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| UNITED STATES                      |
|------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION |
| WASHINGTON, D.C. 20549             |

| FORM 10-K |
|-----------|

| T      | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     |
|--------|----------------------------------------------------------|
|   | SECURITIES EXCHANGE ACT OF 1934                          |
|   |                                                     |
|   | For the fiscal year ended December 31, 2010              |
|   |                                                     |
|   | OR                                                       |
|   |                                                     |
| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|   | SECURITIES EXCHANGE ACT OF 1934                          |

| MICHIGAN                                 |   | 38-2761672             |
|------------------------------------------|--------|------------------------|
| (State or other jurisdiction of          |   | (IRS Employer          |
| incorporation or organization)           |   | Identification Number) |
| Capitol Bancorp Center                   |   |                   |
| 200 N. Washington Square                 |   |                   |
| Lansing, Michigan                        |   | 48933                  |
| (Address of principal executive offices) |   | (Zip Code)             |

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| Large accelerated filer   o |   | Accelerated filer   o |   | Non-accelerated filer   o |   | Smaller Reporting Company   x |
|---------------------------------------|--------|---------------------------------|--------|-------------------------------------|--------|-----------------------------------------|

| Class                                |   | Outstanding at March 15, 2011 |
|--------------------------------------|--------|-------------------------------|
| Common Stock, no par value per share |   | 41,116,757 shares             |

| Document                                                                                |   | Parts Into Which Incorporated |
|-----------------------------------------------------------------------------------------|--------|-------------------------------|
| Annual Report to Shareholders for the Year EndedDecember 31, 2010 (Annual Report)  |   | Parts I, II and IV            |

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| Item of Form 10-KPart I                                                                                                             | Incorporation by Reference From:                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Item 1.  Business                                                                                                         | Pages F-11 – F-17, F-30 – F-45, F-59 – F-61, F-81 – F-82and F-97 – F-100, Financial Information Section of Annual Report  |
| Item 1A.  Risk Factors                                                                                                    | Page F-49, Financial Information Section of Annual Report                                                                                               |
| Item 2.  Properties                                                                                                       | Pages F-59 – F-60 and F-78, Financial Information Section of Annual    Report                                                           |
| Part II                                                                                                                             |                                                                                                                                                         |
| Item 5.  Market for Registrant's Common Equity,Related Stockholder Matters and IssuerPurchases of Equity Securities  | Pages F-2 – F-6, F-82 – F-84 and F-97 – F-100, Financial Information    Section of Annual Report                            |
| Item 6.  Selected Financial Data                                                                                          | Page F-2, Financial Information Section of Annual Report                                                                                                |
| Item 7.  Management's Discussion and Analysis ofFinancial Condition and Results ofOperations                         | Pages F-6 – F-49, Financial Information Section of Annual Report                                                                                  |
| Item 7A. Quantitative and Qualitative DisclosuresAbout Market Risk                                                                  | Pages F-6 – F-10 and F-41 – F-44, Financial Information Section ofAnnual Report                                                             |
| Item 8.  Financial Statements and SupplementaryData                                                                       | Pages F-2 and F-54 – F-105, Financial Information Section ofAnnual Report                                                                         |
| Item 9A. Controls and Procedures                                                                                                    | Pages F-50 – F-51, Financial Information Section of Annual Report                                                                                 |
| Part IV                                                                                                                             |                                                                                                                                                         |
| Item 15. Exhibits and Financial Statement Schedules                                                                                 | Pages F-53 – F-105, Financial Information Section of Annual Report                                                                                     |

| "Annual Report" | means the 2010 Annual Report of Capitol Bancorp Limited (Capitol) provided to the Commission pursuant to Rule 14a-3(b).  Capitol's 2010 Annual Report has a Financial Information Section and is filed as Exhibit 13 with this Form 10-K report. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note: | The page number references herein are based on the paper version of the referenced documents.  Accordingly, those page number references may differ from the electronically filed versions of those documents. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| CAPITOL BANCORP LTD. |
|----------------------|

|  PART I                                                                                                                                                 | Page           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
| ITEM  1.      Business                                                                                                    | 8         |
| ITEM 1A.    Risk Factors                                                                                                                      | 26        |
| ITEM 1B.    Unresolved Staff Comments                                                                                                         | 40        |
| ITEM  2.      Properties                                                                                                  | 40        |
| ITEM  3.      Legal Proceedings                                                                                           | 41        |
| ITEM  4.      (Removed and Reserved)                                                                                      | 41        |
| PART II                                                                                                                                                      |           |
| ITEM  5.      Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchasesof Equity Securities |  42  |
| ITEM 6.       Selected Financial Data                                                                                          | 43        |
| ITEM  7.      Management's Discussion and Analysis of Financial Condition and Results of Operations                       | 43        |
| ITEM 7A.    Quantitative and Qualitative Disclosures About Market Risk                                                                        | 43        |
| ITEM  8.      Financial Statements and Supplementary Data                                                                 | 43        |
| ITEM  9.      Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                        | 43        |
| ITEM 9A.    Controls and Procedures                                                                                                           | 44        |
| ITEM 9B.    Other Information                                                                                                                 | 44        |
| PART III                                                                                                                                                     |           |
| ITEM 10.     Directors, Executive Officers and Corporate Governance                                                                      | 45        |
| ITEM 11.     Executive Compensation                                                                                                      | 55        |
| ITEM 12.     Security Ownership of Certain Beneficial Owners and Management and RelatedStockholder Matters                               |  75  |
| ITEM 13.     Certain Relationships and Related Transactions and Director Independence                                                    | 76        |
| ITEM 14.     Principal Accountant Fees and Services                                                                                      | 79        |
| PART IV                                                                                                                                                      |           |
| ITEM 15.     Exhibits and Financial Statement Schedules                                                                                  | 80             |

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| ·  | prohibiting the payment of principal and interest on subordinated debt;                                               |
|--------------|----------------------------------------------------------------------------------------------------------------------------|
| ·  | prohibiting the holding company from obtaining distributions from the institution without prior regulatory approval;  |
| ·  | placing limits on asset growth and restrictions on activities;                                                        |
| ·  | placing additional restrictions on transactions with affiliates;                                                      |
| ·  | restricting the interest rates the institution may pay on deposits;                                                   |
| ·  | prohibiting the institution from accepting deposits from correspondent banks; and                                     |
| ·  | in the most severe cases, appointing a conservator or receiver for the institution.                                        |

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| ·   | Actual or anticipated variations in quarterly results of operations; |
|--------------------|----------------------------------------------------------------------|

| ·   | Recommendations by securities analysts, if any; |
|--------------------|-------------------------------------------------|

| ·   | Operating and stock price performance of other companies that investors deem comparable to Capitol's common stock interest; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | News reports relating to trends, concerns and other issues in the financial services industry; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | Perceptions in the marketplace regarding Capitol, its banking subsidiaries and/or its competitors; |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | New technology used or services offered by competitors; |
|--------------------|---------------------------------------------------------|

| ·   | Significant acquisitions or business combinations, strategic partnerships, joint venture or capital commitments by or involving Capitol or Capitol's competitors; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Changes in government regulations; or |
|--------------------|---------------------------------------|

| ·   | Geopolitical conditions such as acts or threats of terrorism or military conflicts. |
|--------------------|-------------------------------------------------------------------------------------|

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| ·   | adequate capital and financial condition; |
|--------------------|-------------------------------------------|

| ·   | permissible types and amounts of extensions of credit and investments; |
|--------------------|------------------------------------------------------------------------|

| ·   | permissible nonbanking activities; and |
|--------------------|----------------------------------------|

| ·   | restrictions on dividend payments. |
|--------------------|------------------------------------|

