Document:

EXHIBIT 4.2

               [Letterhead of the Offices of Michael L. Corrigan]

                                   LAW OFFICES
                                       OF
                               MICHAEL L. CORRIGAN

                         7770 Regents Rd. Suite 113-401
TELEPHONE (858) 362-1440     San Diego, CA 92122-1967   FACSIMILE (858) 362-1441

                                 August 2, 2004

RTG Ventures Inc.
Attn: Linda Perry

                              Engagement Agreement

Dear Ms. Perry:

         The purpose of this letter is to confirm our association as special and
limited counsel for RTG Ventures Inc., a Florida corporation (the "Client") in
connection with the securities and other legal work to be performed by Michael
L. Corrigan (the "Attorney") on an ongoing basis for a period of one year as
requested by you. Please pardon the formality of this letter but it is intended
to set out the details of our relationship as required by the California
Business and Professions Code section 6148 and is intended to fulfill the
requirements of that section. The Attorney's services will not include, among
other areas of law, (i) litigation of any kind, whether in court, in
administrative hearings or before government agencies or arbitration tribunals,
(ii) any legal services relating to the raising of capital, including the
preparation of securities registration statements, other securities offering
documents or documents relating to stock promotions. I will assist in locating
appropriate legal counsel and coordinate any litigation or capital raising
matters, at your request. This letter agreement (the "Agreement") will set forth
in writing, signed by the Attorney and the Client, my understanding and
agreement regarding the scope of my representation. All agreements relating to
fees and responsibilities are contained within the provisions of this Agreement.

         This Agreement will not take affect, and I will have no obligation to
provide legal services, until you return a signed copy of this Agreement and pay
the retainer, if any, called for in Paragraph 3 of this Agreement.

         1. Scope and Duties of the Attorney and the Client.

         You have requested, and I have agreed, subject to the terms of this
Agreement, to provide legal services in connection with such matters as you
shall from time to time specifically refer to me for legal representation. I
shall provide those legal services reasonably required to represent the Client,
and shall take reasonable steps to keep the Client informed of the progress and
to respond to the inquiries of the Client. The Client agrees to be truthful with
me, cooperate with me, keep me informed of developments, abide by this
Agreement, pay the bills on time, and keep me advised of its address and
telephone number. My engagement will be strictly limited to those matters for
which I am specifically asked to render services, and I do not undertake to, and
shall have no responsibility for, advice with respect to matters I am not
specifically asked to address. Nothing in this Agreement and nothing in the
Attorney's statements to Client will be construed as a promise or guarantee
about the outcome of Client's matter, including registration of the securities.
The Attorney makes no such promises or guarantees. The Attorney's comments about
the outcome of Client's matter are expressions of opinion(s) only.

         2. Fees and Costs.

         (a) As compensation for the services to be performed by the Attorney
pursuant to this Agreement, the Client agrees to pay fees to the Attorney as
provided in Exhibit A to this Agreement. The Client and the Attorney will agree
on the scope and cost of the services as they are requested.

         (b) The Client agrees to pay the Attorney, in accordance with this
subparagraph 2(b) and in addition to the fees designated in subparagraph 2(a)
herein, all costs and expenses incurred in performing legal services in
connection with the representation described in this Agreement. Such costs and
expenses may include, without limitation, long distance telephone calls,
messenger and other deliveries, postage, charges for computer research and
outside assisted legal research, expenses such as parking, airfare, meals and
hotel accommodations which shall be in addition to the hourly rates for
photocopying and other reproduction charges, clerical staff overtime, word
processing charges, charges for computer time, and other similar items. Except
as may be listed on Exhibit A, all such items will be charged to the Client at
the Attorney's cost. The charges for any items listed on the attached Exhibit A
are subject to periodic change upon reasonable notice by the Attorney to the
Client. The Client agrees to pay in advance all costs incurred in connection
with the representation described herein, however, as a courtesy, the Attorney
from time to time will advance some of these minor costs and the Client will be
billed for such advances. The Attorney will attempt to obtain an estimate for
any major expenses prior to incurring such an expense so that the Attorney may
clear such major expense with the Client.

