured the defect giving
rise to such loss, claim, damage or liability; provided that the failure of such
Holder to deliver any such prospectus or supplement is not a result of the
Company to meet its obligations under Section 1.5 hereof.

                    (b)  To the extent permitted by law, each selling Holder
will indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who
controls the Company within the meaning of the

                                      -8-
<PAGE>

Act, legal counsel and accountants for the Company, any underwriter, any other
Holder selling securities in such registration statement and any controlling
person of any such underwriter or other Holder, against any losses, claims,
damages or liabilities (joint or several) to which any of the foregoing persons
may become subject, under the Act, the 1934 Act or any state securities laws,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereto) arise out of or are based upon any Violation, in each case to the
extent (and only to the extent) that such Violation occurs in reliance upon and
in conformity with written information furnished by such Holder expressly for
use in connection with such registration; and each such Holder will reimburse
any person intended to be indemnified pursuant to this subsection 1.9(b), for
any legal or other expenses reasonably incurred by such person in connection
with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the indemnity agreement contained in this
subsection 1.9(b) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Holder (which consent shall not be unreasonably withheld),
provided that in no event shall any indemnity under this subsection 1.9(b)
exceed the gross proceeds from the offering received by such Holder.

                    (c)  Promptly after receipt by an indemnified party under
this Section 1.9 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 1.9, deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties that may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
1.9, but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 1.9.

                    (d)  If the indemnification provided for in this Section 1.9
is held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any loss, liability, claim, damage or expense referred to
herein, then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage or expense
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions that resulted in such loss,
liability, claim, damage or expense, as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or

                                      -9-
<PAGE>

the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission.

                    (e)  Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are
in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

                    (f)  The obligations of the Company and Holders under this
Section 1.9 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Section 1, and otherwise.

               1.10 Reports Under Securities Exchange Act of 1934. With a view
                    ---------------------------------------------
to making available to the Holders the benefits of Rule 144 promulgated under
the Act and any other rule or regulation of the SEC that may at any time permit
a Holder to sell securities of the Company to the public without registration or
pursuant to a registration on Form S-3, the Company agrees to:

                    (a)  make and keep public information available, as those
terms are understood and defined in SEC Rule 144, at all times after ninety (90)
days after the effective date of the Initial Offering;

                    (b)  file with the SEC in a timely manner all reports and
other documents required of the Company under the Act and the 1934 Act; and

                    (c)  furnish to any Holder, so long as the Holder owns any
Registrable Securities, forthwith upon request (i) a written statement by the
Company that it has complied with the reporting requirements of SEC Rule 144 (at
any time after ninety (90) days after the effective date of the first
registration statement filed by the Company), the Act and the 1934 Act (at any
time after it has become subject to such reporting requirements), or that it
qualifies as a registrant whose securities may be resold pursuant to Form S-3
(at any time after it so qualifies), (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested in
availing any Holder of any rule or regulation of the SEC that permits the
selling of any such securities without registration or pursuant to such form.

               1.11 Assignment of Registration Rights. The rights to cause the
                    ---------------------------------
Company to register Registrable Securities pursuant to this Section 1 may be
assigned (but only with all related obligations) by a Holder to a transferee or
assignee of such securities that (i) is a subsidiary, parent, affiliate (as such
term is defined in Rule 405 promulgated under the Act) partner, limited partner,
retired partner or stockholder (collectively, "Related Person") of a Holder,
(ii) is a Holder's family member or trust for the benefit of an individual
Holder, or (iii) after such assignment or transfer, holds at least 100,000
shares of Registrable Securities (subject to appropriate adjustment for stock
splits, stock dividends, combinations and other recapitalizations), provided:
(a) the Company is, within a reasonable time after such transfer, furnished with
written notice of the name and address of

                                      -10-
<PAGE>

such transferee or assignee and the securities with respect to which such
registration rights are being assigned; (b) such transferee or assignee agrees
in writing to be bound by and subject to the terms and conditions of this
Agreement, including without limitation the provisions of Section 1.13 below;
and (c) such assignment shall be effective only if immediately following such
transfer the further disposition of such securities by the transferee or
assignee is restricted under the Act.

               1.12 Limitations on Subsequent Registration Rights. From and
                    ---------------------------------------------
after the date of this Agreement, the Company shall not, without the prior
written consent of the Holders of a majority of the Registrable Securities,
enter into any agreement with any holder or prospective holder of any securities
of the Company that would allow such holder or prospective holder (a) to include
such securities in any registration filed under Section 1.3 hereof, unless under
the terms of such agreement, such holder or prospective holder may include such
securities in any such registration only to the extent that the inclusion of
such securities will not reduce the amount of the Registrable Securities of the
Holders that are included or (b) to demand registration of their securities.

               1.13 "Market Stand-Off" Agreement. Each Holder hereby agrees that
                     ---------------------------
it will not, without the prior written consent of the managing underwriter,
during the period commencing on the date of the final prospectus relating to the
Company's initial public offering and ending on the date specified by the
Company and the managing underwriter (such period not to exceed one hundred
eighty (180) days) (i) lend, offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, or otherwise transfer or dispose of,
directly or indirectly, any shares of Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock (whether such shares or any
such securities are then owned by the Holder or are thereafter acquired), or
(ii) enter into any swap or other arrangement that transfers to another, in
whole or in part, any of the economic consequences of ownership of the Common
Stock, whether any such transaction described in clause (i) or (ii) above is to
be settled by delivery of Common Stock or such other securities, in cash or
otherwise. The underwriters in connection with the Company's initial public
offering are intended third party beneficiaries of this Section 1.13 and shall
have the right, power and authority to enforce the provisions hereof as though
they were a party hereto.

          In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the Registrable Securities of each
Holder (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such period. However, nothing in this
Section 1.13 shall affect, impair or diminish any Holder's right to sell,
transfer or assign any or all of its shares of Registrable Securities to a
Related Person pursuant to the terms set forth in Section 1.11 hereof.

               1.14 Termination of Registration Rights. No Holder shall be
                    ----------------------------------
entitled to exercise any right provided for in this Section 1 after five (5)
years following the consummation of the Initial Offering or, as to any Holder,
such earlier time beginning after expiration of the "Market Standoff" set forth
in Section 1.13 at which all Registrable Securities held by such Holder (and any

                                      -11-
<PAGE>

affiliate of the Holder with whom such Holder must aggregate its sales under
Rule 144) can be sold in any three (3)-month period without registration in
compliance with Rule 144 of the Act.

          2.   Covenants of the Company.
               ------------------------

               2.1  Delivery of Financial Statements. The Company shall deliver
                    --------------------------------
to each Investor holding shares of the Company:

                    (a)  as soon as practicable, but in any event within ninety
(90) days after the end of each fiscal year of the Company, an income statement
for such fiscal year, a balance sheet of the Company and statement of
stockholder's equity as of the end of such year, and a statement of cash flows
for such year, such year-end financial reports to be in reasonable detail,
prepared in accordance with generally accepted accounting principles ("GAAP"),
and audited and certified by independent public accountants of nationally
recognized standing selected by the Company;

                    (b)  as soon as practicable after the end of each quarter,
and in any event within forty-five (45) days after each quarterly accounting
period, an unaudited quarterly report including a balance sheet, income
statement and cash flow analysis (prepared in accordance with GAAP other than
for accompanying notes and subject to changes resulting from year-end audit
adjustments);

                    (c)  as soon as practicable, but in any event at least
thirty (30) days prior to the end of each fiscal year, a budget and business
plan for the next fiscal year, prepared on a monthly basis, including balance
sheets, income statements and statements of cash flows for such months and, as
soon as prepared, any other budgets or revised budgets prepared by the Company;
and

                    (d)  such other information relating to the financial
condition, business, prospects or corporate affairs of the Company as the
Investor or any assignee of the Investor may from time to time request,
provided, however, that the Company shall not be obligated under this subsection
(d) or any other subsection of Section 2.1 to provide information that it deems
in good faith to be a trade secret or similar confidential information.