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| ·   | Create a new agency, the Consumer Financial Protection Bureau, responsible for implementing, examining and enforcing compliance with federal consumer financial laws; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Apply the same leverage and risk-based capital requirements that apply to insured depository institutions to most bank holding companies, which, among other things, will require Capitol to deduct all trust-preferred securities issued on or after May 19, 2010 from Tier 1 capital.  Existing trust-preferred securities issued prior to May 19, 2010 for all bank holding companies with less than $15 billion in total consolidated assets as of December 31, 2009 are exempt from this requirement and as a result, Capitol is exempt from this provision subject to certain other limitations; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Require bank holding companies to be well-capitalized and well-managed in order to engage in expanded financial activities permissible for financial holding companies and to acquire banks located outside their home state; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Broaden the base for FDIC insurance assessments from the amount of insured deposits to average total consolidated assets less average tangible equity during the assessment period, which generally is expected to result in an increase in the level of assessments; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Permanently increase FDIC deposit insurance to $250,000 and provide unlimited FDIC deposit insurance until December 31, 2012 for noninterest-bearing deposits at all insured depository institutions; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Permit national banks and insured state banks to engage in de novo interstate branching if the laws of the state where the new branch is to be established would permit the establishment of the branch if the national bank or insured state bank were chartered by such state; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Implement corporate governance revisions, including with regard to executive compensation and proxy access by shareholders, that apply to all public companies, not just financial institutions; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Repeal the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                     |   | (a)                                                                                                |         |   | (b)                                                                          |   |        | (c)                                                                                                                                    |   |
|---------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------------|--------|------------------------------------------------------------------------------|--------|-------------|----------------------------------------------------------------------------------------------------------------------------------------|--------|
| Plan category                                                 |   |  Number of securities tobe issued upon exerciseof outstanding options,warrants and rights (1) |         |   | Weighted-averageexercise price ofoutstanding options,warrants and rights (1) |   |        | Number of securitiesremaining available forfuture issuance under equitycompensation plans(excluding securities reflectedin column (a)) |   |
|                                                          |   |                                                                                               |         |   |                                                                         |   |        |                                                                                                                                   |   |
| Equity compensation plans approved by security holders*       |   |                                                                                               | 1,628,723    |   |                                                                         | $      | 21.73       |                                                                                                                                   |   |   | 876,947 |   |
| Equity compensation plans not approved by security holders(1) |   |                                                                                               | --           |   |                                                                         |   | --          |                                                                                                                                   |   |   | -- |   |
| Equity compensation plans resulting from share exchanges      |   |                                                                                               |  66,879 |   |                                                                         |   |  16.40 |                                                                                                                                   |   |   |  -- |   |
|                                                          |   |                                                                                               |         |   |                                                                         |   |        |                                                                                                                                   |   |   |   |   |
| Total                                                         |   |                                                                                               | 1,745,602    |   |                                                                         | $      | 21.53       |                                                                                                                                   |   |   | 876,947 |   |

| (1)     | Options issued pursuant to employment agreements with various officers of Capitol and its subsidiaries.                                                                                                                                                                                                                                                                                                                                                                |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  * | Does not include shares that may be issued if Capitol elects to pay awards made under the Capitol Bancorp Ltd. Management Incentive Plan in the form of shares of Capitol's common stock.  Also does not include shares that were approved to be issued under the 2007 Incentive Plan, which includes a provision increasing the shares available for the plan in an amount equal to 2% of the outstanding shares of common stock as of December 31 of each year. |

| E. | Performance Graph: |
|----|--------------------|

| G. | Prior grants of 2,452 and 3,370 restricted shares of Capitol's common stock to Joseph D. Reid, Capitol's Chairman and CEO, pursuant to the terms of the Capitol Bancorp Ltd. Management Incentive Plan, became vested on February 6, 2010 and August 7, 2010, respectively.  The shares were not registered under the Securities Act of 1933. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Lyle W. Miller         | Mr. Miller is a vice chairman of Capitol's board of directors.  He is president of L.W. Miller Holding Company. Mr. Miller is 67 years of age and has served as a founding director of Capitol and/or its first bank affiliate since 1982.  Mr. Miller also serves as a member of the board of directors of Amera Mortgage Corporation.                                                                                                                                                                                                                      |
|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Paul R. Ballard        | Mr. Ballard is a retired executive vice president of Capitol and retired president and chief executive officer of Portage Commerce Bank, Capitol's second bank affiliate.  Mr. Ballard has been a director of Capitol since 1990.  Mr. Ballard is 61 years of age.                                                                                                                                                                                                                                                                                           |
| Lawrence Connell       | Mr. Connell is a vice chairman of Capitol's board of directors and also serves as vice chairman and a principal officer of Capitol's affiliate Michigan Commerce Bank. He most recently served as a consultant to Promontory Financial Group, L.L.C., and has also served as a senior consultant for the U.S. Treasury Department, Office of Technical Assistance, as chairman of the National Credit Union Administration and as bank commissioner for the State of Connecticut.  Mr. Connell is 74 years of age and has served on Capitol's board since April 2010.  |
| Lewis D. Johns         | Mr. Johns is the president of Mid-Michigan Investment Company.  Mr. Johns formerly served as a member of the board of directors of Capitol's affiliate, Nevada Community Bancorp Limited, which was merged with and into Capitol.  He has served on the board of directors of Capitol and/or Capitol's first bank affiliate since 1982 as a founding director and is 67 years of age.                                                                                                                                                                        |
| Calvin D. Meeusen, CPA | Mr. Meeusen is a certified public accountant.  He served as a member of the board of directors of Grand Haven Bank and Kent Commerce Bank, which merged with certain other affiliates of Capitol in 2009.  Mr. Meeusen currently serves as a member of the board of directors of the merged entity, which was renamed Michigan Commerce Bank following the merger.  He has served as a member of the board of directors of Capitol since January 2011 and is 67 years of age.                                                                           |

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| Cristin K. Reid  | Ms. Reid is the corporate president of Capitol.  She was previously chief operating officer, chief administrative officer, executive vice president, general counsel and has served in other various executive capacities at Capitol since 1997.  Ms. Reid was appointed to Capitol's board of directors in 2001.  She formerly served on the boards of the following affiliates of Capitol: Nevada Community Bancorp Limited, which was merged with and into Capitol; Camelback Community Bank, which was merged with and into Sunrise Bank of Arizona; and Portage Commerce Bank and Ann Arbor Commerce Bank, which were both affiliates of Capitol until they were merged with and into Michigan Commerce Bank in 2009.  She is currently chairman of Capitol's affiliate Capitol National Bank, and the chairman and chief executive officer of Capitol Development Bancorp Limited III, IV, V, VI, VII and VIII.  Ms. Reid is 42 years of age, a daughter of Joseph D. Reid and wife of Brian K. English, Capitol's general counsel.  |
|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Michael J. Devine        | Mr. Devine is an attorney and was previously a member of the board of directors of Sun Community Bancorp Limited, which was merged with and into Capitol.  Mr. Devine is 69 years of age, has served as a director of Capitol since 2002 and has served as a director and/or chairman of several of Capitol's bank affiliates.   Additionally, he currently serves as chief of the Special Assets Group of Michigan Commerce Bank, an affiliate of Capitol.                                                                                                                                                                                               |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Gary A. Falkenberg, D.O. | Dr. Falkenberg is a retired doctor of osteopathic medicine.  Dr. Falkenberg was a founding director of Capitol and has served as a director of Capitol and/or its first bank affiliate since 1982.  Dr. Falkenberg is 72 years of age.                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Joel I. Ferguson         | Mr. Ferguson is chairman of Ferguson Development, L.L.C. and a director of Maxco, Inc.  Mr. Ferguson formerly served as a member of the board of directors of Capitol's affiliate, Nevada Community Bancorp Limited, which was merged with and into Capitol.  Mr. Ferguson joined the board of directors of Capitol and/or its first bank affiliate in 1982 as a founding director.  Mr. Ferguson is 72 years of age.                                                                                                                                                                                                                                |
| H. Nicholas Genova       | Mr. Genova is chairman and chief executive officer of Washtenaw News Company, Inc. and president of H. N. Genova Development Company and Delivery Unlimited.  Mr. Genova previously served on the board of directors of Ann Arbor Commerce Bank, an affiliate of Capitol, until it was merged with certain other affiliates of Capitol and was renamed Michigan Commerce Bank in 2009.  Mr. Genova was elected to Capitol's board in 1992 and is 71 years of age.                                                                                                                                                                                              |
| Steven L. Maas           | Mr. Maas is co-owner of River Valley Title, L.L.C. and an attorney.  He is also president and treasurer of Maas Asset Management, Inc. and a member of T & S Maas Investment Group, L.L.C.  He formerly served as a member of the board of directors of Grand Haven Bank and Portage Commerce Bank, which were affiliates of Capitol that were merged with and into Michigan Commerce Bank in 2009.  Mr. Maas also serves on the board of directors of Access BIDCO, L.L.C., of which some of Capitol's banking subsidiaries own a membership interest.  Mr. Maas was elected to the board of Capitol in 2009 and is 52 years of age.  |
| Myrl D. Nofziger         | Mr. Nofziger is president of Hoogenboom Nofziger and previously served as a member of the board of directors of Capitol's affiliate, Indiana Community Bancorp Limited, which was merged with and into Capitol.  Mr. Nofziger was elected to the board of Capitol in 2003 and is 71 years of age.                                                                                                                                                                                                                                                                                                                                                                             |
|                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

