Cobra Electronics (COBR)

Savings Plan

Under our Cobra Electronics Corporation Profit Sharing and 401(k) Incentive Savings Plan (the “Savings Plan”), a tax-qualified retirement savings plan, participating employees, including our NEOs, may contribute up to 75% of their base salaries on a before-tax basis, up to the yearly statutory maximum, into their Savings Plan accounts. In addition, under the Savings Plan, we match an amount equal to $.50 for every $1.00 contributed by the participant up to 6% of each participant’s contribution, not to exceed the statutory maximum. Amounts held in Savings Plan accounts may not be withdrawn prior to the employee’s termination of employment, death or disability or such earlier time as the employee reaches the age of 59 ¹/2, subject to certain exceptions set forth in the regulations of the IRS.

Pursuant to IRS rules, effective for 2008, the Savings Plan limits the “annual additions” that can be made to a participating employee’s account to $46,000 per year. “Annual additions” include our matching contributions, before-tax contributions made by us at the request of the participating employee under Section 401(k) of the Internal Revenue Code, and employee after-tax contributions.

Of those annual additions, the current maximum before-tax contribution is $15,500 per year. In addition, no more than $230,000 of annual compensation may be taken into account in computing benefits under the Savings Plan.

Participants age 50 and over may also contribute, on a before-tax basis, and without regard to the $46,000 limitation on annual additions or the $15,500 general limitation on before-tax contributions, catch-up contributions of up to $5,000 per year.

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The Savings Plan also allows the Company to make discretionary profit sharing contributions to the Savings Plan for the benefit of participating employees, including our NEOs, for any calendar year in an amount determined by the Board of Directors. Whether or not the Board of Directors makes a discretionary contribution and the size of such contribution is dependent upon the performance of the Company. A participant’s share of the discretionary contribution is determined pursuant to that participant’s eligible wages for the calendar year as a percentage of eligible wages for all participants for the calendar year. In 2008, the Board of Directors did not make a discretionary profit sharing contribution to the Savings Plan.

We maintain the Savings Plan for our employees, including our NEOs, because we wish to encourage our employees to save some percentage of their cash compensation for their eventual retirement. The Savings Plan permits employees to make such savings in a manner that is relatively tax efficient.

Savings Plan

Under our Cobra Electronics Corporation Profit Sharing and 401(k) Incentive Savings Plan (the “Savings Plan”), a tax-qualified retirement savings plan, participating employees, including our NEOs, may contribute up to 75% of regular earnings on a before-tax basis, up to the yearly statutory maximum, into their Savings Plan accounts. In addition, under the Savings Plan, we match an amount equal to $.50 for every $1.00 contributed by the participant up to 6% of eligible compensation, not to exceed the statutory maximum. Amounts held in Savings Plan accounts may not be withdrawn prior to the employee’s termination of employment, death or disability or such earlier time as the employee reaches the age of 59 ¹/2, subject to certain exceptions set forth in the regulations of the IRS.

Pursuant to IRS rules, effective for 2007, the Savings Plan limits the “annual additions” that can be made to a participating employee’s account to $45,000 per year. “Annual additions” include our matching contributions, before-tax contributions made by us at the request of the participating employee under Section 401(k) of the Internal Revenue Code, and employee after-tax contributions.

Of those annual additions, the current maximum before-tax contribution is $15,500 per year. In addition, no more than $225,000 of annual compensation may be taken into account in computing benefits under the Savings Plan.

Participants age 50 and over may also contribute, on a before-tax basis, and without regard to the $45,000 limitation on annual additions or the $15,500 general limitation on before-tax contributions, catch-up contributions of up to $5,000 per year.

The Savings Plan also allows the Company to make discretionary profit sharing contributions to the Savings Plan for the benefit of participating employees, including our NEOs, for any calendar year in an amount determined by the Board of Directors. Whether or not the Board of Directors makes a discretionary contribution and the size of such contribution is dependent upon the performance of the Company. A participant’s share of the discretionary contribution is determined pursuant to that participant’s eligible wages for the calendar year as a percentage of eligible wages for all participants for the calendar year. In 2007, the Board of Directors did not make a discretionary profit sharing contribution to the Savings Plan.

We maintain the Savings Plan for our employees, including our NEOs, because we wish to encourage our employees to save some percentage of their cash compensation for their eventual retirement. The Savings Plan permits employees to make such savings in a manner that is relatively tax efficient.

Savings Plan

Under our Cobra Electronics Corporation Profit Sharing and 401(k) Incentive Savings Plan (the “Savings Plan”), a tax-qualified retirement savings plan, participating employees, including our NEOs, may contribute up to 75 percent of regular earnings on a before-tax basis, up to the yearly statutory maximum, into their Savings Plan accounts. In addition, under the Savings Plan, we match an amount equal to $.50 for every $1.00 contributed by the participant up to 6% of earnings, not to exceed the statutory maximum. Amounts held in Savings Plan accounts may not be withdrawn prior to the employee’s termination of employment, death or disability or such earlier time as the employee reaches the age of 59  ¹/2, subject to certain exceptions set forth in the regulations of the IRS.

Pursuant to IRS rules, effective for 2006, the Savings Plan limits the “annual additions” that can be made to a participating employee’s account to $44,000 per year. “Annual additions” include our matching contributions, before-tax contributions made by us at the request of the participating employee under Section 401(k) of the Internal Revenue Code, and employee after-tax contributions.

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Of those annual additions, the current maximum before-tax contribution is $15,000 per year. In addition, no more than $220,000 of annual compensation may be taken into account in computing benefits under the Savings Plan.

Participants age 50 and over may also contribute, on a before-tax basis, and without regard to the $44,000 limitation on annual additions or the $15,000 general limitation on before-tax contributions, catch-up contributions of up to $5,000 per year.

We maintain the Savings Plan for our employees, including our NEOs, because we wish to encourage our employees to save some percentage of their cash compensation for their eventual retirement. The Savings Plan permits employees to make such savings in a manner that is relatively tax efficient.