Exhibit 10.18
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Understanding Agreement between Carso Global Telecom (the "Lender") and
Prodigy Communications Corporation (the "Borrower")
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Terms and conditions regarding the loans that Carso Global Telecom provide to
Prodigy Communications Corporation:
Maximum Amount: U.S. $35,600,000.00
Interest Rate: To be negotiated case by case between the Lender and
the Borrower in a range between Libor + 1 and Libor +
5; payable monthly, based in a 360 day year, in
arrears.
Maturity: December 31, 1999
Terms of Borrowing: Committed line of credit until Maturity.
All advances shall be due in ninety (90) days or such
lesser period as elected by borrower.
Borrower may roll over advances into new advances at
its election.
Borrower may borrow, repay and reborrow in increments
of U.S. 1,000,000.00.
Use of proceeds: General working capital needs of Borrower and
affiliates.
Reporting Requirements: (i) Audited financial statements within one hundred
twenty days after end of fiscal year.
(ii) Unaudited quarterly financial statements for
first three quarters of fiscal year within sixty days
after end of fiscal quarter.
(iii) December 31, 1997 annual financial statements.
PRODIGY COMMUNICATIONS CORPORATION
By: /s/ Xxxxx Xxxxxxx
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Name: Xxxxx Xxxxxxx
Title: Chairman and CEO
CARSO GLOBAL TELECOM
By: /s/ Xxxxxxx Xxxxxx Aora
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Name: Xxxxxxx Xxxxxx Aora
Title: Attorney in Fact
