<PAGE>
 
                                                                   EXHIBIT 10.23



        ---------------------------------------------------------------

                              AT HOME CORPORATION


                          LOAN AND SECURITY AGREEMENT

        ---------------------------------------------------------------
<PAGE>
 
                               TABLE OF CONTENTS

<TABLE> 
<CAPTION> 
                                                                  Page
                                                                  ----
<S>                                                               <C> 
1.   DEFINITIONS AND CONSTRUCTION.................................   1
     1.1   Definitions............................................   1
     1.2   Accounting and Other Terms.............................   6

2.   LOAN AND TERMS OF PAYMENT....................................   6
     2.1   Credit Extensions......................................   6
     2.2   Interest Rates, Payments, and Calculations.............   6
     2.3   Crediting Payments.....................................   9
     2.4   Fees...................................................   9
     2.5   Additional Costs.......................................  10
     2.6   Term...................................................  10

3.   CONDITIONS OF LOANS..........................................  11
     3.1   Conditions Precedent to Initial Credit Extension.......  11
     3.2   Conditions Precedent to all Credit Extensions..........  11

4.   CREATION OF SECURITY INTEREST................................  11
     4.1   Grant of Security Interest.............................  11
     4.2   Delivery of Additional Documentation Required..........  12
     4.3   Right to Inspect.......................................  12
     4.4   Release of Security Interest...........................  12

5.   REPRESENTATIONS AND WARRANTIES...............................  12
     5.1   Due Organization and Qualification.....................  12
     5.2   Due Authorization; No Conflict.........................  12
     5.3   No Prior Encumbrances..................................  12
     5.4   Merchantable Inventory.................................  12
     5.5   Name; Location of Chief Executive Office...............  13
     5.6   Litigation.............................................  13
     5.7   No Material Adverse Change in Financial Statements.....  13
     5.8   Solvency...............................................  13
     5.9   Regulatory Compliance..................................  13
     5.10  Environmental Condition................................  13
     5.11  Taxes..................................................  14
     5.12  Subsidiaries...........................................  14
     5.13  Government Consents....................................  14
     5.14  Full Disclosure........................................  14

6.   AFFIRMATIVE COVENANTS........................................  14
     6.1   Good Standing..........................................  14
     6.2   Government Compliance..................................  15
     6.3   Financial Statements, Reports, Certificates............  15
     6.4   Inventory; Returns.....................................  15
     6.5   Taxes..................................................  15
     6.6   Insurance..............................................  16
     6.7   Principal Depository...................................  16
     6.8   Tangible Net Worth.....................................  16
     6.9   Remaining Months Liquidity.............................  16
     6.10  Liquidity, Debt Service Coverage.......................  16
     6.11  Further Assurances.....................................  17

7.   NEGATIVE COVENANTS...........................................  17
     7.1   Dispositions...........................................  17
     7.2   Changes in Business, Ownership, Management
           or Business Locations..................................  17
     7.3   Mergers or Acquisitions................................  17
     7.4   Indebtedness...........................................  17
     7.5   Encumbrances...........................................  18
     7.6   Distributions..........................................  18
</TABLE>

                                       i
<PAGE>
 
<TABLE>
<S>                                                                 <C>       
     7.7   Investments............................................  18
     7.8   Transactions with Affiliates...........................  18
     7.9   Subordinated Debt......................................  18
     7.10  Inventory..............................................  18
     7.11  Compliance.............................................  18

8.   EVENTS OF DEFAULT............................................  19
     8.1   Payment Default........................................  19
     8.2   Covenant Default.......................................  19
     8.3   Material Adverse Change................................  19
     8.4   Attachment.............................................  19
     8.5   Insolvency.............................................  20
     8.6   Other Agreements.......................................  20
     8.7   Subordinated Debt......................................  20
     8.8   Judgments..............................................  20
     8.9   Misrepresentations.....................................  20

9.   BANK'S RIGHTS AND REMEDIES...................................  20
     9.1   Rights and Remedies....................................  20
     9.2   Power of Attorney......................................  21
     9.3   Accounts Collection....................................  22
     9.4   Bank Expenses..........................................  22
     9.5   Bank's Liability for Collateral........................  22
     9.6   Remedies Cumulative....................................  22
     9.7   Demand; Protest........................................  23

10.  NOTICES......................................................  23

11.  CHOICE OF LAW AND VENUE......................................  23

12.  GENERAL PROVISIONS...........................................  24
     12.1  Successors and Assigns.................................  24
     12.2  Indemnification........................................  24
     12.3  Time of Essence........................................  24
     12.4  Severability of Provisions.............................  24
     12.5  Amendments in Writing, Integration.....................  24
     12.6  Counterparts...........................................  24
     12.7  Survival...............................................  24
     12.8  Confidentiality........................................  25
</TABLE>

                                      ii
<PAGE>
 
     This LOAN AND SECURITY AGREEMENT is entered into as of September 24, 1997,
by and between SILICON VALLEY BANK ("Bank") and AT HOME CORPORATION
("Borrower").

                                   RECITALS
                                   --------

     Borrower wishes to obtain credit from time to time from Bank, and Bank
desires to extend credit to Borrower. This Agreement sets forth the terms on
which Bank will advance credit to Borrower, and Borrower will repay the amounts
owing to Bank.

                                   AGREEMENT
                                   ---------

     The parties agree as follows:

          1.   DEFINITIONS AND CONSTRUCTION
               ----------------------------

               1.1  Definitions
                    -----------

               As used in this Agreement, the following terms shall have the
following definitions:

               "Accounts" means all presently existing and hereafter arising
accounts, contract rights to receive payments, and all other forms of payment
obligations owing to Borrower arising out of the sale or lease of goods
(including, without limitation, the right to receive payment under the licensing
of software and other technology) or the rendering of services by Borrower,
whether or not earned by performance, and any and all credit insurance,
guaranties, and other security therefor, as well as all merchandise returned to
or reclaimed by Borrower and Borrower's Books relating to any of the foregoing.
Notwithstanding the foregoing, the term "Collateral" shall not include any
general intangibles or contracts of Borrower (whether owned or held as licensee
or lessee, or otherwise) to the extent that (i) such general intangibles or
contracts are not assignable or capable of being encumbered as a matter of law
or under the terms of the license, lease or other agreement applicable thereto
(but solely to the extent that such restriction shall be enforceable under
applicable law) without the consent of the licensor or lessor thereof or other
applicable party thereto and (ii) such consent has not been obtained:  provided,
                                                                       -------- 
however, that the term "Collateral" shall include (A) any general intangible or
-------                                                                        
contract which is an Account or a proceed of, or otherwise related to the
enforcement or collection of, any Account or goods which are the subject of any
Account, and (B) any and all proceeds of any general intangibles or contracts
which are otherwise excluded to the extent that the assignment or encumbrance of
such proceeds is not so restricted, and (C) upon obtaining the consent of any
such licensor, lessor or other applicable party with respect to any such
otherwise excluded general intangibles or contracts, the proceeds of such
general intangibles or contracts that might theretofore have been excluded from
such grant of a security interest and the term "Collateral".

               "Affiliate" means, with respect to any Person, any Person that
owns or controls directly or indirectly such Person, any Person that controls or
is controlled by or is under common control with such Person, and each of such
Person's senior executive officers, directors, partners and, for any Person that
is a limited liability company, such Persons, managers and members.

               "Bank Expenses" means all: reasonable costs or expenses
(including reasonable attorneys' fees and expenses) incurred in connection with
the preparation, negotiation and administration of the Loan Documents not to
exceed $5,000; and Bank's reasonable attorneys' fees and expenses incurred in
enforcing or defending the Loan Documents (including fees and expenses of appeal
or review, or those incurred in any Insolvency Proceeding), whether or not suit
is brought.

               "Borrower's Books" means all of Borrower's books and records
including without limitation: ledgers; records concerning Borrower's assets or
liabilities, the Collateral, business operations or financial condition; and all
computer programs, or tape files, and the equipment, containing such
information.

               "Business Day" means any day that is not a Saturday, Sunday, or
other day on which banks in the State of California are authorized or required
to close.

                                       1
<PAGE>
 
               "Cash Burn" has the meaning set forth in Section 6.9.

               "Closing Date" means the date of this Agreement.

               "Code" means the California Uniform Commercial Code.

               "Collateral" means the property described on Exhibit A attached 
                                                            ---------
hereto.
     
               "Committed Equipment Line means a credit extension of Eight
Million Dollars ($8,000,000).

               "Contingent Obligation" means, as applied to any Person, any
direct or indirect liability, contingent or otherwise, of that Person with
respect to (i) any indebtedness, lease, dividend, letter of credit or other
obligation of another, including, without limitation, any such obligation
directly or indirectly guaranteed, endorsed, co-made or discounted or sold with
recourse by that Person, or in respect of which that Person is otherwise
directly or indirectly liable; (ii) any obligations with respect to undrawn
letters of credit issued for the account of that Person; and (iii) all
obligations arising under any interest rate, currency or commodity swap
agreement, interest rate cap agreement, interest rate collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices; provided, however,
that the term "Contingent Obligation" shall not include endorsements for
collection or deposit or standard contractual indemnities including without
limitation indemnities provided in connection with Borrower's initial public
offering for which reserves are not required under GAAP in the ordinary course
of business. The amount of any Contingent Obligation shall be deemed to be an
amount equal to the stated or determined amount of the primary obligation in
respect of which such Contingent Obligation is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof as
determined by such Person in good faith; provided, however, that such amount
shall not in any event exceed the maximum amount of the obligations under the
guarantee or other support arrangement.

               "Credit Extension" means each Equipment Advance, Letter of
Credit, Exchange Contract or any other extension of credit by Bank for the
benefit of Borrower hereunder.

               "Current Assets" means, as of any applicable date, all amounts
that should, in accordance with GAAP, be included as current assets on the
consolidated balance sheet of Borrower and its Subsidiaries as at such date.

               "Current Liabilities" means, as of any applicable date, all
amounts that should, in accordance with GAAP, be included as current liabilities
on the consolidated balance sheet of Borrower and its Subsidiaries, as at such
date, plus, to the extent not already included therein, all outstanding Credit
Extensions made under this Agreement, including all Indebtedness that is payable
upon demand or within one year from the date of determination thereof unless
such Indebtedness is renewable or extendable at the option of Borrower or any
Subsidiary to a date more than one year from the date of determination, but
excluding Subordinated Debt.

               "Debt Service Coverage" means, as measured as of the last day of
each calendar month, on a consolidated basis determined in accordance with GAAP,
the ratio of (a) an amount equal to the sum of (i) net income, plus (ii)
                                                               ----
depreciation and amortization of intangible assets plus (iii) monthly interest
                                                        ----              
expense to (b) an amount equal to the sum of (x) all scheduled repayments and
mandatory prepayments of principal on account of long-term Debt and capitalized
lease expense for such month plus (y) monthly interest expense.
                             ----                              

               "Eligible Equipment" means computer and networking equipment,
software, furniture, office equipment and tenant improvements.

               "Equipment" means all present and future machinery, equipment,
tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments
in which Borrower has any interest.

               "Equipment Advance" means a loan advance under the Committed
Equipment Line.

               "Equipment Availability End Date" has the meaning set forth in
Section 2.1.1.

                                       2
<PAGE>
 
               "ERISA" means the Employment Retirement Income Security Act of
1974, as amended, and the regulations thereunder.

               "Exchange Contract" has the meaning set forth in Section 2.1.3.

