Document:

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                                                                    Exhibit 10.6

                         EXECUTIVE EMPLOYMENT AGREEMENT
                         ------------------------------

         This EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement") is made and entered
into as of the 12th day of February, 2002, by and between CARDINAL FINANCIAL
CORPORATION ("Cardinal") and Janet A. Valentine ("you" and all similar
references) (collectively, the "parties").

                                  INTRODUCTION
                                  ------------

         WHEREAS, Cardinal has previously retained you to provide services in an
executive capacity; and

         WHEREAS, the parties now desire to memorialize the terms and conditions
of your continuing employment.

         NOW THEREFORE, in consideration of the promises and obligations by and
between the parties under this Agreement, and other valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

                                      TERMS
                                      -----

1.       Employment.   By accepting employment with Cardinal, you agree:
         ----------

         (a)      to devote your professional time, best efforts, attention and
                  energies to Cardinal's business and to perform any and all
                  work assigned to you by Cardinal faithfully and at such times
                  and places as Cardinal designates;

         (b)      that your employment is terminable "at will" meaning that
                  either party may terminate your employment relationship with
                  Cardinal at any time, subject to the terms and conditions set
                  forth in Section 4 of this Agreement.

2.       Compensation and Benefits.
         -------------------------

         (a)      Upon the commencement of your employment, Cardinal will pay
                  you a base salary, less required and authorized withholding
                  and deductions, payable in installments in accordance with its
                  normal payroll practices. From time to time, Cardinal may
                  adjust your salary and other compensation in its discretion.

         (b)      During your employment, you will be eligible to receive, in
                  Cardinal's discretion, an annual performance bonus, stock
                  option grant and to participate in any employee compensation
                  or benefit plans (including group medical and 401(k)).
                  Cardinal may amend or discontinue any of its plans, programs,
                  policies and procedures at any time for any or no reason with
                  or without notice.

3.       Covenants. You understand that Cardinal has invested, and will continue
         ---------
         to invest, significant resources in your training and development. You
         further understand that Cardinal's "business" includes the performance
         and rendering of banking and/or financial services. Therefore, in light
         of these understandings you agree to the following obligations which
         are reasonably designed to protect Cardinal's legitimate business
         interests without unreasonably restricting your ability to seek or
         obtain employment after your employment with Cardinal terminates for
         any reason.

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                  3.1      Prohibition on Competition. During the term of this
                           Agreement, and for a period of six (6) months from
                           the date you are terminated for Cause or your
                           Voluntary Termination, you shall not render or
                           perform competing banking and/or financial services
                           within twenty-five (25) miles from your office or
                           Cardinal's corporate headquarters. This provision
                           shall not be construed to prevent you from obtaining
                           employment in the banking and/or financial services
                           industries provided your new endeavor does not
                           violate the above-stated prohibition.

                  3.2      Covenant Not to Solicit Clients or Prospective
                           Clients. During the term of this Agreement, and for a
                           period of six (6) months from the date you are
                           terminated for Cause or your Voluntary Termination,
                           you agree not to contact any client or prospective
                           client of Cardinal with whom you have had any contact
                           on behalf of Cardinal to perform or render banking
                           and/or financial services. This provision shall not
                           be construed to prevent you from contacting clients
                           with whom you have not had any contact during the
                           term of this Agreement.

                  3.3      Restriction on the Solicitation of Cardinal's
                           Employees. During the term of this Agreement and for
                           a period of six (6) months from the date of you are
                           terminated for Cause or your Voluntary Termination,
                           you agree not to attempt to induce any Cardinal
                           employee to terminate his or her employment, or to
                           seek or accept any employment with any other business
                           entity that performs banking and/or financial
                           services.

         (a)      For the purpose of this Agreement, "Client" means any entity
                  for which Cardinal has performed banking and/or financial
                  services within the twelve months from your termination date.
                  "Prospective Client" means any entity that is not a Client but
                  with respect to whom, within twelve (12) months from your
                  termination date, you conducted, prepared, submitted (or
                  assisted or supervised such conduct) any client development
                  work product or marketing efforts on behalf of Cardinal.

