**Exhibit 4.5**

 

EXECUTION COPY 

 

**DELCO REMY INTERNATIONAL, INC.**

 

**$125,000,000 Second Priority Senior Secured Floating Rate Notes Due 2009**

**$150,000,000 9 3/8% Senior Subordinated Notes Due 2012**

 

**REGISTRATION RIGHTS AGREEMENT**

 

April 23, 2004 

 

Credit Suisse First Boston LLC 

Deutsche Bank Securities Inc. 

Wachovia Capital Markets, LLC 

c/o Credit Suisse First Boston LLC 

       Eleven Madison Avenue 

       New York, New York 10010-3629 

 

Dear Sirs: 

 

Delco Remy International, Inc., aDelaware corporation (the “Issuer”), proposes to issue and sell to Credit Suisse First Boston LLC, Deutsche Bank AG and Wachovia Securities, LLC (collectively, the “Initial Purchasers”), upon the terms set forth in a purchaseagreement of even date herewith (the “Purchase Agreement”), $125,000,000 aggregate principal amount of its Second Priority Senior Secured Floating Rate Notes Due 2009 (the “Floating Rate Notes”) and $150,000,000 aggregateprincipal amount of its 9 3/8% Senior Subordinated Notes Due 2012 (the “Fixed Rate Notes” and togetherwith the Floating Rate Notes, the “Initial Securities”). The Floating Rate Notes will be unconditionally guaranteed on a senior secured basis (the “Floating Rate Guarantees”) by each of the Company’s domestic subsidiariesthat are signatories hereto (the “Guarantors” and together with the Issuer, the “Company”). The Fixed Rate Notes will be unconditionally guaranteed on a senior subordinated basis (the “Fixed Rate Guarantees” andtogether with the Floating Rate Guarantees, the “Guarantees”) by the Guarantors. The Floating Rate Notes will be issued pursuant to an indenture (the “Floating Rate Note Indenture”) dated as of April 23, 2004, among the Company,the Guarantors and Deutsche Bank National Trust Company, as Trustee (the “Trustee”). The Fixed Rate Notes will be issued pursuant to an indenture (the “Fixed Rate Note Indenture” and together with the Floating Rate NoteIndenture, the “Indentures”) dated as of April 23, 2004, among the Company, the Guarantors and the Trustee. As an inducement to the Initial Purchasers, the Company agrees with the Initial Purchasers, for the benefit of the holders of theInitial Securities (including, without limitation, the Initial Purchasers), the Exchange Securities (as defined below) and the Private Exchange Securities (as defined below) (collectively the “Holders”), as follows: 

 

1. *Registered Exchange Offer*. Unless not permitted by applicable law(after the Company has complied with the ultimate paragraph of this Section 1), the Company shall, at its own cost, prepare and, not later than 90 days after (or if the 90th day is not a business day, the first business day thereafter) the date oforiginal issue of the Initial Securities (the “Issue Date”), file with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Exchange Offer Registration Statement”) on an appropriateform under the Securities Act of 1933, as amended (the “Securities Act”), with respect to a proposed offer (the “Registered Exchange Offer”) to the Holders of Transfer Restricted Securities (as defined in Section 6 hereof), whoare not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer, to issue and deliver to such Holders, in exchange for the Initial Securities, a like aggregate principal amount of debt securities (the“Exchange Securities”) of the Company issued under the Indenture and identical in all material respects to the Initial Securities (except for the transfer restrictions relating to the Initial Securities and the provisions relating to thematters described in Section 6 hereof) that would be registered under the Securities Act. The Company shall use 

its reasonable best efforts to cause such Exchange Offer Registration Statement to become effective under the SecuritiesAct within 180 days (or if the 180th day is not a business day, the first business day thereafter) after the Issue Date of the Initial Securities and shall keep the Exchange Offer Registration Statement effective for not less than 30 days (orlonger, if required by applicable law) after the date notice of the Registered Exchange Offer is mailed to the Holders (such period being called the “Exchange Offer Registration Period”). 

 

If the Company effects the Registered Exchange Offer, the Company will beentitled to close the Registered Exchange Offer 40 days after the commencement thereof provided that the Company has accepted all the Initial Securities theretofore validly tendered in accordance with the terms of the Registered Exchange Offer.

 

Following the declaration of the effectiveness of the ExchangeOffer Registration Statement, the Company shall promptly commence the Registered Exchange Offer, it being the objective of such Registered Exchange Offer to enable each Holder of Transfer Restricted Securities (as defined in Section 6 hereof)electing to exchange the Initial Securities for Exchange Securities (assuming that such Holder is not an affiliate of the Company within the meaning of the Securities Act, acquires the Exchange Securities in the ordinary course of such Holder’sbusiness and has no arrangements with any person to participate in the distribution of the Exchange Securities and is not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer) to trade such ExchangeSecurities from and after their receipt without any limitations or restrictions under the Securities Act and without material restrictions under the securities laws of the several states of the United States. 

 

The Company acknowledges that, pursuant to current interpretations by theCommission’s staff of Section 5 of the Securities Act, in the absence of an applicable exemption therefrom, (i) each Holder which is a broker-dealer electing to exchange Initial Securities, acquired for its own account as a result of marketmaking activities or other trading activities, for Exchange Securities (an “Exchanging Dealer”), is required to deliver a prospectus containing the information set forth in (a) Annex A hereto on the cover, (b) Annex B hereto in the“Exchange Offer Procedures” section and the “Purpose of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of Distribution” section of such prospectus in connection with a sale of any such ExchangeSecurities received by such Exchanging Dealer pursuant to the Registered Exchange Offer and (ii) an Initial Purchaser that elects to sell Exchange Securities acquired in exchange for Securities constituting any portion of an unsold allotment isrequired to deliver a prospectus containing the information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in connection with such sale. 

