<PAGE>
As filed with the Securities and Exchange Commission on May 17, 1999
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
----------
CAPITAL ONE FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
----------
Delaware 54-171854
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
----------
2980 Fairview Park Drive, Suite 1300
Falls Church, Virginia 22042-4525
(Address, including zip code, of
Registrant's principal executive offices)
----------
CAPITAL ONE FINANCIAL CORPORATION
1999 NON-EMPLOYEE DIRECTORS STOCK INCENTIVE PLAN
(Full title of the plan)
----------
JOHN G. FINNERAN, JR., Esq.
Senior Vice President, General Counsel
and Corporate Secretary
2980 Fairview Park Drive, Suite 1300
Falls Church, Virginia 22042-4525
(703) 205-1000
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
----------
<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE
======================================================================================================
<S> <C> <C> <C> <C> <C>
Title of Security Amount to be Proposed Maximum Proposed Maximum Amount of
to be Registered Registered (1) Offering Price Aggregate Registration
Per Unit (2) Offering Price Fee
- ------------------------------------------------------------------------------------------------------
Common Stock, par value
$.01 per share, 175,000 $167.0625 $29,235,937.50 $8,127.60
including attached
Rights (3)
======================================================================================================
</TABLE>
(1) Represents the maximum number of shares of Common Stock of Capital One
Financial Corporation (the "Company") that may be offered and sold
hereunder. The Common Stock being registered hereby includes associated
Preferred Stock Purchase Rights, which initially are attached to and traded
with the shares of the Registrant's Common Stock. Value attributable to
such rights, if any, is reflected in the market price of the Common Stock.
(2) The maximum offering price per share has been determined solely for the
purpose of calculating the registration fee pursuant to Rules 457(c) and
(h) under the Securities Act based on the average of the high and low
prices for the Common Stock reported on the New York Stock Exchange on May
10, 1999.
(3) The Rights are to purchase the Registrant's Cumulative Participating Junior
Preferred Stock. Until the occurrence of certain prescribed events, none of
which has occurred as of the date of this Registration Statement, the
Rights are not exercisable, are evidenced by the certificates representing
the Registrant's Common Stock, and will be transferred along with, and only
with, the Registrant's Common Stock.
<PAGE>
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
The documents containing the information specified in Part I will be
sent or given to employees as specified by Rule 428(b)(1). Such documents are
not being filed with the Securities and Exchange Commission (the "Commission")
either as part of this Registration Statement or as prospectuses or prospectus
supplements pursuant to Rule 424. Such documents and the documents incorporated
by reference in this Registration Statement pursuant to Item 3 of Part II of
this Form, taken together, constitute a prospectus that meets the requirements
of Section 10(a) of the Securities Act.
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference.
The following documents have been filed by the Registrant with the
Commission and are incorporated herein by reference:
(a) The Registrant's Annual Report on Form 10-K for the year ended
December 31, 1998.
(b) The Registrant's Current Reports on Form 8-K filed January 19, 1999,
April 15, 1999, April 30, 1999 and May 5, 1999.
(c) The Registrant's Proxy Statement on Schedule 14A dated March 20, 1999
for its 1999 Annual Meeting provided, however, that the information
referred to in Item 402(a)(8) of Regulation S-K promulgated by the
Commission shall not be deemed to be specifically incorporated by
reference herein.
(d) The description of the Registrant's common stock on Amendment No. 1 to
Form 8-A dated October 17, 1994.
(e) The description of the Resgistrant's preferred stock purchase rights
on Form 8-A dated November 16, 1995.
All documents subsequently filed by the Registrant pursuant to Sections
13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a
post-effective amendment which indicates that all securities offered have been
sold or which deregisters all securities then remaining unsold, shall be deemed
to be incorporated by reference in this Registration Statement and to be part
hereof from the date of filing of such documents. Any statement contained in any
such incorporated document shall be deemed to be modified or superseded for
purposes of this Registration Statement to the extent that a statement contained
in any other incorporated document subsequently filed (or in this Registration
Statement, with respect to an incorporated document filed prior to the filing
hereof), modifies or supersedes such statement. Any such statement so modified
or superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Registration Statement.