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| David O'Leary | Mr. O'Leary is the secretary of Capitol.  He is chairman of O'Leary Paint Company.  Mr. O'Leary was a founding director of Capitol and has served as a director of Capitol and/or its first bank affiliate since 1982 and is 80 years of age.  He formerly served on the board of directors of Capitol's affiliate, First California Northern Bancorp, which was merged with and into Capitol. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Joseph D. Reid     | Mr. Reid is the chairman, chief executive officer and founder of Capitol. He served as chairman and chief executive officer of Sun Community Bancorp Limited, which was merged with and into Capitol.  Mr. Reid also serves as the chairman of Michigan Commerce Bank, an affiliate of Capitol.  He has served as a director of Capitol and/or its first bank affiliate since inception in 1982.  Mr. Reid is 68 years of age.                                                       |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| David L. Becker    | Mr. Becker is the retired founder of Becker Insurance Agency, P.C.  Mr. Becker was elected to the board of Capitol in 1990 and served as a charter member of the board of directors of Portage Commerce Bank, an affiliate of Capitol, until it merged with and into Michigan Commerce Bank in 2009.  Mr. Becker is 75 years of age.                                                                                                                                                           |
| James C. Epolito   | Mr. Epolito currently serves as managing director of Health Management Associates.  He previously served as president of Delta Dental of Michigan from April 2009 until January 2010, and as president and chief executive officer of the Michigan Economic Development Corporation from 2005 to 2009.  Prior to 2005, he served as president and chief executive officer of the Accident Fund Company.  Mr. Epolito was elected to Capitol's board in 1999 and is 56 years of age.  |
| Kathleen A. Gaskin | Ms. Gaskin is a retired real estate associate broker.  She was with the firm of Tomie Raines, Inc. from 1992 to 2009, and was a realtor and associate broker from 1968 to 2009.  Ms. Gaskin has been a member of the board of directors of Capitol and/or its first bank affiliate since 1982 as a founding director.  Ms. Gaskin is 69 years of age.                                                                                                                                |
| Michael L. Kasten  | Mr. Kasten is a vice chairman of Capitol's board of directors.  He is managing partner of Kasten Investments, L.L.C.  He was formerly vice chairman and director of Sun Community Bancorp Limited, which was merged with and into Capitol, and currently serves as director, chairman and/or vice chairman of several of Capitol's affiliates.  Mr. Kasten is 65 years of age and has served as a director since 1990.                                                               |
| Ronald K. Sable    | Mr. Sable is president of Concord Solutions Ltd.  Mr. Sable previously served on the board of several of Capitol's affiliate banks.  He also serves as a member of the board of directors of Paragon Space Development Corp.  Mr. Sable was elected to the board of directors of Capitol in 2002 and is 69 years of age.                                                                                                                                                             |

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| Audit Committee 1                                                                                                                          |                                                                                                                                                                                               | Primary Functions                                                                                                                                                                  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                       |                                                                                                                                                                                               |                                                                                                                                                                               |   |
| Steven L. Maas2David L. BeckerGary A. Falkenberg, D.O.Richard A. Henderson,    CPA2Calvin D. Meeusen, CPA3   | ·                                                                                                                                                                                        | review the qualifications, independence and performance of Capitol's independent registered public accounting firm (its independent auditors) and appoint the independent auditors |   |
| ·                                                                                                                                | review general policies and procedures with respect to accounting and financial matters and internal controls                                                                                      |
| ·                                                                                                                                | review and approve the cost and types of audit and non-audit services performed by the independent auditors                                                                                        |
| ·                                                                                                                                | meet with independent auditors not less than once a year without Capitol's personnel to discuss internal controls, accuracy and completeness of the financial statements and other related matters |
| ·                                                                                                                                | review the scope and budget of the audits of Capitol's consolidated financial statements                                                                                                           |
|                                                                                                                                       | ·                                                                                                                                                                                        | notify the board of major problems or deficiencies discovered                                                                                                                      |   |
|                                                                                                                                       | ·                                                                                                                                                                                        | review and reassess the adequacy of its charter annually and recommend any proposed changes to the board for approval                                                         |   |

| 1. | The members of the Audit Committee meet the standards of independence for audit committee members required by the Securities and Exchange Commission ("SEC") rules and as defined by New York Stock Exchange ("NYSE") governance standards, which Capitol continues to use to determine the independence of members of its board of directors although Capitol's securities are no longer listed on the NYSE.  All members of the Audit Committee must be financially literate and at least one member of the Audit Committee must have accounting or related financial management expertise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | Mr. Henderson resigned from Capitol's board of directors in May 2010.  Following Mr. Henderson's resignation, Mr. Maas was appointed acting chairman of the Audit Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 3. | Calvin D. Meeusen became a member of the Audit Committee in January 2011 upon his appointment as a director of Capitol.  Mr. Meeusen is Capitol's "audit committee financial expert" for purposes of compliance with Item 407(d)(5) of Regulation S-K promulgated by the SEC.  The identification of a person as an audit committee financial expert does not impose any duties, obligations or liabilities that are greater than those imposed on such person as a member of either the Audit Committee or the board in the absence of such identification.  Moreover, the identification of a person as an audit committee financial expert, for purposes of the regulations of the SEC, does not affect the duties, obligations or liability of any other member of the Audit Committee or the board.  Finally, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for purposes of Section 11 of the Securities Act of 1933. |

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| Nonemployee Director Compensation in 2010 |
|-------------------------------------------|

| Name                    |   | Fees Earned orPaid in Cash ($) |    | StockAwards ($)(1) |   |  OptionAwards ($)(1) |   |   | All OtherCompensation($)(2) |   |   | Total ($) |   |
|-------------------------|--------|--------------------------------|---------|--------------------|--------|---------------------------|--------|--------|-----------------------------|--------|--------|-----------|--------|
| Paul R. Ballard(3)      |   | $                              | 74,464  |               | --     |                      | $      | 15,000 | (8)                         |   | $      | 238,500   | (9)    |   | $ | 327,964 |   |
| David L. Becker         |   |                           | 14,000  |               | --     |                      |   | 15,000 | (10)                        |   |   | 3,000     |   |   |   | 32,000 |   |
| Michael J. Devine       |   |                           | 14,500  |               | --     |                      |   | 15,000 | (11)                        |   |   | 3,500     |   |   |   | 33,000 |   |
| James C. Epolito        |   |                           | 7,500   |               | --     |                      |   | 15,000 | (12)                        |   |   | 2,500     |   |   |   | 25,000 |   |
| Gary A. Falkenberg      |   |                           | 11,500  |               | --     |                      |   | 15,000 | (13)                        |   |   | 3,500     |   |   |   | 30,000 |   |
| Joel I. Ferguson        |   |                           | 17,000  |               | --     |                      |   | 15,000 | (14)                        |   |   | 3,000     |   |   |   | 35,000 |   |
| Kathleen A. Gaskin      |   |                           | 11,000  |               | --     |                      |   | 15,000 | (15)                        |   |   | 10,500    |   |   |   | 36,500 |   |
| H. Nicholas Genova      |   |                           | 9,000   |               | --     |                      |   | 15,000 | (16)                        |   |   | 3,500     |   |   |   | 27,500 |   |
| Richard A. Henderson(4) |   |                           | 8,000   |               | --     |                      |   | 15,000 |                        |   |   | 500       |   |   |   | 23,500 |   |
| Lewis D. Johns          |   |                           | 20,500  |               | --     |                      |   | 15,000 | (17)                        |   |   | 3,500     |   |   |   | 39,000 |   |
| Michael L. Kasten(5)    |   |                           | 153,000 |               | --     |                      |   | 15,000 | (18)                        |   |   | 14,000    |   |   |   | 182,000 |   |
| Steven L. Maas          |   |                           | 17,500  |               | --     |                      |   | 15,000 | (19)                        |   |   | 3,500     |   |   |   | 36,000 |   |
| Calvin D. Meeusen(3)    |   |                           | 31,750  |               | --     |                      |   | -0-    |                        |   |   | 500       |   |   |   | 32,250 |   |
| Lyle W. Miller(6)       |   |                           | 71,500  |               | --     |                      |   | 15,000 | (20)                        |   |   | 3,500     |   |   |   | 90,000 |   |
| Myrl D. Nofziger(3)     |   |                           | 19,150  |               | --     |                      |   | 15,000 | (21)                        |   |   | 10,500    |   |   |   | 44,650 |   |
| David O'Leary(7)        |   |                           | 45,500  |               | --     |                      |   | 15,000 | (22)                        |   |   | 3,000     |   |   |   | 63,500 |   |
| Ronald K. Sable(3)      |   |                           | 15,530  |               | --     |                      |   | 15,000 | (23)                        |   |   | 9,000     |   |   |   | 39,530 |   |
|                    |   |                           |    |               |   |                      |   |   |                        |   |   |      |   |   |   |   |   |