 

The Company shall use its reasonable best efforts to keep the Exchange Offer Registration Statement effective and to amendand supplement the prospectus contained therein, in order to permit such prospectus to be lawfully delivered by all persons subject to the prospectus delivery requirements of the Securities Act for such period of time as such persons must complywith such requirements in order to resell the Exchange Securities; provided, however, that (i) in the case where such prospectus and any amendment or supplement thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such periodshall be the lesser of 180 days and the date on which all Exchanging Dealers and the Initial Purchasers have sold all Exchange Securities held by them (unless such period is extended pursuant to Section 3(j) below) and (ii) the Company shall makesuch prospectus and any amendment or supplement thereto, available to any broker-dealer for use in connection with any resale of any Exchange Securities for a period of not less than 180 days after the consummation of the Registered Exchange Offer.

 

If, upon consummation of the Registered Exchange Offer, anyInitial Purchaser holds Initial Securities acquired by it as part of its initial distribution, the Company, simultaneously with the delivery of the Exchange Securities pursuant to the Registered Exchange Offer, shall issue and deliver to suchInitial Purchaser upon the written request of such Initial Purchaser, in exchange (the “Private Exchange”) for the Initial Securities held by such Initial Purchaser, a like principal amount of debt securities of the Company 

 

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issued under the Indentures and identical in all material respects (including the existence of restrictions on transferunder the Securities Act and the securities laws of the several states of the United States, but excluding provisions relating to the matters described in Section 6 hereof) to the Initial Securities (the “Private Exchange Securities”). TheInitial Securities, the Exchange Securities and the Private Exchange Securities are herein collectively called the “Securities”. 

 

In connection with the Registered Exchange Offer, the Company shall: 

 

(a) mail to each Holder a copy of the prospectus forming part of the Exchange Offer Registration Statement,together with an appropriate letter of transmittal and related documents; 

 

(b) keep the Registered Exchange Offer open for not less than 30 days (or longer, if required by applicable law) after the date notice thereof is mailed to the Holders; 

 

(c) utilize the services of a depositary for the RegisteredExchange Offer with an address in the Borough of Manhattan, The City of New York, which may be the Trustee or an affiliate of the Trustee; 

 

(d) permit Holders to withdraw tendered Initial Securities at any time prior to the close of business, New York time, on the last businessday on which the Registered Exchange Offer shall remain open; and 

 

(e) otherwise comply with all applicable laws. 

 

As soon as practicable after the close of the Registered Exchange Offer or the Private Exchange, as the case may be, the Company shall: 

 

(x) accept for exchange all the Initial Securities validly tendered and not withdrawn pursuant to theRegistered Exchange Offer and the Private Exchange; 

 

(y) deliver to the Trustee for cancellation all the Initial Securities so accepted for exchange; and 

 

(z) cause the Trustee to authenticate and deliver promptly to each Holder of the Initial Securities, Exchange Securities or PrivateExchange Securities, as the case may be, equal in principal amount to the Initial Securities of such Holder so accepted for exchange. 

 

The Indentures will provide that the Exchange Securities will not be subject to the transfer restrictions set forth in the Indentures and that all theSecurities will vote and consent together on all matters as one class and that none of the Securities will have the right to vote or consent as a class separate from one another on any matter. 

 

Interest on each Exchange Security and Private Exchange Security issuedpursuant to the Registered Exchange Offer and in the Private Exchange will accrue from the last interest payment date on which interest was paid on the Initial Securities surrendered in exchange therefor or, if no interest has been paid on theInitial Securities, from the date of original issue of the Initial Securities. 

 

Each Holder participating in the Registered Exchange Offer shall be required to represent to the Company that at the time of the consummation of the Registered Exchange Offer (i) any Exchange 

 

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Securities received by such Holder will be acquired in the ordinary course of business, (ii) such Holder will have noarrangements or understanding with any person to participate in the distribution of the Securities or the Exchange Securities within the meaning of the Securities Act, (iii) such Holder is not an “affiliate,” as defined in Rule 405 of theSecurities Act, of the Company or if it is an affiliate, such Holder will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable, (iv) if such Holder is not a broker-dealer, that it is notengaged in, and does not intend to engage in, the distribution of the Exchange Securities and (v) if such Holder is a broker-dealer, that it will receive Exchange Securities for its own account in exchange for Initial Securities that were acquiredas a result of market-making activities or other trading activities and that it will be required to acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Securities. 

 

Notwithstanding any other provisions hereof, the Company will ensure that (i)any Exchange Offer Registration Statement and any amendment thereto and any prospectus forming part thereof and any supplement thereto complies in all material respects with the Securities Act and the rules and regulations thereunder, (ii) anyExchange Offer Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statementstherein not misleading and (iii) any prospectus forming part of any Exchange Offer Registration Statement, and any supplement to such prospectus, does not include an untrue statement of a material fact or omit to state a material fact required to bestated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

 

If following the date hereof there has been announced a change in Commission policy with respect to exchange offers that in the reasonable opinion ofcounsel to the Company raises a substantial question as to whether the Registered Exchange Offer is permitted by applicable federal law, the Company will seek a no-action letter or other favorable decision from the Commission allowing the Company toconsummate the Registered Exchange Offer unless the Company makes a good faith determination based on the advice of counsel that such a request would be denied in light of publicly available no-action letters, in which case the Company shall proceedto file a Shelf Registration Statement pursuant to the provisions of Section 2 hereof. In the event the Company seeks a no-action letter or other favorable decision from the Commission pursuant to the preceding sentence, the Company will pursue theissuance of such a decision to the Commission staff level. In connection with the foregoing, the Company will take all such other actions as may be requested by the Commission or otherwise required in connection with the issuance of such decision,including without limitation (i) participating in telephonic conferences with the Commission, (ii) delivering to the Commission staff an analysis prepared by counsel to the Company setting forth the legal bases, if any, upon which such counsel hasconcluded that the Registered Exchange Offer should be permitted and (iii) diligently pursuing a resolution (which need not be favorable) by the Commission staff. 

