Document:

2011 Annual Incentive Bonus Plan

 Exhibit 10.11 
 Remy International, Inc. 
 2011 Annual Incentive Bonus Plan

 This Annual Incentive Bonus Plan (the “Plan”), dated as of January 1, 2011 has been adopted by the
Board of Directors of Remy International, Inc., a Delaware corporation, having its principal offices at 600 Corporation Drive, Pendleton, Indiana 46064 (the “Company”). 

 

	1.	PURPOSE 

 The purpose of
the Remy International, Inc. Annual Incentive Bonus Plan (the “Plan”) is to motivate, retain and reward employees of the Company and its business units for their continued service during each Fiscal Year, as defined below.

  

	2.	DEFINITIONS 

 “Aggregate Award” means, with respect to any Applicable Year, the sum of all Awards for all Participants, without giving effect to the discretionary authority in Section 4.

 “Adjusted EBITDA” means earnings before interest, taxes, depreciation, amortization, non-cash
compensation, minority interest and restructuring costs, all as Adjusted in accordance with Section 6. 

“Annual Incentive Bonus” means, with respect to each Participant, an amount equal to the sum of such
Participant’s Remy Bonus, if any, plus such Participant’s Business Unit Bonus, if any, which amount with respect to any Participant who commences employment with the Company after the first day of any Applicable Year shall be prorated by
multiplying such sum by a fraction (i) the numerator of which is the number of days that have transpired from the first day of such Participant’s employment up to and including the earliest to occur of the last day of such Applicable Year
or the effective date of a Change of Control or termination of such Participant’s employment (other than by the Company for Cause or by the Participant without Good Reason) and (ii) the denominator of which is 365; provided,
however, that in the event a Prorated Annual Incentive Bonus is paid to any Participant in lieu of an Annual Incentive Bonus for any Applicable Year, such Participant’s Annual Incentive Bonus shall be zero. 

“Applicable Year” means the Fiscal Year in respect of which the Annual Incentive Bonus, if any, has been
earned. 
 “Award” means, with respect to any Participant in any Applicable Year, such
Participant’s Annual Incentive Bonus or Prorated Annual Incentive Bonus, as the case may be, for such Applicable Year. 
 “Board” means the Board of Directors of the Company or its duly authorized Compensation Committee. 

 “Business Unit” means, with respect to each Participant,
the business unit of the Company to which such Participant is assigned, as provided in Annex B, including any business operation or entity purchased or acquired by the Company after the Effective Date. 

“Business Unit Actual Adjusted EBITDA” means, with respect to each Participant in any Applicable Year,
the Adjusted EBITDA of such Participant’s Business Unit as of the Measuring Date, as determined by reference to the Company’s audited financial statements for such Applicable Year; provided, however, that in the event a
Change in Control occurs prior to the end of any Applicable Year, the Adjusted EBITDA of such Participant’s Business Unit shall be determined with reference to the Company’s unaudited quarterly financial statements as of the Measuring
Date; provided further, that in the event a Change in Control occurs during the first fiscal quarter of any Applicable Year, such Participant’s Business Unit Actual Adjusted EBITDA will be deemed to be the Business Unit Adjusted
EBITDA Target for the Applicable Year. 
 “Business Unit Bonus” means, with respect to each
participant, the sum of an amount equal to 80% times the product of such Participant’s Business Unit Adjusted EBITDA Ratio and such Participant’s Business Unit Target Bonus, plus 20% times the product of such Participant’s Business
Unit Operating Cash Flow before CAPEX and Interest and such Participant’s Business Unit Target Bonus. 

“Business Unit Adjusted EBITDA Maximum” means, with respect to each Business Unit on each Measuring Date
during any Applicable Year, the amount provided in Annex A, as such Annex may be amended from time-to-time by the Board; provided, however, that the Board may not amend Annex A with respect to any current or prior Applicable Year for
which such amounts have been previously determined. If Business Unit Actual Adjusted EBITDA is between the Business Unit Adjusted EBITDA Target and the Business Unit Adjusted EBITDA Maximum, Participants will receive between 100% and 150% of their
Business Unit Target Bonus. If Business Unit Actual Adjusted EBITDA exceeds the Business Unit Adjusted EBITDA Maximum, Participants will receive 150% of their Business Unit Target Bonus. 

“Business Unit Adjusted EBITDA Ratio” means: 

(a) if the Business Unit Actual Adjusted EBITDA is less than the Business Unit Adjusted EBITDA Threshold, then zero;

 (b) if the Business Unit Actual Adjusted EBITDA is greater than or equal to the Business Unit Adjusted
EBITDA Threshold but less than or equal to the Business Unit Adjusted EBITDA Target, then (i) 0.50 plus (ii) 0.50 multiplied by (x) the Business Unit Actual Adjusted EBITDA minus the Business Unit Adjusted EBITDA Threshold and then
divided by (y) the Business Unit Adjusted EBITDA Target minus the Business Unit Adjusted EBITDA Threshold; 

(c) if the Business Unit Actual Adjusted EBITDA is greater than the Business Unit Adjusted EBITDA Target, but less than
the Business Unit Adjusted EBITDA Maximum, then (i) 1.00 plus (ii) 0.50 multiplied by (x) the Business 

 
Unit Actual Adjusted EBITDA minus the Business Unit Adjusted EBITDA Target and then divided by (y) the Business Unit Adjusted EBITDA Maximum minus the Business Unit Adjusted EBITDA Target;