| (1)  | Capitol's nonemployee directors received a $15,000 retainer in the form of stock options for service in 2010.   All stock options issued to directors in 2010 were issued under the 2007 Incentive Plan.  The amounts in this column reflect the aggregate grant date fair value of restricted stock and option awards reported in these columns computed in accordance with Accounting Standards Codification Topic 718.  For a discussion of the assumptions made in the calculation of the option awards reported in this column, see Note K of the Notes to Consolidated Financial Statements in the Financial Information section of Capitol's 2010 Annual Report, which is incorporated herein by reference. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | All nonemployee directors receive a travel allowance per board meeting attended.  Nonemployee directors are responsible for payment of their own travel accommodations and do not receive reimbursement for such costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (3)  | Compensation in 2010 included board fees for service on the board of directors of affiliate(s) of Capitol in 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (4)  | Mr. Henderson resigned from the board of directors in May 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (5)  | Mr. Kasten's compensation in 2010 included fees for service on various boards of directors of affiliates of Capitol in 2010 as well as a fee of $80,000 for his service as vice chairman of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (6)  | Mr. Miller's compensation included a fee of $50,000 for his service as vice chairman of Capitol in 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (7)  | Mr. O'Leary's compensation included a fee of $25,000 for his service as secretary of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (8)  | As of December 31, 2010, Mr. Ballard had 23,661 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (9)  | Mr. Ballard received $235,000 in payment for a retirement benefit established under an Executive Supplemental Income agreement entered into in January 1991.  He formerly served as president for an affiliate of Capitol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (10) | As of December 31, 2010, Mr. Becker had 22,229 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (11) | As of December 31, 2010, Mr. Devine had 23,662 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (12) | As of December 31, 2010, Mr. Epolito had 22,962 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (13) | As of December 31, 2010, Dr. Falkenberg had 22,962 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (14) | As of December 31, 2010, Mr. Ferguson had 21,314 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (15) | As of December 31, 2010, Ms. Gaskin had 22,962 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (16) | As of December 31, 2010, Mr. Genova had 22,229 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (17) | As of December 31, 2010, Mr. Johns had 23,056 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (18) | As of December 31, 2010, Mr. Kasten had 23,769 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (19) | As of December 31, 2010, Mr. Maas had 15,883 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (20) | As of December 31, 2010, Mr. Miller had 23,056 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (21) | As of December 31, 2010, Mr. Nofziger had 22,229 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (22) | As of December 31, 2010, Mr. O'Leary had 23,097 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (23) | As of December 31, 2010, Mr. Sable had 22,229 stock options outstanding, all of which are vested.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

| ·  | $1,000 for each board meeting attended in person;                                                                                   |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------|
| ·  | $1,000 per committee meeting;                                                                                                       |
| ·  | $500 per board or committee meeting if participating by phone or electronic means;                                                  |
| ·  | Chairperson for each committee receives $2,000 per meeting; and                                                                     |
| ·  | Travel allowance of $500 for in-state board meetings and $1,500 for out-of-state board meetings, based on the director's residency. |

| ·  | Stock options with a value of $15,000 are granted annually as a board fee retainer using a Black-Scholes valuation model. |
|--------------|---------------------------------------------------------------------------------------------------------------------------|

| Name               |   | Age    |   | Position with Capitol         |   | Officer Since |
|--------------------|--------|--------|--------|-------------------------------|--------|---------------|
|               |   |   |   |                          |   |          |
| Joseph D. Reid     |   | 68     |   | Chairman of the Board and CEO |   | 1988          |
| Gregory R. Bixby   |   | 45     |   | Chief Information Officer     |   | 2007          |
| Lawrence Connell   |   | 74     |   | Vice Chairman                 |   | 2010          |
| Brian K. English   |   | 45     |   | General Counsel               |   | 2001          |
| David D. Fortune   |   | 51     |   | Chief Credit Officer          |   | 2004          |
| Lee W. Hendrickson |   | 55     |   | Chief Financial Officer       |   | 1991          |
| Michael M. Moran   |   | 51     |   | Chief of Capital Markets      |   | 2000          |
| Cristin K. Reid    |   | 42     |   | Corporate President           |   | 1997          |
| Todd C. Surline    |   | 52     |   | Chief Administrative Officer  |   | 2007          |
| Bruce A. Thomas    |   | 53     |   | President of Bank Operations  |   | 1998          |
| Stephen D. Todd    |   | 60     |   | Chief of Bank Performance     |   | 2000          |

----

----

| ·   | In 2009, a new design for Capitol's annual cash incentive plan was approved, with emphasis on an expanded list of performance metrics. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | No bonuses under Capitol's Management Incentive Plan were paid to any Named Executive Officers in 2010 or 2009 because in late 2008 Capitol's Compensation Committee made a determination that none of the Named Executive Officers would be eligible to participate in the Management Incentive Plan based on results of operations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | No salary increases for Named Executive Officers were approved for 2010 or 2009. |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Effective March 31, 2011, Joseph D. Reid elected to reduce his base salary compensation by 25%, which followed reductions of 20% on October 1, 2009 and 10% effective January 1, 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On January 1, 2009, all Named Executive Officers requested a voluntary 10% salary reduction. |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | The value of unexercised stock options held by the Named Executive Officers decreased dramatically. As of December 31, 2010, 2009 and 2008, there were no in-the-money outstanding vested or unvested stock options held by the Named Executive Officers, compared to aggregate value of $636,786 for the Named Executive Officers at year-end 2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reward current performance; |
|--------------------|-----------------------------|

| ·   | Motivate future performance; |
|--------------------|------------------------------|

| ·   | Encourage teamwork; |
|--------------------|---------------------|

| ·   | Remain competitive as compared to the external marketplace; |
|--------------------|-------------------------------------------------------------|

| ·   | Maintain a position of internal equity; |
|--------------------|-----------------------------------------|

| ·   | Effectively retain Capitol's executive management team; |
|--------------------|---------------------------------------------------------|

| ·   | Increase shareholder value by strategically aligning executive management and shareholder interests; and |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Reward effective risk mitigation. |
|--------------------|-----------------------------------|

----

----

| Select Bank Peer Group With Assets Between $1 Billion - $12.5 BillionReference Group (state) |   | Institutions With Operations in More ThanFive States or Multiple Affiliates ReferenceGroup (state) |
|----------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|
|                                                                                         |
|                                                                                         |
|                                                                                         |   |                                                                                               |
| Citizens Republic Bancorp, Inc. (MI)                                                         |   | Synovus Financial Corp. (GA)                                                                       |
| National Penn Bancshares (PA)                                                                |   | BOK Financial Corporation (OK)                                                                     |
| Umpqua Holdings Corp. (OR)                                                                   |   | Commerce Bancshares, Inc. (MO)                                                                     |
| Sterling Bancshares, Inc. (TX)                                                               |   | TCF Financial Corporation (MN)                                                                     |
| S&T Bancorp, Inc. (PA)                                                                   |   | Fulton Financial Corporation (PA)                                                                  |
| First Busey Corporation (IL)                                                                 |   | East West Bancorp, Inc. (CA)                                                                       |
| Wilshire Bancorp, Inc. (CA)                                                                  |   | Wintrust Financial Corporation (IL)                                                                |
| First State Bancorporation (NM)                                                              |   | PrivateBancorp, Inc. (IL)                                                                          |
| Old Second Bancorp, Inc. (IL)                                                                |   | Cathay General Bancorp (CA)                                                                        |
| West Coast Bancorp (OR)                                                                      |   | Whitney Holding Corporation (LA)                                                                   |
| CoBiz Inc. (CO)                                                                              |   | UMB Financial Corporation (MO)                                                                     |
| Enterprise Financial Services Corp (MO)                                                      |   | United Bankshares, Inc. (WV)                                                                       |
| Guaranty Bancorp (CO)                                                                        |   | First Financial Bancorp. (OH)                                                                      |
| Mercantile Bank Corporation (MI)                                                             |   | IBERIABANK Corporation (LA)                                                                        |
| Macatawa Bank Corporation (MI)                                                               |   | Cadence Financial Corporation (MS)                                                                 |
|                                                                                         |   |                                                                                               |

----

----

| ·   | earnings per share; |
|--------------------|---------------------|

| ·   | return  measures (including, but not limited to, return on assets, equity or sales); |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | net income (before or after taxes), cash flow (including, but not limited to, operating cash flow and free cash flow); |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | cash flow return on investments, which equals net cash flow divided by stockholders' equity; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | earnings before or after taxes, interest, depreciation and/or amortization; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | internal rate of return or increase in net present value; |
|--------------------|-----------------------------------------------------------|

| ·   | gross revenues; |
|--------------------|-----------------|

| ·   | gross margins; |
|--------------------|----------------|

| ·   | share price (including, but not limited to, growth measures and total shareholder return). |
|--------------------|--------------------------------------------------------------------------------------------|

