Document:

exv10w28w6

 

Exhibit 10.28.6

Western Digital

20511 Lake Forest Drive

Lake Forest, California 92630-7741

Tel: 949.672.7000

June 28, 2007

ALL VIA FAX AND COURIER:

	 	 	 	 	 
	General Electric Capital Corporation	 	 
	350 South Beverly Drive, Suite 200	 	 
	Beverly Hills, California 90212	 	 
	Attention:

	 	Account Manager (Western Digital)	 	 
	Facsimile:

	 	(310)785-0644	 	 
	Telephone:

	 	(310)203-0335	 	 

	 	 	 	 	 	 	 
	General Electric Capital Corporation	 	DLA Piper Rudnick Gray Cary US LLP
	201 High Ridge Road	 	1999 Avenue of the Stars, Fourth Floor
	Stamford, Connecticut 06927-5100	 	Los Angeles, California 90067-6022
	Attention:

	 	Corporate Counsel
	 	Attention:
	 	Gary B. Rosenbaum, Esq.
	Facsimile:

	 	(203)316-7822
	 	Facsimile:
	 	(310)595-3442
	Telephone:

	 	(203)316-7500
	 	Telephone:
	 	(310)595-3142

Re:        Notice of Voluntary Termination of Credit Agreement

Gentlemen:

          Reference is made to the Amended and Restated Credit Agreement dated as of September
19, 2003, as amended by the First Amendment to Amended and Restated Credit Agreement dated
as of September 8, 2004, the Second Amendment to Amended and Restated Credit Agreement
dated as April 22, 2005, the Third Amendment to Amended and Restated Credit Agreement dated
as of September 30, 2005, the Fourth Amendment to Amended and Restated Credit Agreement
dated as of June 30, 2006, and the Fifth Amendment to Amended and Restated Credit Agreement
dated as of August 25, 2006 (“Fifth Amendment”) (including all annexes, exhibits and
schedules thereto, and as the same may be amended, restated, supplemented or otherwise
modified from time to time, collectively, the “Credit Agreement”), by and among Western
Digital Technologies, Inc., a Delaware corporation formerly known as Western Digital
Corporation (“Borrower”), Western Digital (Fremont), Inc. (“WD Fremont”), the other credit
parties party thereto, General Electric Capital Corporation, a Delaware corporation (“GE
Capital”), as administrative agent (in such capacity, “Agent”) for the lenders (“Lenders”),
Bank of America, N.A., as documentation agent for Lenders (“Documentation Agent”; Agent and
Documentation Agent are collectively referred to as “Co-Agents” and each, a “Co-Agent”),
and Lenders. Capitalized terms or matters of construction defined or established in
Annex A to the Credit Agreement shall be applied herein as defined or established
therein.

          Pursuant to Section 1.3 of the Credit Agreement, “Borrower may at any time
on at least ten days’ prior written notice to Co-Agents terminate the Revolving Loan
Commitment; provided, that upon such termination all Loans and other Obligations shall
be immediately due

 

 

and payable in full and Borrower shall make arrangements, in accordance with the terms and
conditions of Annex B, for the satisfaction of any outstanding Letter of Credit Obligations.”
This letter constitutes the ten day notice required in order to terminate the credit facility
and, upon Borrower’s satisfaction of any outstanding Letter of Credit Obligations, Borrower’s
request for Co-Agents’ and Lenders’ prompt release and return to Borrower of, the Collateral
and other interests held by or on behalf of Co-Agents and Lenders as security for the Credit
Parties’ Obligations with respect to the Credit Agreement.

          Please feel free to call if you have any questions or need further clarification.

Sincerely,

Steve Milligan

Chief Financial Officer

Western Digital Technologies, Inc.

cc:

Timothy Leyden

Wolfgang Nickl

Joseph R. Carrillo

Catherine Fields

Raymond M. Bukaty, Esq.

Michael Cobb, Esq.

Claudia Kihano Parker, Esq.exv10w1

 

Exhibit 10.1

SERIES C PREFERRED STOCK PURCHASE AGREEMENT

Dated as of August 23, 2007

Between

ENVIRONMENTAL TECTONICS CORPORATION

and

H.F. LENFEST

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 CERTAIN DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 PURCHASE AND SALE OF SERIES C PREFERRED STOCK
	 	 	4	 
	Section 2.1 Purchase and Sale of Preferred Stock
	 	 	4	 
	Section 2.2 Closing
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 3 BUYER’S REPRESENTATIONS AND WARRANTIES
	 	 	5	 
	Section 3.1 Investment Purpose
	 	 	5	 
	Section 3.2 Accredited Buyer Status
	 	 	5	 
	Section 3.3 Reliance on Exemptions
	 	 	5	 
	Section 3.4 Information
	 	 	5	 
	Section 3.5 Governmental Review
	 	 	5	 
	Section 3.6 Transfer or Resale
	 	 	5	 
	Section 3.7 Authorization; Enforcement
	 	 	6	 
	Section 3.8 Residency
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	6	 
	Section 4.1 Organization and Qualification
	 	 	6	 
	Section 4.2 Authorization; Enforcement
	 	 	6	 
	Section 4.3 Capitalization
	 	 	7	 
	Section 4.4 Issuance of Shares
	 	 	7	 
	Section 4.5 No Conflicts
	 	 	8	 
	Section 4.6 SEC Documents; Financial Statements
	 	 	8	 
	Section 4.7 Absence of Certain Changes
	 	 	9	 
	Section 4.8 Absence of Litigation
	 	 	9	 
	Section 4.9 Patents, Copyrights, etc
	 	 	9	 
	Section 4.10 No Materially Adverse Contracts, Etc
	 	 	10	 
	Section 4.11 Tax Status
	 	 	10	 
	Section 4.12 Certain Transactions
	 	 	10	 
	Section 4.13 Disclosure
	 	 	10	 
	Section 4.14 Acknowledgment Regarding the Buyer’s Purchase of Securities
	 	 	11	 
	Section 4.15 No General Solicitation
	 	 	11	 
	Section 4.16 No Integrated Offering
	 	 	11	 
	Section 4.17 No Brokers
	 	 	11	 
	Section 4.18 Acknowledgment Regarding Securities
	 	 	11	 
	Section 4.19 Permits; Compliance
	 	 	11	 
	Section 4.20 Environmental Matters
	 	 	11	 
	Section 4.21 Title to Property
	 	 	12	 
	Section 4.22 Insurance
	 	 	12	 
	Section 4.23 Internal Accounting Controls
	 	 	12	 
	Section 4.24 Foreign Corrupt Practices
	 	 	13	 

