Document:

Separation Agreement

 Exhibit 10.2 
 SEPARATION AGREEMENT 
 This Separation Agreement (the “Agreement”) is made
and entered into by and between Richard Keister (the “Executive”) and Keystone Automotive Industries, Inc., a California Corporation (the “Company”). As used herein, “the parties to this Agreement” or “the
parties” shall refer collectively to Executive and the Company. 
 WHEREAS, the Executive is currently employed by the Company
and was elected as its President and Chief Executive Officer at the Annual Meeting of the Board of Directors held on August 18, 2004; and 
 WHEREAS, the Executive is a key employee of the Company and the Company believes the Executive has and will continue to make valuable contributions to the productivity and profitability of the Company; and 
 WHEREAS, the Company desires to provide severance payments to the Executive under certain circumstances if the Executive’s employment with the
Company is terminated prior to March 31, 2011. 
 NOW THEREFORE, in consideration of the covenants and mutual promises and agreements
contained in this Agreement, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
 1. Definitions. 
 a. “Cause” shall mean a determination, by at least a majority of the
members of the Board of Directors of the Company (the “Board”) at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Executive of such meeting, the purpose thereof and the Executive is given
an opportunity to be heard before the Board), that Executive (i) has committed fraud, gross negligence or gross misconduct that results in material harm to the Company or (ii) has been convicted of, or entered a plea of guilty or
“nolo contendre” to, a felony or (iii) is in material breach of paragraph one of the Employment Memorandum of Understanding, dated February 26, 2007 (the “Understanding”) between Executive and the Company, after
receiving written notice specifying the breach and failing to cure the breach within thirty days of the date notice is given. However, if the Company does not give a Notice of Termination (as defined below) for Cause within 60 days after a majority
of the members of the Board (other than the Executive) has actual knowledge that an event constituting Cause has occurred, the event will no longer constitute Cause. 
 b. “Good Reason” shall mean (i) the assignment to the Executive of any duties inconsistent with the Executive’s position as President and Chief Executive Officer of the Company, (ii) a
diminishment in the Executive’s title or a material change in the nature or status of the Executive’s responsibilities without the prior written consent of the Executive, (iii) without the prior written consent of the Executive,
relocation of the Company’s principal place of business outside a twenty five (25) mile radius of its current headquarters in Nashville, Tennessee, or (iv) a material breach by the Company of any of the terms of Executive’s
employment as set 

 
forth in the Understanding, whether compensation or benefits related or otherwise, other than an act that is cured promptly after the Company is given
written notice by the Executive specifying the breach. However, if the Executive does not give a Notice of Termination for Good Reason within 60 days after the Executive has actual knowledge that an event constituting Good Reason has occurred, the
event will no longer constitute Good Reason. 
 c. “Notice of Termination” shall mean a notice of termination sent by the Company
or the Executive notifying the other of the termination of the employment relationship, which Notice of Termination must be delivered to the other party for such termination to be effective. The final date of employment as set forth in the Notice of
Termination is referred to herein as the “Date of Termination.” 
 2. Compensation Upon Termination. 
 a. Termination by the Company for Cause or Termination by the Executive without Good Reason. If the Executive’s employment shall be
terminated by the Company for Cause or the Executive shall terminate his employment without Good Reason (other than a result of death or a disability event), the Company shall, on the Date of Termination (i) pay the Executive his full base
salary through the end of the month in which the Date of Termination occurs and reimburse the Executive for all reasonable and customary expenses incurred by the Executive in performing services hereunder prior to the Date of Termination;
(ii) pay the Executive in full for any bonus earned during the prior year which has not yet been paid to Executive; (iii) continue any and all benefits owed to Executive under Federal Law for a period of six months after the Date of
Termination (or such longer period as required by Federal Law); and (iv) pay Executive in full for any unused vacation accrued through the Date of Termination. 
 b. Death or Disability. If the Executive’s employment shall be terminated by the Company for the death of the Executive or as a result of a disability event as defined in Section 3 below, then the
Company shall: (i) continue to pay the Executive his full base salary for twelve (12) months following the Date of Termination and reimburse the Executive for all reasonable and customary expenses incurred by the Executive in performing
services hereunder up to the Date of Termination; (ii) on the Date of Termination, pay the Executive in full for any bonus earned during the prior year which has not yet been paid to Executive; (iii) on the Date of Termination, but only if
the termination is a result of a disability event, pay the Executive a pro-rata bonus for the year in which the Executive’s last day of employment prior to the Disability Period (as defined in Section 3) occurs in a lump sum cash amount
equal to the product of (x) the dollar target of the Executive’s annual short term bonus for such year and (y) a fraction, the numerator of which is the number of days elapsed in such year through the date immediately preceding the
Disability Period and the denominator of which is 365; (iv) continue any and all benefits owed to Executive under Federal Law for a period of twelve months after the Date of Termination (or such longer period as required by Federal Law);
(v) provide for the continuation, at the Company’s sole expense, of any and all company and executive benefits, including but not limited to any health, disability or life insurance benefits, pension, or other employee benefit policies,
programs or plans, then in effect for the Executive for a period of twelve (12) 

