Document:

EXHIBIT 4.4
                                    TAT PIPE

                            SHARE PURCHASE AGREEMENT
                            ------------------------

         THIS AGREEMENT (the "Agreement") is made as of June 15, 2004 (the
"Effective Date"), by and between (i) TAT Technologies Ltd. ("TAT"), an Israeli
company whose shares are traded on Nasdaq, and (ii) TA-TOP, Limited Partnership
(the "Investor"), a limited partnership wholly owned by (x) TA-TEK Ltd., an
Israeli private company, wholly owned by FIMI Opportunity Fund, L.P., a limited
partnership formed under the laws of the State of Delaware, and by (y) FIMI
Israel Opportunity Fund, Limited Partnership, a limited partnership, registered
in Israel. TAT and the Investor each, a "Party" and, collectively, the
"Parties".

WITNESSETH:

                   WHEREAS, the Investor desires to invest in the share capital
of TAT, by purchasing 857,143 Ordinary Shares of TAT, nominal value NIS 0.90
each (the "Shares"), upon the terms and subject to the conditions set forth in
this Agreement; and

                    WHEREAS, the Board of Directors of TAT has resolved to enter
into this Agreement for the issue and sale of the Shares to the Investor, all
upon the terms and subject to the conditions set forth in this Agreement.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
set forth herein, the parties hereto hereby agree as follows:

1.1    Definitions
       -----------

In this Agreement, each of the following terms shall have the respective meaning
appearing next to it, if not inconsistent with the subject or context:

<TABLE>
<CAPTION>
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<S>                         <C>
"Agreement"-                has the meaning ascribed to such term in the preamble.
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"Applicable Law"-           has the meaning ascribed to such term in Section 3.9.
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"Closing" and
"Closing Date-              have the meaning ascribed to such terms in Section 2.1.
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"Condition Precedent"-      has the meaning ascribed to such term in Section 6.1.
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"Confidential
Information"-               has the meaning ascribed to such term in Section 5.2.
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Compliance Certificate"-    has the meaning ascribed to such term in Section 2.2.(1)(d).
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"Credit Line Agreement"-    has the meaning ascribed to such term in Section 6.1(d).
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"Damages"-                  has the meaning ascribed to such term in Section 7.2.
--------------------------- --------------------------------------------------------------------------------
</TABLE>

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                              TAT Technologies PIPE
<TABLE>
<CAPTION>
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<S>                         <C>
"Effective Date"-           has the meaning ascribed to such term in the preamble.
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"Encumbrance"-              has the meaning ascribed to such term in Section 3.3.(c)(3).
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"Engagement Agreements"-    has the meaning ascribed to such term in Section 2.2.(1)(b).
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"Environmental Law"-        has the meaning ascribed to such term in Section 3.14.
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"Exchange Act"-             has the meaning ascribed to such term in Section 3.6(a).
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"2000 20-F"-                has the meaning ascribed to such term in Section 3.1.
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"2002-2003 Financial        has the meaning ascribed to such term in Section 3.6(b).
Statements"-
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"Governmental Entity"-      has the meaning ascribed to such term in Section 3.5.
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"Investor"-                 has the meaning ascribed to such term in the preamble.
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"Investor Conditions"-      has the meaning ascribed to such term in Section 6.1.
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"Knowledge"-                has the meaning ascribed to such term in Section 3.10(a).
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"Management Fee"-           has the meaning ascribed to such term in Section 5A.
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Material Adverse Effect"-   has the meaning ascribed to such term in Section 3.1.
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"Material and "Material     have the meaning ascribed to such terms in Section 3.11(a).
Agreements"-
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"Ordinary Shares"-          has the meaning ascribed to such term in Section 3.3.
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"Outstanding Options"-      has the meaning ascribed to such term in Section 3.3.
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"Party" or "Parties"-       have the meaning ascribed to such terms in the preamble.
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"Purchase Price"-           has the meaning ascribed to such term in Section 1.2.
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"SEC"-                      has the meaning ascribed to such term in Section 3.6(a).
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"Securities Act"-           has the meaning ascribed to such term in Section 3.6.(a).
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"Services"-                 has the meaning ascribed to such term in Section 5A.
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"Shares"-                   has the meaning ascribed to such term in the preamble.
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"Shareholders Agreement"-   has the meaning ascribed to such term in Section 6.1(d).
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</TABLE>

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                              TAT Technologies PIPE

<TABLE>
<CAPTION>
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<S>                         <C>
"Subsidiary" or             has the meaning ascribed to such term in Section 3.1.
"Subsidiaries"-
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"Registration Rights        has the meaning ascribed to such term in Section 6.1(d).
Agreement"-
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"Representations and        has the meaning ascribed to such term in Section 7.1.
Warranties Period"-
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"Required Approvals and     has the meaning ascribed to it in Section 3.5.
Notices"-
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"TAT"-                      means TAT Technologies Ltd.
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"TAT Conditions"-           has the meaning ascribed to such term in Section 6.2.
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"TAT Industries"-           means TAT Industries Ltd.
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"TAT SEC Reports"-          has the meaning ascribed to such term in Section 3.6(a).
----------------------------------------------------------------------------------------

"Trade Secrets"-            has the meaning ascribed to such term in Section 3.10(a).
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"Transaction Documents"-    has the meaning ascribed to such term in Section 2.2.(1)(a).
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"Warrant Agreement"-        has the meaning ascribed to such term in Section 6.1(d).
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</TABLE>

1.2. Issue of Shares
     ---------------

 Upon the terms and subject to the conditions set forth in this Agreement, at
 the Closing (as defined in Section 2.1 below) the Investor agrees to purchase,
 and TAT agrees to issue to the Investor, the Shares, at a price per Share of
 $7.00, and an aggregate purchase price of $6,000,001 (Six Million and One US
 Dollars) (the "Purchase Price").

2.   Closing
     -------

 2.1 The Closing. The Parties shall hold the closing (the "Closing") at the
 offices of _______________, on the 12th business day following the date on
 which the last of the Conditions Precedent under Section 6.3 below is fulfilled
 (provided that all other Closing conditions have been either met or waived, in
 accordance with the provisions contained herein) or at such other place and
 later date as the Parties shall agree (the "Closing Date").

 2.2. Actions at the Closing. At the Closing, the following actions shall be
 carried out, which actions shall be deemed to take place simultaneously and no
 actions shall be deemed to have been completed or any required document
 delivered until all such actions have been completed and all required documents
 delivered:

 (1) The Investor shall have received from TAT the following documents:

             (a) True and correct copies of the resolutions of TAT's Board of
Directors

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                              TAT Technologies PIPE

 approving (i) the execution of this Agreement and the performance of the
 transactions contemplated herein, including the issuance, at the Closing, of
 the Shares to the Investor subject to the provisions contained herein, (ii) the
 execution of the Warrant Agreement (as defined below) and the grant of the
 non-assignable Warrant (as such term is defined in the Warrant Agreement) to
 the Investor, pursuant to the provisions contained therein, which shall become
 effective upon the Closing, (iii) the execution of the Credit Line Agreement
 (as defined below), which shall become effective as of the Closing, (iv) the
 Management Fee arrangement (as more fully set forth below) which shall become
 effective as of the Closing, and (v) the execution of the Registration Rights
 Agreement (as defined below) which shall become effective as of the Closing.
 This Agreement, the Warrant Agreement, the Credit Line Agreement and the
 Registration Rights Agreement shall be referred to herein, collectively, as the
 "Transaction Documents".

           (b) True and correct copies of the resolutions of TAT's shareholders
 approving (i) the transactions contemplated in the Transaction Documents, (ii)
 the amendment of the Articles of Association of TAT, in the manner more fully
 set forth in the amended Articles of Association , (ii) the approval of the
 Engagement Agreements (the "Engagement Agreements") between TAT and each of Mr.
 Shlomo Ostersetzer and Mr. Dov Zeelim, and (iv) the election to TAT's Board of
 Directors of three members designated by the Investor, of which one shall meet
 the definition of an independent director for the purposes of Nasdaq. The forms
 of the resolution of TAT's shareholders, the amended Articles of Association
 and the Engagement Agreements are attached hereto as Exhibit 2.2.1(b); and

            (c) An opinion of the counsel to TAT, substantially in the form of
Exhibit 2.2.1(c) to this Agreement; and

            (d) A certificate duly executed by an officer of TAT dated as of the
 Closing Date (the "Compliance Certificate") in the form attached hereto as
 Schedule 2.2.1(d).

 (2) TAT shall have obtained, and delivered to the Investor copies of, the
Required Approvals and Notices (as defined below).

 (3) The Investor shall have received a letter from Gal-Tek Ltd., in the form
 attached hereto as Exhibit 2.2(3), which shall be effective as of the Closing.

 (4) The Investor shall have provided TAT with an opinion of the counsel to the
 Investor, substantially in the form of Exhibit 2.2.4 to this Agreement.

