<SUBMISSION>
<ACCESSION-NUMBER>0001193125-11-072563
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20110315
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20110321
<DATE-OF-FILING-DATE-CHANGE>20110321
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>COAST DISTRIBUTION SYSTEM INC
<CIK>0000728303
<ASSIGNED-SIC>5013
<IRS-NUMBER>942490990
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-09511
<FILM-NUMBER>11701623
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1982 ZANKER RD
<CITY>SAN JOSE
<STATE>CA
<ZIP>95112
<PHONE>4084368611
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1982 ZANKER RD
<CITY>SAN JOSE
<STATE>CA
<ZIP>95112
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>COAST RV INC
<DATE-CHANGED>19880619
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d8k.htm
<DESCRIPTION>THE COAST DISTRIBUTION SYSTEM, INC. FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>The Coast Distribution System, Inc. Form 8-K</TITLE>
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 <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P>
<P STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:4px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>Washington, D.C. 20549 </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>FORM 8-K
</B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="4"><B>CURRENT REPORT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>Pursuant to Section&nbsp;13 or 15(d) of </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B>The Securities Exchange Act of
1934 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B>Date of Report (Date of earliest event reported): March&nbsp;15, 2011 </B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="6"><B>THE COAST DISTRIBUTION SYSTEM, INC. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Exact name of registrant as specified in its charter) </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Delaware</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>1-9511</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>94-2490990</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(State or other jurisdiction</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>of incorporation)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Commission</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>File Number)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(IRS Employer</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>Identification No.)</B></FONT></P></TD></TR>
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<TD HEIGHT="16" COLSPAN="3"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" COLSPAN="3" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>350 Woodview Avenue, Morgan Hill, California</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>95037</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Address of principal executive offices)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Zip Code)</B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Registrant&#146;s telephone number, including area code: (408)&nbsp;782-6686 </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>N/A </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Former name or former address, if changed since last report.) </B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </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%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </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%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </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%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE>
<P STYLE="font-size:8px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P>
<P STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P>

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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Item&nbsp;5.02</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
</B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Adoption of Compensatory Plan for Executive Officers </U></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A cash bonus plan for the Company&#146;s fiscal year ending December&nbsp;31, 2011 (the &#147;2011 Plan&#148;) was adopted, effective as
of March&nbsp;15, 2011, for the Company&#146;s five executive officers. Set forth below is a summary of the material terms of the Cash Bonus Plan, which is qualified by reference to the Plan, a copy of which is attached as Exhibit 99.1 to this
Current Report on Form&nbsp;8-K. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Purpose of the Cash Bonus Plan</U>. The primary purpose of the 2011 Plan is to promote
the interests of the Company and its stockholders by (i)&nbsp;providing meaningful financial incentives for the Company&#146;s executive officers to make a significant contribution to the achievement, by the Company, of financial goals for the
Company&#146;s fiscal year ending December&nbsp;31, 2011 (&#147;fiscal 2011&#148;), and (ii)&nbsp;making a significant portion of each Participant&#146;s cash compensation for fiscal 2011 dependent on the Company&#146;s achievement of those goals.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Plan Participants</U>. The participants in the 2011 Plan (the &#147;Plan Participants&#148;) are the Company&#146;s Chief
Executive Officer and its four other executive officers (the &#147;Plan Participants&#148;): James Musbach, President&nbsp;&amp; CEO; Thomas R. McGuire, Executive Chairman; Sandra A. Knell, Executive Vice President and Chief Financial Officer;
Dennis Castagnola, Executive Vice President &#151; Proprietary Products; and David Berger, Executive Vice President &#150; Operations. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Administration of the 2011 Plan</U>. The 2011 Plan will be administered and all decisions and determinations with respect to the Plan will be made by the Compensation Committee of the Board of
Directors. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Summary of Bonus Compensation Opportunities and Awards</U>. </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">1. <U>Establishment of Bonus Pool</U>. Bonuses under the 2011 Plan will be paid from a bonus pool, the amount of which will depend upon
