Document:

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                                                                  EXHIBIT 10.19

                        CONSUMER PORTFOLIO SERVICES, INC.

                            a California corporation

                        1991 STOCK OPTION PLAN as amended

                            Adopted December 16, 1991

                    Shareholder Approval - December 20, 1991

I. PURPOSE

The purpose of this 1991 Stock Option Plan (the "Plan") is to strengthen
Consumer Portfolio Services, Inc. ( the "Corporation") and those corporations
which are or hereafter become subsidiary corporations of the Corporation by
providing an additional means of attracting and retaining competent managerial
personnel and by providing to participating directors, full-time salaried
officers and employees added incentive for high levels of performance and for
unusual efforts to increase the earnings of the Corporation and any subsidiary
corporations. The Plan seeks to accomplish these purposes and achieve these
results by providing a means whereby such directors, officers and employees may
purchase shares of the Common Stock of the Corporation pursuant to the Options
granted in accordance with the Plan. The Plan is intended to comply with the
requirements of Rule 16b-3 under the Securities Exchange Act of 1934, as amended
by the Securities and Exchange Commission in February 1991.

Options granted pursuant to this Plan are intended to be "incentive stock
options" within the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the "Code") or "non-qualified' stock options, and shall be
determined and designated as such upon the grant of each Option hereunder.

2. ADMINISTRATION

The Plan is administered by a committee of the Corporation's Board of Directors
(the "Stock Option Committee") consisting of two or more non-employee directors
who are appointed by and serve at the discretion of the full Board of Directors,
provided that no such member shall at any time during the previous one-year
period have been granted options under the Plan, except pursuant to the
prescribed formula or participated in any other plan of the Corporation or any
affiliated issuer other than a so-called formula, plan within the meaning of
Rule 16b-3 under the Securities Exchange Act of 1934. Each member of the Stock
Option Committee shall be automatically granted an option each year to purchase
no more than 100,000 shares of Common Stock at an exercise price equal to the
fair market value of such stock on the date of grant of such option. The number
of options granted to each member shall be based on a formula that will be
approved by the Board of Directors in the future and will be structured to
comply with Rule 16b-3. Any action of the Stock Option Committee with respect to
the administration of the Plan shall be taken pursuant to a majority vote, or
pursuant to the unanimous written consent of its members.

Subject to the express provisions of the Plan, the Stock Option Committee shall
have the authority to grant options, establish the terms and conditions of any
Options granted under the Plan, construe and interpret the Plan, to define the
terms used therein, to prescribe, amend, and rescind rules

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and regulations relating to the administration of the Plan, to determine the
duration and purposes of leaves of absence which may be granted to participants
without constituting a termination of employment for the purposes of the Plan,
and to make all other determinations necessary or advisable for administration
of the Plan. Determinations of the Stock Option Committee on matters referred to
in this Section 2 shall be final and conclusive.

3. PAR

(a) Eligibility Directors, full-time salaried officers and employees of the
Corporation or a subsidiary corporation, (as that term is defined in Section
425(t) of the Code), if any, shall be eligible for selection to participate in
the Plan; provided, however, that no director who is not also a salaried officer
or key employee, with a customary work week in either case of at least forty
(40) hours in the employ of the Corporation or a subsidiary corporation
("non-officer director"), may be granted an Option hereunder unless such Option
is approved by a majority of the Board of Directors, and provided further, that
non-officer directors of the Corporation or a subsidiary corporation shall be
eligible to receive only non-qualified options under the Plan. Subject to the
express provisions of the Plan, the Stock Option Committee shall select from the
class of eligible participants and make recommendations to the Board of
Directors concerning the individuals to whom Options shall be granted, the terms
and provisions of the respective Option agreements (which need not be
identical), the times at which suck Options shall be granted, and the number of
shares subject to each Option. An individual who has been granted an Option
hereunder (the "Optionee") may, if otherwise eligible, be granted additional
Options if the Board of Directors shall so determine.

Members of the Stock Option Committee shall not be eligible to receive grants of
Options under this Plan, except that each member of the Stock Option Committee
shall be automatically granted an option each year to purchase no more than
100,000 shares of Common Stock at an exercise price equal to the fair market
value of such stock on the date of grant of such Option. The number of options
granted to each member shall be based on a formula that will be approved by the
Board of Directors in the future and will be structured to comply with Rule
l6b-3.

The Board of Directors shall determine the individuals who shall receive Options
and the terms and provisions of the Options, and shall grant such Options to
such individuals. Notwithstanding the above, however, the Board of Directors may
delegate to the Stock Option Committee the power to determine the individuals
who shall receive Options, the terms and provisions of such Options, and to
grant Options to such individuals.

(b) Shareholder-Employees Notwithstanding anything to the contrary contained
herein and subject to Section 4 herein, an Option granted to any eligible
director, officer or employee of the Corporation or a subsidiary corporation who
owns, directly or indirectly, at the time of the grant of the Option, more than
ten percent (10%) of the total combined voting power of all classes of capital
stock of the Corporation or a subsidiary corporation shall not qualify as an
Incentive Stock Option unless (I) the purchase price for the stock subject to
the Option is at least 110% of the fair market value of the stock determined at
the time such Option is granted and (ii) the Option by its terms is not
exercisable after five (5) years from the time the Option is granted. The
attribution rules of Section 425(d) of the Internal Revenue Code of 1986, as
amended, shall apply in the determination of ownership of stock for these
purposes.

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(c) Maximum Value of Incentive Stock Options The aggregate fair market value
(determined at the time the Option is granted) of the stock with respect to
which Incentive Stock Options are exercisable for the first time by each
Optionee under the terms of the Plan during any calendar year is limited to
$100,000, but the value of stock for which options may be granted to an employee
in a given year may exceed $100,000.