 

2. *Shelf Registration*. If, (i) because of any change in law or in applicable interpretations thereof by the staff ofthe Commission, the Company is not permitted to effect a Registered Exchange Offer, as contemplated by Section 1 hereof, (ii) the Registered Exchange Offer is not consummated within 220 days of the Issue Date, (iii) any Initial Purchaser so requestswith respect to the Initial Securities (or the Private Exchange Securities) not eligible to be exchanged for Exchange Securities in the Registered Exchange Offer and held by it following consummation of the Registered Exchange Offer or (iv) anyHolder (other than an Exchanging Dealer) is not eligible to participate in the Registered Exchange Offer or, in the case of any Holder (other than an Exchanging Dealer) that participates in the Registered Exchange Offer, such Holder does not receivefreely tradeable Exchange Securities on the date of the exchange and any such Holder so requests, the Company shall take the following actions: 

 

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(a) The Company shall, at its cost, as promptly as practicable (but in no event more than45 days after so required or requested pursuant to this Section 2) file with the Commission and thereafter shall use its reasonable best efforts to cause to be declared effective a registration statement (the “Shelf Registration Statement”and, together with the Exchange Offer Registration Statement, a “Registration Statement”) on an appropriate form under the Securities Act relating to the offer and sale of the Transfer Restricted Securities (as defined in Section 6 hereof)by the Holders thereof from time to time in accordance with the methods of distribution set forth in the Shelf Registration Statement and Rule 415 under the Securities Act (hereinafter, the “Shelf Registration”); provided, however, that noHolder (other than an Initial Purchaser) shall be entitled to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all the provisions of this Agreement applicable to suchHolder. 

 

(b) The Company shall use itsreasonable best efforts to keep the Shelf Registration Statement continuously effective in order to permit the prospectus included therein to be lawfully delivered by the Holders of the relevant Securities, for a period of two years (or for suchlonger period if extended pursuant to Section 3(j) below) from the date of its effectiveness (or until one year from the effective date of the Shelf Registration Statement if the Shelf Registration Statement is filed at the request of any InitialPurchaser) or such shorter period that will terminate when all the Securities covered by the Shelf Registration Statement (i) have been sold pursuant thereto or (ii) are no longer restricted securities (as defined in Rule 144 under the SecuritiesAct, or any successor rule thereof). The Company shall be deemed not to have used its reasonable best efforts to keep the Shelf Registration Statement effective during the requisite period if it voluntarily takes any action that would result inHolders of Securities covered thereby not being able to offer and sell such Securities during that period, unless such action is required by applicable law. 

 

(c) Notwithstanding any other provisions of this Agreement to the contrary, the Company shall cause the Shelf Registration Statement andthe related prospectus and any amendment or supplement thereto, as of the effective date of the Shelf Registration Statement, amendment or supplement, (i) to comply in all material respects with the applicable requirements of the Securities Act andthe rules and regulations of the Commission and (ii) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of thecircumstances under which they were made, not misleading. 

 

3.*Registration Procedures*. In connection with any Shelf Registration contemplated by Section 2 hereof and, to the extent applicable, any Registered Exchange Offer contemplated by Section 1 hereof, the following provisions shall apply:

 

(a) The Company shall (i) furnish to eachInitial Purchaser, prior to the filing thereof with the Commission, a copy of the Registration Statement and each amendment thereof and each supplement, if any, to the prospectus included therein and, in the event that an Initial Purchaser (withrespect to any portion of an unsold allotment from the original offering) is participating in the Registered Exchange Offer or the Shelf Registration Statement, the Company shall use its best efforts to reflect in each such document, when so filedwith the Commission, such comments as such Initial Purchaser reasonably may propose; (ii) include the information set forth in Annex A hereto on the cover, in Annex B hereto in the “Exchange Offer Procedures” section and the “Purposeof the Exchange Offer” section and in Annex C hereto in the “Plan of Distribution” 

 

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section of the prospectus forming a part of the Exchange Offer Registration Statement and include theinformation set forth in Annex D hereto in the Letter of Transmittal delivered pursuant to the Registered Exchange Offer; (iii) if requested by an Initial Purchaser, include the information required by Items 507 or 508 of Regulation S-K under theSecurities Act, as applicable, in the prospectus forming a part of the Exchange Offer Registration Statement; (iv) include within the prospectus contained in the Exchange Offer Registration Statement a section entitled “Plan ofDistribution,” reasonably acceptable to the Initial Purchasers, which shall contain a summary statement of the positions taken or policies made by the staff of the Commission with respect to the potential “underwriter” status of anybroker-dealer that is the beneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of Exchange Securities received by such broker-dealer in the Registered Exchange Offer (a“Participating Broker-Dealer”), whether such positions or policies have been publicly disseminated by the staff of the Commission or such positions or policies, in the reasonable judgment of the Initial Purchasers based upon advice ofcounsel (which may be in-house counsel), represent the prevailing views of the staff of the Commission; and (v) in the case of a Shelf Registration Statement, include the names of the Holders, who propose to sell Securities pursuant to the ShelfRegistration Statement, as selling securityholders. 

 

(b) The Company shall give written notice to the Initial Purchasers, the Holders of the Securities and any Participating Broker-Dealer from whom the Company has received prior written notice that it will be a Participating Broker-Dealer inthe Registered Exchange Offer (which notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made): 

 

(i) when the Registration Statement or any amendment theretohas been filed with the Commission and when the Registration Statement or any post-effective amendment thereto has become effective; 

 

(ii) of any request by the Commission for amendments or supplements to the Registration Statement or the prospectus included therein orfor additional information; 

 

(iii) of theissuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; 

 

(iv) of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of theSecurities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and 

 

(v) of the happening of any event that requires the Company to make changes in the Registration Statement or the prospectus in order thatthe Registration Statement or the prospectus do not contain an untrue statement of a material fact nor omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the prospectus, in lightof the circumstances under which they were made) not misleading. 

 

(c) The Company shall make every reasonable effort to obtain the withdrawal at the earliest possible time, of any order suspending the effectiveness of the Registration Statement. 

 

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(d) The Company shall furnish to each Holder of Securities included within the coverageof the Shelf Registration, without charge, at least one copy of the Shelf Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if the Holder so requests in writing, all exhibits thereto(including those, if any, incorporated by reference). 

 

(e) The Company shall deliver to each Exchanging Dealer and each Initial Purchaser, and to any other Holder who so requests, without charge, at least one copy of the Exchange Offer Registration Statement and any post-effective amendmentthereto, including financial statements and schedules, and, if any Initial Purchaser or any such Holder requests, all exhibits thereto (including those incorporated by reference). 