<PAGE>

         3. Retainer.

         The Client hereby agrees to deliver, upon execution of this Agreement,
a retainer in the amount provided in Exhibit A to this Agreement. The shares of
common stock delivered as retainer shall be deposited in the Attorney's account
and shall remain in the account for so long as this Agreement shall remain in
effect. Upon termination of this Agreement, as set forth below, the shares
representing the retainer shall be returned to Client or, if mutually agreed,
applied against any outstanding fees, costs or expenses. This Agreement shall
not become effective until the Attorney has received such retainer.

         4. Billings.

         The Attorney will send the Client an invoice for fees and costs
incurred on a quarterly basis. Invoices shall be payable upon receipt. The
Attorney's invoice shall clearly state the basis for a charge, including the
amount, rate and basis for calculation (or other method of determination) of the
Attorney's costs and expenses. The Attorney's invoices shall clearly show the
application of any retainer amounts to the payment for the fees and costs
incurred, as Ill as the remaining amount of any retainer deposited with the
Attorney.

         5. Termination of Services.

         The Client shall have the right at any time to terminate the Attorney's
service upon written notice to the Attorney, and the Attorney shall immediately
after receiving such notice cease to render additional services. Such
determination shall not, however, relieve Client of the obligation to pay the
fees due for services rendered and costs incurred prior to such termination
subject to Exhibit A hereto. If the Client fails to meet any of its obligations
under this Agreement, the Attorney shall have the right to terminate this
Agreement, and the Client shall take all steps necessary to free the Attorney of
any obligation to perform further, including, without limitation, the execution
of any documents necessary to complete the Attorney's discharge or withdrawal.
The right of the Attorney hereunder is in addition to those created by statute
or recognized by Rules of Professional Conduct.

         In the event it becomes necessary for the Attorney to institute legal
action to recover any amount due pursuant to the terms of this Agreement, the
prevailing party in such action will be entitled to reasonable attorney fees and
costs incurred in such action and enforcement of any judgment.

         6. Conflicts of Interest.

         The parties to this letter agreement acknowledge that there may be
conflicts of interest in having the Attorney represent any members of the
Client. To the extent that certain agreements and arrangements may be made among
various members of the Client, the Attorney may have conflicts of interest if it
represented any such members. Therefore, the parties hereby acknowledge and
agree that the Attorney represents only RTG Ventures Inc. and does not represent
any other party, person or entity. Furthermore, the Client hereby acknowledges
that in connection with this engagement agreement, the Client is represented by
independent legal counsel and that the Company has had the benefit of
independent legal advice.

         7. Miscellaneous.

         Please be advised that the Attorney does not maintain Errors and
Omissions insurance or any other professional liability insurance.

         If you have any questions with regard to any matter set forth in this
Agreement, or if you have some different understanding of any portion of this
Agreement, please contact the undersigned immediately so that I can discuss
those items and determine if I will be able to reach an agreement by which I
will represent you.

<PAGE>

         If the foregoing correctly sets forth understanding and agreement,
please date, sign and return this Agreement in the return envelope, indicating
that it meets with your approval. A copy of this Agreement is enclosed for your
file. I appreciate the confidence you have expressed by asking me to represent
you.

Sincerely,

MICHAEL L. CORRIGAN

/s/ Michael Corrigan
Michael L. Corrigan
Attorney at Law

THE UNDERSIGNED HAS READ THE FOREGOING LETTER, APPROVED IT, AND AGREES WITH ALL
OF ITS TERMS AND CONDITIONS.

Dated:   August 2, 2004

                                                CLIENT

                                                RTG Ventures Inc.

                                                By: /s/ Linda Perry
                                                    --------------------------
                                                    Linda Perry, CEO

<PAGE>

                                    EXHIBIT A

  1. Retainer:          None.

  2. Fees:              In consideration of the Attorney providing the Client
                        with professional services subsequent to the execution
                        of this Agreement, within 5 days following the execution
                        of this Agreement, Client agrees to register, via a
                        Securities Act of 1933 S-8 Registration Statement
                        ("S-8"), one million (1,000,000) shares of the Client's
                        common stock.

