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<SEC-DOCUMENT>0001193125-06-150146.txt : 20070201
<SEC-HEADER>0001193125-06-150146.hdr.sgml : 20070201
<ACCEPTANCE-DATETIME>20060720161220
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-06-150146
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060720

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COAST DISTRIBUTION SYSTEM INC
		CENTRAL INDEX KEY:			0000728303
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-MOTOR VEHICLE SUPPLIES & NEW PARTS [5013]
		IRS NUMBER:				942490990
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1982 ZANKER RD
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95112
		BUSINESS PHONE:		4084368611

	MAIL ADDRESS:	
		STREET 1:		1982 ZANKER RD
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95112

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	COAST RV INC
		DATE OF NAME CHANGE:	19880619
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<HTML><HEAD>
<TITLE>Correspondence Letter</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">THE COAST DISTRIBUTION SYSTEM, INC. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">350 Woodview Avenue </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Morgan Hill, California </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">(408) 782-6686 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">July&nbsp;20, 2006 </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="48%"></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Division of Corporation Finance</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">VIA EDGAR</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">SECURITIES AND EXCHANGE COMMISSION</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Washington, D. C. 20549</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Attention:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Mara L. Ransom, Special Counsel,</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Office of Mergers &amp; Acquisitions</FONT></TD></TR>
</TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Re:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">The Coast Distribution System, Inc. (File No. 001-09511)</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">PRE 14A</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Filed June 28, 2006</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2">Ladies and Gentlemen: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Set forth in the attachment to this letter are the detailed responses of The Coast Distribution System, Inc. (&#147;Coast&#148;) to the comments of the
Staff of the Securities and Exchange Commission (the &#147;Staff&#148;) relating to Coast&#146;s Preliminary Proxy Statement filed with the Commission on June&nbsp;28, 2006 (the &#147;Proxy Statement&#148;). The Staff&#146;s comments are contained
in a letter from the Staff dated July&nbsp;7, 2006 (the &#147;Comment Letter&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We believe, and after reviewing our responses we
think that the Staff will concur, that no amendment to the Proxy Statement is necessary in order to address the Staff&#146;s comments. In particular, as stated in our responses, in the event that Bell Industries does initiate an election contest, we
will file supplemental solicitation materials with the Commission that will include the information requested by the Staff in its Comment Letter. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">If you have any questions or would like to discuss these responses with us, we would ask that you contact our legal counsel, Ben A. Frydman, of Stradling Yocca Carlson&nbsp;&amp; Rauth, whose phone number is (949)&nbsp;725-4150 or the
undersigned at (408)&nbsp;782-6686, ext.&nbsp;167. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Sincerely</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ SANDRA A. KNELL</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Sandra A. Knell, Executive Vice President,</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Chief Executive Officer and Secretary</FONT></TD></TR>
</TABLE></DIV> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">cc:</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Thomas R. McGuire </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Ben A. Frydman </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">RESPONSES OF THE COAST DISTRIBUTION SYSTEM, INC. TO THE COMMENT LETTER, </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">DATED JULY 7, 2006, FROM THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">RELATING TO THE PRELIMINARY PROXY STATEMENT FILED ON JUNE 28, 2006 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2"><U>Schedule 14A
</U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Election of Directors &#150; Page 6</U> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">1. P<SMALL>ROVIDE</SMALL> M<SMALL>ORE</SMALL> S<SMALL>PECIFIC</SMALL> D<SMALL>ISCLOSURE</SMALL> R<SMALL>EGARDING</SMALL> <SMALL>THE</SMALL> D<SMALL>ISCRETION</SMALL> <SMALL>THAT</SMALL> <SMALL>WILL</SMALL>
<SMALL>BE</SMALL> U<SMALL>TILIZED</SMALL> <SMALL>IN</SMALL> C<SMALL>UMULATING</SMALL> <SMALL>AND</SMALL> P<SMALL>RIORITIZING</SMALL> V<SMALL>OTES</SMALL> <SMALL>IN</SMALL> <SMALL>THE</SMALL> E<SMALL>VENT</SMALL> <SMALL>THE</SMALL>