 (5) The Investor shall pay the Purchase Price to TAT by wire transfer of
 immediately available funds to the following bank account at Union Bank of
 Israel Ltd. (branch no.: 062 (Diamond Exchange Branch, Ramat-Gan)): Account no.
 407000/54 and will obtain confirmation from its bank that the Purchase Price
 has been transferred in accordance with the wire transfer instructions provided
 to it (a copy of which will be delivered to TAT at the Closing), against the
 receipt of the Shares and the Warrant.

 3. Representations and Warranties of TAT
    -------------------------------------

 TAT hereby represents and warrants to the Investor, and acknowledges that the
Investor

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                              TAT Technologies PIPE

 is entering into the Investment Agreements, in reliance thereon, as follows:

 3.1 Organization. TAT is a company duly organized and validly existing under
 the laws of the State of Israel. TAT is duly qualified to conduct its business,
 and (with respect to those jurisdictions in which the concept of good standing
 is relevant) is in good standing, in each jurisdiction where the character of
 its properties owned, operated or leased or the nature of its activities makes
 such qualification necessary, except for such failures which would not
 reasonably be likely to have a Material Adverse Effect (as defined below). TAT
 has the requisite corporate power and authority and any necessary governmental
 authority, franchise, license or permit to own, operate, lease and otherwise to
 hold and operate its assets and properties and to carry on its businesses as
 now being conducted, except for such failures which would not reasonably be
 likely to have a Material Adverse Effect. The Annual Report of TAT filed on
 Form 20-F for the Year 2002 (the "2002 20-F"), a copy of which has been
 provided to the Investor, accurately sets forth each entity in which TAT owns
 at least 50% of either the voting shares and/or the equity (each of the
 aforesaid, a "Subsidiary" and, collectively, the "Subsidiaries") and all other
 equity or similar interests, or any interest convertible or exchangeable or
 exercisable for any such equity or similar interest, in any other entities held
 by TAT or any Subsidiary, excluding any immaterial marketable securities held
 by TAT or any of its Subsidiaries as part of the investment portfolio in their
 ordinary course of business.

 As used herein, the term "Material Adverse Effect" means any material adverse
 effect on the business, as conducted by, the assets, financial condition,
 liabilities or operations of TAT and its Subsidiaries taken as a whole.

 3.2 Organizational Documents. Set forth in Schedule 3.2 attached hereto is a
 complete and correct copy of the Memorandum and the Articles of Association of
 TAT, as amended to date. All of such organizational documents are in full force
 and effect.

 3.3 Capitalization.

 (a) The registered share capital of TAT as of the date of this Agreement is NIS
 6,300,000, divided into 7,000,000 Ordinary Shares, nominal value NIS 0.90 each
 (the "Ordinary Shares"), of which 4,663,381 Ordinary Shares are issued and
 outstanding. In addition, TAT has issued options and warrants (including
 employee and consultant options) to purchase up to 798,635 Ordinary Shares (the
 "Outstanding Options"). Except for the foregoing and for the transactions
 contemplated by this Agreement, there are no other shares, convertible
 securities, outstanding warrants, options, or other rights to subscribe for,
 purchase, or acquire from TAT any securities of TAT, and there are no contracts
 or binding commitments providing for the issuance of, or the granting of rights
 to acquire from TAT, any securities of TAT or under which TAT is, or may
 become, obligated to issue any of its securities.

 (b) There are no bonds, debentures, notes or other indebtedness having the
 right to vote on any matters on which TAT's shareholders may vote issued or
 outstanding. There are no outstanding contractual obligations of TAT or any of
 its Subsidiaries to repurchase, redeem or otherwise acquire any of TAT's share
 capital. All of the issued and outstanding share capital of TAT has been duly
 authorized and validly issued and is

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                              TAT Technologies PIPE

 fully paid and nonassessable.

 (c)(1) All of the Shares issuable in accordance with of this Agreement will be,
 when fully paid up as provided in this Agreement, and so issued, duly
 authorized, validly issued, fully paid and nonassessable, shall not be subject
 to call, forfeiture or preemptive rights, shall be delivered free and clear of
 all Encumbrances (as defined below).

     (2) The non-assignable Warrant granted in accordance with the provisions of
 this Agreement and the Warrant Agreement, when granted at the Closing, shall be
 duly authorized, validly granted, shall not be subject to call, forfeiture or
 preemptive rights, and shall be delivered free and clear of all Encumbrances.

     (3) All of the Ordinary Shares, issuable upon the exercise of the Warrant
 in accordance with the provisions of the Warrant Agreement will be, upon
 payment of the Exercise Price (as defined in the Warrant Agreement), duly
 authorized, validly issued, fully paid and nonassessable, shall not be subject
 to call, forfeiture or preemptive rights and shall be delivered free and clear
 of all Encumbrances.

 The term "Encumbrance" means and includes any interest or equity of any person
 (including any right to acquire, option, or right of preemption) or any
 mortgage, charge, pledge, lien, or assignment, or any other encumbrance or
 security interest or arrangement of whatsoever nature over or in the relevant
 property.

 3.4 Authority. Subject to the Conditions Precedent under Section 6 below, TAT
 has the necessary corporate power and authority to enter into the TAT
 Transaction Documents and each of the other agreements, certificates or other
 instruments required to be delivered hereunder at or prior to Closing and to
 perform its obligations hereunder and thereunder and to consummate the
 transactions contemplated hereby and thereby. The execution and delivery of
 this Agreement and each of the other Transaction Documents by TAT and the
 consummation by TAT of the transactions contemplated hereby and thereby shall
 have been, at the Closing (assuming the satisfaction of the Condition
 Precedent), duly and validly authorized by all necessary corporate action, and
 no other corporate proceedings on the part of TAT shall be necessary to
 authorize this Agreement and each of the other Transaction Documents or to
 consummate the transactions contemplated hereby and thereby. The Transaction
 Documents shall be deemed as of the Closing to be duly executed and delivered
 by TAT and, (assuming the satisfaction of the Condition Precedent) and the due
 authorization, execution and delivery by the Investor, constitute legal, valid
 and binding obligations of TAT, enforceable in accordance with their terms,
 except as such enforceability may be limited by liquidation, insolvency,
 reorganization, moratorium and other similar laws of general applicability
 relating to or affecting creditors' rights generally and by the application of
 general principles of equity.

 3.5 No Conflict; Required Filings and Consents.

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                              TAT Technologies PIPE

 Subject to satisfaction of all the Conditions Precedent under Section 6 below:

 (a) The execution and delivery by TAT of this Agreement and each of the other
 Transaction Documents and the performance by TAT of its obligations under this
 Agreement and each of the other Transaction Documents, will not, with or
 without the giving of notice or the lapse of time or both, (i) conflict with or
 violate the organizational documents of TAT or any of its Subsidiaries, (ii)
 subject to obtaining the Required Approvals and Notices (as defined below),
 conflict with or violate any law, statute, ordinance, rule, regulation, order,
 judgment or decree applicable to TAT or any Subsidiary or by which any of their
 respective properties or assets is bound or affected, or (iii) result in any
 breach of or constitute a default under, or give to others any rights of
 termination, amendment, acceleration or cancellation of any Material Agreement
 (as defined below), or result in the creation of any Encumbrance on the
 properties or assets of TAT pursuant to, any note, bond, mortgage, indenture,
 contract, agreement, lease, license, permit, franchise or other instrument or
 obligation to which TAT is a party or by which TAT is bound or affected.

 (b) The execution and delivery by TAT of this Agreement and the other
 Transaction Documents does not, and the performance by TAT of its obligations
 under this Agreement and the other Transaction Documents, will not, require any
 consent, approval, authorization or permit of or filing with or notification
 to, any Governmental Entity (as defined below), by or with respect to TAT,
 except (i) for applicable requirements, if any, of the consents, approvals,
 authorizations, permits or notification described in Schedule 3.5 (the
 "Required Approvals and Notices"), and (ii) where failure to obtain the
 required consents, approvals, authorizations or permits, or to make such
 filings or notifications, (A) would not prevent or delay consummation of any of
 the transactions contemplated by this Agreement or any other Transaction
 Document in any material respect, or otherwise prevent TAT from performing its
 obligations under this Agreement or any other Transaction Document in any
 material respect, and (B) would not reasonably be likely to have a Material
 Adverse Effect. As used herein the term "Governmental Entity" means any Israeli
 or U.S. entity exercising executive, legislative, judicial, regulatory or
 administrative function of or pertaining to government.