                        Pay to the Attorney a total of one million (1,000,000)
                        non-restricted, freely tradable shares of the Client's
                        common stock, due within 10 days following the execution
                        of this Agreement.

  3. Costs and Expenses Charged to Client above the Attorney's Cost:

     Photocopying               $0.20 per copy

     Facsimile (Outgoing)       $0.55 per page

     Other                      at Attorney's CostREGISTRATION RIGHTS AGREEMENT

      THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made as of August
31, 2004,  by and among ARGAN,  INC., a Delaware  corporation  (the  "Company");
KEVIN J. THOMAS (the "Stockholder").

                                R E C I T A L S:

      WHEREAS,  the Stockholder  owns all of the issued and outstanding  capital
stock ("Vitarich Stock") of Vitarich  Laboratories,  Inc., a Florida corporation
("Vitarich");

      WHEREAS, the Company has agreed to acquire all of the Vitarich Stock via a
merger between a subsidiary of the Company and Vitarich (the "Merger")  pursuant
to the terms of the Merger Agreement;

      WHEREAS,  in  accordance  with the  terms  of the  Merger  and the  Merger
Agreement,  the  Stockholder of Vitarich is to receive cash and shares of Common
Stock as consideration and in exchange for his Vitarich Stock; and

      WHEREAS,  in connection  with the issuance by the Company of the shares of
Common Stock, and as an inducement to consummate the  transactions  contemplated
by the Merger Agreement, the Company has agreed to file a registration statement
with the  Commission in  compliance  with the  Securities  Act in respect to the
Common Stock issued in connection with the Merger.

      NOW,  THEREFORE,  in consideration of the foregoing and the agreements set
forth below, the parties hereby agree with each other as follows:

      1. Certain  Definitions.  As used in this  Agreement,  the following terms
shall have the following respective meanings:

      "Additional  Stock  Consideration"  shall have the meaning as set forth in
the Merger Agreement.

      "Closing" shall have the meaning as set forth in the Merger Agreement.

      "Commission"  shall mean the  Securities and Exchange  Commission,  or any
other federal agency at the time administering the Securities Act.

      "Common Stock" shall mean the Company's Common Stock,  $0.15 par value, as
constituted as of the date of this Agreement.

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended,
or any similar federal statute,  and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

<PAGE>

      "Merger  Agreement"  Agreement and Plan of Merger dated August 31, 2004 by
and between  Vitarich,  the  Stockholder,  the Company and AGAX/VLI  Acquisition
Corporation, a Delaware corporation which is a 100% subsidiary of the Company.

      "Merger  Shares"  shall  mean  shares  of:  (a)  Common  Stock  issued  in
connection with the Merger in accordance with the terms of the Merger Agreement;
and (b) any securities of the Company issued as (or issuable upon the conversion
or exercise  of any  warrant,  right,  or other  security  which is issued as) a
dividend  or other  distribution  with  respect  to,  or in  exchange  for or in
replacement of, such above-described securities.

      "Registration Expenses" shall mean the expenses so described in Section 5.

      "Restricted  Stock" shall mean the Merger Shares,  excluding Merger Shares
which  have  been:  (a)  registered  under the  Securities  Act  pursuant  to an
effective  registration statement filed thereunder and disposed of in accordance
with the registration  statement covering them; or (b) publicly sold pursuant to
Rule 144 under the Securities Act.

      "Securities Act" shall mean the Securities Act of 1933, as amended, or any
similar  federal  statute,  and the  rules  and  regulations  of the  Commission
thereunder, all as the same shall be in effect at the time.

      "Selling Expenses" shall mean the expenses so described in Section 5.

      2. Restrictive Legend. Each certificate  representing Merger Shares shall,
except  as  otherwise  provided  in this  Section  2, be  stamped  or  otherwise
imprinted with a legend substantially in the following form:

      "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR
ANY STATE  SECURITIES  LAWS AND MAY NOT BE TRANSFERRED OR OTHERWISE  DISPOSED OF
UNLESS IT HAS BEEN REGISTERED  UNDER SUCH ACT AND ALL SUCH APPLICABLE LAWS OR AN
EXEMPTION FROM REGISTRATION IS AVAILABLE."

