Document:

AMENDED
      AND RESTATED

    2006
      TERM NOTE

     

    
      	
              $1,374,996.99

            	
              Rockville,
                Maryland

              December
                11, 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”),
      VITARICH LABORATORIES, INC., a corporation organized under the laws of the
      State
      of Delaware (“Vitarich”),
      GEMMA
      POWER, INC., a corporation organized under the laws of the State of Connecticut
      (“GP”),
      GEMMA
      POWER SYSTEMS CALIFORNIA, INC., a corporation organized under the laws of the
      State of California (“GPSC”),
      GEMMA
      POWER SYSTEMS, LLC, a limited liability company organized under the laws of
      the
      state of Connecticut (“GPS”),
      and
      GEMMA POWER HARTFORD, LLC, a limited liability company organized under the
      laws
      of the State of Connecticut (“GPH”),
      jointly and severally (each of Argan, SMC, Vitarich, GP, GPSC, GPS, and GPH,
      a
“Borrower”
and
      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 THREE HUNDRED SEVENTY-FOUR THOUSAND NINE HUNDRED NINETY-SIX DOLLARS
      and
      NINETY-NINE CENTS ($1,374,996.99)
      (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:

     

    (a) The
      unpaid Principal Sum together with interest shall be due and payable in
      thirty-two (32) monthly installments of principal each in the amount of
      Forty-One Thousand Six Hundred Sixty-Seven Dollars and Sixty-Seven Cents
      ($41,667.67) plus accrued and unpaid interest, commencing December 31, 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 August 31, 2009. 

     

    Borrower
      hereby authorizes Lender to automatically deduct from Borrower’s account
      numbered 003933340656 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.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    7. Financing
      Agreement and Other Financing Documents.

     

    This
      Note
      is the “2006
      Term
      Note”
      described in the Second 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 amends and restates in its entirety that
      certain 2006 Term Note dated May 5, 2006 (the “Prior
      Note”)
      in the
      maximum principal amount of One Million Five Hundred Thousand Dollars
      ($1,500,000) from Argan, SMC and Vitarich in favor of the Lender. It is
      expressly agreed that the indebtedness evidenced by the Prior Note has not
      been
      extinguished or discharged hereby. Each of the Borrowers and the Lender agree
      that the execution of this Note is not intended and shall not cause or result
      in
      a novation with respect to the Prior Note. 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
      Acquisition 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 Revolving Note, the Acquisition Term Note and/or
      the Financing Agreement.

     

    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.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    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.

     

    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.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    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.

     

    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).

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    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.

     

    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.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    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.

     

    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

        
          

        

      

      
         

      

    

     

    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. 
	 
 	 
 	 
 
	/s/
              Arthur Trudel	By:  	/s/ Rainer
              Bosselmann    (SEAL)
	
              
                

              

            	
              

              Name:
                Rainer Bosselmann

              Title:
                Chairman and CEO

            

    

     

    
      	 	 	 
	WITNESS: 	SOUTHERN
              MARYLAND
              CABLE, INC. 
	 
 	 
 	 
 
	/s/
              Rainer Bosselmann	By:  	/s/ Arthur
              Trudel     (Seal)
	
              
                

              

            	
              

              
                Name:
                  Arthur Trudel

                Title:
                  CFO

              

            

    

    

    
      	 	 	 
	WITNESS/ATTEST: 	VITARICH
              LABORATORIES, INC.
	 
 	 
 	 
 
	/s/
              Rainer Bosselmann	By:  	/s/ Arthur
              Trudel    (Seal)
	
              

            	
              

              Name:
                Arthur Trudel

              Title:
                CFO

            

      	 	 	 
	WITNESS/ATTEST: 	GEMMA
              POWER,
              INC.
	 
 	 
 	 
 
	/s/
              Rainer Bosselmann	By:  	/s/ Arthur
              Trudel    (Seal)
	
              

            	
              

              Name:
                Arthur Trudel

              Title:
                CFO

            

    

    

    
      	 	 	 
	WITNESS/ATTEST: 	
              GEMMA
                POWER SYSTEMS 

              CALIFORNIA,
                INC.

            
	 
 	 
 	 
 
	/s/
              Rainer Bosselmann	By:  	/s/ Arthur
              Trudel    (Seal)
	
              

            	
              

              Name:
                Arthur Trudel

              Title:
                CFO

            

    

     

    
      Signature
        Page to Amended And Restated 2006 Term Note

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	WITNESS/ATTEST: 	
              GEMMA
                POWER SYSTEMS, LLC

            
	 
 	 
 	 
 
	/s/
              Joel
              M. Canino	By:  	/s/ William
              F. Griffin, Jr.    (Seal)
	
              

            	
              

              
                Name:
                  William F. Griffin, Jr.

                Title:
                  Manager

              

            

    

     

    
      	 	 	 
	WITNESS/ATTEST: 	
              GEMMA
                POWER HARTFORD, LLC

            
	 
 	 
 	 
 
	/s/
              Joel
              M. Canino	By:  	/s/ William
              F. Griffin, Jr.    (Seal)
	
              

            	
              

              
                Name:
                  William F. Griffin, Jr.