 

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 5 COVENANTS
	 	 	13	 
	Section 5.1 Best Efforts
	 	 	13	 
	Section 5.2 Statement With Respect to Shares; Form D; Blue Sky Laws
	 	 	13	 
	Section 5.3 Reporting Status
	 	 	13	 
	Section 5.4 Use of Proceeds
	 	 	13	 
	Section 5.5 Reservation of Shares
	 	 	14	 
	Section 5.6 Listing
	 	 	14	 
	Section 5.7 No Integration
	 	 	14	 
	Section 5.8 Issuance of Series C Shares
	 	 	14	 
	Section 5.9 Legal Compliance
	 	 	14	 
	Section 5.10 Expenses
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 6 INDEMNIFICATION
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 7 MISCELLANEOUS
	 	 	15	 
	Section 7.1 Governing Law
	 	 	15	 
	Section 7.2 Notices
	 	 	15	 
	Section 7.3 Counterparts; Signatures by Facsimile
	 	 	16	 
	Section 7.4 Headings
	 	 	16	 
	Section 7.5 Severability
	 	 	16	 
	Section 7.6 Entire Agreement; Amendments
	 	 	16	 
	Section 7.7 Successors and Assigns
	 	 	16	 
	Section 7.8 Third Party Beneficiaries
	 	 	17	 
	Section 7.9 Survival
	 	 	17	 
	Section 7.10 Further Assurances
	 	 	17	 
	Section 7.11 No Strict Construction
	 	 	17	 

(ii)

 

EXHIBITS

EXHIBIT A — REGISTRATION RIGHTS AGREEMENT

EXHIBIT B — STATEMENT WITH RESPECT TO SHARES

(iii)

 

     THIS SERIES C PREFERRED STOCK PURCHASE AGREEMENT (this “Agreement”), is entered into as of the
23rd day of August, 2007, by and between Environmental Tectonics Corporation, a
Pennsylvania corporation (the “Company”), and H.F. Lenfest, a Pennsylvania resident (the “Buyer”).

RECITALS

     WHEREAS, the parties desire that, upon the terms and subject to the conditions contained
herein, the Company may issue and sell to the Buyer and the Buyer shall purchase from the Company
Three Million Three Hundred Thousand Dollars (U.S.) ($3,300,000) of the Company’s Series C
Preferred Stock (as defined below) from time to time as provided herein; and

     WHEREAS, such investment will be made in reliance upon the provisions of Section 4(2)
(“Section 4(2)”) and Regulation D (“Regulation D”) as promulgated by the United States Securities
and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”), and/or
upon such other exemption from the registration requirements of the Securities Act as may be
available with respect to the investment to be made hereunder.

     NOW, THEREFORE, intending to be legally bound hereby, the parties hereto agree as follows:

ARTICLE 1

CERTAIN DEFINITIONS

	 	 	 	 	 
	 

	 	Section 1.1
	 	“Agreement” shall have the meaning set forth in the preamble of this Agreement.
	 
	 	 	 	 
	 

	 	Section 1.2
	 	“Articles of Incorporation” shall have the meaning set forth in Section
4.3.
	 
	 	 	 	 
	 

	 	Section 1.3
	 	“Buyer” shall have the meaning set forth in the preamble of this Agreement.
	 
	 	 	 	 
	 

	 	Section 1.4
	 	“Bylaws” shall have the meaning set forth in Section 4.3.
	 
	 	 	 	 
	 

	 	Section 1.5
	 	“Closing” shall have the meaning set forth in Section 2.2(a).
	 
	 	 	 	 
	 

	 	Section 1.6
	 	“Closing Date” shall mean the date on which the Closing occurs.
	 
	 	 	 	 
	 

	 	Section 1.7
	 	“Common Stock” shall mean the Company’s common stock, $0.05 par value per share.
	 
	 	 	 	 
	 

	 	Section 1.8
	 	“Company” shall have the meaning set forth in the preamble of this Agreement.
	 
	 	 	 	 
	 

	 	Section 1.9
	 	“Company Permits” shall have the meaning set forth in Section 4.19.

 

 

	 	 	 	 	 
	 

	 	Section 1.10
	 	“Control Person”
shall have the meaning set forth in Article VIII.
	 
	 	 	 	 
	 

	 	Section 1.11
	 	“Conversion Price” shall equal the closing price for the Company’s Common Stock
as reported on the American Stock Exchange by Bloomberg Financial Markets for the
trading date immediately preceding the Closing Date.
	 
	 	 	 	 
	 

	 	Section 1.12
	 	“Damages” shall mean any loss, claim, damage, liability, costs and expenses
(including, without limitation, reasonable attorneys’ fees and disbursements and costs
and expenses of expert witnesses and investigation).
	 
	 	 	 	 
	 

	 	Section 1.13
	 	“Environmental Laws” shall have the meaning set forth in Section
4.20(a).
	 
	 	 	 	 
	 

	 	Section 1.14
	 	“Event of Default” shall have the meaning set forth in Section 7.2.
	 
	 	 	 	 
	 

	 	Section 1.15
	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and
the regulations promulgated thereunder.
	 
	 	 	 	 
	 

	 	Section 1.16
	 	“Hazardous Materials” shall have the meaning set forth in Section 4.20.
	 
	 	 	 	 
	 

	 	Section 1.17
	 	“Intellectual Property” shall have the meaning set forth in Section 4.9.
	 