 (d) if the Business Unit Actual Adjusted EBITDA is equal to or greater than the Business Unit Adjusted EBITDA
Maximum, then 1.50. 
 “Business Unit Adjusted EBITDA Target” means, with respect to each
Business Unit on each Measuring Date during any Applicable Year, the amount provided in Annex A, as such Annex may be amended from time-to-time by the Board; provided, however, that the Board may not amend Annex A with respect to any
current or prior Applicable Year for which such amounts have been previously determined. 
 “Business
Unit Adjusted EBITDA Threshold” means, with respect to each Business Unit on each Measuring Date during any Applicable Year, the amount provided in Annex A, as such Annex may be amended from time-to-time by the Board; provided,
however, that the Board may not amend Annex A with respect to any current or prior Applicable Year for which such amounts have been previously determined. This represents the lowest Business Unit Adjusted EBITDA for which the Participants
will receive the Business Unit portion of their Annual Incentive Bonus. If Business Unit Actual Adjusted EBITDA is between the Business Unit Adjusted EBITDA Threshold and the Business Unit Adjusted EBITDA Target, Participants will receive between
50% and 100% of their Business Unit Target Bonus. 
 “Business Unit Target Bonus” means, with
respect to each Participant, the amount listed next to such Participant’s name on Annex B under “Business Unit Target Bonus.” 
 “Cause” means, with respect to a Participant, (a) the Participant engages in gross misconduct or gross negligence in the performance of such Participant’s duties for the Company
or any of its subsidiaries, (b) the Participant embezzles assets of the Company or any of its subsidiaries, (c) the Participant is convicted (including a plea of guilty or nolo contendere) of a felony involving moral turpitude,
(d) the Participant’s breach of any restrictive covenant in such Participant’s employment agreement, if any, and any other written agreement between the Participant and the Company, or (e) the Participant’s willful and
material failure to follow the lawful and reasonable instructions of the Board, the Company or any officer thereof to whom the Participant reports, as the case may be, which, in each such case (except with regard to (c)), is not cured within a
reasonable period of time after receipt of notice. 
 “Change in Control” means the occurrence
of any of the following events: 
 (a) the Company shall sell, convey or dispose of, by means of any transaction
or series of transactions, all or substantially all of the assets of the Company (on a consolidated basis, it being agreed that for purposes of this definition, “substantially all the assets of the Company” shall include, without
limitation, assets accounting for 51% or more of the sales of the Company and its subsidiaries taken as a whole during the immediately preceding twelve month period); 

 (b) the merger or consolidation of the Company with or into another Person
(as defined below) or the merger of another Person with or into the Company, by means of any transaction or series of transactions, other than a merger or consolidation transaction immediately following which (A) securities issued in such
transaction and in all other merger or consolidation transactions after the date the Company’s Series A Preferred Stock is issued (“Merger Issuance Voting Stock”) represented in the aggregate less than a majority of the total
voting power of the Voting Stock (as defined below) of the surviving Person in such merger or consolidation transaction immediately following such transaction and (B) the holders of securities representing the total voting power of the Voting
Stock of the surviving Person in such merger or consolidation transaction (other than Merger Issuance Voting Stock) hold such securities (other than Merger Issuance Voting Stock) immediately after such transaction and in the same proportion as
before such transaction; 
 (c) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than (A) a person consisting of one or more Permitted Holders (as defined below) (or a person in which Permitted Holders hold a majority of the aggregate
number of shares held by such person), (B) an underwriter of equity securities in a public offering or (C) a person pursuing a drag-along sale pursuant to the terms of the certificate of incorporation of the Company, is or becomes
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause (c) such person shall be deemed to have “beneficial ownership” of all shares that any such person has
the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of a majority of the total voting power of the Voting Stock of the Company; provided, however, that for
purposes of this clause (c) such other person shall be deemed to beneficially own any Voting Stock of a specified person held by a parent entity, if such other person is the beneficial owner (as defined in this clause (c)), directly or
indirectly, of more than a majority of the voting power of the Voting Stock of such parent entity; 
 (d) at any
time (A) that the Company or any successor by merger or consolidation is a public reporting company under the Exchange Act with its common stock listed on a national securities exchange or (B) after a registration statement covering shares
of common stock filed pursuant to a demand registration under the registration rights agreement entered into in connection with the Plan has become effective, individuals who on the Plan Effective Date constituted the Board of Directors (together
with any new directors whose election by such Board of Directors or whose nomination for election by the stockholders of the Company was made pursuant to special nomination rights provided under the Company’s or such successor’s
certificate of incorporation or a stockholders agreement between the Company or such successor and such 

 
stockholder or stockholders or was approved by a vote of a majority of the directors of the Company or such successor then still in office who were either directors on the Plan Effective Date or
whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors then in office. 
 Notwithstanding the foregoing, no Change in Control shall occur due solely to the restructuring of the Company’s debt obligations. For purposes of this Change in Control definition,
“Person” shall mean any individual, corporation, limited liability company, partnership, joint venture, association, joint stock company, trust, unincorporated organization, government or any agency or political subdivision thereof
or any other entity; “Plan Effective Date” shall mean the date of effectiveness of that certain joint prepackaged plan of reorganization under chapter 11 of the Bankruptcy Code dated October 8, 2007, as confirmed by the United
States Bankruptcy Court for the District of Delaware on November 20, 2007, and in accordance with Section 303 of the Delaware General Corporation Law; “Permitted Holders” shall mean each noteholder party to that certain
Plan Support Agreement, dated as of June 15, 2007, as the same may have been amended, modified and supplemented, and any affiliates of such noteholders; and “Voting Stock” means the capital stock of any Person that is at the
time entitled to vote in the election of the board of directors of such Person. 
 “Change in Control
Payment Date” means a date within 30 calendar days of the effective date of a Change in Control. (In the event the Participant’s Annual Incentive Bonus becomes payable under Section 4 hereof other than because of a Change in
Control, the phrase “date of termination” shall be substituted for “date of a Change in Control” hereunder.) 
 “Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder. 

“Committee” means the Compensation Committee of the Board of Directors. 