  

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months after the Date of Termination; and (vi) on the Date of Termination, pay Executive for any vacation that would have been accrued at the end of
such twelve (12) month period. 
 c. Termination by the Company without Cause or Termination by the Executive for Good Reason.
If the Company shall terminate the Executive’s employment other than for Cause, or the Executive shall terminate his employment for Good Reason, the Company shall: (i) pay the Executive his base salary through the Date of Termination and
for a period of twenty four (24) months thereafter at the rate in effect at the time Notice of Termination is given (provided that if Executive resigns for Good Reason due to a reduction in his base salary, the base salary in effect immediately
prior to such reduction shall apply); provided, however, that if the Executive resigns for Good Reason the first such payment shall be made as soon as administratively possible on a date not sooner than six (6) months following the
Executive’s Separation from Service (as defined under Section 409A of the Internal Revenue Code), with the first such payment being a balloon payment in an amount equal to seven (7) months of continued salary and thereafter the
Executive shall receive salary payments in accordance with the Company’s standard payroll practices; (ii) on the Date of Termination, pay the Executive in full for any bonus earned during the prior year which has not yet been paid to
Executive; (iii) provide for annual payments for the two (2) consecutive years following the Date of Termination in the amount of the average annual short term bonus earned by Executive during the two years prior to the Date of
Termination; provided, however, that if the Executive resigns for Good Reason such first such payment shall be made as soon as administratively possible on a date not sooner than six (6) months following the Executive’s Separation from
Service (as defined under Section 409A of the Internal Revenue Code) and the second such annual payment shall be made on the date one (1) year following the Executive’s Date of Termination; (iv) provide for the continuation, at
the Company’s sole expense, of any and all company and executive benefits, including but not limited to any health, disability or life insurance benefits, pension, or other employee benefit policies, programs or plans, then in effect for the
Executive for a period of twenty four (24) months after the Date of Termination; (v) continue any and all benefits owed to Executive under Federal Law for a period of twenty four (24) months after the Date of Termination (or such
longer period as required by Federal Law); and (vi) on the Date of Termination, pay Executive in full for any vacation that would have been accrued at the end of such twenty four (24) month period. 
 3. Effective Date of Death or Disability Event. The date of death of the Executive shall be deemed to be the Date of Termination for purposes of
Section 2.b. above. The Date of Termination for a disability event for purposes of Section 2.b above shall be that date when the Company has given the Executive Notice of Termination that it is terminating the Executive’s employment
due to the Executive’s inability to perform the services required under the Understanding as a result of his physical or mental disability for any consecutive 180 day period (the “Disability Period”). 
 4. Retirement or Resignation. The Executive’s voluntary termination of employment other than under the terms of Section 2.c. or prior to
reaching age 65, shall be deemed a termination without Good Reason under Section 2.a. above, unless the Board of Directors in its sole discretion shall have agreed to other arrangements. 
  