(d) Substituted Options Any options granted by any other corporation for which
Options under the Plan are substituted ("Substituted Options") pursuant to a
merger, consolidation, acquisition of property or stock, corporate separation or
reorganization or liquidation, shall qualify as Incentive Stock Options under
the Plan, provided that the original options exchanged for the Substituted
Options were Incentive Stock Options.

(e) Non-Qualified Options All Options and Substituted Options granted (which are
not in accordance with the provisions of Section 3(b) hereof; (2) which are in
excess oldie fair market value limitations set forth in Section 3(c) or 3(d)
hereof or (3) which are designated at the time of grant as "non-qualified" shall
be deemed "non-qualified" and shall not qualify as incentive stock options under
Section 422 of the Code. Non-qualified options granted or substituted hereunder
shall be so designated in the Stock Option Agreement entered into between the
Corporation and the Optionee.

4. STOCK SUBJECT TO THE PLAN

As of December 16, 1991, and subject to adjustment as provided in Section 14
hereof, the stock to be offered under the Plan shall be shares of the
Corporation's authorized but unissued Common Stock, (herein called "Shares"),
and the aggregate amount of Shares to be delivered upon exercise of all Options
granted under the Nan shall not exceed 1,100,000 shares. If any Option shall be
cancelled, surrendered, or expire for any reason without having been exercised
in full, the unpurchased shares subject thereto shall again be available for
purposes of the Plan.

5. OPTION PRICE

(a) Except as provided in Section 3(b) above and in Section 5(b) below, the
purchase price of stock subject to each Option shall be determined by the Board
of Directors (or the Stock Option Committee, if authorized), but shall no be
less than one hundred percent (100%) of the fair market value of such stock at
the time such Option is granted.

(b) Where the outstanding shares of stock of another corporation are changed
into or exchanged for the shares of stock of the Corporation without
consideration to that other corporation, subject to the approval of the Board of
Directors, Options may be granted in exchange for options of the other
corporation, and the purchase price of stock subject to each Option so granted
may be fixed at a price less than one hundred percent (100%) of the fair market
value of such stock at the time such Option is granted if the purchase price has
been computed to be not less that the purchase price set forth in the option of
the other corporation, with appropriate adjustment to reflect the exchange ratio
of the shares of stock of the other corporation into shares of stock of the
Corporation.

                                      -3-

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(c) The purchase price of shares purchased under the Plan ("Purchase Price")
shalt be paid in full at the time of each such purchase in cash, or bank
cashier's or certified check. In the event the Corporation determines that it is
required to withhold State or Federal income tax as a result of the exercise of
an Option, as a condition to the exercise thereof an Optionee may be required to
make arrangements satisfactory to the Corporation to enable it to satisfy such
withholding requirements.

(d) For purposes of this Paragraph 5, the fair market value of the Corporation's
stock shall be determined in accordance with any reasonable valuation method,
including the valuation methods described in Treasury Regulations Section
20.2031-2.

6. CONTINUATION OF EMPLOYMENT

Nothing contained in the Plan or in any Option agreement shall obligate the
Corporation or any subsidiary corporation to continue to employ any Optionee or
maintain any director's status as suck for any period, or interfere in any way
with the right of the Corporation or a subsidiary corporation to reduce the
Optionee's compensation.

7. OPTION PERIOD AND EXERCISE OF OPTIONS

(a) Each Option and all rights or obligations thereunder shall vest and be
exercisable immediately upon grant or shall vest and be exercisable over a
period of time and in such installments, which need not be equal, and shall
expire, all as the Board of Directors (or the Stock Option Committee if
authorized) may determine, but not later that ten (10) years from the date of
grant, subject to earlier termination as provided elsewhere in the Plan;
provided, however, that any Option granted to an individual who at the time of
the grant of such Option owns ten percent (10%) or more of the outstanding
Shares of the Corporation, and all rights and obligations under said Option,
shall expire no later that five (5) years from the date of grant, subject to
earlier termination as provided elsewhere in the Plan. If an Optionee shall not
in any given installment period purchase all of the shares which the Optionee is
entitled to purchase in such installment period, the Optionee's right to
purchase any Shares not purchased in such installment period shall continue
until expiration of such Option. No Option or installment thereof shall be
exercisable except with respect to whole shares and fractional share interests
shalt be disregarded except that they may be accumulated for purposes of
applying the preceding sentence.

(b) Options granted hereunder shall be exercised by written notice delivered to
the Corporation stating the number of shares with respect to which the Option is
being exercised, together with the purchase price of such shares as provided in
Paragraph 5 (c) hereof if the Option is being exercised by any person other than
the Optionee, said notice shall be accompanied by proof satisfactory to counsel
for the Corporation, of the right of such person to exercise the Option.

(c) Not less than ten shares may be purchased at one time unless the number
purchased is the total number which may be purchased under the Option.

(d) No shares shall be issuable upon exorcise of any Option unless and until (i)
in the opinion of the counsel for the Corporation, all applicable requirements
of law and of regulatory bodies having jurisdiction over such issuance shall
have been fully complied with and (ii) if required by federal or state law or
regulation, the Optionee shall have paid to the Corporation the amount, if any,
required to be withheld on the amount deemed to be compensation to Optionee as a
result of exercise of his or her Option, or make other arrangements satisfactory
to the Corporation, in its sole discretion, to satisfy all applicable income tax
withholding requirements.

                                      -4-

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(e) Notwithstanding any provision in any stock option agreement pertaining to
the time of exercise of a Stock Option, or part thereof, and subject to the
terms of Section 15 hereof; upon delivery of notice to the Optionee from the
Stock Option Committee or the Board of Directors of the pendency of a
Terminating Event, as defined in Section 15 hereof; which notice shall be given
at least thirty (30) days prior to the Terminating Event, the entire Stock
Option shall be exercisable in full and not only as to those shares with respect
to which installments, if any, have then accrued, subject, however, to actual
consummation of the Terminating Event and subject to earlier expiration or
termination as provided elsewhere in the Plan. If the Terminating Event is not
consummated, after notice thereof is given to the Optionee, then the Stock
Option shall remain exercisable in accordance with its terms.