the amount of the Company&#146;s fiscal 2011 earnings before income taxes, calculated before any accrual is made for any 2011 Bonus Plan awards (&#147;Pre-Tax Earnings&#148;). However, no bonus pool will be established and no bonus awards will be
made under the 2011 Plan unless the Company&#146;s fiscal 2011 Pre-Tax Earnings in fiscal 2011 total least $1.5&nbsp;million (the &#147;Threshold Performance Goal&#148;). If the Threshold Performance Goal is achieved or exceeded, the amount of the
bonus pool will range from approximately 4.5% up to a maximum of approximately 9.0% of the Company&#146;s fiscal 2011 Pre-Tax Earnings. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">2. <U>Bonus Opportunities</U>. The Committee has established the following respective Threshold and Maximum Bonus Award opportunities, under the 2011 Plan, for each of the Company&#146;s CEO, and four
other executive officers, in each case expressed as a percentage of their respective annual salaries in fiscal 2011: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD></TD>
<TD></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="13%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="6" NOWRAP ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Range&nbsp;of&nbsp;Potential&nbsp;Bonus&nbsp;Awards&nbsp;as<BR>a Percentage of 2011 Annual
Salary</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:77pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>2011 Plan Participants</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Threshold<BR>Award</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Maximum<BR>Award</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>
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<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">James Musbach, President&nbsp;&amp; CEO</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">10.0</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">100.0</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Thomas R. McGuire, Executive Chairman</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">5.0</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">33.3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sandra A. Knell, Executive V.P.&nbsp;&amp; Chief Financial Officer</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">5.0</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">100.0</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dennis Castagnola, Executive V.P. &#150; Proprietary Products</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">5.0</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">100.0</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD>
<TD HEIGHT="8" COLSPAN="4"></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">David Berger, Executive V.P. &#150; Operations</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">5.0</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">100.0</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">%&nbsp;</FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">If the 2011 Threshold
Performance Goal is achieved, but not exceeded, then the Plan Participants named above could earn the Threshold Bonus Award set forth in the table above. If, on the other hand, the Threshold Performance Goal is exceeded, then, depending on the
extent to which the Company&#146;s 2011 Threshold Performance Goal is </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 STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


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exceeded, the Plan Participants could earn bonus awards ranging as follows: (i)&nbsp;in the case of the Company&#146;s CEO, from 15% up to the Maximum Award of 100% of his 2011 annual salary,
(ii)&nbsp;in the case of the Company&#146;s Executive Chairman, from 10% up to a Maximum Award of 33.3% of his 2011 annual salary, and (iii)&nbsp;in the case of each of the Company&#146;s three Executive Vice Presidents, from 10% up to a Maximum
Award of 100.0% of his/her respective 2011 annual salary. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">3. <U>Conditions to the Awarding and Receipt of Bonus Awards</U>.
To be eligible to receive a bonus award under the 2011 Plan, a Participant must remain in the continuous service of the Company or any subsidiary until the earlier of the following dates: (i)&nbsp;December&nbsp;31, 2011 or (ii)&nbsp;the date on
which, if any, that a change of control of the Company is consummated (the &#147;Eligibility Date&#148;). A Plan Participant that fails to meet this requirement will not be deemed to have earned and will not be entitled to receive any bonus award
under the 2011 Plan, whether prorated or otherwise. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">4. <U>Changes to Financial Performance Goal due to Extraordinary
Events</U>. The Compensation Committee may adjust or change the amount of the Bonus Pool or any Participant&#146;s potential bonus compensation award to reflect the occurrence of (i)&nbsp;any extraordinary event, (ii)&nbsp;any material corporate
transaction, (iii)&nbsp;any material changes in corporate capitalization, accounting rules or principles or in the Company&#146;s methods of accounting, (iv)&nbsp;any material changes in applicable law, or (v)&nbsp;any other material change of
similar nature (each, an &#147;Extraordinary Event&#148;), but only if the Extraordinary Event was not reasonably foreseeable at the time the amounts of the bonus pool and the potential bonus awards under the Plan were established and would, in the
sole opinion of the Committee (x)&nbsp;make it unlikely that the Threshold Performance Goal will be achieved, or (y)&nbsp;enable the Company to achieve Pre-Tax Earnings that would not have been likely to be generated in the absence of the occurrence
of the Extraordinary Event. The 2011 Plan provides, however, that the occurrence of changes in the competitive environment or changes in economic or market conditions in the Company&#146;s markets, whether or not expected or reasonably foreseeable,
will not by themselves constitute Extraordinary Events that may be the basis for any of the foregoing changes. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">5.