Item 4. Description of Securities.
Not applicable.
<PAGE>
Item 5. Interests of Named Experts and Counsel.
John G. Finneran, Jr., Senior Vice President, General Counsel and Corporate
Secretary of the Registrant, who has rendered the opinion attached hereto as
Exhibit 5 holds 6,357 shares of Common Stock and options to purchase an
additional 112,857 shares of Common Stock issued under the Registrant's 1994
Stock Incentive Plan.
Item 6. Indemnification of Directors and Officers.
Under Section 145 of the General Corporation Law of the State of
Delaware (the "GCL"), a corporation may indemnify any person who was or is a
party, or is threatened to be made a party, to any action, suit or proceeding by
reason of the fact that he or she is or was a director or officer of such
corporation if such person acted in good faith and in a manner he or she
reasonably believed to be in and not opposed to the best interest of the
corporation and, with respect to a criminal action or proceeding, such person
had no reasonable cause to believe that his or her conduct was unlawful, except
that, in the case of any action or suit by or in the right of the corporation,
no indemnification is permitted if the person shall be adjudged liable to the
corporation other than indemnification for such expenses as a court shall
determine such person is fairly and reasonably entitled to.
Article XI of the Registrant's Restated Certificate of Incorporation
and Section 6.7 of the Registrant's By-laws provide, in general, for mandatory
indemnification of directors and officers to the fullest extent permitted from
time to time by the GCL or any other applicable law, against liability incurred
by them in proceedings instituted or threatened against them by third parties,
or by or on behalf of the Registrant itself, relating to the manner in which
they performed their duties unless they have been guilty of willful misconduct
or of a knowing violation of the criminal law.
Under Article X of the Registrant's Restated Certificate of
Incorporation, a director of the Registrant is not personally liable to the
Registrant or its stockholders for monetary damages for breach of fiduciary duty
as a director, except for liability (i) for any breach of the director's duty of
loyalty to the Registrant or its stockholders, (ii) for acts or omissions not in
good faith or which involve intentional misconduct or a knowing violation of
law, (iii) under Section 174 of the GCL, or (iv) for any transaction from which
the director derived an improper personal benefit.
The Registrant also maintains a directors and officers insurance policy
generally covering the activities for which such persons are entitled to
indemnification.
Item 7. Exemption from Registration Claimed.
Not applicable.
Item 8. Exhibits.
<TABLE>
<CAPTION>
Exhibit Description Reference
Number ----------- ---------
-------
<S> <C> <C> <C>
3.1 Restated Certificate of Incorporation of Capital Incorporated by reference to
One Financial Corporation Exhibit 3.1 of the Registrant's
Annual Report on Form 10-K for
the year ended December 31, 1994
3.2 Restated Bylaws of Capital One Financial Corporation Incorporated by reference to Exhibit
(as amended January 24, 1995) 3.2 of the Registrant's Annual Report
on Form 10-K for the year ended
December 31, 1994
4 Capital One Financial Corporation 1999 Filed herewith
Non-Employee Directors Stock Incentive Plan
4.1 Rights Agreement, dated as of November 16, 1995, Incorporated by reference
between Capital One Financial Corporation and First to the Registrant's Current
Chicago Trust Company of New York (as successor to Report on Form 8-K, filed
Mellon Bank, N.A.), as Rights Agent November 16, 1995
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> C> <C> <C>
4.2 Amendment Number 1 Rights Agreement, dated as of Incorporated by reference
April 29, 1999, between Capital One Financial to the Registrant's Current
Corporation and First Chicago Trust Company of Report on Form 8-K filed
New York (as successor to Mellon Bank, N.A.), May 5, 1999
as Rights Agent
5 Opinion of Counsel Filed herewith
23.1 Consent of Counsel Contained in Exhibit 5
and incorporated herein
by reference
23.2 Consent of Independent Auditors Filed herewith
24 Power of Attorney Set forth on signature page
</TABLE>
Item 9. Undertakings.