A certificate  shall not bear such legend if: (a) the Merger Shares  represented
by such certificate have been registered under the Securities Act; or (b) in the
opinion of counsel  satisfactory to the Company (it being agreed that an opinion
of Greenberg  Traurig,  P.A. shall be satisfactory)  the securities  represented
thereby may be publicly sold without  registration  under the Securities Act and
any applicable state securities laws.

      3. Required Registration. The Company shall use its best efforts to effect
the  registration  under the  Securities  Act of all of the shares of Restricted
Stock held by the Stockholder,  or his respective assigns, pursuant to the terms
of this Agreement.

      4.  Registration  Procedures.  Whenever  the  Company is  required  by the
provisions  of Section 3 to use its best efforts to effect the  registration  of
any shares of Restricted  Stock under the  Securities  Act, the Company will, as
expeditiously as possible:

                                       2
<PAGE>

            (a) Use its best  efforts to prepare  and file with the  Commission:
(i)  within  120 days after the date of the  Closing;  and (ii)  within 120 days
after  the  issuance  of  the  Additional  Stock  Consideration  a  registration
statement with respect to such securities and use its best efforts to cause such
registration  statement  to become  and remain  effective  for the period of the
distribution  contemplated thereby (determined as hereinafter provided) or until
the Restricted  Stock held by the  Stockholder  can be publicly sold pursuant to
Rule 144 under the Securities Act;

            (b)  prepare  and  file  with the  Commission  such  amendments  and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration  statement effective for
the period  specified in subsection  (a) above and comply with the provisions of
the  Securities  Act with respect to the  disposition  of all  Restricted  Stock
covered by such registration  statement in accordance with the sellers' intended
method of disposition set forth in such registration statement for such period;

            (c)  furnish  to  each  seller  of  Restricted  Stock,  and to  each
underwriter if applicable,  such number of copies of the registration  statement
and the prospectus  included therein (including each preliminary  prospectus) as
such persons  reasonably  may request in order to facilitate  the public sale or
other   disposition  of  the  Restricted  Stock  covered  by  such  registration
statement;

            (d) use its best efforts to register or qualify the Restricted Stock
covered by such  registration  statement under the securities or "blue sky" laws
of such  jurisdictions  as the sellers of Restricted Stock or, in the case of an
underwritten  offering,  the  managing  underwriter  reasonably  shall  request;
provided,  however,  that the Company shall not for any such purpose be required
to qualify  generally  to  transact  business  as a foreign  corporation  in any
jurisdiction  where it is not so qualified  or to consent to general  service of
process in any such jurisdiction;

            (e) use its best  efforts to list the  Restricted  Stock  covered by
such  registration  statement  with any  securities  exchange or stock market on
which the Common Stock of the Company is then listed;

            (f)  immediately  notify  each seller of  Restricted  Stock and each
underwriter,  if applicable,  at any time when a prospectus  relating thereto is
required to be delivered under the Securities Act, of the happening of any event
of which the Company has knowledge as a result of which the prospectus contained
in such registration  statement, as then in effect, includes an untrue statement
of a  material  fact or omits to state a  material  fact  required  to be stated
therein or necessary to make the  statements  therein not misleading in light of
the circumstances then existing;

            (g) if the offering is underwritten and at the request of any seller
of Restricted Stock, use its best efforts to furnish on the date that Restricted
Stock is delivered to the underwriters  for sale pursuant to such  registration:
(i) an opinion  dated  such date of counsel  representing  the  Company  for the
purposes of such registration, addressed to the underwriters and to such seller,
stating  that  such  registration  statement  has  become  effective  under  the
Securities Act and that (A) to the best knowledge of such counsel, no stop order
suspending the effectiveness thereof has been issued and no proceedings for that
purpose have been instituted or are pending or contemplated under the Securities
Act; (B) the registration  statement,  the related prospectus and each amendment

