8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported) May 22, 2006

REMY INTERNATIONAL, INC.

(Exact name of Registrant as Specified in Its Charter)

Delaware	1-3683	35-1909253
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(IRS Employer Identification No.)

2902 Enterprise Drive Anderson, Indiana	46013
(Address of principal executive offices)	(Zip Code)

(765) 778-6499

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01. Entry into a Material Definitive Agreement.

On May 24, 2006, Remy International, Inc (the “Company”) and John H. Weber entered into a Restated Executive Employment Agreement (the “Restated Agreement”).

The material terms of the Restated Agreement restate the terms of the previously filed Employment Agreement between Citicorp Venture Capital Equity Partners, L.P. and Mr. Weber dated January 23, 2006, except for the modification of the Success Payment section which now reads as follows:

• Mr. Weber will be eligible to receive a payment (the “Success Payment”) upon the occurrence of a Corporate Transaction, provided that Mr. Weber is currently employed by the Company on the date of such occurrence (unless otherwise provided under Section 6 of the Restated Agreement), to receive from the Company, as additional compensation, a transaction success payment, as follows:

(a) Up to an amount equal to the first $4,000,000 of total Net Proceeds from all such transactions in the aggregate; plus

(b) An amount (not to exceed $1,000,000) equal to the Net Proceeds, if any, in excess of $8,000,000 up to, but not exceeding $9,000,000 of such Net Proceeds; and

(c) An amount equal to 5% of total Net Proceeds in excess of $9,000,000 from all such transactions in the aggregate.

The above is a brief summary of the changes from the Employment Agreement between Citicorp Venture Capital Equity Partners, L.P. and Mr. Weber dated January 23, 2006, and the Restated Agreement and does not purport to be complete. A copy of the Restated Agreement with Mr. Weber, dated May 24, 2006, is filed as Exhibit 10.1 to this Current Report on Form 8-K. The content of such Exhibit is incorporated herein by reference.

See Item 5.02 for information regarding Gerald T. Mills employment agreement.

Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.

(c) Effective May 22, 2006, the board of directors of the Company elected Gerald T. Mills, 54, as Senior Vice President and Chief Human Resources Officer of the Company. The board of directors also approved an Employment Agreement (the “CHRO Agreement”) between the Company and Mr. Mills.

Prior to being elected to this position with the Company, Mr. Mills served as Vice President of Human Resources at NVR, Inc., from September 2005 until May 2006. Prior to joining NVR, Inc., Mr. Mills was Senior Vice President of Human Resources for Eagle Picher Industries from April 2002 to August 2005. Prior to joining Eagle Picher Industries, Mr. Mills served in various positions at Owens Corning from September 1974 through March 2002, with his last position there served as Vice President Human Resources, Composites Systems Business from July 1995 until March 2002.

The CHRO Agreement is effective as of May 22, 2006, and includes the following material terms:

• Mr. Mills will receive an annualized base salary of $300,000.

• Mr. Mills will receive an annual target incentive bonus of 60% of annual base salary based upon the attainment of certain performance objectives.

• Mr. Mills will be eligible, if employed by the Company on the date of such occurrence, to receive a payment (the “Success Payment”) based upon the proceeds received upon a “corporate transaction” (generally, a sale of the equity interests in or assets of the Company, as defined in the CHRO Agreement). The Success Payment shall equal an amount (a) up to an amount equal to 1% of total Net Proceeds above $9,000,0000, plus (b) an amount equal to 25% of the Net Proceeds in excess of $4,000,000 to $8,000,000 that are paid to the equity holders of the Company.

• Mr. Mills will be eligible to participate in the Company’s benefit programs.

• Mr. Mills will receive a $25,000 sign-on bonus.

• On behalf of Mr. Mills, the Company will make a payment of $65,000 directly to NVR, Inc., for the repayment of Mr. Mills contractual obligations associated with his relocation and signing bonuses received from NVR, Inc. Should Mr. Mills decide to leave the Company within the first year of employment, he will be required to repay this amount.

