Document:

PLEDGE,
        ASSIGNMENT AND SECURITY AGREEMENT

       

      THIS
        PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT (this “Agreement”)
        is
        made this 11th
        day of
        December, 2006, by ARGAN, INC., a corporation organized under the laws of
        the
        State of Delaware (the “Pledgor”)
        for
        the benefit of BANK OF AMERICA, N.A., a national banking association, its
        successors and assigns (the “Lender”).

       

      RECITALS

       

      A. The
        Pledgor, Southern
        Maryland Cable, Inc., a corporation organized under the laws of the State
        of
        Delaware, Vitarich Laboratories, Inc., a corporation organized under the
        laws of
        the State of Delaware, Gemma Power Systems, LLC, a Connecticut limited liability
        company, Gemma Power, Inc., a corporation organized under the laws of the
        State
        of Connecticut, Gemma Power Systems California, Inc., a corporation organized
        under the laws of the State of California, and Gemma Power Hartford, LLC,
        a
        limited liability company organized under the laws of the State of
        Connecticut (collectively,
        the “Borrowers”)
        and
        the
        Lender have entered into a Second Amended and Restated Financing and Security
        Agreement dated the same date as this Agreement (as amended, modified, restated,
        substituted, extended and renewed at any time and from time to time, the
        “Financing
        Agreement”).

       

      B. It
        is a
        condition precedent, among others, to the Lender’s agreement to enter into the
        Financing Agreement and to make loans and other financial accommodations
        thereunder that the Pledgor enter into this Agreement in order to secure
        the
        full and prompt performance of all of the “Obligations”
defined
        in the Financing Agreement and under all of the other Financing
        Documents.

       

      C. All
        defined terms used in this Agreement and not defined in this Agreement shall
        have the meaning given to such terms in the Financing Agreement.

       

      AGREEMENTS

       

      NOW,
        THEREFORE, in consideration of the Lender’s entering into the Financing
        Agreement and for other good and valuable consideration, the receipt of which
        is
        hereby acknowledged, the Pledgor hereby agrees as follows:

       

      ARTICLE
        I

      SECURITY

       

      
        	 	
                Section
                  1.1

              	
                The
                  Collateral.

              

      

       

      As
        security for the prompt and full performance of the Obligations, and as security
        for the prompt and full performance of all obligations of the Pledgor under
        this
        Agreement, and all of the Obligations of the Pledgor and/or any other Person
        under the Financing Agreement and all of the other Financing Documents, all
        of
        the foregoing, whether now in existence or hereafter created and whether
        joint,
        several, or both, primary, secondary, direct, contingent or otherwise, the
        Pledgor hereby pledges, assigns and grants to the Lender a security interest
        in
        the following property of the Pledgor (collectively, the “Collateral”),
        whether now existing or hereafter created or arising:

       

      (a) all
        rights, title and interest in and to the membership interests and any other
        equity ownership interests (the “LLC
        Interest”)
        of
        Gemma Power Systems, LLC, a limited liability company organized under the
        laws
        of the State of Connecticut (the “Company”),
        as
        its the sole member, under the operating agreement, as the same may have
        been or
        may be amended, supplemented, restated, or otherwise modified at any time
        and
        from time to time (the “Operating
        Agreement”);

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b) all
        rights to receive any and all cash and non-cash distributions (regardless
        of how
        such distributions are classified and including any and all
        distributions-in-kind and liquidating distributions), profits, losses, income,
        revenue, returns of capital, repayments of any loans made by Pledgor to the
        Company (including interest and fees with respect to such loans), and any
        and
        all development, management and similar fees payable by the Company to Pledgor
        of any kind or nature whatsoever, together with any and all other rights
        and
        property interests including, but not limited to, accounts, contract rights,
        instruments and general intangibles arising out of, under or relating to
        the
        Operating Agreement;

       

      (c) all
        other
        or additional equity or debt interests, other securities or property (including
        cash) paid or distributed in respect of the LLC Interest by way of any spin-off,
        merger, consolidation, dissolution, combination, reclassification or exchange
        of
        equity interests, asset sales, or similar rearrangement or
        reorganization;

       

      (d) all
        other
        or additional equity or debt interests, other securities or property (including
        cash) which may be paid or distributed in respect of the LLC Interest by
        reason
        of any consolidation, merger, exchange of equity of debt interests, conveyance
        of assets, liquidation or similar corporate reorganization; and

       

      (e) all
        proceeds and products (both cash and non-cash) of the foregoing, whether
        now or
        hereafter arising under any of the foregoing.

       

      
        	 	
                Section
                  1.2

              	
                Rights
                  of the Lender in the
                  Collateral.

              

      

       

      The
        Pledgor agrees that with respect to the Collateral the Lender shall have
        all the
        rights and remedies of a secured party under the Uniform Commercial Code,
        as
        well as those provided by law and/or in this Agreement. Notwithstanding the
        fact
        that the proceeds of the Collateral constitute part of the Collateral, the
        Pledgor may not dispose of the Collateral or any part thereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Section
                  1.3

              	
                Registration
                  of Pledge.

              

      

       

      If
        any of
        the Collateral is or shall become evidenced or represented by an uncertificated
        security and if
        and to
        the extent requested by the Lender, the Pledgor agrees, by Notice of Pledge,
        substantially in the form attached to this Agreement as Exhibit B, to (i)
        notify the Company immediately of the pledge, assignment and security agreement
        under this Agreement and (ii) issue the Initial Transaction Statement,
        substantially in the form attached to this Agreement as Exhibit C. The
        Pledgor hereby authorizes and directs the Company to (i) register the Pledgor’s
        pledge to the Lender of the Collateral on the Company’s books (ii) make,
        following written notice to do so by the Lender, direct payment to the Lender
        of
        any amounts due or to become due to the Pledgor with respect to the Collateral
        and (iii) comply with all instructions originated by the Lender without further
        consent by the Pledgor. The Pledgor acknowledges that the Lender has control
        over the Collateral within the meaning of Section 8-106 of the Uniform
        Commercial Code. 

       

      
        	 	
                Section
                  1.4

              	
                Rights
                  of the Pledgor in the
                  Collateral.

              

      

       

      Until
        an
        Event of Default (as that term is defined in ARTICLE
        IV
        (Default
        and Rights and Remedies)) occurs, the Pledgor shall be entitled (a) to vote
        all
        ownership or equity interests, (b) to give consents, waivers and ratification
        to
        any and all actions of the Company requiring member approval, and (c) to
        receive
        all cash and non-cash distributions which may be paid on the Collateral and
        which are not otherwise prohibited by the Financing Documents. Any cash
        distribution payable in respect of the Collateral which represents, in whole
        or
        in part, a return of capital or a violation of this Agreement or the other
        Financing Documents shall be received by the Pledgor in trust for the Lender,
        shall be paid immediately to the Lender and shall be retained by the Lender
        as
        part of the Collateral.

       

      ARTICLE
        II 

      REPRESENTATIONS
        AND WARRANTIES

       

      To
        induce
        the Lender to advance sums to the Pledgor under the Financing Agreement,
        the
        Pledgor represents and warrants to the Lender and shall be deemed to represent
        and warrant at the time of each request for, and the time of each advance
        under,
        the credit facilities described in the Financing Agreement, as
        follows:

       

      
        	 	
                Section
                  2.1

              	
                Percentage
                  Ownership.

              

      

       

      The
        LLC
        Interest represents one hundred percent (100%) of the membership interests
        of
        the Company and thereafter the Collateral will continue to represent the
        same
        percentage of the membership interest of the Company, unless otherwise permitted
        under the Financing Agreement.

       

      
        	 	
                Section
                  2.2

              	
                Power
                  and Authority.

              

      

       

      The
        Pledgor has full corporate power and authority to execute and deliver this
        Agreement and the other Financing Documents to which it is a party, to assign
        and pledge the Collateral and perform all other obligations required hereunder
        with respect to the Collateral and interests, and to incur and perform its
        obligations whether under this Agreement, the other Financing Documents or
        otherwise, all of which have been duly authorized by all proper and necessary
        corporate action. No consent or approval of the shareholders or any creditors
        of
        the Pledgor, the Company, or members of the Company, and no consent, approval,
        filing or registration with or notice to any Governmental Authority on the
        part
        of the Pledgor, is required as a condition to the execution, delivery, validity
        or enforceability of this Agreement or the other Financing Documents or the
        performance of the Obligations, including, without limitation, the right
        of the
        Lender to dispose of the Collateral following an Event of Default. The Pledgor
        has full right, power and authority and has all voting rights in any
        organizational matters as may be represented by the Collateral.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Section
                  2.3

              	
                Binding
                  Agreements.

              

      

       

      This
        Agreement and the other Financing Documents executed and delivered by the
        Pledgor have been properly executed and delivered and constitute the valid
        and
        legally binding obligations of the Pledgor and are fully enforceable against
        the
        Pledgor in accordance with their respective terms, subject to bankruptcy,
        insolvency, reorganization, moratorium and other laws of general application
        affecting the rights and remedies of creditors and secured parties, and general
        principles of equity regardless of whether applied in a proceeding in equity
        or
        at law.

       

      
        	 	
                Section
                  2.4

              	
                No
                  Conflicts.

              

      

       

      Neither
        the execution, delivery and performance of the terms of this Agreement or
        of any
        of the other Financing Documents executed and delivered by the Pledgor nor
        the
        consummation of the transactions contemplated by this Agreement will conflict
        with, violate or be prevented by (a) the Pledgor’s charter or bylaws, (b) any
        existing mortgage, indenture, contract or agreement binding on the Pledgor
        or
        affecting its property, or (c) any Laws.

       

      
        	 	
                Section
                  2.5

              	
                Compliance
                  with Laws.

              

      

       

      The
        Pledgor is not in violation of any applicable Laws (including, without
        limitation, any Laws relating to employment practices, to environmental,
        occupational and health standards and controls) or order, writ, injunction,
        decree or demand of any court, arbitrator, or any Governmental Authority
        affecting the Pledgor or any of its properties, the violation of which could
        adversely affect the authority of the Pledgor to enter into, or the ability
        of
        the Pledgor to perform under, this Agreement or any of the other Financing
        Documents executed by the Pledgor.

       

      
        	 	
                Section
                  2.6

              	
                Title
                  to Properties.

              

      

       

      The
        Pledgor has good and marketable title to the Collateral. The Pledgor has
        legal,
        enforceable and uncontested rights to use freely such property and assets.
        The
        Pledgor is the sole owner of all of the Collateral, free and clear of all
        security interests, pledges, voting trusts, agreements, Liens, claims and
        encumbrances whatsoever, other than the security interest, assignment and
        lien
        granted under this Agreement.