 

(f) The Company shall, during the Shelf Registration Period, deliver to each Holder of Securities includedwithin the coverage of the Shelf Registration, without charge, as many copies of the prospectus (including each preliminary prospectus) included in the Shelf Registration Statement and any amendment or supplement thereto as such person mayreasonably request. The Company consents, subject to the provisions of this Agreement, to the use of the prospectus or any amendment or supplement thereto by each of the selling Holders of the Securities in connection with the offering and sale ofthe Securities covered by the prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement. 

 

(g) The Company shall deliver to each Initial Purchaser, any Exchanging Dealer, any Participating Broker-Dealer and such other personsrequired to deliver a prospectus following the Registered Exchange Offer, without charge, as many copies of the final prospectus included in the Exchange Offer Registration Statement and any amendment or supplement thereto as such persons mayreasonably request. The Company consents, subject to the provisions of this Agreement, to the use of the prospectus or any amendment or supplement thereto by any Initial Purchaser, if necessary, any Participating Broker-Dealer and such other personsrequired to deliver a prospectus following the Registered Exchange Offer in connection with the offering and sale of the Exchange Securities covered by the prospectus, or any amendment or supplement thereto, included in such Exchange OfferRegistration Statement. 

 

(h) Prior to anypublic offering of the Securities, pursuant to any Registration Statement, the Company shall register or qualify or cooperate with the Holders of the Securities included therein and their respective counsel in connection with the registration orqualification of the Securities for offer and sale under the securities or “blue sky” laws of such states of the United States as any Holder of the Securities reasonably requests in writing and do any and all other acts or things necessaryor advisable to enable the offer and sale in such jurisdictions of the Securities covered by such Registration Statement; provided, however, that the Company shall not be required to (i) qualify generally to do business in any jurisdiction where itis not then so qualified or (ii) take any action which would subject it to general service of process or to taxation in any jurisdiction where it is not then so subject. 

 

(i) The Company shall cooperate with the Holders of the Securities to facilitate the timely preparation anddelivery of certificates representing the Securities to be sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as the Holders may request a reasonable period of timeprior to sales of the Securities pursuant to such Registration Statement. 

 

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(j) Upon the occurrence of any event contemplated by paragraphs (ii) through (v) ofSection 3(b) above during the period for which the Company is required to maintain an effective Registration Statement, the Company shall promptly prepare and file a post-effective amendment to the Registration Statement or a supplement to therelated prospectus and any other required document so that, as thereafter delivered to Holders of the Securities or purchasers of Securities, the prospectus will not contain an untrue statement of a material fact or omit to state any material factrequired to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Initial Purchasers, the Holders of the Securities and any knownParticipating Broker-Dealer in accordance with paragraphs (ii) through (v) of Section 3(b) above to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Initial Purchasers, the Holders of theSecurities and any such Participating Broker-Dealers shall suspend use of such prospectus, and the period of effectiveness of the Shelf Registration Statement provided for in Section 2(b) above and the Exchange Offer Registration Statement providedfor in Section 1 above shall each be extended by the number of days from and including the date of the giving of such notice to and including the date when the Initial Purchasers, the Holders of the Securities and any known ParticipatingBroker-Dealer shall have received such amended or supplemented prospectus pursuant to this Section 3(j). 

 

(k) Not later than the effective date of the applicable Registration Statement, the Company will provide a CUSIP number for the InitialSecurities, the Exchange Securities or the Private Exchange Securities, as the case may be, and provide the applicable trustee with printed certificates for the Initial Securities, the Exchange Securities or the Private Exchange Securities, as thecase may be, in a form eligible for deposit with The Depository Trust Company. 

 

(l) The Company will comply with all rules and regulations of the Commission to the extent and so long as they are applicable to theRegistered Exchange Offer or the Shelf Registration and will make generally available to its security holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an earnings statement satisfying the provisions of Section11(a) of the Securities Act, no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning with the first month of the Company’s first fiscal quarter commencing after the effective date of theRegistration Statement, which statement shall cover such 12-month period. 

 

(m) The Company shall cause the Indentures to be qualified under the Trust Indenture Act of 1939, as amended, in a timely manner and containing such changes, if any, as shall be necessary for such qualification. Inthe event that such qualification would require the appointment of a new trustee under the Indentures, the Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the Indentures. 

 

(n) The Company may require each Holder of Securities to besold pursuant to the Shelf Registration Statement to furnish to the Company such information regarding the Holder and the distribution of the Securities as the Company may from time to time reasonably require for inclusion in the Shelf RegistrationStatement, and the Company may exclude from such registration the Securities of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request. 

 

(o) The Company shall enter into such customary agreements(including, if requested, an underwriting agreement in customary form) and take all such other action, if any, as any Holder of the Securities shall reasonably request in order to facilitate the disposition of the Securities pursuant to any ShelfRegistration. 

 

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(p) In the case of any Shelf Registration, the Company shall (i) make reasonablyavailable for inspection by the Holders of the Securities, any underwriter participating in any disposition pursuant to the Shelf Registration Statement and any attorney, accountant or other agent retained by the Holders of the Securities or anysuch underwriter all relevant financial and other records, pertinent corporate documents and properties of the Company and (ii) cause the Company’s officers, directors, employees, accountants and auditors to supply all relevant informationreasonably requested by the Holders of the Securities or any such underwriter, attorney, accountant or agent in connection with the Shelf Registration Statement, in each case, as shall be reasonably necessary to enable such persons, to conduct areasonable investigation within the meaning of Section 11 of the Securities Act; provided, however, that the foregoing inspection and information gathering shall be coordinated on behalf of the Initial Purchasers by you and on behalf of the otherparties, by one counsel designated by and on behalf of such other parties as described in Section 4 hereof; and provided, further, that as to any information that is designated in writing by the Company, in good faith, as confidential at the time ofdelivery, such information shall be kept confidential by the Holder or by any such underwriter, attorney, accountant or other agent. 