• Key termination benefits under the CHRO Agreement are summarized as follows:

• After completion of six (6) months of employment and upon Mr. Mills’s resignation for “Good Reason” (as defined in Appendix A) or termination by the Company without “Cause” (as defined in Appendix A) Mr. Mills will receive an amount equal to the sum of twelve (12) months base salary and earned bonus subject to required withholding. This amount is payable over a twelve (12) month period in equal semi-monthly installments.

The above is a brief summary of the CHRO Agreement and does not purport to be complete. A copy of the CHRO Agreement with Mr. Mills, dated May 22, 2006, is filed as Exhibit 10.2 to this Current Report on Form 8-K. The content of such Exhibit is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits.
	10.1	Employment Agreement between Remy International, Inc. and John H. Weber dated May 24, 2006.
	10.2	Employment Agreement between Remy International, Inc. and Gerald T. Mills dated May 22, 2006.
	99.1	Press Release dated May 26, 2006, announcing the election of Gerald T. Mills as Chief Human Resources Officer of Remy International, Inc.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 26, 2006	REMY INTERNATIONAL, INC.
	By:	/s/Amitabh Rai
	Name:	Amitabh Rai
	Title:	Vice President and Corporate Controller Principal Accounting Officer

EXHIBIT INDEX

Number	Exhibit
10.1	Employment Agreement between Remy International, Inc. and John H. Weber dated May 24, 2006.
10.2	Employment Agreement between Remy International, Inc. and Gerald T. Mills dated May 22, 2006.
99.1	Press Release dated May 26, 2006, announcing the election of Gerald T. Mills as Chief Human Resources Officer of Remy International, Inc.

EX-10.1

Exhibit 10.1

RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

This Restated Executive Employment Agreement (this “Agreement”), dated as of May 24, 2006, is made by and between Remy International, Inc., a Delaware corporation, having its principal offices at 2902 Enterprise Drive, Anderson, Indiana 46013 (the “Company”), and John H. Weber (the “Executive”).

Recitals

The Company desires to employ the Executive and the Executive desires to be employed by the Company upon the terms and conditions set forth herein.

Agreement

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, and intending to be legally bound hereby, the Company and the Executive hereby agree as follows:

1. Definitions.

1.1. “Board” means the Board of Directors of the Company.

1.2. “Cause” means (a) the Executive engages in gross misconduct or gross negligence in the performance of the Executive’s duties for the Company or any of its subsidiaries, (b) the Executive embezzles assets of the Company or any of its subsidiaries, (c) the Executive is convicted (including a plea of guilty or nolo contendere) of a felony involving moral turpitude, (d) the Executive’s breach of any restrictive covenant set forth in Section 8 of this Agreement, or (e) the Executive’s willful and material failure to follow the lawful and reasonable instructions of the Board, which, in each such case (except with regard to (c), is not cured within a reasonable period of time after receipt of notice.

1.3. “Corporate Transaction” means the direct or indirect sale or other disposition for value (to an entity or person unrelated or unaffiliated with the Company or Citicorp Venture Capital Equity Partners, L.P. (“Citicorp”)) of the equity interests in the Company or the assets of the Company.

1.4. “Disability” means the Executive’s inability to render, for a period of 180 consecutive days, services hereunder by reason of mental or physical disease or disability, as determined by the written medical opinion of an independent medical physician mutually acceptable to the Executive and the Company.

1.5. “Good Reason” means and will be deemed to exist if, without the Executive’s consent, (a) the Executive suffers a material diminution in the Executive’s duties, responsibilities or effective authority or any adverse changes in the Executive’s titles or positions, (b) the Executive suffers a reduction of “Base Salary” or target bonus opportunity as set forth below; or (c) the Company fails to pay any earned compensation or to provide for the Executive’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.

1.6. “Net Proceeds” means the fair value of the aggregate and cumulative consideration received, less the aggregate of any transaction costs of any kind borne directly or indirectly by the Company or the equity interest holders of the Company, and actually paid or distributed to the equity interest holders of the Company in connection with any Corporate Transaction.

2. Employment. Subject to the terms and provisions set forth in this Agreement and specifically as provided in Section 4.1, the Company hereby agrees that the Executive shall be employed as the chief executive officer of the Company and shall be a member of the Board, and the Executive hereby accepts such employment.

