Document:

Exhibit 4.6

       
        	
                 

              	
                
                  OPTION AGREEMENT

                   

                  Made as of _____, __, _____

                

              

      

      

      
        	BETWEEN:   

              	
                TAT TECHNOLOGIES LTD.

                 

                  

                
                  A company incorporated in Israel

                   

                  With an address at 7 Gibori Israel St.,

                   

                  Netanya, 4250407, Israel          

                  (hereinafter the “Company”)          

                  

                  

              

      

      

      on the one part

       

      AND:                                   Name: ___________________________________

       

      I.D. No.  ___________________________________

       

      With an address at ____________________________          

      (hereinafter the “Optionee”)

       

        

      on the other part

       

        

    

    	WHEREAS	
            The Company duly adopted approved the 2022 Stock Option Plan, a copy of which is attached as Exhibit A hereto, forming an integral part hereof (the “Plan”);
              and

          

     

    	WHEREAS	
            Pursuant to the Plan, the Company wishes to grant the Optionee, pursuant and subject to the provisions of the Internal Revenue Code of 1986, as amended (the "Code") and the regulations promulgated
              thereunder, or such other rules published by the Internal Revenue Service ("IRS"), options to purchase Ordinary Shares, par value NIS 0.90 per share, of the Company (the "Options");

          

     

    NOW, THEREFORE, it is agreed as follows:

     

    	1.	
            Preamble and Definitions

          

     

    	

          	1.1.	
            The preamble to this agreement constitutes an integral part hereof.

          

     

    	

          	1.2.	
            Unless otherwise defined herein, capitalized terms used herein shall have the meaning ascribed to them in the Plan.

          

     

    	

          	1.3.	
            Optionee has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of the Plan and this Agreement.

          

     

    
      
        

    

     

    

    	

          	1.4.	
            Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board and/or Committee upon any questions relating to the Plan and this Agreement.

          

     

    	

          	1.5.	
            Optionee and the Company further agree that the Options are granted under and governed by Section 422 of the Code and the Rules promulgated in connection therewith.

          

     

    	

          	1.6.	
            Furthermore, by Optionee’s signature below, Optionee confirms that he is familiar with the terms and conditions under Section 422 of the Code.

          

     

    	2.	
            Grant of Options

          

     

    	

          	2.1.	
            The Company hereby grants to the Optionee the number of Options, which can either be classified as Incentive Stock Options or Non-Qualified Stock Options as set forth in Exhibit B, each Option exercisable for one Ordinary Share of the
              Company, upon payment of the Exercise Price as set forth in Exhibit B, subject to the terms and the conditions as set forth in the Plan and as provided herein.

          

     

    	

          	2.2.	
            The Optionee is aware that the Company intends in the future to issue additional shares and to grant additional options to various entities and individuals, as the Company in its sole discretion shall determine.

          

     

    	3.	
            Option Term and Conditions of Exercise

          

     

    	

          	3.1.	
            The Options may be exercised by the Optionee prior to the Expiration Date (as as set forth in Exhibit B) to the extent that the Options become vested and exercisable in accordance with Exhibit B hereto, and provided that, the Optionee is
              an employee or an office holder of the Company or any of its Subsidiaries, at all times during the period beginning with the Date of Grant and ending upon the date of exercise and subject to the termination provisions detailed in subsection
              (h) through (k) in section 6.3 of the Plan.

          

     

    	

          	3.2.	
            Options may be exercised only to purchase whole Shares, and in no case may a fraction of a Share be purchased. If any fractional Share would be deliverable upon exercise, such fraction shall be rounded up one-half or less, or otherwise
              rounded down, to the nearest whole number.

          

     

    	

          	3.3.	
            Detrimental Activity. For purposes of this Agreement, Detrimental Activity shall have the meaning set forth in the Plan. In the event that the Optionee engages in Detrimental Activity prior to any exercise of Options, such Options
              shall thereupon terminate and expire. As a condition of the exercise of Options, the Optionee shall be required to certify (or shall be deemed to have certified) at the time of exercise in a manner acceptable to the Company that he is in
              compliance with the terms and conditions of the Plan and that the Optionee has not engaged in, and does not intend to engage in, any Detrimental Activity. In the event the Optionee engages in Detrimental Activity during the one year period
              commencing on the later of the date the Options are exercised or become vested, the Company shall be entitled to recover from the Optionee at any time within one year after such exercise or vesting, and the Optionee shall pay over to the
              Company, an amount equal to any gain realized as a result of the exercise (whether at the time of exercise or thereafter).

