Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 21

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 21
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of SARs, to the extent that the number of reserved shares of Common Stock exceeds the number of shares of Common Stock actually issued
upon the exercise of the SARs; (iii) shares of Common Stock withheld by, or otherwise remitted to, the Company to satisfy a Participant’s
tax withholding obligations upon the exercise of, or upon the lapse of restrictions on or settlement of, an Award; and (iv) shares of
Common Stock repurchased on the open market with the proceeds of a Stock Option exercise.

STOCK DIVIDENDS, DISTRIBUTIONS, STOCK SPLITS,
RECAPITALIZATIONS, AND SIMILAR EVENTS

In the event that the Committee determines that,
as a result of any stock dividends, extraordinary dividends or distributions (whether in cash, shares, or other property, other than a
regular cash dividend), stock splits, recapitalizations, mergers, consolidations, split-up, spin-off, combinations, exchanges of shares
or reorganizations of or by the Company, an adjustment is appropriate in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the 2025 Equity Plan, then the Committee will adjust equitably any or all of: (i) the number
of shares of Common Stock with respect to each outstanding Award; (ii) the exercise price per share with respect to outstanding Stock
Options; (iii) the strike price with respect to outstanding SARs; and (iv) the Share Limit in aggregate and to an individual Participant
during the term of the 2025 Equity Plan. The adjusted Awards will be subject to the same restrictions and conditions applicable to the
original Award.

AWARDS

Awards granted under the 2025 Equity Plan will
be evidenced by an Award Agreement, which will be in accordance with the 2025 Equity Plan and may include such additional provisions and
restrictions as determined by the Committee; provided that such additional provisions and restrictions do not violate the terms of the
2025 Equity Plan. Subject to the terms of the 2025 Equity Plan, the Committee may grant a Participant one or more of the following Awards
and any combination thereof:

Stock Options and Stock Appreciation Rights (“SARs”)

The Committee in its discretion may grant either
Stock Options meeting the definition of incentive stock options under Section 422 of the Code (“Incentive Stock Options”)
or nonqualified stock options not meeting such definition (“Nonqualified Stock Options”), or any combination thereof. Incent