	 	 	 	 
	 

	 	Section 1.18
	 	“Investment Amount” shall mean Three Million Three Hundred Thousand Dollars
($3,300,000).
	 
	 	 	 	 
	 

	 	Section 1.19
	 	“Material Adverse Effect” shall mean any material adverse effect on (i) the
Securities, (ii) the assets, liabilities, business, properties, operations, financial
condition or results of operations of the Company and its Subsidiaries, if any, taken
as a whole, (iii) the transactions contemplated hereby or by the agreements or
instruments to be entered into in connection herewith or (iv) the authority or the
ability of the Company to perform its obligations under the Transaction Documents (as
defined below).
	 
	 	 	 	 
	 

	 	Section 1.20
	 	“NASD” shall mean the National Association of Securities Dealers, Inc.
	 
	 	 	 	 
	 

	 	Section 1.21
	 	“Person” shall mean an individual, a corporation, a partnership, an
association, a trust or other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.
	 
	 	 	 	 
	 

	 	Section 1.22
	 	“Principal Market” shall mean the Nasdaq National Market, the Nasdaq SmallCap
Market, the American Stock Exchange or the New York Stock Exchange, whichever is at the
time the principal trading exchange or market for the Common Stock.

2

 

	 	 	 	 	 
	 

	 	Section 1.23
	 	“Registration Rights Agreement” shall mean the agreement regarding the filing
of the registration statement(s) for the resale of the shares of Common Stock issuable
upon conversion of the Series C Preferred Stock, entered into between the Company and
the Buyer as of the Closing Date and in the form attached hereto as Exhibit A.
	 
	 	 	 	 
	 

	 	Section 1.24
	 	“Regulation D” shall have the meaning set forth in the recitals of this
Agreement.
	 
	 	 	 	 
	 

	 	Section 1.25
	 	“Rule 144” shall mean Rule 144 promulgated under the Securities Act (or a
successor rule).
	 
	 	 	 	 
	 

	 	Section 1.26
	 	“SEC” shall mean the United States Securities and Exchange Commission.
	 
	 	 	 	 
	 

	 	Section 1.27
	 	“SEC Documents” shall have the meaning set forth in Section 4.6.
	 
	 	 	 	 
	 

	 	Section 1.28
	 	“Section 4(2)” shall have the meaning set forth in the recitals of this
Agreement.
	 
	 	 	 	 
	 

	 	Section 1.29
	 	“Securities” shall mean collectively the Series C Shares and the shares of
Common Stock issuable upon conversion of the Series C Shares.
	 
	 	 	 	 
	 

	 	Section 1.30
	 	“Securities Act” shall have the definition ascribed to it in the recitals of
this Agreement.
	 
	 	 	 	 
	 

	 	Section 1.31
	 	“Series C Preferred Stock” shall mean the Company’s Series C Cumulative
Convertible Participating Preferred Stock, $0.05 par value per share.
	 
	 	 	 	 
	 

	 	Section 1.32
	 	“Series C Shares” shall have the meaning set forth in Section 2.1.
	 
	 	 	 	 
	 

	 	Section 1.33
	 	“Statement With Respect to Shares” shall mean the Statement With Respect to
Shares defining the rights and preferences of the Series C Shares, approved by the
Company’s Board of Directors and filed with the Secretary of State for the Commonwealth
of Pennsylvania, in the form attached hereto as Exhibit B.
	 
	 	 	 	 
	 

	 	Section 1.34
	 	“Subsidiaries” shall mean any corporation or other organization, whether
incorporated or unincorporated, in which the Company owns, directly or indirectly, any
equity or other ownership interest and which would be a “Significant Subsidiary” of the
Company as defined under Rule 1-02(w) of Regulation S-X promulgated under the
Securities Act.
	 
	 	 	 	 
	 

	 	Section 1.35
	 	“Transaction Documents” shall mean this Agreement, the Registration Rights
Agreement and the Statement With Respect to Shares.

3

 

ARTICLE 2

PURCHASE AND SALE OF SERIES C PREFERRED STOCK

     Section 2.1 Purchase and Sale of Preferred Stock. At the Closing, the Company shall
issue and sell to the Buyer, and the Buyer shall purchase from the Company 3,300 shares of the
Series C Preferred Stock (the “Series C Shares”) for the Investment Amount. The aggregate number
of shares of Common Stock into which the Series C Shares shall be convertible shall be determined
by dividing the Investment Amount by the Conversion Price for such Series C Shares.

     Section 2.2 Closing.

          (a) Closing Mechanics. The closing of this Agreement (the “Closing”) shall be deemed
to occur when this Agreement and the Registration Rights Agreement have been executed by both the
Buyer and the Company, and the other conditions set forth in Section 2.2(b) below have been
met. At the Closing, the Company will deliver to the Buyer a certificate representing the Series C
Shares that the Buyer has purchased hereunder against delivery to the Company by the Buyer of the
Investment Amount, paid by (i) a check payable to the Company’s order, (ii) wire transfer of funds
to the Company, or (iii) any combination of the foregoing.

          (b) Conditions to the Buyer’s Obligations. As a prerequisite to the Closing and the
Buyer’s obligations hereunder, all of the following conditions shall have been satisfied prior to
or concurrently with the Company’s execution and delivery of this Agreement:

	 	(i)	 	the following documents shall have been
delivered to the Buyer: (A) the Registration Rights Agreement (executed
by the Company) (B) a Secretary’s certificate as to (I) the resolutions
of the Audit Committee of the Company’s Board of Directors authorizing
this transaction, (II) the Company’s Articles of Incorporation, and
(III) the Company’s Bylaws; and (C) an Officer’s Certificate in form
and substance to be agreed upon by the parties;
	 
	 	(ii)	 	the Statement With Respect to Shares shall have
been filed with the Secretary of State of the Commonwealth of
Pennsylvania and shall be in full force and effect;
	 
	 	(iii)	 	the Company’s Common Stock shall be listed for
trading and actually trading on the American Stock Exchange or a
Principal Market;
	 
	 	(iv)	 	since the date of filing of the Company’s most
recent SEC Document, other than as disclosed to Buyer, no event that
had or is reasonably likely to have a Material Adverse Effect shall
have occurred; and
	 
	 	(v)	 	the representations and warranties of the
Company in this Agreement shall be true and correct in all material
respects.

