EXHIBIT 10.2
REVOLVING CREDIT NOTE
$12,000,000 February 18, 2002
Philadelphia, PA
FOR VALUE RECEIVED, ENVIRONMENTAL TECTONICS CORPORATION (the
"Borrower"), hereby unconditionally promises to pay to the order of PNC BANK,
NATIONAL ASSOCIATION (the "Bank"), at the office of the Bank located at 1600
Market Street, Philadelphia, Pennsylvania, 19103, on the Revolving Credit
Termination Date (as such term is defined in the Credit Agreement hereinafter
referred to) in lawful money of the United States of America and in immediately
available funds, the principal sum of (a) TWELVE MILLION DOLLARS ($12,000,000),
or, if less, (b) the aggregate unpaid principal amount of all Revolving Credit
Loans made by the Bank to the Borrower pursuant to the Credit Agreement. The
Borrower further unconditionally agrees to pay interest accrued on the unpaid
principal amount outstanding hereunder from time to time from the date hereof in
like money at such office at the rates and on the dates specified in the Credit
Agreement together with all other costs, fees and expenses as provided in the
Credit Agreement.
The holder of this Note is authorized to endorse on Schedule 1
annexed hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof the respective date, Type, and amount
of each Revolving Credit Loan made by the Bank to the Borrower, each
continuation thereof, each conversion of all or a portion thereof to another
Type, the date and amount of each payment or prepayment of principal thereof
and, in the case of Eurodollar Loans, the length of each Interest Period with
respect thereto, which endorsement shall constitute prima facie evidence of the
accuracy of the information endorsed absent manifest error; provided, however,
that the failure to make any such endorsement (or any error in such recordation)
shall not affect the obligations of the Borrower to make payments of principal,
interest and other amounts outstanding in accordance with the terms of this Note
and the Credit Agreement.
This Note is the Revolving Credit Note referred to in,
evidences indebtedness incurred under, and is entitled to the benefits of, the
Credit Agreement, dated as of the date hereof (as it may be amended,
supplemented or otherwise modified from time to time, the "Credit Agreement"),
between the Borrower and the Bank. The Credit Agreement, among other things,
contains provisions for the acceleration of the maturity hereof upon the
happening of certain events, for optional or mandatory prepayments of the
principal hereof prior to the maturity thereof, for a higher rate of interest
upon the occurrence of an Event of Default and for certain security interests
granted by the Borrower and certain related entities. Reference is made to the
Credit Agreement and the other Loan Documents for a statement of the terms and
conditions under which the Revolving Credit Loans evidenced hereby have been
secured.
Upon the occurrence of any one or more of the Events of
Default specified in the Credit Agreement, all amounts then remaining unpaid on
this Note shall become, or may be declared to be, immediately due and payable,
all as provided therein.
All parties now and hereafter liable with respect to this
Note, whether maker, principal, surety, guarantor, endorser or otherwise, hereby
waive presentment, demand, protest and notice (except as required under the
Credit Agreement) of any kind. No failure to exercise, and no delay in
exercising, any rights hereunder on the part of the holder hereof shall operate
as a waiver of such rights.
Capitalized terms not otherwise defined herein shall have the
meanings set forth in the Credit Agreement. This Note shall be governed by, and
construed in accordance with, the laws of the Commonwealth of Pennsylvania.
ENVIRONMENTAL TECTONICS CORPORATION
By: /s/ Duane Deaner
---------------------------------
Name: Duane Deaner
Title: C.F.O.
Schedule 1
Loans, Conversions and Payments
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Amount of Amount of
Base Rate Eurodollar
Loans Loans Unpaid
Type of Loan Amount of Converted Converted To Principal
(Eurodollar or Amount of Principal to Eurodollar Base Rate Balance of Notation
Date Base Rate) Loan Repaid Loans Loans Loans Made By
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