         (b)      In the event that any term set forth above (including, but not
                  limited to, the duration of the restraint or the geographic
                  scope) is deemed unreasonable by a court of competent
                  jurisdiction or an arbitration tribunal, the parties agree
                  that the unreasonable term may be modified or reduced in
                  accordance with the applicable law.

         (c)      You understand that damages Cardinal will suffer as a result
                  of your breach of any provision of Section 3 of this Agreement
                  are impossible to reasonably calculate and may irreparably
                  harm Cardinal. Nothing in this Agreement shall be construed to
                  prevent Cardinal from seeking any form of injunctive relief to
                  enforce any provision of this Agreement.

4.       Termination of Employment Relationship.  Your employment is terminable
         --------------------------------------
         at will. That means that your employment relationship with Cardinal may
         be terminated by either party at any time, for any reason or no reason
         at all, subject to the notice provision addressed below.

         (a)      Cardinal may terminate your employment for Cause effective
                  immediately upon written notice. In the event that Cardinal
                  terminates your employment for Cause, you will be entitled to
                  earned and unpaid base salary and payment for any earned and
                  unused vacation days through the last date of your employment.

                  For the purpose of this Agreement, "Cause" means any of the
                  following conduct by you: (i) embezzlement, misappropriation
                  of corporate funds or other material acts of dishonesty; (ii)
                  commission or conviction of any felony or entry of a plea of
                  guilty or nolo contendere to any felony; (iii) material
                  failure to adhere to Cardinal's corporate codes, policies or
                  procedures; (iv) insubordination or any act of gross
                  misconduct; or (v) of any

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                  applicable regulatory authority revokes the necessary
                  approvals for you to serve as an Executive with Cardinal.

         (b)      Cardinal also may terminate your employment other than for
                  Cause, or for no reason, effective upon written notice or any
                  later date, if specified in the Notice.

                  (i)      If Cardinal terminates you pursuant to this Section
                           4(b) you will be entitled to all earned and unpaid
                           base salary through your last day of employment,
                           subject to the provisions set forth in 4(b)(ii).
                           Furthermore, Cardinal will pay you six (6) months
                           salary (over the course of those six (6) months),
                           less required and authorized withholding and
                           deductions. Additionally, Cardinal will continue your
                           group health and dental insurance benefits over the
                           course of those six (6) months.

                  (ii)     If Cardinal terminates you pursuant to Section 4(b)
                           within twelve (12) months after the Effective Date of
                           a Change in Control, Cardinal shall pay you,
                           exclusively and in lieu of the benefits which
                           otherwise would have been payable under this
                           Agreement, eighteen (18) months salary, in one lump
                           sum payment, less required and authorized
                           withholdings and deductions. The lump sum payment
                           shall be made by Cardinal within thirty (30) days
                           from your last day of employment. Additionally,
                           Cardinal will continue your group health and dental
                           insurance benefits over the course of those eighteen
                           (18) months.

         (c)      You may Voluntarily Terminate your employment with Cardinal
                  upon thirty (30) days prior written notice directed to
                  Cardinal's President and Chief Executive Officer ("CEO"). The
                  President and CEO, in his sole capacity may waive this notice
                  requirement.

         (d)      Regardless of the basis of your termination of employment, you
                  agree to provide all assistance requested by Cardinal in
                  transitioning your duties, responsibilities client and other
                  Cardinal relationships to other Cardinal personnel, both
                  during your employment and after your termination or
                  resignation.

5.       Change in Control. Notwithstanding the terms and conditions set forth
         -----------------
         in Section 4 of this Agreement, in the event of a Change in Control you
         may elect to Voluntarily Terminate your employment pursuant to Section
         5 of this Agreement upon thirty (30) days prior written notice, if such
         notice is received by Cardinal no sooner than ten (10) months after the
         Effective Date of the Change of Control and no later than twelve (12)
         months after the Effective Date of the Change in Control.

         (a)      If you voluntarily terminate your employment with Cardinal
                  pursuant to Section 5 of this Agreement, Cardinal shall pay
                  you, exclusively and in lieu of the benefits which otherwise
                  would have been payable under this Agreement, eighteen (18)
                  months salary, in one lump sum payment, less required and
                  authorized withholdings and deductions. The lump sum payment
                  shall be made by Cardinal within thirty (30) days from your
                  last day of employment. Additionally, Cardinal will continue
                  your group health and dental insurance benefits over the
                  course of those eighteen (18) months.

