Document:

<PAGE>

                                                                   EXHIBIT 10.36

                                  XIRCOM, INC.
                                2000 STOCK PLAN

                         As Adopted on January 21, 2000

     1.   Purposes of the Plan.  The purposes of this 2000 Stock Plan are:
          --------------------

          .  to attract and retain the best available personnel for positions of
             substantial responsibility,

          .  to provide additional incentive to Employees and Consultants, and

          .  to promote the success of the Company's business.

          Options granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator at the time of
grant.  Stock Purchase Rights may also be granted under the Plan.

     2.   Definitions.  As used herein, the following definitions shall apply:
          -----------

          (a)  "Administrator" means the Board or any of its Committees as shall
                -------------
be administering the Plan, in accordance with Section 4 of the Plan.

          (b)  "Applicable Laws" means the requirements relating to the
                ---------------
administration of stock option plans under U. S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options or Stock Purchase Rights are,
or will be, granted under the Plan.

          (c)  "Board" means the Board of Directors of the Company.
                -----

          (d)  "Code" means the Internal Revenue Code of 1986, as amended.
                ----

          (e)  "Committee" means a committee of Directors appointed by the Board
                ---------
in accordance with Section 4 of the Plan.

          (f)  "Common Stock" means the common stock of the Company.
                ------------

          (g)  "Company" means Xircom, Inc., a California corporation.
                -------

          (h)  "Consultant" means any person, including an advisor, engaged by
                ----------
the Company or a Parent or Subsidiary to render services to such entity.

          (i)  "Director" means a member of the Board.
                --------
<PAGE>

          (j)  "Disability" means total and permanent disability as defined in
                ----------
Section 22(e)(3) of the Code.

          (k)  "Employee" means any Officer employed by the Company or any
                --------
Parent or Subsidiary of the Company. A Service Provider shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company or (ii)
transfers between locations of the Company or between the Company, its Parent,
any Subsidiary, or any successor. For purposes of Incentive Stock Options, no
such leave may exceed ninety days, unless reemployment upon expiration of such
leave is guaranteed by statute or contract. If reemployment upon expiration of a
leave of absence approved by the Company is not so guaranteed, on the 181st day
of such leave any Incentive Stock Option held by the Optionee shall cease to be
treated as an Incentive Stock Option and shall be treated for tax purposes as a
Nonstatutory Stock Option.

          (l)  "Exchange Act" means the Securities Exchange Act of 1934, as
                ------------
amended.

          (m)  "Fair Market Value" means, as of any date, the value of Common
                -----------------
Stock determined as follows:

               (i)   If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system on
the date the option is granted, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable;

               (ii)  If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the day of determination, as reported in The Wall
Street Journal or such other source as the Administrator deems reliable; or

               (iii) In the absence of an established market for the Common
Stock, the Fair Market Value shall be determined in good faith by the
Administrator.

          (n)  "Incentive Stock Option" means an Option intended to qualify as
                ----------------------
an incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

          (o)  "Nonstatutory Stock Option" means an Option not intended to
                -------------------------
qualify as an Incentive Stock Option.

          (p)  "Notice of Grant" means a written or electronic notice evidencing
                ---------------
certain terms and conditions of an individual Option or Stock Purchase Right
grant. The Notice of Grant is part of the Option Agreement.

          (q)  "Officer" means a person who is an officer of the Company within
                -------
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

                                      -2-
<PAGE>

          (r)  "Option" means a stock option granted pursuant to the Plan.
                ------

          (s)  "Option Agreement" means an agreement between the Company and
                ----------------
an Optionee evidencing the terms and conditions of an individual Option grant.
The Option Agreement is subject to the terms and conditions of the Plan.

          (t)  "Optioned Stock" means the Common Stock subject to an Option or
                --------------
Stock Purchase Right.

          (u)  "Optionee" means the holder of an outstanding Option or Stock
                --------
Purchase Right granted under the Plan.

          (v)  "Parent" means a "parent corporation," whether now or hereafter
                ------
existing, as defined in Section 424(e) of the Code.

          (w)  "Plan" means this 2000 Stock Plan.
                ----

          (x)  "Restricted Stock" means shares of Common Stock acquired pursuant
                ----------------
to a grant of Stock Purchase Rights under Section 11 of the Plan.

          (y)  "Restricted Stock Purchase Agreement" means a written agreement
                -----------------------------------
between the Company and the Optionee evidencing the terms and restrictions
applying to stock purchased under a Stock Purchase Right. The Restricted Stock
Purchase Agreement is subject to the terms and conditions of the Plan and the
Notice of Grant.

          (z)  "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any
                ----------
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.

          (aa) "Section 16(b) " means Section 16(b) of the Exchange Act.
                -------------

          (bb) "Service Provider" means an Employee, Director or Consultant.
                ----------------

          (cc) "Share" means a share of the Common Stock, as adjusted in
                -----
accordance with Section 13 of the Plan.

          (dd) "Stock Purchase Right" means the right to purchase Common Stock
                --------------------
pursuant to Section 11 of the Plan, as evidenced by a Notice of Grant.

          (ee) "Subsidiary" means a "subsidiary corporation", whether now or
                ----------
hereafter existing, as defined in Section 424(f) of the Code.

      3.  Stock Subject to the Plan.  Subject to the provisions of Section 13 of
          -------------------------
the Plan, the maximum aggregate number of Shares that may be optioned and sold
under the Plan is (a) 1,200,000 Shares, plus (b) any Shares which have been
reserved but unissued under the Company's 1992 Stock Option Plan (the "1992
Plan") as of the date of stockholder approval of this Plan, and (c) any Shares
returned to the 1992 Plan after the date of stockholder approval of this Plan as
a result of the

                                      -3-
<PAGE>

termination of options under the 1992 Plan. The Shares may be authorized, but
unissued, or reacquired Common Stock.

