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<TITLE>Prepared and filed by St Ives Financial</TITLE>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font style='font-size:16 PT'>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font style='font-size:10 pt'>Washington, D.C. 20549</font></b></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font style='font-size:16 PT'>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font style='font-size:10 PT'><b>CURRENT
  REPORT PURSUANT TO SECTION 13 OR 15(D) OF</b></font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font style='font-size:10 PT'>THE
  SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font style='font-size:10 pt'>Date of Earliest Event Reported</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font style='font-size:10 pt'>November 16, 2006</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font style='font-size:18 pt'>Environmental Tectonics Corporation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font style='font-size:10 pt'>(Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font style='font-size:10 pt'>Pennsylvania</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font style='font-size:10 pt'>(State or other jurisdiction of incorporation of organization)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font style='font-size:10 pt'>&nbsp;</font></p>

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                    <td align=center valign=top width="280"><b><font style='font-size:10 pt'>1-10655</font></b><br>
<font style='font-size:10 pt'>(Commission File Number)</font><br></td>
        <td align=center width="280" >&nbsp;</td>
                    <td align=center valign=top width="280"><b><font style='font-size:10 pt'>23-1714256</font></b><br>
<font style='font-size:10 pt'>(IRS Employer Identification Number)</font></td>
        <td width="50">&nbsp;</td></tr></table>

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        <td width="50">&nbsp;</td>
                    <td align=center valign=top width="280"><font style='font-size:10 pt'>&nbsp;</font><br></td>
        <td align=center width="280" >&nbsp;</td>
                    <td align=center valign=top width="280"></td>
        <td width="50">&nbsp;</td></tr></table>

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        <td width="50">&nbsp;</td>

    <td align=center valign=bottom width="280"><font style='font-size:10 pt'><b>County
      Line Industrial Park<br>
      Southampton, Pennsylvania</b><br>
      (Address of principal executive offices)</font> </td>
        <td align=center width="280" >&nbsp;</td>

    <td align=center valign=bottom width="280"><font style='font-size:10 pt'>&nbsp;<br>
      <b>18966</b><br>
      (Zip Code)</font></td>
        <td width="50">&nbsp;</td></tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font style='font-size:10 pt'>Registrant&#146;s
  telephone number, including area code (215) 355-9100</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font style='font-size:10 pt'>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (</font><i><font style='font-size:10 pt'>see</font></i><font style='font-size:10 pt'> General Instruction A.2. below):</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:8%; text-indent:-8%;text-align:left;'><font style='font-size:10 pt'>
  <img src="emptybox.gif" width="12" height="12"> Written communications pursuant
  to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:8%; text-indent:-8%;text-align:left;'><font style='font-size:10 pt'>
  <img src="emptybox.gif" width="12" height="12"> Soliciting material pursuant
  to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:8%; text-indent:-8%;text-align:left;'><font style='font-size:10 pt'>
  <img src="emptybox.gif" width="12" height="12"> Pre-commencement communications
  pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:8%; text-indent:-8%;text-align:left;'><font style='font-size:10 pt'>
  <img src="emptybox.gif" width="12" height="12"> Pre-commencement communications
  pursuant to Rule 13e-4(c)under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font style='font-size:10 pt'>Item
          1.01 Entry
          Into a Material Definitive Agreement.</font></b></p>
      </td>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font style='font-size:10 pt'>On November 16, 2006, Environmental Tectonics Corporation (&#147;ETC&#148; or the &#147;Company&#148;) entered into a Letter Agreement (the &#147;Agreement&#148;) with PNC Bank, National Association (&#147;PNC Bank&#148;). Pursuant to the Agreement, PNC Bank (i) terminated ETC&#146;s Credit Agreement dated as of February 18, 2003 (ii) re-approved the Company&#146;s $5 million Line of Credit for Letters of Credit, and (iii) re-affirmed the Tangible Net Worth covenant (as defined in the Agreement) to a be a minimum of $9,000,000. The $5 million Line of Credit for Letters of Credit will continue to be guaranteed by H.F. Lenfest, the holder of the Company&#146;s subordinated debt and a party to the Company&#146;s Preferred Stock Purchase Agreement. A copy of the Agreement and related documents are attached as Exhibits 10.1 to 10.4 and incorporated herein by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt; margin-left:5%; text-indent:-5%;text-align:left;'><b><font style='font-size:10 pt'>Item 9.01. Financial Statements and Exhibits</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font style='font-size:10 pt'>(d) Exhibits. </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font style='font-size:10 pt'>The following exhibits are filed herewith:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style='font-size:10 pt'>10.1</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style='font-size:10 pt'>Letter Agreement, dated as of November 16, 2006, executed by ETC in favor of PNC.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style='font-size:10 pt'>10.2</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style='font-size:10 pt'>Reimbursement Agreement for Letters of Credit, dated as of November 16, 2006, executed by ETC in favor of PNC.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style='font-size:10 pt'>10.3</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style='font-size:10 pt'>Restated Subordination and Intercreditor Agreement, dated as of November 16, 2006, executed by ETC and H.F. Lenfest in favor of PNC.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style='font-size:10 pt'>10.4</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style='font-size:10 pt'>Restated
    Limited Guaranty Agreement, dated as of November 16, 2006, executed by H.F.
    Lenfest in favor of PNC.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font style='font-size:10 PT'>SIGNATURES</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font style='font-size:10 pt'>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.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font style='font-size:10 pt'>&nbsp;</font></p>