8. EXTENSION OF TERM OF STOCK OPTION AGREEMENTS

With the consent of the Optionee, the Corporation may amend an outstanding stock
option agreement to extend its term or modify its vesting or exercise periods,
so long as the amended Option could have been granted originally on the same
terms as the amended Option.

9. NONTRANSFERABILITY OF OPTIONS

Each Option shall, by its terms, be nontransferable by the Optionee other than
by will or the laws of descent and distribution and shall be exercisable during
the Optionee's lifetime only by the Optionee.

10. CESSATION OF EMPLOYMENT

Except as provided in Section II hereof, if, for any reason ether than death, an
Optionee ceases to be employed by the Corporation or a subsidiary corporation,
or ceases to be a director of the Corporation or a subsidiary, the Options
granted to such Optionee shall expire not later than ninety (90) days thereafter
or on the day specified pursuant to the provisions of Section 7 (a) hereof,
whichever is earlier. During the 90-day period after cessation of employment or
service as a director, such Options shall be exercisable only as to those
installments, if any, which were accrued as of the date on which such Optionee
ceased to be employed by the Corporation or the subsidiary corporation or ceased
to serve as a director of the Corporation or the subsidiary corporation.

11. TERMINATION OF CAUSE

If the Stock Option Agreement so provides and if an Optionees employment by the
Corporation or a subsidiary corporation is terminated for cause, the Options
granted to such Optionee shalt expire immediately upon notice of such option
termination given by the Board to the Optionee. Termination for cause shall
include termination for malfeasance or gross negligence in the performance of
duties or conviction of illegal activity in connection therewith or any conduct
detrimental to the interests of the Corporation or a subsidiary corporation and,
in any event, the determination of the Board of Directors with respect thereto
shall be final and conclusive.

                                      -5-

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12. DEATH OF OPTIONEE

If an Optionee dies while employed by the Corporation or a subsidiary
corporation, or while serving as a director of the corporation, or during the
90-day period referred to in Section 10 hereof, the Options granted to such
Optionee shall expire one year after the date of such death or on the day
specified pursuant to the provisions of Section 7 (a) hereof, whichever is
earlier. After such death but before such expiration, the person or persons to
whom such Optionee rights under the Options shall have passed by will or by the
applicable laws of descent and distribution, or the executor or administrator of
the Optionees estate, shall have the right to exercise such Options to the
extent that installments, if any, were accrued as of the date on which the
Optionee died.

13. DISABILITY OF OPTIONEE

If an Optionee is disabled while employed by the Corporation or a subsidiary
corporation, or while serving as a director of the Corporation or a subsidiary
corporation, or during the 90-day period referred to in Section 10 hereof, the
Options granted to such Optionee shall expire one year after the date of such
disability or on the day specified pursuant to the provisions of Section 7 (a)
hereof, whichever is earlier. After such disability but before such expiration,
such Optionee or a guardian or conservator of the 0ptionee's estate, as duly
appointed by a court of competent jurisdiction, shall have the right to exercise
such Options to the extent that installments, if any, have accrued as of the
date on which the

Optionee became disabled or ceased to be employed by the Corporation or a
subsidiary corporation or ceases to be a director as a result of his or her
disability. For the purpose of this Section 13, an Optionee shall be deemed to
have become "disabled" if it shall appear to the Board of Directors (or the
Stock Option Committee, if authorized), upon written certification delivered to
the Corporation by a qualified licensed physician, that the Optionee has become
permanently and totally unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be
expected to result in death, or which has lasted or can be expected to last for
a continuous period of not less than twelve months.

14. ADJUSTMENT UPON CHANGES IN CAPITALIZATION

If the outstanding shares of stock of the Corporation are increased, decreased,
or changed into, or exchanged for a different number or kind of shares or
securities of the Corporation through reorganization, merger, recapitalization,
reclassification, stock split, stock dividend, stock consolidation, or
otherwise, without consideration to the Corporation, an appropriate and
proportionate adjustment shall be made in the number and kind of shares as to
which Options may be granted. A corresponding adjustment changing the number or
kind of shares and the exercise prices per share allocated to unexercised
Options, or portions thereof, which shall have been granted prior to any such
change shall likewise be made. Any such adjustment, however, in an outstanding
Option shall be made without change in the total price applicable to the
unexercised portion of the Option, but with a corresponding adjustment in the
price for each share subject to the Option. Any adjustment under this Section
shall be made by the Board of Directors, whose determination as to what
adjustments shall be made, and the extent thereof, shall be final anti
conclusive. No fractional shares of stock shall be issued or made available
under the Plan on account of any such adjustment and fractional share interests
shall be disregarded, except that they may be accumulated for purposes of
applying Section 7 (a) hereof.

                                      -6-

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15. TERMINATING EVENTS

Not less than thirty (30) days prior to consummation of a plan of dissolution or
liquidation of the Corporation, or consummation of a plan of reorganization,
merger or consolidation of the Corporation with one or more corporations, as a
result of which the Corporation is not the surviving corporation, or upon the
sale of all or substantially all the assets of the Corporation to another
corporation, person or entity, or in the event of any other transaction
involving the Corporation where there is a change in ownership of fifty percent
(50%) or more of the voting power of the stock of the Corporation then
outstanding ("Change in Control"), except as may result from a transfer of
shares to another corporation in exchange for at least eighty percent (80%)
control of that corporation, each such event being referred to herein as a
"Terminating Event", the Stock Option Committee or the Board of Directors shall
notify each Optionee in writing of the pendency of the Terminating Event. Upon
delivery of said notice, any Option granted prior to the Terminating Event shall
be, notwithstanding the provisions of Section 7 hereof, exercisable in full and
not only as to those shares with respect to which installments, if any, have
then accrued, subject, however, to actual consummation of the Terminating Event
and subject to earlier expiration or termination as provided elsewhere in the
Plan.