       

      
        	 	
                Section
                  2.7

              	
                Perfection
                  and Priority of Collateral.

              

      

       

      The
        Lender has, or upon execution, delivery and recording of this Agreement and
        the
        Security Documents will have, and will continue to have as security for the
        Obligations and the other obligations secured by this Agreement, a valid
        and
        perfected Lien on and security interest in all of the Collateral, free of
        all
        other Liens, claims and rights of third parties whatsoever.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        III 

      COVENANTS

       

      Until
        payment in full and the performance of all of the Obligations and all of
        the
        obligations of the Pledgor hereunder or secured hereby, the Pledgor covenants
        and agrees with the Lender as follows:

       

      
        	 	
                Section
                  3.1

              	
                Corporate
                  Existence.

              

      

       

      The
        Pledgor shall maintain its corporate existence in good standing in the
        jurisdiction in which it is incorporated and in each other jurisdiction where
        it
        is required to register or qualify to do business if the failure to do so
        in
        such other jurisdiction might have a material adverse effect on the ability
        of
        the Pledgor to perform its obligations under this Agreement, on the conduct
        of
        the Pledgor’s operations, on the Pledgor’s financial condition, or on the value
        of, or the ability of the Lender to realize upon, the Collateral.

       

      
        	 	
                Section
                  3.2

              	
                Delivery
                  of Certificated Collateral.

              

      

       

      If
        any of
        the Collateral is or shall become evidenced or represented by a certificated
        security, the Pledgor shall deliver immediately to the Lender (a) the
        certificates representing the LLC Interests, (b) immediately upon its receipt
        of
        any additional (or fewer) LLC Interests in the Company, the certificates
        representing such additional LLC Interests, (c) all instruments, items of
        payment and other Collateral received by the Pledgor, and (d) executed
        irrevocable, undated and blank membership powers, substantially
        in the form attached to this Agreement as Exhibit
        A,
        for all
        of the assigned LLC Interests. All Collateral at any time received or held
        by
        the Pledgor shall be received and held by the Pledgor in trust for the benefit
        of the Lender, and shall be kept separate and apart from, and not commingled
        with, the Pledgor’s other assets.

       

      
        	 	
                Section
                  3.3

              	
                Defense
                  of Title and Further
                  Assurances.

              

      

       

      The
        Pledgor will do or cause to be done all things necessary to preserve and
        to keep
        in full force and effect its interests in the Collateral, and shall defend,
        at
        its sole expense, the title to the Collateral and any part thereof. The Pledgor
        hereby authorizes the filing of any financing statement or continuation
        statement required under the Uniform Commercial Code. Further, the Pledgor
        shall
        promptly, upon request by the Lender, execute, acknowledge and deliver any
        financing statement, endorsement, renewal, affidavit, deed, assignment,
        continuation statement, security agreement, certificate or other document
        as the
        Lender may require in order to perfect, preserve, maintain, protect, continue,
        realize upon, and/or extend the lien and security interest of the Lender
        under
        this Agreement and the priority thereof. The Pledgor shall pay to the Lender
        upon demand all taxes, costs and expenses (including but not limited to
        reasonable attorney’s fees) incurred by the Lender in connection with the
        preparation, execution, recording and filing of any such document or instrument
        mentioned aforesaid.

       

      
        	 	
                Section
                  3.4

              	
                Compliance
                  with Laws.

              

      

       

      The
        Pledgor shall comply with all applicable Laws and observe the valid requirements
        of Governmental Authorities, the noncompliance with or the nonobservance
        of
        which might have a material adverse effect on the ability of the Pledgor
        to
        perform its obligations under this Agreement or any of the Financing Documents
        to which the Pledgor is a party or on the conduct of the Pledgor’s operations,
        on the Pledgor’s financial condition, or on the value of, or the ability of the
        Lender to realize upon, the Collateral.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Section
                  3.5

              	
                Protection
                  of Collateral.

              

      

       

      The
        Pledgor agrees that the Lender may at any time take such steps as the Lender
        deems reasonably necessary to protect the Lender’s interest in, and to preserve
        the Collateral. The Pledgor agrees to cooperate fully with the Lender’s efforts
        to preserve the Collateral and will take such actions to preserve the Collateral
        as the Lender may in good faith direct. All of the Lender’s expenses of
        preserving the Collateral, including, without limitation, reasonable attorneys’
fees, shall be part of the Enforcement Costs.

       

      
        	 	
                Section
                  3.6

              	
                Certain
                  Notices.

              

      

       

      The
        Pledgor will promptly notify the Lender in writing of any Event of Default
        and
        of any litigation, regulatory proceeding, or other event which materially
        and
        adversely affects the value of the Collateral, the ability of the Pledgor
        or the
        Lender to dispose of the Collateral, or the rights and remedies of the Lender
        in
        relation thereto.

       

      
        	 	
                Section
                  3.7

              	
                Books
                  and Records; Information.

              

      

       

      (a) The
        Pledgor shall maintain proper books of record and account in which full,
        true
        and correct entries are made of all dealings and transactions in relation
        to the
        Collateral and which reflect the Lien of the Lender thereon.

       

      (b) The
        Pledgor agrees that the Lender may from time to time and at its option (i)
        require the Pledgor to, and the Pledgor shall, periodically deliver to the
        Lender records and schedules, which show the status of the Collateral and
        such
        other matters which affect the Collateral; (ii) verify the Collateral and
        inspect the books and records of the Pledgor and make copies thereof or extracts
        therefrom; (iii) notify any prospective buyers or transferees of the Collateral
        of the Lender’s interest in the Collateral; and (iv) disclose to prospective
        buyers or transferees from the Lender any and all information regarding the
        Company, the Collateral and/or the Pledgor.

       

      
        	 	
                Section
                  3.8

              	
                Disposition
                  of Collateral.

              

      

       

      The
        Pledgor will not sell, assign, convey, transfer or otherwise dispose of the
        Collateral or any part thereof.

       

      
        	 	
                Section
                  3.9

              	
                Distributions.

              

      

       

      The
        Pledgor shall receive no dividend or distribution or other benefit with respect
        to the Company, and shall not vote, consent, waive or ratify any action taken,
        which would violate or be inconsistent with any of the terms and provisions
        of
        this Agreement, the Financing Agreement or any of the other Financing Documents
        or which would materially impair the position or interest of the Lender in
        the
        Collateral or dilute the percentage of the ownership interests of the Company
        pledged to the Lender hereunder, except as expressly permitted by the Financing
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Section
                  3.10

              	
                Liens.

              

      

       

      The
        Pledgor will not create, incur, assume or suffer to exist any Lien upon any
        of
        the Collateral, other than Liens in favor of the Lender.

       

      
        	 	
                Section
                  3.11

              	
                Survival.

              

      

       

      All
        representations and warranties contained in or made under or in connection
        with
        this Agreement and the other Financing Documents shall survive the making
        of any
        advance under the Financing Agreement and the incurring of any other Obligations
        and the other obligations secured by this Agreement.

       

      ARTICLE
        IV 

      DEFAULT
        AND RIGHTS AND REMEDIES

       

       

      
        	 	
                Section
                  4.1

              	
                Events
                  of Default.

              

      

       

      The
        occurrence of any one or more of the following events shall constitute an
“Event
        of Default” under the provisions of this Agreement:

       

      
        	 	
                4.1.1

              	
                Default
                  under Financing Agreement.

              

      

       

      An
        Event
        of Default shall occur under the Financing Agreement.

       

      
        	 	
                4.1.2

              	
                Default
                  under this Agreement.

              

      

       

      If
        the
        Pledgor shall fail to duly perform, comply with or observe any of the terms,
        conditions or covenants of this Agreement.

       

      
        	 	
                4.1.3

              	
                Breach
                  of Representations and
                  Warranties.

              

      

       

      Any
        representation or warranty made in this Agreement or in any report, statement,
        schedule, certificate, opinion (including any opinion of counsel for the
        Pledgor), financial statement or other document furnished by the Pledgor
        or its
        agents or representatives in connection with this Agreement, any of the other
        Financing Documents, or the Obligations or the other obligations secured
        by this
        Agreement, shall prove to have been false or misleading when made (or, if
        applicable, when reaffirmed) in any material respect.

       

      
        	 	
                Section
                  4.2

              	
                Remedies.

              

      

       

      Upon
        the
        occurrence of any Default or Event of Default, the Lender may at any time
        thereafter exercise any one or more of the following rights, powers or
        remedies:

       

      
        	 	
                4.2.1

              	
                Uniform
                  Commercial Code.

              

      

       

      The
        Lender shall have all of the rights and remedies of a secured party under
        the
        applicable Uniform Commercial Code and other applicable Laws. 

       

      
        	 	
                4.2.2

              	
                Sale
                  or Other Disposition of
                  Collateral.

              

      

       

      The
        Lender may sell or redeem the Collateral, or any part thereof, in one or
        more
        sales, at public or private sale, conducted by any officer or agent of, or
        auctioneer or attorney for, the Lender, at the Lender’s place of business or
        elsewhere, for cash, upon credit or future delivery, and at such price or
        prices
        as the Lender shall, in its sole discretion, determine, and the Lender may
        be
        the purchaser of any or all of the Collateral so sold. Further, any written
        notice of the sale, disposition or other intended action by the Lender with
        respect to the Collateral which is sent by regular mail, postage prepaid,
        to the
        Pledgor at the address set forth in Section
        5.1
        (Notices), or such other address of the Pledgor which may from time to time
        be
        shown on the Lender’s records, at least ten (10) days prior to such sale,
        disposition or other action, shall constitute commercially reasonable notice
        to
        the Pledgor. The Lender may alternatively or additionally give such notice
        in
        any other commercially reasonable manner. Nothing in this Agreement shall
        require the Lender to give any notice not required by applicable
        Laws.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      If
        any
        consent, approval, or authorization of any Governmental Authority or any
        Person
        having any interest therein, should be necessary to effectuate any sale or
        other
        disposition of the Collateral, the Pledgor agrees to execute all such
        applications and other instruments, and to take all other action, as may
        be
        required in connection with securing any such consent, approval or
        authorization.

       

      The
        Pledgor recognizes that the Lender may be unable to effect a public sale
        of all
        or a part of the Collateral consisting of securities by reason of certain
        prohibitions contained in the Securities Act of 1933, as amended, and other
        applicable federal and state Laws. The Lender may, therefore, in its discretion,
        take such steps as it may deem appropriate to comply with such Laws and may,
        for
        example, at any sale of the Collateral consisting of securities restrict
        the
        prospective bidders or purchasers as to their number, nature of business
        and
        investment intention, including, without limitation, a requirement that the
        Persons making such purchases represent and agree to the satisfaction of
        the
        Lender that they are purchasing such securities for their account, for
        investment, and not with a view to the distribution or resale of any thereof.
        The Pledgor covenants and agrees to do or cause to be done promptly all such
        acts and things as the Lender may request from time to time and as may be
        necessary to offer and/or sell the securities or any part thereof in a manner
        which is valid and binding and in conformance with all applicable
        Laws.