<U>Amendments to or Termination of 2011 Plan</U>. The 2011 Plan may be amended or modified or terminated by action of the Compensation Committee at any time prior to the Eligibility Date (as set forth above). As a result, at any time prior to the
Eligibility Date, the amount of any bonus award that a Participant may earn or receive under the 2011 Plan may be changed and a Participant&#146;s rights under the 2011 Plan may be modified or altogether terminated by the Compensation Committee, in
its sole and absolute discretion. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6. <U>Determination of Bonus Awards</U>. The Compensation Committee shall, in its sole and
absolute discretion, determine whether and the extent to which the Company has achieved or exceeded the Threshold Performance Goal under the 2011 Plan as soon as practicable after the Eligibility Date, in accordance with the same generally accepted
accounting principles that are to be used to prepare the Company&#146;s annual financial statements for Fiscal 2011 that are to be filed with the SEC. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">7. <U>Payment of Bonus Awards</U>. Subject to satisfaction of any conditions or requirements set forth in the 2011 Plan, a Bonus Award determined by the Committee to have been earned by a Plan Participant
will be paid to him or her in cash, less applicable payroll and other withholdings, within thirty (30)&nbsp;days following such determination, but in no event later than the 75th calendar day following the end of fiscal 2011. </FONT></P>
<P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Item&nbsp;9.01</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Financial Statements and Exhibits </B></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="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">(d)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Exhibits</U>. </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD WIDTH="91%"></TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1px solid #000000;width:39pt" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Exhibit&nbsp;No.</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:75pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Description of Exhibit</B></FONT></P></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">99.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Copy of The Coast Distribution System, Inc. 2011 Management Bonus Plan.</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 STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>SIGNATURES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0">

<TR>
<TD WIDTH="48%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2">THE COAST DISTRIBUTION SYSTEM, INC.</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Date: March&nbsp;21, 2011</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;/s/ SANDRA A. KNELL</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sandra A. Knell, Executive Vice President and Chief Financial Officer</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 STYLE="font-family:Times New Roman" SIZE="2">S-1
</FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>INDEX TO EXHIBITS </B></FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD WIDTH="91%"></TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1px solid #000000;width:39pt" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Exhibit&nbsp;No.</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:75pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Description of Exhibit</B></FONT></P></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">99.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Copy of The Coast Distribution System, Inc. 2011 Management Bonus Plan.</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 STYLE="font-family:Times New Roman" SIZE="2">E-1
</FONT></P>

</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>dex991.htm
<DESCRIPTION>COPY OF THE COAST DISTRIBUTION SYSTEM, INC. 2011 MANAGEMENT BONUS PLAN
<TEXT>
<HTML><HEAD>
<TITLE>Copy of The Coast Distribution System, Inc. 2011 Management Bonus Plan</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Exhibit&nbsp;99.1 </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>THE COAST DISTRIBUTION SYSTEM, INC. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>2011 MANAGEMENT BONUS PLAN </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">1. <U>Purposes and Administration of the
Plan</U>. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">1.1 <U>Purposes</U>. The primary purposes of the 2011 Management Bonus Plan (the &#147;<U>2011 Plan</U>) of The
Coast Distribution System, Inc. (the &#147;Company&#148;) are to promote the interests of the Company and its stockholders (i)&nbsp;by providing meaningful incentives and financial awards to Participants in the Plan for making significant
contributions to the achievement, by the Company, of financial or strategic goals and objectives for the fiscal year ending December&nbsp;31, 2011 (&#147;<U>Fiscal 2011</U>&#148;), and (ii)&nbsp;by making a significant portion of the compensation of
each Plan Participant (identified below) for Fiscal 2011 dependent on the Company&#146;s achievement of those goals and objectives. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">1.2 <U>Administration of the 2011 Plan</U>. The 2011 Plan will be administered by the Compensation Committee of the Board of Directors of the Company (the &#147;<U>Committee</U>&#148;). The Committee