Upon the effective date of any Change in Control, any Option or portion thereof
not exercised pursuant to the Section 15 shall remain exercisable in accordance
with its terms and the Plan shall not terminate but shall remain in full force
and effect.

Upon the effective date of any Terminating Event other than a Change in Control,
any Option or portion thereof not exercised shall terminate; provided, however,
that such Option or portion thereof not exercised shall not terminate if any
Optionee elects, in the discretion of such Optionee, not to exercise all or any
portion of his or her Option prior to the effective date of the Terminating
Event and the successor employer corporation, or a parent or subsidiary
corporation thereof, solely at the option of such successor corporation or
parent or subsidiary corporation, agrees to assume such Options theretofore
granted or to substitute for such Options new options covering stock of a
successor employer corporation, of a parent or subsidiary corporation thereof,
with appropriate adjustments as to the number and kind of shares and prices.

Upon the effective date of any Terminating Event other than a Change in Control,
the Plan shall terminate, unless provision is made in connection with the
Terminating Event for assumption of Options theretofore granted, or substitute
for such Options new options covering stock of a successor employer corporation,
or a parent of subsidiary corporation thereof; solely at the option of such
successor corporation or parent or subsidiary corporation, with appropriated
adjustments as to number and kind of shares and prices.

If for any reason the Terminating Event is not consummated, Stock Options
granted pursuant to the Plan shall remain exercisable in accordance with their
respective terms.

                                      -7-

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16. AMENDMENT AND TERMINATION OF PLAN

The Board of Directors of the Corporation may at any time and from time to time
suspend, amend, or terminate the Plan and may, with the consent of Optionee,
make such modifications of the terms and conditions of the Option as it shall
deem advisable; provided that, except as permitted under the provisions of
Section 14 hereof, no amendment of modification may be adopted without the
Corporation having first obtained the approval of the affirmative vote of at
least a majority of the Corporations outstanding Shares entitled to vote, if
such amendment or modification would:

         (a) increase the maximum number of shares which may be purchased
         pursuant to Options granted under the Plan, either in the aggregate or
         by an individual;

         (b) change the minimum purchase price of stock subject to Options;

         (c) increase the maximum term of Options provided for herein beyond the
         term permitted in the Plan;

         (d) permit Options to be granted to anyone other that a full-time
         salaried officer or a key employee of the Corporation or a subsidiary
         corporation; or

         (e) change any provision of the Plan which would affect the
         qualification as an Incentive Stock Option within the meaning of
         Section 422 of the Code of any option granted as an Incentive Stock
         Option under the Plan.

Notwithstanding the above, the Board of Directors (and the Stock Option
Committee, if authorized) may grant to an Optionee, if otherwise eligible,
additional Options or, with the consent of Optionee, grant a new Option in lieu
of an outstanding Option for a number of shares, at a purchase price, and for a
term which in any respect is greater or less than that of the earlier Option,
subject to the limitations of Sections 3, 4, 5 and 7 (a) hereof; and subject
further to the condition that an Optionees Incentive Stock Options cannot be
cancelled, exchanged or substituted for any other option.

No Option may be granted during any suspension of the Plan or after termination
of the Plan. Amendment, suspension, or termination of the Plan shall not (except
as otherwise provided in Section 1 4 hereof), without the consent of the
Optionee, alter or impair any rights or obligations under any Option theretofore
granted.

17. TIME OF GRANTING OPTIONS

The time an Option is granted shall be the day of the action of the Board of
Directors (or action of the Stock Option Committee, if authorized) described in
the second paragraph of Section 3 (a) hereof; provided, however, that if
appropriated resolutions of the Board of Directors (or the Stock Option
Committee, if authorized) indicate that an Option is granted as of a future
date, the time such Option is granted shall be such future dale. if action by
the Board of Directors (or the Stock Option Committee, if authorized) is taken
by unanimous written consent of its members, the action of the Board of
Directors (or the Stock Option Committee) member signs the consent. All Options
granted under this Plan shall he granted on or before December 15, 2001.

18. PRIVILEGES OF STOCK OWNERSHIP; SECURITIES LAW COMPLIANCE; NOTICE OF SALE

No Optionee shall be entitled to the privileges of stock ownership as to shares
of stock not actually issued and delivered. No shares shall be purchased upon
the exercise of an Option unless and until all then applicable requirements of
all regulatory agencies having jurisdiction and applicable requirements of

                                      -8-

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securities exchanges upon which the stock of the Corporation is listed, if any,
shall have been fully complied with. The Optionee shall, not more than five days
after each such sale or other disposition, give the Corporation notice in
writing of the sale or other disposition of shares purchased pursuant to Options
granted hereunder.

19. EFFECTIVE DATE OF THE PLAN

The Plan shall be deemed adopted as of December 16, 1991, the date of its
approval by the Board of Directors, and shall be effective immediately subject
to approval by the holders of at least a majority of the Corporation's
outstanding Shares entitled to vote thereon, by unanimous written consent or
voting in person or by proxy, at a duly held stockholders' meeting.

20. TERMINATION

Unless previously terminated by the Board of Directors or a provided in Section
15 hereof, the Plan shall terminate at the close of business on December 15,
2001, and no Options shall be granted under the Plan thereafter, but such
termination shall not affect any Option theretofore granted.

21. OPTION AGREEMENT

Each Option shall be evidenced by a written Stock Option Agreement executed by
the Corporation and the Optionee and shall contain each of the provisions and
agreements herein specifically required to be contained therein, and such other
terms and conditions as are deemed desirable and are not inconsistent with the
Plan.