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      <td width="49%" valign=bottom >&nbsp;</td>
      <td width="7%" valign=bottom >&nbsp;</td>
      <td colspan="2" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font style='font-size:10 PT'>ENVIRONMENTAL
          TECTONICS CORPORATION</font></p>
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      <td width="49%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><br>
          <br>
          <font style='font-size:10 pt'>Date: November 20, 2006</font></p>
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      <td width="7%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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      <td width="4%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font style='font-size:10 pt'>By:&nbsp;</font></p>
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      <td width="40%" valign=bottom >
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        </p>
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      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
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      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt;'><font style='font-size:10 pt'>Duane
          D. Deaner</font><br>
          <font style='font-size:10 pt'>Chief Financial Officer</font></p>
      </td>
    </tr>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size="2">Exhibit
  Index</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font style='font-size:10 pt'>&nbsp;</font></p>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
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    <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style="font-size:10 pt" size="2">10.1</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size="2">Letter
        Agreement, dated as of November 16, 2006, executed by ETC in favor of
        PNC.</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
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    <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style="font-size:10 pt" size="2">10.2</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size="2">Reimbursement
        Agreement for Letters of Credit, dated as of November 16, 2006, executed
        by ETC in favor of PNC.</font></p>
    </td>
  </tr>
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    <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style="font-size:10 pt" size="2">10.3</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style="font-size:10 pt" size="2">Restated
        Subordination and Intercreditor Agreement, dated as of November 16, 2006,
        executed by ETC and H.F. Lenfest in favor of PNC.</font></p>
    </td>
  </tr>
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    <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style="font-size:10 pt" size="2">10.4</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font style="font-size:10 pt" size="2">Restated
          Limited Guaranty Agreement, dated as of November 16, 2006, executed
          by
       H.F. Lenfest in favor of PNC.</font></p>
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[{"type": "8-K", "sequence": "1", "filename": "b415826_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 17101}]
{"company-data": {"conformed-name": "ENVIRONMENTAL TECTONICS CORP", "cik": "0000033113", "assigned-sic": "3690", "irs-number": "231714256", "state-of-incorporation": "PA", "fiscal-year-end": "0225"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-10655", "film-number": "061228907"}, "business-address": {"street1": "COUNTY LINE INDUSTRIAL PARK", "city": "SOUTHAMPTON", "state": "PA", "zip": "18966", "phone": "2153559100"}, "mail-address": {"street1": "COUNTYLINE INDUSTRIAL PARK", "city": "SOUTHAMPTON", "state": "PA", "zip": "18966"}, "former-company": {"former-conformed-name": "ENVIRONMENTAL TECHNOLOGY CORP", "date-changed": "19730208"}}
Prepared and filed by St Ives Financial
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
November 16, 2006
Environmental Tectonics Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania
(State or other jurisdiction of incorporation of organization)
1-10655
(Commission File Number)
23-1714256
(IRS Employer Identification Number)
County
      Line Industrial Park
Southampton, Pennsylvania
(Address of principal executive offices)
18966
(Zip Code)
Registrant's
  telephone number, including area code (215) 355-9100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (
see
General Instruction A.2. below):
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
          1.01 Entry
          Into a Material Definitive Agreement.
On November 16, 2006, Environmental Tectonics Corporation ("ETC" or the "Company") entered into a Letter Agreement (the "Agreement") with PNC Bank, National Association ("PNC Bank"). Pursuant to the Agreement, PNC Bank (i) terminated ETC's Credit Agreement dated as of February 18, 2003 (ii) re-approved the Company's $5 million Line of Credit for Letters of Credit, and (iii) re-affirmed the Tangible Net Worth covenant (as defined in the Agreement) to a be a minimum of $9,000,000. The $5 million Line of Credit for Letters of Credit will continue to be guaranteed by H.F. Lenfest, the holder of the Company's subordinated debt and a party to the Company's Preferred Stock Purchase Agreement. A copy of the Agreement and related documents are attached as Exhibits 10.1 to 10.4 and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
The following exhibits are filed herewith:
10.1
Letter Agreement, dated as of November 16, 2006, executed by ETC in favor of PNC.
10.2
Reimbursement Agreement for Letters of Credit, dated as of November 16, 2006, executed by ETC in favor of PNC.
10.3
Restated Subordination and Intercreditor Agreement, dated as of November 16, 2006, executed by ETC and H.F. Lenfest in favor of PNC.
10.4
Restated
    Limited Guaranty Agreement, dated as of November 16, 2006, executed by H.F.
    Lenfest in favor of PNC.
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
Date: November 20, 2006
By:
Duane
          D. Deaner
Chief Financial Officer
Exhibit
  Index
10.1
Letter
        Agreement, dated as of November 16, 2006, executed by ETC in favor of
        PNC.
10.2
Reimbursement
        Agreement for Letters of Credit, dated as of November 16, 2006, executed
        by ETC in favor of PNC.
10.3
Restated
        Subordination and Intercreditor Agreement, dated as of November 16, 2006,
        executed by ETC and H.F. Lenfest in favor of PNC.
10.4
Restated
          Limited Guaranty Agreement, dated as of November 16, 2006, executed
          by
       H.F. Lenfest in favor of PNC.