               "Foreign Exchange Reserve" has the meaning set forth in Section
2.1.3 herein.

               "GAAP" means generally accepted accounting principles as in
effect in the United States from time to time.

               "Indebtedness" means (a) all indebtedness for borrowed money or
the deferred purchase price of property or services, including without
limitation reimbursement and other obligations with respect to surety bonds and
letters of credit, (b) all obligations evidenced by notes, bonds, debentures or
similar instruments, (c) all capital lease obligations and (d) all Contingent
Obligations.

               "Insolvency Proceeding" means any proceeding commenced by or
against any person or entity under any provision of the United States Bankruptcy
Code, as amended, or under any other bankruptcy or insolvency law, including
assignments for the benefit of creditors, formal or informal moratoria,
compositions, extension generally with its creditors, or proceedings seeking
reorganization, arrangement, or other relief.

               "Inventory" means all present and future inventory in which
Borrower has any interest, including merchandise, raw materials, parts,
supplies, packing and shipping materials, work in process and finished products
intended for sale or lease or to be furnished under a contract of service, of
every kind and description now or at any time hereafter owned by or in the
custody or possession, actual or constructive, of Borrower, including such
inventory as is temporarily out of its custody or possession or in transit and
including any returns upon any accounts or other proceeds, including insurance
proceeds, resulting from the sale or disposition of any of the foregoing and any
documents of title representing any of the above.

               "Investment" means any beneficial ownership of (including stock,
partnership interest or other securities) any Person, or any loan, advance or
capital contribution to any Person.

               "IRC" means the Internal Revenue Code of 1986, as amended, and
the regulations thereunder.

               "Letter of Credit" means a letter of credit or similar
undertaking issued by Bank pursuant to Section 2.1.2.

               "Letter of Credit Reserve" has the meaning set forth in Section
2.1.2.

               "Lien" means any mortgage, lien, deed of trust, charge, pledge,
security interest or other encumbrance.

               "Loan Documents" means, collectively, this Agreement, any note or
notes executed by Borrower, and any other present or future agreement entered
into between Borrower and/or for the benefit of Bank in connection with this
Agreement, all as amended, extended or restated from time to time.

               "Material Adverse Effect" means a material adverse effect on (i)
the business operations or condition (financial or otherwise) of Borrower and
its Subsidiaries taken as a whole or (ii) the ability of Borrower to repay the
Obligations or otherwise perform its obligations under the Loan Documents.

               "Maturity Date" means September 23, 2001.

               "Negotiable Collateral" means all of Borrower's present and
future letters of credit of which it is a beneficiary, notes, drafts,
instruments, securities, documents of title, and chattel paper.

               "Obligations" means all debt, principal, interest, Bank Expenses
and other

                                       3
<PAGE>
 
amounts owed to Bank by Borrower pursuant to this Agreement or any other
agreement, whether absolute or contingent, due or to become due, now existing or
hereafter arising, including any interest that accrues after the commencement of
an Insolvency Proceeding and including any debt, liability, or obligation owing
from Borrower to others that Bank may have obtained by assignment or otherwise.

               "Payment Date" means the twenty-third (23rd) calendar day of each
month, commencing on the first such date after the Closing Date and ending on
the Maturity Date.

               "Permitted Indebtedness" means:

               (a)     Indebtedness of Borrower in favor of Bank arising under
this Agreement or any other Loan Document;

               (b)     Indebtedness existing on the Closing Date and disclosed
in the Schedule or Borrower's financial statements;

               (c)     Indebtedness to trade creditors incurred in the ordinary
course of business;

               (d)     Subordinated Debt;

               (e)     Indebtedness secured by Permitted Liens; and

               (f)     Any other Indebtedness that does not in aggregate exceed
Twenty-Five Million Dollars ($25,000,000);

               "Permitted Investment" means:

               (a)     Investments existing on the Closing Date disclosed in the
Schedule; and

               (b) (i) marketable direct obligations issued or unconditionally
guaranteed by the United States of America or any agency or any State thereof
maturing within one (1) year from the date of acquisition thereof,
(ii) commercial paper maturing no more than one (1) year from the date of
creation thereof and currently having the highest rating obtainable from either
Standard & Poor's Corporation or Moody's Investors Service, Inc.,
(iii) certificates of deposit maturing no more than one (1) year from the date
of investment therein issued by Bank, (iv) any Investments permitted by
Borrower's investment policy, as amended from time to time, provided that such
investment policy (and such amendment thereto) has been approved by Bank, which
approval shall not be unreasonably withheld, and (v) any other Investments in
the aggregate not to exceed Twenty-Five Million Dollars ($25,000,000).

               "Permitted Liens" means the following:

               (a)     Any Liens existing on the Closing Date and disclosed in
the Schedule or arising under this Agreement or the other Loan Documents;

               (b)     Liens for taxes, fees, assessments or other governmental
charges or levies, either not delinquent or being contested in good faith by
appropriate proceedings and as to which adequate reserves are maintained on
Borrower's Books in accordance with GAAP, provided the same have no priority
                                          --------
over any of Bank's security interests;

               (c)     Liens (i) upon or in any Equipment acquired or held by
Borrower or any of its Subsidiaries to secure the purchase price of such
Equipment or indebtedness incurred solely for the purpose of financing the
acquisition of such Equipment, or (ii) existing on such equipment at the time of
its acquisition, provided that the Lien is confined solely to the property so
                 --------                                                    
acquired and improvements thereon, and the proceeds of such Equipment;

               (d)     Leases or subleases and licenses or sublicenses granted
to others in the ordinary course of Borrower's business not interfering in any
material respect with the business of Borrower and its Subsidiaries taken as a
whole, and any interest or title of a lessor, licensor or under any lease or
license, provided that such leases, subleases, licenses and sublicenses do not
prohibit the grant of the security interest granted hereunder; and

                                       4
<PAGE>
 
               (e)     Liens incurred in connection with the extension, renewal
or refinancing of the indebtedness secured by Liens of the type described in
clauses (a) through (c) above, provided that any extension, renewal or
                               --------                               
replacement Lien shall be limited to the property encumbered by the existing
Lien and the principal amount of the indebtedness being extended, renewed or
refinanced does not increase.

               "Person" means any individual, sole proprietorship, partnership,
limited liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint
stock company, estate, entity or governmental agency.

               "Prime Rate" means the variable rate of interest, per annum, most
recently announced by Bank, as its "prime rate," whether or not such announced
rate is the lowest rate available from Bank.

               "Quick Assets" means, as of any applicable date, the unrestricted
cash; unrestricted cash-equivalents; net, billed accounts receivable and
investments with maturities of fewer than one year of Borrower determined in
accordance with GAAP.

               "Remaining Months Liquidity" has the meaning set forth in Section
6.9.

               "Responsible Officer" means each of the Chief Executive Officer,
the President, the Chief Financial Officer and the Controller of Borrower.

               "Schedule" means the schedule of exceptions attached hereto, if
any.

               "Subordinated Debt" means any debt incurred by Borrower that is
subordinated to the debt owing by Borrower to Bank on terms acceptable to Bank
(and identified as being such by Borrower and Bank).

               "Subsidiary" means with respect to any Person, corporation,
partnership, company association, joint venture, or any other business entity of
which more than fifty percent (50%) of the voting stock or other equity
interests is owned or controlled, directly or indirectly, by such Person or one
or more Affiliates of such Person.

               "Tangible Net Worth" means, as of any applicable date, the
consolidated total assets of Borrower and its Subsidiaries minus, without
                                                           -----         
duplication, (i) the sum of any amounts attributable to (a) goodwill,
(b) intangible items such as unamortized debt discount and expense, patents,
trade and service marks and names, copyrights and research and development
expenses except prepaid expenses, and (c) all reserves not already deducted from
assets, and (ii) Total Liabilities.
        ---                        

               "Total Liabilities" means, as of any applicable date, all
obligations that should, in accordance with GAAP, be classified as liabilities
on the consolidated balance sheet of Borrower, including in any event all
Indebtedness, but specifically excluding Subordinated Debt.

          1.2  Accounting and Other Terms.
               -------------------------- 

               All accounting terms not specifically defined herein shall be
construed in accordance with GAAP and all calculations and determinations made
hereunder shall be made in accordance with GAAP.  When used herein, the term
"financial statements" shall include the notes and schedules thereto.  The terms
"including" / "includes" shall always be read as meaning "including (or
includes) without limitation," when used herein or in any other Loan Document.

     2.   LOAN AND TERMS OF PAYMENT
          -------------------------

          2.1  Credit Extensions.
               ----------------- 

               Borrower promises to pay to the order of Bank, in lawful money of
the United States of America, the aggregate unpaid principal amount of all
Credit Extensions made by Bank to Borrower hereunder. Borrower shall also pay
interest on the unpaid principal amount of such Credit Extensions at rates in
accordance with the terms hereof.

               2.1.1   Equipment Advances.
                       ------------------ 

                                       5
<PAGE>
 
                       (a) Subject to and upon the terms and conditions of this
Agreement, at any time from the date hereof through September 23, 1998 (the
"Equipment Availability End Date"), Bank agrees to make advances (each an
"Equipment Advance" and, collectively, the "Equipment Advances") to Borrower in
an aggregate outstanding amount not to exceed (i) the Committed Equipment Line
minus (ii) the face amount of all outstanding Letters of Credit (including drawn
-----                                                                           
but unreimbursed Letters of Credit), minus (iii) the Foreign Exchange Reserve,
                                     -----                                    
minus (iv) the Cash Management Sublimit, minus (v) the Executive Guaranty
-----                                    -----                           
Reserve.  The Equipment Advances shall be used only to purchase or refinance
Eligible Equipment purchased on or after one hundred fifty (150) days prior to
the date hereof and shall not exceed one hundred percent (100%) of the invoice
amount of such equipment approved from time to time by Bank, excluding taxes,
shipping, warranty charges, freight discounts and installation expense.

                       (b) Interest shall accrue from the date of each
outstanding Equipment Advance at the rate specified in Section 2.2(a) and shall
be payable monthly for each month through the month in which the Equipment
Availability End Date falls. Any Equipment Advances that are outstanding on the
Equipment Availability End Date will be payable in thirty-six (36) equal monthly
installments of principal, plus all accrued interest, beginning on the Payment
Date of each month following the Equipment Availability End Date and ending on
the Maturity Date, at which time all Equipment Advances under this Section 2.1
and all other amounts due under this Agreement shall be immediately due and
payable. Equipment Advances may be prepaid at any time without penalty, but,
once repaid, may not be reborrowed.

                       (c) When Borrower desires to obtain an Equipment Advance,
Borrower shall notify Bank (which notice shall be irrevocable) by facsimile
transmission to be received no later than 3:00 p.m. Pacific time one (1)
Business Day before the day on which the Equipment Advance is to be made. Such
notice shall be substantially in the form of Exhibit B. The notice shall be
                                             ---------
signed by a Responsible Officer and shall constitute a representation and
warranty by Borrower that the requested Equipment Advance is for the purchase of
Eligible Equipment.

               2.1.2   Letters of Credit.
                       ----------------- 

                       (a) Subject to the terms and conditions of this
Agreement, Bank agrees to issue or cause to be issued Letters of Credit for the
account of Borrower in an aggregate outstanding face amount not to exceed the
Committed Equipment Line minus the aggregate Equipment Advances, provided that 
                         -----                                   --------   
the aggregate face amount of outstanding Letters of Credit (including drawn but
unreimbursed Letters of Credit and any Letter of Credit Reserve) shall not in
any case exceed Three Million Dollars ($3,000,000). Each Letter of Credit shall
have an expiry date no later than the Maturity Date. All Letters of Credit shall
be, in form and substance, acceptable to Bank in its sole discretion and shall
be subject to the terms and conditions of Bank's form of standard Application
and Letter of Credit Agreement.

