Document:

ex101-form8k_012215.htm

EXHIBIT 10.1

 

 

 

 BERKSHIRE BANK

EXECUTIVE LONG-TERM CARE INSURANCE PLAN

Effective January 22, 2015

Article I. Establishment and Interpretation of the Plan

1.1           Establishment. Berkshire Bank hereby adopts, effective as of January 22, 2015, the Berkshire Bank Executive Long-Term Care Insurance Plan, which is a welfare benefit plan providing long-term care insurance for the exclusive benefit of Eligible Individuals of the Bank.

1.2           Purpose. The purpose of the Plan is to provide to Participants certain welfare benefits described herein. The Plan is intended to meet all applicable requirements of the Employee Retirement Income Security Act of 1974, as amended and the Internal Revenue Internal Revenue Code of 1986, as amended, as well as rulings and regulations issued or promulgated thereunder.

Article II. Definitions, Gender and Number

2.1           Definitions. Whenever used in the Plan, the following words and phrases shall have the meanings set forth below unless the context plainly requires a different meaning, and when the defined meaning is intended, the term is capitalized:

 

(a)           “Bank” means Berkshire Bank, and its successors.

 

(b)           “Board” means the Board of Directors of the Bank as constituted at the relevant time.

 

(c)           “Change in Control” means an event of a nature that: (i) would be required to be reported in response to Item 5.01 of the current report on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); or (ii) results in a Change in Control of the Bank or Berkshire Hills Bancorp, Inc. (“Holding Company”) within the meaning of the Bank Change in Control Act and the Rules and Regulations promulgated by the Federal Deposit Insurance Corporation (“FDIC”) at 12 C.F.R. § 303.4(a) with respect to the Bank and the Board of Governors of the Federal Reserve System (“FRB”) at 12 C.F.R. § 225.41(b) with respect to the Holding Company, as in effect on the date hereof; or (iii) results in a Change in Control of the Bank or the Holding Company within the meaning of the Home Owners Loan Act, as amended (“HOLA”), and applicable rules and regulations promulgated thereunder, as in effect at the time of the Change in Control; or (iv) without limitation such a Change in Control shall be deemed to have occurred at such time as (A) any “person” (as the term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Bank or the Holding Company representing 20% or more of the Bank’s or the Holding Company’s outstanding securities except for any securities of the Bank purchased by the Holding Company in connection with the conversion of the Holding Company to the stock form and any securities purchased by any tax-qualified employee benefit plan of the Bank; or (B) individuals who constitute the Board of Directors on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters (3/4) of the directors comprising the Incumbent Board, or whose nomination for election by the Holding Company’s stockholders was approved by the same Nominating Committee serving under an Incumbent Board, shall be, for purposes of this clause (B), considered as though he were a member of the Incumbent Board; or (C) a plan of reorganization, merger, consolidation, sale of all or substantially all the assets of the Bank or the Holding Company or similar transaction occurs in which the Bank or Holding Company is not the resulting entity; or (D) solicitations of shareholders of the Holding Company, by someone other than the current management of the Holding Company, seeking stockholder approval of a plan of reorganization, merger or consolidation of the Holding Company or Bank or similar transaction with one or more corporations as a result of which the outstanding shares of the class of securities then subject to the plan or transaction are exchanged for or converted into cash or property or securities not issued by the Bank or the Holding Company shall be distributed; or (E) a tender offer is made for 20% or more of the voting securities of the Bank or the Holding Company.

 

                                                        

  

  

  

  (d)           “Disabled” means a Participant: (a) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (b) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Participant’s employer; or (c) is determined to be disabled by the Social Security Administration.

 

(e)           “Effective Date” means January 22, 2015.

 

  (f)           “Eligible Individual” means an executive officer of the Bank and his or her spouse whose name appears on Appendix A under the Plan.

 

  (g)           “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

(h)           “Internal Revenue Code” or “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute. References to an Internal Revenue Code section shall be deemed to be that section or to any successor to that section.

 

  (i)           “Insurer” means the insurance company issuing the Policy or Policies providing benefits under the Plan.

 

  (j)           “Participant” means an Eligible Individual whose name appears on Appendix A under the Plan.

 

  (k)           “Plan” means the Berkshire Bank Executive Long-Term Care Insurance Plan, as set forth herein and as may be amended or restated from time to time.

 

-2-

                                                        

  

  

  

(l)           “Plan Administrator” means the Compensation Committee of the Bank (the “Compensation Committee”) or its delegate, pursuant to Section 7.4.

 

(m)           “Plan Year” means the twelve (12) consecutive month period ending each December 31.

 

(n)           “Policy” means a qualified long-term care insurance policy issued by the Insurer and providing benefits to certain Participants.

 

2.2           Gender and Number. Pronoun references in the Plan shall be deemed to be of any gender relevant to the context, and words used in the singular may also include the plural.

Article III. Eligibility and Participation

3.1           Commencement of Participation. An Eligible Individual shall become a Participant in the Plan as of the Effective Date of this Plan.

3.2           Participation Conditions. Eligibility to participate in the Plan is conditioned upon a recommendation by the President and Chief Executive Officer of the Bank and approval by the Compensation Committee by resolution.  Schedule A contains a list of those Participants who have been designated as eligible to participate in the Plan.

3.3          Termination of Participation.

In the event the Eligible Individual who is an employee of the Bank terminates employment with the Bank for whatever reason, or otherwise ceases to be an Eligible Individual before he or she is fully vested in his or her benefits hereunder, as set forth on Appendix A, such Eligible Individual (and his or her spouse, as identified on Appendix A) shall cease to be a Participant in the Plan as of that date. In such case, the former Participant may continue to receive long-term care coverage by paying any required premium directly to the Insurer under the Policy or Policies.  The Compensation Committee may, in its sole discretion, accelerate vesting for any Eligible Individual, regardless of whether the Eligible Individual is an employee of the Bank or a spouse of an employee of the Bank.

3.4           Vesting

Participants shall become 100% fully vested in accordance with the vesting schedule set forth on Appendix A under this Plan, and once a Participant is fully vested in benefits under this Plan (regardless of whether the Participant is an employee of the Bank or a spouse of an employee of the Bank):

 

(a)     If a Participant is covered by a Policy, the Bank shall pay all premiums required under the Policy or Policies for the remainder of the Participant’s lifetime.

