Document:

EXHIBIT 10.3

            SECOND AMENDED AND RESTATED DEBT SUBORDINATION AGREEMENT

      THIS  AGREEMENT  effective  as of the 5th day of May,  2006,  by and among
KEVIN J.  THOMAS,  an  individual  (the  "Creditor"),  ARGAN,  INC.,  a Delaware
corporation  ("Argan"),  SOUTHERN MARYLAND CABLE,  INC., a Maryland  corporation
("SMC"),  VITARICH  LABORATORIES,  INC., a Delaware corporation  ("Vitarich" and
collectively  with Argan and SMC,  the  "Debtor")  and BANK OF AMERICA,  N.A., a
national banking association, its successors and assigns (the "Lender").

      WHEREAS,  reference  is  made  to  that  certain  Financing  and  Security
Agreement  among  Argan,  SMC and the Lender dated as of August 19, 2003 (as the
same may be  amended,  supplemented  or modified  from time to time,  the "FSA")
pursuant to which the Lender has  extended to the Debtor  certain  loans as more
particularly described therein (collectively, the "Loans"); and

      WHEREAS,  Argan,  executed and  delivered  to the Creditor a  subordinated
promissory note (the "Subordinated Note"); and

      WHEREAS,  Argan,  SMC, the Creditor and the Lender  entered into a certain
Debt Subordination Agreement dated as of January 31, 2005 (as amended,  restated
supplemented  or modified from time to time,  the "Existing  Debt  Subordination
Agreement"); and

      WHEREAS,  Argan  executed and  delivered  to the  Creditor a  Subordinated
Promissory  Note  (Earn-back  Obligations)  dated as of  November  30, 2005 (the
"Earn-back Subordinated Note"); and

      WHEREAS, the Debtor has requested that the Lender extend the maturity date
of a revolving line of credit,  make a new term loan to the Debtor under the FSA
and combine the Subordinated  Note and the Earn-back  Subordinated Note into one
Amended  and  Restated   Subordinated  Term  Note  (the  "Amended  and  Restated
Subordinated  Term Note"),  and the Lender has agreed on the condition  that the
Debtor  amend and restate the Existing  Debt  Subordination  Agreement  with the
Creditor as set forth herein; and

      WHEREAS,  capitalized  terms used herein and not defined herein shall have
the meanings assigned to such terms in the FSA; and

      NOW,  THEREFORE,  for value  received and in  consideration  of the mutual
benefits to be derived from this  Agreement,  the parties  hereto agree to amend
and restate the Existing Debt Subordination Agreement as follows:

      1. Definitions.

            (a) "Junior  Debt" means all of the present and future  indebtedness
(principal,  interest  (including,  without  limitation,  default  interest  and
interest  accruing  after the  commencement  of a  bankruptcy  proceeding  by or
against the  Debtor),  fees,  charges,  collection  and other costs  (including,
without   limitation,   attorney's   fees)  and  expenses  and  other  amounts),
liabilities and obligations of the Debtor to the Creditor,  all whether fixed or
contingent,  matured or unmatured,  and liquidated or  unliquidated  and whether
arising under contract, in tort or otherwise,  including without limitation, the
indebtedness arising under the Amended and Restated  Subordinated Term Note, and
all increases, extensions, modifications, refinancings, assignments and renewals
thereof, but does not include any Collateral.

<PAGE>

            (b) "Superior Debt" means all of the present and future indebtedness
(principal,  interest  (including,  without  limitation,  default  interest  and
interest  accruing  after the  commencement  of a  bankruptcy  proceeding  by or
against the  Debtor),  fees,  charges,  collection  and other costs  (including,
without   limitation,   attorney's   fees)  and  expenses  and  other  amounts),
liabilities and obligations  (including,  without  limitation,  letter of credit
reimbursement  obligations,  protective advances permitted under the FSA and the
other  Financing  Documents  for  unpaid  taxes,  insurance,   etc.,  and  yield
maintenance  and other  indemnification  amounts)  of the  Debtor to the  Lender
including  any such  indebtedness  under the FSA or any of the  other  Financing
Documents, all whether fixed or contingent, matured or unmatured,  liquidated or
unliquidated,  and whether arising under contract, in tort or otherwise, and all
increases, extensions, modifications,  refinancings, assignments and/or renewals
thereof, and all Collateral.

      2. Subordination.

            (a) The Creditor hereby postpones and subordinates all of the Junior
Debt to the full and final payment of all of the Superior Debt to the extent and
in the manner set forth herein, provided that so long as (i) no Default or Event
of Default has occurred and is continuing under or within the meaning of the FSA
or any of the other Financing  Documents and after giving effect to such payment
no Default or Event of Default would occur (including,  without limitation,  any
default  of any  financial  covenant  set  forth in the FSA or any of the  other
Financing  Documents),  and (ii) no event or condition has occurred  which would
constitute  such a Default or Event of  Default  but for the giving of notice or
passage of time, or both (including,  without limitation, any event or condition
that would cause a default of any financial covenant set forth in the FSA or any
of the other  Financing  Documents),  Lender agrees that for purposes of the FSA
and the other Financing  Documents Debtor is permitted to, and may make, and the
Creditor is permitted to, and may accept:  (A) regularly  scheduled  payments of
interest under the Junior Debt; (B) payments of principal  after August 1, 2007,
and (C) mandatory and optional prepayments of the Junior Debt including, without
limitation,  any Mandatory Prepayment, the Acquisition Mandatory Prepayment, the
Additional  Term Loan  Mandatory  Prepayment  or any other  optional  prepayment
allowed under the Junior Debt,  but only to the extent such  prepayments  do not
otherwise violate the prohibitions in clauses (i) and (ii) above.