       

      
        	 	
                4.2.3

              	
                Specific
                  Rights With Regard to
                  Collateral.

              

      

       

      In
        addition to all other rights and remedies provided hereunder or as shall
        exist
        at law or in equity from time to time, the Lender may (but shall be under
        no
        obligation to), without notice to the Pledgor, and the Pledgor hereby
        irrevocably appoints the Lender as its attorney-in-fact, with power of
        substitution, in the name of the Lender or in the name of the Pledgor or
        otherwise, for the use and benefit of the Lender, but at the cost and expense
        of
        the Pledgor and without notice to the Pledgor:

       

      (a) compromise,
        extend or renew any of the Collateral or deal with the same as it may deem
        advisable;

       

      (b) make
        exchanges, substitutions or surrenders of all or any part of the
        Collateral;

       

      (c) copy,
        transcribe, or remove from any place of business of the Pledgor all books,
        records, ledger sheets, correspondence, invoices and documents, relating
        to or
        evidencing any of the Collateral or without cost or expense to the Lender,
        make
        such use of the Pledgor’s places of business as may be reasonably necessary to
        administer, control and collect the Collateral;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (d) institute
        and prosecute legal and equitable proceedings to enforce collection of, or
        realize upon, any of the Collateral;

       

      (e) settle,
        renew, extend, compromise, compound, exchange or adjust claims in respect
        of any
        of the Collateral or any legal proceedings brought in respect
        thereof;

       

      (f) endorse
        or sign the name of the Pledgor upon any instruments, securities, powers,
        documents, or other writing relating to or part of the Collateral;
        and

       

      (g) take
        any
        other action necessary or beneficial to realize upon or dispose of the
        Collateral.

       

      
        	 	
                4.2.4

              	
                Application
                  of Proceeds.

              

      

       

      Any
        proceeds of sale or other disposition of the Collateral will be applied by
        the
        Lender to the payment of the Enforcement Costs, and any balance of such proceeds
        will be applied by the Lender to the payment of the balance of the Obligations
        and the other obligations secured by this Agreement in such order and manner
        of
        application as the Lender may from time to time in its sole and absolute
        discretion determine. If the sale or other disposition of the Collateral
        fails
        to fully satisfy the Obligations and the other obligations secured by this
        Agreement, the Pledgor shall remain liable to the Lender for any
        deficiency.

       

      
        	 	
                4.2.5

              	
                Performance
                  by Lender.

              

      

       

      If
        the
        Pledgor shall fail to perform, observe or comply with any of the conditions,
        covenants, terms, stipulations or agreements contained in this Agreement
        or any
        of the other Financing Documents, the Lender without notice to or demand upon
        the Pledgor and without waiving or releasing any of the Obligations or any
        Default or Event of Default, may (but shall be under no obligation to) at
        any
        time thereafter make such payment or perform such act for the account and
        at the
        expense of the Pledgor, and may enter upon the premises of the Pledgor for
        that
        purpose and take all such action thereon as the Lender may consider necessary
        or
        appropriate for such purpose and the Pledgor hereby irrevocably appoints
        the
        Lender as its attorney-in-fact to do so, with power of substitution, in the
        name
        of the Lender or in the name of the Pledgor or otherwise, for the use and
        benefit of the Lender, but at the cost and expense of the Pledgor and without
        notice to the Pledgor. All sums so paid or advanced by the Lender together
        with
        interest thereon from the date of payment, advance or incurring until paid
        in
        full at the Post-Default Rate and all costs and expenses, shall be deemed
        part
        of the Enforcement Costs, shall be paid by the Pledgor to the Lender on demand,
        and shall constitute and become a part of the Obligations.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                4.2.6

              	
                Other
                  Remedies.

              

      

       

      The
        Lender may from time to time proceed to protect or enforce its rights by
        an
        action or actions at law or in equity or by any other appropriate proceeding,
        whether for the specific performance of any of the covenants contained in
        this
        Agreement or in any of the other Financing Documents, or for an injunction
        against the violation of any of the terms of this Agreement or any of the
        other
        Financing Documents, or in aid of the exercise or execution of any right,
        remedy
        or power granted in this Agreement, the Financing Documents, and/or applicable
        Laws.

       

      
        	 	
                Section
                  4.3

              	
                Costs
                  and Expenses.

              

      

       

      The
        Pledgor shall pay on demand all costs and expenses (including reasonable
        attorney’s fees), all of which shall be deemed part of the Obligations, incurred
        by and on behalf of the Lender incident to any collection, servicing, sale,
        disposition or other action taken by the Lender with respect to the Collateral
        or any portion thereof.

       

      
        	 	
                Section
                  4.4

              	
                Receipt
                  Sufficient Discharge to
                  Purchaser.

              

      

       

      Upon
        any
        sale or other disposition of the Collateral or any part thereof, the receipt
        of
        the Lender or other Person making the sale or disposition shall be a sufficient
        discharge to the purchaser for the purchase money, and such purchaser shall
        not
        be obligated to see to the application thereof.

       

      
        	 	
                Section
                  4.5

              	
                Remedies,
                  etc. Cumulative.

              

      

       

      Each
        right, power and remedy of the Lender as provided for in this Agreement or
        in
        any of the other Financing Documents or in any related instrument or agreement
        or now or thereafter existing at law or in equity or by statute or otherwise
        shall be cumulative and concurrent and shall be in addition to every other
        right, power or remedy provided for in this Agreement or in the other Financing
        Documents or in any related document, instrument or agreement or now or
        hereafter existing at law or in equity or by statute or otherwise, 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.

       

      
        	 	
                Section
                  4.6

              	
                No
                  Waiver, etc.

              

      

       

      No
        failure or delay by the Lender to insist upon the strict performance of any
        term, condition, covenant or agreement of this Agreement or of any of the
        other
        Financing Documents or of any related documents, instruments or agreements,
        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 any later time or times. By accepting payment after the due date
        of
        any amount payable under this Agreement or under any of the other Financing
        Documents or under any related document, instrument or agreement, the Lender
        shall not be deemed to waive the right either to require prompt payment when
        due
        of all other amounts payable under this Agreement or under any other of the
        Financing Documents, or to declare a default for failure to effect such prompt
        payment of any such other amount.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        V

      MISCELLANEOUS

       

      
        	 	
                Section
                  5.1

              	
                Notices.

              

      

       

      All
        notices, requests and demands to or upon the parties to this Agreement shall
        be
        in writing and shall be deemed to have been given or made when delivered
        by hand
        on a Business Day, or two (2) days after the date when deposited in the mail,
        postage prepaid by registered or certified mail, return receipt requested,
        or
        when sent by overnight courier, on the Business Day next following the day
        on
        which the notice is delivered to such overnight courier, addressed as
        follows: 

       

      
        
          	
                  Pledgor:

                	
                  Argan,
                    Inc.

                
	
                   

                	One
                  Church Street, Suite 302
	
                   

                	Rockville,
                  Maryland 20850
	
                   

                	Attention:
                  Arthur F. Trudel
	
                   

                	Chief
                  Financial Officer
	 	 
	
                  with
                    a copy to:

                	
                  Robinson
                    & Cole LLP

                
	
                   

                	280
                  Trumbull Street
	
                   

                	Hartford,
                  Connecticut 06103
	
                   

                	Attention:
                  Eileen P. Baldwin, Esq.
	 	 
	
                  Lender:

                	
                  Bank
                    of America, N.A.

                
	
                   

                	1101
                  Wootton Parkway, 4th Floor
	
                   

                	Rockville,
                  Maryland 20852
	
                   

                	Attention:
                  Michael J. Radcliffe
	
                   

                	Senior
                  Vice President
	 	 
	
                  with
                    a copy to:

                	
                  Troutman
                    Sanders LLP

                
	
                   

                	1660
                  International Drive, Suite 600
	
                   

                	McLean,
                  Virginia 22102
	
                   

                	Attention:
                  Richard M. Pollak, Esq.

        

      

       

      By
        written notice, each party to this Agreement may change the address to which
        notice is given to that party, provided that such changed notice shall include
        a
        street address to which notices may be delivered by overnight courier in
        the
        ordinary course on any Business Day.

       

      
        	 	
                Section
                  5.2

              	
                Amendments;
                  Waivers.

              

      

       

      This
        Agreement and the other Financing Documents may not be amended, modified,
        or
        changed in any respect except by an agreement in writing signed by the Lender
        and the Pledgor. No waiver of any provision of this Agreement or of any of
        the
        other Financing Documents, nor consent to any departure by the Pledgor
        therefrom, shall in any event be effective unless the same shall be in writing.
        No course of dealing between the Pledgor and the Lender and no act or failure
        to
        act from time to time on the part of the Lender shall constitute a waiver,
        amendment or modification of any provision of this Agreement or any of the
        other
        Financing Documents or any right or remedy under this Agreement, under any
        of
        the other Financing Documents or under applicable Laws.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Section
                  5.3

              	
                Cumulative
                  Remedies.

              

      

       

      The
        rights, powers and remedies provided in this Agreement and in the other
        Financing Documents are cumulative, may be exercised concurrently or separately,
        may be exercised from time to time and in such order as the Lender shall
        determine and are in addition to, and not exclusive of, rights, powers and
        remedies provided by existing or future applicable Laws. In order to entitle
        the
        Lender to exercise any remedy reserved to it in this Agreement, it shall
        not be
        necessary to give any notice, other than such notice as may be expressly
        required in this Agreement. Without limiting the generality of the foregoing,
        the Lender may:

       

      (a) proceed
        against the Pledgor with or without proceeding against any other Person who
        may
        be liable for all or any part of the Obligations;

       

      (b) proceed
        against the Pledgor with or without proceeding under any of the other Financing
        Documents or against any Collateral or other collateral and security for
        all or
        any part of the Obligations;

       

      (c) without
        notice, release or compromise with any guarantor or other Person liable for
        all
        or any part of the Obligations under the Financing Documents or otherwise;
        and

       

      (d) without
        reducing or impairing the obligations of the Pledgor and without notice thereof:
        (i) fail to perfect the Lien in any or all Collateral or to release any or
        all
        the Collateral or to accept substitute collateral, (ii) waive any provision
        of
        this Agreement or the other Financing Documents, (iii) exercise or fail to
        exercise rights of set-off or other rights, or (iv) accept partial payments
        or
        extend from time to time the maturity of all or any part of the
        Obligations.