                                       3
<PAGE>

or  supplement  thereof  comply  as to form in all  material  respects  with the
requirements  of the  Securities  Act (except that such counsel need not express
any opinion as to financial statements contained therein); and (C) to such other
effects as  reasonably  may be requested by counsel for the  underwriters  or by
such  seller  or its  counsel;  and  (ii) a  letter  dated  such  date  from the
independent  public  accountants  retained  by  the  Company,  addressed  to the
underwriters  and to such  seller,  stating  that  they are  independent  public
accountants within the meaning of the Securities Act and that, in the opinion of
such  accountants,  the  financial  statements  of the  Company  included in the
registration  statement  or the  prospectus,  or  any  amendment  or  supplement
thereof,  comply  as to  form  in all  material  respects  with  the  applicable
accounting   requirements   of  the  Securities   Act,  and  such  letter  shall
additionally cover such other financial matters (including information as to the
period  ending no more than five business days prior to the date of such letter)
with respect to such registration as such underwriters reasonably may request;

            (h) make  available  for  inspection  by each  seller of  Restricted
Stock,  any  underwriter  participating  in any  distribution  pursuant  to such
registration statement, and any attorney,  accountant or other agent retained by
such seller or underwriter, all financial and other records, pertinent corporate
documents  and  properties  of the Company,  and cause the  Company's  officers,
directors and employees to supply all  information  reasonably  requested by any
such seller,  underwriter,  attorney,  accountant or  representative or agent in
connection with such registration statement; and

            (i) if at such time as the Company  files a  registration  statement
pursuant to the  requirements  of Section 3 it is a  registrant  entitled to use
Form S-3 or any successor thereto to register the Restricted Stock, use its best
efforts to register the Restricted Stock under the Securities Act on Form S-3 or
any successor  thereto,  for public sale in the manner  specified by the holders
thereof.

      In  connection  with  any  registration  pursuant  to  Section  3 that  is
underwritten,  the  Company  and  each  seller  agree to  enter  into a  written
agreement with the managing underwriter selected by the sellers in such form and
containing such provisions as are customary in the securities  business for such
an arrangement  between such underwriter and companies of the Company's size and
investment stature.

      For  purposes of Sections  4(a) and 4(b),  the period of  distribution  of
Restricted Stock in any  registration  statement shall be deemed to extend until
the earlier of the sale of all  Restricted  Stock  covered  thereby and 180 days
after the effective date of such registration statement.

      In connection with each registration hereunder,  the sellers of Restricted
Stock will  furnish to the Company in writing such  information  with respect to
themselves  and  the  proposed  distribution  by  them as  reasonably  shall  be
necessary  in order to assure  compliance  with  federal  and  applicable  state
securities laws.

                                       4
<PAGE>

      5. Expenses.

            (a) All expenses  incurred by the Company in complying with Sections
3 and 4,  including,  without  limitation,  all  registration  and filing  fees,
printing  expenses,  fees and  disbursements  of counsel and independent  public
accountants for the Company, fees and expenses (including counsel fees) incurred
in connection  with complying with state  securities or "blue sky" laws, fees of
the National  Association of Securities  Dealers,  Inc., transfer taxes, fees of
transfer agents and registrars and costs of insurance, but excluding any Selling
Expenses,  are called  "Registration  Expenses." All underwriting  discounts and
selling  commissions  applicable  to the sale of  Restricted  Stock  are  called
"Selling Expenses."

            (b) The Company  will pay all  Registration  Expenses in  connection
with each  registration  statement  under  Section 3. All  Selling  Expenses  in
connection  with each  registration  statement under Section 3 shall be borne by
the participating sellers in proportion to the number of shares sold by each, or
by such  participating  sellers other than the Company (except to the extent the
Company shall be a seller) as they may agree.