 3.6 SEC Filings; Financial Statements.

(a) To TAT's knowledge, based on the advise of its U.S. securities counsel, it
has filed all forms, reports, statements and other documents required to be
filed with the Securities and Exchange Commission ("SEC") during the three year
period immediately prior to the Closing Date, and has heretofore delivered to
counsel for the Investor, in the form filed with the SEC since such date,
together with any amendments thereto, all (i) Annual Reports on Form 20-F, and
(ii) all proxy statements relating to meetings of shareholders (whether annual
or special) (collectively, the "TAT SEC Reports"). To TAT's knowledge, based on
the advise of its U.S. securities counsel, as of their respective filing or
publication dates, the TAT SEC Reports complied as to form in all material
respects with the requirements of the United States Securities Exchange Act of
1934 (the "Exchange Act") and the United States Securities Act of 1933, as
amended (the "Securities Act"). To TAT's knowledge, based on the advise of its
U.S. securities

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                              TAT Technologies PIPE

counsel, the TAT SEC Reports did not at the time they were filed or published,
respectively, contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

 (b) The audited consolidated financial statements of TAT for the years ended on
 December 31, 2002 and December 31, 2003 (collectively, the "2002-2003 Financial
 Statements") comply as to form in all material respects with applicable
 accounting requirements. The Financial Statements, including all related notes
 and schedules, present fairly in all material respects the financial position
 of TAT as at the respective dates thereof and the results of operations and
 cash flows of TAT for the periods indicated, in accordance with United States
 GAAP, with respect to TAT's audited consolidated financial statements for the
 year ended on December 31, 2002 and in accordance with Israeli GAAP, with
 respect to TAT's audited consolidated financial statements for the year ended
 on December 31, 2003.

 3.7 Operations in the Ordinary Course. Except as set forth in Schedule 3.7
 attached hereto, between January 1, 2004 and the date of this Agreement, TAT
 has operated its business in the ordinary course consistent with past practices
 and has not suffered any Material Adverse Effect.

 3.8 Litigation. Except as set forth in Schedule 3.8 attached hereto, there are
 no claims, actions or proceedings pending or, to TAT's knowledge, threatened
 against TAT or any of its Subsidiaries, any of their respective properties or
 to TAT's knowledge, any of their respective officers or directors before any
 court, arbitration or mediation or regulatory authority or body, domestic or
 foreign, that individually or in the aggregate (i) would reasonably be likely
 to, or if adversely decided may be expected to, have a Material Adverse Effect,
 or (ii) challenge or seek to prevent, enjoin, alter or materially delay the
 transactions contemplated by this Agreement.

 3.9 Licenses and Permits; Compliance with Laws. To TAT's knowledge, it does not
 lack permits, licenses, authorizations or approvals, and is not in material
 violation of Applicable Law or any permits, licenses, authorizations and
 approvals that have been obtained by it, which the failure to obtain or such
 violation, as applicable, would reasonably be likely to have a Material Adverse
 Effect. As used herein, the term "Applicable Law" means any provision of any
 statute, law, ordinance, rule, regulation, decree, order, grant, permit or
 license or other governmental authorization or approval applicable to TAT.

 3.10 Trade Secrets.

 (a) To TAT's Knowledge (as defined below), TAT and its Subsidiaries have the
 right to use all its trade secrets, including know-how, material computer
 programs, documentation, processes, and technology which can reasonably be
 anticipated to be material to the conduct of the businesses of TAT and its
 Subsidiaries, taken as a whole, as conducted by TAT as of the date hereof (all
 of the foregoing items collectively referred to as the "Trade Secrets").

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                              TAT Technologies PIPE

For purposes of this Section 3.10 and Section 3.14 below, "Knowledge" shall be
deemed to refer to the knowledge of reasonable managerial staff (which term
shall refer to any person who, either formally or in substance, serves as a
director, chief executive officer (CEO) or chief operating officer (COO), or any
other senior executive who reports directly to the chief executive officer). For
these purposes, if such managerial staff has not received any claims with
respect to manufacturing processes and know-how that have been utilized
consistently, or to products that have been sold, over a reasonably long period
of time, such managerial staff shall be deemed to have acted reasonably when
making the representations set forth in this Section 3.10 and Section 3.14
below, without conducting any special searches or investigation.

 (b) (i) no proceedings are pending or, to TAT's Knowledge, threatened, which
 challenge the use by TAT or any of the Subsidiaries of TAT of the Trade Secrets
 could have, if resolved unfavorably to TAT, a Material Adverse Effect; (ii) to
 TAT's Knowledge, no material infringement by TAT of any intellectual property
 right or other proprietary right of any third party has occurred, or will
 result in any way from the signing and execution of this Agreement or any of
 the other Transaction Documents or the consummation of any or all of the
 transactions contemplated hereby and thereby, and, no claim has been made by
 any third party based upon an allegation of any such infringement; and (iii) to
 TAT's Knowledge, there are no restrictions on the direct or indirect transfer
 of any license, or any interest therein, held by TAT or any Subsidiary in
 respect of the Trade Secrets.

 (c) No claim has been made in the last seven years prior to the date hereof by
 any third party that the use, disclosure or appropriation of Confidential
 Information not owned by TAT or any Subsidiary has been in material violation
 of the terms of a written agreement between TAT or such Subsidiary and the
 owner of such Confidential Information, or is otherwise materially unlawful.
 3.11  Material Agreements and Claims

 TAT has delivered to the Investor a true and full copy of each of the material
 agreements, in effect on the date hereof, to which TAT or any of its
 Subsidiaries is a party (including all agreements with TAT Industries and the
 agreements referred to in TAT's filings) (the "Material Agreements").

 For purposes of this Agreement, "Material" shall be determined based on the
 criteria for inclusion in TAT's 20-F filings.

 Except as set forth in Schedule 3.11(a) attached hereto, such Material
 Agreements are valid and in full force and effect on the date hereof, and
 neither TAT nor, to TAT's knowledge, any other party, has violated any material
 provision thereof, or committed or failed to perform any material act which
 with or without notice, lapse of time or both would constitute a fundamental
 beach under the provisions of, any Material Agreement except for violations or
 defaults which would not reasonably be likely to have a Material Adverse
 Effect. The enforceability of any Material Agreement will not be affected in
 any manner by, the existence of this Agreement and the Transaction Documents,
 or the consummation of the transactions contemplated hereunder or thereunder.

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                              TAT Technologies PIPE

 3.12 Employees

 TAT has delivered to the Investor complete copies of the material
 employment/engagement agreements currently in force for each of the five most
 highly paid individuals employed by TAT or any of its Subsidiaries, including
 TAT's CEO and Chairman of the Board of Directors and the President, both of
 which shall be amended by the Engagement Agreements, as of the Closing.

 3.13 Labor Relations. There is not now or has been threatened any material
 labor dispute, strike, slow-down, picketing, work-stoppage, or other similar
 labor activity with respect to the employees of TAT.

 3.14 Environmental Matters. Except as set forth in Exhibit 3.14 attached
 hereto, to TAT's Knowledge, TAT and each of its Subsidiaries, is in material
 compliance with applicable material environmental laws and regulations
 ("Environmental Laws") in effect on the date hereof.

 3.15 Taxation. To TAT's knowledge and based on the advice of experts (employed
 by TAT's C.P.A), the Financial Statements as of December 31, 2003 make adequate
 provisions for taxation for which TAT is liable which has accrued, on or before
 December 31, 2003; provided, however, that based on prior experience, there may
 be deficiencies of not more than an aggregate of $100,000 with respect to
 withholding tax.

 3.16 Insurance. To TAT's knowledge, and due to advice of its insurance agent,
 TAT has the benefit of adequate insurance against such risks as are usually and
 reasonably insured against by companies carrying on similar business.

 3.17 Brokers. Except as set forth in Schedule 3.17, no person or firm has, or
 will have, as a result of any act or omission by TAT or anyone acting on behalf
 of TAT, any right, interest or valid claim against TAT or the Investor for any
 commission, fee or other compensation as a finder or broker or in any similar
 capacity with respect to the transactions contemplated under this Agreement.

 3.18 Representations Complete. None of the representations or warranties made
 by TAT herein or in any Schedule or Exhibit hereto contain or will contain at
 the Closing Date (subject to the Compliance Certificate) any untrue statement
 of a material fact, or omit or will omit at the Closing Date to state any
 material fact necessary in order to make the statements contained herein or
 therein, in the light of the circumstances under which they were made, not
 misleading.

 4.   Representations and Warranties of the Investor
      ----------------------------------------------

 The Investor hereby represents and warrants to TAT and acknowledges that TAT is
 entering into the TAT Transaction Documents in reliance thereon, as follows:

 4.1 This Agreement and the other Transaction Documents, constitute  valid,
 binding, and enforceable obligations of the Investor.

 4.2 The Investor is an entity duly organized and validly existing under the
 laws of

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                              TAT Technologies PIPE

 the State of Israel, and has all requisite power and authority to carry out the
 transactions contemplated hereby and under the Transaction Documents, and the
 execution, delivery and performance of the obligations of the Investor
 hereunder have been duly authorized by all necessary corporate action.

 4.3 The Investor acknowledges that the offering and sale of the Shares is
 intended to be exempt from registration under the Securities Act by virtue of
 Section 4(2) of the United States Securities Act and the provisions of
 Regulation D there under. The Investor is a special purpose vehicle formed for
 the purpose of effecting the transactions contemplated herein. Each of the
 entities beneficially owning the Investor (whether directly or indirectly) is
 an "Accredited Investor", as such term is defined under Regulation D, and that
 such entity is a sophisticated investor that has experience in business and
 financial matters and is capable of evaluating the merits and risks relevant to
 TAT, its business, the markets in which TAT and Limco operate and to the
 transactions contemplated by this Agreement and the other Transaction
 Documents. For the purpose of clarity, it is hereby clarified that the Investor
 is aware of the fact that TAT is engaged in product manufacturing and sales in
 the aviation field of business and is, therefore, exposed to certain risks
 which are inherent to companies involved in product manufacturing and sales in
 such field of business.