          If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, the unpurchased Shares which were subject
thereto shall become available for future grant or sale under the Plan (unless
the Plan has terminated); provided, however, that Shares that have actually been
                          --------
issued under the Plan, whether upon exercise of an Option or Right, shall not be
returned to the Plan and shall not become available for future distribution
under the Plan, except that if Shares of Restricted Stock are repurchased by the
Company at their original purchase price, such Shares shall become available for
future grant under the Plan.

     4.   Administration of the Plan.
          --------------------------

          (a)  Procedure.
               ---------

               (i)   Multiple Administrative Bodies.  Different Committees with
                     ------------------------------
respect to different groups of Service Providers may administer the Plan.

               (ii)  Section 162(m).  To the extent that the Administrator
                     --------------
determines it to be desirable to qualify Options granted hereunder as
"performance-based compensation" within the meaning of Section 162(m) of the
Code, the Plan shall be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code.

               (iii) Rule 16b-3.  To the extent desirable to qualify
                     ----------
transactions hereunder as exempt under Rule 16b-3, the transactions contemplated
hereunder shall be structured to satisfy the requirements for exemption under
Rule 16b-3.

               (iv)  Other Administration.  Other than as provided above, the
                     --------------------
Plan shall be administered by (A) the Board or (B) a Committee, which committee
shall be constituted to satisfy Applicable Laws.

          (b)  Powers of the Administrator.  Subject to the provisions of the
               ---------------------------
Plan, and in the case of a Committee, subject to the specific duties delegated
by the Board to such Committee, the Administrator shall have the authority, in
its discretion:

               (i)   to determine the Fair Market Value;

               (ii)  to select the Service Providers to whom Options and Stock
Purchase Rights may be granted hereunder;

               (iii) to determine the number of shares of Common Stock to be
covered by each Option and Stock Purchase Right granted hereunder;

               (iv)  to approve forms of agreement for use under the Plan;

               (v)   to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any Option or Stock Purchase Right granted
hereunder. Such terms and conditions

                                      -4-
<PAGE>

include, but are not limited to, the exercise price, the time or times when
Options or Stock Purchase Rights may be exercised (which may be based on
performance criteria), any vesting acceleration or waiver of forfeiture
restrictions, and any restriction or limitation regarding any Option or Stock
Purchase Right or the shares of Common Stock relating thereto, based in each
case on such factors as the Administrator, in its sole discretion, shall
determine;

               (vi)   to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan;

               (vii)  to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

               (viii) to modify or amend each Option or Stock Purchase Right
(subject to Section 15(c) of the Plan), including the discretionary authority to
extend the post-termination exercisability period of Options longer than is
otherwise provided for in the Plan;

               (ix)   to allow Optionees to satisfy withholding tax obligations
by electing to have the Company withhold from the Shares to be issued upon
exercise of an Option or Stock Purchase Right that number of Shares having a
Fair Market Value equal to the amount required to be withheld. The Fair Market
Value of the Shares to be withheld shall be determined on the date that the
amount of tax to be withheld is to be determined. All elections by an Optionee
to have Shares withheld for this purpose shall be made in such form and under
such conditions as the Administrator may deem necessary or advisable;

               (x)    to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option or Stock
Purchase Right previously granted by the Administrator;

               (xi)   to make all other determinations deemed necessary or
advisable for administering the Plan.

          (c)  Effect of Administrator's Decision.  The Administrator's
               ----------------------------------
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options or Stock Purchase Rights.

     5.   Eligibility.  Nonstatutory Stock Options and Stock Purchase Rights may
          -----------
be granted to Service Providers. Incentive Stock Options may be granted only to
Employees.

     6.   Limitations.
          -----------

          (a)  Each Option shall be designated in the Option Agreement as either
an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 6(a), Incentive Stock Options

                                      -5-
<PAGE>

shall be taken into account in the order in which they were granted. The Fair
Market Value of the Shares shall be determined as of the time the Option with
respect to such Shares is granted.

          (b)  Neither the Plan nor any Option or Stock Purchase Right shall
confer upon an Optionee any right with respect to continuing the Optionee's
relationship as a Service Provider with the Company, nor shall they interfere in
any way with the Optionee's right or the Company's right to terminate such
relationship at any time, with or without cause.

          (c)  The following limitations shall apply to grants of Options:

               (i)   No Service Provider shall be granted, in any fiscal year of
the Company, Options to purchase more than 500,000 Shares.

               (ii)  In connection with his or her initial service, a Service
Provider may be granted Options to purchase up to an additional 500,000 Shares,
which shall not count against the limit set forth in subsection (i) above.

               (iii) The foregoing limitations shall be adjusted proportionately
in connection with any change in the Company's capitalization as described in
Section 13.

               (iv)  If an Option is cancelled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 13), the cancelled Option will be counted against the
limits set forth in subsections (i) and (ii) above. For this purpose, if the
exercise price of an Option is reduced, the transaction will be treated as a
cancellation of the Option and the grant of a new Option.

     7.   Term of Plan. Subject to Section 19 of the Plan, the Plan shall become
          ------------
effective upon its adoption by the Board.  It shall continue in effect for a
term of ten (10) years unless terminated earlier under Section 15 of the Plan.

     8.   Term of Option.  The term of each Option shall be stated in the Option
          --------------
Agreement.  In the case of an Incentive Stock Option, the term shall be ten (10)
years from the date of grant or such shorter term as may be provided in the
Option Agreement.  Moreover, in the case of an Incentive Stock Option granted to
an Optionee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or any Parent or Subsidiary, the term of the
Incentive Stock Option shall be five (5) years from the date of grant or such
shorter term as may be provided in the Option Agreement.

     9.   Option Exercise Price and Consideration.
          ---------------------------------------

          (a)  Exercise Price.  The per share exercise price for the Shares to
               --------------
be issued pursuant to exercise of an Option shall be determined by the
Administrator, subject to the following:

               (i)   In the case of an Incentive Stock Option

                                      -6-
<PAGE>

                     (A)  granted to an Employee who, at the time the Incentive
Stock Option is granted, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant.