            (b) The  Creditor  agrees  that so long as the Debtor is indebted to
the  Lender  under  or in  connection  with  the  FSA and  the  other  Financing
Documents,  the Creditor shall promptly provide the Lender (or its successors or
assigns,  as the case may be) with a copy of all notices which the Creditor from
time to time may serve upon the Debtor in connection with the Junior Debt.

                                       2
<PAGE>

      3.  Collateral  for  Superior  Debt.  In  furtherance  of and for the sole
purposes of  enforcing,  exercising  and securing the rights of the Lender under
Section 7 herein  relating to the Lender's  authority  to act as the  Creditor's
attorney-in-fact  in connection with a bankruptcy or similar  proceeding against
the  Creditor,  the Creditor  hereby  transfers  and assigns to the Lender,  its
successors  and  assigns,  all of its right,  title and  interest in and to, and
grants to the Lender,  its  successors and assign,  a security  interest in, the
Junior  Debt.  The  Creditor  agrees to  execute  and  deliver to the Lender any
additional  assignments and instruments deemed necessary by the Lender to effect
or confirm such assignment and transfer and to effect  collection of any and all
payments which may be made at any time on account of the Junior Debt.

      4. Warranties and Representations of Creditor and Debtor. The Creditor and
the Debtor hereby  represent  and warrant:  (a) that the Creditor has not relied
and will not rely on any  representation or information of any nature made by or
received  from  Lender  relative  to the  Debtor in  deciding  to  execute  this
Agreement  or to permit it to  continue in effect;  (b) that the  Creditor is or
will be the lawful  owner of the Junior  Debt and no part  thereof is subject to
any defense,  offset or  counterclaim;  (c) that the Creditor has not heretofore
assigned or transferred  any Junior Debt or any interest  therein;  and (d) that
the Creditor has not heretofore given any subordination in respect of the Junior
Debt.

      5. Negative  Covenants.  Except to the extent  otherwise  permitted  under
Section 2 hereof, until all of the Superior Debt has been fully and finally paid
and any obligations of the Lender to extend further Superior Debt is terminated:
(a) the Debtor shall not, directly or indirectly, make any payment on account of
the Junior Debt and shall not grant any security interest in, mortgage,  pledge,
assign or transfer  any of their  respective  assets to secure or satisfy all or
any part of the Junior Debt;  (b) the  Creditor  shall not demand or accept from
the Debtor or any other person any such payment of, or collateral for the Junior
Debt,  nor shall the  Creditor  enforce  any part of the  Junior  Debt;  (c) the
Creditor  shall not hereafter  give any  subordination  in respect of the Junior
Debt,  or transfer or assign any of the Junior Debt to any person other than the
Lender;  (d) the Debtor will not  hereafter  issue any  instrument,  security or
other writing  evidencing any part of the Junior Debt, and the Creditor will not
receive any such writing,  except upon the prior written  approval of the Lender
or at the request of and in the manner requested by the Lender; (e) the Creditor
will not commence or join with any other  creditors of the Debtor in  commencing
any bankruptcy,  reorganization,  receivership or insolvency  proceeding against
the Debtor;  and (f) neither the Creditor nor the Debtor shall otherwise take or
permit any action  prejudicial  to or  inconsistent  with the provisions of this
Agreement.

      6. Turnover of Prohibited  Transfers.  If any payment on account of or any
collateral  for any part of the  Junior  Debt is  received  by the  Creditor  in
violation of the terms of this  Agreement,  such payment or collateral  shall be
delivered  within  one  (1)  business  day by the  Creditor  to the  Lender  for
application to the Superior Debt, in the form received,  except for the addition
of any  endorsement  or assignment  necessary to effect a transfer of all rights
therein  to the  Lender.  The  Lender is  irrevocably  authorized  to supply any
required  endorsement  or  assignment  which  may have  been  omitted.  Until so
delivered, any such payment or collateral shall be held by the Creditor in trust
for the Lender and shall not be  commingled  with other funds or property of the
Creditor.