3. At-will Employment. The Executive’s employment under this Agreement shall be at-will.

4. Positions, Responsibilities and Duties.

4.1. Positions. During the period of the Executive’s employment with the Company (the “Employment Period”), the Executive shall be employed and serve as the chief executive officer of the Company and as a member of the Board. In such positions, the Executive shall have the duties, responsibilities and authority normally associated with the office and position of chief executive officer and member of the Board of a privately-held corporation. The Executive shall report to the Board. All other employees of the Company shall report to the Executive and/or his designees.

4.2. Duties. During the Employment Period, the Executive shall have complete responsibility for and authority over all day-to-day operations of the Company. Additionally, during the Employment Period, the Executive shall devote substantially all of his business time, during normal business hours, to the business and affairs of the Company and the Executive shall use his reasonable best efforts to perform faithfully and efficiently the duties and responsibilities contemplated by this Agreement; provided, however, that the Executive shall be allowed, to the extent such activities do not substantially interfere with the performance by the Executive of his duties and responsibilities hereunder, to manage the Executive’s personal, financial and legal affairs. Notwithstanding the foregoing, the Executive shall be permitted (a) to continue to serve as a member of the Duke Pratt School Board of Visitors and (b) to the extent that the Board gives its advance written consent and that such activities do not substantially interfere with the performance by the Executive of his duties and responsibilities hereunder, to serve on corporate, civic or charitable boards or committees.

5. Compensation and Other Benefits.

5.1. Base Salary. During the Employment Period, the Executive shall receive a base salary payable in accordance with the Company’s normal payroll practices of $700,000 per year, which the Board may, in its sole discretion, review and may, in its sole discretion, increase (but not decrease) (“Base Salary”).

2

5.2. Annual Incentive Bonus. In respect of each calendar year during the Employment Period, beginning in calendar year 2006, the Executive shall be eligible to receive an annual target incentive bonus of $700,000 (the “Incentive Bonus”), based upon the attainment of certain objectives, which shall be established by the Executive and the Board. Any payments made under this Section 5.2, shall be paid within 2 and 1/2 months of the end of the year in which such payment is no longer subject to a substantial risk of forfeiture.

5.3. Success Payment. Upon the occurrence of a Corporate Transaction, the Executive will be entitled, provided that the Executive is currently employed by the Company on the date of such occurrence (unless otherwise provided under Section 6), to receive from the Company, as additional compensation, a transaction success payment (the “Success Payment”), as follows:

5.3.1. Up to an amount equal to the first $4,000,000 of total Net Proceeds from all such transactions in the aggregate; plus

5.3.2. An amount (not to exceed $1,000,000) equal to the Net Proceeds, if any, in excess of $8,000,000 up to, but not exceeding $9,000,000 of such Net Proceeds; and

5.3.3. An amount equal to 5% of total Net Proceeds in excess of $9,000,000 from all such transactions in the aggregate.

The Success Payment will be in the same form of consideration as is received by the Company’s equity holders (provided that the Company, in its sole discretion, may determine that all or any portion of the Success Payment will be paid in cash) and will be payable to the Executive by the Company on or about the time or times such Net Proceeds are actually distributed or paid to the Company’s equity interest holders. Any payments made under this Section 5.3 shall be paid within 2 and 1/2 months of the end of the year in which such payment is no longer subject to a substantial risk of forfeiture.

5.4. Supplemental Executive Retirement Plan. During the Employment Period, the Executive shall be eligible participate in the Company’s Supplemental Executive Retirement Plan as maintained by the Company from time to time (the “SERP”), at the benefit level as provided in Schedule A of the SERP.

5.5. Benefit Plans. During the Employment Period, the Executive shall be eligible to participate in all pension, 401(k) and other employee pension benefit plans, policies and programs (the “Retirement Plans”) maintained by the Company from time to time for the benefit of senior executive officers. During the Employment Period, the Executive, the Executive’s spouse, if any, and his eligible dependents, if any, shall be eligible to participate in and be covered on the same basis as other senior executive officers of the Company under all the welfare benefit plans, policies and/or programs maintained by the Company from time to time including, without limitation, all medical, hospitalization, dental, disability, life, accidental death and dismemberment and travel accident insurance plans, policies and/or programs (the “Welfare Benefit Plans”). The Welfare Plans and the Retirement Plans are sometimes referred to collectively herein as the “Benefit Plans.”