       

      
        	 	
                Section
                  5.4

              	
                Severability.

              

      

       

      In
        case
        one or more provisions, or part thereof, contained in this Agreement or in
        the
        other Financing Documents shall be invalid, illegal or unenforceable in any
        respect under any Law, then without need for any further agreement, notice
        or
        action:

       

      (a) the
        validity, legality and enforceability of the remaining provisions shall remain
        effective and binding on the parties thereto and shall not be affected or
        impaired thereby;

       

      (b) the
        obligation to be fulfilled shall be reduced to the limit of such
        validity;

       

      (c) if
        such
        provision or part thereof pertains to repayment of the Obligations, then,
        at the
        sole and absolute discretion of the Lender, all of the Obligations of the
        Pledgor to the Lender shall become immediately due and payable; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (d) if
        affected provision or part thereof does not pertain to repayment of the
        Obligations, but operates or would prospectively operate to invalidate this
        Agreement in whole or in material part, then such provision or part thereof
        only
        shall be void, and the remainder of this Agreement shall remain operative
        and in
        full force and effect.

       

      
        	 	
                Section
                  5.5

              	
                Successors
                  and Assigns.

              

      

       

      This
        Agreement and all other Financing Documents shall be binding upon and inure
        to
        the benefit of the Pledgor and the Lender and their respective heirs, personal
        representatives, successors and assigns, except that the Pledgor shall not
        have
        the right to assign its rights hereunder or any interest herein without the
        prior written consent of the Lender.

       

      
        	 	
                Section
                  5.6

              	
                Applicable
                  Law; Jurisdiction.

              

      

       

      
        	 	
                5.6.1

              	
                Applicable
                  Law.

              

      

       

      This
        Agreement, shall be governed by the Laws of the State, as if each of the
        Financing Documents and this Agreement had been executed, delivered,
        administered and performed solely within the State.

       

      
        	 	
                5.6.2

              	
                Submission
                  to Jurisdiction.

              

      

       

      The
        Pledgor irrevocably submits to the jurisdiction of any state or federal court
        sitting in the State over any suit, action or proceeding arising out of or
        relating to this Agreement or any of the other Financing Documents. The Pledgor
        irrevocably waives, to the fullest extent permitted by law, any objection
        that
        it may now or hereafter have to the laying of the 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 Pledgor and may be enforced
        in
        any court in which the Pledgor is subject to jurisdiction, by a suit upon
        such
        judgment, provided that service of process is effected upon the Pledgor in
        one
        of the manners specified in this Section or as otherwise permitted by applicable
        Laws.

       

      
        	 	
                5.6.3

              	
                Appointment
                  of Agent for Service of
                  Process.

              

      

       

      The
        Pledgor hereby irrevocably designates and appoints CT Corporation System,
        Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801
        as the
        Pledgor’s authorized agent to receive on the Pledgor’s behalf service of any and
        all process that may be served in any suit, action or proceeding of the nature
        referred to in this Section in any state or federal court sitting in the
        State.
        If such agent shall cease so to act, the Pledgor shall irrevocably designate
        and
        appoint without delay another such agent in the State satisfactory to the
        Lender
        and shall promptly deliver to the Lender evidence in writing of such other
        agent’s acceptance of such appointment and its agreement that such appointment
        shall be irrevocable.

       

      
        	 	
                5.6.4

              	
                Service
                  of Process.

              

      

       

      The
        Pledgor hereby consents to process being served in any suit, action or
        proceeding of the nature referred to in this Section by (a) the mailing of
        a
        copy thereof by registered or certified mail, postage prepaid, return receipt
        requested, to the Pledgor at the Pledgor’s address designated in or pursuant to
Section
        5.1 (Notices),
        and (b) serving a copy thereof upon the agent, if any, designated and appointed
        by the Pledgor as the Pledgor’s agent for service of process by or pursuant to
        this Section. The Pledgor irrevocably agrees that such service (y) shall
        be
        deemed in every respect effective service of process upon the Pledgor in
        any
        such suit, action or proceeding, and (z) shall, to the fullest extent permitted
        by law, be taken and held to be valid personal service upon the Pledgor.
        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 Pledgor in the courts of any jurisdiction or
        jurisdictions.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Section
                  5.7

              	
                Headings.

              

      

       

      The
        headings in this Agreement are included herein for convenience only, shall
        not
        constitute a part of this Agreement for any other purpose, and shall not
        be
        deemed to affect the meaning or construction of any of the provisions
        hereof.

       

      
        	 	
                Section
                  5.8

              	
                Entire
                  Agreement.

              

      

       

      This
        Agreement is intended by the Lender and the Pledgor to be a complete, exclusive
        and final expression of the agreements contained herein. Neither the Lender
        nor
        the Pledgor shall hereafter have any rights under any prior agreements but
        shall
        look solely to this Agreement for definition and determination of all of
        their
        respective rights, liabilities and responsibilities under this
        Agreement.

       

      
        	 	
                Section
                  5.9

              	
                Waiver
                  of Trial by Jury.

              

      

       

      THE
        BORROWER AND THE LENDER HEREBY JOINTLY AND SEVERALLY WAIVE TRIAL BY JURY
        IN ANY
        ACTION OR PROCEEDING TO WHICH THE BORROWER AND THE LENDER MAY BE PARTIES,
        ARISING OUT OF OR IN ANY WAY PERTAINING TO (A) THIS AGREEMENT, (B) ANY OF
        THE
        FINANCING DOCUMENTS, OR (C) THE COLLATERAL. 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
        AGREEMENT.

       

      This
        waiver is knowingly, willingly and voluntarily made by the Pledgor and the
        Lender, and the Pledgor and the Lender hereby represent 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. The Pledgor
        and the
        Lender further represent that they have been represented in the signing of
        this
        Agreement and in the making of this waiver by independent legal counsel,
        selected of their own free will, and that they have had the opportunity to
        discuss this waiver with counsel.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Section
                  5.10

              	
                Liability
                  of the Lender.

              

      

       

      The
        Pledgor hereby agrees that the Lender shall not be chargeable for any
        negligence, mistake, act or omission of any accountant, examiner, agency
        or
        attorney employed by the Lender in making examinations, investigations or
        collections, the Lender’s failure to preserve or protect any rights of the
        Pledgor under the Collateral or the Lender’s failure to perfect, maintain,
        protect or realize upon any lien or security interest or any other interest
        in
        the Collateral or other security for the Obligations. By inspecting the
        Collateral or any other properties of the Pledgor or by accepting or approving
        anything required to be observed, performed or fulfilled by the Pledgor or
        to be
        given to the Lender pursuant to this Agreement or any of the other Financing
        Documents, the Lender shall not be deemed to have warranted or represented
        the
        condition, sufficiency, legality, effectiveness or legal effect of the same,
        and
        such acceptance or approval shall not constitute any warranty or representation
        with respect thereto by the Lender.

       

      [SIGNATURE
        APPEARS ON THE FOLLOWING PAGE]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the Pledgor has caused this Pledge, Assignment and Security
        Agreement to be executed, sealed and delivered, as of the day and year first
        written above.

       

      
        	 	 	 
	WITNESS:	
                ARGAN,
                  INC.

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

                

              	
                
                  

                

                Name:
                  Rainer Bosselmann

                Title:
                  Chairman and CEO

              

      

      
         

        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        A

       

      LLC
        POWER

       

      FOR
        VALUE
        RECEIVED, the undersigned, ARGAN, INC., a Delaware corporation (“Pledgor”)
        does
        hereby sell, assign and transfer to __________________________________* all
        of
        its Equity Interests (as hereinafter defined) represented by Certificate
        No(s).
        _______* in Gemma Power Systems, LLC, a Connecticut limited liability company
        (“Issuer”),
        standing in the name of Pledgor on the books of said Issuer. Pledgor does
        hereby
        irrevocably constitute and appoint ________________________________*, as
        attorney, to transfer the Equity Interest in said Issuer with full power
        of
        substitution in the premises. The term “Equity
        Interest”
means
        any security, share, unit, partnership interest, membership interest, ownership
        interest, equity interest, option, warrant, participation, “equity security” (as
        such term is defined in Rule 3(a)11-1 of the General Rules and Regulations
        of the Securities Exchange Act of 1934, as amended, or any similar statute
        then
        in effect, promulgated by the Securities and Exchange Commission and any
        successor thereto) or analogous interest (regardless of how designated) of
        or in
        a corporation, partnership, limited partnership, limited liability company,
        limited liability partnership, business trust or other entity, of whatever
        nature, type, series or class, whether voting or nonvoting, certificated
        or
        uncertificated, common or preferred, and all rights and privileges incident
        thereto.

       

      
        	 	 	 
	
                Dated:
                   ________________* 

              	
                PLEDGOR:

              
	 	 
	 	
                ARGAN,
                  INC.

              
	 
 	 
 	 
 
	
              	By:  	 
	 	
                

                Name: 

                Title: 

              

      

       

      *To
        Remain Blank - Not Completed at Closing. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        B

       

      NOTICE
        OF PLEDGE

       

      Pledge
        by
        Argan, Inc.     (the
        “Pledgor”)

       

      To: Gemma
        Power Systems, LLC  (the
        “Company”)

       

      Notice
        is
        hereby given that, pursuant to a Pledge, Assignment and Security Agreement
        (a
        copy of which is attached hereto), dated December __, 2006, (the “Assignment
        Agreement”)
        from
        the Pledgor to Bank of America, N.A. (the “Lender”),
        the
        Pledgor has pledged, assigned and granted to the Lender a continuing security
        interest in, all of its right, title and interest, whether now existing or
        hereafter arising our acquired, in, to, and under the following (the
“Collateral”):

       

      (a) All
        rights, title and interest in and to the membership interests and any other
        equity ownership interests (the “LLC
        Interest”)
        of the
        Company, as its the [sole]
        member,
        under the operating agreement, as the same may have been or may be amended,
        supplemented, restated, or otherwise modified at any time and from time to
        time
        (the “Operating
        Agreement”);

       

      (b) all
        rights to receive any and all cash and non-cash distributions (regardless
        of how
        such distributions are classified and including any and all
        distributions-in-kind and liquidating distributions), profits, losses, income,
        revenue, returns of capital, repayments of any loans made by Pledgor to the
        Company (including interest and fees with respect to such loans), and any
        and
        all development, management and similar fees payable by the Company to Pledgor
        of any kind or nature whatsoever, together with any and all other rights
        and
        property interests including, but not limited to, accounts, contract rights,
        instruments and general intangibles arising out of, under or relating to
        the
        Operating Agreement;

       

      (c) all
        other
        or additional equity or debt interests, other securities or property (including
        cash) paid or distributed in respect of the Company by way of any spin-off,
        merger, consolidation, dissolution, combination, reclassification or exchange
        of
        equity interests, asset sales, or similar rearrangement or reorganization;
        and

       

      (d) all
        proceeds and products (both cash and non-cash) of the foregoing, whether
        now or
        hereafter arising under any of the foregoing..