         (b)      For the purpose of this Agreement, "Change in Control" means a
                  merger or consolidation in which (i) Cardinal is a constituent
                  party, or (ii) a Company Subsidiary is a constituent party and
                  Cardinal issues shares of its capital stock pursuant to such
                  merger or consolidation, except any such merger or
                  consolidation involving Cardinal or a Company Subsidiary in
                  which the holders of capital stock of Cardinal immediately
                  prior to such merger or consolidation continue to hold
                  immediately following such merger or consolidation more than
                  fifty (50) percent by voting power of the capital stock of or
                  ownership interest in (A) the surviving or resulting entity or
                  (B) if the surviving or resulting entity is a wholly owned
                  subsidiary of another entity immediately following such merger
                  or

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                  consolidation, the parent entity of such surviving or
                  resulting entity. "Change in Control" may also mean the sale,
                  in a single transaction or series of related transactions, (i)
                  by Cardinal of all or substantially all the assets of Cardinal
                  (except where such sale is to a wholly owned subsidiary of the
                  Company), or (ii) by the stockholders of Cardinal of more than
                  fifty (50) percent by voting power of the then-outstanding
                  capital stock of Cardinal. Finally, a "Change of Control" may
                  constitute the occurrence of any agreement, happening or
                  device, which has substantially the same effect on the control
                  of Cardinal as any of the foregoing.

         (c)      For the purpose of this Agreement, "Effective Date" means the
                  close of business on the date on which a "Change of Control"
                  occurs.

6.       Assignment and Survival. The rights and obligations of Cardinal under
         -----------------------
         this Agreement shall inure to the benefit of, and shall be binding
         upon, the successors and assigns of Cardinal. Your rights and
         obligations are personal, and may not be assigned or delegated without
         the Company's proper written consent. The Agreement shall continue
         despite any liquidation or dissolution of Cardinal.

7.       Severability. If any provision of this Agreement is held invalid or
         ------------
         unenforceable for any reason, the invalidity shall not nullify the
         validity of the remaining provisions of this Agreement. If any
         provision of this Agreement is determined by a court or arbitration
         tribunal to be overly broad in duration, geographical coverage or
         scope, or unenforceable for any other reason, such provision will be
         narrowed so that it will be enforced as much as permitted by law.

8.       Choice of Law. This Agreement shall be governed by the laws of the
         -------------
         Commonwealth of Virginia. You and Cardinal consent to the jurisdiction
         and venue of any state or federal court in the Commonwealth of Virginia
         and agree that any permitted lawsuit may be brought to such courts or
         other court of competent jurisdiction. Each party hereby waives,
         releases and agrees not to assert, and agrees to cause its affiliates
         to waive, release and not assert, any rights such party or its
         affiliates may have under any foreign law or regulation that would be
         inconsistent with the terms of this Agreement as governed by Virginia
         law.

9.       Waiver.  Any party's waiver of any other party's breach of any
         ------
         provision of this Agreement shall not waive any other right or any
         future breaches of the same or any other provision. The CEO may, in his
         or her sole discretion, waive in writing any provision of this
         Agreement.

10.      Notices.  Any notices, requests, demands or other communications
         -------
         provided for in this Agreement shall be in writing and shall be given
         either manually or by registered or certified mail. Either party may,
         by written notice to the other party, change their address for receipt
         of such notice.

                  If to the Company:
                  Bernard H. Clineburg
                  President and CEO
                  Cardinal Financial Corporation
                  10555 Main Street
                  Fairfax, Virginia 22030

                  If to the Employee:

                  Janet A. Valentine
                  2102 Glencourse Lane
                  Reston, VA 20191

11.      Entire Agreement.  This Agreement is the entire agreement between you
         ----------------
         and Cardinal regarding these matters and supersedes any verbaland
         written agreements on such matters. This Agreement may be modified only
         by written agreement signed by you and the CEO or his or her

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         express designee. All Section headings are for convenience only and do
         not modify or restrict any of this Agreement's terms.

12.      Counterparts.  For convenience of the parties, this Agreement may be
         ------------
         executed in one or more counterparts, each of which shall be deemed an
         original for all purposes.

