Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 17

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 17
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Effective Date”), no additional shares will
be granted under the 2006 Equity Plan and any shares of Common Stock remaining available for grant under the 2006 Equity Plan will be
included in the Share Limit (as defined below) for the 2025 Equity Plan.

| 10 |

The number of shares of Common Stock that may
be issued pursuant to stock options and other equity awards under the 2025 Equity Plan is: (i) 4,501,330 shares of Common Stock, plus
(ii) shares of Common Stock subject to outstanding stock options under the 2006 Equity Plan as of the Effective Date that, after such
Effective Date, are forfeited, surrendered, terminated (other than by exercise), cancelled, lapsed or reacquired by the Company prior
to vesting, without the delivery of any shares of Common Stock in accordance with the terms of the 2006 Equity Plan, and otherwise comply
with the share recycling provisions of the 2006 Equity Plan and the 2025 Equity Plan (the “Share Limit”). If shareholders
approve the 2025 Equity Plan, our Share Limit will be increased by approximately 3,000,000 shares of Common Stock relative to the current
share limit in effect for our 2006 Equity Plan, representing approximately 13.6% of our outstanding shares of Common Stock as of the Record
Date. Based on our current forecasts related to future stock options and other equity awards and forfeitures and cancellations, we expect
that the proposed Share Limit under the 2025 Equity Plan would be sufficient to cover expected stock options and other equity awards for
approximately three years, subject to material changes in business conditions or our compensation programs, our ability to hire and retain
key Participants, and retention considerations based on the value of outstanding stock options. Since the 2025 Equity Plan does not include
an evergreen provision, we will be required to seek shareholder approval for future increases in our Share Limit. See “Overhang and Burn Rate” below for more information.

To determine the proposed Share Limit, the Compensation
Committee, along with Company’s management, considered:

| ̶ | The number of shares of Common Stock needed to make equity awards over the next three years based on our current stock price and future 
 potential stock prices.                                                                                                                 |

| ̶ | Total projected overhang and dilution from the 2025 Equity Plan. |

| ̶ | Equity plan provisions aligned with similarly situated companies and broad market