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 5. Amendments. This Agreement shall not be altered, modified, amended or terminated except by
written instrument signed by each of the parties hereto. 
 6. Successors. The Company will require any successor controlled by the
Company’s Board of Directors (whether direct or indirect, by purchase, merger, consolidation or otherwise) to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place. Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Executive to the benefits provided by
Section 2(c) from the Company in the same amount and on the same terms as the Executive would be entitled hereunder upon a termination by the Company without Cause or by the Executive for Good Reason, except that for purposes of implementing
the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. As used in the Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in this Section 6 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 
 7. Severability. If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and
provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. In the event that any portion or provision of this Agreement (including, without limitation, any portion or provision of the covenants set forth in
Sections 16 and/or 17) is determined by a court of competent jurisdiction to be unenforceable or unreasonable by reason of excessive or unreasonable scope as to geographic temporal scope or functional scope of the activities precluded, such
provision will be deemed to extend only over the maximum geographic, temporal and functional scope as to which it may be reasonable and enforceable and shall be so enforced. 
 8. Binding Agreement. All of the terms and provisions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the
parties hereto and their respective successors and assigns. 
 9. Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original but all of which shall constitute one and the same agreement. 
 10. Notices. For purposes of
this Agreement, notices and all other communications provided herein shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid,
addressed as follows: 
  

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 If to the Executive: 
 Richard Keister 
 101 Bancroft Ct. 
 Nashville, TN 37215 
 If to the Company: 
 Keystone
Automotive Industries, Inc. 
 655 Grassmere Park Drive 
 Nashville, TN 37211 
 Attention: General Counsel 
 or to such other address as either party may have furnished to the other in writing in accordance herewith, or
Executive’s then current home address on the books and records of the Company, except that notices of change of address shall be effective only upon receipt. 
 11. Delayed Payments. To the extent necessary to satisfy the requirements of Section 409A of the Internal Revenue Code with respect to all separation payments, upon termination of Executive’s
employment, all payments pursuant to Section 2 and Section 13 shall be delayed until six months after the Date of Termination at which time payments shall be made. In the event that the payments are to be made over a period of time
exceeding six months, the Company shall pay Executive the aggregate of seven monthly payments on the six-month anniversary of the Date of Termination and thereafter monthly payments shall resume in the normal course. 
 12. Disputes. To the extent permitted by law, the Company will pay or reimburse any reasonable expenses, including reasonable attorney’s
fees, the Executive incurs as a result of any controversy or dispute between the Executive and the Company relating to or concerning this Agreement or any aspect of the Executive’s employment with the Company or the termination of that
employment. However, the Executive agrees to promptly repay any expenses paid or reimbursed by the Company if the Company is the prevailing party. The Executive’s and the Company’s respective obligations under this Agreement will not be
affected by any set-off, counterclaim, recoupment or other right they may have against each other or anyone else. The Executive does do not need to seek other employment or take any other action to mitigate any amounts owed to him under this
Agreement, and those amounts will not be reduced if the Executive does obtain other employment. 
 13. Additional Payments. If any
payment or benefit provided to the Executive or for his benefit by the Company (or any other entity in connection with a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets
of the Company), including without limitation any acceleration of vesting of any prior awards or any termination of the restrictions thereon, would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (including any
similar state or local tax and any related interest or penalties, “Excise Tax”), the Executive will be paid an additional payment in an amount such that, after the Executive’s payment of all taxes on or otherwise as a result of the
additional payment (including any Excise Tax, income tax, related interest or penalties and effect of any disallowed deductions), the Executive retains an amount of the additional payment equal to the Excise Tax. All determinations required to be
made under this Section 13, including as 

  