 4.4 Without derogating from the representations and warranties set forth in
 Section 3 above, the Investor and its auditors, legal counsels and other
 representatives have been given access to information regarding TAT and Limco
 and have utilized that access to their satisfaction in order to receive all
 such information as they considered necessary, required and advisable for
 deciding whether to enter into the investment contemplated by this Agreement
 and the other Transaction Documents, including but not limited to, the
 subscription for the Shares hereunder.

 4.5 The execution and delivery of this Agreement and the other Transaction
 Documents, and the consummation of the transactions and the Investor's
 performance of its obligations herein and therein contemplated will not,
 whether with or without giving notice or the lapse of time or both (i) result
 in any conflict with, breach of, or default (or give rise to any right of
 termination, cancellation or acceleration or the loss of any benefit) under any
 of the terms, conditions or provisions of the Investor's organizational
 documents or of any material agreement, permit or other instrument or
 obligation to which the Investor is a party or is bound, or (ii) violate any
 law or regulation, or any order, injunction, or judgment of any court or any
 governmental bureau or agency, domestic or foreign applicable to the Investor.
 No consent or approval by any governmental authority is required in connection
 with the execution by the Investor of this Agreement and the other Transaction
 Documents, or the consummation by the Investor of the transactions contemplated
 hereby and thereby except for such actions, consents or approvals as have been
 obtained or will be obtained as of the Closing.

 4.6 No Finders Fee. Except as set forth in Exhibit 4.6, no person or firm has,
 or will have, as a result of any act or omission by the Investor or anyone
 acting on its behalf, any right, interest or valid claim against TAT for any
 commission, fee or other compensation as a finder or broker or in any similar
 capacity, with respect to any of the transactions contemplated under this
 Agreement.

                                       11

<PAGE>

                              TAT Technologies PIPE

 5.   Confidentiality.
      ---------------

 5.1 Without derogating from the non-disclosure undertaking executed by the
 Investor on January 19, 2004, the Investor undertakes that any Confidential
 Information (defined below) obtained or which shall be obtained in connection
 with the transactions contemplated herein and in the Transaction Documents,
 including information to be provided to the Investor prior to or following the
 Closing, will not be disclosed without the prior written consent of TAT.

 5.2 For the purposes of this Agreement, "Confidential Information" shall mean
 all information, including, but not limited to, financial information, business
 plans, budgets, customer lists, computer software, source codes, plans,
 drawings, technical specifications, patents, copyrights, and other intellectual
 property rights, in any form (paper, disk, or other), relating to the business
 of TAT and its Subsidiaries. However, Confidential Information shall not
 include information which (a) was in the Investor's possession prior to its
 disclosure; (b) is or becomes available to the public through no fault of the
 Investor; (c) is required by law to be disclosed by the Investor, provided that
 the Investor gives TAT immediate written notice of such requirement prior to
 such disclosure; or (d) is rightfully received by the Investor from a third
 party without a duty of confidentiality.

 5.A Management Fee.
     --------------

 During the Term (as defined in the Shareholders Agreement), the Investor shall
 provide the Company with various management and consulting services (the
 "Services"), as shall be mutually determined by the Company and the Investor
 from time to time. Without derogating from the generality of the foregoing, the
 Services shall include service on the Company's Board of Directors of the two
 directors designated by the Investor, strategic guidance and consulting
 services to the Company (which, for illustration purposes only, may include
 introduction to potential customers and investors, consulting services with
 respect to the business and strategic alliances) as well as guidance and
 consulting services in connection with the management of the Company's
 Subsidiaries. The Services shall be provided on an as needed basis, as shall be
 mutually determined by the Company and the Investor from time to time.

 For such Services, TAT shall pay the Investor annual management fees (the
 "Management Fee") in accordance with the provisions contained in this Section
 5A. The Management Fees shall be payable immediately following TAT's approval
 of its quarterly audited or reviewed consolidated financial statements for each
 of the first three fiscal quarters of the year and shall be equal to 3% of the
 excess of (w) TAT's operating income ("Revach Tifuli") for the applicable
 quarter, over (x) US$125,000, supplemented by applicable Value Added Tax
 ("VAT"); provided, however, that

                   (A) immediately following TAT's approval of the annual
 consolidated financial statements of TAT for the calendar year (excluding 2004
 and the last year of the Term, provided that it is not a full calendar year)
 then ended (prepared in accordance with U.S. GAAP), the Investor shall promptly
 receive (a) 3% of the excess of (y) TAT's operating income for the applicable
 year, over (z) US$500,000, less (b) the aggregate

                                       12

<PAGE>

                              TAT Technologies PIPE

 amount paid to the Investor in the three preceding fiscal quarters as set forth
 above (or, in the event that (b) exceeds (a) promptly return the excess amount
 to TAT); and

                  (B) in any event, the Management Fee shall not exceed an
 aggregate of US$250,000 per annum (pro rated for parts of a calendar year).

 6.   Conditions to Closing
      ---------------------

 6.1 Conditions to the Obligation of the Investor to Close. The obligation
 hereunder of the Investor to purchase the Shares and pay the Purchase Price is
 subject to the satisfaction of the Conditions Precedent set forth in Section
 6.3 below (the "Conditions Precedent") and to the fulfillment at or before the
 Closing of the following Closing conditions (the "Investor Conditions"), any
 one or more of the Investor Conditions may be waived in writing, in whole or in
 part, by the Investor, which waiver shall be at the sole discretion of the
 Investor.

             (a) Accuracy of TAT's Representations and Warranties. Each of the
 representations and warranties of TAT shall be true and correct in all material
 respects as of the date when made and as of the Closing as though made on that
 time.

             (b) Performance by TAT. TAT shall have performed, satisfied and
 complied in all material respects with all conditions required by this
 Agreement to be performed

             (c) All Deliverables Ready. All documents and other items to be
 delivered to the Investor at the Closing as specified in Section 2.2 above,
 shall be duly executed, ready for delivery to the Investor, and in form and
 substance reasonably satisfactory to counsel for Investor

             (d) The following documents, executed on the Effective Date, shall
 have come into effect as of the Closing: (i) the Registration Rights Agreement
 (the "Registration Rights Agreement") attached hereto as Exhibit 6.1(d)(i),
 (ii) the Warrant Agreement (the "Warrant Agreement"), attached hereto as
 Exhibit 6.1(d)(ii), (iii) the Credit Line Agreement (the "Credit Line
 Agreement") attached hereto as Exhibit 6.1(d)(iii), and (iv) the shareholders'
 agreement (the "Shareholders Agreement") between the Investor and TAT
 Industries Ltd.

             (e) Capitalization. Except for any exercise of Outstanding Options,
 the share capital of TAT at the Closing shall be as described in Section 3.3(a)
 above.

 6.2. Conditions to the Obligation of TAT to Close. The obligations hereunder of
 TAT to issue and sell the Shares and to grant the Warrant to the Investor are
 subject to the satisfaction of the Conditions Precedent and the fulfillment at
 or before the Closing of the following Closing conditions (the "TAT
 Conditions"), any one or more of the TAT Conditions may be waived in writing,
 in whole or in part, by TAT, which waiver shall be at the sole discretion of
 TAT.

 (a) Accuracy of the Investor Representations and Warranties. Each of the
 representations and warranties of the Investor shall be true and correct in all
 material

                                       13

<PAGE>

                              TAT Technologies PIPE

 respects as of the date when made and as of the Closing, as though made at that
 time.

 (b) Performance by the Investor. The Investor shall have performed, satisfied
 and complied in all material respects with all conditions required by this
 Agreement to be performed.

 (c) The Engagement Agreements shall have been executed and duly adopted by TAT
 and the agreements listed in Section 6(1)(d)(i)-(iv) shall have come into
 effect.

 6.3. The transactions contemplated herein and in the Transaction Documents are
 subject to the satisfaction and fulfillment of the following Conditions
 Precedent, which may not be waived in whole or in part by the Parties, unless
 permitted by applicable law, in which case, such waiver shall require the
 mutual consent of both Parties, at their sole discretion:

 (a) The General Meeting of TAT's shareholders shall have approved the
 resolutions more fully set forth in Section 2.2.1(b) above.

 (b) The General Meeting of Shareholders of TAT Industries shall have approved
 (i) the Shareholders Agreement, and (ii) the participation in the General
 Meeting of Shareholders of TAT and the voting in favor of the resolutions
 referred to in sub-section (a) above.

 6.4. It is hereby underlined that if, for any reason the Conditions Precedent
 (including the approval of the General Meetings of both TAT and TAT Industries)
 and the other Closing conditions set forth above (unless expressly waived in
 accordance with the provisions contained herein) are not met within 60 days
 from the date hereof, the Conditions Precedent shall be deemed to have not been
 fulfilled and this Agreement and the Transaction Documents will become null and
 void and neither Party shall have any claim or demand against the other Party
 with respect to such termination.