 

-3-

 

 

                                                        

  

  

  

(b)     If a Participant is receiving benefits under Section 4.3 of this Plan (or a combination of Sections 4.2 and 4.3 of this Plan), the Bank shall continue to provide such benefits for the remainder of the Participant’s lifetime.

 

(c)     Notwithstanding the foregoing, if an employee of the Bank terminates employment as a result from willful misconduct or similar cause, the Bank’s obligation to provide lifetime benefits under Section 4.2 and/or Section 4.3 of this Plan, as applicable, for the terminated employee and his or her spouse shall cease; and provided further that if the spouse of the employee of the Bank through whom the spouse has obtained benefits hereunder ceases to be the employee’s spouse, then the Bank’s obligation to provide lifetime benefits under Section 4.2 and/or Section 4.3 of this Plan, as applicable, to such spouse shall cease upon the termination of the individual’s status as a spouse of the employee.

 

(d)     All Participants who are employees or former employees of the Bank shall promptly inform the Bank’s Human Resources Department if his or her spouse, who has obtained benefits hereunder, ceases to be the employee’s spouse.

 

  (e)     Notwithstanding anything to the contrary in this Plan, a Participant shall become 100% fully vested upon becoming Disabled.

Article IV. Funding and Benefits

  4.1           Bank Contributions. The Bank pays the entire cost of coverage under the Plan. Participant contributions are neither required nor accepted.

  4.2           Eligible Individuals Covered By Policies. For Eligible Individuals covered by a Policy, benefits shall be provided exclusively through the Eligible Individual’s Policy.

4.3           Eligible Individuals Not Fully Covered By Policies. For Eligible Individuals that are covered by a Policy which does not provide the same maximum level of benefits and coverage as any other Participant’s Policy (policies which provide the maximum level of benefits and coverage are hereinafter referred to as a “Typical Policy”), the Bank shall be responsible for providing the additional benefits and coverage as if the individual was covered by a Typical Policy.  The Bank shall provide such additional benefits and coverage at 135% of the dollar amount of the benefits and 135% of any maximum coverage limitations otherwise payable under a Typical Policy.  An individual entitled to benefits under this Section 4.3 must present the Bank with an itemized account of such expenses in such form as the Bank may reasonably require, and the Bank shall make such payment or reimbursement as soon as practicable and in any event no later than thirty (30) days following the date on which the expense was incurred.  Such reimbursement of taxable medical benefits are intended to be exempt from Code Section 409A under the “short-term deferral rule.”

4.4           Eligible Individuals Covered Under Sections 4.2 and 4.3. A Participant may receive benefits under this Plan under both Sections 4.2 and 4.3, and if this occurs, all provisions of this Plan, including vesting and possible lifetime benefits, will apply to the Participant’s rights under both sections.  For the purposes of clarity, and by way of example, if a Participant receives a Policy that provides for benefits and/or coverage that is less than a Typical Policy, the Participant will receive supplemental coverage under Section 4.3, and if this occurs, a Participant may receive both benefits for life, assuming the vesting schedule is satisfied.

 

 

-4-

                                                        

  

  

  

4.5           Unsecured Creditor. No Participant shall have any right to, or interest in, the assets of the Bank, and Participants shall have the status of general unsecured creditors of the Bank.  This Plan is intended to be an unfunded welfare benefit plan for a select group of management or highly compensated employees of the Bank and their spouses.

Article V. Change in Control

5.1           Change in Control.

 

(a)           Upon a Change in Control, (i) all Participants shall immediately become 100% vested in their benefits hereunder; and (ii) the Bank or any successor shall be irrevocably obligated (a) to pay all future premiums required by the then-current qualified long term care policies, as in effect for the Participants at the effective time of the Change in Control, with such premiums being paid for the lifetime of the Participants, and (b) to provide lifetime benefits under Section 4.3 of this Plan, as applicable.

 

(b)           Notwithstanding anything in this Plan to the contrary, in the event of a Change in Control, the amount of all future payments and/or liabilities to be provided under this Plan, as provided in part under Sections 4.2, 4.3 and 5.1(a) of this Plan, shall be paid into a rabbi trust, within the meaning of IRS Revenue Procedure 92-64, for the benefit of the Participants at least thirty (30) days prior to a Change in Control.  The Compensation Committee shall select an independent third-party trustee, and the Bank, or its successor, shall pay the trustee fees for the lifetime of the trust.  The trust shall be dissolved after all Participants have deceased, and if the trust has insufficient assets, the Bank or its successor shall make additional contributions.

Article VI. Claims Procedure

6.1           Written Claim for Insured Benefits. Benefit payments under Section 4.2 of this Plan are the sole responsibility of the Insurer and benefit payments under Section 4.3 of this Plan are the sole responsibility of the Bank.

6.2           Claims Under the Plan. For claims under the Plan (other than for benefits under a Policy which should be directed to the Insurer), the Participant must make a claim by delivering a written request to the Plan Administrator. Upon receipt of such request the Plan Administrator may require the Participant to complete such forms and provide such additional information as may be reasonably necessary to establish the Participant’s rights under the Plan.  For claims under Section 4.3 of the Plan, the Plan Administrator shall determine whether a claim shall be approved or denied by referring to the terms, conditions and guidelines as provided under a Typical Policy (as such term is defined in Section 4.3 of the Plan, and refers to policies which provide the maximum level of benefits and coverage).   If a claim is wholly or partially denied, the Plan Administrator shall furnish to the Participant a notice of the decision, within sixty (60) days after receipt of the claim by the Plan. If special circumstances require more than sixty (60) days to process the claim, this period may be extended for up to an additional sixty (60) days by giving written notice to the Participant before the end of the initial 60-day period stating the special circumstances requiring the extension and the date by which a final decision is expected. Failure to provide a notice of decision in the time specified shall constitute a denial of the claim and the Participant shall be entitled to require a review of the denial under the review procedures.

 

-5-

 

                                                        

  

  

  

The notice to be provided to every Participant who is denied a claim shall be in writing and shall set forth, in a manner calculated to be understood by the Participant, the following:

 

(a)           The specific reason(s) for the adverse determination;

 

(b)           Reference to the specific Plan provision(s) on which the denial is based;

 

(c)           A description of any additional material or information necessary for the Participant to perfect the claim and an explanation of why such material or information is necessary; and

 

(d)           An explanation of the Plan’s claim review procedure describing the steps to be taken by a Participant who wishes to submit his or her claim for review.