3

5.6. Relocation. The Executive will receive reimbursement of all typical and reasonable moving expenses incurred with respect to the Executive’s relocation from Arizona to Indiana. The Executive will also receive reimbursement of the full cost of any real estate commission paid by the Executive on the sale of the Executive’s Arizona home, provided that at the closing of any such sale, the Executive is then still an employee of the Company.

5.7. Expense Reimbursement. During and in respect of the Employment Period, the Executive shall be entitled to receive reimbursement for expenses incurred by the Executive in performing his duties and responsibilities hereunder in accordance with the Company’s policy for senior executives of the Company.

6. Termination. Upon the occurrence of any termination of the Executive’s employment as chief executive officer, the Executive shall and shall be deemed to immediately resign from any membership on the Board and from any committees thereof (and the Executive shall promptly tender to the Board a written resignation letter effecting the foregoing).

6.1. Termination Due to Death. In the event of the Executive’s death, the Company will terminate the Executive’s employment hereunder and the Executive’s estate or his legal representative, as the case may be, shall be entitled to: (a) any Base Salary earned but unpaid as of the date of death; (b) a pro-rata payment, for the year of termination equal to the Incentive Bonus that would have been earned for such year (determined at the end of the fiscal year in which such termination occurs) 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 Executive is terminated by the Company due to death, and the denominator of which is 365, such payment shall be made at the time when bonus payments are paid to other senior executives in accordance with the Company’s normal payroll procedures; and (c) any other payments and/or benefits which the Executive or the Executive’s legal representative is entitled to receive under any of the Benefit Plans, the SERP or otherwise in accordance with the terms of such plan or arrangement.

6.2. Termination Due to the Executive’s Disability. The Company may terminate the Executive’s employment hereunder due to Disability in accordance with this Section. Notwithstanding the foregoing, if, in the good faith determination of the Board, the Executive 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 Executive for a period of up to 180 days during the Employment Period (provided that such suspension shall not constitute Good Reason under Section 1.5 and provided further that during such suspension, the Executive shall (a) continue to receive his Base Salary in accordance with Section 5.1 and (b) be eligible to receive the benefits he may be entitled to under the Company’s short-term disability plan, if any). If the Board does not re-instate the Executive to employment (under the terms and conditions of this Agreement) by the end of such 180 day period or at any time prior to the end of such period, in the Board’s sole discretion, the Company may (i) terminate the Executive’s employment without Cause (as provided under Section 6.3) if the Executive’s condition does not meet the definition of Disability at the time of termination, or (ii) terminate the Executive’s employment due to Disability (as provided under this Section) if the Executive’s condition does meet the definition of Disability at the time of termination. In such latter event, the Executive or his legal representative, as the case may be, shall be entitled to: (a) any Base Salary earned but unpaid as of the date of the Executive’s termination due to Disability; (b) a pro-rata payment, for the year of termination equal to the Incentive Bonus that would have been earned for such year (determined at the end of the fiscal year in which such termination occurs)

4

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 Executive is terminated by the Company due to Disability, and the denominator of which is 365, such payment shall be made at the time when bonus payments are paid to other senior executives in accordance with the Company’s normal payroll procedures; and (c) any other payments and/or benefits which the Executive or the Executive’s legal representative is entitled to receive under any of the Benefit Plans, the SERP or otherwise in accordance with the terms of such plan or arrangement.

6.3. Termination by the Company Without Cause or by the Executive for Good Reason. The Company may terminate the Executive’s employment hereunder without Cause. The Executive may terminate his employment hereunder with the Company for Good Reason.