“Effective Date” means the later to occur of (i) the date that the requisite shareholder approval
necessary to satisfy Section 280G(b)(5) of the Code is obtained with respect to the Plan or (ii) January 1, 2011. 
 “Fiscal Year” means a fiscal year of the Company, which shall begin on January 1 and end on December 31 of each year. 

“Good Reason” means and will be deemed to exist if, without the Participant’s consent, (a) the
Participant suffers a material diminution in the Participant’s duties, responsibilities or effective authority or any adverse changes in the Participant’s titles or positions, (b) the Participant suffers a reduction of
“Base Salary” or target bonus opportunity as defined in his or her employment agreement, if any; or (c) the Company fails to pay any earned compensation or to provide for the Participant’s vested benefits when due
and payable and which, in each such case, is not cured within a reasonable period of time after receipt of notice. For the avoidance of doubt, the setting by the Board of any performance goals for this Plan shall not be deemed Good Reason,

 
regardless of the magnitude of such performance goals. Moreover, the failure by a Participant to renew such Participant’s employment agreement, if any, shall not be deemed to be Good Reason.

 “Measuring Date” means, with respect to any Applicable Year, the last day of such Applicable
Year; provided, however, that if a Change in Control occurs during any Applicable Year, the Measuring Date shall be the last day of the fiscal quarter that immediately precedes the fiscal quarter in which such Change in Control occurs.
For the avoidance of doubt, absent a Change in Control, the Measuring Date with respect to a Participant’s Prorated Annual Incentive Bonus in the event of termination other than for Cause or without Good Reason shall be the last day of the
Applicable Year. 
 “Operating Cash Flow before CAPEX and Interest” means, the change in cash
plus the changes in debt, equity, dividends, interest, and capital expenditures. 
 “Operating Cash Flow
before CAPEX and Interest Ratio” means: 
 a) if the Operating Cash Flow before CAPEX and Interest is
less than the stated Threshold, then zero; 
 (b) if the Operating Cash Flow before CAPEX and Interest is
greater than or equal to the stated Threshold but less than or equal to the stated Target, then (i) 0.50 plus (ii) 0.50 multiplied by (x) the Operating Cash Flow before CAPEX and Interest minus the stated Threshold and then divided by
(y) the stated Target minus the stated Threshold; 
 (c) if the Operating Cash Flow before CAPEX and
Interest is greater than the stated Target, but less than the stated Maximum, then (i) 1.00 plus (ii) 0.50 multiplied by (x) the Operating Cash Flow before CAPEX and Interest minus the stated Target and then divided by (y) the
stated Maximum minus the stated Target; 
 (d) if the Operating Cash Flow before CAPEX and Interest is equal to
or greater than the stated Maximum, then 1.50. 
 “Participant” means any employee of the
Company who is chosen by the Board to become a participant in the Plan in accordance with the provisions of Section 3. 
 “Payment Date” means, with respect to each Applicable Year the date as designated by the Board, but no later than March 15 of the calendar year following the calendar year in which
such Applicable Year ends. 
 “Prorated Annual Incentive Bonus” means, in the event a Change in
Control occurs prior to the end of any Applicable Year or a Participant is terminated other than for Cause or without Good Reason, the Annual Incentive Bonus that would have otherwise been paid multiplied by a fraction, the numerator of which is the
number of days that have transpired in such Applicable Year up to and including the effective date of the Change in Control or termination, as applicable, and the denominator of which is 365. The Prorated Annual Incentive Bonus, if any, shall be
paid in lieu of the Annual Incentive Bonus for such Applicable Year. 

 “Remy Actual Adjusted EBITDA” means, subject to the
provisions of Section 6 below, with respect to any Applicable Year, the Company’s Adjusted EBITDA as of the Measuring Date, as determined by reference to the Company’s audited financial statements for such Applicable Year;
provided, however, that in the event a Change in Control occurs prior to the end of any Applicable Year, Remy Adjusted EBITDA shall be determined with reference to the Company’s unaudited quarterly financial statements as of the
Measuring Date; provided further, that in the event a Change in Control occurs during the first fiscal quarter of any Applicable Year, Remy Actual Adjusted EBITDA will be deemed to be the Remy Adjusted EBITDA Target for the Applicable
Year. 
 “Remy Bonus” means, with respect to each participant, the sum of an amount equal to 80%
times the product of such Participant’s Remy Adjusted EBITDA Ratio and such Participant’s Remy Target Bonus, plus 20% times the product of such Participant’s Remy Operating Cash Flow before CAPEX and Interest and such
Participant’s Remy Target Bonus. 
 “Remy Adjusted EBITDA Maximum” means, subject to the
provisions of Section 6 below, with respect to each Measuring Date during any Applicable Year, the amount provided in Annex A, as such Annex may be amended from time-to-time by the Board; provided, however, that the Board may not
amend Annex A with respect to any current or prior Applicable Year for which such amounts have been previously determined. If Remy Actual Adjusted EBITDA is between the Remy Adjusted EBITDA Target and the Remy Adjusted EBITDA Maximum, Participants
will receive between 100% and 150% of their Remy Target Bonus. If Remy Actual Adjusted EBITDA exceeds the Remy Adjusted EBITDA Maximum, Participants will receive 150% their Remy Target Bonus. 