 

The purpose of the review procedure is to provide a procedure by which a Participant may have a reasonable opportunity to appeal a denial of a claim to the Plan Administrator for a full and fair review. To accomplish that purpose, the Participant or his or her duly authorized representative:

 

(e)           May request a review upon written application to the Plan Administrator;

 

(f)           May review and obtain copies of relevant Plan documents, upon request and free of charge; and

 

(g)           May submit for consideration: written comments, documents, records and other information related to the claim.

 

A Participant (or his duly authorized representative) shall request a review by filing a written application for review with the Plan Administrator at any time within sixty (60) days after receipt by the Participant of written notice of the denial of his or her claim. The decision on review of a denied claim shall be made in the following manner:

 

(h)           The decision on review shall be made by the Plan Administrator, who may in his or her discretion hold a hearing on the denied claim. The Plan Administrator shall make a decision promptly, which shall ordinarily be not later than sixty (60) days after the Plan’s receipt of the request for review, unless special circumstances (such as the need to hold a hearing) require an extension of time for processing. In that case a decision shall be rendered as soon as possible, but not later than one hundred twenty (120) days after receipt of the request for review. If an extension of time is required due to special circumstances, written notice of the extension shall be furnished to the Participant prior to the time the extension commences.

 

-6-

 

                                                        

  

  

  

(i)           The decision on review shall be in writing and shall include specific reason(s) for the decisions, written in a manner calculated to be understood by the Participant, as well as reference to the specific plan provisions on which the decision is based.

 

(j)            The Participant may review and obtain copies of relevant Plan documents, upon request and free of charge.

 

(k)            In the event the decision on review is not furnished to the Participant within the time required, the claim shall be deemed denied on review. In the event of an adverse determination on appeal, the Participant may pursue other remedies as provided for under ERISA § 502.

Article VII. Administration

7.1           Named Fiduciary. The Compensation Committee shall be the named fiduciary of the Plan.

 

7.2           Administration. The Compensation Committee has total and complete discretionary authority to determine conclusively for all parties all questions arising in the administration of the Plan and all relevant facts, except where such authority may have been delegated to another individual or entity pursuant to Section 7.4. It is understood that the Insurer has total and complete discretionary authority to determine conclusively for all parties all questions arising in the administration of the Policy and all relevant facts.

 

7.3           Powers of the Compensation Committee. The Compensation Committee, or any agent to whom it has delegated its authority, shall have all powers necessary to administer the Plan, including, without limitation, powers:

 

(a)           to interpret the provisions of the Plan; and

 

(b)            to establish rules for the administration of the Plan and to prescribe any forms required to administer the Plan.

 

7.4           Delegation. The Compensation Committee shall have the power to delegate specific duties and responsibilities. Any delegation by the Compensation Committee, if specifically stated, may allow further delegations by such individual or entity to whom the delegation has been made. The Compensation Committee may rescind any delegation at any time. Each person or entity to whom a duty or responsibility has been delegated shall be responsible for the exercise of those duties or responsibilities and shall not be responsible for any act or failure to act of any other individual or entity.

7.5           Reports and Records. The Compensation Committee and those to whom the Compensation Committee has delegated duties and authority under the Plan shall keep records of all their proceedings and actions, and shall maintain all books of account, records, and other data necessary for the proper administration of the Plan and for compliance with applicable laws.

 

-7-

                                                        

  

  

  

7.6           Actions of the Compensation Committee. The Compensation Committee (including any person or persons to whom the Compensation Committee has delegated duties), has discretionary authority to interpret and construe the terms of the Plan and to determine all questions of eligibility and status of employees, Participants, and beneficiaries under the Plan and their respective interests. All determinations, interpretations, rules and decisions of the Compensation Committee (including those made or established by any person or persons to whom the Compensation Committee has delegated duties) are conclusive and binding upon all persons having or claiming to have any interest or right under the Plan.

 

7.7          Costs. Except as provided to the contrary, the costs of administering the Plan shall be borne by the Bank.

 

7.8           Indemnification. To the extent permitted by law, the Bank shall indemnify the members of the Compensation Committee, and others to whom the Bank has delegated duties and authority pursuant to Section 7.4 who are either employees, officers, or directors of the Bank against any and all claims, losses, damages, expenses, and liabilities, arising from their responsibilities in connection with the Plan which are not covered by insurance (without recourse) paid for by the Bank, unless due to gross negligence or intentional misconduct.

Article VIII. Amendments and Termination

8.1           Amendments. The Compensation Committee shall have the right at any time and from time to time to amend the Plan, in full or in part, provided however, that no amendment shall reduce the level of benefits as are then in effect under the Plan and Policies without the consent of the affected Participants and no amendment shall increase the cost of the Policies to any Participant without such Participant’s consent.  Notwithstanding the foregoing, the Plan may not be amended after a Change in Control unless required by law.

 

8.2           Benefits Provided through Third Parties. In the case of any benefit provided pursuant to an insurance policy or other contract with a third party, only with the consent of the affected Participant, the Compensation Committee may change insurers, policies, or contracts without changing the language of the Plan in order to provide the original benefits provided under this Plan, provided that copies of the contracts or policies are filed with the Plan documents and the Participants are fully informed of the effects of any changes and have consented to such changes.

 

8.3           Termination. The Bank may not terminate the Plan during the lifetime of any fully vested Participant or during the continued employment of any unvested participant. Notwithstanding the foregoing, the Plan may not be terminated in connection with or after a Change in Control.

Article IX. Miscellaneous

9.1           No Guaranty of Employment. The adoption and maintenance of the Plan shall not be deemed to be a contract of employment between the Bank and any Participant. Nothing contained herein shall give any Participant the right to be retained in the employ of the Bank or to interfere with the right of the Bank to discharge any Participant at any time, nor shall it give the Bank the right to require any Participant to remain in its employ or to interfere with the Participant’s right to terminate his or her employment at any time.

 

-8-

                                                        

  

  

  

9.2           Limitation on Liability. The Bank does not guarantee benefits payable under any Policy, and any benefits payable thereunder shall be the exclusive responsibility of the Insurer that is obligated under the Policy.

 

9.3           Nonalienation. No benefit payable at any time under the Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, levy, attachment, or encumbrance of any kind by any Participant or beneficiary.

 

9.4           Applicable Law. The Plan and all rights under it shall be governed by and construed according to the laws of the Commonwealth of Massachusetts, except to the extent those laws are preempted by the laws of the United States of America.