       

      Pursuant
        to the Assignment Agreement, the Company is hereby authorized and directed
        to:

       

      (i) register
        on the Company’s books the Pledgor’s pledge to the Lender of the Pledgor’s
        interests in the Company;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (ii) make
        direct payment to the Lender of any amounts due or to become due to the Pledgor
        under the Operating Agreement, if so notified by the Lender; and 

       

      (iii) comply
        with all instructions originated by the Lender without further consent by
        the
        Pledgor.

       

      The
        Pledgor hereby requests the Company to indicate the Company’s acceptance of this
        Notice of Pledge and consent to and confirm its terms and provisions by signing
        a copy hereof where indicated below and returning the same to the Lender
        along
        with an Initial Transaction Statement in the form attached hereto.

       

      Dated
        as
        of ____________, 200_

       

      
        	 	 	 
	 	
                ARGAN,
                  INC.

              
	 
 	 
 	 
 
	
              	By:  	/s/
                Rainer
                Bosselmann           
                (SEAL)
	 	
                
Name:
                Rainer Bosselmann
                Title:
                  Chairman and CEO

              

      

      
         

        
          	 	 	 
	 	
                  
                    GEMMA
                      POWER SYSTEMS, LLC

                  

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

                
	 	
                  

                  Name:
                    William F. Griffin, Jr.

                  Title:
                    Manager

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        C

       

      INITIAL
        TRANSACTION STATEMENT

       

      (Pledge
        by Argan, Inc, the “Pledgor”)

       

      To: 

       

         Attention: 

       

      Re:  Member
        Interests in Gemma Power Systems, LLC, (the “Company”)

       

      1. Registration
        of Pledge.
        This is
        to confirm registration by the Company of the pledge to the Lender of the
        entire
        right, title and interest in and to the Company (the “Interest”)
        owned
        of record by the Pledgor, the holder of one hundred percent (100%) of the
        ownership interests in the Company.

       

      Such
        pledge was registered on _________, _____.

       

      The
        address of the registered owner of the Interest is:

       

      The
        registered owner’s Taxpayer I.D. No. is ___________________.

       

      2. Liens,
        Adverse Claims and Restrictions.
        The
        Interest is not subject to any liens or restrictions of the Company or adverse
        claims.

       

      (a) The
        Interest is subject to all of the terms of the operating agreement of the
        Company and of applicable laws.

       

      (b) The
        Interest may not be transferred without compliance with the provisions of
        the
        operating agreement of the Company and compliance with applicable federal
        and
        state securities laws.

       

      (c) At
        the
        time of registration of the pledge described above, the Interest was not
        subject
        to any liens or restrictions of the Company (except as set forth above or
        in the
        operating agreement), or any adverse claims as to which the Company has a
        duty
        pursuant to applicable state law.

       

      This
        Initial Transaction Statement is a record of the rights of the Lender as
        of the
        time of its issuance, and is neither a negotiable instrument nor a
        security.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Dated
        as
        of ____________, 200_.

       

      
        	 	 	 
	 	
                GEMMA
                  POWER SYSTEMS, LLC

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

                Name:
                  William F. Griffin, Jr.

                Title:
                  ManagerPLEDGE,
      ASSIGNMENT AND SECURITY AGREEMENT

     

    THIS
      PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT (this “Agreement”)
      is
      made this 11th
      day of
      December, 2006, by ARGAN, INC., a corporation organized under the laws of the
      State of Delaware (the “Pledgor”)
      for
      the benefit of BANK OF AMERICA, N.A., a national banking association, its
      successors and assigns (the “Lender”).

     

    RECITALS

     

    A. The
      Pledgor, Southern
      Maryland Cable, Inc., a corporation organized under the laws of the State of
      Delaware, Vitarich Laboratories, Inc., a corporation organized under the laws
      of
      the State of Delaware, Gemma Power Systems, LLC, a Connecticut limited liability
      company, Gemma Power, Inc., a corporation organized under the laws of the State
      of Connecticut, Gemma Power Systems California, Inc., a corporation organized
      under the laws of the State of California, and Gemma Power Hartford, LLC, a
      limited liability company organized under the laws of the State of
      Connecticut (collectively,
      the “Borrowers”)
      and
      the
      Lender have entered into a Second Amended and Restated Financing and Security
      Agreement dated the same date as this Agreement (as amended, modified, restated,
      substituted, extended and renewed at any time and from time to time, the
“Financing
      Agreement”).

     

    B. It
      is a
      condition precedent, among others, to the Lender’s agreement to enter into the
      Financing Agreement and to make loans and other financial accommodations
      thereunder that the Pledgor enter into this Agreement in order to secure the
      full and prompt performance of all of the “Obligations”
defined
      in the Financing Agreement and under all of the other Financing
      Documents.

     

    C. All
      defined terms used in this Agreement and not defined in this Agreement shall
      have the meaning given to such terms in the Financing Agreement.

     

    AGREEMENTS

     

    NOW,
      THEREFORE, in consideration of the Lender’s entering into the Financing
      Agreement and for other good and valuable consideration, the receipt of which
      is
      hereby acknowledged, the Pledgor hereby agrees as follows:

     

    ARTICLE
      I

    SECURITY

     

    
      	 	
              Section
                1.1

            	
              The
                Stock Collateral.

            

    

     

    As
      security for the prompt and full performance of the Obligations, and as security
      for the prompt and full performance of all obligations of the Pledgor under
      this
      Agreement, and all of the Obligations of the Pledgor and/or any other Person
      under the Financing Agreement and all of the other Financing Documents, all
      of
      the foregoing, whether now in existence or hereafter created and whether joint,
      several, or both, primary, secondary, direct, contingent or otherwise, the
      Pledgor hereby pledges, assigns and grants to the Lender a security interest
      in
      the following property of the Pledgor (collectively, the “Stock
      Collateral”),
      whether now existing or hereafter created or arising:

     

    (a) 3,900
      shares of the common stock (the “Stock”)
      of
      Gemma Power, Inc., a corporation incorporated under the laws of the State of
      Connecticut (the “Corporation”);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) all
      stock
      rights, rights to subscribe, rights to distributions, dividends (including,
      but
      not limited to, distributions in kind, cash dividends, stock dividends,
      dividends paid in stock and liquidating dividends) and any other rights and
      property interests including, but not limited to, accounts, contract rights,
      instruments and general intangibles arising out of or relating to the
      Corporation;

     

    (c) all
      other
      or additional (or less) stock or other securities or property (including cash)
      paid or distributed in respect of the Stock by way of stock-split, spin-off,
      split-up, reclassification, combination of shares or similar corporate
      rearrangement;

     

    (d) all
      other
      or additional stock or other securities or property (including cash) which
      may
      be paid or distributed in respect of the Stock by reason of any consolidation,
      merger, exchange of stock, conveyance of assets, liquidation or similar
      corporate reorganization; and

     

    (e) all
      proceeds and products (both cash and non-cash) of the foregoing, whether now
      or
      hereafter arising under any of the foregoing.

     

    
      	 	
              Section
                1.2

            	
              Rights
                of the Lender in the Stock
                Collateral.

            

    

     

    The
      Pledgor agrees that with respect to the Stock Collateral the Lender shall have
      all the rights and remedies of a secured party under the Uniform Commercial
      Code, as well as those provided by law and/or in this Agreement. Notwithstanding
      the fact that the proceeds of the Stock Collateral constitute part of the Stock
      Collateral, the Pledgor may not dispose of the Stock Collateral or any part
      thereof.

     

    
      	 	
              Section
                1.3

            	
              Rights
                of the Pledgor in the Stock
                Collateral.

            

    

     

    Until
      an
      Event of Default (as that term is defined in 0
      (Default
      and Rights and Remedies)) occurs, the Pledgor shall be entitled (a) to vote
      all
      ownership or equity interests, (b) to give consents, waivers and ratification
      to
      any and all actions of the Corporation requiring member approval, and (c) to
      receive all cash and non-cash distributions which may be paid on the Stock
      Collateral and which are not otherwise prohibited by the Financing Documents.
      Any cash dividend or distribution payable in respect of the Stock Collateral
      which represents, in whole or in part, a return of capital or a violation of
      this Agreement or the other Financing Documents shall be received by the Pledgor
      in trust for the Lender, shall be paid immediately to the Lender and shall
      be
      retained by the Lender as part of the Stock Collateral.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II 

    REPRESENTATIONS
      AND WARRANTIES

     

    To
      induce
      the Lender to advance sums to the Pledgor under the Financing Agreement, the
      Pledgor represents and warrants to the Lender and shall be deemed to represent
      and warrant at the time of each request for, and the time of each advance under,
      the credit facilities described in the Financing Agreement, as
      follows:

     

    
      	 	
              Section
                2.1

            	
              Stock
                Interests.

            

    

     

    The
      Stock
      represents one hundred percent (100%) of the equity interests of the Corporation
      and thereafter the Stock Collateral will continue to represent the same
      percentage of the equity interest of the Corporation, unless otherwise permitted
      under the Financing Agreement.

     

    
      	 	
              Section
                2.2

            	
              Power
                and Authority.

            

    

     

    The
      Pledgor has full corporate power and authority to execute and deliver this
      Agreement and the other Financing Documents to which it is a party, to assign
      and pledge the Stock Collateral and perform all other obligations required
      hereunder with respect to the Stock Collateral and interests, and to incur
      and
      perform its obligations whether under this Agreement, the other Financing
      Documents or otherwise, all of which have been duly authorized by all proper
      and
      necessary corporate action. No consent or approval of shareholders or any
      creditors of the Pledgor, the Corporation, or shareholders of the Corporation,
      and no consent, approval, filing or registration with or notice to any
      Governmental Authority on the part of the Pledgor, is required as a condition
      to
      the execution, delivery, validity or enforceability of this Agreement or the
      other Financing Documents or the performance of the Obligations, including,
      without limitation, the right of the Lender to dispose of the Stock Collateral
      following an Event of Default. The Pledgor has full right, power and authority
      and has all voting rights in any corporate matters as may be represented by
      the
      Stock Collateral.

