Document:

Exhibit 10.1

                                                      July 5, 2005

Mr. Kevin J. Thomas
c/o Vitarich Laboratories, Inc.
4365 Arnold Avenue
Naples, Florida 34104

      Re:   Agreement and Plan of Merger dated as of August 31, 2004 by and
            among Kevin J. Thomas ("you"), Vitarich Laboratories, Inc., a
            Florida corporation, Argan, Inc. ("Parent"), and Vitarich
            Laboratories, Inc., a Delaware corporation (formerly known as
            AGAX/VLI Acquisition Corporation) ("Vitarich"), as amended by
            that certain letter agreement dated January 28, 2005 (the
            "January 28, 2005 Letter Agreement") by and among you, Argan and
            Vitarich (said Agreement and Plan of Merger, as amended by the
            January 28, 2005 Letter Agreement, is hereinafter referred to as
            the "Merger Agreement")

Dear Kevin:

      This letter shall memorialize our agreement concerning the calculation and
payment of the Additional Consideration (as such term and all other capitalized
terms used and not specifically defined herein are defined in the Merger
Agreement).

      We understand, acknowledge and agree that:

      A. The value of Vitarich's inventory of certain products produced,
marketed and sold by Vitarich, as more particularly described on Schedule A
attached hereto (hereinafter referred to as "Adaptogens"), on the Closing
Balance Sheet was written down by the amount of $264,000 (the "Write-down");

      B. As a result of the Write-down, the Adjusted EBITDA of the Company based
on the February 28, 2005 Financial Statements was reduced by a like amount,
which had the effect of reducing the amount of the Additional Consideration
payable to you under Section 2.4 of the Merger Agreement; and

      C. Parent, Vitarich and you (together, the "parties") agree that, in order
to provide for fairness and to further the ongoing business relationship of the
parties, the parties have established a mechanism by which you have earned back
all but $264,000 of the total amount by which the Additional Consideration
payable to you was reduced as a result of the Write-down and may earn back the
$264,000 (the "Additional Earn-back Amount").

      Now, therefore, in consideration of the above and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereby agree as follows:

<PAGE>

Mr. Kevin J. Thomas
July 5, 2005
Page 2

      1. The recitals set forth above are hereby incorporated into this letter
agreement as if fully set forth herein.

      2. The Additional Consideration has been computed in accordance with the
terms and conditions of Section 2.4 of the Merger Agreement, as set forth on
Schedule B, attached hereto, to which computation the parties stipulate and
agree; provided, however, that such amount shall be paid upon the full execution
and delivery of this letter agreement as follows: (a) in cash in the amount of
$275,000, (b) by delivery of a subordinated term note in the principal amount of
the Additional Cash Consideration, as contemplated by the January 28, 2005
Letter Agreement (but after taking account of the cash payment described in
clause (a), such principal amount being $2,698,131), and (c) through issuance of
Argan Stock in the amount of the Additional Stock Consideration (but after
taking account of the cash payment described in clause (a), such amount being
348,146 shares of Argan Stock). The parties acknowledge and agree that, as a
result of the Write-down, the Additional Consideration so payable to you was
reduced by the amount of $1,452,000 (i.e., $264,000 times 5.5, which amount is
hereinafter referred to as the "Earn-back Amount").

      3. Notwithstanding anything to the contrary contained in the Merger
Agreement or this letter agreement, the parties hereby agree that you are
entitled to an amount equal to the Earn-back Amount less $264,000 (the "Reduced
Earn-back Amount"), which will be deemed to be an additional component of the
Additional Consideration, and will be paid to you by Parent in accordance with
Paragraph 5 below. Additionally, notwithstanding anything to the contrary
contained in the Merger Agreement or this letter agreement, if the amount of
inventory of Adaptogens on hand as of the Earn-back Date (as defined in
Paragraph 7 below) is equal to or less than 14,000 liters, then you will be
entitled to the Additional Earn-back Amount, which will be deemed to be an
additional component of the Additional Consideration, and will be paid to you by
Parent in accordance with Paragraph 5 below.

      4. For purposes of this letter agreement, the "Earn-back Date" shall mean
November 30, 2005, or, at your option, any date between September 1, 2005 and
November 30, 2005. Any such option to fix the Earn-back Date as of a date before
November 30, 2005 shall be exercised by you, if at all, by giving written notice
thereof to Parent within ten (10) days following the date so chosen by you. In
the event that you do not exercise your option to so fix the Earn-back Date as
of a date before November 30, 2005, then the Earn-back Date shall be November
30, 2005.