(a) The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement:
(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933, as amended (the "Securities Act").
(ii) To reflect in the prospectus any facts or events arising after
the effective date of the Registration Statement (or the most
recent post-effective amendment thereof), which individually or
in the aggregate, represent a fundamental change in the
information set forth in the Registration Statement.
Notwithstanding the foregoing, any increase or decrease in volume
of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any
deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed
with the Securities and Exchange Commission pursuant to Rule
424(b) under the Securities Act if, in the aggregate, the changes
in volume and price represent no more than a 20% change in the
maximum aggregate offering price set forth in the "Calculation of
Registration Fee" table in the effective registration statement.
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the Registration
Statement or any material change to such information in the
Registration Statement;
provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) will not
apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports filed
with or furnished to the Securities and Exchange Commission by the
Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act
that are incorporated by reference in this Registration Statement.
<PAGE>
(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be
deemed to be a new registration statement relating to the
securities offered thereby, and the offering of such
securities at that time shall be deemed to be the initial bona
fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities registered which remain unsold
at the termination of the offering.
(b) The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of the
Registrant's annual report pursuant to Section 13(a) or Section 15(d) of
the Exchange Act that is incorporated by reference in the Registration
Statement shall be deemed to be a new registration statement relating to
the securities offered thereby, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the Securities Act
may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Securities Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or paid by a director,
officer or controlling person of the Registrant in the successful defense
of any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act and will be governed by
the final adjudication of such issue.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the Commonwealth of Virginia, on the 14th day of May, 1999.
CAPITAL ONE FINANCIAL CORPORATION
By /s/ John G. Finneran, Jr.
--------------------------------------
John G. Finneran, Jr.
Senior Vice President, General Counsel
and Corporate Secretary
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below constitutes and appoints David M. Willey and John G. Finneran, Jr., Esq.
his true and lawful attorney-in-fact and agent, for him, with full power of
substitution and resubstitution, for him and in his name, place and stand, in
any and all capacities, to sign any and all amendments (including post-effective
amendments) to this Registration Statement, and to file the same with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent full power and authority to do and perform each and every act and thing
requisite and necessary to be done, as fully to all interests and purposes as he
might or could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent or his substitute or substitutes may lawfully do or
cause to be done by virtue hereof.
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed below by the following persons in the
capacities indicated below on the 14th day of May, 1999.
<TABLE>
<CAPTION>
SIGNATURE TITLE
<S> <C>
/s/ Richard D. Fairbank
- -------------------------------------- Director, Chairman and Chief Executive Officer
Richard D. Fairbank (Principal Executive Officer)
/s/ Nigel W. Morris
- -------------------------------------- Director, President and Chief Operating Officer
Nigel W. Morris
/s/ David M. Willey
- -------------------------------------- Senior Vice President, Corporate Financial
David M. Willey Management and Treasurer
(Principal Accounting and Financial Officer)
/s/ W. Ronald Deitz
- -------------------------------------- Director
W. Ronald Dietz
/s/ James A. Flick, Jr.
- -------------------------------------- Director
James A. Flick, Jr.
/s/ Patrick W. Gross
- -------------------------------------- Director
Patrick W. Gross
/s/ James V. Kimsey
- -------------------------------------- Director
James V. Kimsey
/s/ Stanley I. Westreich
- -------------------------------------- Director
Stanley I. Westreich
</TABLE>
<PAGE>
Exhibit Index
Exhibit Description Sequential
Number ----------- Page Number
------- ------------
4 Capital One Financial Corporation 1999 Non-Employee 9
Directors Stock Incentive Plan
5 Opinion of Counsel 16
23.2 Consent of Independent Auditors 17
<PAGE>
Exhibit 4
CAPITAL ONE FINANCIAL CORPORATION
1999 NON-EMPLOYEE DIRECTORS STOCK INCENTIVE PLAN
(Effective as of April 29, 1999)
1. Purpose. The purpose of the Capital One Financial Corporation 1999
Non-Employee Directors Stock Incentive Plan (the "Plan") is to encourage
ownership in the Company by non-employee members of the Board of Directors, in
order to promote long-term shareholder value and to provide non-employee members
of the Board with an incentive to continue as directors of the Company.