6.3.1. In either such event (unless the Executive has incurred a termination under Section 6.1 or 6.2 above), the Executive shall be entitled to, upon execution and effectiveness of a general release: (a) Base Salary earned but unpaid as of the date of the Executive’s termination and (b) any other payments and/or benefits which the Executive is entitled to receive under any of the Benefit Plans, the SERP or otherwise in accordance with the terms of such plan or arrangement. Additionally, the Executive will receive (i) Base Salary continuation for eighteen months paid in equal monthly installments, (ii) continuation of medical and dental benefits in effect as of the date of termination of employment for a period of 18 months and (iii) payment of 150% of the most recent Incentive Bonus actually paid to the Executive, payable in 18 monthly installments (collectively the “Severance Payment”). In order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), under no circumstances may the time or schedule of any payment made, or benefit provided, pursuant to this Section 6.3.1 be accelerated or subject to a further deferral except as otherwise permitted or required pursuant to regulations or other guidance issued pursuant to Section 409A of the Code. In addition, Executive does not have any right to make any election regarding the time or form of any payment due under this Section 6.3.1 or any other provision of this Agreement

6.3.2. Notwithstanding the foregoing, if the Executive’s employment hereunder is terminated by the Company without Cause or the Executive employment hereunder is terminated by the Executive for Good Reason, within three months prior to the signing of an agreement the consummation of which would result in a Corporate Transaction, such transaction is actually consummated and such transaction would have otherwise resulted in a Success Payment, then the Executive will receive such Success Payment for that particular Corporate Transaction, as if the Executive had not been terminated until the day immediately following such transaction.

6.3.3. Notwithstanding the foregoing, the Executive will not be entitled to receive any portion of the Severance Payment if the Executive’s total aggregate Success Payment (including any portion of the Success Payment payable under Section 6.3.2 above and determined without regard to clause (b) of the next sentence), regardless of whether such Success Payment is received during or after the Executive’s Period of Employment, equals or exceeds $12,000,000. Additionally, if the Executive’s total aggregate Success Payment equals or exceeds $12,000,000 and the Executive has already received all or a portion of such Severance Payment, then, either (a) the Executive will repay to the Company the total amount of such Severance Payment received or (b) the Company will deduct the total amount of such Severance Payment received from the Success Payment.

5

6.4. Termination by the Company For Cause or Termination by the Executive Without Good Reason. The Executive shall have the right to terminate his employment hereunder without Good Reason or without any reason at all. The Company may terminate the Executive’s employment hereunder for Cause. In either such event, the Executive shall be entitled to: (a) any Base Salary earned but unpaid through the date of such termination; (b) any other accrued and vested payments and/or benefits which the Executive is entitled to receive under any of the Benefit Plans and, if applicable, the SERP.

6.5. Certain Other Payments.

6.5.1. In the event that (i) the Executive becomes entitled to Severance Payments, Success Payments and/or any other payments or benefits in connection with a Corporate Transaction (collectively, the “Total Payments”) which constitute an “excess parachute payment” as defined in Section 280G(b) of the Code, and (ii) the Executive would be subject to an excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then the Executive may submit all or any portion of the Total Payments to a shareholder vote for purposes of satisfying Section 280G(b)(5) of the Code (a “Shareholder Vote”).

6.5.2. To the extent that the Executive does not so submit any portion of the Total Payments to a Shareholder Vote and, if any such portion of the Total Payments would subject Executive to the Excise Tax, then, such non-submitted portion of the Total Payments and benefits will be reduced to the extent necessary to eliminate the imposition of the Excise Tax.

7. Successors.

7.1. The Executive. This Agreement is personal to the Executive and, without the prior express written consent of the Company, shall not be assignable by the Executive, except that the Executive’s rights to receive any compensation or benefits under this Agreement may be transferred or disposed of pursuant to testamentary disposition, intestate succession or pursuant to a domestic relations order. This Agreement shall inure to the benefit of and be enforceable by the Executive’s heirs, beneficiaries and/or legal representatives.

7.2. The Company. This Agreement shall inure to the benefit of and be binding upon the Company and its respective successors and assigns.

8. Restrictive Covenants.

8.1. Non-Solicitation. During the Period of Employment and for a period of twelve months after any termination of employment hereunder for any reason, the Executive will not, directly or indirectly, on the Executive’s behalf or on behalf of any other person, firm, partnership, corporation or other entity, (a) solicit, induce or attempt to solicit or induce any employee of the Company, its parent or any of its subsidiaries to leave employment with the Company, its parent or any of its subsidiaries or (b) hire any such employee (except for general, non-targeted employment advertising efforts by any such person, firm, partnership, corporation or other entity).