 

(q) In the case of any Shelf Registration, the Company, if requested by any Holder of Securities covered thereby, shall cause (i) itscounsel to deliver an opinion and updates thereof relating to the Securities in customary form addressed to such Holders and the managing underwriters, if any, thereof and dated, in the case of the initial opinion, the effective date of such ShelfRegistration Statement (it being agreed that the matters to be covered by such opinion shall include, such matters as are customarily included in opinions requested in underwritten public offerings of such type, such as the due incorporation andgood standing of the Company and its subsidiaries; the qualification of the Company and its subsidiaries to transact business as foreign corporations; the due authorization, execution and delivery of the relevant agreement of the type referred to inSection 3(o) hereof; the due authorization, execution, authentication and issuance, and the validity and enforceability, of the applicable Securities; the absence of material legal or governmental proceedings involving the Company and itssubsidiaries; the absence of governmental approvals required to be obtained in connection with the Shelf Registration Statement, the offering and sale of the applicable Securities, or any agreement of the type referred to in Section 3(o) hereof; thecompliance as to form of such Shelf Registration Statement and any documents incorporated by reference therein and of the Indentures with the requirements of the Securities Act and the Trust Indenture Act, respectively; and, as of the date of theopinion and as of the effective date of the Shelf Registration Statement or most recent post-effective amendment thereto, as the case may be, the absence from such Shelf Registration Statement and the prospectus included therein, as then amended orsupplemented, and from any documents incorporated by reference therein of an untrue statement of a material fact or the omission to state therein a material fact required to be stated therein or necessary to make the statements therein notmisleading (in the case of any such documents, in the light of the circumstances existing at the time that such documents were filed with the Commission under the Exchange Act); (ii) its officers to execute and deliver all customary documents andcertificates and updates thereof reasonably requested by any underwriters of the applicable Securities and (iii) its independent public accountants to provide to the selling Holders of the applicable Securities and any underwriter therefor a comfortletter in customary form and covering matters of the type customarily covered in comfort letters in connection with primary underwritten offerings, subject to receipt of appropriate documentation as contemplated, and only if permitted, by Statementof Auditing Standards No. 72. 

 

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(r) In the case of the Registered Exchange Offer, if requested by any Initial Purchaseror any known Participating Broker-Dealer, the Company shall cause (i) its counsel to deliver to such Initial Purchaser or such Participating Broker-Dealer a signed opinion in the form set forth in Section 6(c) of the Purchase Agreement with suchchanges as are customary in connection with the preparation of a Registration Statement and (ii) its independent public accountants to deliver to such Initial Purchaser or such Participating Broker-Dealer a comfort letter, in customary form, meetingthe requirements as to the substance thereof as set forth in Section 6(a) of the Purchase Agreement, with appropriate date changes. 

 

(s) If a Registered Exchange Offer or a Private Exchange is to be consummated, upon delivery of the Initial Securities by Holders to theCompany (or to such other Person as directed by the Company) in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be, the Company shall mark, or caused to be marked, on the Initial Securities so exchanged thatsuch Initial Securities are being canceled in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be; in no event shall the Initial Securities be marked as paid or otherwise satisfied. 

 

(t) The Company will use its reasonable best efforts to (a)if the Initial Securities have been rated prior to the initial sale of such Initial Securities, confirm such ratings will apply to the Securities covered by a Registration Statement, or (b) if the Initial Securities were not previously rated, causethe Securities covered by a Registration Statement to be rated with the appropriate rating agencies, if so requested by Holders of a majority in aggregate principal amount of Securities covered by such Registration Statement, or by the managingunderwriters, if any. 

 

(u) In the event thatany broker-dealer registered under the Exchange Act shall underwrite any Securities or participate as a member of an underwriting syndicate or selling group or “assist in the distribution” (within the meaning of the Conduct Rules (the“Rules”) of the National Association of Securities Dealers, Inc. (“NASD”)) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise,the Company shall use its best efforts to assist such broker-dealer in complying with the requirements of such Rules, including, without limitation, by (i) if such Rules, including Rule 2720, shall so require, engaging a “qualified independentunderwriter” (as defined in Rule 2720) to participate in the preparation of the Registration Statement relating to such Securities, to exercise usual standards of due diligence in respect thereto and, if any portion of the offering contemplatedby such Registration Statement is an underwritten offering or is made through a placement or sales agent, to recommend the yield of such Securities, (ii) indemnifying any such qualified independent underwriter to the extent of the indemnification ofunderwriters provided in Section 5 hereof and (iii) providing such information to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements of the Rules. 

 

(v) The Company shall use its reasonable best efforts totake all other steps necessary to effect the registration of the Securities covered by a Registration Statement contemplated hereby. 

 

4. *Registration Expenses*. (a) All expenses incident to the Company’s performance of and compliance with this Agreement will be borne by theCompany, regardless of whether a Registration Statement is ever filed or becomes effective, including without limitation; 

 

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(i) all registration and filing fees and expenses; 

 

(ii) all fees and expenses of compliance with federalsecurities and state “blue sky” or securities laws; 

 

(iii) all expenses of printing (including printing certificates for the Securities to be issued in the Registered Exchange Offer and the Private Exchange and printing of Prospectuses), messenger and delivery servicesand telephone; 

 

(iv) all fees anddisbursements of counsel for the Company; 

 

(v)all application and filing fees in connection with listing the Exchange Securities on a national securities exchange or automated quotation system pursuant to the requirements hereof; and 

 

(vi) all fees and disbursements of independent certifiedpublic accountants of the Company (including the expenses of any special audit and comfort letters required by or incident to such performance). 

 

The Company will bear its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accountingduties), the expenses of any annual audit and the fees and expenses of any person, including special experts, retained by the Company. 

 

(b) In connection with any Registration Statement required by this Agreement, the Company will reimburse the Initial Purchasers and the Holders ofTransfer Restricted Securities who are tendering Initial Securities in the Registered Exchange Offer and/or selling or reselling Securities pursuant to the “Plan of Distribution” contained in the Exchange Offer Registration Statement orthe Shelf Registration Statement, as applicable, for the reasonable fees and disbursements of not more than one counsel, who shall be Cravath, Swaine & Moore LLP unless another firm shall be chosen by the Holders of a majority in principalamount of the Transfer Restricted Securities for whose benefit such Registration Statement is being prepared. 