 

9.5           Benefits Provided Through Insurer. In the case of any benefit provided under a Policy, if there is any conflict or inconsistency between the description of benefits contained in the Plan and the Policy, the terms of the Policy shall control.

 

9.6           Captions. Article and section headings and captions are provided for purposes of reference and convenience only and shall not be relied upon in any way to construe, define, modify, limit, or extend the scope of any provision of the Plan.

 

-9-

  

  

  

 

IN WITNESS WHEREOF, the President and Chief Executive Officer of the Bank and the Chairman of the Compensation Committee of Berkshire Hills Bancorp, Inc., which owns 100% of the Bank, have executed this Plan on the dates set forth below.  The Company has joined in executing this Plan in order to guarantee the Bank’s commitments made herein.

	  	
BERKSHIRE BANK

	  	  
	  	  
	
January 22, 2015

	
By: /s/ Michael P. Daly

	
Date

	
Michael P. Daly, President and Chief Executive Officer

	  	  
	  	  
	  	
BERKSHIRE HILLS BANCORP, INC.

	  	  
	  	  
	
 
January 22, 2015

	
By: /s/ John B. Davies

	
Date

	
John B. Davies, Chairman of the Compensation

	  	
Committee

 

-10-

  

  

  

 

BERKSHIRE BANK

LONG-TERM CARE INSURANCE PLAN

 

Appendix A

 

 

The following Bank individuals have been selected to participate in the Berkshire Bank Long Term Care Insurance Plan as of the Effective Date of this Plan:

 

 

	
Name

	
Vesting Schedule

	
Michael Daly, President and Chief Executive Officer

	
100% Immediately Vested

	
Carol Daly, wife of Michael Daly

	
100% Immediately Vested

	
Sean Gray Executive Vice President, Retail Banking

	
Will become 100% vested upon the earliest of (i) attaining age 62 with 10 years of service; (ii) attaining age 55 with 20 years of service; or (iii) Change in Control

	
Kristin Gray, wife of Sean Gray

	
Same vesting schedule as Sean Gray

	
Richard Marotta, Executive Vice President, Chief Risk and Administrative Officer

	
Will become 100% vested upon the earliest of (i) attaining age 62 with 10 years of service; (ii) attaining age 55 with 20 years of service; or (iii) Change in Control

	
Kathy Marotta, wife of Richard Marotta

	
Same vesting schedule as Richard Marotta

	
Linda Johnston, Executive Vice President Director, Human Resources

	
Will become 100% vested upon the earliest of (i) attaining age 62 with 10 years of service; (ii) attaining age 55 with 20 years of service; or (iii) Change in Control

	
Gary Johnston, husband of Linda Johnston

	
Same vesting schedule as Linda Johnston

 

 

 

-11-EX-10.1 VanDenBergh Employment Agreement

Exhibit 10.1

January 9, 2015

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is effective as of February 20, 2015 (the “Effective Date”), by and between Remy International, Inc., a Delaware corporation (the “Company”), and Albert E. VanDenBergh (the “Employee”).  In consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:
1.Purpose.  The purpose of this Agreement is to recognize the Employee’s significant contributions to the overall financial performance and success of the Company and to provide a single, integrated document which shall provide the basis for the Employee’s continued employment by the Company.
2.Employment and Duties. Subject to the terms and conditions of this Agreement, the Company agrees to continue to employ the Employee to serve in an executive capacity as Senior Vice President and Chief Financial Officer.  The Employee accepts such continued employment and agrees to undertake and discharge the duties, functions and responsibilities commensurate with the aforesaid position and such other duties, functions and responsibilities as may be prescribed from time to time by the Company’s Chief Executive Officer (“CEO”).  The Employee shall devote his full business time, attention and effort to the performance of his duties hereunder and, except as described below, shall not engage in any business, profession or occupation, other than personal, personal investment, charitable, or civic activities or other matters that do not conflict with the Employee’s duties.  The Employee shall report to the CEO of the Company.
3.Term. The term of this Agreement shall commence on the Effective Date and shall continue until the third anniversary of the Effective Date or if earlier pursuant to Section 8 (including any extensions as provided in this Section 3, the “Employment Term”).  Notwithstanding any termination of the Employment Term or the Employee’s employment, the Employee and the Company agree that Sections 8 through 28 hereof shall remain in effect until all parties’ obligations and benefits are satisfied thereunder.     
4.Salary. During the Employment Term, the Company shall pay the Employee a base salary at an annual rate, before deducting all applicable withholdings, of no less than Three Hundred Forty Thousand dollars ($340,000) per year, payable at the time and in the manner dictated by the Company’s standard payroll policies.  Such minimum annual base salary may be periodically reviewed and increased (but not decreased without the Employee’s express written consent and except in connection with a broad based corporate officer salary decrease) at the discretion of the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board’) to reflect, among other matters, cost of living increases and performance results (such annual base salary, including any increases pursuant to this Section 4, the “Annual Base Salary”).
5.Other Compensation and Fringe Benefits. In addition to any executive bonus, pension, deferred compensation and long-term incentive plans which the Company or an affiliate of the Company may from time to time make available to the Employee, the Employee shall be entitled to the following during the Employment Term:
		
	(a)
	the standard Company benefits;  and an annual executive physical;

		
	(b)
	medical and other insurance coverage (for the Employee and any covered dependents) provided by the Company, subject to standard costs, terms and other conditions;

		
	(c)
	the Company shall recommend to the Remy Compensation Committee that it approve at the next Committee meeting occurring in the first quarter of 2015 that Employee be awarded a one-time $525,000 restricted stock award which, subject to Remy Compensation Committee approval, will be awarded in the first quarter of 2015 and converted into shares based on the Remy closing stock price on the date of the grant, which will vest in one year from the grant date provided that Employee remains employed with the Company on each applicable grant date; 

		
	(d)
	an annual incentive bonus opportunity under the Company’s Amended and Restated Annual Bonus Plan (“Annual Bonus Plan”) for each calendar year included in the Employment Term, with such opportunity to be earned based upon attainment of performance objectives established by the 

SGR\8735164.1

Committee (“Annual Bonus”).  Employee’s target Annual Bonus shall not be less than 65% of his Annual Base Salary.  For calendar year 2015, Employee shall be entitled to a pro-rata Annual Bonus based on the number of days elapsed between Employee’s first day of employment with the Company and December 31, 2015 divided by 365 and the Company’s performance under the Annual Bonus Plan.  The Annual Bonus shall be paid no later than the March 15 first following the calendar year to which the Annual Bonus relates; and
		
	(e)
	the Company shall recommend to the Remy Compensation Committee that it approve at the next Committee meeting when equity grants are considered and made to the other Remy executive officers that Employee be awarded Company equity worth $600,000 in the form of stock options and/or restricted stock with such terms as determined by the Committee [as generally applicable to all other Remy executive officers] and pursuant to the Remy International, Inc. Omnibus Incentive Plan.   Employee at the discretion of the Committee shall be eligible to participate in future Company equity grants. 