                     (B)  granted to any Employee other than an Employee
described in paragraph (A) immediately above, the per Share exercise price shall
be no less than 100% of the Fair Market Value per Share on the date of grant.

               (ii)  In the case of a Nonstatutory Stock Option, the per Share
exercise price shall be determined by the Administrator. In the case of a
Nonstatutory Stock Option intended to qualify as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

               (iii) Notwithstanding the foregoing, Options may be granted with
a per Share exercise price of less than 100% of the Fair Market Value per Share
on the date of grant pursuant to a merger or other corporate transaction.

          (b)  Waiting Period and Exercise Dates.  At the time an Option is
               ---------------------------------
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions that must be satisfied before the
Option may be exercised.

          (c)  Form of Consideration.  The Administrator shall determine the
               ---------------------
acceptable form of consideration for exercising an Option, including the method
of payment. In the case of an Incentive Stock Option, the Administrator shall
determine the acceptable form of consideration at the time of grant. Such
consideration may consist entirely of:

               (i)   cash;

               (ii)  check;

               (iii) promissory note;

               (iv)  other Shares which (A) in the case of Shares acquired upon
exercise of an option, have been owned by the Optionee for more than six months
on the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised;

               (v)   consideration received by the Company under a cashless
exercise program implemented by the Company in connection with the Plan;

               (vi)  a reduction in the amount of any Company liability to the
Optionee, including any liability attributable to the Optionee's participation
in any Company-sponsored deferred compensation program or arrangement;

               (vii) any combination of the foregoing methods of payment; or

                                      -7-
<PAGE>

               (viii) such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws.

     10.  Exercise of Option.
          ------------------

          (a)  Procedure for Exercise; Rights as a Shareholder.  Any Option
               -----------------------------------------------
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement. Unless the Administrator provides otherwise,
vesting of Options granted hereunder shall be tolled during any unpaid leave of
absence. An Option may not be exercised for a fraction of a Share.

               An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 13 of the Plan.

               Exercising an Option in any manner shall decrease the number of
Shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of Shares as to which the Option is exercised.

          (b)  Termination of Relationship as a Service Provider.  If an
               -------------------------------------------------
Optionee ceases to be a Service Provider, other than upon the Optionee's death
or Disability, the Optionee may exercise his or her Option within such period of
time as is specified in the Option Agreement to the extent that the Option is
vested on the date of termination (but in no event later than the expiration of
the term of such Option as set forth in the Option Agreement). In the absence of
a specified time in the Option Agreement, the Option shall remain exercisable
for three (3) months following the Optionee's termination. If, on the date of
termination, the Optionee is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Option shall revert to the Plan.
If, after termination, the Optionee does not exercise his or her Option within
the time specified by the Administrator, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

          (c)  Disability of Optionee.  If an Optionee ceases to be a Service
               ----------------------
Provider as a result of the Optionee's Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option Agreement
to the extent the Option is vested on the date of termination (but in no event
later than the expiration of the term of such Option as set forth in the Option
Agreement). In the absence of a specified time in the Option Agreement, the
Option shall

                                      -8-
<PAGE>

remain exercisable for twelve (12) months following the Optionee's termination.
If, on the date of termination, the Optionee is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

          (d)  Death of Optionee.  If an Optionee dies (i) while a Service
               -----------------
Provider or (ii) after termination as a Service Provider but while the Option
remains outstanding and exercisable, the Option may be exercised within such
period of time as is specified in the Option Agreement (but in no event later
than the expiration of the term of such Option as set forth in the Notice of
Grant), by the Optionee's estate or by a person who acquires the right to
exercise the Option by bequest or inheritance, but only to the extent that the
Option is vested on the date of death. In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for twelve (12) months
following the Optionee's death. If, at the time of death, the Optionee is not
vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall immediately revert to the Plan. The Option may be
exercised by the executor or administrator of the Optionee's estate or, if none,
by the person(s) entitled to exercise the Option under the Optionee's will or
the laws of descent or distribution. If the Option is not so exercised within
the time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

          (e)  Buyout Provisions.  The Administrator may at any time offer to
               -----------------
buy out for a payment in cash or Shares an Option previously granted based on
such terms and conditions as the Administrator shall establish and communicate
to the Optionee at the time that such offer is made.

     11.  Stock Purchase Rights.
          ---------------------

          (a)  Rights to Purchase.  Stock Purchase Rights may be issued either
               ------------------
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan. After the Administrator determines
that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing or electronically, by means of a Notice of Grant, of the
terms, conditions and restrictions related to the offer, including the number of
Shares that the offeree shall be entitled to purchase, the price to be paid, and
the time within which the offeree must accept such offer. The offer shall be
accepted by execution of a Restricted Stock Purchase Agreement in the form
determined by the Administrator.

          (b)  Repurchase Option.  Unless the Administrator determines
               -----------------
otherwise, the Restricted Stock Purchase Agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of
the purchaser's service with the Company for any reason (including death or
Disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock Purchase Agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at a rate determined by the
Administrator.

          (c)  Other Provisions.  The Restricted Stock Purchase Agreement shall
               ----------------
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

                                      -9-
<PAGE>

          (d)  Rights as a Shareholder.  Once the Stock Purchase Right is
               -----------------------
exercised, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Stock Purchase Right is exercised, except as provided in Section 13
of the Plan.

     12.  Non-Transferability of Options and Stock Purchase Rights.  Unless
          --------------------------------------------------------
determined otherwise by the Administrator, an Option or Stock Purchase Right may
not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Optionee, only by the Optionee.  If the
Administrator makes an Option or Stock Purchase Right transferable, such Option
or Stock Purchase Right shall contain such additional terms and conditions as
the Administrator deems appropriate.

