<SUBMISSION>
<ACCESSION-NUMBER>0001193125-14-112259
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20140318
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20140324
<DATE-OF-FILING-DATE-CHANGE>20140324
<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>14713210
</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>d697811d8k.htm
<DESCRIPTION>8-K
<TEXT>
<HTML><HEAD>
<TITLE>8-K</TITLE>
</HEAD>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM 8-K
</B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section&nbsp;13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of The Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported): March&nbsp;18, 2014 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>THE COAST DISTRIBUTION SYSTEM, INC. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>1-9511</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>94-2490990</B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>of incorporation)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File Number)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>350 Woodview Avenue,</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Morgan Hill, California</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>95037</B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"><B>(Address of principal executive offices)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>(Zip Code)</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code: (408)&nbsp;782-6686 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>N/A </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former name or
former address, if changed since last report.) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">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: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;5.02</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B><I>Adoption of Compensatory Plan for Executive Officers </I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On March&nbsp;18, 2014, the Compensation Committee of the Company&#146;s Board of Directors adopted a management cash bonus plan for the
Company&#146;s fiscal year ending December&nbsp;31, 2014 (the &#147;2014 Plan&#148;). Set forth below is a summary of the material terms of that Plan. The summary is qualified in its entirety by reference to the 2014 Plan, a copy of which is
attached as Exhibit&nbsp;99.1 to this Report. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><U>Purpose of the Cash Bonus Plan</U>. The primary purpose of the 2014 Plan is to promote
the interests of the Company and its stockholders by (i)&nbsp;providing meaningful financial incentives, in the form of cash bonuses, for the Company&#146;s executive officers and certain key management employees participating in the Plan to make
significant contributions to the achievement, by the Company, of financial goals for the Company&#146;s fiscal year ending December&nbsp;31, 2014 (&#147;fiscal 2014&#148;), and (ii)&nbsp;making a significant portion of each Plan participant&#146;s
cash compensation for fiscal 2014 dependent on the Company&#146;s achievement of those goals. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><U>Plan Participants</U>. The Compensation
Committee has designated the following executive officers as participants in the 2014 Plan: James Musbach, the Company&#146;s President and Chief Executive Officer; Sandra A. Knell, Executive Vice President and Chief Financial Officer; Dennis
Castagnola, Executive Vice President &#150; Proprietary Products; and David Berger, Executive Vice President &#150; Operations (the &#147;Plan Participants&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><U>Administration of the 2014 Plan</U>. The 2014 Plan will be administered and all decisions and determinations with respect to the Plan will
be made by the Compensation Committee. All of the members of the Compensation Committee are independent directors of the Company. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><U>Summary of Bonus Compensation Opportunities and Awards</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1. <U>Financial Performance Requirement</U>. The amount of the bonus award that each Plan participant can earn under the 2014 Plan will be
determined on the basis of the Company&#146;s fiscal 2014 earnings before income taxes, excluding accruals for any 2014 Bonus Plan awards (&#147;Adjusted Pretax Earnings&#148;). However, no bonuses will be awarded or paid under the 2014 Plan unless
the Company&#146;s Adjusted Pretax Earnings in fiscal 2014 equals or exceeds a minimum financial performance goal under the 2014 Plan as determined by the Compensation Committee on the basis of the Company&#146;s Board-approved fiscal 2014 operating
budget (the &#147;Threshold Performance Goal&#148;). If the Threshold Performance Goal is achieved or exceeded, the amount of each Participant&#146;s bonus award will range from 10% up to a maximum of 50% of the Participant&#146;s 2014 annual base
salary, depending on the amount of the Company&#146;s fiscal 2014 Adjusted Pre-Tax Earnings. The determination of the Company&#146;s Adjusted Pretax Earnings will be made on the basis of the Company&#146;s fiscal 2014 consolidated financial
statements. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2. <U>Bonus Opportunities</U>. The Committee has established the following respective Threshold and Maximum Bonus Award
opportunities, under the 2014 Plan, for each Plan Participant, in each case expressed as a percentage of his or her annual base salary for fiscal 2014: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


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<TD></TD>
<TD></TD>
<TD></TD>