4

 

ARTICLE 3

BUYER’S REPRESENTATIONS AND WARRANTIES

     The Buyer represents and warrants to the Company that:

     Section 3.1 Investment Purpose. As of the date hereof, the Buyer is purchasing the
Securities for his own account and not with a present view towards the public sale or distribution
thereof, except pursuant to sales registered or exempted from registration under the Securities
Act; provided, however, that by making the representations herein, the Buyer does
not agree to hold any of the Securities for any minimum or other specific term and reserves the
right to dispose of the Securities at any time in accordance with or pursuant to a registration
statement or an exemption under the Securities Act.

     Section 3.2 Accredited Buyer Status. The Buyer is an “accredited investor” as that
term is defined in Rule 501(a) of Regulation D (an “Accredited Buyer”).

     Section 3.3 Reliance on Exemptions. The Buyer understands that the Securities are
being offered and sold to the Buyer in reliance upon specific exemptions from the registration
requirements of United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine
the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

     Section 3.4 Information. The Buyer has been furnished with all materials relating to
the business, finances and operations of the Company and materials relating to the offer and sale
of the Securities which have been requested by the Buyer or his advisors. The Buyer and his
advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such
inquiries nor any other due diligence investigation conducted by the Buyer or any of his advisors
or representatives shall modify, amend or affect the Buyer’s right to rely on the Company’s
representations and warranties contained in Section 4 below. The Buyer understands that his
investment in the Securities involves a significant degree of risk.

     Section 3.5 Governmental Review. The Buyer understands that no United States federal
or state agency or any other government or governmental agency has passed upon or made any
recommendation or endorsement of the Securities.

     Section 3.6 Transfer or Resale. The Buyer understands that (i) except as provided in
the Registration Rights Agreement, the sale or resale of the Securities has not been and is not
being registered under the Securities Act or any applicable state securities laws, and the
Securities may not be transferred unless (a) the Securities are sold pursuant to an effective
registration statement under the Securities Act, (b) the Buyer shall have delivered to the Company
an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions
of counsel in comparable transactions) to the effect that the Securities to be sold or transferred
may be sold or transferred pursuant to an exemption from such registration, (c) the Securities are
sold or transferred to an “affiliate” (as defined in Rule 144) of the Buyer who agrees to sell or
otherwise transfer the Securities only in accordance with this Section 3.6 and

5

 

who is an Accredited Buyer or (d) the Securities are sold pursuant to Rule 144; (ii) any sale
of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of
Rule 144 and further, if Rule 144 is not applicable, any resale of such Securities under
circumstances in which the seller (or the person through whom the sale is made) may be deemed to be
an underwriter (as that term is defined in the Securities Act) may require compliance with some
other exemption under the Securities Act or the rules and regulations of the SEC thereunder; and
(iii) neither the Company nor any other person is under any obligation to register such Securities
under the Securities Act or any state securities laws or to comply with the terms and conditions of
any exemption thereunder (in each case, other than pursuant to the terms and conditions of the
Registration Rights Agreement). Notwithstanding the foregoing or anything else contained herein to
the contrary, the Securities may be pledged as collateral in connection with a bona fide margin
account or other lending arrangement. In connection with any sale of Registrable Securities by the
Buyer pursuant to clause (a) above, the Buyer agrees to sell all such securities in compliance with
applicable prospectus delivery requirements.

     Section 3.7 Authorization; Enforcement. This Agreement and the Registration Rights
Agreement have been duly and validly authorized by Buyer. This Agreement has been duly executed and
delivered on behalf of the Buyer, and this Agreement constitutes, and upon execution and delivery
by the Buyer of the Registration Rights Agreement, such agreement will constitute, valid and
binding agreements of the Buyer enforceable in accordance with their terms.

     Section 3.8 Residency. The Buyer is a resident of the Commonwealth of Pennsylvania.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to the Buyer that:

     Section 4.1 Organization and Qualification. The Company and each of its Subsidiaries
is a corporation duly organized and validly subsisting under the laws of the jurisdiction in which
it is incorporated, with full power and authority (corporate and other) to own, lease, use and
operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted. Schedule 4.1 sets forth a list of all of the Subsidiaries of the Company and
the jurisdiction in which each is incorporated. The Company and each of its Subsidiaries is duly
qualified as a foreign corporation to do business and is in good standing in every jurisdiction in
which its ownership or use of property or the nature of the business conducted by it makes such
qualification necessary, except where the failure to be so qualified or in good standing would not
have a Material Adverse Effect.

     Section 4.2 Authorization; Enforcement. (i) The Company has all requisite corporate
power and authority to enter into and perform this Agreement, the Statement With Respect to Shares
and the Registration Rights Agreement and to consummate the transactions contemplated hereby and
thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the
execution and delivery of this Agreement, the Statement With Respect to Shares and the Registration
Rights Agreement by the Company and the consummation by it of the transactions contemplated hereby
and thereby (including without limitation, the issuance of the Series C

6

 

Shares and the issuance and reservation for the shares of Common Stock issuable upon
conversion of the Series C Shares) have been duly authorized by the Audit Committee of the
Company’s Board of Directors and no further consent or authorization of the Company, its Board of
Directors, or its shareholders is required by law, regulation or regulatory body, (iii) this
Agreement has been duly executed and delivered by the Company, and (iv) this Agreement constitutes,
and upon execution and delivery by the Company of the Statement With Respect to Shares (and the
filing of the Statement With Respect to Shares with the Secretary of State of the Commonwealth of
Pennsylvania on or before the Closing as required by Section 2(b)(ii)) and the Registration Rights
Agreement, such documents will constitute, a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms.