     13.  Adjustments Upon Changes in Capitalization, Dissolution, Merger or
          ------------------------------------------------------------------
Asset Sale.
----------

          (a)  Changes in Capitalization.  Subject to any required action by the
               -------------------------
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option and Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option or Stock
Purchase Right.

          (b)  Dissolution or Liquidation.  In the event of the proposed
               --------------------------
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option until ten (10) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as
to which the Option would not otherwise be exercisable. In addition, the
Administrator may provide that any Company repurchase option applicable to any
Shares purchased upon exercise of an Option or Stock Purchase Right shall lapse
as to all such Shares, provided the proposed dissolution or liquidation takes
place at the time and in the manner contemplated. To the extent it has not been
previously exercised, an Option or Stock Purchase Right will terminate
immediately prior to the consummation of such proposed action.

                                      -10-
<PAGE>

          (c)  Merger or Asset Sale.  In the event of a merger of the Company
               --------------------
with or into another corporation, or the sale of substantially all of the assets
of the Company, each outstanding Option and Stock Purchase Right shall be
assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event
that the successor corporation refuses to assume or substitute for the Option or
Stock Purchase Right, the Optionee shall fully vest in and have the right to
exercise the Option or Stock Purchase Right as to all of the Optioned Stock,
including Shares as to which it would not otherwise be vested or exercisable. If
an Option or Stock Purchase Right becomes fully vested and exercisable in lieu
of assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Optionee in writing or electronically that the
Option or Stock Purchase Right shall be fully vested and exercisable for a
period of fifteen (15) days from the date of such notice, and the Option or
Stock Purchase Right shall terminate upon the expiration of such period. For the
purposes of this paragraph, the Option or Stock Purchase Right shall be
considered assumed if, following the merger or sale of assets, the option or
right confers the right to purchase or receive, for each Share of Optioned Stock
subject to the Option or Stock Purchase Right immediately prior to the merger or
sale of assets, the consideration (whether stock, cash, or other securities or
property) received in the merger or sale of assets by holders of Common Stock
for each Share held on the effective date of the transaction (and if holders
were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares); provided, however, that if
such consideration received in the merger or sale of assets is not solely common
stock of the successor corporation or its Parent, the Administrator may, with
the consent of the successor corporation, provide for the consideration to be
received upon the exercise of the Option or Stock Purchase Right, for each Share
of Optioned Stock subject to the Option or Stock Purchase Right, to be solely
common stock of the successor corporation or its Parent equal in fair market
value to the per share consideration received by holders of Common Stock in the
merger or sale of assets.

     14.  Date of Grant.  The date of grant of an Option or Stock Purchase Right
          -------------
shall be, for all purposes, the date on which the Administrator makes the
determination granting such Option or Stock Purchase Right, or such other later
date as is determined by the Administrator.  Notice of the determination shall
be provided to each Optionee within a reasonable time after the date of such
grant.

     15.  Amendment and Termination of the Plan.
          -------------------------------------

          (a)  Amendment and Termination.  The Board may at any time amend,
               -------------------------
alter, suspend or terminate the Plan.

          (b)  Shareholder Approval.  The Company shall obtain shareholder
               --------------------
approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

          (c)  Effect of Amendment or Termination.  No amendment, alteration,
               ----------------------------------
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to Options granted under the
Plan prior to the date of such termination.

                                      -11-
<PAGE>

          (d)  Stock Option Repricing.  Notwithstanding anything to the
               ----------------------
contrary, the Company shall not reduce the exercise price of any outstanding
Options without previously obtaining shareholder approval. This Section 15(d)
may not be amended or deleted from the Plan without prior shareholder approval.

     16.  Conditions Upon Issuance of Shares.
          ----------------------------------

          (a)  Legal Compliance.  Shares shall not be issued pursuant to the
               ----------------
exercise of an Option or Stock Purchase Right unless the exercise of such Option
or Stock Purchase Right and the issuance and delivery of such Shares shall
comply with Applicable Laws and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

          (b)  Investment Representations.  As a condition to the exercise of an
               --------------------------
Option or Stock Purchase Right, the Company may require the person exercising
such Option or Stock Purchase Right to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required.

     17.  Inability to Obtain Authority.  The inability of the Company to obtain
          -----------------------------
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

     18.  Reservation of Shares.  The Company, during the term of this Plan,
          ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     19.  Shareholder Approval.  The Plan shall be subject to approval by the
          --------------------
shareholders of the Company within twelve (12) months after the date the Plan is
adopted.  Such shareholder approval shall be obtained in the manner and to the
degree required under Applicable Laws.

                                      -12-<PAGE>

                                                                   EXHIBIT 10.36

                      FIFTH AMENDMENT TO CREDIT AGREEMENT
                      -----------------------------------

     THIS FIFTH AMENDMENT TO CREDIT AGREEMENT (the "Amendment"), dated as of
                                                    ---------
September 17, 1999, is entered into between MELLON BANK, N.A. (the "Bank"), with
                                                                    ----
a place of business at 400 South Hope Street, 5th Floor, Los Angeles, California
90071, and KEYSTONE AUTOMOTIVE INDUSTRIES, INC., a California corporation
("Borrower"), with its chief executive office located at 700 East Bonita Avenue,
----------
Pomona, California 91767.

                                    RECITALS
                                    --------

     A.   Borrower and the Bank have previously entered into that certain Credit
Agreement dated as of March 25, 1997, as amended by that certain First Amendment
to Credit Agreement dated as of August 25, 1997, that certain Second Amendment
to Credit Agreement dated as of March 17, 1998, that certain Third Amendment to
Credit Agreement dated as of June 29, 1998 and that certain Fourth Amendment to
Credit Agreement dated as of September 18, 1998 (collectively, the "Credit
                                                                    ------
Agreement"), pursuant to which the Bank has made certain loans and other
---------
financial accommodations available to Borrower. Terms used herein without
definition shall have the meanings ascribed to them in the Credit Agreement.