“Remy Adjusted EBITDA Ratio” means: 

(a) if the Remy Actual Adjusted EBITDA is less than the Remy Adjusted EBITDA Threshold, then zero; 

(b) if the Remy Actual Adjusted EBITDA is greater than or equal to the Remy Adjusted EBITDA Threshold but less than
or equal to the Remy Adjusted EBITDA Target, then (i) 0.50 plus (ii) 0.50 multiplied by (x) the Remy Actual Adjusted EBITDA minus the Remy Adjusted EBITDA Threshold and then divided by (y) the Remy Adjusted EBITDA Target minus
the Remy Adjusted EBITDA Threshold; 
 (c) if the Remy Actual Adjusted EBITDA is greater than the Remy Adjusted
EBITDA Target, but less than the Remy Adjusted EBITDA Maximum, then (i) 1.00 plus (ii) 0.50 multiplied by (x) the Remy Actual Adjusted EBITDA minus the Remy Adjusted EBITDA Target and then divided by (y) the Remy Adjusted EBITDA
Maximum minus the Remy Adjusted EBITDA Target; 
 (d) if the Remy Actual Adjusted EBITDA is equal to or greater
than the Remy Adjusted EBITDA Maximum, then 1.50. 

 “Remy Adjusted EBITDA Target” means, subject to the
provisions of Section 6 below, with respect to each Measuring Date during any Applicable Year, the amount provided in Annex A, as such Annex may be amended from time-to-time by the Board in the event of force maejure; provided,
however, that the Board may not amend Annex A with respect to any current or prior Applicable Year for which such amounts have been previously determined. 

“Remy Adjusted EBITDA Threshold” means, subject to the provisions of Section 6 below, with respect
to each Measuring Date during any Applicable Year, the amount provided in Annex A, as such Annex may be amended from time-to-time by the Board; provided, however, that the Board may not amend Annex A with respect to any current or
prior Applicable Year for which such amounts have been previously determined. This represents the lowest Remy Adjusted EBITDA for which the Participants will receive the Remy portion of their Annual Incentive Bonus. If Remy Actual Adjusted EBITDA is
between the Remy Adjusted EBITDA Threshold and the Remy Adjusted EBITDA Target, Participants will receive between 50% and 100% of their Remy Target Bonus. 
 “Remy Target Bonus” means, with respect to each Participant, the amount listed next to such Participant’s name on Annex B under “Remy Target Bonus.” 

“Section 409A” means Section 409A of the Code and any related guidance issued by the Internal
Revenue Service or the U.S. Treasury Department. 
  

	3.	ELIGIBILITY AND PARTICIPATION 

 The Board and/or senior management, in its sole discretion, shall determine which employees of the Company shall become Participants. Each Participant will be annually notified in writing of his or her
participation in the Plan and provided a written summary and explanation of the Plan. Senior management may, from time to time, amend Annex B; provided, however, that the Board may not make any amendment that would adversely affect any
Participant without such Participant’s consent. 
  

	4.	ANNUAL INCENTIVE BONUS 

Subject to the provisions of Section 5 below, each Participant shall be paid his or her Annual Incentive Bonus, if any, in a lump sum
cash payment on the Payment Date; provided, however, that in the event of a Change in Control, a Prorated Annual Incentive Bonus, if any, for the Applicable Year in which the Change in Control occurs shall be paid in full on the Change
in Control Payment Date. Notwithstanding anything in this Plan to the contrary, the Board shall have discretion to increase or decrease the Award of any Participant, including any Participant who reports directly (a “Reporting
Officer”) to the chief executive officer of the Company (the “CEO”), by an amount that is not more than 25% of the amount of such Award; further, the CEO shall have a similar discretion to so increase or decrease the Award
of any other Participant who is not a Reporting Officer, a “covered employee” or one of the executives with such agreements; provided, however, that the Aggregate Award for any Applicable Year shall not increase as the result
of the exercise of such discretion. 

	5.	PARTIAL YEAR PARTICIPATION, EMPLOYMENT CHANGES, TERMINATION OF EMPLOYMENT AND FORFEITURES 

(a) Partial Year Participation. If an Employee is designated to become a Participant in an Applicable Year as of a date other than
the first day of the Applicable Year, the participant’s bonus compensation for the Applicable Year shall be determined, under rules established and maintained by the Committee for this purpose from time to time, on the basis of the
Participant’s time of participation during the Applicable Year. 
 (b) Employment Changes. Target award percentages
and awards for a Participant for an Applicable Year will be prorated under rules established and maintained by the Committee for this purpose from time to time, in the event of any change in compensation or employment status or location, or any
other change that would effect the determination for the Applicable Year, in proportion to the duration of each applicable factor during the Applicable Year. 
 (c) Termination of Employment and Forfeitures. If, prior to the Payment Date, a Participant resigns from employment with the Company without Good Reason or the Company terminates such
Participant’s employment for Cause, the Participant shall forfeit his or her Annual Incentive Bonus for such Applicable Year. If a Participant’s employment terminates for any other reason, the Participant, or such Participant’s
beneficiary, as the case may be, shall be entitled to receive, upon the earlier to occur of the Payment Date for such Applicable Year or Change in Control Payment Date, if any, a Prorated Annual Incentive Bonus, if any, for the Applicable Year in
which such termination occurs. 
  

	6.	ADJUSTED EBITDA ADJUSTMENTS IN THE EVENT OF BUSINESS UNIT SALE OR ACQUISITION 

(a) In the event of a sale or disposition of one or more Business Units during any Applicable Year of the Term, Remy Adjusted EBITDA
Threshold, Remy Adjusted EBITDA Target, Remy Adjusted EBITDA Maximum and Remy Actual Adjusted EBITDA for such Applicable Year shall each be proportionally Adjusted (up or down as appropriate in the circumstance), in accordance with the reasonable
determination of the Board after consultation with the Company’s auditors, for any fiscal quarter ending after the date of such sale or disposition for such Applicable Year by the relevant Business Unit Adjusted EBITDA Threshold, Business Unit
Adjusted EBITDA Target, Business Unit Adjusted EBITDA Maximum and Business Unit Actual Adjusted EBITDA, respectively, for any fiscal quarter ending after the date of such sale or disposition in any Applicable Year ending after such sale or
disposition. 
 (b) In the event of a purchase or acquisition of one or more Business Units during any Applicable Year of the
Term, Remy Adjusted EBITDA Threshold, Remy Adjusted EBITDA Target, Remy Adjusted EBITDA Maximum and Remy Actual Adjusted EBITDA for such Applicable Year shall each shall be proportionally Adjusted (up or down as appropriate in the circumstance), in
accordance with the reasonable determination of the Board after consultation with the Company’s auditors, for any fiscal quarter ending after the date of such purchase or acquisition for such Applicable Year by the relevant Business Unit
Adjusted EBITDA Threshold, Business Unit Adjusted EBITDA Target, Business Unit Adjusted EBITDA 