                                       3
<PAGE>

      7. Authority to Act for Creditor.  For so long as any of the Superior Debt
shall remain  unpaid,  the Lender shall have the right to act as the  Creditor's
attorney-in-fact  for the  purposes  specified  herein and the  Creditor  hereby
irrevocably appoints the Lender its true and lawful attorney, with full power of
substitution,  in the name of the Creditor or in the name of the Lender, for the
use and  benefit of the  Lender,  without  notice to the  Creditor or any of its
successors or assigns, to perform the following acts, at the Lender's option, at
any  meeting  of  creditors  of the  Debtor  or in  connection  with any case or
proceeding, whether voluntary or involuntary, for the distribution,  division or
application of the assets of the Debtor or the proceeds  thereof,  regardless of
whether such case or proceeding is for the liquidation,  dissolution, winding up
of affairs,  reorganization or arrangement of the Debtor, or for the composition
of  the  creditors  of  the  Debtor,  in  bankruptcy  or in  connection  with  a
receivership,  or under an assignment for the benefit of creditors of the Debtor
or otherwise:

            (a) To enforce claims  comprising the Junior Debt, either in its own
name or in the name of the Creditor,  by proof of debt, proof of claim,  suit or
otherwise;

            (b) To  collect  any assets of the  Debtor  distributed,  divided or
applied by way of  dividend  or payment  on account of the Junior  Debt,  or any
securities  issued on account of the Junior  Debt and to apply the same,  or the
proceeds of any realization  upon the same that Lender in its discretion  elects
to effect,  to the  Superior  Debt until all of the  Superior  Debt  (including,
without  limitation,  all  interest  accruing  on the  Superior  Debt  after the
commencement  of any  bankruptcy  case)  has been  paid in full,  rendering  any
surplus to the Creditor if and to the extent permitted by law;

            (c) To vote  claims  comprising  the Junior Debt to accept or reject
any  plan of  partial  or  complete  liquidation,  reorganization,  arrangement,
composition or extension; and

            (d) To take  generally  any  action  in  connection  with  any  such
meeting,  case or proceeding  that the Creditor  would be authorized to take but
for this Agreement.

      In no event shall the Lender be liable to the  Creditor for any failure to
prove the Junior Debt, to exercise any right with respect  thereto or to collect
any sums payable thereon.

      8. Waivers, Etc.

            (a) The  Creditor and the Debtor  hereby waive any defense  based on
the  adequacy  of a remedy at law which might be asserted as a bar to the remedy
of specific  performance of this Agreement in any action brought therefor by the
Lender. To the fullest extent permitted by law, the Creditor and the Debtor each
hereby further waives:  presentment,  demand, protest, notice of protest, notice
of default or dishonor,  notice of payment or  nonpayment  and any and all other
notices and demands of any kind in connection  with  instruments,  documents and
agreements evidencing,  securing or relating in any way to all or any portion of
the Superior  Debt or the Junior Debt to which the Creditor or the Debtor may be
a party; notice of the acceptance of this Agreement by the Lender; notice of any
loans made,  extensions  granted or other action taken by the Lender in reliance
hereon, including without limitation:  (i) granting time or other indulgences to
the Debtor,  (ii)  renewing,  extending,  modifying or  compromising  any of the
Superior Debt, (iii) possessing,  substituting,  modifying, waiving or releasing
any collateral  held as security for any of the Superior Debt, or (iv) adding or
releasing any person  primarily or  secondarily  liable  thereon;  and all other
demands  and  notices  of every  kind in  connection  with this  Agreement,  the
Superior  Debt or Junior  Debt,  and no such  action  taken by the Lender  shall
affect the subordination or other provisions herein in any manner.

                                       4
<PAGE>

            (b) In the  event  of any  sale,  assignment,  disposition  or other
transfer of the Junior Debt, the Creditor shall cause the transferee  thereof to
execute and deliver to the Lender an  agreement  (substantially  identical  with
this  Agreement or otherwise in form and substance  satisfactory  to the Lender)
providing  for the  continued  subordination  of the Junior Debt to the Superior
Debt as provided herein and for the continued effectiveness of all of the rights
arising under this Agreement.

      9. Indulgences Not Waivers.  Neither the failure nor any delay on the part
of the Lender to exercise any right,  remedy,  power or  privilege  hereunder or
under any  instruments,  documents or  agreements  evidencing or relating to the
Superior Debt shall operate as a waiver thereof or give rise to an estoppel, nor
be construed as an  agreement to modify the terms of this  Agreement,  nor shall
any single or partial  exercise of any right,  remedy,  power or privilege  with
respect to any occurrence be construed as a waiver of such right,  remedy, power
or  privilege  with respect to any other  occurrence.  No consent or waiver by a
party  hereunder  shall be  effective  unless it is in writing and signed by the
party  making such consent or waiver,  and then only to the extent  specifically
stated in such writing.

      10. Duration and Termination. This Agreement shall constitute a continuing
agreement  of  subordination  and shall  terminate  only upon the full and final
payment of the Superior Debt and  termination of any obligation of the Lender to
extend any further Superior Debt.  Neither the dissolution nor the bankruptcy of
the Creditor shall effect a termination hereof.

      11.  Administration by the Lender.  In the  administration of the Superior
Debt, either before or after a demand or default, the Creditor  acknowledges and
agrees that the Lender may  proceed in its sole  discretion,  including  without
limitation,  raising or lowering loan advances, interest rates or fees, charging
additional fees, declining to make further advances,  extending additional loans
or other financing  accommodations to the Debtor,  increasing the dollar amounts
of  the  Debtor's  credit  limits,   extending   credit  terms  and  maturities,
compromising  claims and  exchanging and releasing  collateral or obligors;  all
with no duty to the Creditor,  and no such action shall affect the subordination
or other provisions herein in any manner.