 

5. *Indemnification*. (a) The Company agrees to indemnify and hold harmless each Holder of the Securities, any Participating Broker-Dealer and eachperson, if any, who controls such Holder or such Participating Broker-Dealer within the meaning of the Securities Act or the Exchange Act (each Holder, any Participating Broker-Dealer and such controlling persons are referred to collectively as the“Indemnified Parties”) from and against any losses, claims, damages or liabilities, joint or several, or any actions in respect thereof (including, but not limited to, any losses, claims, damages, liabilities or actions relating topurchases and sales of the Securities) to which each Indemnified Party may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon anyuntrue statement or alleged untrue statement of a material fact contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration, or arise out of, or arebased upon, the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and shall reimburse, as incurred, the Indemnified Parties for any legal or otherexpenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action in respect thereof; provided, however, that (i) the Company shall not be liable in any such case to the extent thatsuch loss, claim, damage or liability arises out of or is based upon 

 

11 

any untrue statement or alleged untrue statement or omission or alleged omission made in a Registration Statement orprospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration in reliance upon and in conformity with written information pertaining to such Holder and furnished to the Company by or on behalfof such Holder specifically for inclusion therein and (ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the indemnityagreement contained in this subsection (a) shall not inure to the benefit of any Holder or Participating Broker-Dealer from whom the person asserting any such losses, claims, damages or liabilities purchased the Securities concerned, to the extentthat a prospectus relating to such Securities was required to be delivered by such Holder or Participating Broker-Dealer under the Securities Act in connection with such purchase and any such loss, claim, damage or liability of such Holder orParticipating Broker-Dealer results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Securities to such person, a copy of the final prospectus if the Company had previouslyfurnished copies thereof to such Holder or Participating Broker-Dealer; provided further, however, that this indemnity agreement will be in addition to any liability which the Company may otherwise have to such Indemnified Party. The Company shallalso indemnify underwriters, their officers and directors and each person who controls such underwriters within the meaning of the Securities Act or the Exchange Act to the same extent as provided above with respect to the indemnification of theHolders of the Securities if requested by such Holders. 

 

(b)Each Holder of the Securities, severally and not jointly, will indemnify and hold harmless (i) the Company and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act, (ii) each of their respectivedirectors and (iii) each of their respective officers who signs a Registration Statement from and against any losses, claims, damages or liabilities or any actions in respect thereof, to which the Company or any such controlling person may becomesubject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in aRegistration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration, or arise out of or are based upon the omission or alleged omission to state therein a material factnecessary to make the statements therein not misleading, but in each case only to the extent that the untrue statement or omission or alleged untrue statement or omission was made in reliance upon and in conformity with written informationpertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion therein; and, subject to the limitation set forth immediately preceding this clause, shall reimburse, as incurred, the Company for anylegal or other expenses reasonably incurred by the Company or any such controlling person in connection with investigating or defending any loss, claim, damage, liability or action in respect thereof. This indemnity agreement will be in addition toany liability which such Holder may otherwise have to the Company or any of its controlling persons. 

 

(c) Promptly after receipt by an indemnified party under this Section 5 of notice of the commencement of any action or proceeding (including agovernmental investigation), such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party of the commencement thereof; but the failure to notify theindemnifying party shall not relieve the indemnifying party from any liability that it may have under subsection (a) or (b) above except to the extent that such failure results in the forfeiture by the indemnifying party of substantial rights anddefenses; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party otherwise than under subsection (a) or (b) above. In case any such action is broughtagainst any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying partysimilarly notified, to assume the 

 

12 

defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consentof the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof the indemnifying party will not be liable to such indemnifiedparty under this Section 5 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof. No indemnifying party shall, without the prior writtenconsent of the indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless suchsettlement includes an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action. No indemnifying party shall be liable for any settlement of any such action effected without itswritten consent (which consent shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless anyindemnified party from and against any loss or liability by reason of such settlement or judgment. 

 

(d) If the indemnification provided for in this Section 5 is unavailable or insufficient to hold harmless an indemnified party under subsections (a) or(b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to in subsection (a) or (b) above (i)in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the one hand and the indemnified party on the other from the exchange of the Securities, pursuant to the Registered ExchangeOffer, or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault ofthe indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof) as well as any otherrelevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a materialfact relates to information supplied by the Company on the one hand or such Holder or such other indemnified party, as the case may be, on the other, and the parties’ relative intent, knowledge, access to information and opportunity to corrector prevent such statement or omission. The amount paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other expensesreasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this subsection (d). Notwithstanding any other provision of this Section 5(d), the Holders of the Securitiesshall not be required to contribute any amount in excess of the amount by which the net proceeds received by such Holders from the sale of the Securities pursuant to a Registration Statement exceeds the amount of damages which such Holders haveotherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled tocontribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each person, if any, who controls such indemnified party within the meaning of the Securities Act or the Exchange Act shallhave the same rights to contribution as such indemnified party and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as the Company. 

 

(e) The agreements contained in this Section 5 shall survive the sale of theSecurities pursuant to a Registration Statement and shall remain in full force and effect, regardless of any termination or cancellation of this Agreement or any investigation made by or on behalf of any indemnified party. 

 

13 

6. *Additional Interest Under Certain Circumstances.* (a) Additional interest (the “AdditionalInterest”) with respect to the Initial Securities shall be assessed as follows if any of the following events occur (each such event in clauses (i) through (v) below a “Registration Default”): 

 

(i) If by July 22, 2004, neither the Exchange OfferRegistration Statement nor a Shelf Registration Statement has been filed with the Commission; 

 

(ii) If by October 20, 2004, the Exchange Offer Registration Statement or, if obligated to file a Shelf Registration Statement pursuant toSection 2 of this Agreement, a Shelf Registration Statement is not declared effective by the Commission; 

 

(iii) If the Registered Exchange Offer is not consummated on or before the 40th day after the Exchange Offer Registration Statement isdeclared effective; 

 

(iv) If obligated to filethe Shelf Registration Statement, the Company fails to file the Shelf Registration Statement with the SEC on or prior to the 45th day after the date (the “Shelf Filing Date”) on which the obligation to file a Shelf Registration Statementarises; 

 

(v) If after either the ExchangeOffer Registration Statement or the Shelf Registration Statement is declared effective (A) such Registration Statement thereafter ceases to be effective; or (B) such Registration Statement or the related prospectus ceases to be usable (except aspermitted in paragraph (b)) in connection with resales of Transfer Restricted Securities during the periods specified herein because either (1) any event occurs as a result of which the related prospectus forming part of such Registration Statementwould include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, or (2) it shall be necessary to amend suchRegistration Statement or supplement the related prospectus, to comply with the Securities Act or the Exchange Act or the respective rules thereunder. 