               2.2  Inspection. The Company shall permit each Investor that
                    ----------
holds at least 600,000 shares of Registrable Securities, at such Investor's
expense, to visit and inspect the Company's properties, to examine its books of
account and records and to discuss the Company's affairs, finances and accounts
with its officers, all at such reasonable times as may be requested by the
Investor; provided, however, that the Company shall not be obligated pursuant to
this Section 2.2 to provide access to any information that it reasonably
considers to be a trade secret or similar confidential information.

               2.3  Termination of Information and Inspection Covenants. The
                    ---------------------------------------------------
covenants set forth in Sections 2.1 and 2.2 shall terminate as to Investors and
be of no further force or effect when the sale of securities pursuant to a
registration statement filed by the Company under the Act

                                      -12-
<PAGE>

in connection with the firm commitment underwritten offering of its securities
to the general public is consummated or when the Company first becomes subject
to the periodic reporting requirements of Sections 12(g) or 15(d) of the 1934
Act, whichever event shall first occur.

               2.4  Right of First Offer. Subject to the terms and conditions
                    --------------------
specified in this paragraph 2.4 and in paragraph 2.9, the Company hereby grants
to each Major Investor (as hereinafter defined) a right of first offer with
respect to future sales by the Company of its Shares (as hereinafter defined).
For purposes of this Section 2.4, a Major Investor shall mean any Investor or
transferee that holds at least 300,000 shares of Registrable Securities. For
purposes of this Section 2.4, Investor includes any general partners and
affiliates of an Investor. An Investor shall be entitled to apportion the right
of first offer hereby granted it among itself and its partners and affiliates in
such proportions as it deems appropriate.

          Except as provided in subparagraph (d), each time the Company proposes
to offer any shares of, or securities convertible into or exchangeable or
exercisable for any shares of, any class of its capital stock ("Shares"), the
Company shall first make an offering of such Shares to each Major Investor in
accordance with the following provisions.

                    (a)  The Company shall deliver a notice in accordance with
Section 4.5 ("Notice") to the Major Investors stating (i) its bona fide
intention to offer such Shares, (ii) the number of such Shares to be offered,
and (iii) the price and terms upon which it proposes to offer such Shares.

                    (b)  By written notification received by the Company, within
twenty (20) calendar days after receipt of the Notice, the Major Investor may
elect to purchase or obtain, at the price and on the terms specified in the
Notice, up to that portion of such Shares that equals the proportion that the
number of shares of Registrable Securities then held by such Major Investor
bears to the total number of shares of Common Stock of the Company then
outstanding (assuming full conversion of all convertible securities). The
Company shall promptly, in writing, inform each Major Investor that elects to
purchase all the shares available to it (a "Fully-Exercising Investor") of any
other Major Investor's failure to do likewise. During the ten (10) day period
commencing after such information is given, each Fully-Exercising Investor may
elect to purchase that portion of the Shares for which Major Investors were
entitled to subscribe but which were not subscribed for by the Major Investors
that is equal to the proportion that the number of shares of Registrable
Securities then held by such Fully-Exercising Investor bears to the total number
of shares of Registrable Securities then held by all Fully-Exercising Investors
who wish to purchase some of the unsubscribed shares.

                    (c)  If all Shares that Investors are entitled to obtain
pursuant to subsection 2.4(b) are not elected to be obtained as provided in
subsection 2.4(b) hereof, the Company may, during the ninety (90) day period
following the expiration of the period provided in subsection 2.4(b) hereof,
offer the remaining unsubscribed portion of such Shares to any person or persons
at a price not less than, and upon terms no more favorable to the offeree than,
those specified in the Notice. If the Company does not enter into an agreement
for the sale of the Shares within such period, or if such agreement is not
consummated within ninety (90) days of the execution

                                      -13-
<PAGE>

thereof, the right provided hereunder shall be deemed to be revived and such
Shares shall not be offered unless first reoffered to the Major Investors in
accordance herewith.

                    (d)  The right of first offer in this paragraph 2.4 shall
not be applicable to (i) the issuance or sale of shares of Common Stock (or
options therefor) granted after the date of this Amended and Restated Investors'
Rights Agreement, with the approval of a majority of the members of the Board of
Directors not holding management positions with the Company (and the reissuance
of any shares issued or subject to outstanding options returned to the Company
from any unexercised options or restricted stock repurchased by the Company
after such date), to employees, directors and consultants for the primary
purpose of soliciting or retaining their services pursuant to stock option plans
approved by the Board of Directors; (ii) the issuance of securities pursuant to
a bona fide, firmly underwritten public offering of shares of Common Stock,
registered under the Act, at an offering price of at least $11.92 per share
(appropriately adjusted for any stock split, dividend, combination or other
recapitalization) and resulting in proceeds to the Company of at least
$20,000,000 in the aggregate, (iii) the issuance of securities pursuant to the
conversion or exercise of convertible or exercisable securities, (iv) the
issuance of securities in connection with a bona fide business acquisition of or
by the Company approved by a majority of the Board of Directors of the Company,
whether by merger, consolidation, sale of assets, sale or exchange of stock or
otherwise, (v) the issuance of stock, warrants or other securities or rights,
with the approval of a majority of the Board of Directors of the Company, to
persons or entities with which the Company is entering or has entered into a
strategic relationship, (vi) the issuance of stock, warrants, or other
securities or rights in connection with and other bank debt financing,
commercial lending, equipment financings, capital lease, or similar
transactions, with the approval of a majority of the Board of Directors of the
Company, (vii) in the event that Intel Corporation and the Company agree on the
terms of a technology development relationship, the issuance of a warrant to
Intel Corporation to purchase up to 146,199 shares of Series C Preferred Stock
at $3.42 per share (subject to adjustment of such fixed dollar amounts for any
stock splits, stock dividends, combinations, recapitalizations or the like) and
the issuance of any Common Stock in connection with the conversion of such
preferred stock; (viii) the issuance of a warrant to Comdisco Inc. to purchase
6,397 shares of Series D Preferred Stock at $4.69 per share (subject to
adjustment of such fixed dollar amounts for any stock splits, stock dividends,
combinations, recapitalizations or the like) and the issuance of any Common
Stock in connection with the conversion of such preferred stock; or (ix) the
issuance of a warrant to Microsoft Corporation to purchase up to 218,120 shares
of Series D Preferred Stock at $5.96 (subject to adjustment of such fixed dollar
amounts for any stock splits, stock dividends, combinations, recapitalizations
or the like) and the issuance of any Common Stock in connection with the
conversion of such preferred stock.

               2.5  Termination of Right of First Offer.  The covenants set
                    -----------------------------------
forth in Section 2.4 shall terminate and be of no further force or effect upon
the consummation of, and shall not be applicable to, the sale of securities
pursuant to a bona fide, firmly underwritten public offering of shares of common
stock, registered under the Act, at an offering price of at least $11.92 per
share (appropriately adjusted for any stock split, dividend, combination or
other recapitalization) and resulting in proceeds to the Company of at least
$20,000,000.

                                      -14-
<PAGE>

               2.6  MTV Observer Rights.  As long as funds affiliated with Media
                    -------------------
Technology Ventures, L.P. ("MTV") in the aggregate own not less than fifty
percent (50%) of the shares of the Series B Preferred Stock such funds purchased
pursuant to that certain Series B Preferred Stock Purchase Agreement by and
among the Company and certain stockholders of the Company, dated as of June 8,
1998 (or an equivalent amount of Common Stock issued upon conversion thereof),
the Company shall invite a representative of MTV to attend all meetings of its
Board of Directors in a nonvoting observer capacity and, in this respect, shall
give such representative copies of all notices, minutes, consents, and other
materials that it provides to its directors; provided, however, that such
representative shall agree to hold in confidence and trust and to act in a
fiduciary manner with respect to all information so provided; and, provided
further, that the Company reserves the right to withhold any information and to
exclude such representative from any meeting or portion thereof if access to
such information or attendance at such meeting could adversely affect the
attorney-client privilege between the Company and its counsel or would result in
disclosure of trade secrets to such representative or if such Investor or its
representative is a direct competitor of the Company. The covenants set forth in
this Section 2.6 shall terminate and be of no further force or effect upon the
occurrence of either event specified in Section 2.3 hereof.

