Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 29

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 29
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 approve such supplements to, or amendments,
restatements or alternative versions of, the 2025 Equity Plan as it determines is necessary or appropriate for such purposes. Any such
amendment, restatement or alternative versions that the Committee approves for purposes of using the 2025 Equity Plan in a foreign country
will not affect the terms of the 2025 Equity Plan for any other country. In addition, all such supplements, amendments, restatements or
alternative versions must comply with the provisions of the 2025 Equity Plan.

FEDERAL INCOME TAX CONSEQUENCES

The rules governing the tax treatment of Stock
Options, SARs, Restricted Stock, RSUs, PSUs and Performance Stock and Other Stock-Based Awards, including treatment of stock acquired
upon the exercise of a Stock Option or SAR, and the receipt or release from restriction of PSUs and Performance Stock or other Awards,
are quite technical. Therefore, the description of the tax consequences set forth below is necessarily general in nature and does not
purport to be complete. Moreover, the statutory provisions are subject to change, as are their interpretations, and their application
may vary in individual circumstances. Finally, the tax consequences under applicable state and local income tax laws may not be the same
as under the federal income tax laws.

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Incentive Stock Options granted pursuant to the
2025 Equity Plan are intended to qualify as “incentive stock options” within the meaning of Section 422 of the Code.
If the Participant makes no disposition of the shares acquired pursuant to exercise of an Incentive Stock Option within one year after
the transfer of shares to such Participant and within two years from the grant of the Stock Option, the Participant will realize no taxable
income as a result of the grant or exercise of such Incentive Stock Option (except that the alternative minimum tax may apply), and any
gain or loss that is subsequently realized upon disposition may be treated as long-term capital gain or loss, as the case may be. Under
these circumstances, the Company will not be entitled to a deduction for federal income tax purposes with respect to either the issuance
of such Incentive Stock Options or the transfer of shares upon their exercise.

If shares subject to Incentive Stock Options are
disposed of prior to the expiration of the above time periods, the Participant will recognize ordinary income in the year in which the
disqualifying disposition occurs, the amount of which generally will be the lesser of (i) the excess of