      6. Indemnification and Contribution.

            (a) Upon the  registration of any of the Restricted  Stock under the
Securities  Act  pursuant  to Section 3, the  Company  will  indemnify  and hold
harmless each seller of such Restricted Stock thereunder,  each underwriter,  if
applicable,  of such Restricted Stock thereunder and each other person,  if any,
who controls  such seller or  underwriter  within the meaning of the  Securities
Act,  along with the  partners,  members,  directors,  and officers of each such
seller,  underwriter or controlling person,  against any losses, claims, damages
or  liabilities,  joint  or  several,  to  which  such  seller,  underwriter  or
controlling person may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in  respect  thereof)  arise out of or are based upon any  untrue  statement  or
alleged  untrue  statement of any material  fact  contained in any  registration
statement under which such Restricted  Stock was registered under the Securities
Act  pursuant  to  Section 3, any  preliminary  prospectus  or final  prospectus
contained therein,  or any amendment or supplement  thereof,  or arise out of or
are based upon the omission or alleged omission to state therein a material fact
required to be stated  therein or necessary to make the  statements  therein not
misleading,  and will reimburse each such seller, each such underwriter and each
such  controlling  person,  along with the  partners,  members,  directors,  and
officers of each such seller,  underwriter or controlling  person, for any legal
or other expenses  reasonably  incurred by them in connection with investigating
or  defending  any such loss,  claim,  damage,  liability  or action;  provided,
however,  that the  Company  will not be  liable  in any such case if and to the
extent that any such loss, claim,  damage or liability arises out of or is based
upon an untrue  statement  or alleged  untrue  statement  or omission or alleged
omission so made in conformity  with  information  furnished by any such seller,
any such underwriter or any such controlling person in writing  specifically for
use in such registration statement or prospectus or supplement thereof.

            (b) In the event of a registration  of any of the  Restricted  Stock
under the Securities  Act pursuant to Section 3, each seller of such  Restricted
Stock  thereunder,  severally and not jointly,  will indemnify and hold harmless
the Company, each person, if any, who controls the Company within the meaning of
the  Securities  Act,  each  officer of the Company  who signs the  registration
statement,  each director of the Company,  each  underwriter and each person who
controls any underwriter  within the meaning of the Securities Act,  against all
losses, claims,  damages or liabilities,  joint or several, to which the Company

                                       5
<PAGE>

or such officer, director,  underwriter or controlling person may become subject
under the Securities Act or otherwise,  insofar as such losses,  claims, damages
or  liabilities  (or actions in respect  thereof) arise out of or are based upon
any untrue  statement or alleged untrue statement of any material fact contained
in the  registration  statement under which such Restricted Stock was registered
under the  Securities Act pursuant to Section 3, any  preliminary  prospectus or
final prospectus  contained therein,  or any amendment or supplement thereof, or
arise out of or are based upon the omission or alleged omission to state therein
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements therein not misleading,  and will reimburse the Company and each such
officer,  director,  underwriter and  controlling  person for any legal or other
expenses  reasonably  incurred  by  them in  connection  with  investigating  or
defending any such loss, claim, damage, liability or action; provided,  however,
that such  seller will be liable  hereunder  in any such case if and only to the
extent that any such loss, claim,  damage or liability arises out of or is based
upon an untrue  statement  or alleged  untrue  statement  or omission or alleged
omission made in reliance upon and in conformity with information  pertaining to
such  seller,  as such,  furnished  in  writing to the  Company  by such  seller
specifically for use in such registration  statement or prospectus or supplement
thereof,  and;  provided,  further,  however,  that the liability of each seller
hereunder  shall be limited to the proportion of any such loss,  claim,  damage,
liability or expense that is equal to the  proportion  that the public  offering
price of the shares sold by such seller under such registration  statement bears
to the total public offering price of all securities sold thereunder, but not in
any event to exceed the net  proceeds  received  by such seller from the sale of
Restricted Stock covered by such registration statement.

            (c) The Company  hereby  agrees to indemnify  and hold harmless each
holder of  Restricted  Stock  against  and in respect  of: (i) any loss,  claim,
liability, obligation, or damage which such holder may suffer or incur resulting
from or arising in connection with any misrepresentation,  breach of warranty or
non-fulfillment  of any  covenant  or  agreement  on  the  part  of the  Company
contained  in  Section 9; and (ii) all  actions,  suits,  proceedings,  demands,
assessments,  judgments, reasonable attorneys' fees, costs and expenses incident
to the forgoing.