      5. Parent will pay you the Reduced Earn-back Amount and the Additional
Earn-back Amount, if applicable, in full without any deduction, defense,
counterclaim, holdback, chargeback, offset or setoff of any kind or nature,
fifty percent (50%) through the issuance by Parent of a subordinated promissory
note in the form of Exhibit 1 attached hereto (the "Subordinated Promissory
Note"), and fifty percent (50%) through the issuance of Argan Stock. Parent
shall deliver the Subordinated Promissory Note and said Argan Stock on or before

<PAGE>

Mr. Kevin J. Thomas
July 5, 2005
Page 3

the date that is thirty (30) days following the receipt by Vitarich of the full
amount of the purchase price payable for all Adaptogens sold by Vitarich from
February 1, 2005 through the Earn-back Date; provided, however, that interest on
the principal amount of the Subordinated Promissory Note shall begin to accrue
as of the Earn-back Date. Notwithstanding anything to the contrary contained in
the Merger Agreement, for purposes of determining the number of shares of Argan
Stock to be issued to you as a part of the Reduced Earn-back Amount and the
Additional Earn-back Amount, if applicable, pursuant to this letter agreement,
the value of each share of Argan Stock shall be deemed to be Seven and 75/100
Dollars ($7.75).

      6. It is understood and agreed that the Subordinated Promissory Note shall
constitute subordinated debt of Parent, and in furtherance thereof, you agree to
execute and deliver, contemporaneously with the execution and delivery by Parent
of the Subordinated Promissory Note, an Amended and Restated Debt Subordination
Agreement by and among you, Parent and Bank of America, N.A., in the form of
Exhibit 2 attached hereto.

      7. For purposes of this letter agreement, (a) "the amount of inventory of
Adaptogens on hand as of the Earn-back Date" shall mean liters of Adaptogens
physically stored at the Main Facility and the Ancillary Facilities as of the
Earn-back Date, which were included in the inventory conducted as of January 31,
2005, and (b) all sales of Adaptogens referenced in Paragraph 3 above shall mean
and refer only to sales of Adaptogens without extraordinary discounts in price
or payment terms. Notwithstanding anything to the contrary contained in this
letter agreement, any purchase of additional inventory of Adaptogens by Vitarich
during the period starting on the date of this letter agreement and ending on
the Earn-back Date shall require the prior written consent of both you and
Parent.

      Except as specifically set forth hereinabove, all of the terms, covenants
and conditions of the Merger Agreement shall remain in full force and effect.

      If the above accurately reflects our understanding, please so indicate by
signing both copies of this letter agreement where indicated below, keep one
fully-executed copy for your files, and return the other fully-executed copy to
me.

                                       Sincerely yours,

                                       ARGAN, INC.

                                       By: /s/ Haywood Miller
                                           -------------------------
                                           Haywood Miller
                                           Executive Vice President

                   [Signatures continue on following page]

<PAGE>

Mr. Kevin J. Thomas
July 5, 2005
Page 4
                                       VITARICH LABORATORIES, INC.
                                       a Delaware corporation

                                          By: /s/ Haywood Miller
                                              ------------------------
                                          Haywood Miller
                                          Vice President and Secretary

SEEN AND AGREED:

/s/ Kevin J. Thomas
-------------------
KEVIN J. THOMAS

cc:    David B. Law, Esq.
       Jeffery A. Bahnsen, Esq.Exhibit 10.2

                     (Form of Subordinated Promissory Note)

                                    [FORM OF]

                             SUBORDINATED TERM NOTE
                             (EARN-BACK OBLIGATIONS)

            THIS SUBORDINATED TERM NOTE (EARN-BACK  OBLIGATIONS) AND
            INDEBTEDNESS EVIDENCED HEREBY ARE AND SHALL AT ALL TIMES
            BE AND  REMAIN  SUBORDINATED  IN RIGHT OF PAYMENT TO THE
            EXTENT  AND IN THE  MANNER  SET  FORTH  IN THAT  CERTAIN
            AMENDED  AND  RESTATED  DEBT  SUBORDINATION   AGREEMENT,
            EFFECTIVE  AS OF JUNE 30,  2005,  BY AND  AMONG  BANK OF
            AMERICA,  N.A., ARGAN, INC., A DELAWARE  CORPORATION AND
            KEVIN J. THOMAS, AN INDIVIDUAL,  TO THE PRIOR PAYMENT IN
            FULL OF ALL SUPERIOR DEBT (AS DEFINED THEREIN).