 6.5. Notwithstanding anything to the contrary contained herein, in the event
 that compliance with the Conditions Precedent or any other Required Approval is
 contingent upon TAT's taking any action of which TAT is unaware on the date
 hereof and which is likely to adversely affect the commercial terms or the
 feasibility of the transactions contemplated in the TAT Transaction Documents,
 then TAT shall not be required to take such action(s), and will not be liable
 to the Investor, provided that it had promptly provided the Investor with
 written notice regarding its resolution not to obtain any Required Approval.

 7.   Survival of Representations and Warranties.
      ------------------------------------------

 7.1 All representations and warranties made by any Party in this Agreement
 shall survive the Closing and be in effect until the termination of two (2)
 years following the Closing Date (the "Representations and Warranties Period"),
 on which date they shall expire and be of no further force or effect, except
 that if a claim has been made during such two year period, the subject matter
 of the claim shall survive until the claim is finally resolved or settled.

                                       14

<PAGE>

                              TAT Technologies PIPE

 7.2 Excluding in the case of fraud or intentional misrepresentation, if a claim
 is brought against TAT by the Investor during the Representations and
 Warranties Period and results in TAT being obligated to pay the Investor
 damages (the "Damages") in an aggregate amount -

            (i) higher than US$200,000 but less than US$1,000,000 - TAT shall
 promptly reimburse the Investor for such Damages in excess of US$200,000
 (unless the court ruling had already taken into account the US$200,000
 threshold in the damages it awarded, in which case the entire amount of Damages
 will become due and payable to the Investor) and such payment will be the sole
 and exclusive right and remedy available to the Investor with respect to such
 breach of representations and warranties; and

            (ii) equal to or higher than US$1,000,000, then TAT shall be
 entitled, at its sole discretion, (i) to promptly pay to the Investor the
 entire amount of Damages, or (ii) to cancel this Agreement and all other
 Transaction Documents by providing the Investor with prompt written notice,
 upon the receipt of which the Investor shall deliver the Shares and the Warrant
 (and any Warrant Shares, if the Warrant was exercised prior to such
 cancellation) to TAT in return for a full refund of the Purchase Price paid for
 such Shares and Warrant Shares (if applicable), in US dollars (reduced by any
 dividend distributions received by the Investor from TAT prior to the
 cancellation of this Agreement). For the avoidance of doubt and without
 derogating from the above, if the Loan (as defined in the Credit Line
 Agreement), had already been provided to the Company, then upon the termination
 of this Agreement and the Credit Line Agreement, all amounts due on account of
 the Loan shall immediately become due and payable. 7.3 For avoidance of doubt
 it is hereby clarified that, excluding in the case of fraud or intentional
 misrepresentation and other than, the above remedies, no adjustment of the
 Purchase Price or any other change of the terms hereunder or any other relief
 may be available to the Investor in a court of law as a result of a breach of
 representations or warranties under this Agreement or under applicable law.

 7.4 Claims made hereunder may not be initiated by or on behalf of the
 Investor in respect of consequential damages or losses.

 8.   Miscellaneous.
      -------------

 8.1 Further Assurances. Each of the parties hereto shall perform such further
 acts and execute such further documents as may reasonably be necessary to carry
 out and give full effect to the provisions of this Agreement and the intentions
 of the parties as reflected hereby.

 8.2 Governing Law; Dispute Resolution. This Agreement shall be governed by and
 construed according to the laws of the State of Israel, without regard to the
 conflict of laws provision thereof. Any claim arising under or in connection
 with this Agreement shall be resolved exclusively in the appropriate court in
 Tel-Aviv, Israel. Each of the parties hereby irrevocably consents to the
 exclusive jurisdiction of such courts and waives and agrees not to assert any
 objection to the jurisdiction or convenience thereof.

                                       15

<PAGE>

                              TAT Technologies PIPE

 8.3 Assignment. Neither TAT nor the Investor may sell, assign, transfer, or
 otherwise convey any of its rights or delegate any of its duties or obligations
 under this Agreement. Except as otherwise expressly stated to the contrary
 herein, the provisions hereof shall inure to the benefit of, and be binding
 upon, the successors, assigns under law ("Ha'avara Al Pi Din").

 8.4 Entire Agreement; Amendment and Waiver.

 This Agreement and the Exhibits and Schedules hereto (including all of the TAT
 Transaction Documents) constitute the full and entire understanding and
 agreement between the parties with regard to the subject matters hereof. All
 prior understandings and agreements among the parties are void and of no
 further effect. Any term of this Agreement may be amended, waived, or
 discharged (either prospectively or retroactively, and either generally or in a
 particular instance), by a written instrument signed by all the parties to this
 Agreement.

 8.5 Notices, etc. All notices and other communications required or permitted
 hereunder to be given to a party to this Agreement shall be in writing and
 shall be telecopied or mailed by registered or certified mail, postage prepaid,
 or otherwise delivered by hand or by messenger, addressed to such party's
 address as set forth below or at such other address as the party shall have
 furnished to each other party in writing in accordance with this provision:

 If to the Investor:

 TA-TOP, Limited Partnership
 c/o TA-TEK Ltd., its general partner
 c/o FIMI 2001 Ltd.
 "Rubinstein House"
 37 Petach Tikva Road
 Tel: 03-5652244
 Fax: 03-5652245

 With a copy to:
 Sharon Amir, Adv.
 Naschitz, Brandes & Co.
 5 Tuval Street
 Tel-Aviv 67897
 Israel
 Facsimile:  +972-3-623-5021

 If to TAT: TAT Technologies Ltd.
 Industrial Zone, Yasur, Gedera, 70700
 PO Box. 80 (70750)

 With a copy to: J. Zaltzman,
 J. Zaltzman & Co.
 6 Hahilazon Street, Ramat-Gan 52522

                                       16

<PAGE>

                              TAT Technologies PIPE

 Facsimile: 03-6111801
 Attn: Adv. Yossi Zaltzman

 or such other address with respect to a party as such party shall notify each
 other party in writing as above provided.

 8.6 Delays or Omissions. No delay or omission to exercise any right, power, or
 remedy accruing to any party upon any breach or default under this Agreement,
 shall be deemed a waiver of any other breach or default theretofore or
 thereafter occurring. Any waiver, permit, consent, or approval of any kind or
 character on the part of any party of any breach or default under this
 Agreement, or any waiver on the part of any party of any provisions or
 conditions of this Agreement, must be in writing and shall be effective only to
 the extent specifically set forth in such writing. All remedies, either under
 this Agreement or by law, or otherwise afforded to any of the parties, shall be
 cumulative and not alternative.

 8.7 Severability. If any provision of this Agreement is held by a court of
 competent jurisdiction to be unenforceable under applicable law, then such
 provision shall be excluded from this Agreement and the remainder of this
 Agreement shall be interpreted as if such provision were so excluded and shall
 be enforceable in accordance with its terms; provided, however, that in such
 event this Agreement shall be interpreted so as to give effect, to the greatest
 extent consistent with and permitted by applicable law, to the meaning and
 intention of the excluded provision as determined by such court of competent
 jurisdiction.

 8.8 Counterparts. This Agreement may be executed in any number of counterparts,
 each of which shall be deemed an original and enforceable against the parties
 actually executing such counterpart, and all of which together shall constitute
 one and the same instrument.

 8.9 Heading, Preamble, and Exhibits. The titles and subtitles used in this
 Agreement are used for convenience only and are not to be considered in
 construing or interpreting this Agreement. The Preamble and Exhibits are an
 integral and inseparable part of this Agreement.

 8.10 Expenses. Each party hereto shall pay its own expenses in connection with
 the negotiation and preparation of this Agreement and the related agreements
 and the consummation of the transactions contemplated hereby and thereby,
 except that if the Closing is effected TAT shall pay the Investors' fees of
 professional advisors for performing accounting and legal due diligence and
 preparing this Agreement and all other TAT Transaction Documents, in an amount
 not to exceed $50,000 plus applicable Value Added Tax.

                                       17

<PAGE>

                              TAT Technologies PIPE

 IN WITNESS WHEREOF the parties have signed this Agreement as of the date first
hereinabove set forth.

 TAT Technologies Ltd.                       TA-TOP, Limited Partnership
                                             c/o TA-TEK Ltd. its general partner
 By: __________________________
                                             By:________________
 Name:
                                             Name______________
 Title:
                                             Title_______________

                                       18EXHIBIT 4.5

Shareholders Agreement

                             SHAREHOLDERS AGREEMENT

THIS SHAREHOLDERS AGREEMENT (the "Agreement") is made and entered into as of
this 15th day of June, 2004 (the "Effective Date") by and among (a) TAT
Industries Ltd., a public Israeli company whose shares are traded on the
Tel-Aviv Stock Exchange ("TAT Industries"), and (b) TA-TOP, Limited Partnership,
a limited partnership registered under the laws of the State of Israel
("TATOP"). (Each of TAT Industries and TATOP shall be referred to herein as a
"Shareholder" or a "Party" and collectively the "Shareholders" or the
"Parties").