                       (b) The obligation of Borrower to immediately reimburse
Bank for drawings made under Letters of Credit shall be absolute, unconditional
and irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement and such Letters of Credit, under all circumstances whatsoever.
Borrower shall indemnify, defend, protect and hold Bank harmless from any loss,
cost, expense or liability, including, without limitation, reasonable attorneys'
fees, arising out of or in connection with any Letters of Credit.

                       (c) Borrower may request that Bank issue a Letter of
Credit payable in a currency other than United States Dollars. If a demand for
payment is made under any such Letter of Credit, Bank shall treat such demand as
an Advance to Borrower of the equivalent of the amount thereof (plus cable
charges) in United States currency at the then prevailing rate of exchange in
San Francisco, California, for sales of that other currency for cable transfer
to the country of which it is the currency.

                       (d) Upon the issuance of any Letter of Credit payable in
a currency other than United States Dollars, Bank shall create a reserve under
the Committed Equipment Line for Letters of Credit against fluctuations in
currency exchange rates, in an amount equal to ten percent (10%) of the face
amount of such Letter of Credit. The amount of such reserve may be amended by
Bank from time to time to account for fluctuations in the exchange rate. The
availability of funds under the Committed Equipment Line shall be reduced by the
amount of such reserve for so long as such Letter of Credit remains outstanding.

                                       6
<PAGE>
 
               2.1.3   Foreign Exchange Contract; Foreign Exchange Settlements.
                       -------------------------------------------------------

                       (a) Subject to the terms of this Agreement, Borrower may
enter into foreign exchange contracts (the "Exchange Contracts") not to exceed
an aggregate amount of One Million Dollars ($1,000,000) (the "Contract Limit"),
pursuant to which Bank shall sell to or purchase from Borrower foreign currency
on a spot or future basis. Borrower shall not request any Exchange Contracts at
any time it is out of compliance with any of the provisions of this Agreement.
All Exchange Contracts must provide for delivery of settlement on or before the
Maturity Date. The amount available under the Committed Equipment Line at any
time shall be reduced by the following amounts (the "Foreign Exchange Reserve")
on any given day (the "Determination Date"): (i) on all outstanding Exchange
Contracts on which delivery is to be effected or settlement allowed more than
two (2) Business Days after the Determination Date, ten percent (10%) of the
gross amount of the Exchange Contracts; plus (ii) on all outstanding Exchange
Contracts on which delivery is to be effected or settlement allowed within two
(2) Business Days after the Determination Date, one hundred percent (100%) of
the gross amount of the Exchange Contracts.

                       (b) Bank may, in its discretion, terminate the Exchange
Contracts at any time (a) that an Event of Default occurs or (b) that there is
no sufficient availability under the Committed Equipment Line and Borrower does
not have available funds in its bank account to satisfy the Foreign Exchange
Reserve. If Bank terminates the Exchange Contracts, and without limitation of
any applicable indemnities, Borrower agrees to reimburse Bank for any and all
fees, costs and expenses relating thereto or arising in connection therewith.

                       (c) Borrower shall not permit the total gross amount of
all Exchange Contracts on which delivery is to be effected and settlement
allowed in any two (2) Business Day period to be more than One Million Dollars
($1,000,000) (the "Settlement Limit"), nor shall Borrower permit the total gross
amount of all Exchange Contracts to which Borrower is a party, outstanding at
any one time, to exceed the Contract Limit.

                       (d) In the case of Borrower's purchase of foreign
currency, Borrower in advance shall instruct Bank upon settlement either to
treat the settlement amount as an advance under the Committed Equipment Line, or
to debit Borrower's account for the amount settled.

                       (e) Borrower shall execute all standard form applications
and agreements of Bank in connection with the Exchange Contracts and, without
limiting any of the terms of such applications and agreements, Borrower will pay
all standard fees and charges of Bank in connection with the Exchange Contracts.

               2.1.4   Cash Management Sublimit.  Subject to the terms and 
                       ------------------------    
conditions of this Agreement, Borrower may utilize up to an aggregate amount not
to exceed One Million Dollars ($1,000,000) (the "Cash Management Sublimit") for
cash management services provided by Bank, which services may include merchant
services, PC-ACH, direct deposit of payroll, business credit card, Firstax, and
other related check cashing services as defined in that certain Cash Management
Services Agreement provided to Borrower in connection herewith (a "Cash
Management Service", or the "Cash Management Services"). Any amounts actually
paid by Bank in respect of a Cash Management Service or Cash Management Services
shall, when paid, constitute an Equipment Advance under the Committed Equipment
Line.

               2.1.5   Executive Guarantee Reserve.  Subject to the terms and
                       ---------------------------                           
conditions of this Agreement, at Bank's sole discretion, Bank may agree to make
or arrange loans to executives of Borrower in an aggregate amount not to exceed
Five Hundred Thousand Dollars ($500,000).  Any such loans shall be guaranteed by
Borrower, and shall be subject to terms and conditions agreed to separately in
writing among any such executives, Bank, and Borrower (the "Guaranteed Executive
Loans").  All agreements executed in connection with the Guaranteed Executive
Loans shall be, in form and substance, acceptable to Bank, in its sole
discretion.  The amount available under the Committed Equipment Line at any time
shall be reduced by the aggregate outstanding amount of principal, interest and
other amounts due in respect of the Guaranteed Executive Loans (the "Executive
Guaranty Reserve").

          2.2  Interest Rates, Payments, and Calculations.
               ------------------------------------------

               (a)     Interest Rate.  Except as set forth in Section 2.2(b), 
                       -------------                                          
any Equipment 

                                       7
<PAGE>
 
Advances shall bear interest on the average daily balance thereof, at a per
annum rate equal to the Prime Rate.

               (b)     Default Rate.  All Obligations shall bear interest, from 
                       ------------       
and during the continuance of an Event of Default, at a rate equal to four (4)
percentage points above the interest rate applicable immediately prior to the
occurrence of the Event of Default.

               (c)     Payments.  Interest hereunder shall be due and payable 
                       --------      
on each Payment Date. Borrower hereby authorizes Bank to debit any accounts with
Bank, including, without limitation, Account Number 3300033101 for payments of
principal and interest due on the Obligations and any other amounts owing by
Borrower to Bank. Bank will notify Borrower of all debits which Bank has made
against Borrower's accounts. Any such debits against Borrower's accounts in no
way shall be deemed a set-off. Any interest not paid when due shall be
compounded by becoming a part of the Obligations, and such interest shall
thereafter accrue interest at the rate then applicable hereunder.

               (d)     Computation.  In the event the Prime Rate is changed 
                       -----------      
from time to time hereafter, the applicable rate of interest hereunder shall be
increased or decreased effective as of 12:01 a.m. on the day the Prime Rate is
changed, by an amount equal to such change in the Prime Rate. All interest
chargeable under the Loan Documents shall be computed on the basis of a three
hundred sixty (360) day year for the actual number of days elapsed. Bank shall
notify Borrower of any changes to the Prime Rate.

          2.3  Crediting Payments.
               ------------------ 

               Prior to the occurrence of an Event of Default, Bank shall credit
a wire transfer of funds, check or other item of payment to such deposit account
or Obligation as Borrower specifies. After the occurrence of an Event of
Default, the receipt by Bank of any wire transfer of funds, check, or other item
of payment, whether directed to Borrower's deposit account with Bank or to the
Obligations or otherwise, shall be immediately applied to conditionally reduce
Obligations. Payments shall not be considered a payment in respect of the
Obligations unless such payment is of immediately available federal funds (e.g.
wire transfers) or unless and until such check or other item of payment is
honored when presented for payment. Notwithstanding anything to the contrary
contained herein, any wire transfer or payment received by Bank after 12:00 noon
Pacific time shall be deemed to have been received by Bank as of the opening of
business on the immediately following Business Day. Whenever any payment to Bank
under the Loan Documents would otherwise be due (except by reason of
acceleration) on a date that is not a Business Day, such payment shall instead
be due on the next Business Day, and additional fees or interest, as the case
may be, shall accrue and be payable for the period of such extension.

          2.4  Fees.
               ---- 

               Borrower shall pay to Bank the following:

               (a)     Facility Fee.  A Facility Fee equal to Ten Thousand 
                       ------------ 
Dollars ($10,000), which fee shall be due on the Closing Date and shall be fully
earned and non-refundable; and an additional Facility Fee equal to Ten Thousand
Dollars ($10,000), which fee shall be due if and when the outstanding Equipment
Advances under this Agreement are equal to or greater than Four Million Dollars
($4,000,000).

               (b)     Bank Expenses.  Upon demand from Bank, including, without
                       -------------                                            
limitation, upon the date hereof, all Bank Expenses incurred through the date
hereof, including reasonable attorneys' fees and expenses not to exceed
[$5,000], plus Bank Expenses, including reasonable attorneys' fees and expenses,
incurred in the enforcement of the Loan Documents.

          2.5  Additional Costs.
               ---------------- 

               In case any change in any law, regulation, treaty or official
directive or the interpretation or application thereof by any court or any
governmental authority charged with the administration thereof or the compliance
with any guideline or request of any central bank or other governmental
authority (whether or not having the force of law), in each case after the date
of this Agreement:

                                       8
<PAGE>
 
               (a)     subjects Bank to any tax with respect to payments of
principal or interest or any other amounts payable hereunder by Borrower or
otherwise with respect to the transactions contemplated hereby (except for taxes
on the overall net income of Bank imposed by the United States of America or any
political subdivision thereof);

               (b)     imposes, modifies or deems applicable any deposit
insurance, reserve, special deposit or similar requirement against assets held
by, or deposits in or for the account of, or loans by, Bank; or

               (c)     imposes upon Bank any other condition with respect to its
performance under this Agreement,

and the result of any of the foregoing is to increase the cost to Bank, reduce
the income receivable by Bank or impose any expense upon Bank with respect to
any loans, Bank shall notify Borrower thereof.  Borrower agrees to pay to Bank
the amount of such increase in cost, reduction in income or additional expense
as and when such cost, reduction or expense is incurred or determined, upon
presentation by Bank of a statement of the amount and setting forth Bank's
calculation thereof, all in reasonable detail, which statement shall be deemed
true and correct absent manifest error.

          2.6  Term.
               ---- 

               Except as otherwise set forth herein, this Agreement shall become
effective on the Closing Date and, subject to Section 12.7, shall continue in
full force and effect for a term ending on the Maturity Date.  Notwithstanding
the foregoing, Bank shall have the right to terminate its obligation to make
Credit Extensions under this Agreement immediately and without notice upon the
occurrence and during the continuance of an Event of Default.  Notwithstanding
termination of this Agreement, Bank's lien on the Collateral shall remain in
effect for so long as any Obligations (excluding Obligations under Section 2.5
and 12.2 to the extent they remain inchoate at the time outstanding payment
obligations are paid in full) are outstanding.