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<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="6" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Bonus Awards as a<BR>Percentage&nbsp;of&nbsp;2014&nbsp;Annual&nbsp;Salary</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:99.20pt; font-size:8pt; font-family:Times New Roman"><B>Fiscal 2014 Plan Participants</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Threshold<BR>Bonus&nbsp;Award</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Maximum<BR>Bonus&nbsp;Award</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">James Musbach, President&nbsp;&amp; CEO</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">15.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">50.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Sandra A. Knell, Executive V.P.&nbsp;&amp; Chief Financial Officer</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">45.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Dennis Castagnola, Executive V.P. &#150; Proprietary Products</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">45.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">David Berger, Executive V.P. &#150; Operations</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">10.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">45.0</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If the 2014 Threshold Performance Goal is achieved, but not exceeded, then each Plan Participant
could earn the Threshold Bonus Award that will be determined by multiplying his or her annual base salary by the Threshold Award Percentage set forth opposite his or her name in the above table. If, on the other hand, the Threshold Performance Goal
is exceeded, then, depending on the extent to which the Threshold Performance Goal is exceeded, the Plan Participants could earn bonus awards under 2014 Plan as follows: (i)&nbsp;in the case of the Company&#146;s CEO, ranging from approximately 16%
to the maximum of 50% of his 2014 annual base salary and (ii)&nbsp;in the case of each of the other three Plan Participants, from a minimum of approximately 11% to a maximum of 45% of his or her respective 2014 annual base salary, in each case based
on the extent to which the Threshold Performance Goal was exceeded. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3. <U>Conditions to the Awarding and Receipt of Bonus Awards</U>. To
be eligible to receive a bonus award under the Plan, a Participant must remain in the Continuous Service of the Company (as defined in the Plan) until the earlier of the following dates: (i)&nbsp;December 31, 2014 or (ii)&nbsp;the date on which, if
any, that a Change of Control of the Company (as defined in the Plan) 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 2014 Plan, whether prorated or otherwise. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4. <U>Determination of Amounts of Bonus Awards</U>. The Compensation
Committee will determine whether and the extent to which the Company has achieved or exceeded the Threshold Performance Goal under the 2014 Plan as soon as practicable after the Eligibility Date, but in no event later than the 75th calendar day
following the end of fiscal 2014. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5. <U>Changes to Financial Performance Goal due to Extraordinary Events</U>. The Compensation Committee
may adjust or change the respective amounts of the Participants Potential Bonus Awards 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 potential bonus awards under the Plan were established by the Compensation Committee and the Compensation Committee determines, in its sole judgment, that
(x)&nbsp;the Threshold Performance Goal would not have been achieved but for the occurrence of such Extraordinary Event, or (y)&nbsp;but for the occurrence of such Extraordinary Event the Threshold Performance Goal would have been achieved. The 2014
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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6. <U>Amendments to or Termination of 2014 Plan</U>. The
2014 Plan may be amended or terminated by action of the Compensation Committee at any time prior to the close of business on the Eligibility Date. 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 2014 Plan may be changed and a Participant&#146;s rights under the 2014 Plan may be modified or altogether terminated by the Compensation Committee, in its sole and absolute discretion. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7. <U>Payment of Bonus Awards</U>. Subject to satisfaction of any conditions or requirements set forth in the 2014 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 by no later than the 75th calendar day following the end of fiscal 2014. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;9.01</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Financial Statements and Exhibits </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top"><U>Exhibit</U>. </TD></TR></TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1.00pt solid #000000; width:25.30pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit<BR>No.</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:75.45pt; font-size:8pt; font-family:Times New Roman"><B>Description of Exhibit</B></P></TD></TR>


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<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">The Coast Distribution System, Inc. 2014 Management Cash Bonus Plan.</TD></TR>
</TABLE></DIV>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%"></TD>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3">THE COAST DISTRIBUTION SYSTEM, INC.</TD></TR>
<TR>
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<TD VALIGN="top">Date: March&nbsp;24, 2014</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">By:</TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ SANDRA A. KNELL</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">Sandra A. Knell,</TD></TR>
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<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT STYLE="font-size:8pt">&nbsp;</FONT></TD>
<TD VALIGN="bottom">Executive Vice President and Chief Financial Officer</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">S-1 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>INDEX TO EXHIBITS </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="92%"></TD></TR>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="border-bottom:1.00pt solid #000000; width:25.30pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit<BR>No.</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:75.45pt; font-size:8pt; font-family:Times New Roman"><B>Description of Exhibit</B></P></TD></TR>