      12.  Notices.  All  notices,  requests,  demands and other  communications
required or  permitted  under this  Agreement  or by law shall be in writing and
shall be deemed to have been duly given,  made and received only when  delivered
against  receipt or when deposited in the United States mails,  certified  mail,
return receipt requested, postage prepaid, or when delivered by next day express
delivery service, addressed as set forth below:

                                       5
<PAGE>

      (a)         If to the Lender:       Bank of America, N.A.
                                          1101 Wootton Parkway
                                          4th Floor
                                          Attn: Michael Radcliffe
                                                Senior Vice President

      (b)         If to the Creditor:     Kevin J. Thomas
                                          6620 Daniels Road
                                          Naples, Florida 34104

      (c)         If to the Debtor:       Argan, Inc.
                                          One Church Street
                                          Suite 302
                                          Rockville, Maryland 20850
                                          Attn: Arthur Trudel
                                                Senior Vice President and CFO

      Any addressee may alter the address to which communications are to be sent
by giving notice of such change of address in conformity  with the provisions of
this Paragraph 12 for the giving of notice.

      13.  Lender's  Duties  Limited.  The rights  granted to the Lender in this
Agreement are solely for its protection and nothing herein contained  imposes on
the Lender any duties with  respect to any  property  of the  Creditor or of the
Debtor heretofore or hereafter received by the Lender. The Lender has no duty to
preserve  rights  against  prior  parties on any  instrument  or  chattel  paper
received  from the Debtor as  collateral  security for the Superior  Debt or any
portion thereof.

      14.  Effect on Creditor and Debtor.  This  Agreement is being entered into
solely for the benefit of the Lender,  its  successors  and assigns,  and is not
intended  to give any  rights,  benefits or  privileges  to the  Creditor or the
Debtor.

      15. Authority. The Creditor and the Debtor represent and warrant that they
have the legal power,  capacity and  authority to enter into this  Agreement and
that the person  signing for the Creditor and Debtor is authorized  and directed
to do so.

      16. Entire Agreement,  Amendment. This Agreement constitutes and expresses
the entire understanding  between the parties hereto with respect to the subject
matter  hereof,  and  supersedes  all prior and  contemporaneous  agreements and
understandings,  inducements or conditions,  whether express or implied, oral or
written.  Neither  this  Agreement  nor any portion or  provision  hereof may be
amended  orally or in any manner other than by an agreement in writing signed by
the Lender, Creditor and Debtor.

      17.  Additional  Documentation.  Each of the Creditor and the Debtor shall
execute and deliver to the Lender such further  instruments  and shall take such
further  action as the Lender may at any time or times request in order to carry
out the provisions and intent of this Agreement.

                                       6
<PAGE>

      18.  Successors and Assigns.  This Agreement shall inure to the benefit of
the Lender,  its successors and assigns,  and shall be binding upon the Creditor
and Debtor and their respective heirs, personal representatives,  successors and
assigns.

      19. Defects Waived. This Agreement is effective notwithstanding any defect
in the validity or enforceability  of any instrument or document  evidencing the
Superior Debt.

      20.  Governing  Law. The validity,  construction  and  enforcement of this
Agreement shall be governed by the internal laws of the State of Connecticut.

      21. Severability.  The provisions of this Agreement are independent of and
separable from each other. If any provision  hereof shall for any reason be held
invalid or  unenforceable,  it is the intent of the parties that such invalidity
or unenforceability shall not affect the validity or enforceability of any other
provision hereof,  and that this Agreement shall be construed as if such invalid
or unenforceable provision had never been contained herein.

      22. Amendment and Restatement. This Agreement amends, restates, supercedes
and replaces in its entirety the Existing Debt Subordination Agreement.

                        THE NEXT PAGE IS A SIGNATURE PAGE

                                       7
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed, sealed and delivered, as of the 5th day of May, 2006.

WITNESSES:

/s/ Jennifer Hite                       /s/ Kevin J. Thomas
------------------------------------    ----------------------------------------
                                        Kevin J. Thomas

WITTNESS/ATTEST:                        BANK OF AMERICA, N.A.

                                        By: Michael J. Radcliffe
------------------------------------        ------------------------------------

                                            Its Senior Vice President

                                        ARGAN, INC.

/s/ Rainer Bosselmann                   By  /s/ Arthur Trudel
------------------------------------       -------------------------------------
                                            Name: Arthur Trudel
                                                  ------------------------------
                                            Title: CFO
                                                   -----------------------------

                                        SOUTHERN MARYLAND CABLE, INC.

/s/ Rainer Bosselmann                   By  /s/ Arthur Trudel
------------------------------------       -------------------------------------
                                            Name: Arthur Trudel
                                                  ------------------------------
                                            Title: CFO
                                                   -----------------------------

                                        VITARICH LABORATORIES, INC.