WHEREAS,      TAT Technologies Ltd. (the "Company"),  is an Israeli public
              company,  whose shares are traded on Nasdaq; and

WHEREAS,      as of the Effective Date, TAT Industries holds [3,113,409]
              Ordinary Shares nominal value NIS 0.90 each of the Company,
              which represent [66.7%] of the Company's issued and
              outstanding share capital as of the date hereof; and

WHEREAS,      TATOP is a limited partnership wholly owned by (x) TA-TEK
              Ltd., an Israeli private company ("TA-TEK"), wholly owned by
              FIMI Opportunity Fund, L.P., a limited partnership formed
              under the laws of the State of Delaware (the "Delaware Fund"),
              and by (y) FIMI Israel Opportunity Fund, Limited Partnership,
              a limited partnership, registered in Israel (the "Israeli
              Fund" and, collectively with the Delaware Fund, the "Fund");
              and

WHEREAS,      on the date hereof,  (a) TATOP and the Company are entering
              into (i) a Share Purchase Agreement (the "SPA") pursuant to
              which TATOP will purchase from the Company, at the Closing,
              857,143 Ordinary Shares of the Company;  (ii) a Credit Line
              Agreement (the "Credit Line Agreement"), in the form
              attached to the SPA; and (iii) a Warrant Agreement (the
              "Warrant Agreement") in the form attached to the SPA; and
              (b) two Engagement Agreements (the "Engagement Agreements")
              have been signed between the Company and each of Shlomo
              Ostersetzer ("Ostersetzer") and Dov Zeelim ("Zeelim"). This
              Agreement, together with the Credit Line Agreement, the
              Warrant Agreement and the Engagement Agreements shall be
              referred to herein as the "Investment Agreements".

WHEREAS,      the Parties wish to set forth the terms and conditions
              relating to their relationship as shareholders of the
              Company, which terms and conditions shall automatically come
              into effect as of the Closing; and

WHEREAS,      the Investment  Agreements will become effective upon the
              consummation of the Closing as such term is defined in the
              SPA.

NOW, THEREFORE, in consideration of the mutual promises contained in this
Agreement and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereto agree that during the Term
(as defined in Section 12 hereunder)

<PAGE>

Shareholders Agreement

the following provisions will apply:

1.   Board of Directors of the Company
     ---------------------------------

      The Shareholders shall vote all of the Ordinary Shares of the Company,
      nominal value NIS 0.90 each (the "Ordinary Shares") now or hereafter owned
      or controlled by them (including without limitation, Ordinary Shares owned
      by them upon exercise of any options or warrants to purchase Ordinary
      Shares or upon conversion of any other convertible securities of the
      Company), whether beneficially or otherwise held by them, for the election
      to the Company's Board of Directors (the "Board") of: (i) three members
      (of whom at least one shall qualify as an "Independent Director" as such
      term is defined under the rules applicable to companies listed on the
      Nasdaq) who shall be designated by TATOP and (ii) six members (including
      the two External Directors, as such term is defined in the Companies
      Law-1999 (the "Companies Law"), that shall be designated by TAT
      Industries.

      The designating Party shall consult the other Party regarding the
      nomination of any new Director; provided, however, that the final decision
      with respect to the designation shall be made by the designating party and
      the other party shall vote for such designee.

      Subject to applicable law and the Company's Articles of Association, the
      Party designating a Director shall also be entitled, from time to time, to
      designate another person to replace such director; provided, however, that
      TATOP may not replace the Independent Director more frequently than once a
      year (unless such replacement is due to death or incapacity of the
      Independent Director).

      For the avoidance of doubt, no Shareholder, or any officer, director,
      shareholder or employee of such Shareholder, makes any representation or
      warranty as to the fitness or competence of the designee to the Board by
      virtue of its execution of this Agreement or by voting in accordance with
      the provisions of this Agreement. Each Shareholder (and the directors
      designated by it) shall be solely responsible for the compliance of its
      designee(s) with the requirements of applicable law relating to director's
      competency (including, without limitations, the provisions of Sections
      226, 227 and 228 of the Companies Law).

      It is hereby clarified that the Management Fee payable to TATOP in
      accordance with the provisions of the SPA shall cover any and all
      remuneration (excluding out-of-pocket expenses) due to the Directors
      designated by TATOP to the Board and the boards of directors of the
      Company's subsidiaries but does not include reimbursement of expenses or
      remuneration due to the Independent Director appointed by TATOP, who shall
      be entitled to the same reimbursement of expenses or remuneration as shall
      be payable to the Company's External Directors.

2.   Board of Directors of TAT's Subsidiaries.
     -----------------------------------------

      The Shareholders shall direct the Directors designated by them (to the
      extent permitted by applicable law) to cause the Board to appoint at least
      one (1) director designated by TATOP to the board of directors of the
      Company's US subsidiary, LIMCO Airepair, Inc., and of any other
      subsidiaries controlled or which shall be controlled by the Company.

                                       2

<PAGE>

Shareholders Agreement

3.   Chief Executive Officer of the Company ("CEO"); Chairman of the Board.
     ----------------------------------------------------------------------

      The Parties acknowledge that Ostersetzer is currently the Company's
      Chairman of the Board and CEO and Zeelim is Vice Chairman of the Board and
      the Company's President and Chief Operating Officer.

      TATOP's prior written consent (which consent shall not be unreasonably
      withheld) shall have to be obtained prior to the replacement of any of the
      above-mentioned positions, provided, however, that such consent shall not
      be required for the appointment of Zeelim as Chairman of the Board; and,
      provided, further, that (i) Zeelim may not serve both as the CEO and
      Chairman of the Board, and (ii) in the event that TATOP rejects the third
      consecutive CEO candidate proposed by TAT Industries Isaac Forrer of
      Ernst&Young shall be appointed to determine whether or not TATOP's consent
      to such candidates and any subsequent candidates was unreasonably
      withheld.

4.   Executive Committee
     -------------------

      The Shareholders shall direct the Directors designated by them (to the
      extent permitted by applicable law) to cause the Board to form an
      Executive Committee (the "Executive Committee"), which shall be comprised
      of four members (of which one member shall be one of the directors
      designated by TATOP). The Executive Committee shall convene at least twice
      a month. For the avoidance of doubt it is hereby clarified that the
      Executive Committee may not bind the Company in any way.

5.   Voting Undertaking; Amendment of Interested Party Transactions; Restriction
     on Sale of Company's Shares; Technology Transfer Agreement.
     -----------------------------------------------------------

     5.1
         5.1.1    To the extent required, TAT Industries hereby irrevocably
                  undertakes to vote in favor of the approval of the SPA and all
                  ancillary agreements attached thereto (including, but not
                  limited to, the Warrant Agreement, the Credit Line Agreement
                  and the Registration Rights Agreement (as such terms are
                  defied therein)) in the General Meeting of Shareholders of the
                  Company.

          5.1.2.  No amendment to the terms or conditions of the engagement of,
                  or other compensation to, Ostersetzer or Zeelim or any
                  affiliates thereof other than immaterial amendments which are
                  applied "across the board" to all other senior employees of
                  the Company, shall be effected without TATOP's prior written
                  consent.

           5.1.3  TAT Industries hereby irrevocably waives, during the Term of
                  this Agreement, any and all rights which it may have to
                  receive payments from the Company in connection with the
                  Know-How arrangement described in footnote 18(9)(3) of TAT
                  Industries' financial statements for the fiscal year 2002.

                  Furthermore, TAT Industries hereby irrevocably undertakes that
                  the amounts due to the Company under the service arrangement
                  between TAT Industries and the Company set forth in the
                  Transfer Agreement between TAT Industries and the

                                        3

<PAGE>

Shareholders Agreement

                  Company dated February 10, 2000, and all other terms and
                  conditions of such services arrangement shall remain
                  unchanged. For the avoidance of doubt, TAT Industries hereby
                  irrevocably undertakes not to exercise its right under Section
                  11.7 of the Transfer Agreement to terminate such services
                  arrangement and TATOP undertakes not to cause the Company to
                  terminate such services arrangement. The foregoing
                  undertakings shall remain in effect until the earlier to occur
                  of (i) the termination of the Term of this Agreement, (ii) the
                  date on which TAT Industries ceases to be a public company
                  (as such term is defined in the Companies Law), or (iii)
                  TAT Industries ceases to be in Control (as such term is
                  defined in the Companies Law) of the Company.

 5.2. (i) TATOP shall be prohibited from selling or otherwise transferring
      (except to its Permitted Transferees (as defined herein)) more than an
      aggregate of 150,000 Ordinary Shares of the Company during the first two
      years following the Closing (the "Lock-Up Period").

      (ii) TAT Industries shall be prohibited from selling or otherwise
      transferring (except to its Permitted Transferees (as defined herein)) any
      Ordinary Shares of the Company during the Lock-Up Period; provided,
      however, that should Ostersetzer and/or Zeelim transfer to TAT Industries
      their right to sell shares of the Company (pursuant to that certain letter
      delivered by them to TATOP on the Effective Date and attached hereto as
      Exhibit 5.2), then TAT Industries shall be permitted to sell such number
      of Company shares covered by the transferred right, all upon the terms and
      conditions more fully set forth in said letter.