2. Definitions. As used in the Plan, the following terms have the meanings
indicated:
A. "Board" means the Board of Directors of the Company.
B. "Change of Control" means:
(i) The acquisition by individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934,as amended (the "Exchange Act")) of
beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% (or, if such shares
are purchased from the Company, 40%) or more of either (A) the
then outstanding shares of common stock of the Company (the
"Outstanding Company Common Stock") or (B) the combined voting
power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the
"Company Voting Securities"), provided, however, that any
acquisition by (x) the Company or any of its subsidiaries, or any
employee benefit plan (or related trust) sponsored or maintained
by the Company or any of its subsidiaries or (y) any corporation
with respect to which, immediately following such acquisition,
more than 60% of, respectively, the then outstanding shares of
common stock of such corporation and the combined voting power of
the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company
Common Stock and Company Voting Securities immediately prior to
such acquisition in substantially the same proportion as their
ownership, immediately prior to such acquisition, of the
<PAGE>
Outstanding Company Common Stock and Company Voting Securities,
as the case may be, shall not constitute a Change of Control; or
(ii) Individuals who constituted the Board as of January 1,
1999 (the "Incumbent Board") cease for any reason to constitute
at least a majority of the Board, provided that any individual
becoming a director subsequent to January 1, 1999 whose
appointment to fill a vacancy or to fill a new Board position or
whose nomination for election by the Company's shareholders was
approved by a vote of at least a majority of the directors then
comprising 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 is in connection with an actual or threatened election
contest relating to the election of the Directors of the Company
(as such terms are used in Rule 14a-11 of Regulation 14A
promulgated under the Exchange Act); or
(iii) Approval by the shareholders of the Company of a
reorganization, merger or consolidation (a "Business
Combination"), in each case, with respect to which all or
substantially all of the individuals and entities who were the
respective beneficial owners of the Outstanding Company Common
Stock and Company Voting Securities immediately prior to such
Business Combination do not in the aggregate, immediately
following such Business Combination, beneficially own, directly
or indirectly, more than 60% of, respectively, the then
outstanding shares of common stock and the combined voting power
of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of
the corporation resulting from such Business Combination in
substantially the same proportion as their ownership immediately
prior to such Business Combination of the Outstanding Company
Common Stock and Company Voting Securities, as the case may be;
or
(iv) (A) a complete liquidation or dissolution of the
Company or (B) sale or other disposition of all or substantially
all of the assets of the Company other than to a corporation with
respect to which, immediately following such sale or disposition,
more than 60% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the
election of directors is then beneficially owned, directly or
indirectly, in the aggregate by all or substantially all of the
individuals and
<PAGE>
entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Company Voting Securities
immediately prior to such sale or disposition in substantially
the same proportion as their ownership of the Outstanding Company
Common Stock and Company Voting Securities, as the case may be,
immediately prior to such sale or disposition.
C. "Company" means Capital One Financial Corporation, a Delaware
corporation, or any successor thereto.
D. "Company Stock" means Common Stock of the Company or any
securities substituted for Common Stock of the Company pursuant
to Section 10.
E. "Date of Grant" means the date as of which a director is
awarded an Option pursuant to Section 7.
F. "Disability" means the inability to perform the services to
the Company as a director as determined by the Board, and such
determination shall be conclusive.