     Section 4.3 Capitalization. As of the date hereof, the authorized capital stock of
the Company consists of 1,000,000 shares of Preferred Stock, of which 6,000 shares are issued and
outstanding, 20,000,000 shares of Common Stock, of which 9,028,459 shares of Common Stock are
issued and outstanding, 1,774,647 shares of Common Stock are reserved for issuance pursuant to the
Company’s stock option plans, and 2,873,343 shares of Common Stock are reserved for issuance
pursuant to securities exercisable for, or convertible into or exchangeable for shares of Common
Stock. All of such outstanding shares of capital stock are, or upon issuance will be, duly
authorized, validly issued, fully paid and nonassessable. No shares of capital stock of the Company
are subject to preemptive rights or any other similar rights of the shareholders of the Company or
any liens or encumbrances imposed through the actions or failure to act of the Company. Except as
disclosed in Schedule 4.3, as of the Closing Date (i) there are no outstanding options,
warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements,
understandings, claims or other commitments or rights of any character whatsoever relating to, or
securities or rights convertible into or exchangeable for any shares of capital stock of the
Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries
is or may become bound to issue additional shares of capital stock of the Company or any of its
Subsidiaries, (ii) there are no agreements or arrangements under which the Company or any of its
Subsidiaries is obligated to register the sale of any of its or their securities under the
Securities Act (except the Registration Rights Agreement) and (iii) there are no anti-dilution or
price adjustment provisions contained in any security issued by the Company (or in any agreement
providing rights to security holders) that will be or could be triggered by the issuance of the
Series C Shares. The Company has furnished to the Buyer true and correct copies of the Company’s
Articles of Incorporation as in effect on the date hereof (the “Articles of Incorporation”), the
Company’s Bylaws as in effect on the date hereof (the “Bylaws”), and the terms of all securities
convertible into or exercisable for Common Stock of the Company and the material rights of the
holders thereof in respect thereto.

     Section 4.4 Issuance of Shares. The Series C Shares will be properly issued pursuant
to Regulation D and/or any applicable state law. When issued, the Series C Shares shall be duly and
validly issued, fully paid, and nonassessable. Neither the sale of the Series C Shares pursuant to,
nor the Company’s performance of its obligations under, this Agreement or the Registration Rights
Agreement will (i) result in the creation or imposition of any liens, charges, claims or other
encumbrances upon the Series C Shares or any of the assets of the Company, or (ii) entitle the
holders of outstanding shares of capital stock to preemptive or other rights to subscribe to or
acquire shares of capital stock or other securities of the Company.

7

 

     Section 4.5 No Conflicts. The execution, delivery and performance of this Agreement
and the Registration Rights Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby (including, without limitation, the issuance and
reservation for issuance, as applicable, of the Series C Shares and shares of Common Stock
underlying the Series C Shares) will not (i) conflict with or result in a violation of any
provision of the Articles of Incorporation or Bylaws or (ii) violate or conflict with, or result in
a breach of any provision of, or constitute a default (or an event which with notice or lapse of
time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement or instrument to which the Company or
any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws and regulations and
regulations of any self-regulatory organizations to which the Company or its securities are
subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of
the Company or any of its Subsidiaries is bound or affected. Neither the Company nor any of its
Subsidiaries is in violation of its Articles of Incorporation, Bylaws or other organizational
documents and neither the Company nor any of its Subsidiaries is in default (and no event has
occurred which with notice or lapse of time or both could put the Company or any of its
Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries has taken any
action or failed to take any action that would give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement or instrument to which the Company or any of its
Subsidiaries is a party or by which any property or assets of the Company or any of its
Subsidiaries is bound or affected. The businesses of the Company and its Subsidiaries, if any, are
not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in
violation of any law, ordinance or regulation of any governmental entity the violation of which
would reasonably be expected to have a Material Adverse Effect. Except as specifically contemplated
by this Agreement and as required under the Securities Act and any applicable state securities
laws, the Company is not required to obtain any consent, authorization or order of, or make any
filing or registration with, any court, governmental agency, regulatory agency, self-regulatory
organization or stock market or any third party in order for it to execute, deliver or perform any
of its obligations under this Agreement or the Registration Rights Agreement in accordance with the
terms hereof or thereof or to issue and sell the Series C Shares in accordance with the terms
hereof and to issue shares of Common Stock upon conversion of the Series C Shares. Except as
disclosed in Schedule 4.5, all consents, authorizations, orders, filings and registrations
which the Company is required to obtain pursuant to the preceding sentence have been obtained or
effected on or prior to the date hereof. The Company and its Subsidiaries are unaware of any facts
or circumstances which might give rise to any of the foregoing.

     Section 4.6 SEC Documents; Financial Statements. Except as disclosed in Schedule
4.6, since February 24, 2006, the Company has timely filed all reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant to the reporting
requirements of the Exchange Act (all of the foregoing filed prior to the date hereof and all
exhibits included therein and financial statements and schedules thereto and documents (other than
exhibits to such documents) incorporated by reference therein, being hereinafter referred to as the
“SEC Documents”). The Company has delivered or made available to the Buyer true and complete copies
of the SEC Documents. As of their respective dates, the SEC Documents complied in all material
respects with the requirements of the Exchange Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of

8

 

the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of
a material fact or omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which they were made, not
misleading. None of the statements made in any such SEC Documents is, or has been, required to be
amended or updated under applicable law (except for such statements as have been amended or updated
in subsequent filings prior to the date hereof). As of their respective dates, the financial
statements of the Company included in the SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC
with respect thereto. Such financial statements have been prepared in accordance with United States
generally accepted accounting principles, consistently applied, during the periods involved (except
(i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the
case of unaudited interim statements, to the extent they may not include footnotes or may be
condensed or summary statements) and fairly present in all material respects the consolidated
financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the
consolidated results of their operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments). Except as set forth in the
financial statements of the Company included in the SEC Documents, the Company has no liabilities,
contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business
subsequent to February 24, 2006 and (ii) obligations under contracts and commitments incurred in
the ordinary course of business and not required under generally accepted accounting principles to
be reflected in such financial statements, which, individually or in the aggregate, are not
material to the financial condition or operating results of the Company.

