Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1187

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7
Chunk 1187
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 holder suffers a Qualifying Termination (defined below) within one year following the transaction, or if the surviving
entity does not provide the holder with an equivalent award. Acceleration is also mandatory if a holder suffers a Qualifying Termination
within one year following (iii) a change within a three-year period in the membership of a majority of the Board of Directors (excluding
changes recommended by the board), or (iv) a person’s acquisition of outstanding voting securities of the Company, other than directly
from the Company and without approval of the board, resulting in that person’s having beneficial ownership of greater than 25% of
the Company.

Under our stock option plans, the Compensation
Committee may exercise its discretion to provide for acceleration under other circumstances than those described above with respect to
any particular stock option or class of stock options. The committee would expect to exercise its discretion with the intention of preserving
the value of the stock option award. To date, such discretion has not been exercised. A “Qualifying Termination” is a termination
of the holder’s employment by the Company other than for cause, disability or death, or by the holder for “good reason”
(principally relating to a material diminution in the holder’s authority, compensation or responsibilities, or a relocation of greater
than 50 miles). The preceding description applies to options held by officers and employees. Options issued to non-employee directors
accelerate without the exercise of discretion upon any of the four categories of change of control described above.

As of December 31, 2024, each of the named executive
officers would realize a benefit if unvested stock options were to become immediately exercisable upon a change in control, based on
the value of the shares underlying such options at the closing market price on December 31, 2024, which was $10.86 per share. The respective
amounts of such possible benefit are set forth in the following table:

    Potential Value Upon Acceleration 
  
    Mr. Bradley 
    $737,250 
  
    Mr. Lavin 
     160,425 
  
    Mr. Bharwani 
     106,950 
  
    Ms. Robinson 
     106,950 
  
    Mr. Terry 
     106,950 

Management Structure 

The Board is responsible for overseeing the management
of the Company. Its oversight is aimed at seeing to it that the Company’s business is managed to meet our goals, and that the