 
Maximum and Business Unit Actual Adjusted EBITDA, respectively, for any fiscal quarter ending after the date of such purchase or acquisition in any Applicable Year ending after such purchase or
acquisition. 
 (c) Each such proportional adjustment described in clause (a) and (b) above shall be made based upon
the “base case” valuation analysis underlying the Board’s approval of such transaction referred to in clause (a) or (b), and the resetting of applicable Adjusted EBITDA amounts in accordance with this Section 6 in respect of
each such transaction shall be agreed to by the Board at the time the Board approves such transaction and become effective upon the closing of such transaction. 
  

	7.	ADMINISTRATION 

 The Plan
shall be administered by the Committee. The Committee shall have full discretionary authority in operation and administration of the Plan. The Committee shall act by vote or consent of a majority of its members. To the extent necessary or
appropriate, the Committee will adopt rules, policies and forms for the administration, interpretation and implementation of the Plan. The Committee may delegate administrative authority and responsibility from time to time to and among other
committees and individual Employees of the Company approved by the Committee, but all actions taken pursuant to delegated authority and responsibility shall be subject to review and change by the Committee. All decisions, determinations and
interpretations of the Plan by the Committee shall be final and binding on all parties. 
 A member of the Committee or any
other individual or group to whom authority is delegated shall not participate in and shall not be counted as a member, individual or group with respect to any action of the Committee directly affecting only that member, individual or group.

  

	8.	DESIGNATION OF BENEFICIARY 

A Participant may designate a beneficiary or beneficiaries who, in the event of the Participant’s death prior to the payment of the
Annual Incentive Bonus hereunder, shall receive payment of the Annual Incentive Bonus, if any, and the Prorated Annual Incentive Bonus if any. Such designation shall be made by the Participant on a form prescribed by the Board. The Participant may,
at any time, change or revoke such designation. A beneficiary designation, or revocation of a prior beneficiary designation, will be effective only if it is made in writing on a form provided by the Company, signed by the Participant and received by
the Company’s Global Compensation Department. If the Participant does not designate a beneficiary or the beneficiary dies prior to receiving the Annual Incentive Bonus or Prorated Annual Incentive Bonus payable under the Plan, such amount shall
be paid to the Participant’s estate. 
  

	9.	AMENDMENT AND TERMINATION 

The Board may not terminate this Plan or amend or modify it in whole or in part until after the end of Fiscal Year 2011 in any manner that
would adversely affect any Participant hereunder except with the written consent of a committee to be composed of the chief executive officer, senior vice president and chief financial officer and senior vice president and chief

 
human resources officer of the Company. Notwithstanding the foregoing, if any provision of the Plan contravenes Section 409A, the Company may reform the Plan or any provision hereof to
maintain to the maximum extent practicable the original intent of the provision without violating the provisions of Section 409A. 
  

	10.	MISCELLANEOUS PROVISIONS 

(a) This Plan is completely voluntary on the part of the Company. No employee or other person shall have any claim or right to participate
in this Plan other than as provided hereunder. Neither the establishment of this Plan, nor any action taken hereunder, shall be construed as giving any Participant any right to be retained in the employ of the Company or shall affect the terms and
conditions of any Participant’s employment with the Company. 
 (b) A Participant’s right and interest under the Plan
may not be assigned or transferred, except as provided in Section 8 hereof, and any attempted assignment or transfer shall be null and void. 
 (c) The Plan shall be unfunded and any payments made hereunder shall be paid from the general assets of the Company. The Company shall not be required to establish any special or separate fund, or to make
any other segregation of assets, to assure payment of the Annual Incentive Bonus. 
 (d) The Company shall have the right to
deduct from all amounts paid under the Plan any applicable taxes or other amounts required by law to be withheld. 
 (e) The
Plan shall be binding upon and inure to the benefit of any successor or successors of the Company and the heirs and beneficiaries of each Participant. In addition, the Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and to agree to perform its obligations under the Plan in the same manner and to the same extent that the
Company would be required to perform such obligations if no such succession had taken place. Any reference to the Company hereunder shall include any successor(s) to the Company. 

(f) The Plan shall be construed, interpreted and governed in accordance with the laws of the State of Delaware without reference to rules
relating to conflicts of law. 
 (g) If payment is received for the Daimler Hybrid Program cancellation, this will be a credit
to the 2011 Annual Incentive Bonus Plan calculations for Europe, only to the extent it covers this planned hybrid program income (excess above the planned income will not be credited for bonus purposes). Other adjustments may be made in order to
encourage company growth as directed by the Board of Directors. 

 Annex A 
 Annual Incentive Bonus Plan Thresholds, Targets and Maximums for 2011 

Remy International 
 Measuring Date: 12/31/2011 
  

									
	in Millions	  	Annual	 	  	Pays out at	 
	 Remy International Adjusted EBITDA Threshold
	  				  	 	50	% 
	 Remy International Adjusted EBITDA Target
	  				  	 	100	% 
	 Remy International Adjusted EBITDA Maximum
	  				  	 	150	% 
			
	 	  	Annual	 	  	Pays out at	 
	 Remy International Operating Cash Flow Threshold
	  				  	 	50	% 
	 Remy International Operating Cash Flow Target
	  				  	 	100	% 
	 Remy International Operating Cash Flow Maximum
	  				  	 	150	% 

 Remy Inc.