----

| Performance Measure                 |   | Description                                                                                                                                                                                                                           |
|------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                     |   |                                                                                                                                                                                                                                                                                                                                           |
| Operating Results                        |   | Provides direction to ensure that Capitol meets its financial goals, both in terms of achieving budgetary results and in its commitment to performance compared to its peers.                                                                                                                                                                  |
|                                     |   |                                                                                                                                                                                                                                                                                                                                           |
| Leadership                               |   | Leads Capitol, setting a philosophy based on the corporate culture that is well understood, widely supported, consistently applied and effectively implemented.                                                                                                                                                                                |
|                                     |   |                                                                                                                                                                                                                                                                                                                                           |
| Strategic Planning                       |   | Establishes clear objectives and develops strategic policies to help ensure stability in Capitol's core business and improvement in its financial condition and results of operations. Committed to the utilization of advanced technology applications to support these goals and maintains the long-term interest of Capitol in all actions. |
|                                     |   |                                                                                                                                                                                                                                                                                                                                           |
| Human Capital Management and Development |   | Ensures the effective recruitment of a diverse workforce, consistent retention of key employees and the ongoing motivation of staff. Offers personal involvement in the recruiting process and provides feedback.                                                                                                                              |
|                                     |   |                                                                                                                                                                                                                                                                                                                                           |
| Communications                           |   | Serves as chief spokesperson for Capitol, communicating effectively with all of its constituent stakeholders.                                                                                                                                                                                                                                  |
|                                     |   |                                                                                                                                                                                                                                                                                                                                           |
| External Relations                       |   | Establishes and maintains relationships with the investment community to keep them informed on Capitol's status. Serves in a leadership role in civic, professional and community organizations. Reinforces key customer relationships through market visits and customer contacts, when appropriate.                                          |
|                                     |   |                                                                                                                                                                                                                                                                                                                                           |
| Board Relations                          |   | Works closely with the board of directors to keep them fully informed on all important aspects of the status and future prospects of Capitol. Helps facilitate the board of directors' composition and committee structure, as well as its governance and any regulatory agency relations.                                                     |

|               |         |   |   |
|--------------------|--------------|--------|--------|
| Lee W. Hendrickson |    | 20     | %      |
| Lawrence Connell   |         | 0      | %      |
| Cristin K. Reid    |    | 20     | %      |
| Bruce A. Thomas    |    | 20     | %      |
|               |         |

----

| ·   | Enhance the focus of executives on the creation of long-term shareholder value as reflected in Capitol's stock price performance; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide an opportunity for increased ownership by executives; and |
|--------------------|-------------------------------------------------------------------|

| ·   | Maintain competitive levels of total compensation. |
|--------------------|----------------------------------------------------|

----

----

----

----

| Compensation Committee       |
|------------------------------|
| Kathleen A. Gaskin, Chairman |
| James C. Epolito             |
| Lewis D. Johns               |

|                                                          |   | (a)                                                                                         |         |   | (b)                                                                         |   |        | (c)                                                                                                                                     |   |
|---------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|--------------|--------|-----------------------------------------------------------------------------|--------|-------------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
| Plan category                                                 |   | Number of securitiesto be issued uponexercise of outstandingoptions, warrantsand rights (1) |         |   | Weighted-averageexercise priceof outstandingoptions, warrantsand rights (1) |   |        | Number of securitiesremaining available forfuture issuance underequity compensationplans (excluding securities reflected in column (a)) |   |
|                                                          |   |                                                                                        |         |   |                                                                        |   |        |                                                                                                                                    |   |
| Equity compensation plans approved by security holders*       |   |                                                                                        | 1,678,723    |   |                                                                        | $      | 21.73       |                                                                                                                                    |   |   | 876,947 |   |
| Equity compensation plans not approved by security holders(1) |   |                                                                                        | - -          |   |                                                                        |   | - -         |                                                                                                                                    |   |   | - - |   |
| Equity compensation plans resulting from share exchanges      |   |                                                                                        |  66,879 |   |                                                                        |   |  16.40 |                                                                                                                                    |   |   |  - - |   |
|                                                          |   |                                                                                        |         |   |                                                                        |   |        |                                                                                                                                    |   |   |   |   |
| Total                                                         |   |                                                                                        | 1,745,602    |   |                                                                        | $      | 21.53       |                                                                                                                                    |   |   | 876,947 |   |

|   (1) | Options issued pursuant to employment agreements with various officers of Capitol and its subsidiaries. |
|-----------------|---------------------------------------------------------------------------------------------------------|
|            |                                                                                                    |