6.Vacation. For and during each calendar year within the Employment Term, the Employee shall be entitled to reasonable paid vacation periods consistent with the Employee’s position and in accordance with the Company’s standard policies, or as the Committee may approve.  In addition, the Employee shall be entitled to such holidays consistent with the Company’s standard policies or as the Board or the Committee may approve.
7.Expense Reimbursement.  In addition to the compensation and benefits provided herein, the Company shall, upon receipt of appropriate documentation, reimburse the Employee for his reasonable travel, lodging, entertainment, promotion and other ordinary and necessary business expenses to the extent such reimbursement is permitted under the Company’s expense reimbursement policy.  
8.Termination of Employment. The Company or the Employee may terminate the Employee’s employment at any time and for any reason in accordance with Subsection 8(a) below.  The Employment Term shall be deemed to have ended on the last day of the Employee’s employment.  The Employment Term shall terminate automatically upon the Employee’s death.
		
	(a)
	Notice of Termination. Any purported termination of the Employee’s employment (other than by reason of death) shall be communicated by written Notice of Termination (as defined herein) from one party to the other in accordance with the notice provisions contained in Section 25.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice that indicates the Date of Termination (as that term is defined in Subsection 8(b)) and, with respect to a termination due to Disability (as that term is defined in Subsection 8(e)), Cause (as that term is defined in Subsection 8(d)), or Good Reason (as that term is defined in Subsection 8(f)), sets forth in reasonable detail the facts and circumstances that are alleged to provide a basis for such termination.  A Notice of Termination from the Company shall specify whether the termination is with or without Cause or due to the Employee’s Disability.  A Notice of Termination from the Employee shall specify whether the termination is with or without Good Reason.

		
	(b)
	Date of Termination. For purposes of this Agreement, “Date of Termination” shall mean the date specified in the Notice of Termination (but in no event shall such date be earlier than the thirtieth (30th) day following the date the Notice of Termination is given) or the date of the Employee’s death.  Notwithstanding the foregoing, in no event shall the Date of Termination occur until the Employee experiences a “separation of service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and notwithstanding anything contained herein to the contrary, the date on which such separation from service takes place shall be the “Date of Termination,” and all references herein to a “termination of employment” (or words of similar meaning) shall mean a “separation of service” within the meaning of Code Section 409A.

		
	(c)
	No Waiver. The failure to set forth any fact or circumstance in a Notice of Termination, which fact or circumstance was not known to the party giving the Notice of Termination when the notice was given, shall not constitute a waiver of the right to assert such fact or circumstance in an attempt to enforce any right under or provision of this Agreement.

2

		
	(d)
	Cause. For purposes of this Agreement, a termination for “Cause” means (i) the Employee engages in gross misconduct or gross negligence in the performance of the Employee’s material duties for the Company or any of its subsidiaries, (ii) the Employee embezzles assets of the Company or any of its subsidiaries, (iii) the Employee is convicted of or enters a plea of guilty or nolo contendere to a felony or misdemeanor involving moral turpitude, (iv) the Employee’s breach of any restrictive covenant set forth in Section 8 of this Agreement, (v) the Employee’s willful and material failure to follow the lawful and reasonable instructions of the CEO or the Board, or (vi) the Employee’s becoming barred or prohibited by the United States Securities and Exchange Commission or other regulatory body from holding his position with the Company or any of its subsidiaries; provided, however, that in each such case (except with regard to subsection (iii) or (vi), is not cured within 30 days after receipt of notice.

		
	(e)
	Disability. For purposes of this Agreement, a termination based upon “Disability” means a termination by the Company based upon the Employee’s entitlement to long-term disability benefits under the Company’s long-term disability plan or policy, as the case may be, as in effect on the Date of Termination; provided, however, that if the Employee is not a participant in the Company’s long-term disability plan or policy on the Date of Termination, he shall still be considered terminated based upon Disability if he would have been entitled to benefits under the Company’s long-term disability plan or policy had he been a participant on his Date of Termination.

		
	(f)
	Good Reason. For purposes of this Agreement, a termination for “Good Reason” means a termination by the Employee based upon the occurrence (without The Employee’s express written consent) of any of the following:

		
	(i)
	a material diminution in the Employee’s title, Annual Base Salary or Annual Bonus opportunity except in connection with a broad based corporate officer salary decrease; or

		
	(ii)
	a material breach by Company of any of its obligations under this Agreement.  

		
	(g)
	Notwithstanding the foregoing, the Employee being placed on a paid leave for up to sixty (60) days pending a determination of whether there is a basis to terminate the Employee for Cause shall not constitute Good Reason.  The Employee’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder; provided, however, that no such event described above shall constitute Good Reason unless: (i) the Employee gives Notice of Termination to Company specifying the condition or event relied upon for such termination within ninety (90) days of the initial existence of such event; and (ii) Company fails to cure the condition or event constituting Good Reason within thirty (30) days following receipt of the Employee’s Notice of Termination.  

9.Obligations of the Company Upon Termination. 
		