6

8.2. Non-Competition. During the Period of Employment and for a period of twelve months after any termination of employment hereunder for any reason, the Executive will not directly or indirectly, engage in, represent in any way, be connected with, become employed by or have any interest in any business or activity which competes in any material manner in any location at which the material businesses of the Company, its parent or any of its subsidiaries are conducted at the time of such termination.

8.3. Confidentiality. During the Period of Employment or at any time thereafter, the Executive will not, without the prior express written consent of the Company, directly or indirectly divulge, disclose or make available or accessible any confidential matters or proprietary information of the Company, its parent and/or its subsidiaries known to the Executive which are not otherwise in the public domain to any person, firm, partnership, corporation, trust or any other entity or third party (other than when the Executive is required to do so by a lawful order of (a) a court of competent jurisdiction, (b) any governmental authority or agency, or (c) any recognized subpoena power).

8.4. Injunctive Relief. The Executive acknowledges and agrees that the Company will have no adequate remedy at law, and would be irreparably harmed, if the Executive breaches or threatens to breach any of the provisions of this Section 8 of this Agreement. The Executive agrees that the Company shall be entitled to equitable and/or injunctive relief to prevent any breach or threatened breach of this Section 8, and to specific performance of each of the terms of such Section in addition to any other legal or equitable remedies that the Company may have. The Executive further agrees that he shall not, in any equity proceeding relating to the enforcement of the terms of this Section 8, raise the defense that the Company has an adequate remedy at law.

8.5. Special Severability. The terms and provisions of this Section 8 are intended to be separate and divisible provisions and if, for any reason, any one or more of them is held to be invalid or unenforceable, neither the validity nor the enforceability of any other provision of this Agreement shall thereby be affected. It is the intention of the parties to this Agreement that the potential restrictions on the Executive’s future employment imposed by this Section 8 be reasonable in both duration and geographic scope and in all other respects. If for any reason any court of competent jurisdiction shall find any provisions of this Section 8 unreasonable in duration or geographic scope or otherwise, the Executive and the Company agree that the restrictions and prohibitions contained herein shall be effective to the fullest extent allowed under applicable law in such jurisdiction.

9. Miscellaneous.

9.1. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, applied without reference to principles of conflict of laws.

9.2. Amendments. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

7

9.3. Legal Fees. The Executive shall be paid or reimbursed for all reasonable attorney fees incurred by the Executive in connection with the review, preparation and negotiation of this Agreement and the binding Offer Letter between the Executive and Citibank, dated as of January 23, 2006 (the “Offer Letter”).

9.4. Indemnification. The Company agrees that if the Executive is made a party or is threatened to be made a party to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was a director or officer of the Company and/or any affiliate, whether or not the basis of such Proceeding is alleged action in an official capacity as a director, officer, employee or agent while serving as a director, officer, employee or agent, he shall be indemnified and held harmless by the Company (unless the Executive’s actions or omissions constitute gross negligence or willful misconduct) to the fullest extent authorized by Delaware law, as the same exists or may hereafter be amended, against all costs and expenses incurred or suffered by the Executive in connection therewith, and such indemnification shall continue as to the Executive even if the Executive has ceased to be an officer, director or agent, or is no longer employed by the Company and shall inure to the benefit of his heirs, executors and administrators.

9.5. Notices. All notices and other communications hereunder shall be in writing and shall be given by hand-delivery to the other parties or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

To the Company:	Chairman of the Board
	Remy International Inc.
	2902 Enterprise Drive
	Anderson, Indiana 46013
With a copy to Company’s counsel at:	Stephen W. Skonieczny, Esq.
	Dechert LLP
	30 Rockefeller Plaza
	New York, New York 10112
To the Executive:	John H. Weber
	5112 Rockridge Road
	Phoenix, AZ 85018

or to such other address as any party shall have furnished to the others in writing in accordance herewith. Notices and communications shall be effective when actually received by the addressee.

8

9.6. Withholding. The Company may withhold from any amounts payable under this Agreement such federal, state or local income taxes to the extent the same required to be withheld pursuant to any applicable law or regulation.