G. "Eligible Director" means a director described in Section 4.
H. "Fair Market Value" means as of the date for which a value
determination is being made, the average of the Common Stock's
highest and lowest prices on such date as reported on The New
York Stock Exchange-Composite Transactions Tape (or, if the New
York Stock Exchange is not open for trading on such date, for the
last preceding day on which Company Stock was traded). In the
absence of any such sale, fair market value means the average of
the highest bid and lowest asked prices of a share of Company
Stock on such date as reported by such source. In the absence of
such average or if shares of Company Stock are no longer traded
on The New York Stock Exchange, the fair market value shall be
determined by the Board using any reasonable method in good
faith.
I. "IRC" means the Internal Revenue Code of 1986, as amended.
J. "Option" or "Options" means the right to purchase Company
Stock subject to the terms and conditions set forth in Section 7.
K. "Subsidiary" means a corporation or other entity more than 50%
of whose voting shares are owned directly or indirectly by the
Company.
3. Administration.
A. The Board shall administer the Plan. The award of Options
under the Plan shall be as described in Section 7. However, the
Board shall have all powers vested in it by the terms of the
<PAGE>
Plan, including, without limitation, the authority (within the
limitations described herein) to prescribe the form of the
agreement applicable to evidence the award of Options under the
Plan, to construe the Plan, to determine all questions arising
under the Plan, and to adopt and amend rules and regulations for
the administration of the Plan as it may deem desirable. Any
decision of the Board in the administration of the Plan, as
described herein, shall be final and conclusive. The Board may
act only by a majority of its members in office, except that
members thereof may authorize any one or more of their number or
any officer of the Company to execute and deliver documents on
behalf of the Board.
B. The Board shall have general authority to impose any
limitation or condition upon an Option that the Board deems
appropriate to achieve the objectives of the Option and the Plan and,
in addition, and without limitation and in addition to powers set
forth elsewhere in the Plan, shall have the power and complete
discretion to determine (a) which Eligible Directors shall receive an
Option and the nature of the Option, (b) the number of shares of
Company Stock to be covered by each Option, (c) the Fair Market Value
of Company Stock, (d) the time or times when an Option shall be
granted, (e) whether an Option shall become vested over a period of
time and when it shall be fully vested, (f) when Options may be
exercised, (g) whether a Disability exists, (h) the manner in which
payment will be made upon the exercise of Options, (i) notice
provisions relating to the sale of Company Stock acquired under the
Plan, and (j) any additional requirements relating to Options that the
Board deems appropriate.
C. No member of the Board shall be liable for any action,
omission, or determination relating to the Plan, and the Company shall
indemnify and hold harmless each member of the Board and each other
employee or consultant of the Company to whom any duty or power
relating to the administration or interpretation of the Plan has been
delegated against any cost or expense (including counsel fees) or
liability arising out of any action, omission or determination
relating to the Plan, to the maximum extent permitted by law.
4. Participation in the Plan. Each director of the Company who is not
otherwise an employee of the Company or any Subsidiary on the Date of Grant of
an Option under the Plan shall be eligible to participate in the Plan.
5. Stock Subject to the Plan. Subject to Section 10 of the Plan, there
shall be reserved for issuance under the Plan an aggregate of 175,000 shares of
Company Stock, which shall be treasury shares. Shares granted under the Plan
subject to Options that expire or otherwise terminate unexercised may again be
subjected to a grant under the Plan. The Board is expressly authorized to grant
an Option to an optionee conditioned upon the surrender for cancellation of an
existing Option. For purposes of determining the number of shares that are
available for Options under the Plan, such number shall include the number of
shares surrendered by an optionee in payment of the exercise price of an Option.
6. Non-Statutory Stock Options. All Options granted under the Plan shall be
non-statutory in nature and shall not be entitled to special tax treatment under
IRC Section 422.
7. Terms, Conditions and Award of Options. The Board may award Options to
Eligible Directors under this Plan from time to time as it deems appropriate.
Each award of an Option shall be evidenced by written agreement between the
Company and the Eligible Director in such form as the Board shall from time to
time approve, stating the number of shares for which Options are granted, the
Option exercise price per share and the conditions to which the grant and
exercise of the Options are subject.