               2.7  Intel Observer Rights.  As long as Intel Corporation
                    ---------------------
("Intel"), together with its subsidiaries (defined as entities which Intel
beneficially owns, either directly or indirectly, at least 50% of the voting
securities) in the aggregate own not less than 50% of the shares of the Series C
Preferred Stock Intel purchased pursuant to the Series C Agreement (or an
equivalent amount of Common Stock issued upon conversion thereof), the Company
shall invite a representative of Intel (the "Intel Observer") to attend all
meetings of its Board of Directors in a nonvoting observer capacity and, in this
respect, shall give such representative copies of all notices, minutes,
consents, and other materials that it provides to its directors; provided,
however, that the Company reserves the right to withhold any information and to
exclude the Intel Observer from any meeting or portion thereof if access to such
information or attendance at such meeting could (a) adversely affect the
attorney-client privilege between the Company and its counsel; or (b) result in
disclosure of confidential or proprietary information of third parties. In
addition, a majority of the Company's nonemployee directors shall have the right
to exclude the Intel Observer from portions or entire meetings of the Board of
Directors or omit to provide the Intel Observer with certain information or
analysis which would pose a conflict of interest for Intel. Any disclosures of
confidential information between the Company and the Intel Observer and Intel
will be governed by the terms of the Corporate Non Disclosure Agreement Number
122651 dated August 19, 1998 and any related Confidential Information
Transmittal records executed between the Company and Intel. The Company
acknowledges that Intel will likely have, from time to time, information that
may be of interest to the Company ("Information") regarding a wide variety of
matters including, by way of example only, (1) Intel's technologies, plans and
services, and plans and strategies relating thereto, (2) current and future
investments Intel has made, may make, may consider or may become aware of with
respect to other companies and other technologies, products and services,
including, without limitation, technologies, products and services that may be
competitive with the Company's, and (3) developments with respect to the
technologies, products and services, and plans and strategies relating thereto,
of other companies, including, without limitation, companies that may be
competitive with the Company. The Company recognizes that a portion of such
Information may be

                                      -15-
<PAGE>

of interest to the Company. Such Information may or may not be known by the
Intel Observer. The Company agrees that Intel and the Intel Observer shall have
no duty to disclose any Information to the Company or permit the Company to
participate in any projects or investments based on any Information, or to
otherwise take advantage of any opportunity that may be of interest to the
Company if it were aware of such Information, and hereby waives, to the extent
permitted by law, any claim based on the corporate opportunity doctrine or
otherwise that could limit Intel's ability to pursue opportunities based on such
Information or that would require Intel or the Intel Observer to disclose any
such Information to the Company or offer any opportunity relating thereto to the
Company. The covenants set forth in this Section 2.7 shall terminate and be of
no further force or effect upon the occurrence of either event specified in
Section 2.3 hereof.

               2.8  Microsoft Observer Rights.  As long as Microsoft, together
                    -------------------------
with its subsidiaries (defined as entities which the Microsoft Corporation
beneficially owns, either directly or indirectly, at least 50% of the voting
securities) in the aggregate own not less than 50% of the shares of the Series D
Preferred Stock Microsoft Corporation purchased pursuant to the Series D
Agreement (or an equivalent amount of Common Stock issued upon conversion
thereof), the Company shall invite a representative of the "Microsoft Observer"
to attend all meetings of its Board of Directors in a nonvoting observer
capacity and, in this respect, shall give such representative copies of all
notices, minutes, consents, and other materials that it provides to its
directors; provided, however, that the Company reserves the right to withhold
any information and to exclude the Microsoft Observer from any meeting or
portion thereof if access to such information or attendance at such meeting
could (a) adversely affect the attorney-client privilege between the Company and
its counsel; or (b) result in disclosure of confidential or proprietary
information of third parties. In addition, a majority of the Company's
nonemployee directors shall have the right to exclude the Microsoft Observer
from portions or entire meetings of the Board of Directors or omit to provide
the Microsoft Observer with certain information or analysis which would pose a
conflict of interest for Microsoft Corporation. Any disclosures of confidential
information between the Company and the Microsoft Observer and Microsoft
Corporation will be governed by the terms of the Corporate Non Disclosure
Agreement in the form of Schedule B and any related Confidential Information
Transmittal records executed between the Company and Microsoft Corporation. The
Company acknowledges that each Microsoft Corporation will likely have, from time
to time, information that may be of interest to the Company ("Information")
regarding a wide variety of matters including, by way of example only, (1)
Microsoft Corporation's technologies, plans and services, and plans and
strategies relating thereto, (2) current and future investments the Microsoft
Corporation has made, may make, may consider or may become aware of with respect
to other companies and other technologies, products and services, including,
without limitation, technologies, products and services that may be competitive
with the Company's, and (3) developments with respect to the technologies,
products and services, and plans and strategies relating thereto, of other
companies, including, without limitation, companies that may be competitive with
the Company. The Company recognizes that a portion of such Information may be of
interest to the Company. Such Information may or may not be known by the
Microsoft Observer. The Company agrees that Microsoft Corporation and the
Microsoft Observer shall have no duty to disclose any Information to the Company
or permit the Company to participate in any projects or investments based on any
Information, or to otherwise take advantage of any opportunity that may be of
interest to the

                                      -16-
<PAGE>

Company if it were aware of such Information, and hereby waives, to the extent
permitted by law, any claim based on the corporate opportunity doctrine or
otherwise that could limit Microsoft Corporation's ability to pursue
opportunities based on such Information or that would require Microsoft
Corporation or the Microsoft Observer to disclose any such Information to the
Company or offer any opportunity relating thereto to the Company. The covenants
set forth in this Section 2.8 shall terminate and be of no further force or
effect upon the occurrence of either event specified in Section 2.3 hereof.

               2.9  Stand-Still.  In no event during the period of time
                    -----------
beginning on the date of this Agreement and extending for five years hereafter,
shall any of Microsoft Corporation, Sony Corporation of America, Covad
Communications Investment Corp. or Covad Communications Group, Inc. (each a
"Strategic Investor") acquire beneficial ownership (within the meaning of Rule
13d-3 of the Securities and Exchange Act of 1934, as amended) of 15% or more of
the voting securities (on an as if converted to Common Stock basis) of the
Company then outstanding, without the prior written consent of the Company.

               2.10 Restrictions on Transfer.
                    ------------------------

                    (a)  Each Strategic Investor hereby agrees not to (i) lend,
offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to
purchase, or otherwise transfer or dispose of, directly or indirectly, any
shares of Series D Preferred Stock, the Common Stock issuable upon conversion of
the Series D Preferred Stock , or any other securities of the Company or (ii)
enter into any swap or other arrangement that transfers to another, in whole or
in part, any of the economic consequences of ownership of the Series D Preferred
Stock, the Common Stock issuable upon conversion of the Series D Preferred
Stock, or any other securities of the Company, for a period beginning on the
date of the closing of such Strategic Investor's purchase of Series D Preferred
Stock and ending upon the earlier of (A) 180 days following the Initial Offering
or (B) two years from the date of the closing of the purchase of the Series D
Preferred Stock by such Strategic Investor, except (i) pursuant to an
acquisition of the Company by another entity by means of any transaction or
series of related transactions (including, without limitation; any
reorganization, merger or consolidation) that results in the transfer of fifty
percent (50%) or more of the outstanding voting power of the Company to another
person or entity or group of related persons or entities, (ii) pursuant to a
liquidation, dissolution or winding up of the Company, (iii) or to any
subsidiary (at least 80% owned), any parent (which owns at least 80% of such
Strategic Investor) or any affiliate (as such term is defined under Rule 405
promulgated under the Act) of the Strategic Investor which agrees to be bound by
the terms of this Agreement. Notwithstanding the foregoing, each Strategic
Investor agrees that upon the request of the Company or the underwriter of the
Company's Initial Offering, it shall enter into an Agreement with such terms as
set forth in Section 1.13 hereof or as otherwise requested by the managing
underwriter, in connection with the Company's Initial Offering.