9.7. Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

9.8. Captions. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

9.9. Counterparts. This Agreement may be executed in one or more counterparts each of which shall be deemed an original instrument, but all of which together shall constitute but one and the same Agreement.

9.10. Entire Agreement. This Agreement contains the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect thereto. Additionally, this Agreement supersedes the Offer Letter.

9.11. Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of the Executive’s employment under this Agreement for any reason to the extent necessary to the intended provision of such rights and the intended performance of such obligations.

IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and the Company has caused this Agreement to be executed in its name on its behalf, all as of the day and year first above written.

Remy International Inc.

/s/ Harold K. Sperlich

By: Harold K. Sperlich

/s/ John H. Weber

John H. Weber

9

EX-10.2

Exhibit 10.2

  Remy International, Inc. 2902 Enterprise Drive • Anderson, Indiana 46013 USA   765-778-6499 Fax 765-778-6404

May 22, 2006

Gerald Mills

15073 Sycamore Hills Place

Haymarket, Virginia 20169

Dear Jerry:

On behalf of Remy International, Inc. it is my pleasure to extend this offer of employment. I believe you will be a valuable asset and am pleased to offer you the position of Senior Vice President, Chief Human Resources Officer, reporting to me. I look forward to welcoming you as a Remy employee on Thursday, June 1, 2006.

Our offer includes the following:

• SALARY: Annual salary of $300,000 that will be paid on a semi-monthly basis.

• BENEFITS: You are eligible to be covered by our excellent benefit programs including personal umbrella liability insurance, executive life, executive disability, health, dental, prescription drug, vision, 401K, pension plan, paid holidays, and vacation days. You and your eligible dependents will be covered under the Remy health and dental program effective June 1, 2006. Information regarding your benefits will be discussed during your benefit orientation. The Benefits Department will contact you after your start date to schedule a time to meet with you regarding your benefit eligibility and enrollment. You must be aware that a significant part of your role going forward is to restructure our benefit plans.

• BONUS PROGRAM: You are eligible to participate in our Executive Bonus Program with a target bonus of 60% of base annual salary. The first year bonus will be paid based on service for nine months from April 1 through December 31, 2006.

• SIGN-ON BONUS: You will receive a net sign-on bonus of $25,000, which is payable on your first paycheck. It will be grossed up to cover federal, state, and local taxes. Should you decide to leave Remy within your first year of employment, you will be required to repay a pro-rated share of this sign-on bonus.

• REPAYMENT OF NVR INC.: You have indicated that if you join us prior to September 6, 2007, you are required to repay NVR Inc., your former employer, $65,000. You will diligently work with your current employer to be released from this obligation. However, if this cannot be done, Remy International will make the payment of $65,000 directly to NVR, Inc on, or before, May 31, 2006. Should you decide to leave Remy within your first year of employment, you will be required to repay this amount.

• RELOCATION: You will work out of our subsidiary’s office in Winchester, Virginia, but be required to spend significant time in Anderson. The company will reimburse you for miscellaneous business related expenses at a rate of $1,000 per month.

• VACATION: You will be eligible for 3 weeks vacation, 8 paid holidays and 4 floating holidays each year, including 2006.

Gerald Mills

Page 2

• SEVERANCE: After completion of six (6) months of employment and upon your resignation for “Good Reason” (as defined in Appendix A) or termination by Remy without “Cause” (as defined in Appendix A) you will receive an amount equal to the sum of twelve (12) months base salary and earned bonus subject to required withholding. This amount is payable over a twelve (12) month period in equal semi-monthly installments.

• SUCCESS PAYMENT: Upon the occurrence of a Corporate Transaction (as defined in Appendix A), you will be entitled, if you are employed by Remy on the date of such occurrence, to receive from Remy, as additional compensation, a transaction success payment (the “Success Payment”), as follows;

(a) An amount equal to 25% of the Net Proceeds in excess of $4,000,000 up to $8,000,000; and

(b) Up to an amount equal to 1% of total Net Proceeds (as defined in Appendix A) above $9,000,000.

Please note that our offer is contingent upon the following:

1. Successful completion and passing of a drug screen. The drug screen should be completed prior to your first day. The enclosed yellow sheet details the process and how to find a location. Please contact Kelly Witter 765-778-5948 with any questions.