E<SMALL>LECTION</SMALL> <SMALL>OF</SMALL> D<SMALL>IRECTORS</SMALL> B<SMALL>ECOMES</SMALL> C<SMALL>ONTESTED</SMALL> B<SMALL>Y</SMALL> B<SMALL>ELL</SMALL> I<SMALL>NDUSTRIES</SMALL>. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">The intentions of Bell Industries (&#147;Bell&#148;) with respect to a possible election contest remain uncertain. Since May&nbsp;17, 2006, we have not
received any communications from Bell and Bell has not taken any action whatsoever since that date to indicate that it intends to conduct an election contest. Among other things, Bell has not identified any candidates that it might nominate for
election to our Board of Directors in opposition to our nominees, nor has it filed any proxy solicitation materials with the Commission, despite the fact that only 20 days remain until the date of our Annual Stockholders Meeting. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">Additionally, even if Bell still intends to conduct an election contest, we do not know if it plans to nominate one or two opposition candidates for
election to our Board of Directors, which is a decision that could materially affect how we would cumulate and prioritize our votes in such an election contest. Consequently, any statements we might have made in the Proxy Statement regarding how we
intended to cumulate our votes would have been speculative, at best. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">On the other hand, if Bell does initiate an election contest, we
should then have the information we need to make an informed decision with respect to how we would cumulate and prioritize our votes in the election contest. Therefore, in that event, we would file supplemental proxy materials with the Commission
for mailing to our stockholders that will contain more specific information regarding this matter, as requested by the Staff. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Other
Matters &#150; Page 26</U> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">2. P<SMALL>LEASE</SMALL> T<SMALL>ELL</SMALL> U<SMALL>S</SMALL> S<SMALL>UPPLEMENTALLY</SMALL>
W<SMALL>HETHER</SMALL> Y<SMALL>OU</SMALL> H<SMALL>AVE</SMALL> R<SMALL>ECEIVED</SMALL> T<SMALL>IMELY</SMALL> N<SMALL>OTICE</SMALL> <SMALL>OF</SMALL> T<SMALL>HIS</SMALL> <SMALL>OR</SMALL> A<SMALL>NY</SMALL> O<SMALL>THER</SMALL> M<SMALL>ATTER</SMALL>
<SMALL>FOR</SMALL> C<SMALL>ONSIDERATION</SMALL> <SMALL>BY</SMALL> S<SMALL>HAREHOLDERS</SMALL> <SMALL>UNDER</SMALL> <SMALL>THE</SMALL> C<SMALL>OMPANY</SMALL>&#146;<SMALL>S</SMALL> G<SMALL>OVERNING</SMALL> I<SMALL>NSTRUMENTS</SMALL> <SMALL>OR</SMALL>
A<SMALL>PPLICABLE</SMALL> S<SMALL>TATE</SMALL> L<SMALL>AW</SMALL>. S<SMALL>UPPLEMENTALLY</SMALL>, D<SMALL>ESCRIBE</SMALL> <SMALL>IN</SMALL> D<SMALL>ETAIL</SMALL> A<SMALL>NY</SMALL> C<SMALL>ONTACTS</SMALL> <SMALL>OR</SMALL>
N<SMALL>EGOTIATIONS</SMALL> Y<SMALL>OUR</SMALL> A<SMALL>RE</SMALL> H<SMALL>AVING</SMALL> <SMALL>OR</SMALL> H<SMALL>AD</SMALL> <SMALL>WITH</SMALL> B<SMALL>ELL</SMALL> I<SMALL>NDUSTRIES</SMALL>. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(a) Other than Bell Industries&#146; press release and its letter of May&nbsp;17, 2004 (referenced on page 26 of our definitive Proxy Statement), we
have not received any notice of any matter for consideration by our stockholders at the Annual Meeting. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(b) Other than (i)&nbsp;the
publicly disclosed communications from Bell Industries, which contained its unsolicited proposals to acquire Coast, and our publicly disclosed responses to those communications, and (ii)&nbsp;the communications described on page 26 of our Definitive
Proxy Statement, we have not had any contacts or engaged in any negotiations with Bell, except as described below. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">In July 2005, Bell
contacted Coast to determine Coast&#146;s interest in a possible acquisition by Coast of Bell&#146;s recreational products business. Coast was informed by Bell that it was also seeking similar indications of interest from others that it believed
might have an interest in acquiring Bell&#146;s recreational products business. In response to that solicitation, Coast did submit two non-binding proposals to acquire that business from Bell. There also were some preliminary discussions between
Coast and Bell regarding Coast&#146;s proposals. However, the parties were unable to reach agreement on price and those discussions were terminated by Coast in November 2005. It was shortly after Coast&#146;s termination of those discussions that
Bell made the first of its unsolicited proposals to acquire Coast. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2"><U>Acknowledgement </U></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">We also acknowledge that: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">We are responsible for the adequacy and accuracy the disclosure in our filing; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Staff comments or changes in disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and
</FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">We may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.
</FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>

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