22. EXCULPATION AND INDEMNIFICATION

To the extent permitted by applicable law in effect from time to time, no member
of the Board of Directors or Stock Option Committee shall be liable for any
action or omission of any other member of the Board of Directors or Stock Option
Committee nor for any act or omission on the member's own part except the
member's own willful misconduct or gross negligence. The Corporation and its
subsidiary corporations shall pay expenses incurred by, and shall satisfy a
judgment of fine rendered or levied against, a present or former director or
member of the Stock Option Committee in any action brought by a third party
against such person (whether or not the Corporation is joined as a party
defendant) to impose a liability or penalty on such person while a director or
member of the Stock Option Committee arising with respect to the Plan or
administration thereof or out of membership on the Stock Option Committee or by
the Corporation, or all or any combination of the preceding; provided, that the
Board of Directors determines in good faith that such director or member was
acting in good faith, within what such director or member reasonably believed to
be the scope of his or her authority and for a purpose which he or she
reasonably believed to be in the best interest of the Corporation or its
subsidiaries, if any. Payments authorized hereunder include amounts paid and
expenses incurred in settling any such action or threatened action. This Section
shall not apply to any action instituted or maintained in the right of the
Corporation by a shareholder or holder of a voting trust certificate
representing shares of the Corporation or any subsidiary corporation thereof The
provisions of this Section shall apply to the estate, executor, administrator,
heirs legatees and devisees of directors and members of the Stock Option
Committee, and the term "person" as used in this Section shall include the
estate, executor, administrator, heirs, legatees and devisees of such person.

END OF PLAN

                                      -9-<PAGE>

                                                                  EXHIBIT 10.20

                        CONSUMER PORTFOLIO SERVICES, INC.
         1997 Long-Term Incentive Stock Plan (as Amended April 26, 2004)

1.       PURPOSES OF THE PLAN

         The purposes of the 1997 Long-Term Incentive Stock Plan (the "Plan") of
Consumer Portfolio Services, Inc., a California corporation (the "Company") are
to: promote the interests of the Company and its stockholders by strengthening
the Company's ability to attract and retain highly competent officers and other
key employees; permit the awarding of opportunities for Plan participants to be
rewarded using stock-based incentives; and to provide a means to encourage stock
ownership and proprietary interest in the Company by the recipients of awards
made under the Plan.

2.       DEFINITIONS

         a) "1934 Act" means the Securities and Exchange Act of 1934, as
amended, including the rules and regulations promulgated thereunder.

         b) "Award" means an Option (including an ISO), an SAR, a stock Award, a
stock payment, any other award made pursuant to the terms of the Plan, or any
combination of them, as described in and granted under the Plan.

         c) "Board" means the board of directors of the Company.

         d) "Change of Control" is defined in Section 11.

         e) "Code" means the Internal Revenue Code of 1986, as amended,
including any rules and regulations promulgated thereunder.

         f) "Committee" means the Compensation Committee of the Board or such
other committee as may be appointed by the Board to administer the Plan.

         g) "Company" means Consumer Portfolio Services, Inc., a California
corporation.

         h) "Eligible Person" means any natural person who at the time of an
Award (i) is an employee, consultant or director of the Company or any
Subsidiary, or (ii) is an employee of a business acquired by or an entity merged
into the Company or any Subsidiary; provided, however, that with respect to an
Award of ISOs, an "Eligible Person" means only a natural person who is at the
time of grant an employee of the Company or of a corporation to which the
Company is a parent corporation as defined in Section 424 of the Code, or
successor provision.

         i) "Fair Market Value" means the average of the high and low selling
prices of a Share as reported in The Wall Street Journal (or other readily
available public source designated by the Committee) for the last trading day
for which such prices are available prior to the applicable transaction date
under the Plan. If the Committee determines that there is no readily available
source of information regarding transactions in Shares, then Fair Market Value
shall mean the fair market value of a Share as determined by the Committee.

         j) "ISO" means an incentive stock option as defined in Section 422 of
the Code.

         k) "Option" means an Award under the Plan of an option to purchase
Shares, and includes ISO Awards and options that do not meet the requirements of
Section 422 of the Code.

         l) "Participant" means an Eligible Person who has been granted an Award
under the Plan.

         m) "Plan Year" means a twelve-month period beginning with January 1 of
each year, commencing with January 1, 1997.

         n) "Prior Plan" means the Consumer Portfolio Services, Inc. 1991 Stock
Option Plan.

         o) "SAR" means a stock appreciation right.

         p) "Shares" means the common stock of the Company, no par value.

         q) "Subsidiary" mean any entity that is directly or indirectly
controlled by the Company, or any entity, including an acquired entity, in which
the Company has a significant equity interest, as determined by the Committee.

                                       1
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3.       EFFECTIVE DATE OF PLAN AND DURATION OF PLAN

         The Plan shall become effective upon its adoption by the Board. Any
Awards hereunder may be made immediately upon such effectiveness; provided,
however, (i) that the Plan and any such Awards shall be void ab initio if the
shareholders of the Company do not approve the Plan within one year after its
adoption by the Board, and (ii) no ISO or SAR may be exercised prior to
shareholder approval. Unless previously terminated by the Board of Directors,
the Plan shall expire at the close of business on April 30, 2007.