shall have the authority to interpret and construe the 2011 Plan and to adopt all necessary rules and regulations for administering the 2011 Plan. All decisions and determinations of the Committee with respect to the 2011 Plan shall be final and
binding on and non-appealable by the Company and the Participants. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">2. <U>Plan Participants</U>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Committee has designated the following executive officers of the Company as the participants in the 2011 Plan (the
&#147;Participants&#148;): </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="68%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="42%"></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD WIDTH="52%"></TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:20pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Name</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="border-bottom:1px solid #000000;width:92pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Position with the Company</B></FONT></P></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">James Musbach</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">President &amp; Chief Executive Officer</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Thomas R. McGuire</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Executive Chairman</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sandra A. Knell</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Executive Vice President &amp; CFO</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dennis Castagnola</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP><FONT STYLE="font-family:Times New Roman" SIZE="2">Executive Vice President &#151; Proprietary&nbsp;Products</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">David A. Berger</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Executive Vice President &#151; Operations</FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">3. <U>Bonus Compensation Awards</U>. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">3.1 <U>Establishment of Bonus Pool</U>. Any Fiscal 2011 bonuses earned under the 2011 Plan will be paid from an executive officer bonus pool (the &#147;Bonus Pool&#148;), the amount of which will be equal
to a percentage, as determined by the Committee, of Coast&#146;s fiscal 2011 earnings before income taxes, calculated before an accrual for any bonuses that might be paid under the 2011 Plan (&#147;Pre-Tax Earnings&#148;); <U>provided</U> that no
bonus pool will be established and no bonuses will be awarded or paid under this Plan unless 2011 Pre-Tax Earnings total at least equal to $1.5&nbsp;million (the &#147;<U>Threshold Performance Goal</U>&#148;). For this purpose, the Company&#146;s
fiscal 2011 Pre-Tax Earnings will be determined in accordance with the same generally accepted accounting principles that are used to prepare the Company&#146;s annual financial statements that are filed with the Securities Exchange Commission
(except for the exclusion of an accrual for bonus awards that may be earned under the 2011 Plan). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">3.2 <U>Bonus Compensation
Awards</U>. On or before the tenth (10th)&nbsp;day following the adoption of this Plan, the Committee will determine the amounts of the bonus compensation awards (&#147;Bonus Awards&#148;) that may be earned by each of the Participants under this
Plan, expressed in dollar amounts or as percentages of each Participant&#146;s annual salary in Fiscal 2011. The Bonus Awards that each Participant will be eligible to earn will be based on a number of factors, which may include the amount of the
Company&#146;s 2011 Pre-Tax Earnings and a Participant&#146;s (i)&nbsp;expected contribution to the Company&#146;s Fiscal 2011 or longer term financial performance, (ii)&nbsp;position and level of responsibilities with the Company, (iii)&nbsp;salary
level, and (iv)&nbsp;past individual performance, or such other factors as the </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 STYLE="font-family:Times New Roman" SIZE="2">99.1-1
</FONT></P>


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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
Committee may deem to be relevant. In no event, however, shall any Participant receive a Bonus Award under the 2011 Plan that will exceed an amount equal to 100% of the Participant&#146;s annual
salary in Fiscal 2011. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">3.3 <U>Determinations of Bonus Awards</U>. As soon as practicable after the Eligibility Date (as
defined in Section&nbsp;4.1 below), the Committee will evaluate the performance of each Participant in Fiscal 2011 and, in its sole and absolute discretion, shall determine the amount of the Bonus Awards (if any) that will be awarded, and paid from
the Bonus Pool, to each Participant pursuant to this Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">3.4 <U>Changes to Performance Goals due to the Occurrence of
Certain Events</U>. At any time prior to the end of Fiscal 2011, the Committee may adjust or change the amount of the Bonus Pool or any Participant&#146;s potential Bonus Award to reflect the occurrence of (i)&nbsp;any extraordinary event,