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<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">The Coast Distribution System, Inc. 2014 Management Cash Bonus Plan.</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">E-1 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit&nbsp;99.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>THE COAST DISTRIBUTION SYSTEM, INC. </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2014 MANAGEMENT CASH BONUS PLAN </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"><U>Introduction and Definition of Certain Terms used in this Plan</U>. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.1 <U>Adoption of 2014
Bonus Plan</U>. On and effective March&nbsp;18, 2014, the Compensation Committee of the Board of Directors (the &#147;<U>Committee</U>&#148;) of The Coast Distribution System, Inc., a Delaware corporation (the &#147;<U>Company</U>&#148;), adopted
this Management Cash Bonus Plan for its fiscal year ending December&nbsp;31, 2014 (the &#147;<U>2014 Plan</U>&#148; or this &#147;<U>Plan</U>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.2 <U>Certain Definitions</U>. For purposes of this Plan, the following terms shall have the respective meanings set forth below: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a) &#147;<U>Fiscal 2014</U>&#148; shall mean the year ending on December&nbsp;31, 2014. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b) &#147;<U>Adjusted Pretax Earnings</U>&#148; shall mean the Company&#146;s pretax earnings in Fiscal 2014, calculated in accordance with
the generally accepted accounting principles followed by the Company in the preparation of its financial statements, less any accruals made for any Bonus Awards that are expected to become payable under this 2014 Plan. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(c) &#147;<U>Bonus Award</U>&#148; shall mean the amount of any cash bonus compensation that is awarded to a Plan Participant under and
pursuant to the terms and subject to the conditions set forth in this Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(d) <U>Change of Control</U>. 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: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(i) 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: (A)&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 (B)&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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(ii) 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 (2/3)&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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(iii) the consummation of (A)&nbsp;any merger, consolidation or reorganization of the Company with or into another corporation or entity, or
(B)&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 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). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(iv) the sale or other disposition of all or substantially all of the assets of the Company in a single or series
of related transactions. </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(e) &#147;<U>Continuous Service of the Company</U>&#148; means the employment of a Participant by
either the Company or any subsidiary thereof which is uninterrupted except for vacations, illnesses (other than permanent disability, as defined in Section&nbsp;22(e)(3) of the Internal Revenue Code), or leaves of absence which are approved in
writing by the Compensation Committee. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(f) &#147;<U>Eligibility Date</U>&#148; shall mean (i)&nbsp;December&nbsp;31, 2014, or
(ii)&nbsp;the date on which, if any, that a Change of Control of the Company is consummated, whichever occurs first. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(g)
&#147;<U>Determination Date</U>&#148; shall mean the date on which the Compensation Committee determines the amount of each Plan Participant&#146;s Bonus Award (if any). In no event shall the Determination Date be later than the 75th calendar day
following the last day of Fiscal 2014. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(h) &#147;<U>Fiscal 2014 Budget</U>&#148; shall mean the Company&#146;s Fiscal 2014 operating
budget that has been approved by the Company&#146;s Board of Directors. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(i) &#147;<U>Independent Directors</U>&#148; shall mean members
of the Company&#146;s Board of Directors who qualify as &#147;independent directors&#148; as defined in the listing rules of the American Stock Exchange. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(j) &#147;<U>Potential Bonus Award</U>&#148; shall mean the amounts of the Bonus Awards which a Plan Participant can earn under the 2014 Plan
pursuant to the terms and subject to the satisfaction of the conditions set forth in this Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.3 <U>Rules of
Interpretation</U><B><I>.</I></B> For purposes of interpreting the provisions of this Plan: (i)&nbsp;the word &#147;or&#148; will not be deemed exclusive; (ii)&nbsp;the word &#147;include&#148; and its correlatives will mean &#147;including without
limitation&#148;; (iii)&nbsp;terms that imply gender will include all genders; (iv)&nbsp;defined terms will have their meanings in both the plural and singular cases; (v)&nbsp;the terms &#147;hereof&#148;, &#147;herein&#148;, &#147;hereunder&#148;,
&#147;hereto&#148;, &#147;hereafter&#148; and &#147;hereinafter&#148; and any similar terms shall refer to this Plan as a whole and not to the particular section, paragraph or clause where any such term appears, unless the context clearly indicates
otherwise; and (vi)&nbsp;the section and paragraph headings in this Plan are for convenience of reference only and will not limit or otherwise affect the interpretation or application of any of the terms or provisions of this Plan. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><U>Purposes and Administration of the Plan</U>. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.1 <U>Purposes</U>. The primary purposes of