/s/ Rainer Bosselmann                   By  /s/ Arthur Trudel
------------------------------------       -------------------------------------
                                            Name: Arthur Trudel
                                                  ------------------------------
                                            Title: CFO
                                                   -----------------------------

     [Signature Page to Second Amended and Restated Subordination Agreement]
                                     Page 1EXHIBIT 10.4

                                 2006 TERM NOTE

$1,500,000                                                   Rockville, Maryland

                                                                  _____ __, 2006

      FOR VALUE RECEIVED, ARGAN, INC., a corporation organized under the laws of
the State of Delaware  ("Argan"),  SOUTHERN MARYLAND CABLE,  INC., a corporation
organized  under  the  laws  of the  State  of  Delaware  ("SMC")  and  VITARICH
LABORATORIES,  INC.,  a  corporation  organized  under  the laws of the State of
Delaware ("Vitarich"), jointly and severally (each of Argan, SMC and Vitarich, a
"Borrower"; Argan, SMC and Vitarich, collectively, the "Borrowers");  promise to
pay to the order of BANK OF AMERICA,  N.A., a national banking association,  its
successors  and assigns (the  "Lender"),  the  principal sum of ONE MILLION FIVE
HUNDRED THOUSAND DOLLARS  ($1,500,000) (the "Principal Sum"), or so much thereof
as has been or may be advanced to or for the account of the  Borrowers  pursuant
to the terms and conditions of the Financing Agreement (as hereinafter defined),
together with interest  thereon at the rate or rates  hereinafter  provided,  in
accordance with the following:

      1.    Interest.

      Commencing as of the date hereof and continuing until repayment in full of
all sums due  hereunder,  the unpaid  Principal  Sum shall bear  interest at the
LIBOR Rate,  plus three  hundred  twenty five (325) basis points per annum.  For
purposes hereof,  the "LIBOR Rate" shall mean a daily  fluctuating rate equal to
the one (1) month rate of interest (rounded upwards, if necessary to the nearest
1/100 of 1%) appearing on Telerate Page 3750 (or any successor  page) as the one
(1)  month  London  interbank  offered  rate for  deposits  in U.S.  Dollars  at
approximately  11:00 A.M. (London,  time), on the second preceding business day,
as  adjusted   from  time  to  time  in  the  Lender's   sole   discretion   for
then-applicable  reserve  requirements,  deposits insurance assessment rates and
other regulatory  costs. If for any reason such rate is not available,  the term
"LIBOR Rate" shall mean the  fluctuating  rate of interest  equal to the one (1)
month rate of interest  (rounded  upwards,  if necessary to the nearest 1/100 of
1%) appearing on Reuters Screen LIBO Page as the one (1) month London  interbank
offered rate for deposits in U.S.  Dollars at  approximately  11:00 a.m. (London
Time) on the second  preceding  business  day, as adjusted from time to time for
then-applicable  reserve  requirements,  deposit insurance  assessment rates and
other regulatory costs; provided, however, if more than one rate is specified on
Reuters Screen LIBO page, the  applicable  rate shall be the arithmetic  mean of
all such rates.

      The rate of interest charged under this Note shall change  immediately and
contemporaneously  with any change in the LIBOR Rate. All interest payable under
the terms of this Note shall be  calculated  on the basis of a 360-day  year and
the actual number of days elapsed.

      2.    Payments and Maturity.

      The unpaid  Principal Sum,  together with interest  thereon at the rate or
rates provided above, shall be payable as follows:

<PAGE>

            (a) The unpaid Principal Sum together with interest shall be due and
payable in thirty-five (35) monthly installments of principal each in the amount
of $41,667.67 plus accrued and unpaid  interest,  commencing _____ __, 2006, and
on the last day of each month thereafter to maturity;

            (b) Unless  sooner paid,  the unpaid  Principal  Sum,  together with
interest accrued and unpaid thereon,  shall be due and payable in full on ______
__, 2009.

      Borrower hereby authorizes Lender to automatically  deduct from Borrower's
account numbered 003939628068 the amount of each payment of principal (including
without  limitation the principal payment due on the final maturity date) and/or
interest on the dates such payments  become due. If the funds in the account are
insufficient  to cover any  payment,  Lender  shall not be  obligated to advance
funds to cover the payment.  At any time and for any reason,  Borrower or Lender
may voluntarily terminate automatic payments as provided in this paragraph.

      3.    Default Interest.

      Upon the occurrence of an Event of Default (as hereinafter  defined),  the
unpaid Principal Sum shall bear interest  thereafter at the LIBOR Rate plus four
percent (4.00%) (the "Post-Default  Rate") per annum until such Event of Default
is cured.

      4.    Late Charges.

      If the  Borrowers  shall fail to make any payment  under the terms of this
Note  within ten (10) days after the date such  payment  is due,  the  Borrowers
shall pay to the Lender on demand a late charge equal to five percent (5.00%) of
such payment.

      5. Application and Place of Payments.

      All  payments,  made on account of this Note shall be applied first to the
payment of accrued and unpaid interest then due hereunder, and the remainder, if
any,  shall be applied to the unpaid  Principal  Sum. All payments on account of
this Note  shall be paid in lawful  money of the  United  States of  America  in
immediately  available funds during regular  business hours of the Lender at its
principal office in Rockville, Maryland or at such other times and places as the
Lender  may at any  time and  from  time to time  designate  in  writing  to the
Borrowers.

      6.    Prepayment.

      The  Borrowers  may prepay the Principal Sum in whole or in part upon five
(5) days prior written notice to the Lender without premium or penalty.