     3.   CONDITIONS OF LOANS
          -------------------

          3.1  Conditions Precedent to Initial Credit Extension.
               ------------------------------------------------
  
               The obligation of Bank to make the initial Credit Extension is
subject to the condition precedent that Bank shall have received, in form and
substance satisfactory to Bank, the following:

               (a)     this Agreement;

               (b)     a certificate of the Secretary of Borrower with respect
to articles, bylaws, incumbency and resolutions authorizing the execution and
delivery of this Agreement;

               (c)     financing statement (Form UCC-1);

               (d)     insurance certificate;

               (e)     payment of the fees and Bank Expenses then due specified
in Section 2.4 hereof; and

               (f)     such other documents, and completion of such other
matters, as Bank may reasonably deem necessary or appropriate.

          3.2  Conditions Precedent to all Credit Extensions.
               ---------------------------------------------

               The obligation of Bank to make each Credit Extension, including
the initial Credit Extension, is further subject to the following conditions:

               (a)     timely receipt by Bank of the Payment/Advance Form as
provided in Section 2.1; and

                                       9
<PAGE>
 
               (b)     the representations and warranties contained in Section 5
shall be true and correct in all material respects on and as of the date of such
Payment/Advance Form and on the effective date of each Credit Extension as
though made at and as of each such date, and no Event of Default shall have
occurred and be continuing, or would result from such Credit Extension. The
making of each Credit Extension shall be deemed to be a representation and
warranty by Borrower on the date of such Credit Extension as to the accuracy of
the facts referred to in this Section 3.2(b).

     4.   CREATION OF SECURITY INTEREST
          -----------------------------

          4.1  Grant of Security Interest.
               -------------------------- 

               Borrower grants and pledges to Bank a continuing security
interest in all presently existing and hereafter acquired or arising Collateral
in order to secure prompt payment of any and all Obligations and in order to
secure prompt performance by Borrower of each of its covenants and duties under
the Loan Documents. Except as set forth in the Schedule, such security interest
constitutes a valid, first priority security interest in the presently existing
Collateral, and will constitute a valid, first priority security interest in
Collateral acquired after the date hereof. Notwithstanding termination of this
Agreement, Bank's Lien on the Collateral shall remain in effect for so long as
any Obligations are outstanding (excluding Obligations under Section 2.5 and
12.2 to the extent they remain inchoate at the time outstanding payment
obligations are paid in full).

          4.2  Delivery of Additional Documentation Required.
               ---------------------------------------------

               Borrower shall from time to time execute and deliver to Bank, at
the reasonable request of Bank, all Negotiable Collateral, all financing
statements and other documents that Bank may reasonably request, in form
satisfactory to Bank, to perfect and continue perfected Bank's security
interests in the Collateral and in order to fully consummate all of the
transactions contemplated under the Loan Documents.

          4.3  Right to Inspect.
               ---------------- 

               Bank (through any of its officers, employees, or agents) shall
have the right, upon reasonable prior notice, from time to time during
Borrower's usual business hours, to inspect Borrower's Books and to make copies
thereof and to check, test, and appraise the Collateral in order to verify
Borrower's financial condition or the amount, condition of, or any other matter
relating to, the Collateral.

          4.4  Release of Security Interest.
               ---------------------------- 

               Bank shall release the security interest in the Collateral upon
repayment of all Obligations and termination of all commitments to make any
Credit Extensions hereunder.

     5.   REPRESENTATIONS AND WARRANTIES
          ------------------------------

          Borrower represents and warrants as follows:

          5.1  Due Organization and Qualification.
               ---------------------------------- 

               Borrower and each Subsidiary is a corporation duly existing and
in good standing under the laws of its state of incorporation and qualified and
licensed to do business in, and is in good standing in, any state in which the
conduct of its business or its ownership of property requires that it be so
qualified, except for states as to which any failure to so qualify would not
have a Material Adverse Effect.

          5.2  Due Authorization; No Conflict.
               ------------------------------ 

               The execution, delivery, and performance of the Loan Documents
are within Borrower's powers, have been duly authorized, and are not in conflict
with nor constitute a breach of any provision contained in Borrower's
Articles/Certificate of Incorporation or Bylaws, nor will they constitute an
event of default under any material agreement to which Borrower is a party or by
which Borrower is bound. Borrower is not in default under any agreement to which
it is a party or by which it is bound, which default could reasonably be
expected to have a Material Adverse Effect.

                                      10
<PAGE>
 
          5.3  No Prior Encumbrances.
               --------------------- 

               Borrower has good and indefeasible title to the Collateral, free
and clear of Liens, except for Permitted Liens.

          5.4  Merchantable Inventory.
               ---------------------- 

               All Inventory is in all material respects of good and marketable
quality, free from all material defects.

          5.5  Name; Location of Chief Executive Office.
               ----------------------------------------

               Except as disclosed in the Schedule, and except for At Home
Corporation, @Home Network, and @Work, Borrower has not done business and will
not, without at least thirty (30) days prior written notice to Bank, do business
under any name other than that specified on the signature page hereof. The chief
executive office of Borrower is located at the address indicated in Section 10
hereof.

          5.6  Litigation.
               ---------- 

               Except as set forth in the Schedule, there are no actions or
proceedings pending or, to Borrower's knowledge, threatened by or against
Borrower or any Subsidiary before any court or administrative agency in which an
adverse decision could reasonably be expected to have a Material Adverse Effect
or a material adverse effect on Borrower's interest or Bank's security interest
in the Collateral.

          5.7  No Material Adverse Change in Financial Statements.
               --------------------------------------------------

               All consolidated financial statements related to Borrower and any
Subsidiary that have been delivered by Borrower to Bank fairly present in all
material respects Borrower's consolidated financial condition as of the date
thereof and Borrower's consolidated results of operations for the period then
ended. There has not been a material adverse change in the consolidated
financial condition of Borrower since the date of the most recent of such
financial statements submitted to Bank on or about the Closing Date.

          5.8  Solvency.
               -------- 

               The fair saleable value of Borrower's assets (including goodwill
minus disposition costs) exceeds the fair value of its liabilities; the Borrower
is not left with unreasonably small capital after the transactions contemplated
by this Agreement; and Borrower is able to pay its debts (including trade debts)
as they mature.

          5.9  Regulatory Compliance.
               --------------------- 

               Borrower and each Subsidiary has met the minimum funding
requirements of ERISA with respect to any employee benefit plans subject to
ERISA. No event has occurred resulting from Borrower's failure to comply with
ERISA that is reasonably likely to result in Borrower's incurring any liability
that could reasonably be expected to have a Material Adverse Effect. Borrower is
not an "investment company" or a company "controlled" by an "investment company"
within the meaning of the Investment Company Act of 1940. Borrower is not
engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying margin stock (within
the meaning of Regulations G, T and U of the Board of Governors of the Federal
Reserve System). Borrower has complied with all the provisions of the Federal
Fair Labor Standards Act. Borrower has not violated any statutes, laws,
ordinances or rules applicable to it, violation of which could reasonably be
expected to have a Material Adverse Effect.

                                      11
<PAGE>
 
          5.10 Environmental Condition.
               ----------------------- 

               None of Borrower's or any Subsidiary's properties or assets has
ever been used by Borrower or any Subsidiary or, to the best of Borrower's
knowledge, by previous owners or operators, in the disposal of, or to produce,
store, handle, treat, release, or transport, any hazardous waste or hazardous
substance other than in material accordance with applicable law violation of
which could reasonably be expected to have a Material Adverse Effect; to the
best of Borrower's knowledge, none of Borrower's properties or assets has ever
been designated or identified in any manner pursuant to any material
environmental protection statute as a hazardous waste or hazardous substance
disposal site, or a candidate for closure pursuant to any environmental
protection statute, which could reasonably be expected to have a Material
Adverse Effect; no material lien arising under any environmental protection
statute has attached to any revenues or to any real or personal property owned
by Borrower or any Subsidiary which could reasonably be expected to have a
Material Adverse Effect; and neither Borrower nor any Subsidiary has received a
summons, citation, notice, or directive from the Environmental Protection Agency
or any other federal, state or other governmental agency concerning any material
action or omission by Borrower or any Subsidiary resulting in the release or
other disposition of material hazardous waste or hazardous substances into the
environment which could reasonably be expected to have a Material Adverse
Effect.

          5.11 Taxes.
               ----- 

               Borrower and each Subsidiary has filed or caused to be filed all
tax returns required to be filed on a timely basis, and has paid, or has made
adequate provision for the payment of, all taxes reflected therein, except those
being contested in good faith by proper proceedings with adequate reserves under
GAAP.

          5.12 Subsidiaries.
               ------------ 

               Borrower does not own any stock, partnership interest or other
equity securities of any Person, except for Permitted Investments.

          5.13 Government Consents.
               ------------------- 

               Borrower and each Subsidiary has obtained all consents, approvals
and authorizations of, made all declarations or filings with, and given all
notices to, all governmental authorities that are necessary for the continued
operation of Borrower's business as currently conducted except where the failure
to obtain any such consent, approval or authorization, to make any such
declaration or filing, or to be given any such notice could not reasonably be
expected to have a Material Adverse Effect.

          5.14 Full Disclosure.
               --------------- 

               No representation, warranty or other statement made by Borrower
in any certificate or written statement furnished to Bank when taken as a whole
contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained in such certificates or
statements not misleading.

     6.   AFFIRMATIVE COVENANTS
          ---------------------

          Borrower covenants and agrees that, until payment in full of all
outstanding Obligations, and for so long as Bank may have any commitment to make
a Credit Extension hereunder, Borrower shall do all of the following:

          6.1  Good Standing.
               -------------
               
               Borrower shall maintain its and each of its Subsidiaries'
corporate existence and good standing in its jurisdiction of incorporation and
maintain qualification in each jurisdiction in which the failure to so qualify
could reasonably be expected to have a Material Adverse Effect. Borrower shall
maintain, and shall cause each of its Subsidiaries to maintain, to the extent
consistent with prudent management of Borrower's business, in force all
licenses, approvals and agreements, the loss of which could reasonably be expect
to have a Material Adverse Effect.

                                      12
<PAGE>
 
          6.2  Government Compliance.
               --------------------- 

               Borrower shall meet, and shall cause each Subsidiary to meet, the
minimum funding requirements of ERISA with respect to any employee benefit plans
subject to ERISA.  Borrower shall comply, and shall cause each Subsidiary to
comply, with all statutes, laws, ordinances and government rules and regulations
to which it is subject, noncompliance with which could reasonably be expected to
have a Material Adverse Effect or a material adverse effect on the Collateral or
the priority of Bank's Lien on the Collateral.

          6.3  Financial Statements, Reports, Certificates.
               -------------------------------------------

               Borrower shall deliver to Bank: (a) as soon as available, but in
any event within thirty (30) days after the end of each month, a company
prepared consolidated balance sheet and income statement covering Borrower's
consolidated operations during such period, in a form and certified by an
Officer of Borrower reasonably acceptable to Bank; (b) as soon as available, but
in any event within ninety (90) days after the end of Borrower's fiscal year,
audited consolidated financial statements of Borrower prepared in accordance
with GAAP, consistently applied, together with an opinion on such financial
statements of an independent certified public accounting firm reasonably
acceptable to Bank; (c) within five (5) days of filing, copies of all
statements, reports and notices sent or made available generally by Borrower to
its security holders or to any holders of Subordinated Debt and all reports on
Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission;
(d) promptly upon receipt of notice thereof, a report of any legal actions
pending or threatened against Borrower or any Subsidiary that could result in
damages or costs to Borrower or any Subsidiary of One Hundred Thousand Dollars
($100,000) or more; and (e) such budgets, sales projections, operating plans or
other financial information as Bank may reasonably request from time to time.