 Measuring Date: 12/31/2011 
  

									
	 	  	 	 	  	 	 
	in Millions	  	Annual	 	  	Pays out at	 
	 OE Operations Adjusted EBITDA Threshold
	  				  	 	50	% 
	 OE Operations Adjusted EBITDA Target
	  				  	 	100	% 
	 OE Operations Adjusted EBITDA Maximum
	  				  	 	150	% 
			
	 	  	Annual	 	  	Pays out at	 
	 OE Operations Operating Cash Flow Threshold
	  				  	 	50	% 
	 OE Operations Operating Cash Flow Target
	  				  	 	100	% 
	 OE Operations Operating Cash Flow Maximum
	  				  	 	150	% 

 Remy Power Products

 Measuring Date: 12/31/2011 
  

									
	in Millions	  	Annual	 	  	Pays out at	 
	 Remy Power Products Adjusted EBITDA Threshold
	  				  	 	50	% 
	 Remy Power Products Adjusted EBITDA Target
	  				  	 	100	% 
	 Remy Power Products Adjusted EBITDA Maximum
	  				  	 	150	% 
			
	 	  	Annual	 	  	Pays out at	 
	 Remy Power Products Operating Cash Flow Threshold
	  				  	 	50	% 
	 Remy Power Products Operating Cash Flow Target
	  				  	 	100	% 
	 Remy Power Products Operating Cash Flow Maximum
	  				  	 	150	% 

 Europe 
 Measuring Date: 12/31/2011 
  

									
	in Millions	  	Annual	 	  	Pays out at	 
	 Europe Adjusted EBITDA Threshold
	  				  	 	50	% 
	 Europe Adjusted EBITDA Target
	  				  	 	100	% 
	 Europe Adjusted EBITDA Maximum
	  				  	 	150	% 
			
	 	  	Annual	 	  	Pays out at	 
	 Europe Operating Cash Flow Threshold
	  				  	 	50	% 
	 Europe Operating Cash Flow Target
	  				  	 	100	% 
	 Europe Operating Cash Flow Maximum
	  				  	 	150	% 

 Locomotive

 Measuring Date: 12/31/2011 
  

									
	in Millions	  	Annual	 	  	Pays out at	 
	 Locomotive Adjusted EBITDA Threshold
	  				  	 	50	% 
	 Locomotive Adjusted EBITDA Target
	  				  	 	100	% 
	 Locomotive Adjusted EBITDA Maximum
	  				  	 	150	% 
			
	 	  	Annual	 	  	Pays out at	 
	 Locomotive Operating Cash Flow Threshold
	  				  	 	50	% 
	 Locomotive Operating Cash Flow Target
	  				  	 	100	% 
	 Locomotive Operating Cash Flow Maximum
	  				  	 	150	% 

 Annex B – Master List of
Participants is maintained via the secure Remy International, Inc. Merit/Bonus Planning Database.Annual Incentive Bonus Plan

 Exhibit 10.12 
 Remy International, Inc. 
 Annual Incentive Bonus Plan 

March 24, 2011 

 TABLE OF CONTENTS 

 

					
	 Section 1. Establishment and Purpose
	  	 	2	  
		
	 Section 2. Definitions
	  	 	2	  
		
	 Section 3. Administration
	  	 	3	  
		
	 Section 4. Eligibility
	  	 	4	  
		
	 Section 5. Form of Payment
	  	 	4	  
		
	 Section 6. Determination of Incentive Awards
	  	 	4	  
		
	 Section 7. Termination of Employment
	  	 	6	  
		
	 Section 8. Amendment or Termination of the Plan
	  	 	6	  
		
	 Section 9. Taxes
	  	 	7	  
		
	 Section 10. General Provision
	  	 	7	  

 REMY INTERNATIONAL, INC. 

ANNUAL INCENTIVE BONUS PLAN 
 Section 1. Establishment and Purpose 
 Remy International, Inc. (the
“Company”) hereby establishes a short-term incentive compensation plan to be known as the Remy International, Inc. Annual Incentive Bonus Plan (the “Plan”). 

The purpose of the Plan is to enhance the Company’s ability to attract and retain highly qualified employees and to provide such
employees with additional financial incentives to promote the success of the Company and its Subsidiaries. It is intended that incentive awards payable under the Plan will qualify as Performance-Based Compensation, within the meaning of
Section 162(m) of the Code and regulations promulgated thereunder, if such qualification is desired, and the Plan shall be construed accordingly. 
 The Plan is effective as of March 24, 2011. The Plan will remain in effect until the 2015 Annual Meeting of Stockholders, unless it shall be terminated by the Board sooner. 

Section 2. Definitions 
 Unless the context requires otherwise, the following words, when capitalized, shall have the meanings ascribed below: 
  

	 	(a)	“Board” means the Board of Directors of the Company. 

  

	 	(b)	“CEO” means the Chief Executive Officer of the Company. 

  

	 	(c)	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	 	(d)	“Committee” means the Compensation Committee (or a subcommittee thereof) of the Board of such other committee (or subcommittee) of the Board that the Board
shall designate from time to time to administer the Plan. 

  

	 	(e)	“Company” means Remy International, Inc., or any successor thereof. 

 

	 	(f)	“Participant” means an employee of the Company or a Subsidiary selected by the Committee to participate in the Plan. 

 

	 	(g)	“Performance Period” means the calendar year or such other period designated by the Committee. 

  
 2 

	 	(h)	“Performance-Based Compensation” shall have the meaning set forth in Section 162(m) and the regulations promulgated thereunder. 