                    (b)  Each Strategic Investor hereby agrees not to offer,
sell or otherwise transfer or dispose of, directly or indirectly, any shares of
Series D Preferred Stock, the Common Stock issuable upon conversion of the
Series D Preferred Stock or any other securities of

                                      -17-
<PAGE>

the Company, for a period beginning 180 days following the Initial Offering and
ending upon the earlier of (i) one year following the Initial Offering and (ii)
two years from the date of the closing of the purchase of the Series D Preferred
Stock by such Strategic Investor, except (A) pursuant to an acquisition of the
Company by another entity by means of any transaction or series of related
transactions (including, without limitation, any reorganization, merger or
consolidation) that results in the transfer of fifty percent (50%) of more of
the outstanding voting power of the Company to another person or entity or group
of related persons or entities, (B) pursuant to a liquidation, dissolution or
winding up of the Company or (C) to any subsidiary (at least 80% owned), any
parent (which owns at least 80% of such Strategic Investor) or any affiliate (as
such term is defined under Rule 405 promulgated under the Act) of the Strategic
Investor which agrees to be bound by the terms of this Agreement, provided that
nothing in the foregoing shall restrict any Strategic Investor from entering
into a bona fide hedge transaction during the period set forth in this
subsection, with respect to the Common Stock issuable upon conversion of the
Series D Preferred Stock.

          3.   Confidentiality.
               ---------------

               3.1  Confidentiality.
                    ---------------

                    (a)  Disclosure of Terms. The terms and conditions (the
                         -------------------
"Financing Terms") of this Agreement, the Series D Agreement, the Voting
Agreement of even date herewith (collectively, the "Financing Agreements"),
including their existence, shall be considered confidential information and
shall not be disclosed by the Company or by Intel to any third party except in
accordance with the provisions set forth below or as required by law.

                    (b)  Press Releases, Etc. Following the Closing, the Company
                         -------------------
may issue a press release disclosing that Intel has invested in the Company;
provided that the final form of the press release is approved in advance in
writing by Intel. Intel's name and the fact that Intel is an investor in the
Company can be included in a reusable press release boilerplate statement, so
long as Intel has given the Company its initial approval of such boilerplate
statement and the boilerplate statement is reproduced in exactly the form in
which it was approved. Such boilerplate statement may be posted on the Company's
Web page. No other announcements regarding Intel's investment in the Company in
a press release, conference, advertisement, announcement, professional or trade
publication, mass marketing materials or otherwise to the general public may be
made without such Investor's prior written consent. In addition, the Company
shall notify each Investor that the Company considers the Financing Terms to be
confidential information and that the Financing Terms should not be disclosed by
the Investors other than in accordance with the terms of this Section 3;
provided, further, the Company shall notify each member of the Board of
Directors that the directors are bound by their fiduciary duties to the Company
to maintain the confidentiality of the Financing Terms.

                    (c)  Permitted Disclosures. Notwithstanding the foregoing,
                         ---------------------
(a) Intel and/or the Company may disclose any of the Financing Terms to its
current or bona fide prospective investors, employees, investment bankers,
lenders, accountants and attorneys, in each case (other than to a current or
bona fide prospective investor) only where such person or entities are under
appropriate nondisclosure obligations, either express or implied, and in the
case of a current or

                                      -18-
<PAGE>

bona fide prospective investor only where such person or entity has been
informed by the Company that such information is confidential; and (b) Intel
and/or the Company may disclose (other than in a press release or other public
announcement described in subsection (ii)) solely the fact that Intel is an
investor in the Company to any third parties without the requirement for the
consent of any other party.

                    (d)  Legally Compelled Disclosure.  In the event that either
                         ----------------------------
the Company or Intel is requested or becomes legally compelled (including
without limitation, pursuant to securities laws and regulations) to disclose the
existence of the Financing Agreements or any of the Financing Terms hereof in
contravention of the provisions of this Section 3.1, such party (the "Disclosing
Party") shall provide the other party (the "Non-Disclosing Party") with prompt
written notice of that fact so that the appropriate party may seek (with the
cooperation and reasonable efforts of the other party) a protective order,
confidential treatment or other appropriate remedy. In such event, the
Disclosing Party shall furnish only that portion of the information which is
reasonably required and shall use reasonable efforts to assist in obtaining
confidential treatment for such information to the extent reasonably requested
by the Non-Disclosing Party.

                    (e)  Other Information.  The provisions of this Section 3.1
                         -----------------
shall be in addition to, and not in substitution for, the provisions of any
separate nondisclosure agreement executed by any of the parties hereto with
respect to the transactions contemplated hereby.

                    (f)  All notices required under this Section shall be made
pursuant to Section 4.5 of this Agreement.

               3.2  Amendment.  Any provision of this Section 3 may be amended
                    ---------
and the observance thereof may be waived (either generally or in a particular
instance and either retroactively or prospectively) only with the written
consent of the Company and Intel.

          4.   Miscellaneous.
               -------------

               4.1  Successors and Assigns.  Except as otherwise provided
                    ----------------------
herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties
(including transferees of any shares of Registrable Securities). Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

               4.2  Governing Law.  This Agreement shall be governed by and
                    -------------
construed under the laws of the State of California as applied to agreements
among California residents entered into and to be performed entirely within
California.

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

                                      -19-
<PAGE>

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

               4.5  Notices.  Unless otherwise provided, any notice required or
                    -------
permitted under this Agreement shall be given in writing and shall be deemed
effectively given upon personal delivery to the party to be notified or upon
delivery by confirmed facsimile transmission, nationally recognized overnight
courier service, or upon deposit with the United States Post Office, by
registered or certified mail, postage prepaid and addressed to the party to be
notified at the address indicated for such party on the signature page hereof,
or at such other address as such party may designate by ten (10) days' advance
written notice to the other parties.

               4.6  Expenses.  If any action at law or in equity is necessary to
                    --------
enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to reasonable attorneys' fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

               4.7  Entire Agreement: Amendments and Waivers.  This Agreement
                    ----------------------------------------
(including the Exhibits hereto, if any) constitutes the full and entire
understanding and agreement among the parties with regard to the subjects hereof
and thereof. Except for Sections 2.6, 2.7, 2.8, 2.9, 2.10 and 3, which shall
require the consent of the party benefiting from or subject to such provision,
any term of this Agreement may be amended and the observance of any term of this
Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and the holders of a majority of the Registrable Securities. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each
holder of any Registrable Securities, each future holder of all such Registrable
Securities, and the Company.

               4.8  Severability.  If one or more provisions of this Agreement
                    ------------
are held to be unenforceable under applicable law, such provision shall be
excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

               4.9  Aggregation of Stock.  All shares of Registrable Securities
                    --------------------
held or acquired by affiliated entities or persons shall be aggregated together
for the purpose of determining the availability of any rights under this
Agreement.

                                      -20-
<PAGE>

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

                                   iBEAM BROADCASTING CORPORATION

                                   _____________________________________
                                   Peter Desnoes
                                   Chief Executive Officer

                         Address:  645 Almanor Avenue
                                   Suite 100
                                   Sunnyvale, CA 94086

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   INVESTORS:

                                   CROSSPOINT VENTURE PARTNERS 1997

                                   _____________________________________
                                   Rich Shapero
                                   General Partner

                         Address:  2925 Woodside Road
                                   Woodside, CA 94062

                                   ACCEL VI L.P.

                                   By: Accel VI Associates L.L.C.
                                       Its General Partner

                                   _____________________________________
                                   Carter Sednaoui
                                   Managing Member

                         Address:  428 University Avenue    Accel Partners
                                   Palo Alto, CA 94301      One Palmer Square
                                   Attn: J. Peter Wagner    Princeton, NJ 08542
                                                            Attn: G. Carter
                                                            Sednaoui

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   ACCEL INTERNET FUND II L.P.