     B.   Borrower and the Bank wish to further amend the Credit Agreement under
the terms and conditions set forth in this Amendment. Borrower is entering into
this Amendment with the understanding and agreement that, except as specifically
provided herein, none of the Bank's rights or remedies as set forth in the
Credit Agreement is being waived or modified by the terms of this Amendment.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

     1.   Amendments to Article I - Definitions.
          -------------------------------------

          (a) The first sentence of the definition of "Applicable Margin"
     contained in Section 1.1 of the Credit Agreement is hereby amended in its
     entirety as follows:

               "'Applicable Margin':  As of any date of determination, with
                 -----------------
          respect to Prime Rate Option Revolving Loans or Libor Rate Option
          Revolving Loans, as applicable, the percentage set forth opposite the
          Consolidated Ratio of Total Indebtedness to EBITDA in effect as of
          such date set forth in the table below:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Consolidated Ratio of Total                 Applicable Margin            Applicable Margin
Indebtedness to EBITDA                      Libor Rate Option            Prime Rate Option
-------------------------------------------------------------------------------------------
<S>                                         <C>                          <C>
Less than or equal to 1.00:1.00                    .75%                           0%
-------------------------------------------------------------------------------------------
Greater than 1.00:1.00 and less than or           .875%                           0%
equal to 1.50:1.00
-------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

          provided, however, that, notwithstanding the foregoing, for purposes
          --------  -------
          of determining the Applicable Margin, the Consolidated Ratio of Total
          Indebtedness to EBITDA shall be deemed to be greater than 1.00 to 1.00
          at all times when an Event of Default or Potential Event of Default
          has occurred and is continuing based on the Borrower's failure to
          deliver any financial statement or compliance certificate as and when
          required pursuant to Sections 6.1(a)(i) and (iv) or 6.1(a)(ii) and
          (iv), as applicable."

          (b)  Subsection (a) of the definition of "Indebtedness" contained in
     Section 1.1 of the Credit Agreement is hereby amended in its entirety as
     follows:

          "(a) all indebtedness of such Person for borrowed money, including,
          without limitation, all current and long term interest bearing
          liabilities;"

          (c)  The definition of "Leverage Ratio" contained in Section 1.1 of
     the Credit Agreement is hereby deleted in its entirety.

          (d)  The definition of "Maturity Date" contained in Section 1.1 of the
     Credit Agreement is hereby amended in its entirety as follows:

               "'Maturity Date':  September 15, 2000."
                 -------------

          (e)  Clause (vi) of the definition of "Permitted Acquisitions"
     contained in Section 1.1 of the Credit Agreement is hereby amended in its
     entirety as follows:

               "(vi) the total cash consideration paid for any Permitted
          Acquisition (in a single transaction or in a series of related
          transactions) shall not exceed $7,500,000;"

          (f)  The definition of "Revolving Commitment" contained in Section 1.1
     of the Credit Agreement is hereby amended in its entirety as follows:

               "'Revolving Commitment': The amount of $30,000,000, as such
                 --------------------
          amount may be reduced pursuant to Section 2.1(c)."

          (g)  The following definition for "Consolidated Net Worth" is hereby
     added to Section 1.1 of the Credit Agreement in the appropriate
     alphabetical order:

               "'Consolidated Net Worth': At any date of determination, the sum
                 ----------------------
          of the capital stock, additional paid-in capital, and retained
          earnings (or minus accumulated deficit) of the Borrower and its
          Subsidiaries on a consolidated basis, determined in conformity with
          GAAP."

          (h)  The following definition for "Stock Repurchases" is hereby added
     to Section 1.1 of the Credit Agreement in the appropriate alphabetical
     order:

                                       2
<PAGE>

              "'Stock Repurchases': Any repurchase of any of the capital stock
                -----------------
          of Borrower or any of its Subsidiaries by Borrower or any of its
          Subsidiaries."

     2.   Amendments to Article VI - Covenants.
          ------------------------------------

          (a) Section 6.2(a) of the Credit Agreement, entitled "Consolidated
     Fixed Charge Coverage Ratio", is hereby amended in its entirety as follows:

              "(a)  Consolidated Fixed Charge Coverage Ratio. As of the end of
                    ----------------------------------------
          each fiscal quarter, Borrower and its Subsidiaries on a consolidated
          basis permit the Fixed Charge Coverage Ratio to be less than
          1.50:1.00."

          (b) Section 6.2(b) of the Credit Agreement, entitled "Consolidated
     Current Ratio", is hereby deleted in its entirety and replaced with the
     following covenant entitled "Consolidated Net Worth":

              "(b)  Consolidated Net Worth.  At any time, permit the
                    ----------------------
          Consolidated Net Worth to be less than $140,000,000."

          (c) Section 6.2(c) of the Credit Agreement, entitled "Consolidated
     Total Liabilities to Tangible Net Worth Ratio", is hereby deleted in its
     entirety and replaced with the following covenant entitled "Consolidated
     Ratio of Total Indebtedness to EBITDA":

              "(c)  Consolidated Ratio of Total Indebtedness to EBITDA.  At any
                    --------------------------------------------------
          time, Borrower and its Subsidiaries on a consolidated basis permit the
          ratio of (i) Total Indebtedness to (ii) EBITDA to be greater than
          1.50:1.00."

          (d) Section 6.2(e) of the Credit Agreement, entitled "Liens Etc.", is
     hereby amended in its entirety as follows:

              "(e)  Liens Etc.  Create or suffer to exist, or permit any of its
                    ---------
          Subsidiaries to create or suffer to exist, any Lien upon or with
          respect to any of its properties, whether now owned or hereafter
          acquired, or assign, or permit any of its Subsidiaries to assign, any
          right to receive income, in each case to secure any indebtedness of
          any Person other than Liens in favor of Bank and, to the extent the
          aggregate Indebtedness secured thereby does not exceed $5,000,000,
          except the following: (i) Liens reflected on Schedule 6.2(e) to the
                                                       ---------------
          Credit Agreement delivered at the closing of the initial Loan; (ii)
          purchase money Liens upon or in any property acquired or held by the
          Borrower or any Subsidiary in the ordinary course of business to
          secure the purchase price of such property or to secure indebtedness
          incurred solely for the purpose of financing the acquisition of such
          property; and (iii) Liens for taxes not yet due."