	(a)
	Termination by the Company for a Reason Other than Cause, Death or Disability and Termination by the Employee for Good Reason.  If the Employee’s employment is terminated by the Company for any reason other than Cause, Death or Disability; or by the Employee for Good Reason:

		
	(i)
	the Company shall pay the Employee the following (collectively, the “Accrued Obligations”): (A) within five (5) business days after the Date of Termination, any earned but unpaid Annual Base Salary; and (B) within a reasonable time following submission of all applicable documentation, any expense reimbursement payments owed to the Employee for expenses incurred prior to the Date of Termination;

		
	(ii)
	the Company shall pay the Employee no later than March 15th of the calendar year following the year in which the Date of Termination occurs, a prorated Annual Bonus based upon the actual Annual Bonus that would have been earned by the Employee for the year in which the Date of Termination occurs (based upon the target Annual Bonus opportunity in the year in which the Date of Termination occurred, or the prior year if no target Annual Bonus opportunity has yet been determined, and the actual satisfaction of the applicable performance measures, but ignoring any requirement under the Annual Bonus Plan that the 

3

Employee must be employed on the payment date) multiplied by the percentage of the calendar year completed before the Date of Termination; 
		
	(iii)
	the Company shall pay the Employee, no later than the sixtieth (60th) calendar day after the Date of Termination, a lump-sum payment equal to 100% of the sum of: (A) the Employee’s Annual Base Salary in effect immediately prior to the Date of Termination (disregarding any reduction in Annual Base Salary to which the Employee did not expressly consent in writing); and (B) the target Annual Bonus for the year of termination; and

		
	(iv)
	as long as the Employee pays the full monthly premiums for COBRA coverage, the Company shall provide the Employee and, as applicable, the Employee’s eligible dependents with continued medical and dental coverage, on the same basis as provided to the Company’s active executives and their dependents until the earlier of: (i) two (2) years after the Date of Termination; or (ii) the date the Employee is first eligible for medical and dental coverage (without pre-existing condition limitations) with a subsequent employer.  In addition, within sixty-five (65) days after the Date of Termination, the Company shall pay the Employee a lump sum cash payment equal to twenty-four (24) months of medical and dental COBRA premiums based on the level of coverage in effect for the Employee (e.g., employee only or family coverage) on the Date of Termination.  

		
	(v)
	all stock option, restricted stock and other equity-based incentive awards granted by the Company that were outstanding but not vested as of the Date of Termination shall become immediately vested and/or payable, as the case may be, unless the equity incentive awards are based upon satisfaction of performance criteria (not based solely on the passage of time); in which case, such equity awards shall not be forfeited as a result of such termination and otherwise will vest pursuant to their express terms, provided, however, that any such equity awards that are vested pursuant to this provision and that constitute a non-qualified deferred compensation arrangement within the meaning of Code Section 409A shall be paid or settled on the earliest date coinciding with or following the Date of Termination that does not result in a violation of or penalties under Section 409A.

		
	(b)
	Termination by the Company for Cause and by the Employee without Good Reason. If the Employee’s employment is terminated (i) by the Company for Cause or (ii) by the Employee without Good Reason, the Company’s only obligation under this Agreement shall be payment of any Accrued Obligations.

		
	(c)
	Termination due to Death. If the Employee’s employment is terminated due to death, the Company shall pay to the Employee’s estate or personal representative, within sixty-five (65) days after the Date of Termination any Accrued Obligations.  In addition, the Company shall pay to the Employee’s estate or personal representative a prorated Annual Bonus, for the year of termination, determined in accordance with the terms of the Annual Bonus Plan, but not less than the amount equal to the target Annual Bonus for the year of termination, multiplied by the percentage of the calendar year completed before the Date of Termination such payment to be made no later than 21⁄2 months after the end of the year in which the death occurs and at the time when bonus payments are paid to other senior executives in accordance with the Company’s normal payroll practices.

		
	(d)
	Termination Due to the Employee’s Disability.  The Company may terminate the Employee’s employment hereunder due to Disability in accordance with this Section.  Notwithstanding the foregoing, if, in the good faith determination of the Board, the Employee is suffering from a mental or physical disease or disability that impacts the performance of his duties in any material respect, the Company may suspend the Employee for a period of up to one hundred eighty (180) days during the Employment Term (provided that such suspension shall not constitute Good Reason under Section 8(f) and provided further that during such suspension, the Employee shall (i) continue to receive his Annual Base Salary in accordance with Section 4 and (ii) be eligible to receive benefits he may be entitled to under the Company’s short-term disability plan, if any).  If the Board does not re-instate the Employee to employment (under the terms and conditions of this Agreement) by the end of such one hundred eighty (180) day period or at any time prior to the end of such period, in the Board’s 

4

sole discretion, the Company may terminate the Employee’s employment without Cause (as provided under Section 8(d)) if the Employee’s condition does not meet the definition of Disability (as provided under this Section).  In such latter event, the Employee or his legal representative, as the case may be, shall be entitled to: (i) any Annual Base Salary earned but not paid as of the date of the Employee’s termination due to Disability, and (ii) a pro-rata payment, for the year of termination determined according to the terms of the Annual Bonus Plan, but not less than the amount equal to the target Annual Bonus multiplied by a fraction, the numerator of which is the number of days transpired in the calendar year up to and including the date on which the Employee is terminated by the Company due to Disability, and the denominator of which is 365, such payment shall be made no later than 21⁄2 months after the end of the year in which the termination due to disability occurs and at the time when bonus payments are paid to other senior executives in accordance with the Company’s normal payroll procedures.
		
	(e)
	Six-Month Delay. To the extent the Employee is a “specified employee,” as defined in Code Section 409A(a)(2)(B)(i) and the regulations and other guidance promulgated thereunder and any elections made by the Company in accordance therewith, notwithstanding the timing of payment provided in any other Section of this Agreement, no payment, distribution or benefit under this Agreement that constitutes a distribution of deferred compensation (within the meaning of Treasury Regulation Section 1.409A-1(b)) upon separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)), after taking into account all available exemptions, that would otherwise be payable, distributable or settled during the six (6) month period after separation from service, will be made during such six (6) month period, and any such payment, distribution or benefit will instead be paid on the first business day after such six (6) month period, provided, however, that if the Employee dies following the Date of Termination and prior to the payment, distribution, settlement or provision of any payments, distributions or benefits delayed on account of Code Section 409A, such payments, distributions or benefits shall be paid or provided to the personal representative of the Employee’s estate within thirty (30) days after the date of the Employee’s death.

