EXHIBIT 10.2
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SECOND AMENDED AND RESTATED REVOLVING CREDIT NOTE
$5,000,000 August 24, 2004
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) FIVE MILLION DOLLARS ($5,000,000), or,
if less, (b) the aggregate unpaid principal amount of all Revolving Credit Loans
made or deemed 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 amends and completely restates and evidences the indebtedness
outstanding under and is substituted for, but not in payment, satisfaction,
cancellation or novation of, the Amended and Restated Revolving Credit Note
dated April 30, 2003 issued by the Borrower to the Bank and, as of the date
hereof, shall be deemed to be 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:____________________________________
Name:
Title:
2
SCHEDULE 1
LOANS AND PAYMENTS
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UNPAID
AMOUNT OF PRINCIPAL
AMOUNT OF PRINCIPAL BALANCE OF NOTATION
DATE LOAN REPAID LOANS MADE BY
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