<PAGE>
A. Option Exercise Price. The Option exercise price shall be the
Fair Market Value of the shares of Company Stock subject to such
Option on the Date of Grant.
B. Options Not Transferable. Options, by their terms, shall not
be transferable by the optionee except by will or by the laws of
descent and distribution and shall be exercisable, during the
optionee's lifetime, only by the optionee or by his guardian or
legal representative. An Option transferred by will or by the
laws of descent and distribution may be exercised by the
optionee's personal representative within one year of the date of
the optionee's death to the extent the optionee could have
exercised the Option on the date of his death, but in any event
not later than the expiration date of the Option exercise period.
The Board is expressly authorized, in its discretion, to provide
that all or a portion of an Option may be granted to an optionee
upon terms that permit transfer of the Option in a form and
manner determined by the Board. Any person to whom an Option is
transferred pursuant to this Section 7 shall agree in writing to
be bound by the terms of the Plan and the stock option agreement
for such Option as if such transferee had been an original
signatory thereto, and to execute and/or deliver to the Board any
documents as may be requested by the Board from time to time.
C. Exercise of Options. An Option shall be exercisable on the
terms and conditions determined by the Board; provided, however,
that no Option may be exercised:
(i) if sooner terminated in accordance with the terms of the
Plan or the Option, or later than ten (10) years from the Date of
Grant; and
(ii) unless optionee delivers payment in cash in the amount
of the full Option exercise price for the shares of Company Stock
being acquired thereunder provided that if the terms of an Option
so permit, the optionee may (i) deliver Company Stock owned by
the optionee (valued at Fair Market Value on the date of
exercise) in satisfaction of all or any part of the exercise
price or (ii) deliver a properly executed exercise notice
together with irrevocable instructions to a broker to promptly
deliver to the Company the amount of the sale or loan proceeds to
pay the exercise price.
D. Change of Control. The Board may, in its discretion, grant
Options which by their terms become fully exercisable upon a
Change of Control, notwithstanding other conditions on
exercisability in the stock option agreement.
8. Termination, Modification, Change. If not sooner terminated by the
Board, the Plan shall terminate at the close of business on April 28, 2009. No
Options shall be granted under the Plan after its termination. The Board may
terminate the Plan or may amend the Plan in such respects as it shall deem
<PAGE>
advisable, including amendments that the Board deems appropriate to ensure
compliance with applicable law. The termination or amendment of the Plan shall
not, without the consent of the optionee, detrimentally affect an optionee's
rights under an Option previously granted to him, except such termination or
amendment as the Board deems appropriate to ensure compliance with applicable
law. Notwithstanding the foregoing, the Board may terminate any Option
previously granted to an optionee and any agreement relating thereto in whole or
in part provided that upon any such termination the Company in full
consideration of the termination of such Option or portion thereof pays to such
optionee an amount in cash for each share of Company Stock subject to such
Option or portion thereof being terminated equal to the excess, if any, of (a)
the Fair Market Value of a share of Company Stock over (b) the exercise price
per share of such Option or, if the Board permits and the optionee elects,
accelerates the exercisability of such optionee's Option or portion thereof (if
necessary) and allows such optionee 30 days to exercise such Option or portion
thereof before the termination of such Option or portion thereof. The Board
shall also have the power to amend the terms of previously granted Options so
long as the terms as amended are consistent with the terms of the Plan and
provided that, except for such amendments as the Board deems appropriate to
ensure compliance with applicable law, the consent of the optionee is obtained
with respect to any amendment that would be detrimental to him.
9. Limitation of Rights.
A. No Right to Continue as a Director. Neither the Plan nor the
award of an Option, nor any other action taken pursuant to the
Plan, shall constitute or be evidence of any agreement or
understanding, express or implied, that the Company will retain
any person as a director for any period of time.
B. No Shareholders' Rights Under Options. Company may place on
any certificate representing Company Stock issued upon the
exercise of an Option any legend deemed desirable by the
Company's counsel to comply with Federal or state securities
laws, and the Company may require of the optionee a customary
written indication of his investment intent. Until the optionee
has made any required payment and has had issued to him a
certificate (whether original, book-entry or otherwise) for the
shares of Company Stock acquired, he shall possess no shareholder
rights with respect to the shares.