      7.    Financing Agreement and Other Financing Documents.

      This Note is the "2006 Term Note"  described  in the Amended and  Restated
Financing  and  Security  Agreement  of even  date  herewith  by and  among  the
Borrowers and the Lender (as amended, modified, restated, substituted,  extended
and renewed at any time and from time to time, the "Financing  Agreement").  The
indebtedness  evidenced by this Note is included  within the meaning of the term
"Obligations"  as  defined  in the  Financing  Agreement.  The  term  "Financing
Documents" as used in this Note shall mean collectively this Note, the Revolving
Credit Note,  the Term Note, the Financing  Agreement and any other  instrument,
agreement,  or document  previously,  simultaneously,  or hereafter executed and
delivered by any Borrower  and/or any other  Person,  singularly or jointly with
any other Person, evidencing,  securing, guaranteeing, or in connection with the
Principal Sum, this Note, the Term Note and/or the Financing Agreement.

                                       2
<PAGE>

      8.    Security.

      This Note is secured as provided in the Financing Agreement.

      9.    Events of Default.

      The occurrence of any one or more of the following events shall constitute
an event of default (individually,  an "Event of Default" and collectively,  the
"Events of Default") under the terms of this Note:

            (a) The failure of any Borrower to pay to the Lender within five (5)
days of when due any and all amounts payable by any Borrower to the Lender under
the terms of this Note; or

            (b) The occurrence of an Event of Default (as defined therein) under
the terms and conditions of any of the other Financing Documents.

      10.   Remedies.

      Upon the  occurrence of an Event of Default,  at the option of the Lender,
all amounts  payable by the Borrowers to the Lender under the terms of this Note
shall immediately  become due and payable by the Borrowers to the Lender without
notice to the  Borrowers or any other  Person,  and the Lender shall have all of
the rights,  powers, and remedies available under the terms of this Note, any of
the other  Financing  Documents and all  applicable  laws. The Borrowers and all
endorsers,  guarantors,  and  other  parties  who  may now or in the  future  be
primarily or secondarily liable for the payment of the indebtedness evidenced by
this Note hereby  severally  waive  presentment,  protest and demand,  notice of
protest,  notice of demand  and of  dishonor  and  non-payment  of this Note and
expressly  agree that this Note or any payment  hereunder  may be extended  from
time to time  without  in any way  affecting  the  liability  of the  Borrowers,
guarantors and endorsers.

      11.   Confessed Judgment.

      Upon  the  occurrence  of  an  Event  of  Default,  each  Borrower  hereby
authorizes  any attorney  designated  by the Lender or any clerk of any court of
record to appear for the  Borrowers in any court of record and confess  judgment
without  prior  hearing  against the Borrowers in favor of the Lender for and in
the amount of the unpaid Principal Sum, all interest accrued and unpaid thereon,
all other amounts  payable by any Borrower to the Lender under the terms of this
Note or any of the other Financing Documents, costs of suit, and attorneys' fees
of fifteen  percent  (15%) of the unpaid  Principal  Sum and  interest  then due
hereunder.  By its  acceptance of this Note, the Lender agrees that in the event
the Lender  exercises at any time its right to confess judgment under this Note,
the Lender shall use its best  efforts to obtain  legal  counsel who will charge
the Lender for its services on an hourly basis,  at its  customary  hourly rates
and only for the time and reasonable  expenses  incurred.  In no event shall the
Lender  enforce  the legal fees  portion of a  confessed  judgment  award for an
amount in excess of the fees and  expenses  actually  charged  to the Lender for
services  rendered by its counsel in connection with such confession of judgment
and/or  the  collection  of sums owed to the  Lender.  In the  event the  Lender
receives,  through execution upon a confessed  judgment,  payments on account of
attorneys' fees in excess of such actual  attorneys' fees and expenses  incurred
by the  Lender,  then,  after  full  repayment  and  satisfaction  of all of the
obligations under and in connection with this Note, the Financing  Agreement and
all of the other Financing Documents, the Lender shall refund such excess amount
to the Borrowers.  Each Borrower  hereby  releases,  to the extent  permitted by
applicable  law,  all  errors  and all  rights  of  exemption,  appeal,  stay of
execution,  inquisition, and other rights to which any Borrower may otherwise be
entitled  under  the laws of the  United  States of  America  or of any state or
possession  of the United  States of America now in force or which may hereafter
be enacted. The authority and power to appear for and enter judgment against the
Borrowers  shall not be  exhausted  by one or more  exercises  thereof or by any
imperfect exercise thereof and shall not be extinguished by any judgment entered
pursuant  thereto.  Such  authority may be exercised on one or more occasions or
from time to time in the same or different  jurisdictions as often as the Lender
shall  deem  necessary  or  desirable,  for all of which  this  Note  shall be a
sufficient warrant.

                                       3
<PAGE>

      12.   Expenses.

      Each  Borrower  promises  to pay to the Lender on demand by the Lender all
costs and expenses  incurred by the Lender in connection with the collection and
enforcement of this Note, including,  without limitation,  reasonable attorneys'
fees and expenses and all court costs.

      13.   Notices.

      Any  notice,  request,  or demand to or upon the  Borrowers  or the Lender
shall be deemed to have been properly given or made when delivered in accordance
with Section 8.1 of the Financing Agreement.