      It is hereby clarified that any permitted sale of Company's Shares
      according to this section 5.2 shall not be subject to the other Party's
      rights of First Offer and/or Tag Along under section 7 below.

6.   Discussions Prior to Meetings.
     ------------------------------

     Subject to the provisions of applicable law, the Shareholders shall meet
     regularly and in any event prior to each meeting of the Board of Directors
     of the Company and General Meeting of Shareholders of the Company and will
     review, discuss and attempt to reach a unified position with respect to
     principal issues on the agenda of each such meeting such as approval of
     TAT's annual budget, any merger or acquisition, sale of all or
     substantially all of the Company's assets, granting of stock options,
     creation of any debt (other than in the ordinary course of business),
     distribution of dividends, etc.

7.   Right of First Offer; Tag-Along
     -------------------------------

      (a) Following the termination of the Lock-Up Period under Section 5.2
      above, if a Party (the "Selling Party") wishes to sell or otherwise
      transfer Ordinary Shares of the Company (the "Offered Shares"), it shall
      be required to first make an offer to the other Party (the "Offeree"), as
      set forth below.

      (b) The Selling Party shall send the Offeree a written offer (the "Offer")
      in which the Selling Party shall specify the following information: (i)
      the number of Offered Shares that the Selling Party proposes to sell or
      transfer; (ii) a representation and warranty that the Offered Shares shall
      be, at the time of their transfer, free and clear of Encumbrances; (iii)
      the minimum price in United States dollars (the "Minimum Price") that the
      Selling Party is

                                       4

<PAGE>

Shareholders Agreement

      prepared to receive for the Offered Shares in an immediate cash payment
      transaction; and (iv) whether the Selling Party intends to sell the
      Offered Shares by means of a "market trade". The Offer shall constitute an
      irrevocable offer made by the Selling Party to sell to the Offeree the
      Offered Shares all upon the terms specified in the Offer (including the
      Minimum Price and the Payment Term Threshold) or, in the case TATOP is the
      Offeree, to have such Offeree participate in such sale, all upon the terms
      applicable to the Selling Party pursuant to the provisions of sub-section
      (e) below.

      (c) The Offeree may notify the Selling Party in writing (the "Response")
      within 14 days of receipt of the Offer that it wishes to purchase all (but
      not less than all) of the Offered Shares upon the terms specified in the
      Offer. If the Offeree does not deliver the Response the Offeree shall be
      deemed to have notified the Selling Party that it does not wish to buy the
      Offered Shares.

      (d) If the Offeree delivers a Response in accordance with the above
      provisions, the Offered Shares shall become the property of the Offeree
      and shall be delivered to the Offeree against payment of the consideration
      as specified in the Offer. . The closing of such sale shall take place by
      no later than 10 business days following the delivery of the Response. If
      the Offeree does not deliver such Response, then the Selling Party may
      sell the Offered Shares to any third party, provided that such sale is
      consummated (i) within a 45 day period, (ii) at a price that is not lower
      than that the Minimum Price, and (iii) if the Offer provides that the sale
      shall have to be effected by means of "market trade", the Offered Shares
      will be sold only via market trade.

      (e) If TATOP is the Offeree, and it does not deliver a Response, but
      wishes to sell its Ordinary Shares together with the Offered Shares
      intended to be sold by T.A.T. Industries, TATOP shall, during such 14 day
      period, have the right to notify T.A.T. Industries that it is exercising
      its Tag Along Right pursuant to this sub-section (e) (the "Tag Along
      Notice"). Following the Tag Along Notice, TATOP shall add to the Ordinary
      Shares to be sold by T.A.T. Industries to a purchaser (the "Proposed
      Purchaser") that number of Ordinary Shares which bears the same ratio to
      the total number of Ordinary Shares held by TATOP, as the ratio that the
      number of Offered Shares bears to T.A.T. Industries' total number of
      Ordinary Shares on the date that the Offer Notice is delivered, and upon
      the same terms and conditions under which T.A.T. Industries' Ordinary
      Shares shall be sold. In the event that TATOP exercises its rights
      hereunder, T.A.T. Industries must either (i) add such Ordinary Shares to
      the Offered Shares being sold by it or (ii) at its sole discretion, reduce
      the number of Ordinary Shares that it proposes to sell, in which case,
      T.A.T. Industries and TATOP will contribute the identical portion of
      Ordinary Shares relative to their total shareholdings in the Company on
      the date the Offer Notice was delivered.

      Notwithstanding the foregoing, without derogating from TAT Industries'
      Right of First Offer, during the first five years following the Closing,
      TATOP shall give TAT Industries the Tag-Along right described above in the
      event that TATOP sells the Offered Shares, at a price per share that is
      greater than US$23.00 (which price shall be subject to adjustment for
      share splits, issuance of bonus shares or combinations of shares).

      (f) Notwithstanding the foregoing, the provisions of this Section 7 shall
      not apply (i) to any transfer of Ordinary Shares by a Shareholder to its
      Permitted Transferees (as defined below),

                                       5
<PAGE>

Shareholders Agreement

      provided that any such Permitted Transferee shall acknowledge in writing
      that it agrees to be bound by the provisions of this Agreement, as if it
      were an original party to this part of the Agreement and, provided,
      further, that FIMI 2001 Ltd. shall remain the exclusive representative
      with respect to any Permitted Transferee of TATOP or (ii) to the transfer
      of Ordinary Shares by a banking institution or holders of debentures that
      have been issued by a Shareholder to the public or to "institutional
      bodies" following the realization of a pledge, if any, over Ordinary
      Shares held by the Shareholder.

      For purposes of this Agreement, the term "Permitted Transferee" shall
      mean:

               (a) with respect to TATOP, (i) its partners, (ii) the
      shareholders or partners (as applicable) of such partners, (iii) any
      entity controlled by, controlling, or under common control with TATOP or
      FIMI 2001 Ltd., or (iv) a banking institution for the benefit of which a
      pledge was created over the Ordinary Shares of the Company held by TATOP;
      provided, that in the case of (i), (ii) and (iii) above, such transferees
      are solely and irrevocably represented by FIMI 2001 Ltd. pursuant to an
      irrevocable power of attorney for all purposes of this Agreement; and

                (b) with respect to TAT Industries, (i) to any of Ostersetzer or
      Zeelim, their holding companies or their immediate family members (i.e.
      spouses, children and the children's spouses), or (ii) an entity
      controlled by, or under common control with or controlling TAT Industries;
      or (iii) to TAT Industries' shareholders, if TAT Industries resolves to
      distribute its entire holdings in the Company to its shareholders,
      provided that the controlling holders of TAT Industries' shares shall
      acknowledge in writing that they agree to be bound by the provisions of
      this Agreement; or (iv) a banking institution or TAT Industries' security
      holders (including as a result of a public offering) for the benefit of
      which a pledge was created over the Ordinary Shares of the Company held by
      TAT Industries.

                (c) Notwithstanding the foregoing, except in connection with a
      transfer to a Permitted Transferee, a transaction or a series of
      transactions involving the sale of interests in TATOP and/or shares in
      TA-TEK following which the Fund beneficially holds less than 50% of the
      aggregate interests in both TATOP and TA-TEK, will be deemed as an offer
      of all the Ordinary Shares held by TATOP at a Minimum Price equal to the
      average closing price in NASDAQ during the last 30 trading days prior to
      the above change of holding.

                (d) Except with respect to the transfer of Ordinary Shares to
      Permitted Transferees, and without derogating from the provisions and
      rights contained herein, the Shareholders' rights under this Agreement may
      not be assigned to transferees without the consent of the other
      Shareholder.

8.   Drag Along.
     ----------

      Notwithstanding anything to the contrary set forth in this Agreement, in
      the event that a Shareholder (the "Selling Shareholder") secures a bona
      fide offer (the "Acquisition Offer") from any third party (the "Drag-Along
      Acquirer ") to purchase all of the Ordinary Shares held by such Selling
      Shareholder (and it is hereby clarified that for purposes of this Section
      8 it shall also include the holdings of its Permitted Transferees) for
      immediately available funds, at a price per Ordinary Share of at least US$
      23.00 (the "Drag Along PPS"), and the Drag-Along Acquirer conditions the
      Acquisition Offer on the acquisition of

                                       6

<PAGE>

Shareholders Agreement

      all the Ordinary Shares held at such time by the other Shareholder (the
      "Drag-Along Party" which, for purposes of this Section 8 shall include
      also the holdings of its Permitted Transferees), the Selling Shareholder
      shall provide the Drag Along Party with written notice together with a
      copy of the Acquisition Offer (the "Drag Along Notice") and the Drag Along
      Party will be required to either (i) sell all of the Ordinary Shares then
      held by it to the Drag-Along Acquirer, at the same price and upon the same
      terms and conditions as those to which the sale by the Selling Shareholder
      is subject under the Acquisition Offer, provided that the sale of all the
      Ordinary Shares of the Selling Shareholder and the Drag Along Party shall
      be consummated by no later than 90 days following the receipt of the Drag
      Along Notice and, provided, further, that the Drag Along Party shall not
      be required to make any representations or warranties, except for
      customary representations regarding authorization and good and marketable
      title to the shares being sold; or (ii) provide the Selling Shareholder
      with written notice (the "Notice Extension") informing the Selling
      Shareholder that it wishes to receive an Extension (the "Extension"). In
      the event that an Extension Notice is delivered to the Selling
      Shareholder, the Drag Along Shareholder shall be required, by no later
      than three months following the receipt of the Drag Along Notice, to
      arrange for the sale of all of the Ordinary Shares held by the Selling
      Shareholder at a price per share that is not lower than the Drag Along
      PPS, and under terms and conditions that are no less favorable to the
      Selling Shareholder than those set forth in the Acquisition Offer or (b)
      acquire, upon the termination of such three month period, the Ordinary
      Shares then held by the Selling Shareholder, at a price per share equal to
      the Drag Along PPS and upon terms and conditions no less favorable than
      those set forth in the Acquisition Offer.