               Within thirty (30) days after the last day of each month,
Borrower shall deliver to Bank with the monthly financial statements a
Compliance Certificate signed by a Responsible Officer in substantially the form
of Exhibit C hereto.
   ---------        

          6.4  Inventory; Returns.
               ------------------ 

               Borrower shall keep all Inventory in good and marketable
condition, free from all material defects. Returns and allowances, if any, as
between Borrower and its account debtors shall be on the same basis and in
accordance with the usual customary practices of Borrower, as they exist at the
time of the execution and delivery of this Agreement. Borrower shall promptly
notify Bank of all returns and recoveries and of all disputes and claims, where
the return, recovery, dispute or claim involves more than Fifty Thousand Dollars
($50,000).

          6.5  Taxes.
               ----- 

               Borrower shall make, and shall cause each Subsidiary to make, due
and timely payment or deposit of all material federal, state, and local taxes,
assessments, or contributions required of it by law, and will execute and
deliver to Bank, on demand, appropriate certificates attesting to the payment or
deposit thereof; and Borrower will make, and will cause each Subsidiary to make,
timely payment or deposit of all material tax payments and withholding taxes
required of it by applicable laws, including, but not limited to, those laws
concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal
income taxes, and will, upon request, furnish Bank with proof satisfactory to
Bank indicating that Borrower or a Subsidiary has made such payments or
deposits; provided that Borrower or a Subsidiary need not make any payment if
the amount or validity of such payment is (i) contested in good faith by
appropriate proceedings, (ii) is reserved against (to the extent required by
GAAP) by Borrower and (iii) no lien other than a Permitted Lien results.

          6.6  Insurance.
               --------- 

               (a)  Borrower, at its expense, shall keep the Collateral insured
against loss or damage by fire, theft, explosion, sprinklers, and all other
hazards and risks, and in such amounts, as ordinarily insured against by other
owners in similar businesses conducted in the locations where Borrower's
business is conducted on the date hereof.  Borrower shall also maintain
insurance relating to Borrower's ownership and use of the Collateral in amounts
and of a type that are customary to businesses similar to Borrower's.

                                      13
<PAGE>
 
               (b)  All such policies of insurance shall be in such form, with
such companies, and in such amounts as are reasonably satisfactory to Bank. All
such policies of property insurance shall contain a lender's loss payable
endorsement, in a form satisfactory to Bank, showing Bank as an additional loss
payee thereof and all liability insurance policies shall show the Bank as an
additional insured, and shall specify that the insurer must give at least twenty
(20) days notice to Bank before canceling its policy for any reason. At Bank's
request, Borrower shall deliver to Bank certified copies of such policies of
insurance and evidence of the payments of all premiums therefor. All proceeds
payable under any such policy shall, at the option of Bank, be payable to Bank
to be applied on account of the Obligations. Bank acknowledges that Borrower's
current insurance policies in effect satisfy the requirements hereunder.

          6.7  Principal Depository.
               -------------------- 

               Borrower shall maintain its operating accounts with Bank.

          6.8  Tangible Net Worth.
               ------------------ 

               Borrower shall maintain, as of the last day of each calendar
month, a Tangible Net Worth of not less than Forty Million Dollars
($40,000,000).

          6.9  Remaining Months Liquidity.
               -------------------------- 

               Subject to Section 6.10, Borrower shall maintain, as of the last
day of each month, at least nine (9) months Remaining Months Liquidity.
"Remaining Months Liquidity" is defined as unrestricted cash and cash
equivalents divided by Cash Burn. "Cash Burn" means the average for the previous
three (3) months from the date of measurement of (i) unrestricted cash and cash
equivalents as of the last day of the immediately preceding month, minus (ii)
                                                                   -----
cash and cash equivalents as of the last day of the applicable month plus
                                                                     ----
(B) any decrease in short and long term debt (including subordinated debt) or in
capitalized lease obligations or in contributed equity minus (C) any increase in
                                                       -----                    
short or long term debt (including subordinated debt) or in capitalized lease
obligations or in contributed equity.

          6.10 Liquidity, Debt Service Coverage.
               -------------------------------- 

               Subject to the remainder of this section, Borrower shall
maintain, as of the last day of each calendar month, a Liquidity Ratio of at
least 2.0 to 1.0. Notwithstanding the foregoing, if Borrower attains three
consecutive months of Debt Service Coverage of not less than 2.0 to 1.0, then
the Liquidity Ratio and Remaining Months Liquidity will no longer be tested and
instead Borrower shall maintain, as of the last day of each calendar month, a
Debt Service Coverage of at least 2.0 to 1.0. For purposes of this Section,
"Liquidity Ratio" means as of any date for which it is tested, the ratio of (a)
unrestricted cash and cash equivalents to (b) the aggregate amount of
outstanding Equipment Advances.

          6.11 Further Assurances.
               ------------------ 

               At any time and from time to time Borrower shall execute and
deliver such further instruments and take such further action as may reasonably
be requested by Bank to effect the purposes of this Agreement.

     7.   NEGATIVE COVENANTS
          ------------------

          Borrower covenants and agrees that, so long as any Credit Extension
hereunder shall be available and until payment in full of the outstanding
Obligations, Borrower will not do any of the following:

                                      14
<PAGE>
 
          7.1  Dispositions.
               ------------ 

               Convey, sell, lease, transfer or otherwise dispose of
(collectively, a "Transfer"), or permit any of its Subsidiaries to Transfer, all
or any substantial part of its business or property, other than Transfers (i) of
inventory in the ordinary course of business, (ii) of non-exclusive licenses and
similar arrangements for the use of the property of Borrower or its Subsidiaries
in the ordinary course of business, (iii) Transfers of worn-out or obsolete
Equipment, (iv) of accounts receivable for collection purposes, (v) in
connection with Permitted Liens, Permitted Indebtedness or Permitted Investment,
(vi) in connection with the payment of any obligation of Borrower incurred in
good faith for which Borrower has received reasonably equivalent value, (vii) of
intellectual property made in good faith in exchange for reasonably equivalent
value other than a substantial portion in one or more transactions or series of
related transactions, (viii) Transfers made in good faith in the ordinary course
of business, and (ix) Transfers of other property made in good faith in exchange
for reasonably equivalent value in an aggregate amount not to exceed Ten Million
Dollars ($10,000,000); provided in any case that Borrower shall not transfer any
Equipment that Bank has financed without Bank's consent; provided further that
Bank will not unreasonably withhold its consent to any Transfer permitted under
clause (ix) hereof.

          7.2  Changes in Business, Ownership, Management or Business Locations.
               ----------------------------------------------------------------

               Engage in any business, or permit any of its Subsidiaries to
engage in any business, other than the businesses currently engaged in by
Borrower and any business substantially similar or related thereto (or
incidental thereto), or suffer a change of fifty percent (50%) or more in the
composition of Borrower's board of directors. Borrower will not, without at
least twenty (20) days prior written notification to Bank, relocate its chief
executive office or add any new offices or business locations in which Borrower
maintains assets with a fair market value of more than Seven Hundred Fifty
Thousand Dollars ($750,000).

          7.3  Mergers or Acquisitions.
               ----------------------- 

               Without Bank's consent, which will not be unreasonably withheld,
merge or consolidate, or permit any of its Subsidiaries to merge or consolidate,
with or into any other business organization, or acquire, or permit any of its
Subsidiaries to acquire, all or substantially all of the capital stock or
property of another Person other than Permitted Investments.

          7.4  Indebtedness.
               ------------ 

               Create, incur, assume or be or remain liable with respect to any
Indebtedness, or permit any Subsidiary so to do, other than Permitted
Indebtedness.

          7.5  Encumbrances.
               ------------ 

               Create, incur, assume or suffer to exist any Lien with respect to
any of its property, or assign or otherwise convey any right to receive income,
including the sale of any Accounts, or permit any of its Subsidiaries so to do,
except for Permitted Liens; provided Borrower may grant a security interest in
its intellectual property in transactions entered into in good faith and for
reasonably equivalent value, other than in a substantial portion of such
intellectual property granted in one or more transactions or series of related
transaction.

          7.6  Distributions.
               ------------- 

               Pay any dividends or make any other distribution or payment on
account of or in redemption, retirement or purchase of any capital stock.

          7.7  Investments.
               ----------- 

               Directly or indirectly acquire or own, or make any Investment in
or to any Person, or permit any of its Subsidiaries so to do, other than
Permitted Investments.

                                      15
<PAGE>
 
          7.8  Transactions with Affiliates.
               ---------------------------- 

               Without Bank's consent, which will not be unreasonably withheld,
directly or indirectly enter into or permit to exist any material transaction
with any Affiliate of Borrower except for transactions that are in the ordinary
course of Borrower's business, upon fair and reasonable terms that are no less
favorable to Borrower than would be obtained in an arm's length transaction with
a non-affiliated Person; provided that this Section 7.8 shall not prohibit
transactions approved by Bank, such approval not to be unreasonably withheld,
and transactions described in the Form S-1 filed in connection with Borrower's
initial public offering.

          7.9  Subordinated Debt.
               ----------------- 

               Make any payment in respect of any Subordinated Debt, or permit
any of its Subsidiaries to make any such payment, except in compliance with the
terms of such Subordinated Debt, or amend any provision contained in any
documentation relating to the Subordinated Debt which Bank determines undermines
the status of such debt as Subordinated Debt without Bank's prior written
consent.

          7.10 Inventory.
               --------- 

               Store the Inventory with a bailee, warehouseman, or similar party
unless Bank has received a pledge of any warehouse receipt covering such
Inventory.  Except for Inventory sold in the ordinary course of business and
except for such other locations as Bank may approve in writing, Borrower shall
keep the Inventory only at the location set forth in Section 10 hereof and such
other locations of which Borrower gives Bank prior written notice and as to
which Borrower signs and files a financing statement where needed to perfect
Bank's security interest.

          7.11 Compliance.
               ---------- 

               Become an "investment company" or a company controlled by an
"investment company," within the meaning of the Investment Company Act of 1940,
or become principally engaged in, or undertake as one of its important
activities, the business of extending credit for the purpose of purchasing or
carrying margin stock, or use the proceeds of any Advance for such purpose; fail
to meet the minimum funding requirements of ERISA, permit a Reportable Event or
Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the
Federal Fair Labor Standards Act or violate any other law or regulation, which
violation could have a Material Adverse Effect or a material adverse effect on
the Collateral or the priority of Bank's Lien on the Collateral, or permit any
of its Subsidiaries to do any of the foregoing.