 

Additional Interest shall accrue on the Initial Securities over and above the interest set forth in the title of the Securities from and including the date on which anysuch Registration Default shall occur to but excluding the date on which all such Registration Defaults have been cured, at a rate of 0.50% per annum (the “Additional Interest Rate”) for the first 90-day period immediately following theoccurrence of such Registration Default. The Additional Interest Rate shall increase by an additional 0.50% per annum with respect to each subsequent 90-day period until all Registration Defaults have been cured, up to a maximum Additional InterestRate of 2.0% per annum. 

 

(b) A Registration Default referred toin Section 6(a)(iii)(B) hereof shall be deemed not to have occurred and be continuing in relation to a Shelf Registration Statement or the related prospectus if (i) such Registration Default has occurred solely as a result of (x) the filing of apost-effective amendment to such Shelf Registration Statement to incorporate annual audited financial information with respect to the Company where such post-effective amendment is not yet effective and needs to be declared effective to permitHolders to use the related prospectus or (y) other material events, with respect to the Company that would need to be described in such Shelf Registration Statement or the related prospectus and (ii) in the case of clause (y), the Company isproceeding promptly and in good faith to amend or supplement such Shelf Registration Statement and related prospectus to describe such events; provided, however, that in any case if such Registration Default occurs for a continuous period in excessof 30 days, Additional Interest 

 

14 

shall be payable in accordance with the above paragraph from the day such Registration Default occurs until suchRegistration Default is cured. 

 

(c) Any amounts of AdditionalInterest due pursuant to clause (i), (ii) or (iii) of Section 6(a) above will be payable in cash on the regular interest payment dates with respect to the Initial Securities. The amount of Additional Interest will be determined by multiplying theapplicable Additional Interest rate by the principal amount of the Initial Securities, multiplied by a fraction, the numerator of which is the number of days such Additional Interest rate was applicable during such period (determined on the basis ofa 360-day year comprised of twelve 30-day months), and the denominator of which is 360. 

 

(d) “Transfer Restricted Securities” means each Security until (i) the date on which such Transfer Restricted Security has been exchanged by a person other than a broker-dealer for a freely transferableExchange Security in the Registered Exchange Offer, (ii) following the exchange by a broker-dealer in the Registered Exchange Offer of a Initial Security for an Exchange Note, the date on which such Exchange Note is sold to a purchaser who receivesfrom such broker-dealer on or prior to the date of such sale a copy of the prospectus contained in the Exchange Offer Registration Statement, (iii) the date on which such Initial Security has been effectively registered under the Securities Act anddisposed of in accordance with the Shelf Registration Statement or (iv) the date on which such Initial Securities is distributed to the public pursuant to Rule 144 under the Securities Act or is saleable pursuant to Rule 144(k) under the SecuritiesAct. 

 

7. *Rules 144 and 144A*. The Company shall use itsreasonable best efforts to file the reports required to be filed by it under the Securities Act and the Exchange Act in a timely manner and, if at any time the Company is not required to file such reports, it will, upon the request of any Holder ofInitial Securities, make publicly available other information so long as necessary to permit sales of their securities pursuant to Rules 144 and 144A. The Company covenants that it will take such further action as any Holder of Initial Securitiesmay reasonably request, all to the extent required from time to time to enable such Holder to sell Initial Securities without registration under the Securities Act within the limitation of the exemptions provided by Rules 144 and 144A (including therequirements of Rule 144A(d)(4)). The Company will provide a copy of this Agreement to prospective purchasers of Initial Securities identified to the Company by the Initial Purchasers upon request. Upon the request of any Holder of InitialSecurities, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Company to register any of itssecurities pursuant to the Exchange Act. 

 

8. *UnderwrittenRegistrations*. If any of the Transfer Restricted Securities covered by any Shelf Registration are to be sold in an underwritten offering, the investment banker or investment bankers and manager or managers that will administer the offering(“Managing Underwriters”) will be selected by the Holders of a majority in aggregate principal amount of such Transfer Restricted Securities to be included in such offering. 

 

No person may participate in any underwritten registration hereunder unless such person (i) agrees to sell suchperson’s Transfer Restricted Securities on the basis reasonably provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers ofattorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 

 

15 

9. *Miscellaneous.*

 

(a) *Amendments and Waivers*. The provisions of this Agreement may not be amended, modified or supplemented, andwaivers or consents to departures from the provisions hereof may not be given, except by the Company and the written consent of the Holders of a majority in principal amount of the Securities affected by such amendment, modification, supplement,waiver or consents. 

 

(b) *Notices*. All notices and othercommunications provided for or permitted hereunder shall be made in writing by hand delivery, first-class mail, facsimile transmission, or air courier which guarantees overnight delivery: 

 

(1) if to a Holder of the Securities, at the most current address given bysuch Holder to the Company. 

 

(2) if to the Initial Purchasers;

 

Credit Suisse First Boston LLC 

Eleven Madison Avenue 

New York, NY 10010-3629 

Fax No.: (212) 325-8278 

Attention: Transactions Advisory Group 

 

with a copy to: 

 

Cravath, Swaine & Moore LLP 

Worldwide Plaza 

825 Eighth Avenue 

New York, NY 10019 

Fax No.: (212) 474-3700 

Attention: Kris F. Heinzelman, Esq. 

 

(3) if to the Company, at its address as follows: 

 

Delco Remy International, Inc. 

2902 Enterprise Drive 

Anderson, IN 46013 

Fax No.: (765) 778-6424 

 

with a copy to: 

 

Dechert LLP 

4000 Bell Atlantic Tower 

1717 Arch Street 

Philadelphia, PA 19103 

Fax No.: (215) 994-2222 

Attention: Gil C. Tily, Esq. 