          (e) Section 6.2(h) of the Credit Agreement, entitled "Loans,
     Investments, Secondary Liabilities", is hereby amended in its entirety as
     follows:

                                       3
<PAGE>

              "(h)   Loans, Investments, Secondary Liabilities.  Make or permit
                     -----------------------------------------
          to remain outstanding, or permit any Subsidiary to make or permit to
          remain outstanding, any loan or advance to, or guarantee, induce or
          otherwise become contingently liable, directly or indirectly, in
          connection with the obligations, stock or dividends of, or own,
          purchase or acquire any stock, obligations or securities of or any
          other interest in, or make any capital contribution to, any other
          Person, or make or permit to remain outstanding loans and advances to
          any of its officers, directors and shareholders or enter into or
          permit to remain outstanding guarantees in connection with the
          obligations of any of its officers, directors and shareholders, in an
          aggregate amount outstanding at any time, collectively among the
          Borrower and its Subsidiaries, in excess of $1,000,000, except that
          the Borrower and its Subsidiaries may, without limitation as to the
          dollar amount of any such transactions:

              (i)    own, purchase or acquire certificates of deposit issued by
          the Bank, commercial paper rated Moody's P-1, municipal bonds rated
          Moody's AA or better, direct obligations of the United States of
          America or its agencies, and obligations guaranteed by the United
          States of America;

              (ii)   continue to own the existing capital stock of the
          Borrower's Subsidiaries;

              (iii)  endorse negotiable instruments for deposit or collection
          or similar transactions in the ordinary course of business;

              (iv)   allow the Borrower's Subsidiaries to make or permit to
          remain outstanding advances from the Borrower's Subsidiaries to the
          Borrower; and

              (v)    allow the Borrower to make or permit to remain outstanding
          advances from the Borrower to the Borrower's Subsidiaries, provided
                                                                     --------
          that such advances may not exceed an amount of $5,000,000 outstanding
          at any one time."

          (f) Section 6.2(i) of the Credit Agreement, entitled "Asset Sales", is
     hereby amended in its entirety as follows:

              "(i)   Asset Sales. Convey, sell, lease, transfer or otherwise
                     -----------
          dispose of, or permit any Subsidiary to convey, sell, lease, transfer
          or otherwise dispose of, during any fiscal year of the Borrower, in
          one transaction or a series of transactions, outside the ordinary
          course of business, assets of the Borrower or of any of its
          Subsidiaries, whether now owned or hereafter acquired, having an
          aggregate value in excess of $1,000,000."

          (g) The following subsection (p) entitled "Stock Repurchases" is
     hereby added to Section 6.2 of the Credit Agreement:

                                       4
<PAGE>

              "(p)  Stock Repurchases. Authorize or permit any Stock
                    -----------------
          Repurchases in excess of $20,000,000 for the period September 1, 1999
          through March 31, 2000, or in excess of $20,000,000 in any subsequent
          fiscal year of Borrower."

     3.   Effectiveness of this Amendment. Each of the following is a condition
          -------------------------------
precedent to the effectiveness of this Amendment and to the Bank's obligation to
extend any credit to Borrower as provided for by this Amendment:

          (a) Amendment. The Bank shall have received, in form and substance
              ---------
     satisfactory to the Bank, this Amendment fully executed in a sufficient
     number of counterparts for distribution to the Bank and Borrower.

          (b) Authorizations. The Bank shall have received evidence, in form
              --------------
     and substance satisfactory to the Bank, that the execution, delivery and
     performance by Borrower and each Guarantor and any instrument or agreement
     required under this Amendment have been duly authorized.

          (c) Representations and Warranties. The Representations and
              ------------------------------
     Warranties set forth in the Credit Agreement must be true and correct as of
     the date of this Amendment as if made as of such date.

          (d) No Event of Default. As of the date hereof, no Event of Default,
              -------------------
     or event which with notice or passage of time or both would constitute an
     Event of Default, exists or has occurred and is continuing.

          (e) Other Required Documentation. All other documents and legal
              -----------------------------
     matters in connection with the transactions contemplated by this Agreement
     shall have been delivered or executed or recorded and shall be in form and
     substance satisfactory to the Bank.

     4.   Representations and Warranties. The Borrower represents and warrants
          ------------------------------
as follows:

          (a) Authority. Borrower has the requisite corporate power and
              ---------
     authority to execute and deliver this Amendment, and to perform its
     obligations hereunder and under the Loan Documents (as amended or modified
     hereby). The execution, delivery and performance by the Borrower of this
     Amendment and each Loan Document (as amended or modified hereby) have been
     duly approved by all necessary corporate action of Borrower and no other
     corporate proceedings on the part of Borrower are necessary to consummate
     such transactions.

          (b) Enforceability. This Amendment has been duly executed and
              --------------
     delivered by Borrower. This Amendment and each Loan Document (as amended or
     modified hereby) is the legal, valid and binding obligation of Borrower,
     enforceable against Borrower in accordance with its terms, and is in full
     force and effect.

                                       5
<PAGE>

          (c) No Default. As of the date hereof, no event has occurred and is
              ----------
     continuing that constitutes, or would with notice or passage of time or
     both would constitute, an Event of Default.

     5.   Choice of Law. The validity of this Amendment, its construction,
          -------------
interpretation and enforcement, the rights of the parties hereunder, shall be
determined under, governed by, and construed in accordance with the internal
laws of the State of California governing contracts only to be performed in that
State.

     6.   Counterparts. This Amendment may be executed in any number of
          ------------
counterparts and by different parties and separate counterparts, each of which
when so executed and delivered, shall be deemed an original, and all of which,
when taken together, shall constitute one and the same instrument.  Delivery of
an executed counterpart of a signature page to this Amendment by telefacsimile
shall be effective as delivery of a manually executed counterpart of this
Amendment.