     Section 4.7 Absence of Certain Changes. Except as set forth on Schedule 4.7,
since February 24, 2006, there has been no material adverse change and no material adverse
development in the assets, liabilities, business, properties, operations, financial condition or
results of operations of the Company or any of its Subsidiaries (other than changes which have been
disclosed in the SEC Documents filed since such date).

     Section 4.8 Absence of Litigation. Other than as disclosed in the SEC Documents,
there is no action, suit, claim, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending or, to the knowledge
of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of
its Subsidiaries, or their officers or directors in their capacity as such, that could have a
Material Adverse Effect.

     Section 4.9 Patents, Copyrights, etc. The Company and each of its Subsidiaries owns
or possesses the requisite licenses or rights to use all patents, patent applications, patent
rights, inventions, know-how, trade secrets, trademarks, trademark applications, service marks,
service names, trade names and copyrights (“Intellectual Property”) necessary to enable it to
conduct its business as now operated (and, to the best of the Company’s knowledge, as presently
contemplated to be operated in the future); there is no claim or action by any person pertaining
to, or proceeding pending, or to the Company’s knowledge threatened, which challenges the right of
the Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it to
conduct its business as now operated (and, except as set forth in Schedule 4.9 hereof, to
the best of the Company’s knowledge, as presently contemplated to be operated in the future); to
the

9

 

best of the Company’s knowledge, the Company’s or its Subsidiaries’ current and intended
products, services and processes do not infringe on any Intellectual Property or other rights held
by any person; and the Company is unaware of any facts or circumstances which might give rise to
any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of their Intellectual Property.

     Section 4.10 No Materially Adverse Contracts, Etc. Neither the Company nor any of its
Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment,
decree, order, rule or regulation which in the judgment of the Company’s officers has or is
expected in the future to have a Material Adverse Effect. Neither the Company nor any of its
Subsidiaries is a party to any contract or agreement which in the judgment of the Company’s
officers has or is expected to have a Material Adverse Effect.

     Section 4.11 Tax Status. Except as set forth on Schedule 4.11, the Company
and each of its Subsidiaries has made or filed all federal, state and foreign income and all other
tax returns, reports and declarations required by any jurisdiction to which it is subject (unless
and only to the extent that the Company and each of its Subsidiaries has set aside on its books
provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all
taxes and other governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those being contested in
good faith and has set aside on its books provisions reasonably adequate for the payment of all
taxes for periods subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any
jurisdiction, and the officers of the Company know of no basis for any such claim. The Company has
not executed a waiver with respect to the statute of limitations relating to the assessment or
collection of any foreign, federal, state or local tax. Except as set forth on Schedule
4.11, none of the Company’s tax returns is presently being audited by any taxing authority.

     Section 4.12 Certain Transactions. Except as disclosed in the SEC Documents and
except for arm’s length transactions pursuant to which the Company or any of its Subsidiaries makes
payments in the ordinary course of business upon terms no less favorable than the Company or any of
its Subsidiaries could obtain from third parties and other than the grant of stock options
disclosed on Schedule 4.3, none of the officers, directors, or employees of the Company is
presently a party to any transaction with the Company or any of its Subsidiaries (other than for
services as employees, officers and directors).

     Section 4.13 Disclosure. All information relating to or concerning the Company or any
of its Subsidiaries set forth in this Agreement and provided to the Buyer pursuant to Section
3.4 hereof and otherwise in connection with the transactions contemplated hereby is true and
correct in all material respects and the Company has not omitted to state any material fact
necessary in order to make the statements made herein or therein, in light of the circumstances
under which they were made, not misleading. No event or circumstance has occurred or exists, nor is
the Company in possession of any information, with respect to the Company or any of its
Subsidiaries or its or their business, properties, operations or financial conditions, which has
not been publicly announced or disclosed but under applicable law, rule or regulation, requires
public disclosure or announcement by the Company.

10

 

     Section 4.14 Acknowledgment Regarding the Buyer’s Purchase of Securities. The Company
acknowledges and agrees that the Buyer is acting solely in the capacity of an arm’s length
purchaser with respect to this Agreement and the transactions contemplated hereby. The Company
further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and that any statement made by the Buyer or any of its representatives or
agents in connection with this Agreement and the transactions contemplated hereby is not advice or
a recommendation and is merely incidental to the Buyer’s purchase of the Securities and has not
been relied upon by the Company, its officers or directors in any way.

     Section 4.15 No General Solicitation. Neither the Company nor any person acting for
the Company has conducted any “general solicitation,” as such term is defined in Regulation D, with
respect to any of the Securities being offered hereby.

     Section 4.16 No Integrated Offering. Neither the Company, nor any of its affiliates,
nor any person acting on its or their behalf, has directly or indirectly made any offers or sales
of any security or solicited any offers to buy any security under circumstances that would require
registration under the Securities Act of the issuance of the Securities to the Buyer. The issuance
of the Securities to the Buyer will not be integrated with any other issuance of the Company’s
securities (past, current or future) for purposes of any shareholder approval provisions applicable
to the Company or its securities.

     Section 4.17 No Brokers. The Company has taken no action which would give rise to any
claim by any person for brokerage commissions, finder’s fees or similar payments relating to this
Agreement or the transactions contemplated hereby.

     Section 4.18 Acknowledgment Regarding Securities. The Company’s executive officers
have studied and fully understand the nature of the Securities being sold hereunder. The Audit
Committee of the Company’s Board of Directors has determined in its good faith business judgment
that the issuance of the Securities hereunder and the consummation of the other transactions
contemplated hereby are in the best interests of the Company and its shareholders.