      14.   Miscellaneous.

      Each right,  power,  and remedy of the Lender as provided for in this Note
or any of the other Financing Documents,  or now or hereafter existing under any
applicable  law or otherwise  shall be cumulative and concurrent and shall be in
addition to every other right, power, or remedy provided for in this Note or any
of the  other  Financing  Documents  or  now or  hereafter  existing  under  any
applicable  law,  and the exercise or beginning of the exercise by the Lender of
any one or more of such  rights,  powers,  or remedies  shall not  preclude  the
simultaneous  or later  exercise by the Lender of any or all such other  rights,
powers, or remedies. No failure or delay by the Lender to insist upon the strict
performance of any term,  condition,  covenant, or agreement of this Note or any
of the other  Financing  Documents,  or to exercise any right,  power, or remedy
consequent  upon a breach thereof,  shall  constitute a waiver of any such term,
condition,  covenant, or agreement or of any such breach, or preclude the Lender
from  exercising any such right,  power,  or remedy at a later time or times. By
accepting  payment  after the due date of any amount  payable under the terms of
this Note,  the Lender  shall not be deemed to waive the right either to require
prompt  payment when due of all other  amounts  payable  under the terms of this
Note or to declare an Event of Default  for the  failure to effect  such  prompt
payment of any such  other  amount.  No course of  dealing  or conduct  shall be
effective to amend,  modify,  waive,  release,  or change any provisions of this
Note.

                                       4
<PAGE>

      Until such time as the Lender is not committed to extend further credit to
the  Borrowers  and all  Obligations  of the  Borrowers  to the Lender have been
indefeasibly  paid in full in cash,  and subject to and not in limitation of the
provisions set forth in the next following  paragraph  below,  no Borrower shall
have any right of subrogation (whether contractual, arising under the bankruptcy
code or  otherwise),  reimbursement  or  contribution  from any  Borrower or any
guarantor,  nor any right of recourse to its  security  for any of the debts and
obligations  of any  Borrower  which are the  subject  of this  Note.  Except as
otherwise  expressly permitted by the Financing  Agreement,  any and all present
and future  debts and  obligations  of any  Borrower to any other  Borrower  are
hereby  subordinated  to the full  payment  and  performance  of all present and
future debts and  obligations  to the Lender  under this Note and the  Financing
Agreement  and  the  Financing  Documents,  provided,  however,  notwithstanding
anything set forth in this Note to the  contrary,  prior to the  occurrence of a
payment Default, the Borrowers shall be permitted to make payments on account of
any of such  present  and  future  debts  and  obligations  from time to time in
accordance with the terms thereof.

      Each Borrower  further agrees that, if any payment made by any Borrower or
any other person is applied to this Note and is at any time annulled, set aside,
rescinded,  invalidated,  declared to be fraudulent or preferential or otherwise
required to be refunded or repaid,  or the  proceeds of any  property  hereafter
securing this Note is required to be returned by the Lender to any Borrower, its
estate,  trustee,  receiver or any other party,  including,  without limitation,
such  Borrower,  under any bankruptcy  law, state or federal law,  common law or
equitable  cause,  then,  to the  extent  of such  payment  or  repayment,  such
Borrower's  liability  hereunder  (and  any  lien,  security  interest  or other
collateral  securing  such  liability)  shall be and  remain  in full  force and
effect,  as fully as if such payment had never been made,  or, if prior  thereto
any such lien,  security  interest or other collateral  hereafter  securing such
Borrower's  liability hereunder shall have been released or terminated by virtue
of such cancellation or surrender,  this Note (and such lien,  security interest
or other  collateral)  shall be  reinstated  in full force and effect,  and such
prior cancellation or surrender shall not diminish,  release,  discharge, impair
or otherwise affect the obligations of such Borrower in respect of the amount of
such payment (or any lien,  security interest or other collateral  securing such
obligation).

      The JOINT AND SEVERAL  obligations  of each Borrower under this Note shall
be absolute,  irrevocable and  unconditional  and shall remain in full force and
effect  until the  outstanding  principal  of and  interest on this Note and all
other Obligations or amounts due hereunder and under the Financing Agreement and
the Financing  Documents  shall have been  indefeasibly  paid in full in cash in
accordance with the terms thereof and this Note shall have been canceled.

      The Borrowers each shall be jointly and severally liable on the payment of
the Obligations as and when due and payable in accordance with the provisions of
this Note, the Financing Agreement and the other Financing  Documents.  The term
"Borrowers"  when  used  in  this  Note  shall  include  all of  the  Borrowers,
individually  and jointly,  and the Lender may (without  notice to or consent of
any  or all of  the  Borrowers  and  with  or  without  consideration)  release,
compromise,  settle with,  proceed  against any or all of the Borrowers  without
affecting,  impairing,  lessening  or  releasing  the  obligations  of the other
Borrower hereunder.