The parties state that they have read, understood and agree to be bound by this
Agreement and that they have had the opportunity to seek the advice of legal
counsel before signing it and have either sought such counsel or have
voluntarily decided not to do so:

CARDINAL FINANCIAL CORPORATION              EMPLOYEE

By: /s/ Bernard H. Clineburg               /s/ Janet A. Valentine
    ------------------------               ----------------------
                                                (Signature)

Its: President and CEO                      Janet A. Valentine
     -----------------                      ------------------
         (Title)                       (Print Employee's Full Name)

 Dated: 2-12-02                             Dated: 2-12-02
        -------                                    -------

                                        5<PAGE>

                                                                    Exhibit 10.7

                         CARDINAL FINANCIAL CORPORATION

                             1999 STOCK OPTION PLAN

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                         CARDINAL FINANCIAL CORPORATION
                             1999 STOCK OPTION PLAN
                             ----------------------
                           (as amended April 23, 2001)

                                    ARTICLE I

                                   DEFINITIONS
                                   -----------

         "Affiliate" means any "subsidiary" or "parent" corporation (within the
meaning of Section 424 of the Code) of the Company.

         "Agreement" means a written agreement (including any amendment or
supplement thereto) between the Company and a Participant specifying the terms
and conditions of an Option granted to such Participant.

         "Board" means the Board of Directors of the Company.

         "Code" means the Internal Revenue Code of 1986, and any amendments
thereto.

         "Committee" means the Executive Compensation Committee of the Board.

         "Common Stock" means the common stock of the Company.

         "Company" means Cardinal Financial Corporation.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended
and as in effect on the date of this Agreement.

         "Fair Market Value" means, on any given date, the closing price of a
share of Common Stock as reported on the NASDAQ market on which the Common Stock
trades ("NASDAQ") on such date, or if the Common Stock was not traded on the
NASDAQ on such day, then on the next preceding day that the Common Stock was
traded on such market, all as reported by such source as the Board may select.

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         "Option" means a stock option that entitles the holder to purchase from
the Company a stated number of shares of Common Stock at the price set forth in
an Agreement.

         "Participant" means an employee of the Company or an Affiliate,
including an employee who is a member of the Board, or an individual who
provides services to the Company or an Affiliate, who satisfies the requirements
of Article IV and is selected by the Board to receive an Option.

         "Plan" means the Cardinal Financial Corporation 1999 Stock Option Plan.

         "Ten Percent Shareholder" means any individual owning more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of an Affiliate. An individual shall be considered to own any voting
stock owned (directly or indirectly) by or for his brothers, sisters, spouse,
ancestors or lineal descendants and shall be considered to own proportionately
any voting stock owned (directly or indirectly) by or for a corporation,
partnership, estate or trust of which such individual is a shareholder, partner
or beneficiary.

                                   ARTICLE II

                                    PURPOSES
                                    --------

         The Plan is intended to assist the Company and its Affiliates in
recruiting and retaining individuals with ability and initiative by enabling
such persons to participate in the future success of the Company and its
Affiliates and to associate their interests with those of the Company and its
shareholders. The Plan is intended to permit the grant of both Options
qualifying under Section 422 of the Code ("incentive stock options") and Options
not so qualifying. No Option that is intended to be an incentive stock option
shall be invalid for failure to qualify as an

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incentive stock option. The proceeds received by the Company from the sale of
Common Stock pursuant to this Plan shall be used for general corporate purposes.

                                   ARTICLE III

                                 ADMINISTRATION
                                 --------------

         The Plan shall be administered by the Board. The Board shall have
authority to grant Options upon such terms (not inconsistent with the provisions
of this Plan) as the Board may consider appropriate. Such terms may include
conditions (in addition to those contained in this Plan) on the exercisability
of all or any part of an Option. Notwithstanding any such conditions, the Board
may, in its discretion, accelerate the time at which any Option may be
exercised. In addition, the Board shall have complete authority to interpret all
provisions of this Plan; to prescribe the form of Agreements; to adopt, amend,
and rescind rules and regulations pertaining to the administration of the Plan;
and to make all other determinations necessary or advisable for the
administration of this Plan. The express grant in the Plan of any specific power
to the Board shall not be construed as limiting any power or authority of the
Board. Any decision made, or action taken, by the Board or in connection with
the administration of this Plan shall be final and conclusive. Neither the Board
nor any member of the Committee shall be liable for any act done in good faith
with respect to this Plan or any Agreement. All expenses of administering this
Plan shall be borne by the Company.