4. PLAN ADMINISTRATION

         a) Committee -- The Committee shall administer the Plan. The Committee
shall comprise two or more members of the Board, each of whom shall be both (i)
a non-employee director within the meaning of Rule 16b-3 under the 1934 Act and
(ii) an outside director within the meaning of Section 162(m) of the Code;
provided, however, that the Board may by resolution specifically declaring that
compliance with said restrictions of Rule 16b-3 or Section 162(m), or both, is
no longer necessary or advisable, name to the Committee individuals who do not
meet such definitions. Each member of the Committee shall serve for such term as
the Board may determine, subject to removal by the Board at any time.

         b) Committee Authority -- The Committee shall have full and exclusive
authority to interpret the Plan and to adopt such rules, regulations and
guidelines for carrying out the Plan as it may deem necessary or proper, all of
which authority shall be executed in the best interests of the Company and in
keeping with the provisions and objectives of the Plan. Without limiting the
preceding grant of authority, the Committee shall have the authority (i) to
select Award recipients, (ii) to establish all Award terms and conditions, (iii)
to adopt procedures and regulations governing Awards, (iv) to approve forms of
Award agreements for use under this Plan, (v) to amend the terms of any
outstanding Award, including a reduction in the exercise price of any Option or
SAR to reflect a decrease in Fair Market Value, subject to consent of the
Participant to the extent required by the applicable Award agreement, (vi) to
construe and interpret the Plan and any Award agreements, and (vii) to make all
other determinations necessary or advisable for the administration of this Plan,
including the authority in the event of a spin-off or other corporate
transaction to replace an Award under the Plan with an award from another issuer
or plan or an award relating to property other than Shares. All decisions made
by the Committee shall be conclusive, final and binding on all persons affected
by such decisions.

         c) No member of the Committee shall be liable for any action or
determination with respect to the Plan, and the members shall be entitled to
indemnification and reimbursement in the manner provided in the Company's
Articles of Incorporation and its bylaws, as amended. In the performance of its
functions under the Plan, the Committee shall be entitled to rely upon
information and advice furnished by the Company's officers, accountants, counsel
and any other party the Committee deems necessary, and no member of the
Committee shall be liable for any action taken or not taken in reliance upon any
such advice.

5. PARTICIPATION

         The Committee may from time to time grant Awards under the Plan to any
Eligible Person. The Committee may impose such terms and conditions on any such
Award as the Committee may find advisable.

6.       AVAILABLE SHARES OF COMMON STOCK

         a) Subject to any adjustment pursuant to Section 6(c), grants of Awards
are subject to the following limitations:

                  (i) the aggregate number of Shares as to which Awards may be
         granted shall not exceed 6,900,000.

                  (ii) In addition, awards may be granted with respect to the
         following: any Shares available for grants under the Prior Plan that
         have not been committed for issuance under grants made under the Prior
         Plan; any Shares that are represented by grants or portions of grants
         made under the Plan or the Prior Plan that are forfeited, expire or are
         canceled without the issuance of Shares; and any Shares that may be
         tendered, either actually or by attestation, by a person as full or
         partial payment made to the Company in connection with the exercise of
         any stock option under the Plan or the Prior Plan.

                                       2
<PAGE>

                  (iii) The aggregate number of Shares that may be represented
         by Awards granted to any one individual under Sections 7(b), 7(c), 7(d)
         and 7(e) of the Plan shall not exceed 1,500,000 over the life of the
         Plan.

                  (iv) The aggregate number of Shares that may be used in
         settlement of Awards pursuant to Section 7(d) of the Plan shall not
         exceed 30% of total number of Shares available under this Section 6(a).

         b) Exclusions and Source of Shares -- Any Shares issued, and any Awards
that are granted through the assumption of, or in substitution for, outstanding
awards previously granted by an acquired entity shall not be counted against the
Shares available for Awards under the Plan. No fractional Shares shall be issued
under the Plan. Cash may be paid in lieu of any fractional Shares in settlements
of awards under the Plan.

         c) Adjustments -- In the event of any stock dividend, stock split,
combination or exchange of equity securities, merger, consolidation,
recapitalization, spin-off or other distribution (other than normal cash
dividends) of Company's assets to stockholders, or any other change affecting
Shares or Share price the Committee in its discretion may make such
proportionate adjustments as it may deem appropriate to reflect such change with
respect to: (i) the limitations on the numbers of Shares that may be issued and
represented by Awards as set forth in Section 6(a); (ii) each outstanding Award;
and (iii) the exercise price per Share for any outstanding Options, SARs or
similar Awards.

7.       AWARDS

         a) General -- The Committee shall determine the type or types of
Award(s), if any, to be made to each Eligible Person. Awards may be granted
singly, in combination or in tandem. Awards also may be made in combination or
in tandem with, in replacement of, as alternatives to grants or rights under the
Plan or any other employee compensation plan of the Company, including the plan
of any acquired entity. The types of Awards that may be granted under the Plan
are:

         b) Stock Options -- An Option shall represent a right to purchase a
specified number of Shares during a specified period as determined by the
Committee. The purchase price per Share shall be as specified in the Committee
resolution granting same, or, in the absence of any specification, shall be the
Fair Market Value of one Share. The Committee shall designate each Option as an
ISO or as an Option other than an ISO. The Shares covered by an Option may be
purchased, in accordance with the applicable Award agreement , by cash payment
or any other method permitted by the Committee, which other methods may include
(i) tender (either actually or by attestation) of Shares valued at the Fair
Market Value at the date of exercise; (ii) authorizing a third party to sell the
Shares (or a sufficient portion thereof) acquired upon exercise of a stock
option, and assigning for delivery to the Company a sufficient amount of the
sale proceeds to pay for all the Shares acquired through such exercise and any
tax withholding obligations resulting from such exercise; (iii) delivery of the
Participant's promissory note with such recourse, interest, term, security and
other provisions as the Committee deems appropriate, or (iv) any combination of
the above. Unless some other method of payment is explicitly authorized, either
by resolution of the Committee or the terms of the written Option agreement,
payment for Shares shall be by delivery of cash to the Company prior to the
issuance of such Shares. The Committee may grant Options that provide for the
grant of a subsequent restoration Option if the exercise price has been paid for
by tendering Shares to the Company. Any restoration Option may cover up to the
number of Shares tendered in exercising the predecessor Option, with the Option
purchase price set at the then-current Fair Market Value, and the term of such
restoration Option may not extend beyond the remaining term of the original
option.