----

| Summary Compensation Table                           |                   |
|------------------------------------------------------|------------------------|
|                                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Name and Principal Position        |    Year |   |   Salary($) |   |   |  Bonus($)(1) |   |   | StockAwards($)(2) |   |   | OptionAwards($)(2) |   |   | Non-EquityIncentive PlanCompensation($) |   |   | Change inPension Value($) |   |   | All OtherCompensation($) |   |   |  Total($) |   |
|                                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Joseph D. Reid                                       | 2010                   |   | $ | 668,125 |   |   |   | — |   |   | $ | 9,561 | (4) |   |   | — |   |   |   | — |   |   |   | N/A |   |   | $ | 25,222 | (6) |   | $ | 702,908 |   |
|     Chief Executive Officer and  | 2009                   |   |   | 776,154 | (3) |   |   | — |   |   |   | 28,379 | (4) |   | $ | 143,570 |   |   |   | — |   |   |   | N/A |   |   |   | 22,293 | (7) |   |   | 970,396 |   |
|     Chairman                     | 2008                   |   |   | 900,000 |   |   |   | — |   |   |   | 99,996 | (4) |   |   | — |   |   | $ | 100,000 | (5) |   |   | N/A |   |   |   | 55,114 | (8) |   |   | 1,155,110 |   |
|                                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Lee W. Hendrickson                                   | 2010                   |   |   | 402,948 | (9) |   |   | — |   |   |   | 17,824 | (10) |   |   | — |   |   |   | — |   |   | $ | 31,571 |   |   |   | 11,799 | (11) |   |   | 464,142 |   |
|     Chief Financial Officer      | 2009                   |   |   | 383,760 |   |   |   | — |   |   |   | 17,824 | (10) |   |   | 68,020 |   |   |   | — |   |   |   | 29,232 |   |   |   | 11,920 | (12) |   |   | 510,756 |   |
|                                                 | 2008                   |   |   | 426,400 |   |   |   | — |   |   |   | 17,824 | (10) |   |   | — |   |   |   | — |   |   |   | 27,067 |   |   |   | 18,400 | (13) |   |   | 489,691 |   |
|                                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Lawrence Connell                                     | 2010                   |   |   | 461,539 |   |   |   | — |   |   |   | 400,002 | (14) |   |   | — |   |   |   | — |   |   |   | N/A |   |   |   | 40,000 | (15) |   |   | 901,541 |   |
|     Vice Chairman                | 2009                   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | N/A |   |   |   | — |   |   |   | — |   |
|     Michigan Commerce Bank       | 2008                   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | N/A |   |   |   | — |   |   |   | — |   |
|                                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cristin K. Reid                                      | 2010                   |   |   | 387,450 | (9) |   |   | — |   |   |   | 17,824 | (10) |   |   | — |   |   |   | — |   |   |   | N/A |   |   |   | 11,786 | (16) |   |   | 417,060 |   |
|     Corporate President          | 2009                   |   |   | 369,000 |   |   |   | — |   |   |   | 17,824 | (10) |   |   | 65,403 |   |   |   | — |   |   |   | N/A |   |   |   | 11,677 | (17) |   |   | 463,904 |   |
|                                                 | 2008                   |   |   | 410,000 |   |   |   | — |   |   |   | 17,824 | (10) |   |   | — |   |   |   | — |   |   |   | N/A |   |   |   | 18,400 | (18) |   |   | 446,224 |   |
|                                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bruce A. Thomas                                      | 2010                   |   |   | 329,332 | (9) |   |   | — |   |   |   | 17,824 | (10) |   |   | — |   |   |   | — |   |   |   | 27,712 |   |   |   | 11,736 | (19) |   |   | 386,604 |   |
|     President of Bank Operations | 2009                   |   |   | 313,650 |   |   |   | — |   |   |   | 17,824 | (10) |   |   | 55,593 |   |   |   | — |   |   |   | 25,659 |   |   |   | 12,591 | (20) |   |   | 425,317 |   |
|                                                 | 2008                   |   |   | 348,500 |   |   |   | — |   |   |   | 17,824 | (10) |   |   | — |   |   |   | — |   |   |   | 23,758 |   |   |   | 18,400 | (21) |   |   | 408,482 |   |
|                                                 |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| N/A  | Not applicable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | The Named Executive Officers elected to forgo receiving a bonus in 2008, 2009 and 2010 due to the adverse financial performance of Capitol.                                                                                                                                                                                                                                                                                                                                                                                         |
| (2)  | The amounts in these columns reflect the aggregate grant date fair value of stock and option awards during the last three fiscal years computed in accordance with Accounting Standards Codification Topic 718. For a discussion of the assumptions made in the valuation of the restricted stock and option awards reported in these columns, please see Note K of the Notes to Consolidated Financial Statements in the Financial Information section of Capitol's 2010 Annual Report, which is incorporated herein by reference. |
| (3)  | Does not fully reflect an additional 20% salary reduction effective October 1, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (4)  | Mr. Reid received two restricted stock grants on February 6, 2008 totaling 9,812 shares, and two grants on August 7, 2008 totaling 13,478 shares.  Such restricted shares vest on a graded basis on the anniversary of the grant date each year.  Mr. Reid will receive 25% of the grant amount at that time.  The amount reported represents 25% of the grant date fair value reflecting one year's service of the four-year vesting period.                                                         |
| (5)  | In 2008, Mr. Reid elected to forgo $100,000 in non-equity incentive compensation due to him under his employment agreement.                                                                                                                                                                                                                                                                                                                                                                                                         |
| (6)  | Includes $1,166 in lease payments and insurance for an automobile provided by the company that was used for personal use, $23,250 for the economic value of a split-dollar life insurance policy paid on his behalf and $806 for life/disability premiums paid on his behalf.                                                                                                                                                                                                                                                       |
| (7)  | Includes $1,192 in lease payments and insurance for an automobile provided by the company that was used for personal use, $19,650 for the economic value of a split-dollar life insurance policy paid on his behalf, $1,042 received from dividends received on unvested restricted stock and $409 for life/disability premiums paid on his behalf.                                                                                                                                                                                 |
| (8)  | Includes $6,600 contributed to Capitol's 401(k) plan, $1,192 in lease payments and insurance for an automobile provided by the company that was used for personal use, $19,650 for the economic value of a split-dollar life insurance policy paid on his behalf and $27,672 received from dividends received on unvested restricted stock.                                                                                                                                                                                         |
| (9)  | The larger amount is solely attributable to 27 payroll periods in the 2010 calendar year, compared to 26 in 2009 and 2008.  Such occurrence occurs approximately every 7 years.                                                                                                                                                                                                                                                                                                                                           |
| (10) | Mr. Hendrickson, Ms. Reid and Mr. Thomas each received a restricted stock grant of 2,000 shares on April 21, 2006.  Such restricted shares vest on a cliff basis on April 21, 2011 at which time the award becomes 100% vested.  The amount reported is 20% of the grant date fair value reflecting one year's service of the five-year vesting period.   Amount shown represents 2007 amortization of total intrinsic value of the restricted stock award as of the grant date.                 |
| (11) | Includes an $11,216 automobile allowance and $583 for life/disability premiums paid on his behalf.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (12) | Includes $589 contributed to Capitol's 401(k) plan, a $10,800 automobile allowance, $100 from dividends received on unvested restricted stock and $431 for life/disability premiums paid on his behalf.                                                                                                                                                                                                                                                                                                                             |
| (13) | Includes $6,600 contributed to Capitol's 401(k) plan, a $10,800 automobile allowance and $1,000 from dividends received on unvested restricted stock.                                                                                                                                                                                                                                                                                                                                                                               |
| (14) | Mr. Connell received a restricted stock grant of 224,720 shares on July 13, 2010.  Such restricted shares vest on a cliff basis on May 11, 2011 at which time the award becomes 100% vested.                                                                                                                                                                                                                                                                                                                              |
| (15) | Mr. Connell received a living allowance of $5,000 per month, beginning in May 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (16) | Includes an $11,216 automobile allowance and $570 for life/disability premiums paid on her behalf.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (17) | Includes $346 contributed to Capitol's 401(k) plan, a $10,800 automobile allowance, $100 from dividends received on unvested restricted stock and $431 for life/disability premiums paid on her behalf.                                                                                                                                                                                                                                                                                                                             |
| (18) | Includes $6,600 contributed to Capitol's 401(k) plan, a $10,800 automobile allowance and $1,000 from dividends received on unvested restricted stock.                                                                                                                                                                                                                                                                                                                                                                               |
| (19) | Includes an $11,216 automobile allowance and $520 for life/disability premiums paid on his behalf.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (20) | Includes $1,260 contributed to Capitol's 401(k) plan, a $10,800 automobile allowance, $100 from dividends received on unvested restricted stock and $431 for life/disability premiums paid on his behalf.                                                                                                                                                                                                                                                                                                                           |
| (21) | Includes $6,600 contributed to Capitol's 401(k) plan, a $10,800 automobile allowance and $1,000 from dividends received on unvested restricted stock.                                                                                                                                                                                                                                                                                                                                                                               |

----

| ·  | reduce Mr. Reid's salary to $900,000;                                                                                                                                                                                                                                                                                    |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | delete references to Mr. Reid's right to defer his compensation;                                                                                                                                                                                                                                                         |
| ·  | change the date on which certain amounts are paid to Mr. Reid to avoid any potential issues arising under Section 409A of the Code;                                                                                                                                                                                      |
| ·  | revise Mr. Reid's long-term stock award for each new bank or holding company opened or acquired by Capitol ("New Affiliate") from an option for 30,000 shares of Capitol's common stock to $50,000 in cash and a restricted stock award for shares of Capitol's common stock having a fair market value of $100,000; and |
| ·  | Mr. Reid is not entitled to receive any compensation for more than ten New Affiliates in each fiscal year.                                                                                                                                                                                                               |

----

|   | · | a 36 month term rather than the 60 month term as set forth in the current employment agreements; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | a double trigger provision for any payments made in connection with a change of control (the earlier employment agreements with the Named Executive Officers could be terminated by the Named Executive Officer upon a change of control for which the Named Executive Officer would also be entitled to receive a severance payment); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a provision providing for the recoupment of incentive compensation if Capitol's board of directors, or an appropriate committee thereof, determines that any fraud, negligence, or intentional misconduct by the Named Executive Officer is a significant contributing factor to Capitol having to restate all or a portion of its consolidated financial statements, pursuant to which Capitol's board of directors or applicable committee may require reimbursement of any bonus or incentive compensation previously paid to the Named Executive Officer; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a requirement that the Named Executive Officer sign a general release of Capitol prior to the payment of any severance amount upon termination of employment. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Grants of Plan-Based Awards                                 |   |
|-------------------------------------------------------------|--------|
|                                                        |   |
| Estimated Future Payouts Under Equity Incentive Plan Awards |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Name                    |   |      GrantDate |   |   |   |      Threshold($) |   |       Target ($) |   |      Maximum($) |   |  All OtherStockAwards:Number ofShares of Stockor Units (#) |   |   Grant Date Fair Value of Stock and Option Awards ($) |   | All OtherOptionAwards:Number ofSecuritiesUnderlyingOptions (#) |   |     Exercise or BasePrice of OptionAwards ($/Sh) |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Joseph D. Reid (1)                                          |   |   N/A |   |   |   |   N/A |   |   N/A |   |   N/A |   |                 -- |   |   N/A |   |                 -- |   |   N/A |   |
| Lee W. Hendrickson                                          |   |   N/A |   |   |   |   N/A |   |   N/A |   |   N/A |   |                 -- |   |   N/A |   |                 -- |   |   N/A |   |
| Lawrence Connell (2)                                        |   |   7/13/2010 |   |   |   |   N/A |   |   N/A |   |  $  400,002 |   |             224,720 |   |  $  400,002 |   |                 -- |   |   N/A |   |
| Cristin K. Reid                                             |   |   N/A |   |   |   |   N/A |   |   N/A |   |   N/A |   |                 -- |   |   N/A |   |                 -- |   |   N/A |   |
| Bruce A. Thomas                                             |   |   N/A |   |   |   |   N/A |   |   N/A |   |   N/A |   |                 -- |   |   N/A |   |                 -- |   |   N/A |   |

| N/A | Not applicable.                                                                                                                                                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Pursuant to his amended Employment Agreement, Mr. Reid is eligible for a cash bonus of 2% of Capitol's net income upon certification of the Compensation Committee that the growth of both Capitol's earnings per share and total assets equals or exceeds 10% of the immediately preceding fiscal year.  No bonus award was earned for 2010. |
| (2) | Mr. Connell received a restricted stock grant of 224,720 shares on July 13, 2010.  Such restricted shares vest on a cliff basis on May 11, 2011 at which time the award becomes 100% vested.                                                                                                                                                  |