         The Board, in its discretion, may delegate to one or more officers of
the Company or the Committee, all or part of the Board's authority and duties
with respect to grants and awards to individuals who are not subject to the
reporting and other provisions of Section 16 of the Exchange Act. The Board may
revoke or amend the terms of a delegation at any time but such

                                       4

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action shall not invalidate any prior actions of the Board's delegate or
delegates that were consistent with the terms of the Plan.

                                   ARTICLE IV

                                   ELIGIBILITY
                                   -----------

         Any employee of the Company or an Affiliate (including a corporation
that becomes an Affiliate after the adoption of this Plan) or a person who
provides services to the Company or an Affiliate (including a corporation that
becomes an Affiliate after the adoption of this Plan) is eligible to participate
in this Plan if the Board, in its sole discretion, determines that such person
has contributed significantly or can be expected to contribute significantly to
the profits or growth of the Company or an Affiliate. Directors of the Company
or an Affiliate may be selected to participate in this Plan.

                                    ARTICLE V

                              STOCK SUBJECT TO PLAN
                              ---------------------

         5.01.  Shares Issued.  Upon the exercise of any Option the Company may
                -------------
deliver to the Participant (or the Participant'sbroker if the Participant so
directs), shares of Common Stock from its authorized but unissued Common Stock.

         5.02.  Aggregate Limit. The maximum aggregate number of shares of
                ---------------
Common Stock that may be issued under this Plan pursuant to the exercise Options
is Six Hundred Twenty-Five Thousand (625,000) shares. The maximum aggregate
number of shares that may be issued under this Plan shall be subject to
adjustment as provided in Article VII.

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         5.03.  Reallocation of Shares. If an Option is terminated, in whole or
                ----------------------
in part, for any reason other than its exercise, the number of shares of Common
Stock allocated to the Option or portion thereof may be reallocated to other
Options to be granted under this Plan.

                                   ARTICLE VI

                                     OPTIONS
                                     -------

         6.01.  Award.  In accordance with the provisions of Article IV, the
                -----
Board will designate each individual to whom an Option is to be granted and will
specify the number of shares of Common Stock covered by such awards.

         6.02.  Option Price. The price per share for Common Stock purchased on
                ------------
the exercise of an Option shall be determined by the Board on the date of grant.
The price per share for Common Stock purchased on the exercise of any Option
that is an incentive stock option granted to an individual who is a Ten Percent
Shareholder on the date such option is granted, shall not be less than one
hundred ten percent (110%) of the Fair Market Value on the date the Option is
granted.

         6.03.  Maximum Option Period. The maximum period in which an Option may
                ---------------------
be exercised shall be determined by the Board on the date of grant, except that
no Option that is an incentive stock option shall be exercisable after the
expiration of ten years from the date such Option was granted. In the case of an
incentive stock option that is granted to a Participant who is a Ten Percent
Shareholder on the date of grant, such Option shall not be exercisable after the
expiration of five years from the date of grant. The terms of any Option that is
an incentive stock option may provide that it is exercisable for a period less
than such maximum period.

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         6.04.  Nontransferabiliy. Except as provided in Section 6.05, each
                -----------------
Option granted under this Plan shall be nontransferable except by will or by the
laws of descent and distribution. In the event of any such transfer, the Option
must be transferred to the same person or persons or entity or entities. During
the lifetime of the Participant to whom the Option is granted, the Option may be
exercised only by the Participant. No right or interest of a Participant in any
Option shall be liable for, or subject to, any lien, obligation, or liability of
such Participant.