                                   By: Accel Internet Fund II Associates L.L.C.
                                       Its General Partner

                                   _____________________________________________
                                   Carter Sednaoui
                                   Managing Member

                         Address:  428 University Avenue    Accel Partners
                                   Palo Alto, CA 94301      One Palmer Square
                                   Attn: J. Peter Wagner    Princeton, NJ 08542
                                                            Attn: G. Carter
                                                            Sednaoui

                                   ACCEL KEIRETSU VI L.P.

                                   By: Accel Keiretsu VI Associates L.L.C.
                                       Its General Partner

                                   _____________________________________________
                                   Carter Sednaoui
                                   Managing Member

                         Address:  428 University Avenue    Accel Partners
                                   Palo Alto, CA 94301      One Palmer Square
                                   Attn: J. Peter Wagner    Princeton, NJ 08542
                                                            Attn: G. Carter
                                                            Sednaoui

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   ACCEL INVESTORS '98 L.P.

                                   By: ___________________________________
                                       Carter Sednaoui
                                       General Partner

                         Address:  428 University Avenue    Accel Partners
                                   Palo Alto, CA 94301      One Palmer Square
                                   Attn: J. Peter Wagner    Princeton, NJ 08542
                                                            Attn: G. Carter
                                                            Sednaoui

                                   MEDIA TECHNOLOGY VENTURES, L.P.

                                   By: ___________________________________
                                   Title: ________________________________

                         Address:  One First Street
                                   Los Altos, CA 94022

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   MEDIA TECHNOLOGY VENTURES
                                   ENTREPRENEURS FUND, L.P.

                                   By: ___________________________________
                                   Title: ________________________________

                         Address:  One First Street
                                   Los Altos, CA 94022

                                   ANNABEL J. MONTGOMERY, as Trustee of the
                                   ANNABEL MONTGOMERY REVOCABLE TRUST DATED
                                   FEBRUARY 7, 1991 and JAMES W. MONTGOMERY, as
                                   tenants in common, each as to an undivided
                                   one-half interest

                                   _______________________________________
                                   Annabel J. Montgomery, Trustee

                                   MONTGOMERY & ASSOCIATES, L.P.

                                   By: ___________________________________
                                   Title: ________________________________

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   CULBARA, INC.

                                   By: __________________________________
                                   Title: _______________________________

                         Address:  100 Wilshire Blvd. Suite 400
                                   Santa Monica, CA 90401

                                   G&H PARTNERS

                                   By: __________________________________
                                   Title: _______________________________

                                   STANFORD UNIVERSITY

                                   ______________________________________
                                   Carol Filmer

                         Address:  Stanford Management Company
                                   2770 Sand Hill Road
                                   Menlo Park, CA 94025

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   J.P. MORGAN DIRECT VENTURE CAPITAL
                                   INSTITUTIONAL INVESTORS LLC

                                   By: __________________________________
                                   Name: ________________________________
                                   Title: _______________________________

                         Address:  522 5/TH/ Avenue.
                                   New York, New York 10036

                                   J.P. MORGAN DIRECT VENTURE
                                   CAPITAL PRIVATE INVESTORS LLC

                                   By: __________________________________
                                   Name: ________________________________
                                   Title: _______________________________

                         Address:  522 5/TH/ Avenue.
                                   New York, New York 10036

                                   INTEL CORPORATION

                                   By: __________________________________
                                   Name: ________________________________
                                   Title: _______________________________

                         Address:  2200 Mission College Blvd.
                                   Santa Clara, CA 95052-8119

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   MICROSOFT CORPORATION

                                   By: __________________________________
                                   Name: ________________________________
                                   Title: _______________________________

                         Address:  One Microsoft Way
                                   Redmond, WA 98052-6399

                                   COVAD COMMUNICATIONS INVESTMENT CORP.

                                   By: __________________________________
                                   Name: ________________________________
                                   Title: _______________________________

                                   CRESCENDO WORLD FUND LLC

                                   By: __________________________________
                                   Name: ________________________________
                                   Title: _______________________________

                                   EAGLE VENTURES WF, LLC

                                   By: __________________________________
                                   Name: ________________________________
                                   Title: _______________________________

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   LUNN-iBEAM, LLC

                                   By: LUNN PARTNERS, LLC
                                       ITS MANAGER

                                   ______________________________________
                                   Robert J. Lunn
                                   Managing Member

                                   PETER B. DESNOES, IRA A/C 774-91015
                                   GUARANTEE & TRUST COMPANY, TTEE

                                   ______________________________________

                                   ROBERT C. HAWK

                                   ______________________________________

                         Address:  7585 S. Biscay Street
                                   Aurora, CO 80016

                                   LEN GROSSI

                                   ______________________________________

                         Address:  5555 Melrose Avenue
                                   Hollywood, CA 90038

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   FRED SEEGAL

                                   ______________________________________

                         Address:  31 West 52/nd/ Street
                                   27/th/ Floor
                                   New York, New York 10019

                                   WS INVESTMENT COMPANY 99B

                                   By: __________________________________
                                   Name: ________________________________
                                   Title: _______________________________

                         Address:  650 Page Mill Road
                                   Palo Alto, CA 94304

                                   CHRIS DIER

                                   ______________________________________

                                   BRUCE D. LAWLER

                                   ______________________________________

                                   TOM GILLIS

                                   ______________________________________

                                   JEREMY ZULLO

                                   ______________________________________

                                   NILS LAHR

                                   ______________________________________

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   DAVID STREHLOW

                                   ______________________________________

                                   BOB DAVIS

                                   ______________________________________

                                   PHILIP ROSEDALE

                                   ______________________________________

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   COMDISCO, INC.

                                   By: __________________________________
                                   Title: _______________________________

                         Address:  100 Hamilton Ste. 104A  6111 North River Road
                                   Palo Alto, CA 94301     Rosemont, IL 60018
                                   Attn: Christine Ferra   Attn: Venture Group

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   SONY CORPORATION OF AMERICA

                                   By: _________________________________
                                   Title: ______________________________

      SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS' RIGHTS AGREEMENT
<PAGE>

                                   Schedule A
                                   ----------

                             Schedule of Investors
                             ---------------------

                    Crosspoint Venture Partners 1997

                    Accel VI L.P.

                    Accel Internet Fund II L.P.

                    Accel Keiretsu VI L.P.

                    Accel Investors '98 L.P.

                    Media Technology Ventures, L.P.

                    Media Technology Ventures
                    Entrepreneurs Fund, L.P.

                    Annabel J. Montgomery
                    As Trustee of the Annabel J.
                    Montgomery Revocable Trust dated
                    February 7, 1991 and James W.
                    Montgomery

                    Montgomery & Associates LP

                    J.P. Morgan Direct Venture Capital
                    Institutional Investors, LLC

                    J.P. Morgan Direct Venture Capital
                    Private Investors LLC

                    Intel Corporation

                    Microsoft Corporation

                    Covad Communications
                    Investment Corp.

                                      S-1
<PAGE>

                    Crescendo World Fund, LLC

                    Eagle Ventures WF, LLC

                    Lunn-iBEAM, LLC
                    Peter B. Desnoes, IRA A/C
                    774-91015 Guarantee & Trust
                    Company, TTEE

                    Robert C. Hawk

                    Len Grossi

                    Fred Seegal

                    WS Investment  Company 99B

                    Chris L. Dier

                    Bruce D. Lawler

                    Tom Gillis

                    Jeremy Zullo

                    Nils Lahr

                    David Strehlow

                    Bob Davis

                    Philip Rosendale

                    Comdisco, Inc.