 

	 	(i)	“Plan” means the Remy International, Inc. Annual Incentive Bonus Plan, as may be amended from time to time. 

 

	 	(j)	“Subsidiary” means any corporation in which the Company owns, directly or indirectly, at least fifty percent (50%) of the total combined voting power of
all classes of stock, or any other entity (including, but not limited to, partnerships and joint ventures) in which the Company owns, directly or indirectly, at least fifty percent (50%) of the combined equity thereof. 

 

	 	(k)	“Target Incentive Award” has the meaning set forth in Section 6(b). 

 Section 3. Administration 
 The Plan shall be administered by the
Committee. The Committee shall consist of two or more members of the Board. To the extent the Committee is taking action with respect to an incentive award intended to qualify as Performance-Based Compensation within the meaning of
Section 162(m) of the Code and regulations promulgated thereunder, it is intended that the Committee will be comprised solely of two or more “outside directors” within the meaning of Section 162(m)(4)(C) of the Code. Subject to
applicable laws and the provisions of the Plan (including any other powers given to the Committee hereunder), and except as otherwise provided by the Board, the Committee shall have full and final authority in its discretion to establish rules and
take all actions, including, without limitation, interpreting the terms of the Plan and any related rules or regulations or other documents enacted hereunder and deciding all questions of fact arising in their application, determined by the
Committee to be necessary in the administration of the Plan. 
 With respect to employees of the Company or a Subsidiary who are
not, and are reasonably not expected to become, subject to the provisions of Section 162(m) of the Code, and who are not executive officers, as that term is determined by the Committee, to the extent permitted by applicable laws, rules and
regulations (including the Company’s Compensation Committee’s Charter and applicable exchange listing requirements), the Committee may delegate its authority and/or responsibilities under the Plan (in whole or in part) to the CEO or such
other selected employee or employees of the Company as the Committee may select, subject to such conditions, restrictions and limitations as may be imposed by the Committee. Any actions duly taken by the CEO or such other employee or employees with
respect to the administration of the Plan, shall be deemed to have been taken by the Committee for purposes of the Plan to the extent such actions are consistent with the terms of the Plan and the scope of the Committee’s delegation.

 All decisions, determinations and interpretations of the Committee shall be final, binding and conclusive on all persons,
including the Company, its Subsidiaries, its stockholders, the Participants and their estates and beneficiaries. No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation, construction or
determination made in connection with the Plan, other than as a result of such individual’s willful misconduct. 

  
 3 

 Section 4. Eligiblity 
 Eligibility under the Plan is limited to those employees of the Company and its Subsidiaries who are designated by the Committee, in its sole and absolute discretion, as eligible to receive an incentive
award under the Plan. 
 Section 5. Form of Payment 
 Payment of incentive awards under the Plan shall be made in cash. 
 Section 6.
Determination of Incentive Awards 
  

	 	(a)	 Designation of Participants, Performance Period, Performance Objectives and Terms of Incentive Awards. Within 90 days after the beginning of
each Performance Period or, if less than 90 days, the number of days which is equal to twenty-five percent (25%) of the relevant Performance Period applicable to an incentive award, the Committee shall, in writing, select the Participants to
whom incentive awards shall be granted, specify terms and conditions for the determination and payment of incentive awards, including, if applicable, the extent to which Participants will have the right to receive an incentive award payment
following termination of employment, designate the applicable Performance Period, establish the Target Incentive Award for each Participant, establish the performance objective or objectives that must be satisfied in order for a Participant to
receive an incentive award for such Performance Period and establish the method in which a Participant’s incentive award will be computed if the performance objectives established by the Committee are met at a level below or above the target
level, which method shall be expressed in terms of an objective formula or standard in the case of an incentive award that is intended to qualify as Performance-Based Compensation. Any such performance objectives will be based upon one or more of
the following performance measures, as determined by the Committee: earnings per share, EBITDAR, economic value created, market share (actual or targeted growth), net income (before or after taxes), operating income, adjusted net income after
capital charge, return on assets (actual or targeted growth), return on capital (actual or targeted growth), return on equity (actual or targeted growth), return on investment (actual or targeted growth), revenue (actual or targeted growth), cash
flow, operating margin, share price, share price growth, total stockholder return, inventory or capital turn, and strategic business criteria consisting of one or more objectives based on meeting specified market penetration goals, productivity
measures, geographic business expansion goals, cost targets, customer satisfaction or employee satisfaction goals, goals relating to merger synergies, management of employment practices and employee

  
 4 

	 	 
benefits, or supervision of litigation and information technology, and goals relating to acquisitions or divestitures of Subsidiaries and/or other affiliates or joint ventures. The targeted level
or levels of performance with respect to such performance measures may be established at such levels and on such terms as the Committee may determine, in its discretion, including in absolute terms, as a goal relative to performance in prior
periods, or as a goal compared to the performance of one or more comparable companies or an index covering multiple companies. Awards (including any related dividends or Dividend Equivalents) that are not intended to qualify for the
performance-based compensation may be based on these or such other performance measures as the Committee may determine. 

  

	 	(b)	Target Incentive Award. Each Participant will have an incentive award opportunity (the “Target Incentive Award”) that will be based on achieving the
target performance objectives established by the Committee. The Target Incentive Award will be a percentage of the Participant’s annual salary at the beginning of the Performance Period or such other amount as the Committee may determine. If
the performance objectives established by the Committee, and any other criteria established by the Committee, are met at the target level, the Participant will receive an incentive award equal to 100% of the Target Incentive Award. If the
performance objectives established by the Committee are met at a level below or above the target level established by the Committee, the Participant may receive an incentive award equal to a percentage of the Target Incentive Award, with such
percentage based on (i) in the case of an incentive award that is intended to qualify as Performance-Based Compensation, the objective formula or standard established in writing by the Committee pursuant to Section 6(a), and (ii) in
the case of any other incentive award, such factors as the Committee shall determine. 