                Title:
                  Manager

              

            

    

     

    
      Signature
        Page to Amended And Restated 2006 Term Note

    

     

    
      
         

      

      
        2ACQUISITION
      TERM NOTE

      
        	$8,000,000 	
                Rockville,
                  Maryland

              
	 	
                 December
                  11,
                  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”),
        VITARICH LABORATORIES, INC., a corporation organized under the laws of the
        State
        of Delaware (“Vitarich”),
        GEMMA
        POWER, INC., a corporation organized under the laws of the State of Connecticut
        (“GP”),
        GEMMA
        POWER SYSTEMS CALIFORNIA, INC., a corporation organized under the laws of
        the
        State of California (“GPSC”),
        GEMMA
        POWER SYSTEMS, LLC, a limited liability company organized under the laws
        of the
        state of Connecticut (“GPS”),
        and
        GEMMA POWER HARTFORD, LLC, a limited liability company organized under the
        laws
        of the State of Connecticut (“GPH”),
        jointly and severally (each of Argan, SMC, Vitarich, GP, GPSC, GPS, and GPH,
        a
“Borrower”
and
        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 EIGHT MILLION DOLLARS
        ($8,000,000) (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.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      2. Payments
        and Maturity.

       

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

       

      (a) The
        unpaid
        Principal Sum together with interest shall be due and payable in
        forty-seven
        (47)
        monthly
        installments of principal each in the amount of One
        Hundred Sixty-Sixty Thousand Six Hundred Sixty-Six Dollars and Sixty-Seven
        Cents
        ($166,666.67)
        plus
        accrued and unpaid interest, commencing January 31,
        2007,
        and on the last day of each month thereafter and
        one
        (1) monthly payment at maturity of One Hundred Sixty-Sixty Thousand Six Hundred
        Sixty-Six Dollars and Fifty-One Cents ($166,666.51) plus accrued and unpaid
        interest;
        

       

      (b) Unless
        sooner paid, the unpaid Principal Sum, together with interest accrued and
        unpaid
        thereon, shall be due and payable in full on January 31, 2011. 

       

      Borrower
        hereby authorizes Lender to automatically deduct from Borrower’s account
        numbered 004467062810 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.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      7. Financing
        Agreement and Other Financing Documents.

       

      This
        Note
        is the “Acquisition
        Term
        Note”
        described in the Second 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
        2006 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 Revolving Credit Note, the 2006 Term Note, and/or the Financing
        Agreement.

       

      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

          
            

          

        

        
          
          

        

      

       

      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

          
            

          

        

        
          
          

        

      

       

      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.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      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.

       

      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

          
            

          

        

        
          
          

        

      

       

      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

          
            

          

        

        
          
          

        

      

       

      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. 
	 	 	 
	 	 	 
	/s/
                  Arthur Trudel	 	By:
/s/
                  Rainer
                  Bosselmann              
                  (SEAL)
	
                  
 	 	
                  
                    

                    Name:
                      Rainer Bosselmann

                    Title:
                      Chairman and CEO

                  

                
	 	 	 
	 	 	 
	WITNESS:	 	SOUTHERN MARYLAND
                  CABLE,
                  INC.
	 	 	 
	 	 	 
	/s/
                  Rainer Bosselmann 	 	By:
 /s/
                  Arthur
                  Trudel                
                  (Seal)
	
                  
  	 	
                  
                    
Name:
                    Arthur Trudel
                    Title:
                      CFO

                  

                
	 	 	 
	 	 	 
	WITNESS/ATTEST: 	 	VITARICH
                  LABORATORIES, INC.
	 	 	 
	 	 	 
	/s/
                  Rainer Bosselmann 	 	By:
 /s/
                  Arthur
                  Trudel                 
                  (Seal)
	
                  
 	 	
                  
                    
Name:
                    Arthur Trudel
                    Title:
                      CFO

                  

                
	 	 	 
	 	 	 
	WITNESS/ATTEST:	 	GEMMA POWER, INC.
	 	 	 
	 	 	 
	/s/
                  Rainer Bosselmann 	 	By:
/s/
                  Arthur
                  Trudel                
                  (Seal)
	
                  
 	 	
                  
                    

                    Name:
                      Arthur Trudel

                    Title:
                      CFO

                  

                
	 	 	 
	 	 	 
	WITNESS/ATTEST:	 	
                  GEMMA POWER SYSTEMS

                  CALIFORNIA, INC.

                
	 	 	 
	 	 	 
	/s/
                  Rainer Bosselmann 	 	By:
 /s/
                  Arthur
                  Trudel                
                  (Seal)
	
                  
 	 	
                  
                    

                  

                  
                    Name:
                      Arthur Trudel

                    Title:
                      CFO

                  

                

        

      

       

      Signature
        Page to Acquisition Term Note

       

      
        
          
          

          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        
          	WITNESS/ATTEST: 	 	GEMMA POWER SYSTEMS,
                  LLC
	 	 	 
	 	 	 
	/s/
                  Joel
                  M. Canino	 	By:
/s/
                  William F. Griffin,
                  Jr.                  
                  (Seal)
	
                  
 	 	
                  
                    
Name:
                    William F. Griffin, Jr.
                    Title:
                      Manager

                  

                
	 	 	 
	 	 	 
	WITNESS/ATTEST:	 	GEMMA POWER HARTFORD,
                  LLC
	 	 	 
	 	 	 
	/s/
                  Joel
                  M. Canino	 	By:
/s/
                  William F. Griffin,
                  Jr.                  
                  (Seal)
	
                  
  	 	
                  
                    
Name:
                    William F. Griffin, Jr.
Title:
                    Manager

                

        

      

       

      Signature
        Page to Acquisition Term Note

       

      
        
          
          

          
          

        

        
          2

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