                    Sony Corporation of America

                                     S-2
<PAGE>

                                  SCHEDULE B

                      CORPORATE NON DISCLOSURE AGREEMENT<PAGE>

                                                                     EXHIBIT 4.3

NEITHER THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE HEREOF
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY STATE SECURITIES LAW. NO TRANSFER OF THIS WARRANT OR
OF THE SECURITIES ISSUABLE UPON EXERCISE HEREOF SHALL BE VALID OR EFFECTIVE
UNLESS (A) SUCH TRANSFER IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES
LAW, OR (B) THE HOLDER SHALL DELIVER TO THE COMPANY AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND OF ANY
APPLICABLE STATE SECURITIES LAW.

Warrant No. M-1                                             October 14, 1999

                         iBEAM BROADCASTING CORPORATION

                   SERIES D PREFERRED STOCK PURCHASE WARRANT

     iBEAM Broadcasting Corporation, a Delaware corporation (the "Company"),
hereby grants to Microsoft Corporation, a Washington corporation ("Microsoft"),
or its permitted assigns or transferees (Microsoft and each such permitted
assignee or transferee being referred to herein as a "holder" and collectively
as the "holders") the right to purchase, at any time after the Exercise Date (as
defined below in Section 1.2) and from time to time on and after the date hereof
until the Expiration Date (as defined below), up to 218,120 fully paid and non-
assessable shares of Series D Preferred Stock of the Company, $.0001 par value
per share (the "Series D Preferred Stock"), on the terms and subject to the
conditions set forth below.

          This Series D Preferred Stock Purchase Warrant (hereinafter, this
"Warrant") was originally issued on October 14, 1999 (the "Original Issue
Date").  This Warrant shall expire and be of no further force or effect on the
earlier to occur of (i) the date seven (7) years from the Original Issue Date
and (ii) the date four (4) years from the closing of an initial public offering
of the Company's Common Stock under the Securities Act (the "Expiration Date").

     1.   Exercise of Warrant.
          -------------------

          1.1  Exercise and Vesting.  Subject to adjustment as hereinafter
               --------------------
provided, the rights represented by this Warrant are exercisable on and after
the Exercise Date (as defined below in Section 1.2) until the Expiration Date,
at a price per share (the "Exercise Price") of the Series D Preferred Stock
issuable hereunder equal to $5.96. The Exercise Price shall be payable in cash,
by certified or official bank check as hereinafter provided or in accordance
with Section 1.2 below.  This Warrant is fully vested.  The shares purchasable
upon exercise of this Warrant, as adjusted from
<PAGE>

time to time pursuant to the provisions of this Warrant, are hereinafter
referred to as the "Warrant Shares."

     Upon surrender of this Warrant with a duly executed Notice of Exercise in
the form of Annex A hereto, together with payment, if applicable, of the
Exercise Price for the Warrant Shares purchased, at the Company's principal
executive offices presently located at 645 Almanor Avenue, Suite 100, Sunnyvale,
CA 94086, or at such other address as the Company shall have advised the holder
in writing (the "Designated Office"), the holder shall be entitled to receive a
certificate or certificates for the Warrant Shares so purchased.  The Company
agrees that the Warrant Shares shall be deemed to have been issued to the holder
as of the close of business on the date on which this Warrant shall have been
surrendered together with the Notice of Exercise and payment, if applicable, for
such Warrant Shares.

          1.2  Right to Convert.
               ----------------

               (a) Subject to the provisions of Section 1.1, at any time or from
time on or prior to the Expiration Date, the holder of this Warrant shall also
have the right to convert this Warrant or any portion thereof (the "Conversion
Right"), without payment by the holder of this Warrant of the Exercise Price in
cash or any other consideration (other than the surrender of rights to receive
Warrant Shares hereunder), into Warrant Shares as provided in this Section 1.2.
Upon exercise of the Conversion Right with respect to a particular number of
Warrant Shares (the "Converted Warrant Shares"), the Company shall deliver to
the holder of this Warrant (without payment by the holder of this Warrant of the
Exercise Price in cash or any other consideration (other than the surrender of
rights to receive Warrant Shares hereunder)) that number of Warrant Shares equal
to the quotient obtained by dividing: (x) the difference between (i) the product
of (A) the Current Market Price of a Warrant Share multiplied by (B) the number
of Converted Warrant Shares and (ii) the product of (A) the Exercise Price
multiplied by (B) the number of the Converted Warrant Shares, in each case as of
the Conversion Date (as defined by Section 1.2(b)), by (y) the Current Market
Price of a Warrant Share on the Conversion Date. No fractional Warrant Shares
shall be issuable upon exercise of the Conversion Right, and if the number of
Warrant Shares to be issued determined in accordance with the following formula
is other than a whole number, the Company shall pay to the holder of this
Warrant an amount in cash equal to the Current Market Price of the resulting
fractional Warrant Share on the Conversion Date.

               (b) The Conversion Right may be exercised by the holder of this
Warrant by the surrender of this Warrant as provided in Section 1.1, together
with a written statement specifying that the holder of this Warrant thereby
intends to exercise the Conversion Right and indicating the number of Converted
Warrant Shares which are covered by the exercise of the Conversion Right.  Such
conversion shall be effective upon receipt by the Corporation of this Warrant,
together with the aforesaid written statement, or on such later date as is
specified therein (the "Conversion Date").  The Corporation shall issue to the
holder of this Warrant as of the Conversion Date a certificate for the Warrant
Shares issuable upon exercise of the Conversion Right and, if applicable, a new
warrant of like tenor evidencing the balance of the Warrant Shares remaining
subject to this Warrant.

                                      -2-
<PAGE>

               (c) The term "Current Market Price" for a Warrant Share as of a
specified date shall mean:  (i) if the exercise or conversion is in connection
with an initial public offering of the Common Stock, and if the Company's
registration statement relating to such offering has been declared effective by
the Securities and Exchange Commission, then the Current Market Price shall be
the initial "Price to Public" specified in the final prospectus with respect to
the offering, (ii) if the Common Stock is publicly traded on such date, the
average closing price per share over the preceding 10 trading days as reported
on the principal stock exchange or quotation system on which the Common Stock is
listed or quoted, or (iii) if the Common Stock is not publicly traded on such
date, the Current Market Price shall be the greater of the book value
(determined in accordance with GAAP) and the appraised value per Warrant Share
as of such date determined by an investment banking firm of recognized standing
selected by the Company and reasonably satisfactory to the holder hereof.  Each
of the Company and Microsoft shall pay one-half of the fees and expenses of such
investment banking firm.  In the event that the holder disputes such appraised
value, the holder shall be entitled to select an additional investment banking
firm of recognized standing and paid for by the holder to calculate the
appraised value and the Company and the holder shall use their good faith best
efforts to agree on the appraised value based on the reports of the two
investment banking firms.  In the event that the Company and the holder are
still unable to reach agreement as to the appraised value, the Company and the
holder agree to submit such determination to binding arbitration.

     2.   Transfer; Issuance of Stock Certificates; Restrictive Legends.
          -------------------------------------------------------------

          2.1  Transfer.  Except as expressly permitted in the following
               --------
sentence, this Warrant and the rights hereunder are not transferable by the
holder hereof.  Notwithstanding the foregoing, this Warrant may be assigned to
any entity controlled by or under common control with (as evidenced by ownership
of 50% or more of the outstanding voting stock or other interests of such
entity) Microsoft.  Subject to compliance with the restrictions on transfer set
forth in this Section 2, each transfer of this Warrant and all rights hereunder,
in whole or in part, shall be registered on the books of the Company to be
maintained for such purpose, upon surrender of this Warrant at the Designated
Office, together with a written assignment of this Warrant in the form of Annex
B hereto duly executed by the holder or its agent or attorney.  Upon such
surrender and delivery, the Company shall execute and deliver a new Warrant or
Warrants in the name of the assignee or assignees and in the denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, if any.  A
Warrant, if properly assigned in compliance with the provisions hereof, may be
exercised by the new holder for the purchase of Warrant Shares without having a
new Warrant issued.  All Warrants issued upon any assignment of Warrants shall
be the valid obligations of the Company, evidencing the same rights, and
entitled to the same benefits as the Warrants surrendered upon such registration
of transfer or exchange.