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to any underlying assumptions, will be made by an accounting firm selected by the Company and reasonably acceptable to the Executive. The accounting firm
will provide the Executive and the Company with its determination of the additional payment, if any, that is due with respect to any payment or benefit (together with reasonably detailed supporting schedules) within 15 business days after they
receive notice from the Executive that the payment has been made or benefit provided, or at such earlier time as the Company may request. Any additional payment determined due under this Section 13 will be paid within five days of the later of
(a) the due date of the Excise Tax and (b) the accounting firm’s determination. If the Executive reasonably requests and the accounting firm determines that no Excise Tax is payable, the accounting firm will provide the Executive with
a written opinion, in form and substance reasonably satisfactory to the Executive, that the Executive is not required to pay any Excise Tax and the Executive’s not reporting any Excise Tax on his applicable federal income tax return will not
result in the imposition of a negligence or similar penalty. The Company will bear all fees and expenses of the accounting firm, including any costs of retaining experts. 
 14. Legal and Other Fees. The Company will pay the Executive’s reasonable legal fees incurred by the Executive with Sullivan & Cromwell LLP in connection with the preparation and negotiation of
this Agreement, the Understanding and the Award Agreements for the June 14, 2006 Options and Performance Based Restricted Stock. 
 15.
Key Employee Salary Continuation Agreement. Upon this Agreement becoming effective, as evidenced by the signatures of the parties hereto, the Key Employee Salary Continuation Agreement between the Company and the Executive dated July 7,
2005 shall be terminated with no further rights or obligations arising thereunder. However, in the event that other executive officers of the Company become eligible for change in control benefits during the term of this Agreement that are greater
than those provided to the Executive hereunder, then the Company shall provide such greater benefits to the Executive (except to the extent that any duplication of benefits would result). 
 16. Continuing Obligations. In order to induce the Company to enter into this Agreement, the Executive hereby agrees: 
 a. At all times from and after the date hereof and ending three (3) years after Executive is no longer employed by the Company, Executive agrees that
Executive (i) shall make no use of the Trade Secrets, or any other part thereof and (ii) shall not disclose the Trade Secrets, or any part thereof, to any other person or entity. This Section shall survive the termination of this
Agreement. The Executive agrees not to disclose or reveal any information, whether including in whole or in part any Trade Secrets, except: (i) in response to an order or subpoena issued by a court or government agency; or (ii) to
Executive’s attorneys, accountants or any governmental taxing authority. 
 “Trade Secrets” shall mean: 
 (i) All secrets and other confidential information, ideas, knowledge, know-how, techniques, secret processes, improvements, discoveries, methods,
inventions, sales, financial information, customers, lists of customers and prospective customers, plans, concepts, strategies or products, as well as all documents, reports, drawings, designs, plans and proposals otherwise pertaining to same or
relating to the Company or an affiliated entity of which Executive has acquired knowledge and possession as an officer or employee of the Company. 
  