     

    
      	 	
              Section
                2.3

            	
              Binding
                Agreements.

            

    

     

    This
      Agreement and the other Financing Documents executed and delivered by the
      Pledgor have been properly executed and delivered and constitute the valid
      and
      legally binding obligations of the Pledgor and are fully enforceable against
      the
      Pledgor in accordance with their respective terms, subject to bankruptcy,
      insolvency, reorganization, moratorium and other laws of general application
      affecting the rights and remedies of creditors and secured parties, and general
      principles of equity regardless of whether applied in a proceeding in equity
      or
      at law.

     

    
      	 	
              Section
                2.4

            	
              No
                Conflicts.

            

    

     

    Neither
      the execution, delivery and performance of the terms of this Agreement or of
      any
      of the other Financing Documents executed and delivered by the Pledgor nor
      the
      consummation of the transactions contemplated by this Agreement will conflict
      with, violate or be prevented by (a) the Pledgor’s charter or bylaws, (b) any
      existing mortgage, indenture, contract or agreement binding on the Pledgor
      or
      affecting its property, or (c) any Laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Section
                2.5

            	
              Compliance
                with Laws.

            

    

     

    The
      Pledgor is not in violation of any applicable Laws (including, without
      limitation, any Laws relating to employment practices, to environmental,
      occupational and health standards and controls) or order, writ, injunction,
      decree or demand of any court, arbitrator, or any Governmental Authority
      affecting the Pledgor or any of its properties, the violation of which could
      adversely affect the authority of the Pledgor to enter into, or the ability
      of
      the Pledgor to perform under, this Agreement or any of the other Financing
      Documents executed by the Pledgor.

     

    
      	 	
              Section
                2.6

            	
              Title
                to Properties.

            

    

     

    The
      Pledgor has good and marketable title to the Stock Collateral. The Pledgor
      has
      legal, enforceable and uncontested rights to use freely such property and
      assets. The Pledgor is the sole owner of all of the Stock Collateral, free
      and
      clear of all security interests, pledges, voting trusts, agreements, Liens,
      claims and encumbrances whatsoever, other than the security interest, assignment
      and lien granted under this Agreement. The interests assigned as Stock
      Collateral are subject to no outstanding options, voting trusts, shareholders
      agreement, or other requirements with respect to such interests.

     

    
      	 	
              Section
                2.7

            	
              Perfection
                and Priority of Stock
                Collateral.

            

    

     

    The
      Lender has, or upon execution, delivery and recording of this Agreement and
      the
      Security Documents will have, and will continue to have as security for the
      Obligations and the other obligations secured by this Agreement, a valid and
      perfected Lien on and security interest in all Stock Collateral, free of all
      other Liens, claims and rights of third parties whatsoever.

     

    ARTICLE
      III 

    COVENANTS

     

    Until
      payment in full and the performance of all of the Obligations and all of the
      obligations of the Pledgor hereunder or secured hereby, the Pledgor covenants
      and agrees with the Lender as follows:

     

    
      	 	
              Section
                3.1

            	
              Corporate
                Existence.

            

    

     

    The
      Pledgor shall maintain its corporate existence in good standing in the
      jurisdiction in which it is incorporated and in each other jurisdiction where
      it
      is required to register or qualify to do business if the failure to do so in
      such other jurisdiction might have a material adverse effect on the ability
      of
      the Pledgor to perform its obligations under this Agreement, on the conduct
      of
      the Pledgor’s operations, on the Pledgor’s financial condition, or on the value
      of, or the ability of the Lender to realize upon, the Stock
      Collateral.

     

    
      	 	
              Section
                3.2

            	
              Delivery
                of Stock Collateral.

            

    

     

    The
      Pledgor shall deliver immediately to the Lender (a) the certificates
      representing the shares of the Stock, (b) immediately upon its receipt of any
      additional (or fewer) shares of stock in the Corporation, the certificates
      representing such additional shares of stock, (c) all instruments, items of
      payment and other Stock Collateral received by the Pledgor, and (d) executed
      irrevocable, undated and blank stock powers substantially
      in the form attached to this Agreement as Exhibit
      A
      for all
      of the assigned shares of stock. All Stock Collateral at any time received
      or
      held by the Pledgor shall be received and held by the Pledgor in trust for
      the
      benefit of the Lender, and shall be kept separate and apart from, and not
      commingled with, the Pledgor’s other assets.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Section
                3.3

            	
              Defense
                of Title and Further
                Assurances.

            

    

     

    The
      Pledgor will do or cause to be done all things necessary to preserve and to
      keep
      in full force and effect its interests in the Stock Collateral, and shall
      defend, at its sole expense, the title to the Stock Collateral and any part
      thereof. The Pledgor hereby authorizes the filing of any financing statement
      or
      continuation statement required under the Uniform Commercial Code. Further,
      the
      Pledgor shall promptly, upon request by the Lender, execute, acknowledge and
      deliver any financing statement, endorsement, renewal, affidavit, deed,
      assignment, continuation statement, security agreement, certificate or other
      document as the Lender may require in order to perfect, preserve, maintain,
      protect, continue, realize upon, and/or extend the lien and security interest
      of
      the Lender under this Agreement and the priority thereof. The Pledgor shall
      pay
      to the Lender upon demand all taxes, costs and expenses (including but not
      limited to reasonable attorney’s fees) incurred by the Lender in connection with
      the preparation, execution, recording and filing of any such document or
      instrument mentioned aforesaid.

     

    
      	 	
              Section
                3.4

            	
              Compliance
                with Laws.

            

    

     

    The
      Pledgor shall comply with all applicable Laws and observe the valid requirements
      of Governmental Authorities, the noncompliance with or the nonobservance of
      which might have a material adverse effect on the ability of the Pledgor to
      perform its obligations under this Agreement or any of the Financing Documents
      to which the Pledgor is a party or on the conduct of the Pledgor’s operations,
      on the Pledgor’s financial condition, or on the value of, or the ability of the
      Lender to realize upon, the Stock Collateral.

     

    
      	 	
              Section
                3.5

            	
              Protection
                of Stock Collateral.

            

    

     

    The
      Pledgor agrees that the Lender may at any time take such steps as the Lender
      deems reasonably necessary to protect the Lender’s interest in, and to preserve
      the Stock Collateral. The Pledgor agrees to cooperate fully with the Lender’s
      efforts to preserve the Stock Collateral and will take such actions to preserve
      the Stock Collateral as the Lender may in good faith direct. All of the Lender’s
      expenses of preserving the Stock Collateral, including, without limitation,
      reasonable attorneys’ fees, shall be part of the Enforcement Costs.

     

    
      	 	
              Section
                3.6

            	
              Certain
                Notices.

            

    

     

    The
      Pledgor will promptly notify the Lender in writing of any Event of Default
      and
      of any litigation, regulatory proceeding, or other event which materially and
      adversely affects the value of the Stock Collateral, the ability of the Pledgor
      or the Lender to dispose of the Stock Collateral, or the rights and remedies
      of
      the Lender in relation thereto.

     

    
      	 	
              Section
                3.7

            	
              Books
                and Records; Information.

            

    

     

    (a) The
      Pledgor shall maintain proper books of record and account in which full, true
      and correct entries are made of all dealings and transactions in relation to
      the
      Stock Collateral and which reflect the Lien of the Lender thereon.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) The
      Pledgor agrees that the Lender may from time to time and at its option (i)
      require the Pledgor to, and the Pledgor shall, periodically deliver to the
      Lender records and schedules, which show the status of the Stock Collateral
      and
      such other matters which affect the Stock Collateral; (ii) verify the Stock
      Collateral and inspect the books and records of the Pledgor and make copies
      thereof or extracts therefrom; (iii) notify any prospective buyers or
      transferees of the Stock Collateral of the Lender’s interest in the Stock
      Collateral; and (iv) disclose to prospective buyers or transferees from the
      Lender any and all information regarding the Corporation, the Stock Collateral
      and/or the Pledgor.

     

    
      	 	
              Section
                3.8

            	
              Disposition
                of Stock Collateral.

            

    

     

    The
      Pledgor will not sell, assign, convey, transfer or otherwise dispose of the
      Stock Collateral or any part thereof.

     

    
      	 	
              Section
                3.9

            	
              Distributions.

            

    

     

    The
      Pledgor shall receive no dividend or distribution or other benefit with respect
      to the Corporation, and shall not vote, consent, waive or ratify any action
      taken, which would violate or be inconsistent with any of the terms and
      provisions of this Agreement, the Financing Agreement or any of the other
      Financing Documents or which would materially impair the position or interest
      of
      the Lender in the Stock Collateral or dilute the percentage of the ownership
      interests of the Corporation pledged to the Lender hereunder, except as
      expressly permitted by the Financing Agreement.

     

    
      	 	
              Section
                3.10

            	
              Liens.

            

    

     

    The
      Pledgor will not create, incur, assume or suffer to exist any Lien upon any
      of
      the Stock Collateral, other than Liens in favor of the Lender.

     

    
      	 	
              Section
                3.11

            	
              Survival.

            

    

     

    All
      representations and warranties contained in or made under or in connection
      with
      this Agreement and the other Financing Documents shall survive the making of
      any
      advance under the Financing Agreement and the incurring of any other Obligations
      and the other obligations secured by this Agreement.

     

    ARTICLE
      IV 

    DEFAULT
      AND RIGHTS AND REMEDIES

     

    
      	 	
              Section
                4.1

            	
              Events
                of Default.

            

    

     

    The
      occurrence of any one or more of the following events shall constitute an “Event
      of Default” under the provisions of this Agreement:

     

    
      	 	
              4.1.1

            	
              Default
                under Financing Agreement.

            

    

     

    An
      Event
      of Default shall occur under the Financing Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.1.2

            	
              Default
                under this Agreement.

            

    

     

    If
      the
      Pledgor shall fail to duly perform, comply with or observe any of the terms,
      conditions or covenants of this Agreement.

     

    
      	 	
              4.1.3

            	
              Breach
                of Representations and
                Warranties.

            

    

     

    Any
      representation or warranty made in this Agreement or in any report, statement,
      schedule, certificate, opinion (including any opinion of counsel for the
      Pledgor), financial statement or other document furnished by the Pledgor or
      its
      agents or representatives in connection with this Agreement, any of the other
      Financing Documents, or the Obligations or the other obligations secured by
      this
      Agreement, shall prove to have been false or misleading when made (or, if
      applicable, when reaffirmed) in any material respect.

     

    
      	 	
              Section
                4.2

            	
              Remedies.

            

    

     

    Upon
      the
      occurrence of any Default or Event of Default, the Lender may at any time
      thereafter exercise any one or more of the following rights, powers or
      remedies:

     

    
      	 	
              4.2.1

            	
              Uniform
                Commercial Code.