          2.2  Stock Certificates.  Certificates for the Warrant Shares shall be
               ------------------
delivered to the holder within a reasonable time after the rights represented by
this Warrant shall have been exercised pursuant to Section 1, and a new Warrant
representing the share, shares or fraction of a share of Common Stock, if any,
with respect to which this Warrant shall not then have been exercised shall also
be issued to the holder within such time.  The issuance of certificates for
Warrant Shares upon the exercise of this Warrant shall be made without charge to
the holder hereof

                                      -3-
<PAGE>

including, without limitation, any tax that may be payable in respect thereof;
provided, however, that the Company shall not be required to pay any income tax
to which the holder hereof may be subject in connection with the issuance of
this Warrant or the Warrant Shares.

          2.3  Restrictive Legends.  (a)  Except as otherwise provided in this
               -------------------
Section 2, each certificate for Warrant Shares initially issued upon the
exercise of this Warrant, and each certificate for Warrant Shares issued to any
subsequent transferee of any such certificate, shall be stamped or otherwise
imprinted with a legend in substantially the following form:

     THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
     REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
     "SECURITIES ACT"), OR ANY STATE SECURITIES LAW. NO TRANSFER OF
     THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL BE VALID OR
     EFFECTIVE UNLESS (A) SUCH TRANSFER IS MADE PURSUANT TO AN
     EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND IN
     COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR (B) THE
     HOLDER SHALL DELIVER TO THE COMPANY AN OPINION OF COUNSEL IN FORM
     AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH
     PROPOSED TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
     THE SECURITIES ACT AND OF ANY APPLICABLE STATE SECURITIES LAWS.

               (b) Except as otherwise provided in this Section 2, each Warrant
shall be stamped or otherwise imprinted with a legend in substantially the
following form:

     NEITHER THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE
     HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAW. NO
     TRANSFER OF THIS WARRANT OR OF THE SECURITIES ISSUABLE UPON EXERCISE
     HEREOF SHALL BE VALID OR EFFECTIVE UNLESS (A) SUCH TRANSFER IS MADE
     PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
     ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAW, OR (B)
     THE HOLDER SHALL DELIVER TO THE COMPANY AN OPINION OF COUNSEL IN FORM
     AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER
     IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
     OF ANY APPLICABLE STATE SECURITIES LAW.

Notwithstanding the foregoing, the legend requirements of this Section 2.3 shall
terminate as to any particular Warrant or Warrant Share when the Company shall
have received from the holder thereof an opinion of counsel in form and
substance reasonably acceptable to the Company that such legend is not required
in order to ensure compliance with the Securities Act.  Whenever the
restrictions imposed by this Section 2.3 shall terminate, the holder hereof or
of Warrant Shares, as the case may be, shall be entitled to receive from the
Company without cost to such holder a new Warrant or certificate for Warrant
Shares of like tenor, as the case may be, without such restrictive legend.

                                      -4-

<PAGE>

     3    Adjustment of Number of Shares; Exercise Price; Nature of Securities
          --------------------------------------------------------------------
          Issuable Upon Exercise of Warrants.
          ----------------------------------

          3.1  Exercise Price; Adjustment of Number of Shares.  The Exercise
               ----------------------------------------------
Price set forth in Section 1 hereof and the number of shares purchasable
hereunder shall be subject to adjustment from time to time as hereinafter
provided.

          3.2  Redemption or Conversion of Preferred Stock.  If all of the
               -------------------------------------------
Series D Preferred Stock is redeemed or converted into shares of Common Stock,
then this Warrant shall automatically become exercisable for that number of
shares of Common Stock equal to the number of shares of Common Stock that would
have been received if this Warrant had been exercised in full and the shares of
Series D Preferred Stock received thereupon had been simultaneously converted
into shares of Common Stock immediately prior to such event, and the Exercise
Price shall be automatically adjusted to equal the number obtained by dividing
(i) the aggregate Purchase Price of the shares of Series D Preferred Stock for
which this Warrant was exercisable immediately prior to such redemption or
conversion, by (ii) the number of shares of Common Stock for which this Warrant
is exercisable immediately after such redemption or conversion.

          3.3  Reorganization, Reclassification, Consolidation, Merger or Sale.
               ---------------------------------------------------------------
If any capital reorganization or reclassification of the capital stock of the
Company, or any consolidation or merger of the Company with another entity, or
the sale of all or substantially all of the Company's assets to another person
or entity (collectively referred to as a "Transaction") shall be effected in
such a way that holders of Series D Preferred Stock shall be entitled to receive
stock, securities, cash or assets with respect to or in exchange for Series D
Preferred Stock, then, as a condition of such Transaction, reasonable, lawful
and adequate provisions shall be made whereby the holder of this Warrant shall
thereafter have the right to purchase and receive upon the basis and upon the
terms and conditions specified in this Warrant, upon exercise of this Warrant
and in lieu of the Warrant Shares immediately theretofore purchasable and
receivable upon the exercise of the rights represented hereby, such number,
amount and like kind of shares of stock, securities, cash or assets as may be
issued or payable pursuant to the terms of the Transaction with respect to or in
exchange for the number of shares of Series D Preferred Stock immediately
theretofore purchasable and receivable upon the exercise of the rights
represented hereby as if such shares were outstanding immediately prior to the
Transaction, and in any such case appropriate provision shall be made with
respect to the rights and interest of the holders to the end that the provisions
hereof (including, without limitation, provisions for adjustments of the
Exercise Price and of the number of Warrant Shares purchasable and receivable
upon the exercise of this Warrant) shall thereafter be applicable, as nearly as
may be practicable, in relation to any shares of stock or securities thereafter
deliverable upon the exercise hereof.

          3.4  Stock Splits, Stock Dividends and Reverse Stock Splits.  In case
               ------------------------------------------------------
at any time the Company shall subdivide its outstanding shares of Series D
Preferred Stock into a greater number of shares, or shall declare and pay any
stock dividend with respect to its outstanding stock that has the effect of
increasing the number of outstanding shares of Series D Preferred Stock, the
Exercise Price in effect immediately prior to such subdivision or stock dividend
shall be proportionately reduced and the number of Warrant Shares purchasable
pursuant to this Warrant immediately prior to such subdivision or stock dividend
shall be proportionately increased, and

                                      -5-
<PAGE>

conversely, in case at any time the Company shall combine its outstanding shares
of Series D Preferred Stock into a smaller number of shares, the Exercise Price
in effect immediately prior to such combination shall be proportionately
increased and the number of Warrant Shares purchasable upon the exercise of this
Warrant immediately prior to such combination shall be proportionately reduced.

          3.5  Company to Prevent Dilution.  In case at any time or from time to
               ---------------------------
time conditions arise by reason of action taken by the Company which are not
adequately covered by this Section 3, and which might materially and adversely
affect the exercise rights of the holder hereof, unless the adjustment necessary
shall be agreed by the Company and the holder hereof, the Board of Directors of
the Company shall appoint a firm of independent certified public accountants of
national standing, reasonably acceptable to the holder, who at the Company's
expense shall give their opinion upon the adjustment necessary with respect to
the Exercise Price and the number of Warrant Shares purchasable upon exercise of
this Warrant, if any, so as to preserve, without dilution, the exercise rights
of the holder hereof.  In the event that the holder disputes such adjustment,
the holder shall be entitled to select an additional firm of independent
certified public accountants of national standing and paid for by the holder to
calculate such adjustment and the Company and the holder shall use their good
faith best efforts to agree on such adjustment based on the reports of the two
accounting firms.  In the event that the Company and the holder are still unable
to reach agreement as to such adjustment, the Company and the holder agree to
submit such determination to binding arbitration.  Upon determination of such
adjustment, the Board of Directors shall forthwith make the adjustments
described therein.