          

     

    
      
        

    

     

    

    	4.	
            Vesting; Exercise Period

          

     

    	

          	4.1.	
            Subject to the provisions of the Plan, Options shall vest and become exercisable according to the vesting schedule and acceleration provisions set forth in Exhibit B hereto.

          

     

    	

          	4.2.	
            As per the rules of the TASE, due to transition to clearing on T+ 1 in shares and convertible securities, no conversion of options shall take place on the effective date to distribution of bonus shares, offering by way of rights,
              distribution of dividends, capital consolidation, capital split or reduction of capital (each of the above- "Company Event"). Additionally, if the ex day of the Company Event shall occur prior to the effective date of the Company Event, no
              conversion of options shall take place on the ex day as aforesaid.

          

     

    	

          	4.3.	
            At the expiration of the Exercise Period, all unexercised Options shall become null and void.

          

     

    	5.	
            Exercise of Options

          

     

    	

          	5.1.	
            Options may be exercised in accordance with the provisions of Section 6.3(f) of the Plan.

          

     

    	

          	5.2.	
            In order for the Company to issue Shares upon the exercise of any of the Options, the Optionee hereby agrees to sign any and all documents required by any applicable law and/or by the Company's Articles of Association.

          

     

    	

          	5.3.	
            The Company shall not be obligated to issue any Shares upon the exercise of Options if such issuance, in the opinion of the Company, might constitute a violation by the Company of any provision of law.

          

     

    	6.	
            Taxes; Indemnification

          

     

    	

          	6.1.	
            Any tax consequences arising from the grant or exercise of any Option, from the payment for Shares covered thereby or from any other event or act (of the Company and/or its Subsidiaries, or the Optionee), hereunder, shall be borne solely
              by the Optionee. The Company and/or its Subsidiaries shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Optionee hereby agrees to
              indemnify the Company and/or its Subsidiaries and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or
              to have withheld, any such tax from any payment made to the Optionee.

          

     

    	

          	6.2.	
            The Optionee will not be entitled to receive from the Company any Shares allocated or issued upon the exercise of Options prior to the full payments of the Optionee’s tax liabilities arising from Options which were granted to him and/or
              Shares issued upon the exercise of Options.

          

     

    	

          	6.3.	
            The Optionee acknowledges that the Company (a) makes no representations or undertakings regarding the tax treatment with any aspect of the Options, including the grant, vesting, or exercise of the Options, the subsequent sale of Shares
              acquired under the Plan and the receipt of dividends, if any; and (b) does not commit to and is under no obligation to structure the terms of the Options or any aspect of the Options to reduce or eliminate Optionee’s tax liability, or achieve
              any particular tax result. Further, if Optionee has become subject to tax in more than one jurisdiction between the date of grant and the date of any relevant taxable event, Optionee acknowledges that the Company may be required to withhold
              tax in more than one jurisdiction.

          

     

    
      
        

    

     

    

    	

          	6.4.	
            Without limitation of the foregoing, with respect to ISO and NQSO, there is no guarantee that the IRS will determine that the Exercise Price of these Options represent the fair market value thereof as of the Date of Grant in compliance
              with the requirements of Section 409A of the Code.  If the IRS determines that the Exercise Price is less than such fair market value it could result in adverse tax consequences to Optionee.

          

     

    	

          	6.5.	
            In case of ISO, adjustments made pursuant to the Plan with respect to ISO could constitute a “modification” of such ISO (as that term is defined in Section 424(h) of the Code) or could cause adverse tax consequences for the Optionee and
              the Optionee should consult with his or her tax advisor regarding the consequences of such “modification” on his or her income tax treatment with respect to the ISO.

          

     

    	

          	6.6.	
            The receipt of the Options and the acquisition of the Shares to be issued upon the exercise of the Options may result in tax consequences. THE OPTIONEE IS ADVISED TO CONSULT A TAX ADVISER WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING
              OR EXERCISING THE OPTIONS OR DISPOSING OF THE SHARES.

          

     

    	

          	6.7.	
            If any of the Shares issued under Optionee's Options that designated as Incentive Stock Options are disposed of prior to the date which is either (i) two years after the date of grant of such incentive Stock Options or (ii) one year after
              the Optionee acquired his shares by exercising his Incentive Stock Options, then the Optionee, immediately prior to the disposition, shall promptly notify the Company in writing of the date and terms of the disposition and shall provide such
              other information regarding the disposition as the Company may reasonably require.