         6.05.  Transferable Options. Section 6.04 to the contrary
                --------------------
notwithstanding, if the Agreement provides, an Option that is not an incentive
stock option may be transferred by a Participant to the Participant's children,
grandchildren, spouse, one or more trusts for the benefit of such family members
or a partnership in which such family members are the only partners; provided,
however, that Participant may not receive any consideration for the transfer. In
addition to transfers described in the preceding sentence the Board may grant
Options that are not incentive stock options that are transferable on other
terms and conditions as may be permitted under Securities Exchange Commission
Rule 16b-3 as in effect from time to time. The holder of an Option transferred
pursuant to this section shall be bound by the same terms and conditions that
governed the Option during the period that it was held by the Participant. In
the event of any such transfer, the Option must be transferred to the same
person or persons or entity or entities.

         6.06.  Employee Status. For purposes of determining the applicability
                ---------------
of Section 422 of the Code (relating to incentive stock options), or in the
event that the terms of any Option provide that it may be exercised only during
employment or within a specified period of time after termination of employment,
the Board may decide to what extent leaves of absence for governmental or
military service, illness, temporary disability, or other reasons shall not be
deemed interruptions of continuous employment.

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         6.07.  Exercise. Subject to the provisions of this Plan and the
                --------
applicable Agreement, an Option may be exercised in whole at any time or in part
from time to time at such times and in compliance with such requirements as the
Board shall determine; provided, however, that incentive stock options (granted
under the Plan and all plans of the Company and its Affiliates) may not be first
exercisable in a calendar year for stock having a Fair Market Value (determined
as of the date an Option is granted) exceeding $100,000. An Option granted under
this Plan may be exercised with respect to any number of whole shares less than
the full number for which the Option could be exercised. A partial exercise of
an Option shall not affect the right to exercise the Option from time to time in
accordance with this Plan and the applicable Agreement with respect to the
remaining shares subject to the Option.

         6.08.  Payment. Useless otherwise provided by the Agreement, payment of
                -------
the Option price shall be made in cash or a cash equivalent acceptable to the
Board. If the Agreement provides, payment of all or part of the Option price may
be made by surrendering shares of Common Stock to the Company. If Common Stock
is used to pay all or part of the Option price, the sum of the cash and cash
equivalent and the Fair Market Value (determined as of the day preceding the
date of exercise) of the shares surrendered must not be less than the Option
price of the shares for which the Option is being exercised.

         6.09.  Installment Payment. If the Agreement provides, and if the
                -------------------
Participant is employed by the Company on the date the Option is exercised,
payment of all or part of the Option price may be made in installments. In that
event the Company shall lend the Participant an amount equal to not more than
ninety percent (90%) of the Option price of the shares acquired by the exercise
of the Option. This amount shall be evidenced by the Participant's promissory
note and shall be payable in not more than five equal annual installments,
unless the amount of

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the loan exceeds the maximum loan value for the shares purchased, which value
shall be established from time to time by regulations of the Board of Governors
of the Federal Reserve System. In that event, the note shall be payable in equal
quarterly installments over a period of time not to exceed five years. The
Board, however, may vary such terms and make such other provisions concerning
the unpaid balance of such purchase price in the case of hardship, subsequent
termination of employment, absence on military or government service, or
subsequent death of the Participant as in its discretion are necessary or
advisable in order to protect the Company, promote the purposes of the Plan and
comply with regulations of the Board of Governors of the Federal Reserve System
relating to securities credit transactions.

         The Participant shall pay interest on the unpaid balance at the minimum
rate necessary to avoid imputed interest or original issue discount under the
Code. All shares acquired with cash borrowed from the Company shall be pledged
to the Company as security for the repayment thereof. In the discretion of the
Board, shares of stock may be released from such pledge proportionately as
payments on the note (together with interest) are made, provided the release of
such shares complies with the regulations of the Federal Reserve System relating
to securities credit transactions then applicable. While shares are so pledged,
and so long as there has been no default in the installment payments, such
shares shall remain registered in the name of the Participant, and he shall have
the right to vote such shares and to receive all dividends thereon.

         6.10.  Shareholder Rights.  No Participant shall have any rights as a
                -----------------
shareholder with respect to shares subject to his Option until the date of
exercise of such Option.

         6.11.  Disposition of Stock. A Participant shall notify the Company of
                --------------------
any sale or other disposition of Common Stock acquired pursuant to an Option
that was an incentive stock option if such sale or disposition occurs (i) within
two years of the grant of an Option or (ii) within one

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year of the issuance of the Common Stock to the Participant. Such notice shall
be in writing and directed to the Secretary of the Company.

