FIRST AMENDMENT TO RIGHTS AGREEMENT
FIRST AMENDMENT TO RIGHTS AGREEMENT
FIRST AMENDMENT, dated as of January 8, 2003 (“First Amendment”), to Rights Agreement, dated as of February 10, 2000 (the
“Rights Agreement”), between Keystone Automotive Industries, Inc., a California corporation (the “Company”), and U.S. Stock Transfer Corporation, a California corporation (the “Rights Agent”). Capitalized terms used but
not otherwise defined herein shall have the meanings ascribed to them in the Rights Agreement.
WHEREAS, the
Company and the Rights Agent previously entered into the Rights Agreement; and
WHEREAS, pursuant to Section 25 of
the Rights Agreement, the Company and the Rights Agent may from time to time supplement or amend any provision of the Rights Agreement in accordance with the terms of such Section 25.
NOW, THEREFORE, in consideration of the foregoing premises and mutual agreements set forth in this First Amendment, the parties hereby amend the Rights Agreement as
follows:
1. Section 1.1 of the Rights Agreement is hereby modified, amended
and restated in its entirety as follows:
“1.1. “Acquiring
Person” shall mean any Person (as such term is hereinafter defined) who or which, together with all Affiliates and Associates (as such terms are hereinafter defined) of such Person, shall be the Beneficial Owner (as such term is
hereinafter defined) of 15% or more of the Common Shares of the Company then outstanding but shall not include (i) an Exempt Person (as such term is hereinafter defined) or (ii) FMR Corp., together with all of its Affiliates and Associates
(“FMR”), but only so long as (A) FMR is the Beneficial Owner of less than 18% of the Common Shares outstanding and (B) FMR reports or is required to report such ownership on Schedule 13G or Schedule 13D of the Exchange Act (or any
comparable or successor report) which Schedule 13D does not state or is not required to state any present intention to hold such Common Shares with the purpose or effect of changing or influencing the control of the Company, nor in connection with
or as a participant in any transaction having such purpose or effect. Notwithstanding the foregoing, no Person shall become an “Acquiring Person” as the result of an acquisition of Common Shares by the Company which, by reducing the number
of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 15% or more (or 18% or more in the case of FMR) of the Common Shares of the Company then outstanding; provided, however, that if a Person
shall become the Beneficial Owner of 15% or more (or 18% or more in the case of FMR) of the Common Shares of the Company then outstanding solely by reason of share purchases by the Company and shall, after such share purchases by the Company, become
the Beneficial Owner of one or more additional Common Shares of the Company (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares in Common Shares or pursuant to a split or subdivision of the
outstanding Common Shares), then such Person shall be deemed to be an “Acquiring Person” unless upon becoming the Beneficial Owner of such additional shares of Common Stock such Person does not beneficially own 15% or more (or 18%
or more in the case of FMR) of the shares of Common Stock then outstanding. Notwithstanding the
foregoing, if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this Section 1.1, has become such inadvertently
(including, without limitation, because (A) such Person was unaware that it beneficially owned a percentage of Common Stock that would otherwise cause such Person to be an “Acquiring Person” or (B) such Person was aware of the extent of
its Beneficial Ownership of Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership under this Agreement), and without any intention of changing or influencing control of the Company, and such Person divests as
promptly as practicable a sufficient number of Common Shares so that such Person would no longer be an Acquiring Person, as defined pursuant to the foregoing provisions of this Section 1.1, then such Person shall not be deemed to be or have become
an “Acquiring Person” at any time for any purposes of this Agreement. For all purposes of this Agreement, any calculation of the number of Common Shares outstanding at any particular time, including for purposes of determining the
particular percentage of such outstanding Common Shares of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), as in effect on the date of this Agreement.”
2. This First Amendment shall be effective as of the date hereof and, except as expressly set forth herein, the Rights Agreement shall remain in full force and effect and be otherwise unaffected hereby.
3. This First Amendment may be executed in any number of counterparts, each of which, when
executed, shall be deemed to be an original and all such counterparts shall together constitute one and the same document.
4. If any term, provision, covenant or restriction of this First Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this First Amendment shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
5. This First Amendment shall be deemed to be a contract made under the laws of the State of California and for all purposes shall be governed by and construed in accordance with
the laws of such State applicable to contracts to be made and performed entirely within such State.
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IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date
first written above.
| KEYSTONE AUTOMOTIVE INDUSTRIES, INC. | ||
| By: |
/s/ Xxxxx X. Xxxxxxxx | |
| Name: Xxxxx X. Xxxxxxxx Title: V.P. | ||
| U.S. STOCK TRANSFER CORPORATION | ||
| By: |
/s/ Xxxxxxx Xxxxx | |
| Name:Xxxxxxx Xxxxx Title: Vice President | ||
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