(ii)&nbsp;any material corporate transactions, (iii)&nbsp;any material changes in corporate capitalization, accounting rules or principles or in the Company&#146;s methods of accounting, (iv)&nbsp;any material changes in applicable law, or
(v)&nbsp;any other material change of similar nature (each, an &#147;<U>Extraordinary Event</U>&#148;), but only if any such Extraordinary Event was not reasonably foreseeable at the time the Bonus Pool amounts and potential bonus awards then in
effect under this Plan were established and would, in the sole opinion of the Committee (x)&nbsp;make it unlikely that the Pre-Tax Earnings Goal will be achieved or (y)&nbsp;result in Pre-Tax Earnings which were not likely to be generated in the
absence of such Extraordinary Event. Notwithstanding the foregoing, however, the occurrence of changes in the competitive environment or changes in economic or market conditions in the Company&#146;s markets, whether or not expected or reasonably
foreseeable, shall not by themselves constitute Extraordinary Events that may be the basis of a change in the amount of the Bonus Pool or in the respective amounts of the respective potential Bonus Awards that could be earned under this Plan by the
Participants. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">4. <U>Conditions Precedent and Payment of Bonus Awards</U>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">4.1 <U>Conditions Precedent</U>. To be eligible to receive a Bonus Award under this Plan, a Participant must be and remain in the
continuous service of the Company or any subsidiary thereof until the earlier of the following dates: (i)&nbsp;December 31, 2011 or (ii)&nbsp;the date on which, if any, that a Change of Control of the Company (as hereinafter defined) is consummated
(the &#147;Eligibility Date&#148;). A Plan Participant that fails to remain in the continuous service of the Company or any subsidiary to and including the Eligibility Date shall not be deemed to have earned and shall not be entitled to receive any
Bonus Award under the 2011 Plan, whether prorated or otherwise. Notwithstanding the foregoing, however, a cessation of a Plan Participant&#146;s continuous service shall not be deemed to have occurred for purposes of this condition by reason of a
leave of absence that has been approved by the Committee. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">4.2 <U>Change of Control</U>. For purposes of this Plan, a
&#147;<U>Change of Control</U>&#148; shall mean and shall be deemed to have occurred on the happening of any of the following: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(a) the acquisition, directly or indirectly, by any &#147;person&#148; or &#147;group&#148; (as those terms are defined in Sections
3(a)(9), 13(d) and 14(d) of the Exchange Act and the rules thereunder) of &#147;beneficial ownership&#148; (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors
(&#147;voting securities&#148;) of the Company that represent more than forty percent (40%)&nbsp;of the combined voting power of the Company&#146;s then outstanding voting securities, other than: (i)&nbsp;an acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any person controlled by the Company or by a trustee or other fiduciary holding securities under any such employee benefit plan (or related trust); or (ii)&nbsp;an acquisition of voting
securities either (A)&nbsp;by the Company, or (B)&nbsp;by a corporation owned, directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Shares of the Company. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%;padding-bottom:0px;"><FONT STYLE="font-family:Times New Roman" SIZE="2">(b) at any time during a period of two (2)&nbsp;consecutive years or less, individuals who at the beginning of such
period comprise the members of the Company&#146;s Board of Directors (and any new directors whose election by the Board or nominee for election to the Board by vote of the Company&#146;s stockholders was approved by a vote of at least two-thirds (<FONT
SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">&nbsp;2</SUP></FONT><FONT SIZE="2">/</FONT><FONT SIZE="1">3</FONT><FONT STYLE="font-family:Times New Roman" SIZE="2">)&nbsp;of the directors then still in office who
either were directors at the beginning of the period or whose election or nomination for election was so approved) cease for any reason (except for death, Disability or voluntary retirement) to constitute a majority of the members of the
Company&#146;s Board of Directors; or </FONT></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(c) the consummation of (i)&nbsp;any merger, consolidation or reorganization of
the Company with or into another corporation or entity, or (ii)&nbsp;any tender or exchange offer for the Company&#146;s outstanding shares, whether or not the Company is the surviving entity in such transaction, unless the persons who were the
</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 STYLE="font-family:Times New Roman" SIZE="2">99.1-2
</FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
beneficial owners of the Company&#146;s outstanding voting securities immediately prior to the consummation of any such transaction, continue to beneficially own, directly or indirectly, in
substantially the same proportions, immediately after the consummation of such transaction, at least a simple majority of the combined voting power of the Company&#146;s voting securities, or the voting securities of the surviving entity in such
