Company: CPSS
Filing Date: 2025-10-28
Form Type: DEF 14A
Source: 0001683168-25-007815
Chunk: 31

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-10-28
Form: DEF 14A
Chunk 31
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 will be entitled to a deduction,
in the amount of the ordinary income recognized by the Participant, at the same time the Participant recognizes such income, as long as
the amount constitutes reasonable compensation, and the Company must satisfy certain federal income tax withholding and reporting requirements
with respect to such amount.

A Participant who is granted a PSU or Performance
Stock generally will not recognize any income upon the grant of the Award. The Participant generally will recognize as ordinary income
the Fair Market Value of the shares or cash transferred upon receipt of the shares or cash by the Participant after the completion of
the performance period and the attainment of the performance goal, and the Company generally will be entitled to a deduction equal to
the Fair Market Value of the shares or cash transferred to the Participant at that time as long as the amount constitutes reasonable compensation,
and the Company must satisfy certain federal income tax withholding and reporting requirements with respect to such amount.

A Participant who is permitted to make an outright
purchase of Unrestricted Stock will recognize ordinary income at the time of purchase if and to the extent the purchase price is less
than the Fair Market Value of a share of Common Stock on the date of purchase. A Participant who is permitted to make an outright purchase
of Restricted Stock, depending on the nature of the restrictions, will recognize ordinary income at the time the restrictions lapse if
and to the extent the then value of the Common Stock exceeds the price paid by the Participant, unless the Participant makes an election
under Section 83(b) of the Code to measure and recognize any income at the time of purchase. The Company will be entitled to a corresponding
deduction equal to the amount of any ordinary income recognized by a Participant who makes an outright purchase of Common Stock, at the
time the Participant recognizes the ordinary income, provided that such amount constitutes reasonable compensation, and the Company must
satisfy certain federal income tax withholding and reporting requirements with respect to such amount.

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Section 162(m) of the Code denies a deduction
to any publicly held corporation for compensation paid to certain covered employees in a taxable year to the extent such compensation
exceeds $1,000,000. For this purpose, a covered employee means the Company’s principal executive officer, the Company’s principal
financial officer and certain other current or former named executive officers. It is possible that compensation attributable to Awards
under the 2025 Equity Plan to a covered employee, when combined with all other types of compensation received by the covered employee
from the Company, may