10.Excise Taxes. If any payments or benefits paid or provided or to be paid or provided to the Employee or for the Employee’s benefit pursuant to the terms of this Agreement or otherwise in connection with, or arising out of, his employment with the Company or its subsidiaries or the termination thereof (a “Payment” and, collectively, the “Payments”) would be subject to the excise tax imposed by Code Section 4999 (the “Excise Tax”), then, the Employee may elect for such Payments to be reduced to one dollar less than the amount that would constitute a “parachute payment” under Code Section 280G (the “Scaled Back Amount”).  Any such election must be in writing and delivered to the Company within thirty (30) days after the Date of Termination.  If the Employee does not elect to have Payments reduced to the Scaled Back Amount, the Employee shall be responsible for payment of any Excise Tax resulting from the Payments and the Employee shall not be entitled to a gross-up payment under this Agreement or any other agreement for such Excise Tax.  If the Payments are to be reduced, they shall be reduced in the following order of priority: (i) first from cash compensation, (ii) next from equity compensation, then (iii) pro-rata among all remaining Payments and benefits.  To the extent there is a question as to which Payments within any of the foregoing categories are to be reduced first, the Payments that will produce the greatest present value reduction in the Payments with the least reduction in economic value provided to the Employee shall be reduced first.  Notwithstanding the order of priority of reduction set forth above, the Employee may include in the Employee’s election for a Scaled Back Amount a change to the order of such Payment reduction.  The Company shall follow such revised reduction order, if and only if, the Company, in its sole discretion, determines such change does not violate the provisions of Code Section 409A.  
11.Non-Delegation of the Employee’s Rights. The obligations, rights and benefits of the Employee hereunder are personal and may not be delegated, assigned or transferred in any manner whatsoever, nor are such obligations, rights or benefits subject to involuntary alienation, assignment or transfer.
12.Confidential Information. The Employee acknowledges that he will occupy a position of trust and confidence and will have access to and learn substantial information about the Company and its affiliates and their operations that is confidential or not generally known in the industry including, without limitation, information that relates to purchasing, sales, customers, marketing, and the financial positions and financing arrangements of the Company and its affiliates.  The Employee agrees that all such information is proprietary or confidential, or constitutes trade secrets and is the sole property of the Company and/or its affiliates, as the case may be.  The Employee will keep 

5

confidential, and will not reproduce, copy or disclose to any other person or firm, any such information or any documents or information relating to the Company’s or its affiliates’ methods, processes, customers, accounts, analyses, systems, charts, programs, procedures, correspondence or records, or any other documents used or owned by the Company or any of its affiliates, nor will the Employee advise, discuss with or in any way assist any other person, firm or entity in obtaining or learning about any of the items described in this Section 12.  Accordingly, the Employee agrees that during the Employment Term and at all times thereafter he will not disclose, or permit or encourage anyone else to disclose, any such information, nor will he utilize any such information, either alone or with others, outside the scope of his duties and responsibilities with the Company and its affiliates.
13.Non-Competition.
		
	(a)
	During Employment Term. The Employee agrees that, during the Employment Term, he will devote such business time, attention and energies reasonably necessary to the diligent and faithful performance of the services to the Company and its affiliates, and he will not engage in any way whatsoever, directly or indirectly, in any business that is a direct competitor with the Company’s or its affiliates’ principal business, nor solicit customers, suppliers or employees of the Company or affiliates on behalf of, or in any other manner work for or assist any business which is a direct competitor with the Company’s or its affiliates’ principal business.  In addition, during the Employment Term, the Employee will undertake no planning for or organization of any business activity competitive with the work he performs as an employee of the Company, and the Employee will not combine or conspire with any other employee of the Company or any other person for the purpose of organizing any such competitive business activity.  

		
	(b)
	After Employment Term. The parties acknowledge that the Employee will acquire substantial knowledge and information concerning the business of the Company and its affiliates as a result of his employment.  The parties further acknowledge that the scope of business in which the Company and its affiliates are engaged as of the Effective Date is national and very competitive and one in which few companies can successfully compete.  Competition by the Employee in that business after the Employment Term would severely injure the Company and its affiliates.  Accordingly, for a period of one (1) year after the Employee’s employment terminates for any reason whatsoever, except as otherwise stated herein below, the Employee agrees: (i) not to become an employee, consultant, advisor, principal, partner or substantial shareholder of any firm or business that directly competes with the Company or its affiliates in their principal products and markets; and (ii) on behalf of any such competitive firm or business, not to solicit any person or business that was at the time of such termination and remains a customer or prospective customer, a supplier or prospective supplier, or an employee of the Company or an affiliate.   

14.Return of Company Documents. Upon termination of the Employment Term, the Employee shall return immediately to the Company all records and documents of or pertaining to the Company or its affiliates and shall not make or retain any copy or extract of any such record or document, or any other property of the Company or its affiliates.
15.Improvements and Inventions. Any and all improvements or inventions that the Employee may make or participate in during the Employment Term, unless wholly unrelated to the business of the Company and its affiliates and not produced within the scope of the Employee’s employment hereunder, shall be the sole and exclusive property of the Company.  The Employee shall, whenever requested by the Company, execute and deliver any and all documents that the Company deems appropriate in order to apply for and obtain patents or copyrights in improvements or inventions or in order to assign and/or convey to the Company the sole and exclusive right, title and interest in and to such improvements, inventions, patents, copyrights or applications.  
16.Actions. The parties agree and acknowledge that the rights conveyed by this Agreement are of a unique and special nature and that the Company will not have an adequate remedy at law in the event of a failure by the Employee to abide by its terms and conditions, nor will money damages adequately compensate for such injury.  Therefore, it is agreed between and hereby acknowledged by the parties that, in the event of a breach by the Employee of any of the obligations of this Agreement, the Company shall have the right, among other rights, to damages sustained thereby and to obtain an injunction or decree of specific performance from any court of competent jurisdiction to restrain 