2. Successful verification of your U.S. citizenship and/or approved employment eligibility in the United States (See I-9 form). Your I9 documentation will be verified on your first day.

3. Successful completion of a reference, background, and criminal check.

We would like to welcome you to Remy International. We look forward to you joining our team and sincerely hope that you will accept this offer of employment. Please indicate your acceptance to our offer by signing below and returning the offer within 5 business days. You will need to come to our Corporate Headquarters Building at 8:15 AM on your first day to complete your HR paperwork, which is attached to the enclosed pink checklist. If you have any questions, do not hesitate to contact us.

Sincerely,	Acceptance:
REMY INTERNATIONAL, INC.
/s/ John Weber
John H. Weber	/s/ Gerald Mills
President and Chief Executive Officer
	Date:
	May 22, 2006

Enclosures

Appendix A

“Good Reason” means and will be deemed to exist if, without your consent, (a) you suffer a material diminution in your duties, responsibilities or effective authority or any adverse changes in your titles or positions, (b) You suffer a reduction of your “Base Salary” or target bonus opportunity below that which is set forth in this Offer Letter; or (c) Remy fails to pay you any earned compensation or to provide your vested benefits when due and payable and which is not cured within a reasonable period of time after receipt of notice.

“Cause” means (a) you engage in gross misconduct or gross negligence in the performance of your duties for Remy or any of its subsidiaries, (b) you embezzle assets of Remy or any of its subsidiaries, (c) you are convicted (including a plea of guilty or nolo contendere) of a felony involving moral turpitude, or (d) your breach of any restrictive covenant set forth in the Offer Letter.

“Corporate Transaction” means the direct or indirect sale or other disposition for value (to an entity or person unrelated or unaffiliated with Remy or Citicorp) of the equity interests in Remy or the assets of Remy.

“Net Proceeds” means the fair value of the aggregate and cumulative consideration received, less the aggregate of any transaction costs of any kind borne directly or indirectly by Remy or the Remy equity interest holders, and actually paid or distributed to the Remy equity interest holders in connection with an Corporate Transaction.

EX-99.1

Exhibit 99.1

News: For Immediate Release	May 26, 2006
Contact: Leah Campbell, Remy International, Inc.	765-778-6848

Remy International names Gerald T. Mills Senior VP and Chief Human Resources Officer

Anderson, Ind., May 25, 2006 — Remy International, Inc. announces the appointment of Gerald T. (Jerry) Mills as Senior Vice President and Chief Human Resources Officer reporting directly to President and CEO John H. Weber.

Most recently Mills was Vice President of Human Resources at NVR Inc. a $5B homebuilding company based in Reston, Virginia. Previously, he served four years as the Senior Vice President of Human Resources for Eagle Picher Industries located in Phoenix, Arizona. As Senior VP, he was responsible for tying human resource strategy to business strategy and for the successful transformation of the Human Resource function to a highly strategic and business oriented role.

Prior to joining Eagle Picher, Mills was with Owens Corning for 28 years holding positions of increasing responsibility in plant, division, and corporate leadership roles. He served as the Corporate Director of Compensation and Benefits and later as Vice President Human Resources for the Composites Systems Business where he directed the global HR team for this billion dollar business unit.

Mills holds a bachelor’s degree in Political Science and a master’s degree in Human Resources from Miami University in Oxford, Ohio. Additionally, he is a Member of the Society of Human Resource Management.

“Jerry is a highly accomplished leader with a global perspective and a strong focus on the bottom line. His ability to make tough changes that enhance competitiveness, yet effectively balance the needs of employees, clearly makes him an ideal leader for Remy,” said Weber.

Remy International, Inc., headquartered in Anderson, Indiana, is a leading manufacturer, remanufacturer and distributor of Delco Remy brand heavy-duty systems and Remy brand starters and alternators, diesel engines, locomotive products and hybrid power technology. The Company also provides worldwide components core-exchange services for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications.

Remy was formed in 1994 as a partial divestiture by General Motors Corporation of the former Delco Remy Division, which traces its roots to Remy Electric, founded in 1896. Additional information is available at the Company’s website: http://www.remyinc.com

# # #