                                       5
<PAGE>

      15.   Partial Invalidity.

      In the event any provision of this Note (or any part of any  provision) is
held  by  a  court  of  competent  jurisdiction  to  be  invalid,   illegal,  or
unenforceable in any respect, such invalidity,  illegality,  or unenforceability
shall  not  affect  any  other  provision  (or  remaining  part of the  affected
provision)  of this Note;  but this Note shall be construed as if such  invalid,
illegal, or unenforceable  provision (or part thereof) had not been contained in
this Note, but only to the extent it is invalid, illegal, or unenforceable.

      16.   Captions.

      The captions  herein set forth are for  convenience  only and shall not be
deemed to define, limit, or describe the scope or intent of this Note.

      17.   Applicable Law.

      Each Borrower  acknowledges and agrees that this Note shall be governed by
the laws of the State of Maryland,  even though for the  convenience  and at the
request of the Borrowers, this Note may be executed elsewhere.

      18.   Consent to Jurisdiction.

      Each  Borrower  irrevocably  submits to the  jurisdiction  of any state or
federal  court  sitting  in the  State of  Maryland  over any suit,  action,  or
proceeding arising out of or relating to this Note or any of the other Financing
Documents.  Each Borrower irrevocably waives, to the fullest extent permitted by
law, any objection  that any Borrower may now or hereafter have to the laying of
venue of any such suit,  action, or proceeding brought in any such court and any
claim that any such suit,  action,  or proceeding  brought in any such court has
been brought in an inconvenient  forum. Final judgment in any such suit, action,
or proceeding brought in any such court shall be conclusive and binding upon the
Borrowers  and may be enforced in any court in which any  Borrower is subject to
jurisdiction  by a suit upon such judgment,  provided that service of process is
effected upon the  Borrowers as provided in this Note or as otherwise  permitted
by applicable law.

      19.   Service of Process.

      Each Borrower hereby  irrevocably  designates and appoints CT Corporation,
Corporation  Trust Center,  1209 Orange Street,  Wilmington,  Delaware 19801, as
each Borrower's authorized agent to receive on each Borrower's behalf service of
any and all  process  that may be  served  in any suit,  action,  or  proceeding
instituted in connection with this Note in any state or federal court sitting in
the State of Maryland.  If such agent shall cease so to act, the Borrowers shall
irrevocably  designate and appoint without delay another such agent in the State
of Maryland  satisfactory to the Lender and shall promptly deliver to the Lender
evidence  in writing of such  agent's  acceptance  of such  appointment  and its
agreement that such appointment shall be irrevocable.

                                       6
<PAGE>

      Each Borrower hereby consents to process being served in any suit, action,
or proceeding  instituted  in connection  with this Note by (a) the mailing of a
copy thereof by certified mail, postage prepaid,  return receipt  requested,  to
each  Borrower  and (b)  serving  a copy  thereof  upon  the  agent  hereinabove
designated and appointed by each Borrower as each  Borrower's  agent for service
of process.  Each Borrower  irrevocably agrees that such service shall be deemed
in every  respect  effective  service of process upon the  Borrowers in any such
suit,  action or proceeding,  and shall, to the fullest extent permitted by law,
be taken and held to be valid personal  service upon the  Borrowers.  Nothing in
this Section shall affect the right of the Lender to serve process in any manner
otherwise  permitted by law or limit the right of the Lender  otherwise to bring
proceedings  against  the  Borrowers  in  the  courts  of  any  jurisdiction  or
jurisdictions.

      20.   WAIVER OF TRIAL BY JURY.

      EACH  BORROWER AND THE LENDER  HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR
PROCEEDING  TO WHICH ANY BORROWER AND THE LENDER MAY BE PARTIES,  ARISING OUT OF
OR IN ANY WAY PERTAINING TO (A) THIS NOTE OR (B) THE FINANCING DOCUMENTS.  IT IS
AGREED AND UNDERSTOOD THAT THIS WAIVER  CONSTITUTES A WAIVER OF TRIAL BY JURY OF
ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS,  INCLUDING CLAIMS
AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE.

      THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY EACH BORROWER,
AND EACH BORROWER HEREBY REPRESENTS THAT NO  REPRESENTATIONS  OF FACT OR OPINION
HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN
ANY WAY MODIFY OR NULLIFY ITS EFFECT.  EACH BORROWER FURTHER  REPRESENTS THAT IT
HAS BEEN  REPRESENTED  IN THE  SIGNING  OF THIS  NOTE AND IN THE  MAKING OF THIS
WAIVER BY  INDEPENDENT  LEGAL  COUNSEL,  SELECTED OF ITS OWN FREE WILL, AND THAT
EACH HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

                    [SIGNATURES APPEAR ON THE FOLLOWING PAGE]

                                       7
<PAGE>

      IN WITNESS  WHEREOF,  the  Borrowers  have caused this Note to be executed
under seal by their duly authorized officers as of the date first written above.

WITNESS/ATTEST:                         ARGAN, INC.

                                        By:                     (Seal)
-------------------------                  ---------------------
                                           Name:
                                           Title:

WITNESS:                                SOUTHERN MARYLAND CABLE, INC.

                                        By:                     (Seal)
-------------------------                  ---------------------
                                           Name:
                                           Title:

WITNESS/ATTEST:                         VITARICH LABORATORIES, INC.

                                        By:                     (Seal)
-------------------------                  ---------------------
                                           Name:
                                           Title:

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