     8.   EVENTS OF DEFAULT
          -----------------

          Any one or more of the following events shall constitute an Event of
Default by Borrower under this Agreement:

          8.1  Payment Default.
               --------------- 

               If Borrower fails to pay, when due, any of the Obligations;

                                      16
<PAGE>
 
          8.2  Covenant Default.
               ---------------- 

               (a)  If Borrower fails to perform any obligation under Sections
6.8, 6.9 or 6.10 or violates any of the covenants contained in Article 7 of this
Agreement; notwithstanding the foregoing, if Borrower secures the Obligations
with cash in which Bank has had a perfected security interest for not less than
ninety (90) days on terms reasonably satisfactory to Bank or Bank otherwise
agrees, then, for so long as the Obligations remain cash-secured, Borrower's
failure to comply with any of Sections 6.8, 6.9 or 6.10 shall not be an Event of
Default (provided that no Credit Extensions will be required to be made during
such period of noncompliance unless those Cash Extensions are also secured by
cash on terms reasonably satisfactory to Bank); or

               (b)  If Borrower fails or neglects to perform, keep, or observe
any other material term, provision, condition, covenant, or agreement contained
in this Agreement, in any of the Loan Documents, or in any other present or
future agreement between Borrower and Bank and as to any default under such
other term, provision, condition, covenant or agreement that can be cured, has
failed to cure such default within twenty (20) days after the earlier of the
date that Borrower knew or reasonably should have known of the occurrence
thereof or the date that Bank gives Borrower notice of such default; provided,
however, that if the default cannot by its nature be cured within the twenty
(20) day period or cannot after diligent attempts by Borrower be cured within
such twenty (20) day period, and such default is likely to be cured within a
reasonable time, then Borrower shall have an additional reasonable period (which
shall not in any case exceed forty-five (45) days) to attempt to cure such
default, and within such reasonable time period the failure to have cured such
default shall not be deemed an Event of Default (provided that no Credit
Extensions will be required to be made during such cure period);

          8.3  Material Adverse Change.
               ----------------------- 

               If there (i) occurs a material adverse change in the business,
operations, or condition (financial or otherwise) of Borrower or (ii) is a
material impairment of the prospect of repayment of any portion of the
Obligations or (iii) is a material impairment of the value or priority of Bank's
security interests in the Collateral, and Bank gives notice of any of the
foregoing to Borrower;

          8.4  Attachment.
               ---------- 

               If any material portion of Borrower's assets is attached, seized,
subjected to a writ or distress warrant, or is levied upon, or comes into the
possession of any trustee, receiver or person acting in a similar capacity and
such attachment, seizure, writ or distress warrant or levy has not been removed,
discharged or rescinded within twenty (20) days, or if Borrower is enjoined,
restrained, or in any way prevented by court order from continuing to conduct
all or any material part of its business affairs, or if a judgment or other
claim becomes a lien or encumbrance upon any material portion of Borrower's
assets, or if a notice of lien, levy, or assessment is filed of record with
respect to any of Borrower's assets by the United States Government, or any
department, agency, or instrumentality thereof, or by any state, county,
municipal, or governmental agency, and the same is not paid within twenty (20)
days after Borrower receives notice thereof, provided that none of the foregoing
shall constitute an Event of Default where such action or event is stayed or an
adequate bond has been posted pending a good faith contest by Borrower (provided
that no Credit Extensions will be required to be made during such cure period);

          8.5  Insolvency.
               ---------- 

               If Borrower becomes insolvent, or if an Insolvency Proceeding is
commenced by Borrower, or if an Insolvency Proceeding is commenced against
Borrower and is not dismissed or stayed within forty-five (45) days (provided
that no Credit Extensions will be made prior to the dismissal of such Insolvency
Proceeding);

          6.6  Other Agreements.
               ---------------- 

               If there is a default in any agreement to which Borrower is a
party with a third party or parties resulting in a right by such third party or
parties, whether or not exercised, to accelerate the maturity of any
Indebtedness in an amount in excess of Five Hundred Thousand Dollars ($500,000)
or that could reasonably be expected to have a Material Adverse Effect;

                                      17
<PAGE>
 
          8.7  Subordinated Debt.
               ----------------- 

               If Borrower makes any payment on account of Subordinated Debt, in
violation of any subordination agreement entered into with Bank or the terms of
any subordination provisions contained in any document or instrument evidencing
such Subordinated Debt;

          8.8  Judgments.
               --------- 

               If a judgment or judgments for the payment of money in an amount,
individually or in the aggregate, of at least Two Hundred Thousand Dollars
($200,000) shall be rendered against Borrower and shall remain unsatisfied and
unstayed for a period of thirty (30) days (provided that no Credit Extensions
will be made prior to the satisfaction or stay of such judgment); or

          8.9  Misrepresentations.
               ------------------ 

               If any material misrepresentation or material misstatement exists
now or hereafter in any warranty or representation set forth herein or in any
certificate or writing delivered to Bank by Borrower or any Person acting on
Borrower's behalf pursuant to this Agreement or to induce Bank to enter into
this Agreement or any other Loan Document.

     9.   BANK'S RIGHTS AND REMEDIES
          --------------------------

          9.1  Rights and Remedies.
               ------------------- 

               Upon the occurrence and during the continuance of an Event of
Default, Bank may, at its election, without notice of its election and without
demand, do any one or more of the following (but only if permitted by the Code)
all of which are authorized by Borrower:

               (a)  Declare all Obligations, whether evidenced by this
Agreement, by any of the other Loan Documents, or otherwise, immediately due and
payable (provided that upon the occurrence of an Event of Default described in
Section 8.5 all Obligations shall become immediately due and payable without any
action by Bank);

               (b)  Cease advancing money or extending credit to or for the
benefit of Borrower under this Agreement or under any other agreement between
Borrower and Bank;

               (c)  Demand that Borrower (i) deposit cash with Bank in an amount
equal to the amount of any Letters of Credit remaining undrawn, as collateral
security for the repayment of any future drawings under such Letters of Credit,
and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in
advance all Letters of Credit fees scheduled to be paid or payable over the
remaining term of the Letters of Credit;

               (d)  Liquidate any Exchange Contracts not yet settled and demand
that Borrower immediately deposit cash with Bank in an amount sufficient to
cover any losses incurred by Bank due to liquidation of the Exchange Contracts
at the then prevailing market price;

               (e)  Settle or adjust disputes and claims directly with account
debtors for amounts, upon terms and in whatever order that Bank reasonably
considers advisable;

               (f)  Without notice to or demand upon Borrower, make such
payments and do such acts as Bank considers necessary or reasonable to protect
its security interest in the Collateral. Borrower agrees to assemble the
Collateral if Bank so requires, and to make the Collateral available to Bank as
Bank may designate. Borrower authorizes Bank to enter the premises where the
Collateral is located, to take and maintain possession of the Collateral, or any
part of it, and to pay, purchase, contest, or compromise any encumbrance,
charge, or lien which in Bank's determination appears to be prior or superior to
its security interest and to pay all expenses incurred in connection therewith.
With respect to any of Borrower's premises, Borrower hereby grants Bank a
license to enter such premises and to occupy the same, without charge, in order
to exercise any of Bank's rights or remedies provided herein, at law, in equity,
or otherwise;

               (g)  Set off and apply to the Obligations any and all (i)
balances and deposits of Borrower held by Bank, or (ii) indebtedness at any time
owing to or for the credit or the account of 

                                      18
<PAGE>
 
Borrower held by Bank;

               (h)  Ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, advertise for sale, and sell (in the manner provided for
herein) the Collateral;

               (i)  Sell the Collateral in accordance with the Code, by way of
one or more contracts or transactions, for cash or on terms, in such manner and
at such places (including Borrower's premises) as Bank determines is
commercially reasonable, and apply the proceeds thereof to the Obligations in
whatever manner or order Bank deems appropriate;

               (j)  Bank may credit bid in accordance with the Code; and

               (k)  Any deficiency that exists after disposition of the
Collateral as provided above will be paid immediately by Borrower.

          9.2  Power of Attorney.
               ----------------- 

               Effective only upon the occurrence and during the continuance of
an Event of Default, Borrower hereby irrevocably appoints Bank (and any of
Bank's designated officers, or employees) as Borrower's true and lawful attorney
to: (a) send requests for verification of Accounts or notify account debtors of
Bank's security interest in the Accounts; (b) endorse Borrower's name on any
checks or other forms of payment or security that may come into Bank's
possession; (c) sign Borrower's name on any invoice or bill of lading relating
to any Account, drafts against account debtors, schedules and assignments of
Accounts, verifications of Accounts, and notices to account debtors; (d) make,
settle, and adjust all claims under and decisions with respect to Borrower's
policies of insurance; (e) settle and adjust disputes and claims respecting the
accounts directly with account debtors, for amounts and upon terms which Bank
determines to be reasonable; and (f) to file, in its sole discretion, one or
more financing or continuation statements and amendments thereto, relative to
any of the Collateral without the signature of Borrower where permitted by law;
and provided Bank may exercise such power of attorney to sign the name of
Borrower on any of the documents described in Section 4.2 regardless of whether
an Event of Default has occurred. The appointment of Bank as Borrower's attorney
in fact, and each and every one of Bank's rights and powers, being coupled with
an interest, is irrevocable until all of the Obligations have been fully repaid
and performed and Bank's obligation to provide advances hereunder is terminated.

          9.3  Accounts Collection.
               ------------------- 

               At any time from the date of this Agreement, Bank may notify any
Person owing funds to Borrower of Bank's security interest in such funds and
verify the amount of such Account.  If requested or required by Bank after the
occurrence of an Event of Default, Borrower shall collect all amounts owing to
Borrower for Bank, receive in trust all payments as Bank's trustee, and, if
requested or required by Bank after the occurrence of an Event of Default,
immediately deliver such payments to Bank in their original form as received
from the account debtor, with proper endorsements for deposit.

          9.4  Bank Expenses.
               ------------- 

               If Borrower fails to pay any amounts or furnish any required
proof of payment due to third persons or entities, as required under the terms
of this Agreement, then Bank may do any or all of the following: (a) make
payment of the same or any part thereof; or (b) obtain and maintain insurance
policies of the type discussed in Section 6.6 of this Agreement, and take any
action with respect to such policies as Bank deems prudent. Any amounts so paid
or deposited by Bank shall constitute Bank Expenses, shall be immediately due
and payable, and shall bear interest at the then applicable rate hereinabove
provided, and shall be secured by the Collateral. Any payments made by Bank
shall not constitute an agreement by Bank to make similar payments in the future
or a waiver by Bank of any Event of Default under this Agreement.

                                      19
<PAGE>
 
          9.5  Bank's Liability for Collateral.
               ------------------------------- 

               So long as Bank complies with reasonable banking practices, Bank
shall not in any way or manner be liable or responsible for: (a) the safekeeping
of the Collateral; (b) any loss or damage thereto occurring or arising in any
manner or fashion from any cause; (c) any diminution in the value thereof; or
(d) any act or default of any carrier, warehouseman, bailee, forwarding agency,
or other person whomsoever. All risk of loss, damage or destruction of the
Collateral shall be borne by Borrower.

          9.6  Remedies Cumulative.
               ------------------- 

               Bank's rights and remedies under this Agreement, the Loan
Documents, and all other agreements shall be cumulative. Bank shall have all
other rights and remedies not expressly set forth herein as provided under the
Code, by law, or in equity. No exercise by Bank of one right or remedy shall be
deemed an election, and no waiver by Bank of any Event of Default on Borrower's
part shall be deemed a continuing waiver. No delay by Bank shall constitute a
waiver, election, or acquiescence by it. No waiver by Bank shall be effective
unless made in a written document signed on behalf of Bank and then shall be
effective only in the specific instance and for the specific purpose for which
it was given.

          9.7  Demand; Protest.
               --------------- 

               Borrower waives demand, protest, notice of protest, notice of 
dishonor, notice of payment, notice of any release, compromise, settlement, 
extension, or renewal of account of accounts, documents, instruments, chattel 
paper, and guarantees at any time held by Bank on which Borrower may in any way 
be liable.