     7.   Due Execution. The execution, delivery and performance of this
          -------------
Amendment are within the power of Borrower, have been duly authorized by all
necessary corporate action, have received all necessary governmental approval,
if any, and do not contravene any law or any contractual restrictions binding on
Borrower.

     8.   Reference to and Effect on the Loan Documents.
          ---------------------------------------------

          (a) Upon and after the effectiveness of this Amendment, each reference
     in the Credit Agreement to "this Agreement", "hereunder", "hereof" or words
     of like import referring to the Credit Agreement, and each reference in the
     other Loan Documents to "the Credit Agreement", "thereof" or words of like
     import referring to the Credit Agreement, shall mean and be a reference to
     the Credit Agreement as modified and amended hereby.

          (b) Except as specifically amended above, the Credit Agreement and all
     other Loan Documents, are and shall continue to be in full force and effect
     and are hereby in all respects ratified and confirmed and shall constitute
     the legal, valid, binding and enforceable obligations of Borrower to the
     Bank.

          (c) The execution, delivery and effectiveness of this Amendment shall
     not, except as expressly provided herein, operate as a waiver of any right,
     power or remedy of any the Bank or the Agent under any of the Loan
     Documents, nor constitute a waiver of any provision of any of the Loan
     Documents.

          (d) To the extent that any terms and conditions in any of the Loan
     Documents shall contradict or be in conflict with any terms or conditions
     of the Credit Agreement, after giving effect to this Amendment, such terms
     and conditions are hereby deemed modified or amended accordingly to reflect
     the terms and conditions of the Credit Agreement as modified or amended
     hereby.

                                       6
<PAGE>

     9.   Ratification. Borrower hereby restates, ratifies and reaffirms each
          ------------
and every term and condition set forth in the Credit Agreement, as amended
hereby, and the Loan Documents effective as of the date hereof.

     10.  Estoppel. To induce the Bank to enter into this Amendment and to
          --------
continue to make advances to Borrower under the Credit Agreement, Borrower
hereby acknowledges and agrees that, after giving effect to this Amendment, as
of the date hereof, there exists no Event of Default and no right of offset,
defense, counterclaim or objection in favor of Borrower as against the Bank with
respect to the Obligations.

     IN WITNESS WHEREOF, the parties have entered into this Amendment as of the
date first above written.

                                     KEYSTONE AUTOMOTIVE INDUSTRIES, INC.,
                                     a California corporation

                                     By:
                                         ---------------------------
                                     Name:
                                           -------------------------
                                     Title:
                                            ------------------------

                                     MELLON BANK, N.A.,
                                     a national association

                                     By:
                                        ----------------------------
                                     Name:
                                           -------------------------
                                     Title:
                                            ------------------------

                                       7
<PAGE>

                              GUARANTORS' CONSENT

     Each of the undersigned hereby acknowledges and consents to the terms,
conditions and provisions of the Fifth Amendment to Credit Agreement dated as of
September 17,1999 entered into by and among Keystone Automotive Industries, Inc.
("Borrower") and Mellon Bank, N.A. (the "Bank"), and to the transactions
contemplated by such amendment. In addition, each of the undersigned hereby
reaffirms its obligations under its respective Continuing Guaranty delivered to
Lender in connection with the Credit Agreement as of the date noted beside each
such Guarantor's signature block, and agrees that it is and shall remain
responsible for the obligations of Borrower under such Credit Agreement as
amended by the Fifth Amendment to Credit Agreement.

CAR BODY CONCEPTS, INC.,                         Date of Continuing Guaranty:
a Minnesota corporation                          March 17, 1997

By: /s/ John M. Palumbo
    ------------------------------
Name: John M. Palumbo
      ----------------------------
Title: CFO
       ---------------------------

INTEURO PARTS DISTRIBUTORS, INC.,                Date of Continuing Guaranty:
a Florida corporation                            March 17, 1997

By: /s/ John M. Palumbo
    ------------------------------
Name: John M. Palumbo
      ----------------------------
Title: CFO
       ---------------------------

NORTH STAR PLATING COMPANY,                      Date of Continuing Guaranty:
a Minnesota corporation                          March 28, 1997

By: /s/ John M. Palumbo
    ------------------------------
Name: John M. Palumbo
      ----------------------------
Title: CFO
       ---------------------------

REPUBLIC AUTOMOTIVE PARTS, INC.,                 Date of Continuing Guaranty:
a Delaware corporation                           June 29, 1998

By: /s/ John M. Palumbo
    ------------------------------
Name: John M. Palumbo
      ----------------------------
Title: CFO
       ---------------------------

                                       8
<PAGE>

FENDERS & MORE, INC.,                            Date of Continuing Guaranty:
a Tennessee corporation                          June 29, 1998

By: /s/ John M. Palumbo
    ------------------------------
Name: John M. Palumbo
      ----------------------------
Title: CFO
       ---------------------------

                                       9
<PAGE>

            AMENDED AND RESTATED PROMISSORY NOTE (REVOLVING CREDIT)
            ------------------------------------------------------

$30,000,000                                                   September 17, 1999
                                                         Los Angeles, California

     FOR VALUE RECEIVED, KEYSTONE AUTOMOTIVE INDUSTRIES, INC., a California
corporation (the "Borrower"), promises to pay to the order of MELLON BANK, N.A.,
                  --------
a national banking association ("Bank"), on the Maturity Date (as defined in the
                                 ----
Credit Agreement referred to below) the lesser of (i) Thirty Million Dollars
($30,000,000) or (ii) the unpaid principal amount of all advances made by the
Bank to the Borrower as Revolving Loans under the Credit Agreement referred to
below.

     The Borrower also promises to pay interest on the unpaid principal amount
hereof from the date hereof until paid in full at the rates and at the times
which shall be determined in accordance with the provisions of the Credit
Agreement.