----

----

| Outstanding Equity Awards at Fiscal Year-End 2010 |
|---------------------------------------------------|
|                                              |
|                                              |   | Option Awards(1) |   | Stock Awards |
|                                              |   |   |   |   |   |   |   |   |   |   |
| Name                                              |   | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Exercisable |   | OptionExercisePrice ($) |   | OptionExpirationDate |   | Number of Sharesor Units of StockThat Have NotVested (#) |   | Market Value ofShares or Unitsof Stock That HaveNot Vested ($)(4) |
|                                              |   |   |   |   |   |   |   |   |   |   |
| Joseph D. Reid                                    |   | 60,000 |   | $         25.27 |   | 5/25/11 |   | 11,646 (2) |   | $                6,056 |
|                                              |   | 10,875 |   | 16.40 |   | 7/9/11 |   | — |   | — |
|                                              |   | 30,000 |   | 25.86 |   | 8/5/11 |   | — |   | — |
|                                              |   | 55,927 |   | 16.40 |   | 9/30/11 |   | — |   | — |
|                                              |   | 30,000 |   | 34.31 |   | 1/10/12 |   | — |   | — |
|                                              |   | 77 |   | 16.40 |   | 3/15/12 |   | — |   | — |
|                                              |   | 30,000 |   | 31.86 |   | 5/5/12 |   | — |   | — |
|                                              |   | 270,000 |   | 32.03 |   | 6/29/12 |   | — |   | — |
|                                              |   | 258,000 |   | 37.48 |   | 12/30/12 |   | — |   | — |
|                                              |   | 150,000 |   | 22.46 |   | 8/1/14 |   | — |   | — |
|                                              |   | 71,428 |   | 2.01 |   | 11/16/14 |   | — |   | — |

| Lee W. Hendrickson |   |             20,000 |   |   30.21            |   | 5/16/11  |   | 2,000 (3)                                   |   |                  1,040 |
|--------------------|--------|--------------------------------------------------------------------------------|--------|------------------------------|--------|----------|--------|---------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|
|               |   |             33,841 |   |     2.01 |   | 11/16/14 |   | —                                     |   | —                                                                                                     |
| Lawrence Connell   |   | —                                                                        |   | —                      |   | —  |   | 224,720       |   | 116,854                                                                                                     |
| Cristin K. Reid    |   |             20,000 |   |   30.21            |   | 5/16/11  |   | 2,000 (3)                                   |   | 1,040                                                                                                       |
|               |   |             32,539 |   |    2.01       |   | 11/16/14 |   | —                                     |   | —                                                                                                     |
| Bruce A. Thomas    |   |             20,000 |   |   30.21            |   | 5/16/11  |   | 2,000 (3)                                   |   | 1,040                                                                                                       |
|               |   |             27,658 |   |     2.01 |   | 11/16/14 |   | —                                     |   | —                                                                                                     |

| (1) | All stock option awards were vested as of December 31, 2010.                                                                                                                                                                                                                                                                                                  |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Mr. Reid received two restricted stock grants on February 6, 2008 totaling 9,812 shares, and two grants on August 7, 2008 totaling 13,478 shares.  Such restricted shares vest over a four-year period on a graded basis on the anniversary of the grant date each year.  Mr. Reid receives 25% of the grant amount at each vesting date. |
| (3) | Mr. Hendrickson, Ms. Reid and Mr. Thomas each received a restricted stock grant of 2,000 shares on April 21, 2006.  Such restricted shares vest on a cliff basis on April 21, 2011 at which time the award becomes 100% vested.                                                                                                                     |
| (4) | Based upon Capitol's common stock closing price as of December 31, 2010 of $0.52 per share as reported by the NYSE.                                                                                                                                                                                                                                           |

| Option Exercises and Stock Vested 2010 |
|----------------------------------------|
|                                   |   | Option Awards |   | Stock Awards |
|                                   |   |   |   |   |   |   |   |   |
|  Name                             |   | Number of SharesAcquired on Exercise (#) |   | Value Realized on Exercise ($) |   | Number of SharesAcquired on Vesting (#) |   | Value Realized onVesting ($) |
|                                   |   |   |   |   |   |   |   |   |
| Joseph D. Reid                         |   | — |   |                                      — |   | 2,452 |   | $                         4,978 (1) |
|                                   |   | — |   |                                      — |   | 3,370 |   |                            4,583 (2) |
| Lee W. Hendrickson                     |   | — |   |                                      — |   | — |   |                                  — |
| Lawrence Connell                       |   | — |   |                                      — |   | — |   |                                  — |
| Cristin K. Reid                        |   | — |   |                                      — |   | — |   |                                  — |
| Bruce A. Thomas                        |   | — |   |                                      — |   | — |   |                                  — |

| (1) | Value based upon Capitol's common stock price per share as reported by the NYSE on February 5, 2010 ($2.03), the vesting date. |
|-----|--------------------------------------------------------------------------------------------------------------------------------|
| (2) | Value based upon Capitol's common stock price per share as reported by the NYSE on August 6, 2010 ($1.36), the vesting date.   |

----

| Pension Benefits 2010    |
|--------------------------|
|                     |   |   |   |   |   |   |   |   |
|  Name               |   |  Plan Name |   | Number of Years ofCredited Service (#)(1) |   | Present Value of Accumulated Benefit ($) |   | Payments During LastFiscal Year ($) |
|                     |   |   |   |   |   |   |   |   |
| Joseph D. Reid      |   | N/A |   | N/A |   |                                     N/A |   |                                    N/A |
| Lee W. Hendrickson  |   | Executive SupplementalIncome Agreement |   | 15 |   |  $                           250,448 |   |                                       — |
| Lawrence Connell    |   | N/A |   | N/A |   |                                     N/A |   |                                    N/A |
| Cristin K. Reid     |   | N/A |   | N/A |   |                                     N/A |   |                                    N/A |
| Bruce A. Thomas          |   | Executive SupplementalIncome Agreement |   | 11 |   |                                     N/A |   |                                       — |

| N/A | Not applicable.                                                                                                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Executives become eligible for benefit payments once they have reached 15 years of service and age 65.  The benefit does not increase with additional years of service.Accordingly, if an executive has more than 15 years of service, the table reflects 15 years. |

----

| ·   | The assignment to Mr. Reid of any duties inconsistent in any material respect with Mr. Reid's position, authority, duties or responsibilities as contemplated by Section 2(a) of the agreement, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by Capitol promptly after receipt of notice thereof given by Mr. Reid; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Failure by Capitol to pay Mr. Reid his compensation under the terms of the agreement, other than an isolated, insubstantial and inadvertent action not taken in bad faith, and which is remedied by Capitol promptly after receipt of notice thereof given by Mr. Reid; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Capitol's requiring Mr. Reid to reside at any specific location, it being understood that Mr. Reid maintains multiple residences and offices, or Capitol's requiring the executive to travel on Company business to a greater extent than required immediately prior to the effective date of the agreement or in the event of a change in control, the Company's requiring Mr. Reid to travel in a manner inconsistent with current practice in effect immediately preceding the date of Capitol's change of control; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Failure by Capitol to cause a successor to perform Capitol's obligations arising under the agreement; or |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Upon a change of control of Capitol. |
|--------------------|--------------------------------------|

----

----

| Named Executive Officer |   | Quit/Termination ForCause($) |   | InvoluntaryTermination Not ForCause($) |   | Change InControl(1)($) |   | Change In ControlWith Termination($) |   | Death(2)($) |   | Disability(2)($) |   |
|-------------------------|--------|------------------------------|--------|----------------------------------------|--------|------------------------|--------|--------------------------------------|--------|-------------|--------|------------------|--------|
| Joseph D. Reid          |   | 0                            |   | $1,500,406                             |   | $1,500,406             |   | $1,500,406                           |   | $164,106    |   | 0                |   |
| Lee W. Hendrickson      |   | 0                            |   | 1,076,400                              |   | 0                      |   | 1,347,840                            |   | 0           |   | 0                |   |
| Lawrence Connell        |   | N/A                          |   | N/A                                    |   | N/A                    |   | N/A                                  |   | N/A         |   | N/A              |   |
| Cristin K. Reid         |   | 0                            |   | 1,060,875                              |   | 0                      |   | 1,328,400                            |   | 0           |   | 0                |   |
| Bruce A. Thomas         |   | 0                            |   | 901,744                                |   | 0                      |   | 1,129,140                            |   | 0           |   | 0                |   |
| N/A |   | Not applicable.                                                                                                                                                                                                                                                                                                                         |
|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) |   | The amounts shown in this column reflect the value of restricted shares of common stock previously awarded to the Named Executive Officers with respect to which transferability restrictions lapse if a change in control of Capitol would have occurred on December 31, 2010.                                                    |
| (2) |   | The amounts in this column reflect the pro-rata value of the restricted shares of common stock previously awarded to the Named Executive Officers with respect to which transferability restrictions would have lapsed had the Named Executive Officers terminated employment because of death or disability on December 31, 2010. |