     Section 4.19 Permits; Compliance. The Company and each of its Subsidiaries is in
possession of all franchises, grants, authorizations, licenses, permits, easements, variances,
exemptions, consents, certificates, approvals and orders necessary to own, lease and operate its
properties and to carry on its business as it is now being conducted (collectively, the “Company
Permits”), and there is no action pending or, to the knowledge of the Company, threatened regarding
suspension or cancellation of any of the Company Permits. Neither the Company nor any of its
Subsidiaries is in conflict with, or in default or violation of, any of the Company Permits. Since
February 24, 2006, neither the Company nor any of its Subsidiaries has received any notification
with respect to possible conflicts, defaults or violations of applicable laws.

     Section 4.20 Environmental Matters.

          (a) There are, with respect to the Company or any of its Subsidiaries or any predecessor of
the Company, no past or present violations of Environmental Laws (as defined below), releases of
any material into the environment, actions, activities, circumstances,

11

 

conditions, events, incidents, or contractual obligations which may give rise to any common
law environmental liability or any liability under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 or similar federal, state, local or foreign laws and neither
the Company nor any of its Subsidiaries has received any notice with respect to any of the
foregoing, nor is any action pending or, to the Company’s knowledge, threatened in connection with
any of the foregoing. The term “Environmental Laws” means all federal, state, local or foreign laws
relating to pollution or protection of human health or the environment (including, without
limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including,
without limitation, laws relating to emissions, discharges, releases or threatened releases of
chemicals, pollutants contaminants, or toxic or hazardous substances or wastes (collectively,
“Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as
well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered,
promulgated or approved thereunder.

          (b) Other than those that are or were stored, used or disposed of in compliance with
applicable law, no Hazardous Materials are contained on any real property currently owned, leased
or used by the Company or any of its Subsidiaries, and no Hazardous Materials were released on any
real property previously owned, leased or used by the Company or any of its Subsidiaries during the
period the property was owned, leased or used by the Company or any of its Subsidiaries, except in
the normal course of the Company’s or any of its Subsidiaries’ business.

          (c) There are no underground storage tanks on or under any real property owned, leased or used
by the Company or any of its Subsidiaries that are not in compliance with applicable law.

     Section 4.21 Title to Property. The Company and its Subsidiaries have good and
marketable title in fee simple to all real property and good and marketable title to all personal
property owned by them which is material to the business of the Company and its Subsidiaries, in
each case free and clear of all liens, encumbrances and defects except such as are described in
Schedule 4.21 or such as would not have a Material Adverse Effect. Any real property and
facilities held under lease by the Company and its Subsidiaries are held by them under valid,
subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.

     Section 4.22 Insurance. The Company and each of its Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks and in such amounts
as management of the Company believes to be prudent and customary in the businesses in which the
Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any
reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business.

     Section 4.23 Internal Accounting Controls. The Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient, in the judgment of the Audit

12

 

Committee of the Company’s Board of Directors, to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial statements in conformity
with generally accepted accounting principles and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management’s general or specific authorization and (iv)
the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences.

     Section 4.24 Foreign Corrupt Practices. Neither the Company, nor any of its
Subsidiaries, nor any director, officer, agent, employee or other person acting on behalf of the
Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company, used
any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses
relating to political activity; made any direct or indirect unlawful payment to any foreign or
domestic government official or employee from corporate funds; violated or is in violation of any
provision of the U.S. Foreign Corrupt Practices Act of 1977; or made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

ARTICLE 5

COVENANTS

     Section 5.1 Best Efforts. The parties shall use their best efforts to satisfy timely
each of the conditions described in Section 5 of this Agreement.

     Section 5.2 Statement With Respect to Shares; Form D; Blue Sky Laws. The Company
agrees to file the Statement With Respect to Shares with the Secretary of State of the Commonwealth
of Pennsylvania on or before the Closing and to provide a copy thereof to Buyer promptly after such
filing. The Company agrees to file a Form D with respect to the Securities as required under
Regulation D and to provide a copy thereof to the Buyer promptly after such filing. The Company
shall, on or before the Closing Date, take such action as the Company shall reasonably determine is
necessary to qualify the Securities for sale to the Buyer pursuant to this Agreement under
applicable securities or “blue sky” laws of the states of the United States (or to obtain an
exemption from such qualification), and shall provide evidence of any such action so taken to the
Buyer on or prior to the Closing Date.

     Section 5.3 Reporting Status. The Company’s Common Stock is registered under Section
12(b) of the Exchange Act. So long as the Buyer beneficially owns any of the Securities, the
Company shall timely file all reports required to be filed with the SEC pursuant to the Exchange
Act, and the Company shall not terminate its status as an issuer required to file reports under the
Exchange Act even if the Exchange Act or the rules and regulations thereunder would permit such
termination.

     Section 5.4 Use of Proceeds. The Company shall use the proceeds from the sale of the
Series C Shares in accordance with Schedule 5.4.

13

 

     Section 5.5 Reservation of Shares. The Company shall at all times have authorized,
and reserved for the purpose of issuance, a sufficient number of shares of Common Stock to provide
for the full conversion of the Series C Shares issued pursuant to this Agreement.

     Section 5.6 Listing. The Company shall promptly secure the listing of the shares of
Common Stock issuable upon conversion of the Series C Shares upon the American Stock Exchange or
the applicable Principal Market, as the case may be, and each other national securities exchange or
automated quotation system, if any, upon which shares of Common Stock are then listed (subject to
official notice of issuance) and, so long as the Buyer owns any of the Securities, shall maintain,
so long as any other shares of Common Stock shall be so listed, such listing of all shares of
Common Stock issuable upon conversion of the Series C Shares.

     Section 5.7 No Integration. The Company shall not make any offers or sales of any
security (other than the Securities) under circumstances that would require registration of the
Securities being offered or sold hereunder under the Securities Act or cause the offering of
Securities to be integrated with any other offering of securities by the Company for the purpose of
any shareholder approval provision applicable to the Company or its securities. This covenant
shall not prohibit the Company from issuing shares of Common Stock upon conversion of the Series C
Shares.