          

     

    	7.	
            Miscellaneous

          

     

    	

          	7.1.	
            No Guarantee of Continued Service. Neither this Agreement nor the grant of any Options shall give the Optionee any right with respect to continuance of employment, consultancy or directorship by the Company or any Subsidiary, nor
              shall they be a limitation in any way on the right of the Company or any Subsidiary by which an employee is employed or a Consultant or Non-Employee Director is retained to terminate his or her employment, consultancy or directorship at any
              time.

          

     

    	

          	7.2.	
            Plan Governs. This Agreement is subject to all terms and provisions of the Plan. In the event of a conflict between one or more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan will
              govern.

          

     

    	

          	7.3.	
            Entire Agreement. Subject to the provisions of the Plan, to which this Agreement is subject, this Agreement, together with the exhibits hereto, constitute the entire agreement between the Optionee and the Company with respect to
              Options granted hereunder, and supersedes all prior agreements, understandings and arrangements, oral or written, between the Optionee and the Company with respect to the subject matter hereof.

          

     

    	

          	7.4.	
            Failure to Enforce - Not a Waiver. The failure of any party to enforce at any time any provisions of this Agreement or the Plan shall in no way be construed to be a waiver of such provision or of any other provision hereof.

          

     

    	

          	7.5.	
            Binding Effect. The Plan and this Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereof.

          

     

    
      
        

    

     

    

    	

          	7.6.	
            Governing Law. This Agreement and actions taken in connection herewith shall be governed and construed in accordance with the laws of Israel (regardless of the law that might otherwise govern under applicable Israeli principles of
              conflict of laws).

          

     

    	

          	7.7.	
            Notices. All notices or other communications given or made hereunder shall be in writing and shall be delivered or mailed by registered mail or delivered by email or facsimile with written confirmation of receipt to the Optionee
              and/or to the Company at the addresses shown on the letterhead above, or at such other place as the Company may designate by written notice to the Optionee. The Optionee is responsible for notifying the Company in writing of any change in the
              Optionee’s address, and the Company shall be deemed to have complied with any obligation to provide the Optionee with notice by sending such notice to the address indicated below.

          

     

    IN WITNESS WHEREOF, this Agreement has been executed as of the day and year first above written.

     

    	

          	
            __________________________________

            
               

              TAT TECHNOLOGIES LTD

            

          	
            _______________________

          

    .              

    
      
        	

              	Exhibit A 

              	
                TAT TECHNOLOGIES LTD 2022 STOCK OPTION PLAN AS AMENDED

              

        

        

      

      	

            	Exhibit B:	
              Terms of the Option

            

      

    

    
      
        

    

     

    EXHIBIT B

     

     

    TERMS OF THE OPTION

     

    	
            Name of the Optionee:

          	 
	
            Date of Grant:

          	 
	
            Designation:

          	
            •          ♦ ISO  / ☐ NQSO

          
	
            1.          Number of Options granted:

          	 
	
            2.          Exercise Price Per Share:

          	 
	
            3.          Vesting:

            
              4.          Expiration Date:

            

          	 

      

    

    
      
        
          
            	

                  	________________________          	

                  	
                    _______________________

                    TAT Technologies Ltd.EX-10.1

 Exhibit 10.1 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT
ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE MAKER THAT SUCH REGISTRATION IS NOT
REQUIRED. 
 PROMISSORY NOTE 

$1,500,000 
 Issue Date: December 20, 2022 

No. A-1 

Phoenix Biotech Acquisition Corp. (the “Maker”) promises to pay to the order of Phoenix Biotech Sponsor, LLC (the
“Payee”) the principal sum of up to one million five hundred thousand dollars ($1,500,000) (the “Maximum Principal Amount”) in lawful money of the United States of America, on the terms and conditions
described below. 
 1. Principal. The Payee shall be obligated to lend to the Maker amounts up to the Maximum Principal Amount. The principal balance
of this Note, as reflected on Schedule A hereto (such Schedule to be updated from time to time by the Maker as amounts are borrowed from the Payee up to the Maximum Principal Amount) shall be repayable on the date (the “Maturity
Date”) on which the Maker consummates a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Initial Business
Combination”). No amount shall be due under this Note if such Initial Business Combination is not consummated on or before July 8, 2023. 
 2.
Interest. This Note shall bear no interest. 
 3. Application of Payments. All payments shall be applied first to payment in full of any costs
incurred in the collection of any sum due under this Note, including (without limitation) reasonable attorneys’ fees, then to the payment in full of any late charges and finally to the reduction of the unpaid principal balance of this Note.