            

    

     

    The
      Lender shall have all of the rights and remedies of a secured party under the
      applicable Uniform Commercial Code and other applicable Laws. Upon demand by
      the
      Lender and if not previously in the possession of the Lender, the Pledgor shall
      assist the Lender in the assembly of the Stock Collateral and assist in making
      it available to the Lender, at a place designated by the Lender. The Lender
      or
      its agents may without notice from time to time enter upon the Pledgor’s
      premises to take possession of the Stock Collateral, to remove it, or otherwise
      to prepare it for sale, or to sell or otherwise dispose of it.

     

    
      	 	
              4.2.2

            	
              Sale
                or Other Disposition of Stock
                Collateral.

            

    

     

    The
      Lender may sell or redeem the Stock Collateral, or any part thereof, in one
      or
      more sales, at public or private sale, conducted by any officer or agent of,
      or
      auctioneer or attorney for, the Lender, at the Lender’s place of business or
      elsewhere, for cash, upon credit or future delivery, and at such price or prices
      as the Lender shall, in its sole discretion, determine, and the Lender may
      be
      the purchaser of any or all of the Stock Collateral so sold. Further, any
      written notice of the sale, disposition or other intended action by the Lender
      with respect to the Stock Collateral which is sent by regular mail, postage
      prepaid, to the Pledgor at the address set forth in 0
      (Notices), or such other address of the Pledgor which may from time to time
      be
      shown on the Lender’s records, at least ten (10) days prior to such sale,
      disposition or other action, shall constitute commercially reasonable notice
      to
      the Pledgor. The Lender may alternatively or additionally give such notice
      in
      any other commercially reasonable manner. Nothing in this Agreement shall
      require the Lender to give any notice not required by applicable
      Laws.

     

    If
      any
      consent, approval, or authorization of any Governmental Authority or any Person
      having any interest therein, should be necessary to effectuate any sale or
      other
      disposition of the Stock Collateral, the Pledgor agrees to execute all such
      applications and other instruments, and to take all other action, as may be
      required in connection with securing any such consent, approval or
      authorization.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Pledgor recognizes that the Lender may be unable to effect a public sale of
      all
      or a part of the Stock Collateral consisting of securities by reason of certain
      prohibitions contained in the Securities Act of 1933, as amended, and other
      applicable federal and state Laws. The Lender may, therefore, in its discretion,
      take such steps as it may deem appropriate to comply with such Laws and may,
      for
      example, at any sale of the Stock Collateral consisting of securities restrict
      the prospective bidders or purchasers as to their number, nature of business
      and
      investment intention, including, without limitation, a requirement that the
      Persons making such purchases represent and agree to the satisfaction of the
      Lender that they are purchasing such securities for their account, for
      investment, and not with a view to the distribution or resale of any thereof.
      The Pledgor covenants and agrees to do or cause to be done promptly all such
      acts and things as the Lender may request from time to time and as may be
      necessary to offer and/or sell the securities or any part thereof in a manner
      which is valid and binding and in conformance with all applicable
      Laws.

     

    
      	 	
              4.2.3

            	
              Specific
                Rights With Regard to Stock
                Collateral.

            

    

     

    In
      addition to all other rights and remedies provided hereunder or as shall exist
      at law or in equity from time to time, the Lender may (but shall be under no
      obligation to), without notice to the Pledgor, and the Pledgor hereby
      irrevocably appoints the Lender as its attorney-in-fact, with power of
      substitution, in the name of the Lender or in the name of the Pledgor or
      otherwise, for the use and benefit of the Lender, but at the cost and expense
      of
      the Pledgor and without notice to the Pledgor:

     

    (a) compromise,
      extend or renew any of the Stock Collateral or deal with the same as it may
      deem
      advisable;

     

    (b) make
      exchanges, substitutions or surrenders of all or any part of the Stock
      Collateral;

     

    (c) copy,
      transcribe, or remove from any place of business of the Pledgor all books,
      records, ledger sheets, correspondence, invoices and documents, relating to
      or
      evidencing any of the Stock Collateral or without cost or expense to the Lender,
      make such use of the Pledgor’s places of business as may be reasonably necessary
      to administer, control and collect the Stock Collateral;

     

    (d) institute
      and prosecute legal and equitable proceedings to enforce collection of, or
      realize upon, any of the Stock Collateral;

     

    (e) settle,
      renew, extend, compromise, compound, exchange or adjust claims in respect of
      any
      of the Stock Collateral or any legal proceedings brought in respect
      thereof;

     

    (f) endorse
      or sign the name of the Pledgor upon any instruments, securities, powers,
      documents, or other writing relating to or part of the Stock Collateral;
      and

     

    (g) take
      any
      other action necessary or beneficial to realize upon or dispose of the Stock
      Collateral.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              4.2.4

            	
              Application
                of Proceeds.

            

    

     

    Any
      proceeds of sale or other disposition of the Stock Collateral will be applied
      by
      the Lender to the payment of the Enforcement Costs, and any balance of such
      proceeds will be applied by the Lender to the payment of the balance of the
      Obligations and the other obligations secured by this Agreement in such order
      and manner of application as the Lender may from time to time in its sole and
      absolute discretion determine. If the sale or other disposition of the Stock
      Collateral fails to fully satisfy the Obligations and the other obligations
      secured by this Agreement, the Pledgor shall remain liable to the Lender for
      any
      deficiency.

     

    
      	 	
              4.2.5

            	
              Performance
                by Lender.

            

    

     

    If
      the
      Pledgor shall fail to perform, observe or comply with any of the conditions,
      covenants, terms, stipulations or agreements contained in this Agreement or
      any
      of the other Financing Documents, the Lender without notice to or demand upon
      the Pledgor and without waiving or releasing any of the Obligations or any
      Default or Event of Default, may (but shall be under no obligation to) at any
      time thereafter make such payment or perform such act for the account and at
      the
      expense of the Pledgor, and may enter upon the premises of the Pledgor for
      that
      purpose and take all such action thereon as the Lender may consider necessary
      or
      appropriate for such purpose and the Pledgor hereby irrevocably appoints the
      Lender as its attorney-in-fact to do so, with power of substitution, in the
      name
      of the Lender or in the name of the Pledgor or otherwise, for the use and
      benefit of the Lender, but at the cost and expense of the Pledgor and without
      notice to the Pledgor. All sums so paid or advanced by the Lender together
      with
      interest thereon from the date of payment, advance or incurring until paid
      in
      full at the Post-Default Rate and all costs and expenses, shall be deemed part
      of the Enforcement Costs, shall be paid by the Pledgor to the Lender on demand,
      and shall constitute and become a part of the Obligations.

     

    
      	 	
              4.2.6

            	
              Other
                Remedies.

            

    

     

    The
      Lender may from time to time proceed to protect or enforce its rights by an
      action or actions at law or in equity or by any other appropriate proceeding,
      whether for the specific performance of any of the covenants contained in this
      Agreement or in any of the other Financing Documents, or for an injunction
      against the violation of any of the terms of this Agreement or any of the other
      Financing Documents, or in aid of the exercise or execution of any right, remedy
      or power granted in this Agreement, the Financing Documents, and/or applicable
      Laws.

     

    
      	 	
              Section
                4.3

            	
              Costs
                and Expenses.

            

    

     

    The
      Pledgor shall pay on demand all costs and expenses (including reasonable
      attorney’s fees), all of which shall be deemed part of the Obligations, incurred
      by and on behalf of the Lender incident to any collection, servicing, sale,
      disposition or other action taken by the Lender with respect to the Stock
      Collateral or any portion thereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Section
                4.4

            	
              Receipt
                Sufficient Discharge to
                Purchaser.

            

    

     

    Upon
      any
      sale or other disposition of the Stock Collateral or any part thereof, the
      receipt of the Lender or other Person making the sale or disposition shall
      be a
      sufficient discharge to the purchaser for the purchase money, and such purchaser
      shall not be obligated to see to the application thereof.

     

    
      	 	
              Section
                4.5

            	
              Remedies,
                etc. Cumulative.

            

    

     

    Each
      right, power and remedy of the Lender as provided for in this Agreement or
      in
      any of the other Financing Documents or in any related instrument or agreement
      or now or thereafter existing at law or in equity or by statute or otherwise
      shall be cumulative and concurrent and shall be in addition to every other
      right, power or remedy provided for in this Agreement or in the other Financing
      Documents or in any related document, instrument or agreement or now or
      hereafter existing at law or in equity or by statute or otherwise, 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.

     

    
      	 	
              Section
                4.6

            	
              No
                Waiver, etc.

            

    

     

    No
      failure or delay by the Lender to insist upon the strict performance of any
      term, condition, covenant or agreement of this Agreement or of any of the other
      Financing Documents or of any related documents, instruments or agreements,
      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 any later time or times. By accepting payment after the due date
      of
      any amount payable under this Agreement or under any of the other Financing
      Documents or under any related document, instrument or agreement, the Lender
      shall not be deemed to waive the right either to require prompt payment when
      due
      of all other amounts payable under this Agreement or under any other of the
      Financing Documents, or to declare a default for failure to effect such prompt
      payment of any such other amount.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V

    MISCELLANEOUS

     

    
      	 	
              Section
                5.1

            	
              Notices.

            

    

     

    All
      notices, requests and demands to or upon the parties to this Agreement shall
      be
      in writing and shall be deemed to have been given or made when delivered by
      hand
      on a Business Day, or two (2) days after the date when deposited in the mail,
      postage prepaid by registered or certified mail, return receipt requested,
      or
      when sent by overnight courier, on the Business Day next following the day
      on
      which the notice is delivered to such overnight courier, addressed as
      follows:

     

    
      	
            	Pledgor:	
              Argan,
                Inc. 
                One
                  Church Street, Suite 302

                Rockville,
                  Maryland 20850

                Attention:
                  Arthur F. Trudel

                Chief
                  Financial Officer

              

            

    

    
    

     

    
      
        
          	
                	
                  with
                    a
                    copy to:

                	
                   Robinson
                    & Cole LLP 
                    280
                      Trumbull Street

                    Hartford,
                      Connecticut 06103

                    Attention:
                      Eileen P. Baldwin,
                      Esq.

                  

                

        

      

    

     

    
      	
            	Lender:	
              Bank
                of America, N.A. 
                1101
                  Wootton Parkway, 4th
                  Floor

                Rockville,
                  Maryland 20852

                Attention:
                  Michael J. Radcliffe

                Senior
                  Vice President

              

            

    

     

    
      	
            	with
              a copy to:	
              Troutman
                Sanders LLP 
                1660
                  International Drive, Suite 600

                McLean,
                  Virginia 22102

                Attention:
                  Richard M. Pollak, Esq.