     Section 5.8 Issuance of Series C Shares. The sale and issuance of the Series C Shares
shall be made in accordance with the provisions and requirements of Regulation D and any applicable
state law.

     Section 5.9 Legal Compliance. The Company shall conduct its business and the business
of its Subsidiaries in compliance with all laws, ordinances or regulations of governmental entities
applicable to such businesses.

     Section 5.10 Expenses. The Company shall reimburse Buyer for its reasonable expenses
incurred in connection with this Agreement, including the fees and disbursements of counsel for the
Buyer.

ARTICLE 6

INDEMNIFICATION

     The Company agrees to indemnify and hold harmless the Buyer, its partners, affiliates,
officers, directors, employees, and duly authorized agents, and each Person or entity, if any, who
controls the Buyer within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act (a “Control Person”), from and against any Damages, joint or several, and any action
in respect thereof to which the Buyer, its partners, affiliates, officers, directors, employees,
duly authorized agents and Control Persons, becomes subject to, resulting from, arising out of or
relating to any breach or alleged breach by the Company of any representation or warranty or to the
nonfulfillment of or failure to perform any covenant or agreement on the part of Company contained
in this Agreement or the Registration Rights Agreement in any event as such Damages are incurred.
The Company and the Buyer hereby agree to resolve any claim for indemnification under this
Article 6 pursuant to the procedures for indemnification set forth in Section 6 of
the Registration Rights Agreement.

14

 

ARTICLE 7

MISCELLANEOUS

     Section 7.1 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania applicable to agreements made and to
be performed in the Commonwealth of Pennsylvania (without regard to principles of conflict of
laws). Both parties irrevocably consent to the exclusive jurisdiction of the United States federal
courts and the state courts located in Pennsylvania with respect to any suit or proceeding based on
or arising under this Agreement, the agreements entered into in connection herewith or the
transactions contemplated hereby or thereby and irrevocably agree that all claims in respect of
such suit or proceeding may be determined in such courts. Both parties irrevocably waive the
defense of an inconvenient forum to the maintenance of such suit or proceeding. Both parties
further agree that service of process upon a party mailed by first class mail shall be deemed in
every respect effective service of process upon the party in any such suit or proceeding. Nothing
herein shall affect either party’s right to serve process in any other manner permitted by law.
Both parties agree that a final non-appealable judgment in any such suit or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other
lawful manner.

     Section 7.2 Notices. Any notices required or permitted to be given under the terms of
this Agreement shall be sent by certified or registered mail (return receipt requested) or
delivered personally or by courier (including a recognized overnight delivery service) or by
confirmed facsimile transmission and shall be effective five days after being placed in the mail,
if mailed by regular United States mail, or upon receipt, if delivered personally or by courier
(including a recognized overnight delivery service) or by facsimile, in each case addressed to a
party. The addresses for such communications shall be:

If to the Company:

Environmental Tectonics Corporation

125 James Way

Southampton, PA 18966

Attention: Chief Financial Officer

Facsimile: (215) 357-4000

With copy to:

Klehr, Harrison, Harvey, Branzburg & Ellers LLP

260 S. Broad Street

Philadelphia, PA 19102

Attn:    William W. Matthews, Esq.

Facsimile: (215) 568-6603

15

 

If to the Buyer:

To the address set forth immediately below the Buyer’s name on the signature pages
hereto.

With a copy to:

Royer & Associates, LLC

681 Moore Road, Suite 321

King of Prussia, PA 19406

Attn: John E. Royer, Jr., Esq.

Facsimile: (610) 354-8896

Each party shall provide notice to the other party of any change in address.

     Section 7.3 Counterparts; Signatures by Facsimile. This Agreement may be executed in
one or more counterparts, all of which shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered to the other party.
This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so delivering this
Agreement.

     Section 7.4 Headings. The headings of this Agreement are for convenience of
reference and shall not form part of, or affect the interpretation of, this Agreement.

     Section 7.5 Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the
validity or enforceability of the remainder of this Agreement or the validity or enforceability of
this Agreement in any other jurisdiction.

     Section 7.6 Entire Agreement; Amendments. This Agreement, the Registration Rights
Agreement and the Exhibits and Schedules hereto contain the entire agreement and understanding of
the parties with respect to the matters covered herein and therein and supersede all prior and
contemporaneous agreements, negotiations and understandings between the parties, both oral and
written relating to the subject matter hereof. The terms and conditions of all Exhibits to this
Agreement are incorporated herein by this reference and shall constitute part of this Agreement as
if fully set forth herein. No provision of this Agreement may be waived or amended other than by an
instrument in writing signed by the party to be charged with enforcement.

     Section 7.7 Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties and their successors and assigns. The Company shall not assign this
Agreement or any rights or obligations hereunder without the prior written consent of the Buyer.
The Buyer may assign its rights and obligations hereunder to any affiliate of Buyer.

16

 

     Section 7.8 Third Party Beneficiaries. This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other person.

     Section 7.9 Survival. The representations and warranties of the Company and the
agreements and covenants set forth in Article 3, 4, 5, 6, and
7 shall survive the Closing notwithstanding any due diligence investigation conducted by or
on behalf of the Buyer.

     Section 7.10 Further Assurances. Each party shall do and perform, or cause to be done
and performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.

     Section 7.11 No Strict Construction. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.

[SIGNATURE PAGE FOLLOWS]

17

 

     IN WITNESS WHEREOF, the parties hereto have caused this Series C Preferred Stock Purchase
Agreement to be executed by the undersigned, thereunto duly authorized, as of the date first set
forth above.

	 	 	 	 	 	 	 
	 	 	ENVIRONMENTAL TECTONICS CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 
	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	H.F. Lenfest
	 
	 	 	 	 	 	 
	 	 	RESIDENCE: Pennsylvania
	 
	 	 	 	 	 	 
	 

	 	ADDRESS:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]