On April 21, 2020, Aviat Networks, Inc. (the “Company”) entered into a Paycheck Protection Program Note (the “Note”) effective April 21, 2020 with Silicon Valley Bank as the lender (“Lender”) in an aggregate principal amount of $5,911,000 to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (the “PPP Loan”). Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1%) per annum, with the first six months of interest deferred. Commencing seven months after the effective date of the PPP Loan, the Company is required to pay the Lender equal monthly payments of principal and interest as required to fully amortize the PPP Loan by April 21, 2022. The PPP Loan is unsecured and guaranteed by the Small Business Administration.

The Company received the PPP Loan proceeds on April 22, 2020. On April 23, 2020, the Small Business Administration published new guidance regarding the PPP Loan which the Company is currently evaluating and will complete its assessment before May 7, 2020.

The Company may apply to the Lender for forgiveness of the PPP Loan, with the amount which may be forgiven equal to the sum of the payroll costs, covered mortgage obligations, covered rent obligations; and covered utility payment incurred by the Company during the eight-week period beginning on the date of first disbursement to the Company under the PPP Loan, calculated in accordance with the terms of the CARES Act. No assurance is provided that the Company will obtain forgiveness of the PPP Loan in whole or in part, but the Company intends to use the proceeds from the PPP Loan in accordance with the PPP Loan program. The Note contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, or provisions of the Note. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, and/or Lender’s exercise of any of the rights and remedies available under the PPP Loan documents or under applicable law.

The foregoing description of the Note does not purport to be complete and is qualified in its entirety by reference to the full text of the Note, which is filed as Exhibits 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off Balance Sheet Arrangement of the Registrant.

The disclosure in Item 1.01 and Exhibits 10.1 of this Current Report on Form 8-K are incorporated herein by reference.

Item 9.01. Financial Statement and Exhibits.

Exhibit> Description

10.1 Paycheck Protection Program Note, effective as of April 21, 2020, in favor of Silicon Valley Bank.

AVIAT NETWORKS, INC. Exhibit
EX-10.1 2 docusignsbapppsvbformofn.htm EXHIBIT 10.1 docusignsbapppsvbformofn DocuSign Envelope ID: 9074B210-C1B3-431F-9E0F-1609F7E1ACF6 Silicon Valley Bank U.S. Small Business Administration Paycheck Protection Program Note SBA Loan No. 2187547208 SBA Loan Name Borrower Legal Name AVIAT NETWORKS INC DBA Date 4/21/2020 Loan Amount $ 5911000 Interest Rate 1.0% per annum Borrower AVIAT NETWORKS INC Operating Company Not applicable Lender Silicon Valley Bank 1. PROMISE TO PAY. In return for the Loan,…
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About AVIAT NETWORKS, INC. (NASDAQ:AVNW)

Aviat Networks, Inc., together with its subsidiaries, is a supplier of microwave networking solutions. The Company’s product categories include point-to-point microwave and millimeter wave radios that are licensed (subject to local frequency regulatory requirements), lightly-licensed and license-exempt (operating in license-exempt frequencies), and element and network management software. In addition, it provides a range of professional services enabling it to deliver turnkey networks, including design, deployment, maintenance and managed services. It designs, manufactures and sells a range of wireless networking products, solutions and services to mobile and fixed public network operators, private network operators, Federal, State and Local government agencies, transportation, energy and utility companies, public safety agencies and broadcast network operators around the world. The Company sells products and services directly to its customers and also use agents and resellers.