            (d) Promptly  after  receipt by an  indemnified  party  hereunder of
notice of the  commencement of any action,  such  indemnified  party shall, if a
claim in respect thereof is to be made against the indemnifying party hereunder,
notify the indemnifying party in writing thereof.  The omission so to notify the
indemnifying  party shall not relieve it from any liability  that it may have to
such indemnified party other than under this Section 6 and shall only relieve it
from any liability that it may have to such indemnified party under this Section
6 if and to the extent the indemnifying party is prejudiced by such omission. In
case any such action shall be brought against any indemnified party and it shall
notify the  indemnifying  party of the  commencement  thereof,  the indemnifying
party shall be entitled to  participate  in and, to the extent it shall wish, to
assume and  undertake  the defense  thereof  with counsel  satisfactory  to such
indemnified  party,  and,  after  notice  from  the  indemnifying  party to such
indemnified  party of its  election  so to  assume  and  undertake  the  defense
thereof,  the indemnifying  party shall not be liable to such indemnified  party
under  this  Section  6 for any legal  expenses  subsequently  incurred  by such
indemnified  party in connection  with the defense thereof other than reasonable
costs of  investigation  and of  liaison  with  counsel so  selected;  provided,
however, that, if the defendants in any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have reasonably
concluded  that  there  may be  reasonable  defenses  available  to it which are
different from or additional to those available to the indemnifying  party or if
the interests of the indemnified party reasonably may be deemed to conflict with
the interests of the indemnifying  party,  the indemnified  party shall have the
right to  select a  separate  counsel  and to assume  such  legal  defenses  and
otherwise to  participate  in the defense of such action,  with the expenses and
fees of such separate counsel and other expenses  related to such  participation
to be reimbursed by the indemnifying party as incurred.

                                       6
<PAGE>

            (e) In order to provide for just and equitable contribution to joint
liability  under the Securities Act in any case in which either:  (i) any holder
of Restricted Stock exercising  rights under this Agreement,  or any controlling
person of any such holder,  makes a claim for  indemnification  pursuant to this
Section 6 but it is judicially  determined  (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal
or the denial of the last right of appeal) that such  indemnification may not be
enforced in such case  notwithstanding the fact that this Section 6 provides for
indemnification  in such case; or (ii) contribution under the Securities Act may
be  required  on the part of any such  selling  holder  or any such  controlling
person in circumstances for which indemnification is provided under this Section
6; then, and in each such case,  the Company and such holder will  contribute to
the  aggregate  losses,  claims,  damages  or  liabilities  to which they may be
subject (after  contribution from others) in such proportion so that such holder
is responsible  for the portion  represented  by the percentage  that the public
offering price of its  Restricted  Stock offered by the  registration  statement
bears  to  the  public  offering  price  of  all  securities   offered  by  such
registration  statement,  and the Company shall be responsible for the remaining
portion;  provided,  however, that, in any such case: (A) no such holder will be
required to contribute any amount in excess of the net proceeds received by such
seller from the sale of Restricted Stock covered by such registration statement;
and (B) no person or entity guilty of fraudulent  misrepresentation  (within the
meaning of Section 11(f) of the Securities Act) will be entitled to contribution
from  any   person  or   entity   who  was  not   guilty   of  such   fraudulent
misrepresentation.

      7.  Changes in Common  Stock.  If, and as often as, there is any change in
the  Common  Stock  by way of a stock  split,  stock  dividend,  combination  or
reclassification,   or  through  a  merger,  consolidation,   reorganization  or
recapitalization, or by any other means, appropriate adjustment shall be made in
the  provisions  hereof so that the rights and  privileges  granted hereby shall
continue with respect to the Common Stock as so changed.

      8. Rule 144  Reporting.  With a view to making  available  the benefits of
certain rules and  regulations of the  Commission,  which may at any time permit
the sale of the  Restricted  Stock to the public  without  registration,  at all
times after 180 days after any registration statement covering a public offering
of  securities  of the  Company  under  the  Securities  Act shall  have  become
effective, the Company agrees to:

            (a) make and keep public information  available,  as those terms are
understood and defined in Rule 144 under the Securities Act;

                                       7
<PAGE>

            (b) use its best  efforts  to file with the  Commission  in a timely
manner  all  reports  and other  documents  required  of the  Company  under the
Securities Act and the Exchange Act; and

            (c)  furnish  to each  holder of  Restricted  Stock  forthwith  upon
request  a  written  statement  by the  Company  as to its  compliance  with the
reporting  requirements  of Rule 144 and of the  Securities Act and the Exchange
Act, a copy of the most recent  annual or quarterly  report of the Company,  and
such other  reports  and  documents  so filed by the  Company as such holder may
reasonably  request  in  availing  itself  of  any  rule  or  regulation  of the
Commission   allowing  such  holder  to  sell  any   Restricted   Stock  without
registration.