10. Changes in Capital Structure.
A. In the event of a stock dividend, stock split or combination
of shares, spin-off, recapitalization or merger in which the
Company is the surviving corporation, a consolidation or a merger
in which the Company is not the surviving corporation, a
transaction that results in the acquisition of substantially all
of the Company's outstanding stock by a single person or entity,
or a sale or transfer of substantially all of the Company's
assets, or other change in the Company's capital stock
(including, but not limited to, the creation or issuance to
shareholders generally of rights, options or warrants for the
purchase of common stock or preferred stock of the Company), the
Board (whose determination shall be binding on all persons) may
<PAGE>
take such actions with respect to the Plan and any outstanding Options as the
Board deems appropriate, including adjusting appropriately the number and kind
of shares of stock or securities of the Company to be subject to the Plan and to
Options then outstanding or to be granted under the Plan, the maximum number of
shares or securities which may be delivered under the Plan, the exercise price
and any other relevant provisions. If the adjustment would produce fractional
shares with respect to any unexercised Option, the Board may adjust
appropriately the number of shares covered by the Option so as to eliminate the
fractional shares.
B. Notwithstanding anything in the Plan to the contrary, the
Board may take the foregoing actions without the consent of any
optionee, and the Board's determination shall be conclusive and
binding on all persons for all purposes.
11. Notice. All notices and other communications required or permitted to
be given under the Plan shall be in writing and shall be deemed to have been
duly given if delivered personally or mailed first class, postage prepaid, as
follows: (a) if to the Company, at its principal business address to the
attention of the Secretary; and (b) if to any optionee, at the last address of
the optionee known to the sender at the time the notice or other communication
is sent.
12. Governing Law. The terms of the Plan shall be governed by the laws of
the Commonwealth of Virginia.
<PAGE>
[CAPITAL ONE LETTERHEAD]
Exhibit 5
May 14, 1999
Board of Directors
Capital One Financial Corporation
2980 Fairview Park Drive, Suite 1300
Falls Church, Virginia 22042
Gentlemen:
As the General Counsel of Capital One Financial Corporation
(the "Company"), I have participated in the preparation of a Registration
Statement on Form S-8 to be filed with the Securities and Exchange Commission
pursuant to the Securities Act of 1933, as amended (the "Registration
Statement"), with respect to the registration of 175,000 shares of the Company's
common stock, par value $.01 per share, (the "Common Stock") authorized for
issuance upon the exercise of options granted under the Company's 1999
Non-Employee Directors Stock Incentive Plan (the "Plan"). I am familiar with the
Registration Statement and have examined such corporate documents and records,
including the Plan, and such matters of law as I have considered appropriate to
enable me to render the following opinion.
On the basis of the foregoing, I am of the opinion that the
shares of Common Stock have been duly authorized and when issued and sold
consistent with the terms of the Plan and the related resolutions of the Board
of Directors and the Compensation Committee, will be validly issued, fully paid
and non-assessable shares of the Company's Common Stock.
I hereby consent to the filing of this opinion as Exhibit 5 to
the Registration Statement and to the reference to me under the caption
"Interests of Named Experts and Counsel" in the Registration Statement.
Very truly yours,
/s/ John G. Finneran, Jr.
John G. Finneran, Jr., Esq.
General Counsel
<PAGE>
Exhibit 23.2
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 333- ) pertaining to the Capital One Financial Corporation 1999
Non-Employee Directors Stock Incentive Plan of our report dated January 19,
1999, with respect to the consolidated financial statements of Capital One
Financial Corporation incorporated by reference in its Annual Report (Form 10-K)
for the year ended December 31, 1998, filed with the Securities and Exchange
Commission.
/s/ Ernst & Young, LLP
- -----------------------
Washington, D.C.
May 12, 1999
