Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 83

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 83
---
 the right to exercise the Incentive
Option or vice versa, unless the Stock Appreciation Right, by its terms, meets all of the following requirements:

(i)
the Stock Appreciation Right will expire no later than the Incentive Option;

(ii)
the Stock Appreciation Right may be for no more than the difference between the exercise price of the Incentive Option and the Fair Market
Value of the shares of Common Stock subject to the Incentive Option at the time the Stock Appreciation Right is exercised;

(iii)
the Stock Appreciation Right is transferable only when the Incentive Option is transferable, and under the same conditions;

(iv)
the Stock Appreciation Right may be exercised only when the Incentive Option is eligible to be exercised; and

(v)
the Stock Appreciation Right may be exercised only when the Fair Market Value of the shares of Common Stock subject to the Incentive Option
exceeds the exercise price of the Incentive Option.

Each
Award Agreement for a Stock Appreciation Right granted under this Plan shall designate the number of shares of Common Stock covered thereby,
the strike price per share (which shall not be less than the Fair Market Value of a share of Common Stock as determined on the date of
grant, except a Substitute Award), the date of grant (which may not be prior to the date of the Committee’s approval of the Award),
the expiration date, and such other terms as determined by the Committee in its Discretion. The strike price shall be subject to adjustment
in accordance with the provisions of Section 5.

Upon
exercise of a Stock Appreciation Right, a Participant shall be entitled to receive, without payment to the Company (except for applicable
withholding taxes), an amount equal to the excess of or, in the Discretion of the Committee, a portion of the excess of (A) the then
aggregate Fair Market Value of the number of shares of Common Stock with respect to which the Participant exercises the Stock Appreciation
Right, over (B) the aggregate strike price of the applicable Stock Appreciation Rights so exercised. This amount shall be payable
by the Company, in the Discretion of the Committee, in cash, in shares of Common Stock, in other property or any combination thereof.

(f)
Granting and Exercise of Stock Options and Stock Appreciation Rights. Subject to the provisions of this Section 8, each Stock
Option and Stock Appreciation Right granted hereunder shall become vested and/or exercisable at any such time or times