      9.  Representations and Warranties of the Company. The Company represents,
warrants and  covenants to the  Stockholder  and any other holder of  Restricted
Stock as follows:

            (a) the execution, delivery and performance of this Agreement by the
Company have been duly authorized by all requisite corporate action and will not
violate  any  provision  of law,  any  order of any  court or  other  agency  of
government, the Charter or By-laws of the Company;

            (b) this  Agreement  has been duly  executed  and  delivered  by the
Company and constitutes the legal,  valid and binding obligation of the Company,
enforceable in accordance with its terms;

            (c)  that it will  not  file  with  the  Commission  a  registration
statement  with  respect  to any  shares of its  capital  stock  other  than the
Restricted  Stock prior to 90 days after the effective date of the  registration
statement  registering  the shares of Restricted  Stock to be issued at Closing;
and

            (d) that it will not include  any shares of its capital  stock other
than Restricted  Stock in any  registration  statement filed with the Commission
with respect to any Restricted  Stock,  without the prior written consent of the
holders of Restricted Stock.

      10. Miscellaneous.

            (a) An  original  copy  of  this  Agreement  shall  be  kept  by the
Secretary of the Company.

            (b) All covenants and  agreements  contained in this Agreement by or
on behalf of any of the  parties  hereto  shall bind and inure to the benefit of
the respective  successors and assigns of the parties hereto (including  without
limitation transferees of any Restricted Stock), whether so expressed or not.

            (c)  All  notices,  requests,   consents  and  other  communications
hereunder  shall be in  writing  and shall be  delivered  in  person,  mailed by
certified or registered mail, return receipt requested, or sent by telecopier or
telex, addressed as follows:

                  (i) if to  the  Company  or any  other  party  hereto,  at the
address of such party set forth in the Merger Agreement;

                                       8
<PAGE>

                  (ii) if to any subsequent holder of Restricted Stock, to it at
such  address  as may have been  furnished  to the  Company  in  writing by such
holder;

or, in any case, at such other address or addresses as shall have been furnished
in writing to the  Company (in the case of a holder of  Restricted  Stock) or to
the holders of Restricted  Stock (in the case of the Company) in accordance with
the provisions of this paragraph.

            (d) This Agreement  shall be governed by and construed in accordance
with the laws of the State of Delaware without regard to principles of conflicts
of law.

            (e) This Agreement may not be amended or modified,  and no provision
hereof may be waived, without the written consent of the Company and the holders
of at least a majority of the Restricted Stock.

            (f) This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

            (g) The Company shall not grant to any third party any  registration
rights more favorable than or inconsistent  with any of those contained  herein,
so long as any of the registration rights under this Agreement remain in effect.

            (h) If any provision of this Agreement  shall be held to be illegal,
invalid or unenforceable,  such illegality, invalidity or unenforceability shall
attach  only to such  provision  and  shall not in any  manner  affect or render
illegal,  invalid or  unenforceable  any other provision of this Agreement,  and
this  Agreement  shall  be  carried  out  as if any  such  illegal,  invalid  or
unenforceable provision were not contained herein.

            (i) This Agreement  constitutes the entire  agreement of the parties
with respect to the subject matter hereof.

                         [Signatures on following page]

                                       9
<PAGE>

      IN WITNESS  WHEREOF,  the parties  hereto have executed this  Registration
Rights Agreement as of the day and year first written above.

                                        COMPANY:

                                        ARGAN, INC.

                                        By: ________________________________
                                            H. Haywood Miller III
                                            Executive Vice President

                                        STOCKHOLDER:
                                        ------------

                                        --------------------------------
                                        KEVIN J. THOMAS

                                       10

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