Item 1.01 Entry into a Material Definitive Agreement.

On May 7, 2020, Avid Technology, Inc. (the "Company") executed an unsecured promissory note (the "Note") with Citizens Bank N.A. to evidence a loan to the Company in the amount of $7,800,000 under the Paycheck Protection Program (the "PPP") established under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), administered by the U.S. Small Business Administration (the "SBA").

In accordance with the requirements of the CARES Act, the Company expects to use the proceeds from the loan exclusively for qualified expenses under the PPP, including payroll costs, mortgage interest, rent and utility costs. Interest will accrue on the outstanding balance of the Note at a rate of 1.00% per annum. The Company expects to apply for forgiveness of up to the entire amount of the Note. Notwithstanding the Company's eligibility to apply for forgiveness, no assurance can be given that the Company will obtain forgiveness of all or any portion of the amounts due under the Note. The amount of forgiveness under the Note is calculated in accordance with the requirements of the PPP, including the provisions of Section 1106 of the CARES Act, subject to limitations and ongoing rule-making by the SBA and the maintenance of employee and compensation levels.

Subject to any forgiveness granted under the PPP, the Note is scheduled to mature two years from the date of first disbursement under the Note. The Note may be prepaid at any time prior to maturity with no prepayment penalties. The Note provides for customary events of default, including, among others, those relating to failure to make payments, bankruptcy, and significant changes in ownership. The occurrence of an event of default may result in the required immediate repayment of all amounts outstanding and/or filing suit and obtaining judgment against the Company. The Company's obligations under the Note are not secured by any collateral or personal guarantees.

In connection with the Note, the Company entered into an amendment to its credit facility in which the agents and the lenders thereunder consented to the Company's borrowing of a loan under the PPP pursuant to the Note.

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

The information under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.



Item 9.01  Financial Statements and Exhibits.

(d)          Exhibits.

Exhibit
Number       Description
               Paycheck Protection Note, dated May 7, 2020, in favor of Citizens
99.1         Bank N.A.

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