 4. Conversion. At the Maturity Date, by providing written notice to Maker, Payee may elect to convert any portion or all of the amount outstanding
under this Note, up to a maximum of $1,500,000, into units of the entity surviving or resulting from the Initial Business Combination at a conversion price of $10.00 per unit. The terms and conditions of such units shall be as described in the
registration statement and prospectus filed with the Securities and Exchange Commission in connection with the IPO (together, the “Registration Statement”). 

5. Events of Default. The following shall constitute Events of Default: 

(a) Failure to Make Required Payments. Failure by the Maker to pay the principal of, or other payments on, this Note within five
(5) business days following the date when due. 
 6. Remedies. 

(a) Upon the occurrence of an Event of Default specified in Section 5(a), the Payee may, by written notice to the Maker, declare
this Note to be due and payable, whereupon the principal amount of this Note, and all other amounts payable under this Note, shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding. 

 7. Waivers. The Maker and all endorsers and guarantors of, and sureties for, this Note waive
presentment for payment, demand, notice of dishonor, protest, and notice of protest with regard to this Note, all errors, defects and imperfections in any proceedings instituted by the Payee under the terms of this Note, and all benefits that might
accrue to the Maker by virtue of any present or future laws exempting any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution, or providing for any stay of
execution, exemption from civil process, or extension of time for payment; and the Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may be sold upon
any such writ in whole or in part in any order desired by the Payee. 
 8. Unconditional Liability. The Maker hereby waives all notices in connection
with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party, and shall not be affected in any manner by any
indulgence, extension of time, renewal, waiver or modification granted or consented to by the Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by the Payee with respect to the payment or
other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may become parties hereto without notice to them or affecting their liability hereunder. 

9. Notices. Any notice called for hereunder shall be deemed properly given if (i) sent by certified mail, return receipt requested,
(ii) personally delivered, (iii) dispatched by any form of private or governmental express mail or delivery service providing receipted delivery, (iv) sent by facsimile or (v) sent by
e-mail, to the following addresses or to such other address as either party may designate by notice in accordance with this Section: 

If to the Maker: 
 Phoenix
Biotech Acquisition Corp. 
 2201 Broadway, Suite 705 

Oakland CA 94612 
 Attention:
Daniel Geffken 
 Email: dgeffken@danforthadvisors.com 

If to the Payee: 
 Phoenix
Biotech Sponsor, LLC 
 2201 Broadway, Suite 705 

Oakland CA 94612 
 Attention:
Chris Ehrlich 
 Email: chris@phoenixbiotechacquisitioncorp.com 

Notice shall be deemed given on the earlier of (i) actual receipt by the receiving party, (ii) the date shown on a facsimile transmission
confirmation, (iii) the date on which an e-mail transmission was received by the receiving party’s on-line access provider, (iv) the date reflected on a
signed delivery receipt, or (v) two (2) business days following tender of delivery or dispatch by express mail or delivery service. 
 10.
Construction. THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF. 

11. Severability. Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. 

 12. Trust Waiver. Notwithstanding anything herein to the contrary, the Payee hereby waives any and
all right, title, interest or claim of any kind (“Claim”) in or to any distribution of the trust account in which the proceeds of the Maker’s IPO and the proceeds of the sale of the securities issued in a private
placement consummated concurrently with the Maker’s IPO have been deposited, as described in greater detail in the Registration Statement and prospectus filed with the Securities and Exchange Commission in connection with the IPO, and hereby
agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the trust account for any reason whatsoever. 
 13. Amendment;
Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of the Maker and the Payee. 

14. Assignment. No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law or
otherwise) without the prior written consent of the other party hereto and any attempted assignment without the required consent shall be void. 

[Signature Page Follows] 

 IN WITNESS WHEREOF, the Maker, intending to be legally bound hereby, has caused this
Note to be duly executed the day and year first above written. 
  

			
	PHOENIX BIOTECH ACQUISITION CORP.
		
	By:	 	 /s/ Chris Ehrlich

	Name:	 	Chris Ehrlich
	Title:	 	Chief Executive Officer

 Schedule A 

 

							
	 Date
	  	 Payee
	  	Principal Amount	 
	 December 20, 2022
	  	Phoenix Biotech Sponsor, LLC	  	$	1,500,000

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