6

or compel the Employee to perform as agreed herein.  Nothing herein shall in any way limit or exclude any other right granted by law or equity to the Company.  
17.Release. Notwithstanding any provision herein to the contrary, the Company may require that, prior to payment of any amount or provision of any benefit under Section 9 (other than due to the Employee’s death), the Employee shall have executed a complete release of the Company and its affiliates and related parties in such form as is reasonably required by the Company, and any waiting periods contained in such release shall have expired; provided, however, that such release shall not apply to the Employee’s rights under the benefit plans and programs of the Company and its affiliates, which rights shall be determined in accordance with the terms of such plans and programs.  With respect to any release required to receive payments owed pursuant to Section 9, the Company must provide the Employee with the form of release no later than seven (7) days after the Date of Termination and the release must be signed by the Employee and returned to the Company, unchanged, effective and irrevocable, no later than sixty (60) days after the Date of Termination.
18.No Mitigation. The Company agrees that, if the Employee’s employment hereunder is terminated during the Employment Term, the Employee is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Employee by the Company hereunder.  Further, the amount of any payment or benefit provided for hereunder (other than pursuant to Subsection 9(a)(v) hereof) shall not be reduced by any compensation earned by the Employee as the result of employment by another employer, by retirement benefits or otherwise.
19.Entire Agreement and Amendment. This Agreement embodies the entire agreement and understanding of the parties hereto in respect of the subject matter of this Agreement supersedes and replaces all prior agreements, understandings and commitments with respect to such subject matter.  This Agreement may be amended only by a written document signed by both parties to this Agreement.
20.Governing Law. This Agreement shall be governed by, and construed in accordance with, 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 this Agreement to the substantive law of another jurisdiction.  Any litigation pertaining to this Agreement shall be adjudicated in courts located in Indianapolis, Indiana. 
21.Successors. This Agreement may not be assigned by the Employee.  In addition to any obligations imposed by law upon any successor to the Company, the Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the stock, business and/or assets of the Company, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  Failure of the Company to obtain such assumption by a successor shall be a material breach of this Agreement.  The Employee agrees and consents to any such assumption by a successor of the Company, as well as any assignment of this Agreement by the Company for that purpose.  As used in this Agreement, “Company” shall mean the Company as herein before defined as well as any such successor that expressly assumes this Agreement or otherwise becomes bound by all of its terms and provisions by operation of law.  This Agreement shall be binding upon and inure to the benefit of the parties and their permitted successors or assigns.
22.Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
23.Attorneys’ Fees. If any party finds it necessary to employ legal counsel or to bring an action at law or other proceedings against the other party to interpret or enforce any of the terms hereof, the party prevailing in any such action or other proceeding shall be promptly paid by the other party its reasonable legal fees, court costs, litigation expenses, all as determined by the court and not a jury, and such payment shall be made by the non-prevailing party no later than the end of the Employee’s tax year following the Employee’s tax year in which the payment amount becomes known and payable; provided, however, that following the Employee’s termination of employment with the Company, if any party finds it necessary to employ legal counsel or to bring an action at law or other proceedings against the other party to interpret or enforce any of the terms hereof, the Company shall pay (on an ongoing basis) to the Employee to the fullest extent permitted by law, all legal fees, court costs and litigation expenses reasonably incurred by the Employee or others on his behalf (such amounts collectively referred to as the “Reimbursed Amounts”); provided, further, that the Employee shall reimburse the Company for the Reimbursed Amounts if it is determined that a majority 

7

of the Employee’s claims or defenses were frivolous or without merit.  Requests for payment of Reimbursed Amounts, together with all documents required by the Company to substantiate them, must be submitted to the Company no later than ninety (90) days after the expense was incurred.  The Reimbursed Amounts shall be paid by the Company within ninety (90) days after receiving the request and all substantiating documents requested from the Employee.  The payment of Reimbursed Amounts during the Employee’s tax year will not impact the Reimbursed Amounts for any other taxable year.  The rights under this Section 23 shall survive the termination of employment and this Agreement until the expiration of the applicable statute of limitations.
24.Severability. If any Section, subsection or provision hereof is found for any reason whatsoever to be invalid or inoperative, that section, subsection or provision shall be deemed severable and shall not affect the force and validity of any other provision of this Agreement.  If any covenant herein is determined by a court to be overly broad thereby making the covenant unenforceable, the parties agree and it is their desire that such court shall substitute a reasonable judicially enforceable limitation in place of the offensive part of the covenant and that as so modified the covenant shall be as fully enforceable as if set forth herein by the parties themselves in the modified form.  The covenants of the Employee in this Agreement shall each be construed as an agreement independent of any other provision in this Agreement, and the existence of any claim or cause of action of the Employee against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants in this Agreement.
25.Notices. Any notice, request, or instruction to be given hereunder shall be in writing and shall be deemed given when personally delivered or three (3) days after being sent by United States Certified Mail, postage prepaid, with Return Receipt Requested, to the parties at their respective addresses set forth below:
To the Company:
Chief Executive Officer
Remy International, Inc.
600 Corporation Drive
Pendleton, Indiana 46064
To the Employee:
At the home address specified in the Company’s records
26.Waiver of Breach. The waiver by any party of any provisions of this Agreement shall not operate or be construed as a waiver of any prior or subsequent breach by the other party. 
27.Tax Withholding. The Company or an affiliate may deduct from all compensation and benefits payable under this Agreement any taxes or withholdings the Company is required to deduct pursuant to state, federal or local laws. 
28.Code Section 409A. To the extent applicable, it is intended that this Agreement and any payment made hereunder shall comply with the requirements of Section 409A of the Code, or an exemption or exclusion therefrom 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 (“Code Section 409A”), provided that for the avoidance of doubt, this provision shall not be construed to require a gross-up payment in respect of any taxes, interest or penalties imposed on the Employee as a result of Code Section 409A.  Any provision that would cause the Agreement or any payment hereof to fail to satisfy Code Section 409A shall have no force or effect until amended in the least restrictive manner necessary to comply with Code Section 409A, which amendment may be retroactive to the extent permitted by Code Section 409A.  Each payment under this Agreement shall be treated as a separate payment for purposes of Code Section 409A.  In no event may the Employee, directly or indirectly, designate the calendar year of any payment to be made under this Agreement.  All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Code Section 409A, including, without limitation, that (i) in no event shall reimbursements by the Company under this Agreement be made later than the end of the calendar year next following the calendar year in which the applicable fees and expenses were incurred; (ii) the amount of in-kind benefits that the Company is obligated to pay or provide in any given calendar year shall not affect the in-kind benefits that the Company is obligated to pay or provide in any other calendar year; (iii) the Employee’s right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no 

8

event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits apply later than the Employee’s remaining lifetime.  The Employee acknowledges that he has been advised to consult with an attorney and any other advisors of the Employee’s choice prior to executing this Agreement, and the Employee further acknowledges that, in entering into this Agreement, he has not relied upon any representation or statement made by any agent or representative of Company or its affiliates that is not expressly set forth in this Agreement, including, without limitation, any representation with respect to the consequences or characterization (including for purpose of tax withholding and reporting) of the payment of any compensation or benefits hereunder under Code Section 409A and any similar sections of state tax law.

9

IN WITNESS WHEREOF the parties have executed this Agreement to be effective as of the date first set forth above.

REMY INTERNATIONAL, INC.

	
	
	By: /s/ Shawn J. Pallagi

	Its:  Senior Vice President and 
Chief Human Resources Officer

ALBERT E. VANDENBERGH
	
	
	/s/ Albert E. VanDenBergh

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]