the 2014 Plan are (i)&nbsp;to provide meaningful incentives, in the form of cash awards, to Participants in the Plan for making significant contributions to the Company&#146;s achievement, in Fiscal 2014, of one or more financial goals as determined
by the Committee (each, a &#147;<U>Performance Goal</U>&#148;), and (ii)&nbsp;to make a significant portion of each Plan Participant&#146;s cash compensation for Fiscal 2014 dependent on the Company&#146;s achievement of such Performance Goal or
Goals and, thereby, to promote the interests of and to benefit the Company and its stockholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2.2 <U>Administration of the 2014
Plan</U>. The 2014 Plan will be administered by the Compensation Committee, which shall have the authority to interpret and construe the 2014 Plan and to adopt all necessary rules and regulations for administering the 2014 Plan. All decisions and
determinations of the Committee with respect to the 2014 Plan or any Bonus Awards shall be final and binding on and non-appealable by the Company and the Participants. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"><U>Plan Participants</U>. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Committee has designated the following executive officers of the
Company as participants in the 2014 Plan (&#147;<U>Plan Participants</U>&#148;): </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="68%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="39%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="57%"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1.00pt solid #000000; width:20.00pt; font-size:8pt; font-family:Times New Roman"><B>Name</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Positions with Company</B></P></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">James&nbsp;Musbach</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">President &amp; Chief Executive Officer</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Sandra&nbsp;A.&nbsp;Knell</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Executive Vice President &amp; CFO</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Dennis&nbsp;Castagnola</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Executive Vice President &#151; Proprietary Products</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">David&nbsp;A.&nbsp;Berger</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Executive Vice President &#151; Operations</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


<p Style='page-break-before:always'>
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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top"><U>Bonus Compensation Awards</U>. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.1 <U>Performance Goals</U>. The Committee has determined
that the Potential Bonus Awards that Plan Participants can earn under this Plan will be based on the Company&#146;s Fiscal 2014 Adjusted Pretax Earnings, <U>provided</U> that no Bonus Award will be earned by or paid to any Participant under this
Plan unless the Company&#146;s Fiscal 2014 Adjusted Pretax Earnings are equal to at least a minimum dollar amount as determined by the Committee on the date of the adoption of this Plan (the &#147;Threshold Performance Goal&#148;). </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.2 <U>Determination of Bonus Awards</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a) <U>Potential Bonus Awards</U>. Immediately following the adoption of this Plan, the Committee will determine the amounts of the Potential
Bonus Awards that may be earned by each Plan Participant, expressed as a percentage of each Participant&#146;s annual base salary for Fiscal 2014 (the &#147;<U>Bonus Award Percentages</U>&#148;). The Potential Bonus Award Percentages of each
Participant, which may vary between Participants, may be based on a number of factors deemed relevant by the Committee, including the Company&#146;s 2014 Adjusted Pretax Earnings, as set forth in the Company&#146;s Fiscal 2014 Budget, and a
Participant&#146;s (i)&nbsp;expected contribution to the Company&#146;s Fiscal 2014 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 Committee may deem to be relevant. However, the maximum bonus awards that may be earned under the 2014 Plan shall not exceed (i)&nbsp;50% of base annual base salary in the case of James Musbach, and
(ii)&nbsp;45% of the annual base salary in the case of each of the other three Plan Participants (the &#147;<U>Maximum Bonus Awards</U>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b) <U>Determination of Bonus Awards</U>. As soon as practicable after the Eligibility Date, but in no event later than the 75th calendar day
following the end of Fiscal 2014, the Committee will determine, in accordance with the terms and conditions of this Plan, the amount of the Bonus Award (if any) that each Participant has earned under this Plan. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4.3 <U>Changes to Performance Goals due to the Occurrence of Certain Events</U>. At any time prior to the end of Fiscal 2014, the Committee
may adjust or change the amount of 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 this Plan was adopted and the Potential Bonus Awards were established and the Compensation Committee determines, in its sole judgment, that
(x)&nbsp;the Threshold Performance Goal would not have been achieved but for the occurrence of such Extraordinary Event, or (y)&nbsp;but for the occurrence of such Extraordinary Event, the Threshold Performance Goal would have been achieved.
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 respective amounts of the Potential Bonus Awards that could be earned by the Plan Participants under this Plan. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">5.</TD>
<TD ALIGN="left" VALIGN="top"><U>Conditions Precedent and Payment of Bonus Awards</U>. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5.1 <U>Conditions Precedent</U>.
