the Board of Directors or if such day is not a trading day, the first trading day immediately following such date (in such case, the Investment Date). The Record Date for
such dividend payments will be the record date declared by the Board of Directors. Optional cash investments of $10,000 or less will be invested monthly, beginning on the 20th of each month, or if such day is not a trading day, the first trading day
following the 20th, or, in the case of shares of Capital One common stock purchased on the open market, as soon thereafter as determined by the Administrator (in each such case, the Investment Date).
If Capital One approves a Request for Waiver (as defined below) for an optional cash investment of more than $10,000, then such cash
investment will be used to purchase shares of Capital One common stock on one or more dates and at a Purchase Price (as defined below) calculated as specified in the Request for Waiver (in each such case, an Investment Date), subject to
any Threshold Price (as defined below) that Capital One may set. See Questions 11 and 13 for more information on Requests for Waiver, Purchase Price and Threshold Prices.
The Administrator will wait up to three business days after receipt of the check or electronic funds transfer to ensure it receives good funds
and will then seek to purchase shares from optional cash investments promptly on the investment date.
Dividend payment dates historically
have occurred on or about the 15th day of each February, May, August, and November. It is expected that the past pattern with respect to timing of dividend payment dates generally will be followed in the future if the Board of Directors elects to
declare dividends in a given quarter.
There can be no assurance as to the declaration or payment of dividends, and nothing contained in the Plan
obligates Capital One to declare or pay any dividends. The Plan does not represent a change in Capital Ones dividend policy or a guarantee of future dividends, which will continue to be determined by the Board of Directors based upon Capital
Ones earnings, financial condition, and other factors.
10. What is the source of shares to be purchased under the Plan?
All dividends reinvested through the Plan and all optional cash investments will be used to purchase newly issued shares directly from Capital
One, treasury shares held by Capital One, shares through open market purchases, or a combination of the above. Newly issued shares purchased directly from Capital One will consist of authorized but unissued shares of Capital One common
stock.
11. At what price will shares be purchased?
All shares acquired directly from Capital One with reinvested dividends or optional cash investments of $10,000 or less will be acquired at a
price to you (in such case, the Purchase Price) of the average of the daily high and low sales prices, computed up to six decimal places, if necessary, of Capital Ones common stock as reported on the New York Stock Exchange (the
Exchange) on the Investment Date. In such case, the Pricing Period is the Investment Date.
Shares of Capital One
common stock purchased pursuant to a Request for Waiver for optional cash investments of more than $10,000 will be acquired at a price to you (in such case, the Purchase Price) equal to the average of the high and low sales prices,
computed up to six decimal places, if necessary, of Capital Ones common stock on the Exchange for each day during the Pricing Period on which trades are reported on the Exchange (each a Trading Day). The Pricing Period for optional
investments made pursuant to an approved Request for Waiver will be the day or days set forth in the Request for Waiver, which may be the Investment Date or up to ten Trading Days prior to and including an Investment Date. A Request for Waiver may
specify one or more Investment Dates. Shares purchased with optional cash investments of more than $10,000 pursuant to a Request for Waiver may be purchased at a discount from the Purchase Price and may be subject to a Threshold Price, as more fully
described in Question 13.
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