 

All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three business days after being deposited in the mail, postage prepaid, if mailed; when receipt isacknowledged by recipient’s facsimile machine operator, if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier guaranteeing next day delivery. 

 

16 

(c) *No Inconsistent Agreements*. The Company has not, as of the date hereof, entered into, norshall it, on or after the date hereof, enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders herein or otherwise conflicts with the provisions hereof. 

 

(d) *Successors and Assigns*. This Agreement shall be binding upon theCompany and its successors and assigns. 

 

(e)*Counterparts*. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constituteone and the same agreement. 

 

(f) *Headings*. The headingsin this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 

 

(g) *Governing Law*. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TOPRINCIPLES OF CONFLICTS OF LAWS. 

 

(h) *Severability*. Ifany one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of theremaining provisions contained herein shall not be affected or impaired thereby. 

 

(i) *Securities Held by the Company*. Whenever the consent or approval of Holders of a specified percentage of principal amount of Securities is required hereunder, Securities held by the Company or itsaffiliates (other than subsequent Holders of Securities if such subsequent Holders are deemed to be affiliates solely by reason of their holdings of such Securities) shall not be counted in determining whether such consent or approval was given bythe Holders of such required percentage. 

 

17 

If the foregoing is in accordance with your understanding of our agreement, please sign and return to theIssuer a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement among the several Initial Purchasers, the Issuer and the Guarantors in accordance with its terms. 

 

Very truly yours,

DELCO REMY INTERNATIONAL, INC.,

By:
 
/s/    David E. Stoll
  
Name:
  
Title:

SUBSIDIARY GUARANTORS:

DELCO REMY AMERICA, INC.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

NABCO, INC.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

POWER INVESTMENTS, INC.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

FRANKLIN POWER PRODUCTS, INC.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

INTERNATIONAL FUEL SYSTEMS, INC.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

 

18 

POWER INVESTMENTS MARINE, INC.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

MARINE CORPORATIONOF AMERICA

By
 
/s/    David E. Stoll
  
Name:
  
Title:

POWRBILT PRODUCTS, INC.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

WORLD WIDE AUTOMOTIVE, L.L.C.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

BALLANTRAE CORPORATION

By
 
/s/    David E. Stoll
  
Name:
  
Title:

WILLIAMS TECHNOLOGIES, INC.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

REMY POWERTRAIN, L.P.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

 

19 

M & M KNOPF AUTO PARTS, L.L.C.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

REMAN HOLDINGS, L.L.C.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

REMY INTERNATIONAL, INC.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

JAX REMAN, L.L.C.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

REMY REMAN, L.L.C.

By
 
/s/    David E. Stoll
  
Name:
  
Title:

 

20 

The foregoing Registration 

Rights Agreement is hereby confirmed 

and accepted as of the date first 

above written. 

 

CREDIT SUISSEFIRST BOSTON LLC 

DEUTSCHE BANK SECURITIESINC. 

WACHOVIA CAPITAL MARKETS, LLC 

 

 

by:   CREDIT SUISSE FIRST BOSTON LLC
  
By:
 
/S/    DOUGLAS A. CRUIKSHANK

 
  
        Name:
  
        Title:

 

21 

ANNEX A 

 

Each broker-dealer that receives Exchange Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectusin connection with any resale of such Exchange Securities. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaningof the Securities Act. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities received in exchange for Initial Securities where such InitialSecurities were acquired by such broker-dealer as a result of market-making activities or other trading activities. The Company has agreed that, for a period of 180 days after the Expiration Date (as defined herein), it will make this Prospectusavailable to any broker-dealer for use in connection with any such resale. See “Plan of Distribution.” 

ANNEX B 

 

Each broker-dealer that receives Exchange Securities for its own account in exchange for Securities, where such Initial Securities were acquired by suchbroker-dealer as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Securities. See “Plan of Distribution.” 

ANNEX C 

 

PLAN OF DISTRIBUTION 

 

Each broker-dealer that receives Exchange Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectusin connection with any resale of such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities received in exchange for InitialSecurities where such Initial Securities were acquired as a result of market-making activities or other trading activities. The Company has agreed that, for a period of 180 days after the Expiration Date, it will make this prospectus, as amended orsupplemented, available to any broker-dealer for use in connection with any such resale. In addition, until            , 20    , all dealers effecting transactions inthe Exchange Securities may be required to deliver a prospectus.(1)

 

The Company will not receive any proceeds from any sale of ExchangeSecurities by brokerdealers. Exchange Securities received by broker-dealers for their own account pursuant to the Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions,through the writing of options on the Exchange Securities or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such resale may bemade directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker-dealer or the purchasers of any such Exchange Securities. Any broker-dealer that resellsExchange Securities that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such Exchange Securities may be deemed to be an “underwriter” within themeaning of the Securities Act and any profit on any such resale of Exchange Securities and any commission or concessions received by any such persons may be deemed to be underwriting compensation under the Securities Act. The Letter of Transmittalstates that, by acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act. 

 

For a period of 180 days after the Expiration Date the Company will promptlysend additional copies of this Prospectus and any amendment or supplement to this Prospectus to any broker-dealer that requests such documents in the Letter of Transmittal. The Company has agreed to pay all expenses incident to the Exchange Offer(including the expenses of one counsel for the Holders of the Securities) other than commissions or concessions of any brokers or dealers and will indemnify the Holders of the Securities (including any broker-dealers) against certain liabilities,including liabilities under the Securities Act. 
(1)In addition, the legend required by Item 502(e) of Regulation S-K will appear on the back cover page of the Exchange Offer prospectus. 

ANNEX D 

 

CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

 
  
Name:                                        
    
Address:                                    
    
____________________
  
 

If the undersigned is not abroker-dealer, the undersigned represents that it is not engaged in, and does not intend to engage in, a distribution of Exchange Securities. If the undersigned is a broker-dealer that will receive Exchange Securities for its own account in exchangefor Initial Securities that were acquired as a result of market-making activities or other trading activities, it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange Securities; however, by so acknowledgingand by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.