Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 23

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 23
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 or an additional right. The exercise of a SAR granted as an alternative right will terminate the Stock Option to the extent of the
number of shares with respect to which the SAR is exercised and vice versa. For SARs granted as an additional right, both the SAR and
the Stock Option may be exercised. Upon exercise of a SAR, a Participant is generally 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 (i) the then aggregate Fair Market Value of the number of shares of Common Stock with respect to which the Participant exercises the
SARs, over (ii) the aggregate strike price of the applicable SARs so exercised. This amount may be payable by the Company, in the discretion
of the Committee, in cash, in shares of Common Stock, in property or any combination thereof.

The Committee may, in its discretion, condition
the exercise of a Stock Option or SAR on the attainment of one or more performance goals over a performance period prescribed by the Committee,
in addition to or in lieu of conditioning the release of restrictions on the continued employment or service of the Participant.

If not sooner terminated, each Stock Option and
SAR granted under the 2025 Equity Plan will expire not more than 10 years from the date of grant, or for an Incentive Stock Option, five
years for a Participant owning 10% or more of the total combined voting stock of the Company or any parent or Subsidiary.

The 2025 Equity Plan prohibits direct repricings
(lowering the exercise price of a Stock Option or the strike price of a SAR) and indirect repricings (cancelling an outstanding Stock
Option or SAR and granting a replacement or substitute Stock Option or SAR with a lower exercise or strike price, or otherwise exchanging
such Awards for cash or another Award) without shareholder approval.

Restricted Stock and Restricted Stock Units (“RSUs”)

The Committee may grant Restricted Stock or RSUs
to a Participant with respect to a specified number of shares of Common Stock or their cash equivalent (or both). Restricted Stock and
RSUs will have an established restriction period that may differ for each Participant and with respect to all or any portion of the same
Award. Participants are entitled to all dividend and voting rights, as well as other rights of a shareholder, with respect to Restricted
Stock. No Participant will have the rights of a shareholder with respect