         c) SARs -- An SAR shall represent a right to receive a payment, in
cash, Shares or a combination, equal to the excess of the Fair Market Value of a
specified number of Shares on the date the SAR is exercised over the Fair Market
Value on the date the SAR was granted as set forth in the applicable Award
agreement; except that if an SAR is granted retroactively in tandem with or in a
substitution for a stock option, the designated Fair Market Value in the
applicable Award agreement may be the Fair Market Value on the date such stock
option was granted.

         d) Stock Awards -- A stock Award shall represent an Award made in
Shares or denominated in units equivalent in value to Shares. All or part of any
stock Award may be subject to conditions and restrictions established by the
Committee, and set forth in the Award agreement, which may include, but are not

                                       3
<PAGE>

limited to, continuous service with the Company, the achievement of performance
goals, or both. The vesting period of any stock Award will be not less than six
months. The performance criteria that the Committee may use in granting stock
Awards contingent on performance goals for officers to whom Section ss.162(m) of
the Code is applicable shall consist of Fair Market Value of Shares, earnings,
return on equity, and revenues. The Committee may select one criterion or
multiple criteria for measuring performance, and the measurement may be based on
absolute Company or business unit performance or based on performance as
compared with other companies.

         e) Stock Payment -- A Stock Payment shall represent an issuance of
Shares as payment for compensation which otherwise would have been delivered in
cash (including without limitation any compensation that is intended to qualify
as performance-based compensation for purposes of Section 162(m) of the Code).
No minimum vesting period need apply to Shares issued as a Stock Payment. Any
Shares used for such payment will be valued at their Fair Market Value at the
time of payment and shall be subject to such restrictions (including without
limitation restrictions on transfer), if any, and other terms and conditions as
may be determined by the Committee at the time of payment.

8.       DIVIDENDS AND DIVIDEND EQUIVALENTS

         The Committee may provide that any Awards may earn dividends or
dividend equivalents, which shall not be deemed earned in the absence of
explicit provision therefor. Such dividends or dividend equivalents may be paid
currently or may be credited to a Participant's account. Any crediting of
dividends or dividend equivalents may be subject to such restrictions and
conditions as the Committee may establish, including reinvestment in additional
Shares or share equivalents.

9.       PAYMENTS AND PAYMENT DEFERRALS

         Payment of Awards may be in the form of cash, Shares, other Awards or
combinations thereof as the Committee shall determine, and with such
restrictions as it may impose. The Committee also may require or permit
Participants to elect to defer the issuance of Shares from Stock Options or
Stock Awards or the settlement of Awards in cash under such rules and procedures
as it may establish under the Plan. It also may provide that deferred
settlements include the payment or crediting of interest on the deferred
amounts, or the payment or crediting of dividend equivalents where the deferred
amounts are denominated in Share equivalents. In addition, the Committee may
stipulate in an Award agreement, either at time of grant or by subsequent
amendment, that a payment or portion of a payment of an Award be delayed in the
event that Section 162(m) of the Code (or any successor or similar provision of
the Code affecting tax deductibility) would operate to disallow a tax deduction
by the Company for all or a portion of such payment. The period of any such
delay in payment shall be until the payment, or portion thereof, is tax
deductible, or such earlier date as the Committee may determine.

         Shares shall not be issued pursuant to an Award unless the issuance and
delivery of such Shares pursuant thereto would comply with all applicable laws,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance. The Company shall have no obligation to cause
compliance with any applicable law. In particular, but without limitation, the
Company shall have no obligation to register under the Securities Act of 1933
the Shares issuable pursuant to any Award.

         As a condition to the issuance of Shares to a Participant, the Company
may require the Participant to represent and warrant at the time of any such
issuance that the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required by any applicable
law.

10.      TRANSFERABILITY

         Awards under the Plan shall not be transferable or assignable other
than by will or the laws of descent and distribution, except that the Committee
may provide for the transferability of particular Awards, other than ISOs:

         a) by gift or other transfer to (i) any trust or estate in which the
original Award recipient or such person's spouse or other immediate relative has
a beneficial interest; or (ii) a spouse or other immediate relative, provided,
however, that the Participant continues to have substantial beneficial interest
in the Shares covered by the Award after such transfer; or

                                       4
<PAGE>

         b) pursuant to a qualified domestic relations order.

         In the event that a Participant terminates employment with the Company
or any Subsidiary to assume a position with a governmental, charitable,
educational or similar non-profit institution, the Committee may subsequently
authorize a third party, including but not limited to a "blind" trust, to act on
behalf of and for the benefit of such Participant regarding any outstanding
Award held by the Participant subsequent to such termination of employment. If
so permitted by the Committee, a Participant may designate a beneficiary or
beneficiaries to exercise the rights of the Participant and receive any
distribution under the Plan upon the death of the Participant.

11.      CHANGE OF CONTROL

         a) In order to maintain the Participants' rights in the event of a
Change of Control, the Committee in its sole discretion may, either at the time
an Award is made hereunder or at any time prior to, or coincident with or after
the time of a Change of Control:

                  i) provide for the acceleration of any time periods relating
to the exercise or realization of such Awards so that such Awards may be
exercised or realized in full on or before a date fixed by the Committee;

                  ii) provide for the purchase of such Awards, upon the
Participant's request, for an amount of cash equal to the amount which could
have been obtained upon the exercise or realization of such rights had such
Awards been currently exercisable or payable;

                  iii) make such adjustment to the Awards then outstanding as
the Committee deems appropriate to reflect such transaction or change; or

                  iv) cause the Awards then outstanding to be assumed, or new
rights substituted therefore, by the surviving corporation in such change.

         b) The Committee may, in its discretion, include such further
provisions and limitations in any agreement documenting such Awards as it may
deem equitable and in the best interests of the Company.