              

            

    

     

    By
      written notice, each party to this Agreement may change the address to which
      notice is given to that party, provided that such changed notice shall include
      a
      street address to which notices may be delivered by overnight courier in the
      ordinary course on any Business Day.

     

    
      	 	
              Section
                5.2

            	
              Amendments;
                Waivers.

            

    

     

    This
      Agreement and the other Financing Documents may not be amended, modified, or
      changed in any respect except by an agreement in writing signed by the Lender
      and the Pledgor. No waiver of any provision of this Agreement or of any of
      the
      other Financing Documents, nor consent to any departure by the Pledgor
      therefrom, shall in any event be effective unless the same shall be in writing.
      No course of dealing between the Pledgor and the Lender and no act or failure
      to
      act from time to time on the part of the Lender shall constitute a waiver,
      amendment or modification of any provision of this Agreement or any of the
      other
      Financing Documents or any right or remedy under this Agreement, under any
      of
      the other Financing Documents or under applicable Laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Section
                5.3

            	
              Cumulative
                Remedies.

            

    

     

    The
      rights, powers and remedies provided in this Agreement and in the other
      Financing Documents are cumulative, may be exercised concurrently or separately,
      may be exercised from time to time and in such order as the Lender shall
      determine and are in addition to, and not exclusive of, rights, powers and
      remedies provided by existing or future applicable Laws. In order to entitle
      the
      Lender to exercise any remedy reserved to it in this Agreement, it shall not
      be
      necessary to give any notice, other than such notice as may be expressly
      required in this Agreement. Without limiting the generality of the foregoing,
      the Lender may:

     

    (a) proceed
      against the Pledgor with or without proceeding against any other Person who
      may
      be liable for all or any part of the Obligations;

     

    (b) proceed
      against the Pledgor with or without proceeding under any of the other Financing
      Documents or against any Collateral or other collateral and security for all
      or
      any part of the Obligations;

     

    (c) without
      notice, release or compromise with any guarantor or other Person liable for
      all
      or any part of the Obligations under the Financing Documents or otherwise;
      and

     

    (d) without
      reducing or impairing the obligations of the Pledgor and without notice thereof:
      (i) fail to perfect the Lien in any or all Collateral or to release any or
      all
      the Stock Collateral or to accept substitute collateral, (ii) waive any
      provision of this Agreement or the other Financing Documents, (iii) exercise
      or
      fail to exercise rights of set-off or other rights, or (iv) accept partial
      payments or extend from time to time the maturity of all or any part of the
      Obligations.

     

    
      	 	
              Section
                5.4

            	
              Severability.

            

    

     

    In
      case
      one or more provisions, or part thereof, contained in this Agreement or in
      the
      other Financing Documents shall be invalid, illegal or unenforceable in any
      respect under any Law, then without need for any further agreement, notice
      or
      action:

     

    (a) the
      validity, legality and enforceability of the remaining provisions shall remain
      effective and binding on the parties thereto and shall not be affected or
      impaired thereby;

     

    (b) the
      obligation to be fulfilled shall be reduced to the limit of such
      validity;

     

    (c) if
      such
      provision or part thereof pertains to repayment of the Obligations, then, at
      the
      sole and absolute discretion of the Lender, all of the Obligations of the
      Pledgor to the Lender shall become immediately due and payable; and

     

    (d) if
      affected provision or part thereof does not pertain to repayment of the
      Obligations, but operates or would prospectively operate to invalidate this
      Agreement in whole or in material part, then such provision or part thereof
      only
      shall be void, and the remainder of this Agreement shall remain operative and
      in
      full force and effect.

     

    
      	 	
              Section
                5.5

            	
              Successors
                and Assigns.

            

    

     

    This
      Agreement and all other Financing Documents shall be binding upon and inure
      to
      the benefit of the Pledgor and the Lender and their respective heirs, personal
      representatives, successors and assigns, except that the Pledgor shall not
      have
      the right to assign its rights hereunder or any interest herein without the
      prior written consent of the Lender.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Section
                5.6

            	
              Applicable
                Law; Jurisdiction.

            

    

     

    
      	 	
              5.6.1

            	
              Applicable
                Law.

            

    

     

    This
      Agreement, shall be governed by the Laws of the State, as if each of the
      Financing Documents and this Agreement had been executed, delivered,
      administered and performed solely within the State.

     

    
      	 	
              5.6.2

            	
              Submission
                to Jurisdiction.

            

    

     

    The
      Pledgor irrevocably submits to the jurisdiction of any state or federal court
      sitting in the State over any suit, action or proceeding arising out of or
      relating to this Agreement or any of the other Financing Documents. The Pledgor
      irrevocably waives, to the fullest extent permitted by law, any objection that
      it may now or hereafter have to the laying of the 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 Pledgor and may be enforced
      in
      any court in which the Pledgor is subject to jurisdiction, by a suit upon such
      judgment, provided that service of process is effected upon the Pledgor in
      one
      of the manners specified in this Section or as otherwise permitted by applicable
      Laws.

     

    
      	 	
              5.6.3

            	
              Appointment
                of Agent for Service of
                Process.

            

    

     

    The
      Pledgor hereby irrevocably designates and appoints CT Corporation System,
      Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801 as
      the
      Pledgor’s authorized agent to receive on the Pledgor’s behalf service of any and
      all process that may be served in any suit, action or proceeding of the nature
      referred to in this Section in any state or federal court sitting in the State.
      If such agent shall cease so to act, the Pledgor shall irrevocably designate
      and
      appoint without delay another such agent in the State satisfactory to the Lender
      and shall promptly deliver to the Lender evidence in writing of such other
      agent’s acceptance of such appointment and its agreement that such appointment
      shall be irrevocable.

     

    
      	 	
              5.6.4

            	
              Service
                of Process.

            

    

     

    The
      Pledgor hereby consents to process being served in any suit, action or
      proceeding of the nature referred to in this Section by (a) the mailing of
      a
      copy thereof by registered or certified mail, postage prepaid, return receipt
      requested, to the Pledgor at the Pledgor’s address designated in or pursuant to
0
      (Notices), and (b) serving a copy thereof upon the agent, if any, designated
      and
      appointed by the Pledgor as the Pledgor’s agent for service of process by or
      pursuant to this Section. The Pledgor irrevocably agrees that such service
      (y)
      shall be deemed in every respect effective service of process upon the Pledgor
      in any such suit, action or proceeding, and (z) shall, to the fullest extent
      permitted by law, be taken and held to be valid personal service upon the
      Pledgor. 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 Pledgor in the courts of
      any
      jurisdiction or jurisdictions.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Section
                5.7

            	
              Headings.

            

    

     

    The
      headings in this Agreement are included herein for convenience only, shall
      not
      constitute a part of this Agreement for any other purpose, and shall not be
      deemed to affect the meaning or construction of any of the provisions
      hereof.

     

    
      	 	
              Section
                5.8

            	
              Entire
                Agreement.

            

    

     

    This
      Agreement is intended by the Lender and the Pledgor to be a complete, exclusive
      and final expression of the agreements contained herein. Neither the Lender
      nor
      the Pledgor shall hereafter have any rights under any prior agreements but
      shall
      look solely to this Agreement for definition and determination of all of their
      respective rights, liabilities and responsibilities under this
      Agreement.

     

    
      	 	
              Section
                5.9

            	
              Waiver
                of Trial by Jury.

            

    

     

    THE
      PLEDGOR AND THE LENDER HEREBY JOINTLY AND SEVERALLY WAIVE TRIAL BY JURY IN
      ANY
      ACTION OR PROCEEDING TO WHICH THE PLEDGOR AND THE LENDER MAY BE PARTIES, ARISING
      OUT OF OR IN ANY WAY PERTAINING TO (A) THIS AGREEMENT, (B) ANY OF THE FINANCING
      DOCUMENTS, OR (C) THE STOCK COLLATERAL. 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
      AGREEMENT.

     

    This
      waiver is knowingly, willingly and voluntarily made by the Pledgor and the
      Lender, and the Pledgor and the Lender hereby represent 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. The Pledgor and
      the
      Lender further represent that they have been represented in the signing of
      this
      Agreement and in the making of this waiver by independent legal counsel,
      selected of their own free will, and that they have had the opportunity to
      discuss this waiver with counsel.

     

    
      	 	
              Section
                5.10

            	
              Liability
                of the Lender.

            

    

     

    The
      Pledgor hereby agrees that the Lender shall not be chargeable for any
      negligence, mistake, act or omission of any accountant, examiner, agency or
      attorney employed by the Lender in making examinations, investigations or
      collections, the Lender’s failure to preserve or protect any rights of the
      Pledgor under the Stock Collateral or the Lender’s failure to perfect, maintain,
      protect or realize upon any lien or security interest or any other interest
      in
      the Stock Collateral or other security for the Obligations. By inspecting the
      Stock Collateral or any other properties of the Pledgor or by accepting or
      approving anything required to be observed, performed or fulfilled by the
      Pledgor or to be given to the Lender pursuant to this Agreement or any of the
      other Financing Documents, the Lender shall not be deemed to have warranted
      or
      represented the condition, sufficiency, legality, effectiveness or legal effect
      of the same, and such acceptance or approval shall not constitute any warranty
      or representation with respect thereto by the Lender.

     

    [SIGNATURE
      APPEARS ON THE FOLLOWING PAGE]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Pledgor has caused this Pledge, Assignment and Security
      Agreement to be executed, sealed and delivered, as of the day and year first
      written above.

     

    
      	 WITNESS: 	 	 	 ARGAN,
              INC.
	 	 	 	 
	/s/
              Arthur
              Trudel	 	
               By:

            	/s/ Rainer
              Bosselmann    (SEAL)
	
              

            	 	 	
              

              Name:
                Rainer Bosselmann

              Title:
                Chairman and CEO

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    IRREVOCABLE
      STOCK POWER

     

    FOR
      VALUE
      RECEIVED, the undersigned does (do) hereby sell(s), assign(s) and transfer(s)
      to

    

    Name:

    Address:

     

    Social
      Security or other Identifying Number: ____________________________

     

     

    ________
      shares of the ___________ stock of _____________________________________
represented
      by Certificate(s) No(s) ________________________inclusive, standing in the
      name
      of_____________________________________________ on the books of said company.
      The undersigned does (do) hereby irrevocably constitute(s) and
      appoint(s)___________________________ attorney to transfer the said stock on
      the
      books of said company with full power of substitution in the
      premises.

     

    Dated:_________________     _______________________________________

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