Notwithstanding anything to the contrary that may be contained elsewhere in this Plan: (i)&nbsp;to be eligible to receive a Bonus Award under this Plan, a Participant must be and remain in the Continuous Service of the Company to and including the
Eligibility Date and (ii)&nbsp;a Plan Participant that fails to remain in the Continuous Service of the Company 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
2014 Plan, whether prorated or otherwise. Whether or not a Participant has satisfied this condition shall be determined by and in the sole and absolute discretion of the Committee, which determinations shall be binding on, and not appealable by, the
Company or any of the Plan Participants. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5.2 <U>Payment of Bonus Awards</U>. Subject to Section&nbsp;5.1 above and Section&nbsp;6 below,
the Company shall pay any Bonus Award earned by a Participant under this Plan in cash, less applicable payroll and other withholdings by no later than the 75<SUP STYLE="font-size:85%; vertical-align:top">th</SUP> day following the end of Fiscal
2014. All payments made by check under the 2014 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 </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
responsible for furnishing the Company with the Participant&#146;s current address and any changes that may occur therein and, if the Participant desires his or her Bonus Award to be deposited in
a direct deposit account, the information and authorization required to enable the Company to cause the Bonus Award to be deposited into such account. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">6.</TD>
<TD ALIGN="left" VALIGN="top"><U>Amendments to and Termination of 2014 Plan</U>. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding anything to the contrary
that may be contained elsewhere in this Plan: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.1 <U>Amendments to and Modifications of the 2014 Plan</U>. The Committee shall have the
sole, absolute and unconditional discretion to amend or modify the 2014 Plan at any time or from time to time prior to the Eligibility Date with or without notice to the Plan Participants, <U>provided</U>, <U>however</U>, that the Committee shall
not be entitled to extend the Eligibility Date or the Determination Date beyond the dates set forth in Sections 1.2(f) and (g)&nbsp;of this Plan, respectively. Without limiting the generality of the foregoing, no Participant shall become entitled to
receive any unpaid Bonus Award under this Plan prior to the Eligibility Date, and then only if he or she is still in the Continuous Service of the Company on that date, and, accordingly, the Committee, in the exercise of its sole, absolute and
unconditional discretion, may at any time prior thereto (i)&nbsp;reduce the amount of such Bonus Award or (ii)&nbsp;determine that no Bonus Award will be paid to any Participant under this Plan, irrespective of whether or not the Company has
achieved or exceeded the Threshold Performance Goal theretofore established by the Committee. Absent a manifest error in the determination of the amount of any Participant&#146;s Bonus Award, in no event shall any amendment to the 2014 Plan affect
any Bonus Award that had previously been determined by the Committee to have been earned by any of the Participants under this Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.2
<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 of 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;6.2. Notwithstanding anything herein to the contrary, (i)&nbsp;if at the time of a Participant&#146;s termination of
employment the 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 under this Plan 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 or
cause to be implemented the provisions of this Section&nbsp;6.2 in good faith; <U>provided</U> that none of the Company, no member of the Company&#146;s Board of Directors or the Committee, or any employees or representatives of the Company or any
of its subsidiaries or business units shall have any liability to any of the Plan Participants with respect to, or actions taken in furtherance of the purposes or intent of, this Section&nbsp;6.2. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.3 <U>Termination of the 2014 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. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">7.</TD>
<TD ALIGN="left" VALIGN="top"><U>Miscellaneous Provisions of the Plan</U>. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.1 <U>No Enlargement of Employee Rights</U>.
Nothing in the 2014 Plan shall be construed to create or imply any contract of employment between any Plan 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 with the Company. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.2 <U>Rights Not Alienable</U>. Any rights or benefits provided to a Participant under the 2014
Plan may not be assigned, transferred or alienated by a Participant, except by will or pursuant to the laws of descent and distribution, and in the absence of a Participant&#146;s death, shall be earned only by and paid solely to or for the account
of the Participant. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.3 <U>Other Compensation Plans</U>. The adoption of the 2014 Plan shall not affect any other compensation plans in
effect for the Company, nor shall the 2014 Plan preclude the Company from establishing or awarding any other forms of compensation for employees, officers or directors of the Company, including the Participants. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.4 <U>Governing Law</U>. To the extent not preempted by federal law, the 2014 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.5 <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 such person&#146;s duties under the Plan, unless the person has acted fraudulently or in bad faith. To the maximum extent permitted by law, the Company shall indemnify each member
of the Board of Directors and each member of the Committee, and any employee of the Company with duties under the 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 position with the Company or membership on the Board of Directors or Committee or such person&#146;s conduct in the performance of any duties such person may have under or
with respect to the Plan. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.6 <U>No Other Understandings or Agreements with respect to the 2014 Plan</U>. This Plan document contains all
of the terms and provisions of and all conditions applicable to the 2014 Plan, and supersedes any contemporaneous or prior discussions, communications, understandings or agreements, written or oral, between the Company and any Plan Participant with
respect to the 2014 Plan as well as all prior actions that may have been taken by the Committee relating to the 2014 Plan. In addition, the terms and conditions of the 2014 Plan shall not be affected by any disclosures the Company may make with
respect to the Plan in any filings it may make with the Securities and Exchange Commission. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">##### </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>

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