     10.  NOTICES
          -------

          Unless otherwise provided in this Agreement, all notices or demands by
any party relating to this Agreement or any other agreement entered into in
connection herewith shall be in writing and (except for financial statements and
other informational documents which may be sent by first-class mail, postage
prepaid) shall be personally delivered or sent by a recognized overnight
delivery service, by certified mail, postage prepaid, return receipt requested,
or by telefacsimile to Borrower or to Bank, as the case may be, at its addresses
set forth below:

     If to Borrower:     At Home Corporation
                         425 Broadway Street
                         Redwood City, CA 94063
                         Attn:  Kenneth Goldman
                         FAX:  (415) 482-4605

     cc:                 At Home Corporation
                         425 Broadway Street
                         Redwood City, CA  94063
                         Attn:  David Pine, Esq.
                         Fax:  (415) 482-4605

     If to Bank:         Silicon Valley Bank
                         3003 Tasman Drive
                         Santa Clara, CA 95054
                         Attn:  Tim Walsh
                         FAX:  (408) 748-9478

     The parties hereto may change the address at which they are to receive
notices hereunder, by notice in writing in the foregoing manner given to the
other.

                                      20
<PAGE>
 
     11.  CHOICE OF LAW AND VENUE
          -----------------------

          The Loan Documents shall be governed by, and construed in accordance
with, the internal laws of the State of California, without regard to principles
of conflicts of law.  Each of Borrower and Bank hereby submits to the exclusive
jurisdiction of the state and Federal courts located in the County of Santa
Clara, State of California.  BORROWER AND BANK EACH HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED
THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL
OTHER COMMON LAW OR STATUTORY CLAIMS.  EACH PARTY RECOGNIZES AND AGREES THAT THE
FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS
AGREEMENT.  EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER
WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

     12.  GENERAL PROVISIONS
          ------------------

          12.1 Successors and Assigns.
               ---------------------- 

               This Agreement shall bind and inure to the benefit of the
respective successors and permitted assigns of each of the parties; provided,
                                                                    --------  
however, that neither this Agreement nor any rights hereunder may be assigned by
-------
Borrower without Bank's prior written consent, which consent may be granted or
withheld in Bank's sole discretion. Bank shall have the right without the
consent of or notice to Borrower to sell, assign, transfer, negotiate, or grant
participations in all or any part of, or any interest in, Bank's obligations,
rights and benefits hereunder.

          12.2 Indemnification.
               --------------- 

               Borrower shall indemnify, defend, protect and hold harmless Bank
and its officers, employees, and agents against: (a) all obligations, demands,
claims, and liabilities claimed or asserted by any other party in connection
with the transactions contemplated by the Loan Documents; and (b) all losses or
reasonable Bank Expenses in any way suffered, incurred, or paid by Bank as a
result of or in any way arising out of transactions between Bank and Borrower
under the Loan Documents (including without limitation reasonable attorneys fees
and expenses), except for losses caused by Bank's gross negligence or willful
misconduct. Bank agrees to give Borrower notice of any matters for which Bank
proposes to seek indemnification hereunder and to advise Borrower of the
progress of any such matters.

          12.3 Time of Essence.
               --------------- 

               Time is of the essence for the performance of all obligations set
forth in this Agreement.

          12.4 Severability of Provisions.
               -------------------------- 

               Each provision of this Agreement shall be severable from every
other provision of this Agreement for the purpose of determining the legal
enforceability of any specific provision.

          12.5 Amendments in Writing, Integration.
               ---------------------------------- 

               This Agreement cannot be amended or terminated except by a
writing signed by Borrower and Bank. All prior agreements, understandings,
representations, warranties, and negotiations between the parties hereto with
respect to the subject matter of this Agreement, if any, are merged into this
Agreement and the Loan Documents.

          12.6 Counterparts.
               ------------ 

               This Agreement may be executed in any number of counterparts and
by different parties on separate counterparts, each of which, when executed and
delivered, shall be deemed to be an original, and all of which, when taken
together, shall constitute but one and the same Agreement.

                                      21
<PAGE>
 
          12.7 Survival.
               -------- 

               All covenants, representations and warranties made in this
Agreement shall continue in full force and effect so long as any Obligations
remain outstanding. The obligations of Borrower to indemnify Bank with respect
to the expenses, damages, losses, costs and liabilities described in Section
12.2 shall survive until all applicable statute of limitations periods with
respect to actions that may be brought against Bank have run.

          12.8 Confidentiality.
               --------------- 

               In handling any confidential information, Bank shall exercise the
same degree of care that it exercises with respect to its own proprietary
information of the same types to maintain the confidentiality of any non-public
information thereby received or received pursuant to this Agreement, except that
disclosure of such information may be made (i) to the subsidiaries or affiliates
of Bank in connection with their present or prospective business relations with
Borrower, (ii) to prospective transferees or purchasers of any interest in the
Loans, provided that they have entered into a comparable confidentiality
agreement in favor of Borrower and have delivered a copy to Borrower, (iii) as
required by law, regulations, rule or order, subpoena, judicial order or similar
order, (iv) as may be required in connection with the examination, audit or
similar investigation of Bank and (v) as Bank may deem appropriate in connection
with the exercise of any remedies hereunder. Confidential information hereunder
shall not include information that either: (a) is in the public domain or in the
knowledge or possession of Bank when disclosed to Bank, or becomes part of the
public domain after disclosure to Bank through no fault of Bank; or (b) is
disclosed to Bank by a third party, provided Bank does not have actual knowledge
that such third party is prohibited from disclosing such information. Bank
acknowledges that Borrower's securities are publicly traded, and the information
provided by Borrower may constitute material non-public information.

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

                                    AT HOME CORPORATION
 
                                    By:  /s/ Robert A. Lerner
                                       _________________________________
                                    Title:  Corporate Controller
                                          ______________________________ 


                                    SILICON VALLEY BANK

                                    By:  /s/ Timothy Walsh
                                       _________________________________
                                    Title:  Vice President
                                          ______________________________ 

                                      22
<PAGE>
 
                                   EXHIBIT A
                                   ---------

     The Collateral shall consist of all right, title and interest of Borrower
in and to the following:

     (a)  All goods and equipment now owned or hereafter acquired, including,
without limitation, all machinery, fixtures, vehicles (including motor vehicles
and trailers), and any interest in any of the foregoing, and all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located;

     (b)  All inventory, now owned or hereafter acquired, including, without
limitation, all merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products including such
inventory as is temporarily out of Borrower's custody or possession or in
transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the
foregoing and any documents of title representing any of the above, and
Borrower's Books relating to any of the foregoing;

     (c)  All contract rights and general intangibles now owned or hereafter
acquired, including, without limitation, goodwill, franchise agreements,
blueprints, drawings, purchase orders, customer lists, route lists, claims,
literature, reports, catalogs, income tax refunds, payments of insurance and
rights to payment of any kind;

     (d)  All now existing and hereafter arising accounts, rights to receive
payments, royalties, license rights and all other forms of obligations owing to
Borrower arising out of the sale or lease of goods, the licensing of technology
or the rendering of services by Borrower, whether or not earned by performance,
and any and all credit insurance, guaranties, and other security therefor, as
well as all merchandise returned to or reclaimed by Borrower and Borrower's
Books relating to any of the foregoing;

     (e)  All documents, cash, deposit accounts, securities, securities
entitlements, securities accounts, letters of credit, certificates of deposit,
instruments and chattel paper now owned or hereafter acquired and Borrower's
Books relating to the foregoing; and

     (f)  Any and all claims, rights and interests in any of the above and all
substitutions for, additions and accessions to and proceeds thereof.

     Notwithstanding the foregoing, the Collateral shall not be deemed to
include any copyright rights, copyright applications, copyright registrations
and like protections in each work of authorship and derivative work thereof,
whether published or unpublished, now owned or hereafter acquired; any patents,
trademarks, servicemarks and applications therefor; any trade secret rights,
including any rights to unpatented inventions, know-how, operating manuals,
license rights and agreements and confidential information, now owned or
hereafter acquired; or any claims for damages by way of any past, present and
future infringement of any of the foregoing.

     The Collateral shall not include Equipment that Borrower does not own,
which Equipment Borrower leases from third parties. Notwithstanding the
foregoing, the term "Collateral" shall not include any general intangibles or
contracts of Borrower (whether owned or held as licensee or lessee, or
otherwise) to the extent that (i) such general intangibles or contracts are not
assignable or capable of being encumbered as a matter of law or under the terms
of the license, lease or other agreement applicable thereto (but solely to the
extent that such restriction shall be enforceable under applicable law) without
the consent of the licensor or lessor thereof or other applicable party thereto
and (ii) such consent has not been obtained:  provided, however, that the
                                              --------  -------          
foregoing grant of security interest shall extend to, and the term "Collateral"
shall include, (A) any general intangible or contract which is an Account or a
proceed of, or otherwise related to the enforcement or collection of, any
Account or goods which are the subject of any Account, and (B) any and all
proceeds of any general intangibles or contracts which are otherwise excluded to
the extent that the assignment or encumbrance of such proceeds is not so
restricted, and (C) upon obtaining the consent of any such licensor, lessor or
other applicable party with respect to any such otherwise excluded general
intangibles or contracts, such general intangibles or contracts as well as any
and all proceeds thereof that might theretofore have been excluded from such
grant of a security interest and the term "Collateral".

                                      A-1
<PAGE>
 
                                   EXHIBIT B
                                   ---------

                  LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM

             DEADLINE FOR SAME DAY PROCESSING IS 3:00 P.M., P.S.T.


TO:  CENTRAL CLIENT SERVICE DIVISION                   DATE: ___________________

FAX#:  (408) 496-2426                                  TIME:____________________

--------------------------------------------------------------------------------
FROM:   At Home Corporation
     ---------------------------------------------------------------------------
                            CLIENT NAME (BORROWER)

REQUESTED BY:___________________________________________________________________
                           AUTHORIZED SIGNER'S NAME

AUTHORIZED SIGNATURE:___________________________________________________________

PHONE NUMBER:___________________________________________________________________

FROM ACCOUNT # ____________________   TO ACCOUNT # _____________________________


REQUESTED TRANSACTION TYPE                   REQUEST DOLLAR AMOUNT
--------------------------                   ---------------------

PRINCIPAL INCREASE (ADVANCE)                 $__________________________________
PRINCIPAL PAYMENT (ONLY)                     $__________________________________
INTEREST PAYMENT (ONLY)                      $__________________________________
PRINCIPAL AND INTEREST (PAYMENT)             $__________________________________

OTHER INSTRUCTIONS:_____________________________________________________________
                                                                               
________________________________________________________________________________
All representations and warranties of Borrower stated in the Loan and Security
Agreement are true, correct and complete in all material respects as of the date
of the telephone request for and Credit Extension confirmed by this Borrowing
Certificate; provided, however, that those representations and warranties
expressly referring to another date shall be true, correct and complete in all
material respects as of such date.


--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                                 BANK USE ONLY

TELEPHONE REQUEST:
----------------- 

The following person is authorized to request the loan payment transfer/loan
advance on the advance designated account and is known to me.

_________________________________       _______________________________________
          Authorized Requester                         Phone #

_________________________________       ________________________________________
          Received By (Bank)                           Phone #


                        _______________________________
                          Authorized Signature (Bank)

--------------------------------------------------------------------------------

                                      B-1
<PAGE>
 
                                   EXHIBIT C
                            COMPLIANCE CERTIFICATE

TO:    SILICON VALLEY BANK


FROM:  AT HOME CORPORATION

     The undersigned authorized officer of At Home Corporation hereby certifies
that in accordance with the terms and conditions of the Loan and Security
Agreement between Borrower and Bank (the "Agreement"), (i) Borrower is in
complete compliance for the period ending _______________ with all required
covenants except as noted below and (ii) all representations and warranties of
Borrower stated in the Agreement are true and correct in all material respects
as of the date hereof.  Attached herewith are the required documents supporting
the above certification.  The Officer further certifies that these are prepared
in accordance with Generally Accepted Accounting Principles (GAAP) and are
consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.  The Officer expressly acknowledges that no
borrowings may be requested by Borrower at any time or date of determination
that Borrower is not in compliance with any of the terms of the Agreement, and
that such compliance is determined not just at the date this certificate is
delivered.