     This Amended and Restated Promissory Note (Revolving Credit) (this "Note")
                                                                         ----
is the "Revolving Note" referred to in, and is entitled to the benefits of, that
certain Credit Agreement between Borrower and the Bank dated as of March 25,
1997, as amended by that certain First Amendment to Credit Agreement dated as of
August 25, 1997, that certain Second Amendment to Credit Agreement dated as of
March 17, 1998, that certain Third Amendment to Credit Agreement dated as of
June 29, 1998, that certain Fourth Amendment to Credit Agreement dated as of
September 18, 1998 and that certain Fifth Amendment to Credit Agreement dated as
of even date herewith (collectively, the "Credit Agreement"), to which reference
                                          ----------------
is hereby made for a more complete statement of the terms and conditions under
which the Revolving Loans evidenced hereby were made and are to be repaid. The
Credit Agreement, among other things, (i) provides for the making of advances
(the "Loans") by the Bank to the Borrower from time to time in an aggregate
      -----
amount not to exceed at any time outstanding the U.S. dollar amount first above
mentioned, the Indebtedness of the Borrower resulting from each such Loan being
evidenced by this Note, and (ii) contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events and also for
prepayments on account of principal hereof prior to the maturity hereof upon the
terms and conditions therein specified. (Any and all initially capitalized terms
set forth without definition in this Note shall have the respective meanings
assigned to such terms in the Credit Agreement.)

     All payments of principal, interest and fees in respect of this Note shall
be made in lawful money of the United States of America in same day funds at
Bank's office located at Three Mellon Bank Center, 23rd Floor/Loan
Administration, Pittsburgh, Pennsylvania 15259 or at such other places as shall
be designated in writing for such purpose in accordance with the terms of the
Credit Agreement. Until notified of the transfer of this Note, the Borrower
shall be entitled to deem Bank or such person who has been so identified by the
transferor in writing to the Borrower as the holder of this Note, as the owner
and holder of this Note. Each of the Bank
<PAGE>

and any subsequent holder of this Note agrees that before disposing of this Note
or any part hereof, it will make a notation hereon of all principal payments
previously made hereunder and of the date to which interest hereon has been paid
on the schedule attached hereto, if any; provided, however, that the failure to
                                         --------  -------
make notation of any payment made on this Note shall not limit or otherwise
affect the obligation of the Borrower hereunder with respect to payments of
principal or interest on this Note.

     This Note is subject to mandatory prepayment as provided in the Credit
Agreement. The Borrower may prepay this Note on a voluntary basis as permitted
under the Credit Agreement.

     THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE BORROWER AND BANK SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES. THE BORROWER AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING IN
CONNECTION WITH THIS NOTE SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND
FEDERAL COURTS LOCATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA OR, AT
THE SOLE OPTION OF BANK, IN ANY OTHER COURT IN WHICH BANK SHALL INITIATE LEGAL
OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE
MATTER IN CONTROVERSY.

     THE BORROWER WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT
                                            --------------------
TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THE
PRECEDING PARAGRAPH. THE BORROWER WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE OR THE LOANS
CONTEMPLATED HEREUNDER, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWER REPRESENTS THAT
IT HAS REVIEWED THIS WAIVER AND KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A
COPY OF THIS NOTE MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

    Upon the occurrence of an Event of Default, the unpaid balance of the
principal amount of this Note, together with all accrued and unpaid interest and
fees thereon, (i) may become, or may be declared to be, due and payable in the
manner, upon the conditions and with the effect provided in the Credit
Agreement, and (ii) shall bear interest at a rate equal to 2% above the
applicable Interest Rate Option from and after the occurrence and during the
continuance of an Event of Default.

     This Note is subject to restrictions on transfer or assignment as provided
in Section 8.7 of the Credit Agreement. The terms of this Note are subject to
amendment only in the manner provided in the Credit Agreement.

                                       2
<PAGE>

     No reference herein to the Credit Agreement and no provision of this Note
or the Credit Agreement shall alter or impair the obligation of the Borrower,
which is absolute and unconditional, to pay the principal of and interest on
this Note at the place, at the respective times, and in the currency herein
prescribed.

     The Borrower promises to pay all costs and expenses, including reasonable
attorneys' fees, incurred in the collection and enforcement of this Note. The
Borrower hereby consents to renewals and extensions of time at or after the
maturity hereof, without notice, and hereby waives diligence, presentment,
protest, demand and notice of every kind and, to the full extent permitted by
law, the right to plead any statute of limitations as a defense to any demand
hereunder.

     This Note amends, restates, replaces and supercedes that certain Promissory
Note (Revolving Credit) dated as of March 25, 1997 in the original principal
amount of Twenty-Five Million Dollars ($25,000,000) made by Borrower payable to
the order of Bank (the "Original Note"), which Original Note, upon Borrower's
                        -------------
execution and delivery of this Note, shall be null, void and of no further
force or effect.

     IN WITNESS WHEREOF, the Borrower has caused this Note to be executed and
delivered by its duly authorized officer as of the date and the place first
above written.

                                      KEYSTONE AUTOMOTIVE
                                      INDUSTRIES, INC.
                                      a California corporation

                                      By:  /s/ John M. Palumbo
                                          ---------------------------
                                      Name: John M. Palumbo
                                            -------------------------
                                      Title: C.F.O.
                                             ------------------------

                                       3
<PAGE>

                                 TRANSACTIONS
                                      ON
                      PROMISSORY NOTE (REVOLVING CREDIT)

<TABLE>
<CAPTION>
           Type of Loan   Amount of    Amount of         Outstanding
Date       Made This      Loan Made    Principal Paid    Principal Balance   Notation
----       Date           This Date    This Date         This Date           Made By
           ------------   ---------    --------------    -----------------   --------
<S>        <C>            <C>          <C>               <C>                 <C>

</TABLE>

                                       4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]