$___________________                         As of [INSERT EARN-BACK DATE], 2005

      FOR VALUE RECEIVED,  the undersigned,  ARGAN, INC., a Delaware corporation
(the  "Maker"),  hereby  promises  to pay to the order of KEVIN J.  THOMAS  (the
"Creditor"),  at 6620 Daniels Road, Naples,  Florida 34104, the principal sum of
_______________________________________________DOLLARS   ($______________)  (the
"Principal  Amount"),  in  lawful  money of the  United  States  of  America  in
immediately available funds, without deduction, set-off or counterclaim,  and to
pay interest  from the date hereof on the  principal  amount hereof from time to
time outstanding, in like funds, at a rate per annum equal to ten percent (10%).
Interest  hereunder shall be due and payable on a quarterly basis  commencing on
January 1, 2006 and continuing on the first day of each April, July, October and
January  thereafter.  Unless otherwise  prepaid as a Mandatory  Prepayment or an
Additional Mandatory Prepayment as provided below, the Principal Amount together
with all accrued  and unpaid  interest  thereon  shall be due and payable in one
installment on August 1, 2006.

      Notwithstanding  the forgoing,  in the event that the Maker receives gross
cash consideration (prior to the payment of any fees, discounts, costs, expenses
or  commissions)  in  connection  with one or more public  offerings  or private
placements  of the Maker's  capital stock during the period from the date hereof
to August  1,  2006  which is in excess  of  $1,000,000  in the  aggregate  (the
"Aggregate  Consideration"),  the Maker shall prepay the Principal  Amount by an
amount equal to that portion of the Aggregate  Consideration  which is in excess
of $1,000,000 (a "Mandatory Prepayment") so that all capital raised by the Maker
which is in excess of  $1,000,000  shall be paid over to the  Holder  until such
time as the Principal  Amount and all other sums due hereunder have been paid in
full.

<PAGE>

      In addition,  Maker agrees that it shall not close any  transaction  after
the  Earn-back  Date (as that term is defined in that certain  Letter  Agreement
among the Maker,  the  Creditor  and  Vitarich  Laboratories,  Inc.,  a Delaware
corporation  effective as of June 30, 2005 (the "Letter  Agreement"))  involving
the  acquisition  by Maker of all or  substantially  all of the  capital  stock,
equity interests or assets of any corporation,  partnership,  limited  liability
company  or any other  organization  or entity (an  "Acquisition")  unless on or
before the closing of any such  Acquisition all amounts due hereunder shall have
been paid in full (the "Additional Mandatory  Prepayment");  provided,  however,
that,  notwithstanding the forgoing, the Maker shall not be required to make the
Additional  Mandatory Prepayment in connection with any acquisition by the Maker
of  any  assets,  capital  stock  or  other  equity  interests  of  any  of  its
subsidiaries  or  affiliates  whether  as a result  of a merger or for any other
reason.

      Interest  on the  outstanding  Principal  Amount  shall be computed on the
basis of the actual number of days elapsed over a 365 day year.

      The Maker hereby waives diligence, presentment, demand, protest and notice
of any kind  whatsoever.  The  non-exercise  by the  holder of any of its rights
hereunder in any  particular  instance  shall not constitute a waiver thereof in
that or any subsequent instance.

THIS  SUBORDINATED  TERM NOTE  (EARN-BACK  OBLIGATIONS)  SHALL BE  CONSTRUED  IN
ACCORDANCE  WITH AND GOVERNED BY THE LAWS OF THE STATE OF  CONNECTICUT,  WITHOUT
REGARD TO CHOICE OF LAW DOCTRINE, AND ANY APPLICABLE LAWS OF THE UNTED STATES OF
AMERICA.

This Subordinated Term Note (Earn-back  Obligations) is being issued in full and
complete satisfaction of all obligations of the Maker to pay to the Creditor the
Reduced  Earn-back  Amount (as defined in and calculated  pursuant to the Letter
Agreement)  and the  Additional  Earn-back  Amount (as defined in and calculated
pursuant to the Letter Agreement), as applicable.

                                       ARGAN, INC.

                                       By: _____________________________________
                                           Name:  ____________________
                                           Title:  _________________

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