----

|  Name of  Beneficial Owner                                                                    |   | CommonStock(1)(2) |         |   | Rights toAcquire(3) |   |         | RestrictedStock(4) |   |   | Percent ofCommon Stock(5) |   |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------|--------------|--------|---------------------|--------|--------------|--------------------|--------|--------|---------------------------|--------|
|                                                                                                         |   |              |         |   |                |   |         |               |   |   |                      |   |
| Joseph D. Reid     Capitol Bancorp Center200 N. Washington SquareLansing, MI, 48933 |   |              | 956,135      |   |                |   | 966,307      |               |   |   | 9,192                     |   |   |   | 4.59 | % |
| Michael L. Kasten(6)                                                                                         |   |              | 140,194      |   |                |   | 23,036       |               |   |   | —                   |   |   |   | * |   |
| Lyle W. Miller(7)                                                                                            |   |              | 97,237       |   |                |   | 22,323       |               |   |   | —                   |   |   |   | * |   |
| David O'Leary (8)                                                                                            |   |              | 87,690       |   |                |   | 22,364       |               |   |   | —                   |   |   |   | * |   |
| Paul R. Ballard                                                                                              |   |              | 102,794      |   |                |   | 22,928       |               |   |   | —                   |   |   |   | * |   |
| Lawrence Connell                                                                                             |   |              | —      |   |                |   | —      |               |   |   | 224,720                   |   |   |   | * |   |
| David L. Becker                                                                                              |   |              | 84,854       |   |                |   | 22,229       |               |   |   | —                   |   |   |   | * |   |
| Michael J. Devine                                                                                            |   |              | 14,202       |   |                |   | 22,929       |               |   |   | —                   |   |   |   | * |   |
| James C. Epolito                                                                                             |   |              | 4,210        |   |                |   | 22,229       |               |   |   | —                   |   |   |   | * |   |
| Gary A. Falkenberg                                                                                           |   |              | 64,149       |   |                |   | 22,229       |               |   |   | —                   |   |   |   | * |   |
| Joel I. Ferguson(9)                                                                                          |   |              | 134,152      |   |                |   | 21,314       |               |   |   | —                   |   |   |   | * |   |
| Kathleen A. Gaskin                                                                                           |   |              | 39,877       |   |                |   | 22,229       |               |   |   | —                   |   |   |   | * |   |
| H. Nicholas Genova                                                                                           |   |              | 116,871      |   |                |   | 22,229       |               |   |   | —                   |   |   |   | * |   |
| Lewis D. Johns                                                                                               |   |              | 250,963      |   |                |   | 22,323       |               |   |   | —                   |   |   |   | * |   |
| Steven L. Maas(10)                                                                                           |   |              | 821,960      |   |                |   | 15,883       |               |   |   | —                   |   |   |   | 2.04 | % |
| Calvin D. Meeusen(11)                                                                                        |   |              | 97,626       |   |                |   | —      |               |   |   | —                   |   |   |   | * |   |
| Myrl D. Nofziger                                                                                             |   |              | 68,398       |   |                |   | 22,229       |               |   |   | —                   |   |   |   | * |   |
| Cristin K. Reid(12)                                                                                          |   |              | 100,742      |   |                |   | 52,539       |               |   |   | 2,000                     |   |   |   | * |   |
| Ronald K. Sable                                                                                              |   |              | 37,833       |   |                |   | 22,229       |               |   |   | —                   |   |   |   | * |   |
| Lee W. Hendrickson(13)                                                                                       |   |              | 22,365       |   |                |   | 53,841       |               |   |   | 2,000                     |   |   |   | * |   |
| Michael M. Moran                                                                                             |   |              | 91,636       |   |                |   | 41,131       |               |   |   | 2,000                     |   |   |   | * |   |
| Bruce A. Thomas                                                                                              |   |              |  35,088 |   |                |   |  47,658 |               |   |   |  2,000               |   |   |   |  * |   |
| All directors and executive officers asa group (32 Persons)(14)                                              |   |              | 3,580,513    |   |                |   | 1,589,178    |               |   |   | 253,412                   |   |   |   | 12.70 | % |

| (1)  | Represents shares for which the named person (a) has sole voting and investment power or (b) has shared voting and investment power. Excluded are shares that (i) are restricted stock holdings or (ii) may be acquired through stock option or warrant exercises.                                     |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Includes shares held in Capitol's Retirement Plan: 24,730 for Mr. Reid; 42,344 for Ms. Reid, 3,288 for Mr. Hendrickson, 21,088 for Mr. Moran and 3,274 for Mr. Thomas.                                                                                                                                                     |
| (3)  | Represents shares of common stock that can be acquired through stock options exercisable within sixty days after March 15, 2011.                                                                                                                                                                                           |
| (4)  | Represents shares of common stock subject to a vesting schedule, achievement of certain performance criteria, forfeiture risk and other restrictions. Although these shares are subject to forfeiture provisions, the holder has the right to vote the shares and receive dividends, if any, until they are forfeited.     |
| (5)  | Assumes shares that such person has rights to acquire are outstanding.                                                                                                                                                                                                                                                     |
| (6)  | Mr. Kasten reported 80,000 shares pledged as security.                                                                                                                                                                                                                                                                     |
| (7)  | Mr. Miller reported 35,300 shares pledged as security.                                                                                                                                                                                                                                                                     |
| (8)  | Mr. O'Leary reported 51,201 shares pledged as security.                                                                                                                                                                                                                                                                    |
| (9)  | Mr. Ferguson reported 3,000 shares pledged as security.                                                                                                                                                                                                                                                                    |
| (10) | Mr. Maas reported 67,498 shares pledged as security.                                                                                                                                                                                                                                                                       |
| (11) | Mr. Meeusen reported 9,096 shares pledged as security.                                                                                                                                                                                                                                                                     |
| (12) | Ms. Reid reported 1,461 shares pledged as security.  Excludes 39,619 stock options and 2,000 shares of restricted stock held by Brian K. English, Capitol's General Counsel and Ms. Reid's husband.                                                                                                              |
| (13) | Mr. Hendrickson reported 4,394 shares pledged as security.                                                                                                                                                                                                                                                                 |
| (14) | Includes 142,657 shares allocated and held in Capitol's Retirement Plan (formerly Capitol's separate 401(k) plan and ESOP), and 111,047 shares allocated and held in Capitol's Directors' Deferred Compensation Plan.  As a group, all directors and executive officers have 248,364 shares pledged as security. |

----

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| Paul R. Ballard    | David L. Becker   | James C. Epolito   |
|--------------------|-------------------|--------------------|
| Gary A. Falkenberg | Joel I. Ferguson  | Kathleen A. Gaskin |
| H. Nicholas Genova | Lewis D. Johns    | Michael L. Kasten  |
| Steven L. Maas     | Calvin D. Meeusen | Lyle W. Miller     |
| Myrl D. Nofziger   | David O'Leary     | Ronald K. Sable    |

----

----

----

| CAPITOL BANCORP LTD.RegistrantBy:  /s/ Joseph D. Reid                        Joseph D. ReidChairman andChief Executive Officer |   By:   /s/ Lee W. Hendrickson                   Lee W. HendricksonChief Financial Officer(Principal Financial andAccounting Officer) |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/ Joseph D. Reid                                                                                                            Joseph D. Reid, Chairman,Chief Executive Officer and Director  | /s/ H. Nicholas Genova                       H. Nicholas Genova, Director                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| /s/ David O'Leary                                                                                                                 David O'Leary, Secretary and Director  | ________________________________________Lewis D. Johns, Director                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| /s/ Paul R. Ballard                                                                                                                Paul R. Ballard, Director             | /s/ Michael L. Kasten                         Michael L. Kasten, Vice Chairman andDirector                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| /s/ David L. Becker                                                                                                               David L. Becker, Director              | /s/ Steven L. Maas                                                                                                                 Steven L. Maas, Director                                       |
| /s/ Lawrence Connell                        Lawrence Connell, Vice Chairman andDirector                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | /s/ Calvin D. Meeusen                                                      Calvin D. Meeusen, Director                                                                                                                                                                                                                                                                                                                                                                                                   |
| /s/ Michael J. Devine                        Michael J. Devine, Director                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | /s/ Lyle W. Miller                                                                                                                  Lyle W. Miller, Vice Chairman andDirector           |
| /s/ James C. Epolito                                                                                                            James C. Epolito, Director                              | /s/ Myrl D. Nofziger                                                          Myrl D. Nofziger, Director                                                                                                                                                                                                                                                                                                                                                                        |
| /s/ Gary A. Falkenberg                                                   Gary A. Falkenberg, Director                                                                                                                                                                                                                                                                                                                                                                                | /s/ Cristin K. Reid                                                                                                                   Cristin K. Reid, Corporate President andDirector  |
| /s/ Joel I. Ferguson                                                                                                               Joel I. Ferguson, Director                      | ________________________________________Ronald K. Sable, Director                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| /s/ Kathleen A. Gaskin                                                    Kathleen A. Gaskin, Director                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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