                                   ARTICLE VII

                     ADJUSTMENT UPON CHANGE IN COMMON STOCK
                     --------------------------------------

         The maximum number of shares as to which Options may be granted under
this Plan, and the terms of outstanding Options shall be adjusted as the Board
shall determine to be equitably required in the event that (a) the Company (i)
effects one or more stock dividends, stock split-ups, subdivisions or
consolidations of shares or (ii) engages in a transaction to which Section 424
of the Code applies or (b) there occurs any other event which, in the judgment
of the Board necessitates such action. Any determination made under this Article
VII by the Board shall be final and conclusive.

         The issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, for cash or property,
or for labor or services, either upon direct sale or upon the exercise of rights
or warrants to subscribe therefor, or upon conversion of shares or obligations
of the Company convertible into such shares or other securities, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
maximum number of shares as to which Options may be granted, or the terms of
outstanding Options.

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                                  ARTICLE VIII

                             COMPLIANCE WITH LAW AND
                          APPROVAL OF REGULATORY BODIES
                          -----------------------------

         No Option shall be exercisable, no Common Stock shall be issued and no
certificates for shares of Common Stock shall be delivered, except in compliance
with all applicable federal and state laws and regulations (including, without
limitation, withholding tax requirements), any listing agreement to which the
Company is a party, and the rules of all domestic stock exchanges on which the
Company's shares may be listed. The Company shall have the right to rely on an
opinion of its counsel as to such compliance. Any share certificate issued to
evidence Common Stock or for which an Option is exercised may bear such legends
and statements as the Board may deem advisable to assure compliance with federal
and state laws and regulations. No Option shall be exercisable, no Common Stock
shall be issued, no certificate for shares shall be delivered, and no payment
shall be made under this Plan until the Company has obtained such consent or
approval as the Board may deem advisable from regulatory bodies having
jurisdiction over such matters.

                                   ARTICLE IX

                               GENERAL PROVISIONS
                               ------------------

         9.01.  Effect on Employment and Service. Neither the adoption of this
                --------------------------------
Plan, its operation, nor any documents describing or referring to this Plan (or
any part thereof) shall confer upon any individual any right to continue in the
employ or service of the Company or an Affiliate or in any way affect any right
and power of the Company or an Affiliate to terminate the employment or service
of any individual at any time with or without assigning a reason therefor.

                                       11

<PAGE>

         9.02.  Unfunded Plan. The Plan, insofar as it provides for grants,
                -------------
shall be unfunded, and the Company shall not be required to segregate any assets
that may at any time be represented by grants under this Plan. Any liability of
the Company to any person with respect to any grant under this Plan shall be
based solely upon any contractual obligations that may be created pursuant to
this Plan. No such obligation of the Company shall be deemed to be secured by
any pledge of, or other encumbrance on, any property of the Company.

         9.03.  Rules of Construction.  Headings are given to the articles and
                ---------------------
sections of this Plan solely as a convenience to facilitate reference. The
reference to any statute, regulation, or other provision of law shall be
construed to refer to any amendment to or successor of such provision of law.

                                    ARTICLE X

                                    AMENDMENT
                                    ---------

         The Board may amend or terminate this Plan from time to time; provided,
however, that no amendment may become effective until shareholder approval is
obtained if (i) the amendment increases the aggregate number of shares of Common
Stock that may be issued under the Plan, (ii) the amendment changes the class of
individuals eligible to become Participants or (iii) the amendment materially
increases the benefits that may be provided under the Plan. No amendment shall,
without a Participant's consent, adversely affect any rights of such Participant
under any Option outstanding at the time such amendment is made.

                                       12

<PAGE>

                                   ARTICLE XI

                                DURATION OF PLAN
                                ----------------

         No Option may be granted under this Plan after November 23, 2008.
Options granted before that date shall remain valid in accordance with their
terms.

                                   ARTICLE XII

                             EFFECTIVE DATE OF PLAN
                             ----------------------

         No Option shall be effective or exercisable unless this Plan is
approved by a majority of the votes entitled to be cast by the Company's
shareholders, voting either in person or by proxy, at a duly held shareholders'
meeting within twelve months of such adoption.

                                       13

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