Company: CPSS
Filing Date: 2025-12-10
Form Type: S-8
Source: 0001683168-25-009043
Chunk: 3

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-12-10
Form: S-8
Chunk 3
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 agent of the corporation, as the term “agent” is defined in section 317(a) of the California
Code, against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding
if such person acted in good faith and in a manner such person reasonably believed to be in the best interests of the corporation and,
in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful. A corporation is further
authorized to indemnify, subject to certain exceptions, any person who was or is a party or is threatened to be made a party to any threatened,
pending, or completed action by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person
is or was an agent of the corporation, against expenses actually and reasonably incurred by that person in connection with the defense
or settlement of the action if the person acted in good faith, in a manner the person believed to be in the best interests of the corporation
and its shareholders.

Section 204 of the California Code provides that a corporation’s
articles of incorporation may not limit the liability of directors (i) for acts or omissions that involve intentional misconduct or a
knowing and culpable violation of law, (ii) for acts or omissions that a director believes to be contrary to the best interests of the
corporation or its shareholders or that involve the absence of good faith on the part of the director, (iii) for any transaction from
which a director derived an improper personal benefit, (iv) for acts or omissions that show a reckless disregard for the director’s
duty to the corporation or its shareholders in circumstances in which the director was aware, or should have been aware, in the ordinary
course of performing a director’s duties, of a risk of a serious injury to the corporation or its shareholders, (v) for acts or
omissions that constitute an unexcused pattern of inattention that amounts to an abdication of the director’s duty to the corporation
or its shareholders, (vi) under Section 310 of the California Code (concerning transactions between corporations and directors or corporations
having interrelated directors) or (vii) under Section 316 of the California Code (concerning directors’ liability for distributions,
loans, and guarantees).

Section 204 further provides that a corporation’s articles of
incorporation may not limit the liability of directors for any act or omission