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 (ii) “Trade Secrets” shall not include any (i) information which is or has become
available from a third party who learned the information independently and is not or was not bound by a confidentiality agreement with respect to such information or (ii) information readily ascertainable from public, trade or other
nonconfidential sources (other than as a result, directly or indirectly, of a disclosure or other dissemination in contravention of a confidentiality agreement). 
 b. At all times from and after the date hereof and ending three (3) years after Executive is no longer employed by the Company, Executive agrees not to, either directly or through others, or in the service of or
on behalf of others, entice, solicit, recruit or attempt to persuade any person to sever such person’s employment with the Company or an affiliated entity, or to devote less than all of such employee’s efforts to the Company or an
affiliated entity, or to perform services for any individual or entity other than the Company or an affiliated entity, or to obtain any Trade Secrets from such employee, whether or not such person is a full-time employee of the Company or an
affiliated entity and whether or not such employment with the Company or an affiliated entity is pursuant to a written agreement or is at-will. 
 17. Non-Competition. For purposes of this Section 17, references to the “Company” shall include, individually and collectively, the Company and its affiliates and its/their respective successors and assigns. The
Executive agrees that, during the Executive’s employment with the Company and for a period of twenty-four (24) months following the termination of the Executive’s employment with the Company by the Executive or the Company for
whatever reason, the Executive shall not, without the prior written consent of the Board of Directors, either directly or indirectly, as an officer, employee, director, agent, independent contractor, consultant, volunteer, partner, member, manager,
owner, shareholder, principal, or in any other capacity or otherwise on behalf of himself or any other person or entity: 
 a. own an interest
in, join, operate, control, participate in, be employed or engaged by or with, be associated, affiliated or connected with, or perform or provide work or services to, for or on behalf of any person, company or other entity engaged in a Competing
Business (as hereinafter defined). For purposes of this Agreement, a person, company or other entity shall be deemed to be engaged in a “Competing Business” if he, she or it is engaged in any way in the aftermarket collision replacement
parts industry for automobiles and light trucks including, without limitation, providing, offering, developing, manufacturing, selling, marketing, licensing or producing any product, service or system which is competitive with, the same as, similar
to, performs, serves or provides a similar function as, or can be used as a substitute or replacement for, any product, service or system that is both (i) related to the aftermarket collision replacement parts industry and (ii) offered,
sold, provided, produced or being developed by the Company during the Executive’s employment with the Company. 
 b. influence,
encourage, solicit, persuade, induce or procure (or attempt to influence, encourage, solicit, persuade, induce or procure), directly or indirectly, on behalf of himself or any other person or entity, any Customer of the Company to cease doing
business with or otherwise terminate, limit, postpone, divert or diminish its relationship, business dealings or patronage with the Company (except as part of the ordinary course activities of Executive permitted by the following paragraph).

  

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 The foregoing restrictions under Section 17: (i) shall be limited to the United States, Canada and those
foreign countries within which the Company, directly or indirectly (including, without limitation, indirectly through its independent sales representatives, distributors, partners, joint venturers or licensees), sells, offers, markets, develops,
produces, manufactures, performs, provides, or solicits business for its products, systems or services at any time during the Executive’s employment with the Company; (ii) shall not preclude the Executive from performing work for or
providing services to a person, company or other entity (not primarily engaged in a Competing Business) which among his/her or its businesses includes a division, section, sub-part, subsidiary or affiliated entity engaged in a Competing Business
provided that the Executive is not directly or indirectly involved in any of the aspects, businesses, divisions, sections, sub-parts, subsidiaries or affiliated entities of such person, company or entity which is/are engaged in a Competing Business;
(iii) shall not preclude the Executive from serving as an executive officer of a company or other entity (that derives less than ten percent (10%) of its gross revenues from a Competing Business) which among its businesses includes a
division, section, sub-part, subsidiary or affiliated entity engaged in a Competing Business provided that the Executive is not the officer of the company or other entity directly responsible for the aspects, businesses, divisions, sections,
sub-parts, subsidiaries or affiliated entities of such company or entity which is/are engaged in a Competing Business (although the Executive may supervise such officer as part of his other responsibilities) and (iv) shall not preclude the
Executive from passive ownership of up to five percent (5%) of the outstanding stock of a publicly held corporation which is engaged in a Competing Business. 
 18. Enforcement; Remedies Upon Breach. The Executive understands that the obligations and restrictions contained in Sections 16 and 17 of this Agreement are intended to protect the Company’s interests in
its Confidential Information, customer relationships, goodwill, and employee training, and agrees that such obligations and restrictions (and the scope of precluded activities, geographic scope and duration thereof) are necessary, reasonable and
appropriate for this purpose. The Executive agrees that it would be difficult to measure any damages caused to the Company which might result from any breach by the Executive of his promises set forth in Sections 16 and 17 above, that the Company
would be irreparably harmed by such breach, and that, in any event, money damages would be an inadequate remedy for any such breach. The Executive further acknowledges and agrees that (i) without the restrictions set forth in Sections 16 and
17, the Executive would be in a position to compete unfairly with the Company, and (ii) the Executive’s education and experience are such that the restrictions set forth in Sections 16 and 17 will not interfere with his ability to earn a
livelihood. Accordingly, the Executive agrees and consents that the Company shall be entitled to temporary, preliminary and permanent injunctive relief or other appropriate equitable relief (in addition to all other remedies it may have for damages
or otherwise, in law or in equity) to restrain any such breach or threatened breach without showing or proving any actual damage to the Company; and the Company shall be entitled to an award of its attorneys fees and costs incurred in enforcing the
Executive’s obligations and restrictions under Section 16 and 17 of this Agreement. 
  

