GEDERA, Israel, January 30, 2012 /PRNewswire/ --
TAT Technologies Ltd. (NASDAQ: TATT), (hereinafter: TAT/the Company), a leading provider of services and products to the commercial and military aerospace and ground defense industries, reported today that, as required by Israeli law, the Audit Committee had reapproved the following agreements with TAT Industries Ltd. (" TAT Industries"), its controlling shareholder.
- In February 2000, TAT entered into agreement with TAT Industries pursuant to which TAT Industries pays the Company $50,000 per year, for an indefinite period, for services rendered by TAT's employees who serve as officers of TAT Industries and for administrative, accounting and secretarial services provided by the Company to TAT Industries. The Audit Committee has reapproved the said agreement for an additional three (3) years, commencing retroactively as of November 14, 2011.
- In February 2000, TAT entered into a lease agreement with TAT Industries, pursuant to which the Company leases from TAT Industries approximately 344,000 square feet, including 90,000 square feet of manufacturing, office and storage space, for a period of 24 years and eleven months for annual rental fee which is subject to revaluation every fifth year by a real estate appraiser, with an additional incremental payment of 2% per year. In 2010, following a revaluation by a real estate appraiser, the rental fee was increased to $400,000 per year with an additional incremental payment of 2% per year. The rental fee will be revaluated again in 2015 (the "Next Revaluation"). The Audit Committee has approved entering into said agreement until the Next Revaluation.
About TAT Technologies LTD
TAT Technologies LTD is a leading provider of services and products to the commercial and military aerospace and ground defense industries.TAT operates under four segments: (i) Original Equipment Manufacturing or "OEM" of Heat Management Solutions (ii) OEM of Electric Motion Systems (iii) Heat Transfer Services and Products and (iv) Maintenance, Repair and Overhaul or "MRO" services of Aviation Components.