      The Drag-Along PPS shall be adjusted for share splits, issuance of bonus
      shares, or combinations of shares. No other adjustments (for dividend
      distributions, market conditions or for any other reason) shall be made to
      the Drag Along PPS.

9.   Purchase of Additional Company Shares by TATOP
     ----------------------------------------------

    TATOP hereby undertakes that without obtaining TAT Industries' prior
    written consent, it and the Affiliated Entities (as defined below) shall
    not, at any time during the term of this Agreement, purchase additional
    shares of the Company (including by exercise of the Warrant under the
    Warrant Agreement) such that its total holdings by TATOP and the Affiliated
    Entities would exceed 35% of TAT's issued and outstanding share capital.
    This undertaking refers to holdings by the following entities (the
    "Affiliated Entities"): TA-TEK, the Fund (including, for the purpose of
    clarity, the Delaware Fund and the Israeli Fund), FIMI 2001 Ltd., the
    Managing General Partner of the Fund and any non public entity controlled by
    each of them. For purposes of this Agreement, the terms "holding" and
    "control" shall have the meaning ascribed to such term in Section 1 of the
    Companies Law (which refers to the definition set forth in the Israeli
    Securities Law - 1968).

10.  Dividend Distribution.
     ----------------------

      Subject to applicable law, during the term of this Agreement, the
      Shareholders agree to direct the Directors designated by them (to the
      extent permitted by applicable law) to cause the Company to distribute
      annual dividends in an aggregate amount of at least 40% of the Company's
      profits (as determined under Section 302(b) of the Companies Law) for each

                                        7
<PAGE>

Shareholders Agreement

      relevant year. The Shareholders' internal agreement under this Section 10
      shall not be deemed to constitute a dividend policy of the Company.
      Furthermore, the Shareholders may, by mutual consent, modify the foregoing
      agreement between the Parties regarding dividend distributions without
      being obligated to substantiate or explain any such modification to any
      third party.

11.  The Investment Agreements.
     --------------------------

      TAT Industries hereby agrees to vote all of the Ordinary Shares owned or
      controlled by it, whether beneficially or otherwise held by it, in order
      to cause the Company to adopt the Investment Agreements (excluding this
      Agreement, which requires the approval of the General Meeting of TAT
      Industries' Shareholders under the Israeli law). The Shareholders hereby
      agree to vote all of the Ordinary Shares owned or controlled by them,
      whether beneficially or otherwise held by them, in order to comply or, to
      the extent applicable, to cause the Company to comply, with the provisions
      and undertakings more fully set forth in the Investment Agreements.

12.  Term.
     ----

      This Agreement shall remain in effect until the seventh anniversary of the
      Closing ("the Term"); provided, however, that during the Term, TAT
      Industries may terminate this Agreement without liability, by providing
      TATOP with written notice, at any time following the date on which TATOP
      (together with its Permitted Transferees) holds less than 500,000 Ordinary
      Shares and TATOP may terminate this Agreement without liability by
      providing TAT Industries with written notice, as of the date on which TAT
      Industries (together with its Permitted Transferees) holds less than
      1,500,000 Ordinary Shares. The number of Ordinary Shares set forth in this
      Section 12 shall be adjusted for any share splits, issuance of bonus
      shares and combinations of shares.

      It is hereby clarified that following the expiry of the Term or upon the
      prior termination of this Agreement, neither Party shall be bound by any
      of the provisions herein.

13   Miscellaneous.
     -------------

     13.1. Notices. All notices required or permitted hereunder to be given
           to a party pursuant to this Agreement shall be in writing and
           shall be deemed to have been duly given to the addressee thereof
           (i) if hand delivered, on the day of delivery, (ii) if given by
           facsimile transmission, on the business day on which such
           transmission is sent and confirmed, (iii) if given by air
           courier, five business days following the date it was sent or
           (iv) if mailed by registered mail, return receipt requested, two
           business days following the date it was mailed, to such party's
           address as set forth below or at such other address as such party
           shall have furnished to each other party in writing in accordance
           with this provision:

           If to TAT Industries:  TAT Industries Ltd. Industrial Zone, Yasur,
           Gedera, 70700

                                       8
<PAGE>

Shareholders Agreement

           PO Box. 80 (70750)

           With a copy to:   J. Zaltzman & Co.
                             6 Hahilazon Street, Ramat-Gan 52522
                             Facsimile: 03-6111801
                             Attn: Adv. J. Zaltzman

            If to TATOP:     c/oTA-TEK, its general partner
                             c/o FIMI 2001 Ltd.
                             "Rubinstein House"
                             37 Petach Tikva Road
                             Tel: 03-5652244
                             Fax: 03-5652245

           With a copy to:   Sharon A. Amir
                             Nascitz, Brandes & Co.
                             5 Tuval Street, Tel-Aviv 67897
                             Israel
                             Tel:03-6235073/76
                             Fax:03-6235021

or to such other address as the parties may from time to time designate in
writing.

     13.2.        Waiver. Any waiver hereunder must be in writing, duly
                  authorized and signed by the party to be bound, and shall be
                  effective only in the specific instance and for the purpose
                  for which it was given. No failure or delay on the part of any
                  Shareholder in exercising any right, power or privilege under
                  this Agreement shall operate as a waiver thereof, nor shall
                  any single or partial exercise of any right, power or
                  privilege hereunder preclude any other or further exercise
                  thereof or the exercise of any other right, power or
                  privilege.

     13.3.        Entire Agreement. This Agreement, together with the Investment
                  Agreements (as defined in the TAT Purchase Agreement) and the
                  exhibits and the documents furnished by the parties hereto in
                  connection with the transactions contemplated herein
                  constitute the entire agreement among the parties hereto and
                  supersede any other agreement that may have been made or
                  entered into by any person relating to the transactions
                  contemplated by this Agreement.

     13.4.        Amendments This Agreement may be amended or modified in whole
                  or in part only by a duly authorized written agreement that
                  refers to this Agreement and is signed by the parties hereto.

     13.5.        Limitations on Rights of Third Parties. Nothing expressed or
                  implied in this Agreement is intended or shall be construed to
                  confer upon or give any person or entity (including the
                  Company and its other shareholders) other than the
                  Shareholders and their Permitted Transferees, any rights or
                  remedies under this Agreement.

                                       9
<PAGE>

Shareholders Agreement

                  This Agreement shall not inure to the benefit of, and shall
                  not be enforceable by, any person or entity (including but not
                  limited to the Company) that is not a Party hereto.

     13.6.        Captions The captions in this Agreement are inserted for
                  convenience of reference only and shall not be considered a
                  part of or affect the construction or interpretation of any
                  provision of this Agreement.

     13.7.        Counterparts. This Agreement may be executed in counterparts
                  and by facsimile signature, each of which shall be deemed an
                  original, but all of which together shall constitute one and
                  the same instrument.

     13.8.        Governing Law This Agreement shall be governed by, and
                  construed and enforced in accordance with, the laws of the
                  State of Israel. Any dispute arising under or with respect to
                  this Agreement shall be resolved exclusively in the
                  appropriate court in Tel Aviv, Israel.

     13.9.        Further Assurances The parties hereto shall execute and
                  deliver such additional documents and shall take such
                  additional actions (including without limitation procuring
                  such resolutions or regulatory approvals) as may be reasonably
                  necessary or appropriate to effect the provisions and purposes
                  of this Agreement and the consummation of the transactions
                  contemplated hereby.

     13.10.       Severability . If any provision of this Agreement is held by a
                  court of competent jurisdiction to be invalid, illegal or
                  unenforceable, the validity, legality and enforceability of
                  the remaining provisions shall not in any way be affected,
                  impaired or invalidated thereby.

     13.11.       Assignment. Except to the extent expressly permitted herein,
                  each Party may not assign any portion of its respective
                  rights, duties or obligations under this Agreement to any
                  other person, without the prior written consent of the other
                  Party.

IN WITNESS WHEREOF, the Shareholders shall have each caused this Agreement to be
duly executed as of the date first above written.

TAT Industries Ltd.
By________________________
Name______________________
Title_______________________

TATOP, Limited Partnership

By: TA-TEK Ltd., its general partner
By:_______________________
Name_____________________

Title______________________

                                       10

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