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 19. Applicable Laws and Consent to Jurisdiction. The validity, construction, interpretation, and
enforceability of this Agreement shall be determined and governed by the laws of the State of Tennessee without giving effect to the principles of conflicts of law. For the purpose of litigating any dispute that arises under this Agreement, the
parties hereby consent to exclusive jurisdiction and agree that such litigation shall be conducted in the federal or state courts of the State of Tennessee. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement and it shall be effective as of February 26, 2007. 
  

			
	KEYSTONE AUTOMOTIVE INDUSTRIES, INC.
		
	By:	 	 /s/ Ronald G. Foster

	Name:	 	Ronald G. Foster
	Its:	 	Chairman of the Board
		
		 	 /s/ Richard L. Keister

		 	Richard L. Keister

  

 9Nonqualified Stock Option Award Agreement

 Exhibit 10.3 
 Keystone Automotive Industries, Inc. 
 Nonqualified Stock Option Award Agreement 
 THIS AGREEMENT, effective June 14, 2006, represents the grant of a nonqualified stock option (“Option”) by Keystone Automotive Industries, Inc. (the
“Company”) to the Participant named below, pursuant to the provisions of the 2005 Omnibus Incentive Plan (the “Plan”). 
 The Plan
provides a complete description of the terms and conditions governing this Option. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the
conflicting terms of this Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein. The parties hereto agree as follows: 
 1. General Option Grant Information. The individual named below has been selected to be a Participant in the Plan and receive a Nonqualified Stock Option (NQSO)
grant, as specified below: 
 (a) Participant: Richard L. Keister 
 (b) Date of Grant: June 14, 2006 
 (c) Number of Shares Covered by this Option: 150,000 
 (d) Option Price: $35.94 
 (e) Date of Expiration:
June 14, 2016 
 2. Grant of Option. The Company hereby grants the Participant an Option to purchase the number of Shares set forth above, at the
stated Option Price, which is one hundred percent (100%) of the Fair Market Value of a Share on the Date of Grant, in the manner and subject to the terms and conditions of the Plan and this Agreement. 
 3. Option Term. The term of this Option begins as of the Date of Grant as set forth above and shall expire on the Date of Expiration as set forth above
(“Option Term”), unless sooner terminated in accordance with the terms of this Agreement. 
 4. Vesting Period. The Option does not provide
the Participant with any rights or interests therein until it vests in accordance with the following: 
 (a) Thirty-three and one-third percent (33• 1/3%) of the Option (rounded to a whole Share)
will vest on each of the third, fourth and fifth anniversaries of the Date of Grant, provided that either (a) the Participant has continued in the employment of the Company, its Affiliates, and/or its Subsidiaries through each such anniversary
or anniversaries, or (b) an event described in subparagraphs (a) through (e) of Paragraph 7 below occurs, in which case the provisions of Paragraph 7 will control as to the vesting of the Options. 