transaction in which the Company is not the surviving company, or of the parent of the surviving entity in such transaction (if any); or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">(d) the sale or other disposition of all or substantially all of the assets of the Company in a single or series of related transactions; or </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(e) the approval by the Company&#146;s stockholders of a liquidation or dissolution of the Company or a liquidation of substantially all
of its assets; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(f) occurrence of any transaction or event, or series of transactions or events, designated by the
Company&#146;s Board of Directors (in a resolution duly adopted by it) to constitute a change in the effective control of the business and affairs of the Company, effective as of the date specified in any such resolution. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company&#146;s Board of Directors, by the affirmative vote of a majority of the Outside Directors shall have full and final
authority, which shall be exercised in their discretion, to determine conclusively whether a Change of Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change of Control and any incidental
matters relating thereto. For purposes hereof, the term &#147;Outside Directors&#148; shall mean the members of the Company&#146;s Board of Directors who qualify as &#147;independent directors&#148; within the meaning of the company listing rules of
the American Stock Exchange. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%;padding-bottom:0px;"><FONT STYLE="font-family:Times New Roman" SIZE="2">4.3 <U>Payment of Bonus Awards</U>. Subject to Section&nbsp;4.1 above and
Section&nbsp;5 below, the Company shall pay any Bonus Award earned by a Participant in cash, less applicable payroll and other withholdings, within thirty&nbsp;(30) days following the Committee&#146;s determinations as set forth in Section&nbsp;3.3
above, but in no event later than the 75</FONT><FONT STYLE="font-family:Times New Roman" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">th</SUP></FONT><FONT STYLE="font-family:Times New Roman" SIZE="2"> day following
the end of Fiscal 2011. All payments made by check under the 2011 Plan shall be delivered in person or mailed to the last address of a Participant that is set forth in the records of the Company or shall be deposited to the Participant&#146;s direct
deposit account on file with the payroll department of the Company. Each Participant shall be responsible for furnishing the Company with the Participant&#146;s current address and any changes that may occur therein and, if the Participant desires a
Bonus Award to be deposited in a direct deposit account, the information and authorization required to enable the Company to cause the Award to be deposited into such account. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">5. <U>Amendments to and Termination of 2011 Plan</U>. Notwithstanding anything to the contrary that may be contained elsewhere in this Plan: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">5.1 <U>Amendments to and Modifications of the 2011 Plan</U>. The Committee shall have the sole, absolute and unconditional discretion to
amend or modify the 2011 Plan at any time or from time to time with or without or without notice to the Participants. Without limiting the generality of the foregoing, no Participant shall have any legally binding right to receive any unpaid Bonus
Award under this Plan prior to the date on which that Bonus Award is actually paid to the Participant and, accordingly, the Committee, in the exercise of its sole, absolute and unconditional discretion, at any time prior to the payment of any unpaid
Bonus Award hereunder (i)&nbsp;may reduce the amount of such Bonus Award or (ii)&nbsp;may determine that no Bonus Award will be paid to Participants under this Plan, whether or not the Company has earned or exceeded the Threshold Performance Goal
theretofore established by the Committee or has been notified of the pendency of an unpaid Bonus Award under this Plan. In no event, however, shall any amendment to the 2011 Plan affect any Bonus Awards that had previously been paid to any of the
Participants under this Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">5.2 <U>Compliance with Section&nbsp;409A of the Code</U>. This Plan is intended to comply with
Section&nbsp;409A of the Internal Revenue Code (the &#147;Code&#148;) and any related regulations and guidance promulgated thereunder (&#147;Section&nbsp;409A&#148;) and will be interpreted in a manner intended to comply with Section&nbsp;409A. In
furtherance thereof, no payments may be accelerated under this Plan other than to the extent permitted under Section&nbsp;409A. To the extent that any provision of this Plan violates Section&nbsp;409A such that all or any portion f any Bonus Award
payable to any Participant would be taxable to him or her prior to payment or would otherwise subject a Participant to a penalty tax under Section&nbsp;409A, such provision shall be automatically reformed or stricken to preserve the intent of this
Section&nbsp;5.2. Notwithstanding anything herein to the contrary, (i)&nbsp;if at the time of a Participant&#146;s termination of employment the </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 STYLE="font-family:Times New Roman" SIZE="2">99.1-3
</FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
Participant is a &#147;specified employee&#148; as defined in Section&nbsp;409A and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such
termination of employment is necessary in order to prevent any accelerated or additional tax under Section&nbsp;409A, then the Company shall defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in
such payments or benefits ultimately paid or provided to the Participant) until the first business day following the expiration of a period of six&nbsp;(6) months following the Participant&#146;s termination of employment (or the earliest date as is
permitted under Section&nbsp;409A), and (ii)&nbsp;if any other payments due to a Participant hereunder could cause the application of an accelerated or additional tax under Section&nbsp;409A, such payments or other benefits shall be deferred if
deferral will make such payment compliant under Section&nbsp;409A, or otherwise such payment shall be restructured, to the extent possible, in a manner, as determined by the Committee, that does not cause such an accelerated or additional tax. The
Committee shall implement the provisions of this Section&nbsp;5.2 in good faith; <U>provided</U> that none of the Company, the Committee or its members, or any employees or representatives of the Company or any of its subsidiaries or business units
shall have any liability to the Plan Participants with respect to, or actions taken in furtherance of the purposes or intent of, this Section&nbsp;5.2. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">5.3 <U>Termination of the 2011 Plan</U>. The Committee, in its sole, absolute and unconditional discretion, may (i)&nbsp;terminate this Plan at any time, with or without notice to the Participants, and
(ii)&nbsp;determine that, as a result of such termination, no Bonus Awards under the Plan will be paid or that any unpaid Bonus Awards under the Plan shall be reduced, provided that the action taken by the Committee to terminate or approve the
termination of this Plan takes place prior to the Eligibility Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6. <U>Miscellaneous Provisions in the Plan</U>
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6.1 <U>No Enlargement of Employee Rights</U>. Nothing in the 2011 Plan shall be construed to create or imply any contract of
employment between any Participant and the Company, to confer upon any Participant any right to continue in the employ of the Company or to confer upon the Company any right to require any Participant&#146;s continued employment. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6.2 <U>Rights Not Alienable</U>. Any rights provided to a Participant under the 2011 Plan may not be assigned, transferred or alienated
by a Participant, except by will or pursuant to the laws of descent and distribution, and shall be earned only by and paid solely to or for the account of the Participant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">6.3 <U>Other Compensation Plans</U>. The adoption of the 2011 Plan shall not affect any other compensation plans in effect for the Company, nor shall the 2011 Plan preclude the Company from establishing
or awarding any other forms of compensation for employees, officers or directors of the Company, including the Participants. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6.4 <U>Governing Law</U>. To the extent not preempted by federal law, the 2011 Plan shall be governed by, construed in accordance with
and enforced under the laws of the State of California, without reference to its choice of law rules or principles. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6.5
<U>Limitation of Liability</U>. No member of the Committee shall be liable for any action or determination made in good faith by the Committee with respect to this Plan or any Bonus Award hereunder. No employee of the Company and no member of the
Board of Directors or of the Committee shall be subject to any liability with respect to duties under the Plan, unless the person acts fraudulently or in bad faith. To the extent permitted by law, the Company shall indemnify, to the fullest extent
permitted by law and in excess of any limitation on indemnification that may be set forth in any applicable laws, each member of the Board of Directors and of the Committee, and any employee of the Company, with duties under the 2011 Plan, who was
or is a party, or is threatened to be made a party, to any threatened, pending or completed proceeding, whether civil, criminal, administrative or investigative, by reason of such person&#146;s conduct in the performance of duties under the Plan.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6.6 <U>No Other Understandings or Agreements with respect to the 2011 Plan</U>. This Plan document contains all of the terms
and provisions of and all conditions applicable to the 2011 Plan, and supersedes any previous discussions, communications, understandings or agreements, written or oral, between the Company and any Participant with respect to the 2011 Plan as well
as all prior actions that may have been taken by the Committee relating to the 2011 Plan. </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 STYLE="font-family:Times New Roman" SIZE="2">99.1-4
</FONT></P>

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