Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 32

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 32
---
 cause this limitation to be exceeded in any particular year.

The foregoing general tax discussion is intended
for the information of shareholders considering how to vote with respect to this proposal and not as tax guidance to Participants in the
2025 Equity Plan. Different tax rules may apply to specific Participants and transactions under the 2025 Equity Plan.

WITHHOLDING PAYMENTS

If, upon the grant, exercise, release of restrictions
or settlement of or in respect of an Award, or upon any other event or transaction under or relating to the 2025 Equity Plan, the Company
or a Subsidiary must pay any amounts for income or employment tax withholding, in the Committee’s discretion, either the Company
will appropriately reduce the amount of Common Stock, cash or other property to be paid to the Participant or the Participant must pay
such amount to the Company or Subsidiary to enable the Company or a Subsidiary to pay, or reimburse the Company or Subsidiary for paying,
such income or employment tax withholding. The Committee may, in its discretion, permit the Participant to satisfy such withholding obligations,
in whole or in part, by (i) electing to require the Participant to make a cash payment to the Company in an amount equal to any such
withholding tax obligation, (ii) electing to reduce the number of shares of Common Stock delivered or deliverable by the Company in respect
of an Award, (iii) electing to tender shares of Common Stock back to the Company subsequent to receipt of such shares of Common Stock
in respect of an Award, or (iv) in the case of a Regulation T Stock Option Exercise, irrevocably instructing the stock broker to
promptly deliver (in addition to the exercise price) an amount equal to such withholding tax owing in respect of such Stock Option exercise
from the proceeds of the stock broker’s sale of or loan against some or all of the shares of Common Stock. The Company or any of
its Subsidiaries also has the right to withhold the amount of such taxes from any other sums or property due or to become due to the Participant
upon such terms and conditions as the Committee will prescribe. The Company may also defer issuance of shares of Common Stock under the
2025 Equity Plan until payment by the Participant to the Company or any of its Subsidiaries of the amount of any such tax. The amount
withheld by the Company may not exceed the Participant’s total maximum statutory tax withholding obligations associated with the