 5. Exercise. Notwithstanding anything set forth herein, all Options terminate, have no further force or effect and
may not be exercised from and after the expiration of the Option Term. The Participant or the Participant’s representative upon the Participant’s death (as determined in accordance with Section 15 of the Plan) may exercise this Option
to the extent vested as follows, but under no circumstances may such Option be exercised on or after the Date of Expiration: 
 (a) In the event of a
termination of employment under Paragraph 7(d) below, vested options may be exercised for a period of 90 days after termination. 
 (b) In the event of a
termination of employment under Paragraph 7(a) below, vested options may be exercised for a period of 15 months after termination. 
 (c) In the event of a
termination of employment under either Paragraph 7(b) or 7(c) below, vested options may be exercised for a period of 27 months after termination. 
 6.
How to Exercise. Once vested, the Options hereby granted shall be exercised by written notice to Company’s Chief Financial Officer (CFO) or such other administrator as may be designated by the CFO, specifying the number of Shares subject to
this Option that the Participant then desires to exercise. The Option Price upon exercise of these Options shall be payable to the Company in full either: (a) in cash or its equivalent (acceptable cash equivalents shall be determined at the
sole discretion of the Committee but shall include a certified check); or (b) by tendering previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the total Option Price (provided that the Shares which
are tendered must have been held by the Participant for at least six months prior to their tender to satisfy the Option Price); or (c) by a combination of (a) and (b). 
 Subject to the approval of the Committee, the Participant may be permitted to exercise pursuant to a “cashless exercise” procedure, as permitted under Federal Reserve Board’s Regulation T, subject to
securities law restrictions, or by any other means which the Committee, in its sole discretion, determines to be consistent with the Plan’s purpose and applicable law. 
 As promptly as practicable after receipt of notice and payment upon exercise, the Company shall cause to be issued and delivered to the Participant or his or her legal representative, as the case may be, certificates
for the Shares so purchased. The Share certificates shall be issued in the Participant’s name (or, at the discretion of the Participant, jointly in the names of the Participant and the Participant’s spouse). The Company shall maintain a
record of all information pertaining to the Participant’s rights under this Agreement, including the number of Shares for which the Options are exercisable. If all of the Options granted pursuant to this Agreement have been exercised, this
Agreement shall be returned to the Company and canceled. 
  

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 7. Termination of Employment. In the event of the termination of Participant’s employment for one of the
events described in subparagraphs (a) through (d) below, the vesting and termination of the Options shall take place as follows: 
 (a) If the Participant’s employment terminates during the Option Term by reason of death, a disability event
(as that term is defined in the Separation Agreement with Participant dated February 26, 2007 (the “Separation Agreement”)) or Early Retirement as defined herein, the number of Options vested and subject to exercise shall equal the
number of months from and including June 2006 through the beginning of the month in which the date of termination occurs (unless the date of termination occurs on or after the 15th of such month, in which case the number of months will be calculated through the end of such month), divided by 60, times 150,000 (subject to adjustment in
accordance with Section 4.4 of the Plan). Unvested Options shall terminate at the date of termination. Early Retirement is defined as a termination of employment by Participant after Participant has reached age 62 and before Participant reaches
age 65. 
 (b) If the Participant terminates his employment after reaching age 65, the Options shall be fully vested as of the date of termination.

 (c) If the Participant’s employment terminates during the Option Term due to dismissal by the Company without Cause, or Participant terminates his
employment for Good Reason (in each case as those terms are defined in the Separation Agreement), the Options shall be fully vested as of the date of termination. 
 (d) If Participant’s employment terminates during the Option Term due to dismissal by the Company for Cause (as defined in the Separation Agreement) or Participant voluntarily terminates employment other than for Good Reason (as
defined in the Separation Agreement) prior to reaching age 62, all unvested Options shall immediately terminate. 
 8. Change in Control. In the event
of a Change in Control of the Company, as defined in Section 2.8 of the Plan, except to the extent that another award meeting the requirements of subsection (a) below (a “Replacement Award”) is provided to replace the Option (the
“Replaced Award”), the Participant’s outstanding Option will become fully vested and exercisable. 
 (a) An Award shall meet the conditions of
this Section 8(a) (and hence qualify as a Replacement Award) if: (i) it has a value at least equal to the value of the Replaced Award; (ii) it relates to publicly traded equity securities of the Company or its successor in the Change
in Control or another entity that is affiliated with the Company or its successor following the Change in Control; (iii) its other terms and conditions are not less favorable than the terms and conditions of the Replaced Award (including the
provisions that would apply in the event of a subsequent Change in Control); and (iv) that the Replacement Award complies with the requirements under Code Section 409A so that the Replacement Award is not deemed the grant of a new stock
right or change in the form of payment for purposes of Code Section 409A. The determination of whether the conditions of this Section 8(a)(i) through (iii) are satisfied will be made by the Committee (as defined in the Plan), in its
good faith discretion. The condition in this Section 8(a)(iv) shall be satisfied 
  