          3.6  Dissolution, Liquidation or Wind-Up.  In case the Company shall,
               -----------------------------------
at any time prior to the exercise of this Warrant, dissolve, liquidate or wind
up its affairs, the holder hereof shall be entitled, upon the exercise of this
Warrant, to receive, in lieu of the Warrant Shares which the holder would have
been entitled to receive, the same kind and amount of assets as would have been
issued, distributed or paid to such holder upon any such dissolution,
liquidation or winding up with respect to such Warrant Shares, had such holder
hereof been the holder of record of the Warrant Shares receivable upon the
exercise of this Warrant on the record date for the determination of those
persons entitled to receive any such liquidating distribution.

          3.7  Accountant's Certificate.  In each case of an adjustment in the
               ------------------------
Exercise Price, number of Warrant Shares or other stock, securities or property
receivable upon the exercise of this Warrant, the Company shall compute, and
upon the holder's request shall at the Company's expense cause independent
public accountants of recognized standing selected by the Company and reasonably
acceptable to the holder to certify such computation, such adjustment in
accordance with the terms of this Warrant and prepare a certificate setting
forth such adjustment and showing in detail the facts upon which such adjustment
is based, including a statement of (i) the number of shares of Common Stock of
each class outstanding or deemed to be outstanding, (ii) the adjusted Exercise
Price and (iii) the number of Warrant Shares issuable upon exercise of this
Warrant.  The Company will forthwith mail a copy of each such certificate to the
holder hereof.  In the event that the holder disputes such adjustment, the
holder shall be entitled to select an additional firm of independent certified
public accountants of national standing and paid for by the holder to certify
such adjustment and the Company and the holder shall use their good faith best
efforts to agree on such adjustment based on the reports of the two accounting
firms.  In the event that the Company

                                      -6-
<PAGE>

and the holder are still unable to reach agreement as to such adjustment, the
Company and the holder agree to submit such determination to binding
arbitration. Upon determination of such adjustment, the Board of Directors shall
forthwith make the adjustments described therein.

          3.8  Definition of Common Stock.  As used in this Section 3, the term
               --------------------------
"Common Stock" shall mean and include the Company's authorized common stock of
any class or classes and any securities convertible into or exchangeable for
such common stock.

     4.   Registration; Exchange and Replacement of Warrant; Reservation of
          -----------------------------------------------------------------
Shares.
------

          The Company shall keep at the Designated Office a register in which
the Company shall provide for the registration, transfer and exchange of this
Warrant.  The Company shall not at any time, except upon the dissolution,
liquidation or winding-up of the Company, close such register so as to result in
preventing or delaying the exercise or transfer of this Warrant.

          The Company may deem and treat the person in whose name this Warrant
is registered as the holder and owner hereof for all purposes and shall not be
affected by any notice to the contrary, until presentation of this Warrant for
registration or transfer as provided in this Section 5.

          Upon receipt by the Company of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of this Warrant, and upon
surrender and cancellation of this Warrant, if mutilated, the Company will make
and deliver a new Warrant of like tenor, in lieu of this Warrant without
requiring the posting of any bond or the giving of any security.

          The Company shall at all times reserve and keep available out of its
authorized shares of Series D Preferred Stock, solely for the purpose of
issuance upon the exercise of this Warrant, such number of shares of Series D
Preferred Stock as shall be issuable upon the exercise hereof and shall at all
times reserve and keep available out of its authorized shares of Common Stock, a
sufficient number of shares to provide for the issuance of Common Stock upon
conversion of the Warrant Shares.  The Company covenants and agrees that, upon
exercise of this Warrant and payment of the Exercise Price therefor, if
applicable, all Warrant Shares issuable upon such exercise shall be duly and
validly issued, fully paid and non-assessable.

     5.   Registration Rights.
          -------------------

          The holder shall have the registration rights set forth in the Amended
and Restated Investors' Rights Agreement dated as of October 14, 1999 by and
among the Company and the investors listed on Schedule A thereto, as such
agreement may be heretofore amended, with respect to the Common Stock issuable
upon the exchange or conversion of the Warrant Shares.

     6.   Notices.
          -------

          All notices, requests, consents and other communications hereunder
shall be in writing and shall be deemed to have been duly made when delivered
personally, or mailed by registered or certified mail, return receipt requested,
or telecopied or telexed and confirmed in writing and delivered personally or
mailed by registered or certified mail, return receipt requested:

                                      -7-
<PAGE>

               (a) If to the holder of this Warrant, to the address of such
holder as shown on the books of the Company; or

               (b) If to the Company, to the address set forth in Section 1 of
this Warrant;

or at such other address as the holder or the Company may hereafter have advised
the other.

     7.   No Rights as Stockholders.
          -------------------------

          This Warrant does not entitle the holder to any voting rights or other
rights as a stockholder of the Company prior to the exercise thereof.

     8.   Successors.
          ----------

          All the covenants, agreements, representations and warranties
contained in this Warrant shall bind the parties hereto and their respective
heirs, executors, administrators, distributees, successors, assigns and
transferees.

     9.   Law Governing.
          -------------

          This Warrant shall be construed and enforced in accordance with, and
governed by, the laws of the State of Washington (not including the choice of
law rules thereof) regardless of the jurisdiction of creation or domicile of the
Company or its successors or of the holder at any time hereof.

     10.  Entire Agreement; Amendments and Waivers.
          ----------------------------------------

          This Warrant sets forth the entire understanding of the parties with
respect to the transactions contemplated hereby.  The failure of any party to
seek redress for the violation or to insist upon the strict performance of any
term of this Warrant shall not constitute a waiver of such term and such party
shall be entitled to enforce such term without regard to such forbearance.  This
Warrant may be amended, and any breach of or compliance with any covenant,
agreement, warranty or representation may be waived, only if the Company has
obtained the written consent or written waiver of the holder, and then such
consent or waiver shall be effective only in the specific instance and for the
specific purpose for which given.

     11.  Severability; Headings.
          ----------------------

          If any term of this Warrant as applied to any person or to any
circumstance is prohibited, void, invalid or unenforceable in any jurisdiction,
such term shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or invalidity without in any way affecting any other term of this
Warrant or affecting the validity or enforceability of this Warrant or of such
provision in any other jurisdiction.  The Section headings in this Warrant have
been inserted for purposes of convenience only and shall have no substantive
effect.

                    [remainder of page intentionally blank]

                                      -8-
<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed as of the date first written above.

                                  iBEAM BROADCASTING CORPORATION

                                  By:________________________________
                                  Name:
                                  Title:

Accepted and agreed:

MICROSOFT CORPORATION

By:_______________________________
     Gregory B. Maffei
     Senior Vice President, and
     Chief Financial Officer

                                      -9-
<PAGE>

                                    ANNEX A
                                    -------
                              NOTICE OF EXERCISE
                     (To be executed upon partial or full
                        exercise of the within Warrant)

          The undersigned hereby irrevocably elects to exercise the right to
purchase ___________ shares of Series D Preferred Stock of iBEAM Broadcasting
Corporation covered by the within Warrant according to the conditions hereof and
herewith makes payment of the Exercise Price of such shares in full in the
amount of $____________________.

                                   By: ___________________________________
                                       (Signature of Registered Holder)

Dated:_______________

<PAGE>

                                    ANNEX B
                                    -------

                                ASSIGNMENT FORM

          FOR VALUE RECEIVED the undersigned registered owner of this Warrant
hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the under-signed under this Warrant, with respect to the number of
shares of Series D Preferred Stock set forth below:

                                                    No. of Shares of
Name and Address of Assignee                        Common Stock
----------------------------                        ------------

and does hereby irrevocably constitute and appoint ________ _____________
attorney-in-fact to register such transfer onto the books of iBEAM Broadcasting
Corporation maintained for the purpose, with full power of substitution in the
premises.

Dated:___________________________             Print Name:______________________

                                              Signature:_______________________

                                              Witness:_________________________

NOTICE:   The signature on this assignment must correspond with the name as
          written upon the face of this Warrant in every particular, without
          alteration or enlargement or any change whatsoever.

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