SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Earliest Event Reported

~~December~~January 197, ~~2012~~2013

Environmental Tectonics Corporation

(Exact name of registrant as specified in its charter)

Pennsylvania

(State or other jurisdiction of incorporation of organization)

1-10655		23-1714256
(Commission File Number)		(IRS Employer Identification Number)
County Line Industrial Park
Southampton, Pennsylvania		18966
(Address of principal executive offices)		(Zip Code)

County Line Industrial Park
Southampton, Pennsylvania		18966
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code (215) 355-9100

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 12.0102. ~~Entry~~Results ~~into~~of aOperations ~~Material~~and ~~Definitive~~Financial ~~Agreement~~Condition.

On ~~December~~January 197, ~~2012~~2013, Environmental Tectonics Corporation ~~(“ETC”~~issued ora ~~the~~press ~~“Company”)~~release ~~entered~~announcing ~~into~~its anfinancial ~~Export-Import~~results ~~Loan~~for ~~Agreement~~the ~~through~~third ~~PNC~~quarter ~~Bank,~~of ~~National~~fiscal ~~Association~~year ~~(“PNC Bank”)~~2013, ~~whereby~~which ~~the~~ended ~~Company~~on ~~has~~November an23, ~~Export~~2012. A ~~Import~~copy ~~Committed Line~~ of ~~Credit~~this ~~through~~press ~~which~~release itis ~~may~~furnished ~~borrow~~as ~~against~~Exhibit ~~eligible~~99.1 ~~export~~to ~~inventory~~this ~~and~~Current ~~eligible~~Report ~~export~~on ~~accounts~~Form ~~receivable~~8-K upand toincorporated aherein ~~maximum~~by ~~amount of $2,000,000~~reference.

The material agreements providing for this transaction are described below:

Loan Agreement

Effective December 19, 2012, ETC and PNC Bank entered into the Export-Import Loan Agreement, which included the Borrower Agreement, and the Export-Import Line of Credit Note (as defined below).

As set forth in the Export-Import Loan Agreement, the Company received a $2,000,000 Export-Import Line of Credit, the term of which is through October 31, 2015. This Export-Import Line of Credit is in addition to the $15,000,000 line of credit which the Company also has with PNC Bank through October 31, 2015.

The Export-Import Line of Credit will be secured by substantially all of the Company’s assets.

As security for repayment of the Export-Import Line of Credit Note as noted above, the Company also concurrently entered into the Export-Import Security Agreement between ETC and PNC Bank dated December 19, 2012, and an Export-Import Pledge Agreement executed by ETC on December 19, 2012 in favor of PNC Bank. Pursuant to the Export-Import Pledge Agreement, the Company pledged to PNC as collateral the Company’s ownership interest in certain subsidiaries of the Company.

The Export-Import Loan Agreement contains affirmative and negative covenants that are customary for transactions of this type, including net worth, operating leverage ratio, fixed charge coverage ratio and limitations with respect to indebtedness, liens, investments, distributions, dispositions of assets, change of business and transactions with affiliates.

The financial covenants in the Export-Import Loan Agreement are as follows:

· ETC must maintain a minimum tangible net worth of $15,000,000.

· ETC must maintain an Operating Leverage Ratio (i.e., ratio of Senior Funded Debt to Earnings Before Interest, Taxes, Depreciation and Amortization) of less than 3.25 to 1. This ratio will reduce at the end of the first fiscal year to 3.00 to 1 and after the second fiscal year to 2.9 to 1, and will remain at that level at all times thereafter.

· ETC must maintain as of the end of each fiscal quarter, on a rolling four quarters basis, a Fixed Charge Coverage Ratio of at least 1.10 to 1.

The Export-Import Loan Agreement provides for customary events of default, including the failure to pay any principal or interest when due, failure to comply with covenants, material misrepresentations, certain bankruptcy, insolvency or receivership events, imposition of certain judgments and the liquidation of ETC. Upon an event of default under the Export-Import Loan Agreement, including the non-payment of principal or interest, the obligations of the Company under the Export-Import Loan Agreement may be accelerated and the assets securing the obligations secured.

Incorporation by Reference

The foregoing descriptions of the Export-Import Loan Agreement (with the Borrrower Agreement and Export-Import Line of Credit Note), Export-Import Security Agreement, and Export-Import Pledge Agreementare qualified in their entirety by reference to such agreements, which are filed as Exhibits 10.1, 10.2, and 10.3 hereto and are incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation

On December 19, 2012, the Company entered into the Export-Import Loan Agreement and certain related agreements, which are described in Item 1.01 above, which information is incorporated by reference into this Item 2.03.

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits.

The following ~~exhibits~~exhibit ~~are~~is furnished ~~or filed~~ in accordance with Item 601 of Regulation S-K:

1099.1 ~~Export-Import~~Press ~~Loan~~Release ~~Agreement,~~ dated ~~December~~January 197, ~~2012, between Registrant and PNC Bank, with the Borrower Agreement and the Export-Import Line of Credit Note (each as defined in such Loan Agreement) attached thereto.~~2013

10In accordance with General Instruction B.2 ~~Export~~of Form 8-~~Import~~K, ~~Security~~the ~~Agreement~~information byset ~~the~~forth ~~Registrant~~under Item 2.02 in ~~favor~~this Form 8-K is being furnished under Item 2.02 and shall not be deemed to be "filed" for the purposes of ~~PNC~~Section ~~Bank,~~18 ~~dated~~of asthe Exchange Act or otherwise subject to the liabilities of ~~December~~that 19Section, ~~2012~~nor shall such information be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act.

~~10.3 Export-Import Pledge Agreement between the Registrant and PNC Bank, dated as of December 19, 2012.~~2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ENVIRONMENTAL TECTONICS CORPORATION
	Registrant
Date: December 26, 2012	By:	/s/ Robert L. Laurent, Jr.
Date: January 8, 2013	By:	/s/ Robert L. Laurent, Jr.
		Robert L. Laurent, Jr.
		Chief Financial Officer

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