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 only upon receipt by the Participant of an opinion (in form and substance reasonably satisfactory to the Participant) of
counsel to the effect that the condition is satisfied. Such counsel will be selected by the Committee and reasonably satisfactory to the Participant. 
 (b)
If during the two (2) year period after the Change in Control the Company terminates the Participant’s employment other than for Cause (as defined in the Separation Agreement), or the Participant terminates employment for Good Reason (as
defined in the Separation Agreement), all Replacement Awards the Participant holds will become fully vested and exercisable. All Options the Participant held immediately before termination of employment that the Participant held as of the date of
the Change in Control or that constitute Replacement Awards will remain exercisable for 27 months following the Participant’s termination or until the expiration of the stated term of such Option, whichever period is shorter. 
 If the conditions of subsection (a) above are not met upon a Change in Control, as determined in the sole discretion of the Committee, all then-outstanding Options
shall become fully vested and exercisable. 
 9. Nontransferability. This Option may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution, except as provided in the Plan. No assignment or transfer of the Option, whether voluntary or involuntary, by operation of law or otherwise, except by will or
the laws of descent and distribution or as otherwise required by applicable law, shall vest in the assignee or transferee any interest whatsoever. 
 10.
Administration. This Agreement and the Participant’s rights hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt
for administration of the Plan. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be
binding upon the Participant. 
 11. Requirements of Law. The granting of this Option shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 12. Tax Withholding.
The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, the minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be
withheld with respect to any taxable event arising as a result of this Plan (the “Withholding Taxes”). If the Participant is entitled to receive Shares upon exercise of this Option, the Participant shall pay the Withholding Taxes to the
Company in cash prior to the issuance of such Shares or have the Company withhold Shares having the Fair Market Value of the Withholding Taxes. 
  

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 13. Continuation of Employment. This Agreement shall not confer upon the Participant any right to
continuation of employment by the Company, its Affiliates and/or its Subsidiaries, nor shall this Agreement interfere in any way with the Company’s, its Affiliates’ and/or its Subsidiaries’ right to terminate the Participant’s
employment at any time. 
 14. Amendment to the Plan. The Plan is discretionary in nature and the Committee may terminate, amend, or modify the
Plan; provided, however, that no such termination, amendment, or modification of the Plan may in any way adversely affect the Participant’s rights under this Agreement, without the Participant’s written approval. 
 15. Successor. All obligations of the Company under the Plan and this Agreement, with respect to the Option, shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
 16. Investment Representation. Unless a registration statement under the Securities Act of 1933, as amended (and applicable state securities laws), is in effect
with respect to the Shares issued on the date of exercise of the Option, Participant, or his designated beneficiary, agrees with, and represents to, the Company that Participant is acquiring the Shares for the purpose of investment and not with a
view to transfer, sell, or otherwise dispose of the Shares. The Company may require an opinion of counsel satisfactory to it prior to the transfer of any Shares to assure at all times that it will be in compliance with applicable federal and state
securities laws. 
 17. Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be
illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable. 
 18. Applicable
Laws and Consent to Jurisdiction. The validity, construction, interpretation, and enforceability of this Agreement shall be determined and governed by the laws of the state of Tennessee without giving effect to the principles of conflicts of
law. For the purpose of litigating any dispute that arises under this Agreement, the parties hereby consent to exclusive jurisdiction and agree that such litigation shall be conducted in the federal or state courts of the state of Tennessee.

  

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 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on February 26, 2007. 
  

			
	Keystone Automotive Industries, Inc.
		
	By:	 	 /s/ Ronald G. Foster

	Name:	 	Ronald G. Foster
	Its:	 	Chairman of the Board
	
	 /s/ Richard L. Keister

	Richard L. Keister

  

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