         c) A "Change of Control" shall be deemed to occur if and when:

                  i) any person, including a "person" as such term is used in
Section 14(d)(2) of the 1934 Act (a "Person"), is or becomes a beneficial owner
(as such term is defined in Rule 13d-3 under the 1934 Act), directly or
indirectly, of securities of the Company representing 25% or more of the
combined voting power of the Company's then outstanding securities, but
excluding any such person who holds such voting power as of the date of adoption
of the Plan;

                  ii) any plan or proposal for the liquidation or dissolution of
the Company is adopted by its shareholders;

                  iii) individuals who, as of the date hereof, constitute the
Board (the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company's shareholders, was approved by a vote of at least a
majority of the directors then constituting the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of either an actual or threatened election contest (as
such terms are used in Rule 14a-11 of Regulation 14A promulgated under the 1934
Act) or other actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board;

                  iv) all or substantially all or the assets of the Company are
sold, liquidated or distributed; or

                  v) there occurs a reorganization, merger, consolidation or
other corporate transaction involving the Company (a "Transaction"), in each
case, with respect to which the shareholders of the Company immediately prior to
such Transaction do not, immediately after the Transaction, own more than 50
percent of the combined voting power of the Company or other corporation
resulting from such Transaction.

         d) Any good faith determination by the Incumbent Board of whether a
Change of Control within the meaning of this definition has occurred shall be
conclusive.

                                       5
<PAGE>

12.      AWARD AGREEMENTS

         Awards under the Plan shall be evidenced by agreements that set forth
the terms, conditions and limitations for each Award, which may include the term
of the Award (except that in no event shall the term of any ISO exceed a period
of ten years from the date of its grant), the provisions applicable in the event
the Participant's employment terminates, and the Company's authority
unilaterally or bilaterally to amend, modify, suspend, cancel or rescind any
Award. The Committee need not require the execution of any such Agreement by the
Participant, in which case acceptance of the Award by the Participant shall
constitute agreement by the Participant to the terms of the Award.

13.      PLAN AMENDMENT

         The Board may at any time amend, suspend or terminate the Plan as it
deems necessary or appropriate to better achieve the purposes of the Plan,
except that the Board may not, without the approval of the Company's
stockholders, materially increase the number of shares available for issuance in
accordance with Section 6 of the Plan.

14.      TAX WITHHOLDING

         The Company shall have the right to deduct from any settlement of an
Award made under the Plan, including the delivery or vesting of Shares, a
sufficient amount to cover withholding of any federal, state or local taxes
required by law or such greater amount of withholding as the Committee shall
determine from time to time, or to take such other action as may be necessary to
satisfy any such withholding obligations. If the Committee permits or requires
Shares to be used to satisfy required tax withholding, such Shares shall be
valued at the Fair Market Value as of the tax recognition date for such Award.
No Shares or other property shall be delivered under the Plan to any Participant
or other person until such Participant or other person has made arrangements
acceptable to the Committee for the satisfaction of any foreign, federal, state,
or local income and employment tax withholding obligations, including, without
limitation, obligations incident to the receipt of shares or the disqualifying
disposition of shares received on exercise of an ISO. Upon exercise of an
Option, the Company shall withhold or collect from the Participant an amount
sufficient to satisfy such tax obligations.

15.      OTHER BENEFIT AND COMPENSATION PROGRAMS

         Unless otherwise specifically determined by the Committee, settlements
of Awards received by participants under the Plan shall not be deemed a part of
a participant's regular, recurring compensation for purposes of calculating
payments or benefits from any Company benefit plan or severance program.
Further, the Company may adopt other compensation programs, plans or
arrangements as it deems appropriate or necessary.

16.      UNFUNDED PLAN

         Unless otherwise determined by the Board, the Plan shall be unfunded
and shall not create (or be construed to create) a trust or a separate fund or
funds. The Plan shall not establish any fiduciary relationship between the
Company and any participant or other person. To the extent any person holds any
rights by virtue of an Award granted under the Plan, such rights shall
constitute general unsecured liabilities of the Company and shall not confer
upon any Participant any right, title or interest in any assets of the Company.

17.      USE OF PROCEEDS

         The cash proceeds received by the Company from the issuance of Shares
pursuant to the exercise of stock options or the settlement of other Awards
under the Plan may be used for general corporate purposes.

18.      REGULATORY APPROVALS

         The implementation of the Plan, the grant of any Award under the Plan,
and the issuance of Shares upon the exercise or settlement of any Award shall be
subject to the Company's receiving all approvals and permits required by
regulatory authorities having jurisdiction over the Plan, Awards or the Shares
issued pursuant to Awards.

                                       6
<PAGE>

19.      FUTURE RIGHTS

         No person shall have any claim or rights to be granted an Award under
the Plan, and no Participant shall have any rights under the Plan to be retained
in the employment of the Company. Likewise, participation in the Plan will not
in any way affect the Company's right to terminate the employment of the
Participant at any time with or without cause. Any discretionary authority held
by the Committee or the Board shall not give rise to any duty on the part of
such body to exercise such discretion for the benefit of any Participant; and
all such discretion may be exercised for the exclusive benefit of the Company.

20.      GOVERNING LAW

         The validity, construction and effect of the Plan and any actions taken
or relating to the Plan shall be determined in accordance with the internal laws
of the State of California and applicable federal law.

21.      SUCCESSORS AND ASSIGNS

The Plan shall be binding on all successors and assigns of a Participant,
including, without limitation, the estate of such Participant and the executor,
administrator or trustee of such estate, or any receiver or trustee in
bankruptcy or representative of the Participant's creditors. However, no Award
or other interest in the Plan may be assigned, pledged or otherwise alienated,
except to the extent permitted in accordance with Section 10 of the Plan and the
applicable Award agreement.

                                       7

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