  

	 	(c)	Maximum Incentive Award. The maximum incentive award that may be paid under the Plan to a Participant during any fiscal year shall be $4,000,000.

  

	 	(d)	Committee Determination and Certificate of Incentive Awards. As soon as reasonably practicable after the end of each Performance Period, the Committee shall
(i) determine whether the performance objectives for the Performance Period have been satisfied, (ii) determine the amount of the incentive award to be paid to each Participant for such Performance Period, and (iii) with respect to
incentive awards that are intended to qualify as Performance-Based Compensation, certify such determination in writing. Written certification for this purpose shall include, without limitation, approved minutes of the Committee meeting in which the
certification is made. 

  
 5 

	 	(e)	Payment of Incentive Awards. Incentive awards shall be paid to the Participants following the Committee’s determination of the amount of the incentive award
to be paid to each Participant (and, in the case of incentive awards that are intended to qualify as Performance-Based Compensation, certification by the Committee pursuant to Section 6(d)) no later than the 15th day of the third month
following the calendar year in which ends the Performance Period with respect to which the incentive awards are made. 

  

	 	(f)	Committee Discretion. Notwithstanding the foregoing, the Committee retains the discretion to adjust the amount of any incentive award that would otherwise be
payable to a Participant; provided, however, that incentive awards which would subject to Section 162(m) of the Code not be adjusted upward (the Committee may, in its discretion, adjust such incentive awards downward). 

 

	 	(g)	Unusual or Nonrecurring Events. Unless otherwise determined by the Committee, performance objective targets may be adjusted to take into account unusual or
nonrecurring events affecting the Company, a Subsidiary or a division or business unit, or the financial statements thereof, or changes in applicable laws, regulations or accounting principles to the extent such unusual or nonrecurring events or
changes in applicable laws, regulations or accounting principles otherwise would result in dilution or enlargement of the incentive award intended to be paid. With respect to any incentive award intended to qualify as Performance-Based Compensation,
it is intended that such adjustment be made in such manner as will not cause the incentive award to fail to qualify as Performance-Based Compensation. 

 Section 7. Termination of Employment 
 Except as may be specified by
the Committee pursuant to Section 6(a), a Participant shall have no right to an incentive award under the Plan for any Performance Period in which the Participant is not actively employed by the Company or a Subsidiary on the last day of the
Performance Period to which such incentive award relates. The Committee, in its sole and absolute discretion, may impose such additional service restrictions as it deems appropriate. 
 Section 8. Amendment or Termination of the Plan 
 The Board may at any
time and from time to time, alter, amend, suspend or terminate the Plan in whole or in part; provided, however, that no amendment that requires stockholder approval in order to maintain the qualification of incentive awards intended to qualify as
Performance-Based Compensation shall be made without such stockholder approval. If changes are made to Code Section 162(m) or regulations promulgated thereunder to permit greater flexibility with respect to any incentive award or awards
available under the Plan, the Committee may, subject to this Section 8, make any adjustments to the Plan and/or incentive awards it deems appropriate. 

  
 6 

 Section 9. Taxes 
 Any amount payable to a Participant under the Plan shall be subject to any applicable Federal, state and/or local income and employment taxes and any other amounts that the Company is required by law to
deduct and withhold from such payment. 
 Section 10. General Provision 

 

	 	(a)	No Rights to Employment. Nothing contained in the Plan shall create any rights of employment in any Participant or in any way affect the right and power of the
Company or a Subsidiary to discharge any Participant or otherwise terminate the Participant’s employment at any time with or without cause or to change the terms of employment in any way. 

 

	 	(b)	No Limit on Corporate Actions. Nothing contained in the Plan shall be construed to prevent the Company or any Subsidiary from taking any corporate action, which
is deemed by it to be appropriate or in its best interest, whether or not such action would have an adverse effect on any incentive award paid under the Plan. No Participant or other person shall have any claim against the Company or any Subsidiary
as a result of any such action. 

  

	 	(c)	Non-Exclusive Plan. Neither the adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval shall be construed as
creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements as it may deem desirable. 

  

	 	(d)	Unfunded Plan. Incentive awards under the Plan will be paid from the general assets of the Company, and the rights of Participants under the Plan will be only
those of general unsecured creditors of the Company. 

  

	 	(e)	Non-alienation of Benefits. Except as expressly provided herein, no Participant shall have the power or right to sell, transfer, assign, pledge or otherwise
encumber the Participant’s interest under the Plan. 

  

	 	(f)	Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining
parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

  

	 	(g)	Successors. All obligations of the Company under the Plan shall be binding on any successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation, or other event, or a sale or disposition of all or substantially all of the business and/or assets of the Company and references to the “Company” herein shall be deemed to refer to
such successors. 

  
 7 

	 	(h)	Governing Law. To the extent not preempted by federal law, the Plan shall be construed in accordance with and governed by the laws of the state of Indiana,
excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. 

 

	 	(i)	Section 409A of the Code. It is intended that all incentive awards paid pursuant to the Plan qualify as short-term deferrals, as defined in
Section 1.409A-1(b)(4) of the Treasury Regulations. Nevertheless, to the extent applicable, it is intended that the Plan (and any agreements or other documents entered into with respect to incentive awards under the Plan) and any incentive
awards granted hereunder comply with, and should be interpreted so that they are consistent with, the requirements of Section 409A of the Code and any related regulations or other guidance promulgated with respect to such Section by the U.S.
Department of the Treasury or the Internal Revenue Service. 

  

	
	REMY INTERNATIONAL, INC.
	
	
 

	John H. Weber
	President and Chief Executive Officer
	
	 29 MAR 11

	Date

  
 8

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