 PLEASE INDICATE COMPLIANCE STATUS BY CIRCLING YES/NO UNDER "COMPLIES" COLUMN.

<TABLE>
<CAPTION>
     REPORTING COVENANT              REQUIRED                              COMPLIES
     ------------------              --------                              ---------
     <S>                             <C>                                   <C> 
     Monthly financial statements    Monthly within 30 days Yes            No
     Annual (CPA Audited)            FYE within 90 days                    Yes    No
     10-Q, 10-K and 8-K              Within 5 days after filing with SEC   Yes    No
</TABLE> 

<TABLE> 
<CAPTION> 
     FINANCIAL COVENANT              REQUIRED               ACTUAL         COMPLIES
     ------------------              --------               ------         --------
     <S>                             <C>                    <C>            <C> 
     Maintain on a Monthly Basis:       
      Minimum Liquidity Ratio        2.0:1.0                _____:1.0      Yes    No
      Minimum Tangible Net Worth     $40,000,000            $_______       Yes    No
      Minimum Debt Service*          2.0:1.0                _____:1.0      Yes    No
      Remaining Months Liquidity     9 Months               _________      Yes    No
</TABLE>

* Replaces Liquidity Ratio and Remaining Months Liquidity upon achievement of 3
consecutive months of Debt Service Coverage of at least 2.0 to 1.0.

                                                --------------------------------
COMMENTS REGARDING EXCEPTIONS: See Attached.              BANK USE ONLY

Sincerely,                                       Received by:__________________
                                                            AUTHORIZED SIGNER
AT HOME CORPORATION 

By:                                              Date:

SIGNATURE                                        Verified:______________________
                                                            AUTHORIZED SIGNER

___________________________________________
Title                                            Date:
      
___________________________________________      Compliance Status:  Yes     No
Date  
   
                                               ---------------------------------
      
                                      C-1
<PAGE>
 
                    DISBURSEMENT REQUEST AND AUTHORIZATION


Borrower:  At Home Corporation               Bank:  Silicon Valley Bank

--------------------------------------------------------------------------------

LOAN TYPE.  This is a Variable Rate, Equipment Line of Credit of a principal
amount up to $8,000,000.

PRIMARY PURPOSE OF LOAN.  The primary purpose of this loan is for business.

SPECIFIC PURPOSE.  The specific purpose of this loan is:  purchase of Equipment
or Tenant Improvements.

DISBURSEMENT INSTRUCTIONS.  Borrower understands that no loan proceeds will be
disbursed until all of Bank's conditions for making the loan have been
satisfied.  Please disburse the loan proceeds as follows:

<TABLE> 
<CAPTION>
                                                            Equipment Line
                                                            --------------
     <S>                                                    <C>
     Amount paid to Borrower directly:                         $        0
     Undisbursed Funds                                         $8,000,000
 
     Principal                                                 $8,000,000

CHARGES PAID IN CASH.  Borrower has paid or will pay in cash as agreed the
following charges:

     Charges Paid in Cash: (only for initial disbursement)
            $10,000        Loan Fee

     Other Charges Paid in Cash:
            $   100        UCC Search Fees
            $   100        UCC Filing Fees
            $ 5,000        Outside Counsel Fees and Expenses (Estimate)

     Total Charges Paid in Cash                                $  15,200
</TABLE> 

AUTOMATIC PAYMENTS.  Borrower hereby authorizes Bank automatically to deduct
from Borrower's account numbered __________ the amount of any loan payment.  If
the funds in the account are insufficient to cover any payment, Bank shall not
be obligated to advance funds to cover the payment.

FINANCIAL CONDITION.  BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND
WARRANTS TO BANK THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND
THAT THERE HAS BEEN NO ADVERSE CHANGE IN BORROWER'S FINANCIAL CONDITION AS
DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO BANK.  THIS
AUTHORIZATION IS DATED AS OF September 30, 1997.

BORROWER:

AT HOME CORPORATION

  /s/ Robert A. Lerner
__________________________________
Authorized Officer

--------------------------------------------------------------------------------
<PAGE>
 
                        AGREEMENT TO PROVIDE INSURANCE


GRANTOR:  At Home Corporation                    BANK:  Silicon Valley Bank

--------------------------------------------------------------------------------

     INSURANCE REQUIREMENTS.  At Home Corporation ("Grantor") understands that
insurance coverage is required in connection with the extending of a loan or the
providing of other financial accommodations to Grantor by Bank.  These
requirements are set forth in the Loan Documents.  The following minimum
insurance coverages must be provided on the following described collateral (the
"Collateral"):

               Collateral:    All Inventory, Equipment and Fixtures.
               Type:          All risks, including fire, theft and liability.
               Amount:        Full insurable value.
               Basis:         Replacement value.
               Endorsements:  Loss payable clause to Bank with stipulation that
                              coverage will not be cancelled or diminished
                              without a minimum of twenty (20) days' prior
                              written notice to Bank.

     INSURANCE COMPANY.  Grantor may obtain insurance from any insurance company
Grantor may choose that is reasonably acceptable to Bank.  Grantor understands
that credit may not be denied solely because insurance was not purchased through
Bank.

     FAILURE TO PROVIDE INSURANCE.  Grantor agrees to deliver to Bank, on or
before closing, evidence of the required insurance as provided above, with an
effective date of September 24, 1997, or earlier. Grantor acknowledges and
agrees that if Grantor fails to provide any required insurance or fails to
continue such insurance in force, Bank may do so at Grantor's expense as
provided in the Loan and Security Agreement. The cost of such insurance, at the
option of Bank, shall be payable on demand or shall be added to the indebtedness
as provided in the security document. GRANTOR ACKNOWLEDGES THAT IF BANK SO
PURCHASES ANY SUCH INSURANCE, THE INSURANCE WILL PROVIDE LIMITED PROTECTION
AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO THE BALANCE OF THE LOAN;
HOWEVER, GRANTOR'S EQUITY IN THE COLLATERAL MAY NOT BE INSURED. IN ADDITION, THE
INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE
INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL
RESPONSIBILITY LAWS.

     AUTHORIZATION.  For purposes of insurance coverage on the Collateral,
Grantor authorizes Bank to provide to any person (including any insurance agent
or company) all information Bank deems appropriate, whether regarding the
Collateral, the loan or other financial accommodations, or both.

     GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO
PROVIDE INSURANCE AND AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED SEPTEMBER
24, 1997.

GRANTOR:

AT HOME CORPORATION


x  /s/ Robert A. Lerner
 ____________________________
 Authorized Officer

================================================================================

                               FOR BANK USE ONLY
                            INSURANCE VERIFICATION

DATE: ___________________                                   PHONE: ____________
AGENT'S NAME: _________________________________________________________________
INSURANCE COMPANY: ____________________________________________________________
POLICY NUMBER: ________________________________________________________________
EFFECTIVE DATES: ______________________________________________________________
COMMENTS: _____________________________________________________________________

================================================================================

<PAGE>
 
                        CORPORATE RESOLUTIONS TO BORROW

================================================================================

BORROWER:        AT HOME CORPORATION

================================================================================

     I, the undersigned Secretary or Assistant Secretary of At Home Corporation
(the "Corporation"), HEREBY CERTIFY that the Corporation is organized and
existing under and by virtue of the laws of the State of __________.

     I FURTHER CERTIFY that attached hereto as Attachments 1 and 2 are true and
complete copies of the Certificate of Incorporation and Bylaws of the
Corporation, each of which is in full force and effect on the date hereof.

     I FURTHER CERTIFY that at a meeting of the Directors of the Corporation (or
by other duly authorized corporate action in lieu of a meeting), duly called and
held, at which a quorum was present and voting, the following resolutions were
adopted:

     BE IT RESOLVED, that ANY ONE (1) of the following named officers,
employees, or agents of this Corporation, whose actual signatures are shown
below:

  NAMES                       POSITIONS                ACTUAL SIGNATURES
  ----------------------------------------------------------------------

____________________     _____________________    ______________________________

____________________     _____________________    ______________________________

____________________     _____________________    ______________________________

____________________     _____________________    ______________________________

____________________     _____________________    ______________________________


acting for an on behalf of this Corporation and as its act and deed be, and they
hereby are, authorized and empowered:

     BORROW MONEY.  To borrow from time to time from Silicon Valley Bank
("Bank"), on such terms as may be agreed upon between the officers, employees,
or agents and Bank, such sum or sums of money as in their judgment should be
borrowed, without limitation, including such sums as are specified in that
certain Loan and Security Agreement dated as of September 24, 1997 (the "Loan
Agreement").

     EXECUTE NOTES.  To execute and deliver to Bank the promissory note or notes
of the Corporation, on Bank's forms, at such rates of interest and on such terms
as may be agreed upon, evidencing the sums of money so borrowed or any
indebtedness of the Corporation to Bank, and also to execute and deliver to Bank
one or more renewals, extensions, modifications, refinancings, consolidations,
or substitutions for one or more of the notes, or any portion of the notes.

     GRANT SECURITY.  To grant a security interest to Bank in the Collateral
described in the Loan Agreement, which security interest shall secure all of the
Corporation's Obligations, as described in the Loan Agreement.

     NEGOTIATE ITEMS.  To draw, endorse, and discount with Bank all drafts,
trade acceptances, promissory notes, or other evidences of indebtedness payable
to or belonging to the Corporation or in which the Corporation may have an
interest, and either to receive cash for the same or to cause such proceeds to
be credited to the account of the Corporation with Bank, or to cause such other
disposition of the proceeds derived therefrom as they may deem advisable.

     LETTERS OF CREDIT; FOREIGN EXCHANGE.  To execute letters of credit
applications, foreign exchange agreements and other related documents pertaining
to Bank's issuance of letters of credit and foreign exchange contracts.

     FURTHER ACTS.  In the case of lines of credit, to designate additional or
alternate individuals as being authorized to request advances thereunder, and in
all cases, to do and perform such other acts and things, to pay any and all fees
and costs, and to execute and deliver such other documents and agreements as
they may in their discretion deem 

                                       1
<PAGE>
 
reasonably necessary or proper in order to carry into effect the provisions of
these Resolutions.

     BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
resolutions and performed prior to the passage of these resolutions are hereby
ratified and approved, that these Resolutions shall remain in full force and
effect and Bank may rely on these Resolutions until written notice of their
revocation shall have been delivered to and received by Bank. Any such notice
shall not affect any of the Corporation's agreements or commitments in effect at
the time notice is given.

     I FURTHER CERTIFY that the officers, employees, and agents named above are
duly elected, appointed, or employed by or for the Corporation, as the case may
be, and occupy the positions set forth opposite their respective names; that the
foregoing Resolutions now stand of record on the books of the Corporation; and
that the Resolutions are in full force and effect and have not been modified or
revoked in any manner whatsoever.

     IN WITNESS WHEREOF, I have hereunto set my hand on _______________, 19___
and attest that the signatures set opposite the names listed above are their
genuine signatures.


                                        CERTIFIED TO AND ATTESTED BY:


                                        X_______________________________________

================================================================================

                                       2