Document:

PLEDGE
      AND ASSIGNMENT AGREEMENT

     

    THIS
      PLEDGE AND ASSIGNMENT AGREEMENT (this “Agreement”),
      dated
      December 11, 2006, from ARGAN, INC., a corporation organized under the laws
      of
      the State of Delaware (the “Pledgor”),
      to
      BANK OF AMERICA, N.A., a national banking association (the “Lender”).

    

    PRELIMINARY
      STATEMENTS:

    

    (1) The
      Pledgor has opened account No. 003933352877 (such account, and any extension
      or
      renewal of such account from time to time, being the “Account”)
      with
      the Lender in the aggregate amount of Twelve Million Dollars ($12,000,000)
      of
      which (a) Ten Million Dollars ($10,000,000) will secure that certain Standby
      Letter of Credit #____ issued by the Lender for the benefit of Travelers
      Casualty and Surety Company of America (as amended, extended and renewed from
      time to time, the “LC”)
      and
      (b) Two Million Dollars ($2,000,000) will be held as an escrow fund (the
“Escrow
      Fund”)
      pursuant to the Financing Agreement (as hereinafter defined).

    

    (2) Pursuant
      to that certain Second Amended and Rested Financing and Security Agreement
      (as
      amended, modified, restated, substituted, extended and renewed at any time
      and
      from time to time, the “Financing
      Agreement”),
      dated
      as of December 11, 2006, by and among 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 (each
      a
“Borrower”
and,
      collectively, the “Borrowers”)
      and
      the Lender, the Pledgor agreed to pledge and assign its interests in the Account
      as set forth in this Agreement. All capitalized terms used herein and not
      otherwise defined herein shall have the meanings given to such terms in the
      Financing Agreement.

    

    NOW
      THEREFORE in consideration of the premises and for other good and valuable
      consideration, the Pledgor hereby agrees with the Lender as
      follows:

    

    SECTION
      1.
      Incorporation
      of Recitals.
      The
      Preliminary Statements set forth above are incorporated herein by reference
      as
      if fully set forth in the text of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SECTION
      2. Pledge
      and Assignment.
      The
      Pledgor hereby pledges and assigns to the Lender, and grants to the Lender
      a
      security interest in, the following collateral (the “Collateral”):

    

    (i) the
      Account, all funds held therein and all certificates and instruments, if any,
      from time to time representing or evidencing the Account;

    

    (ii) all
      interest, dividends, cash, instruments and other property from time to time
      received, receivable or otherwise distributed in respect of or in exchange
      for
      any or all of the then existing Collateral; and

    

    (iii) all
      proceeds of any and all of the foregoing Collateral.

    

    SECTION
      3. Security
      for Obligations.
      This
      Agreement secures the payment of all obligations of the Borrowers, jointly
      and
      severally, now or hereafter existing under Financing Agreement (all such
      obligations of the Borrowers being called the “Obligations”).

    

    SECTION
      4. Maintaining
      the Account.
      So long
      as any Obligations are outstanding:

    

    (a) The
      Pledgor will maintain the Account.

    

    (b) It
      shall
      be a term and condition of the Account, notwithstanding any term or condition
      to
      the contrary in any other agreement relating to the Account that no amount
      (including interest on the Account) shall be paid or released to or for the
      account of or withdrawn by or for the account of the Pledgor or any other person
      or entity from the Account.

    

    SECTION
      5. Further
      Assurances.
      The
      Pledgor agrees that at any time and from time to time, at the expense of the
      Pledgor, the Pledgor will promptly execute and deliver all further instruments
      and documents, and take all further action, that may be necessary or desirable,
      or that the Lender may reasonably request, in order to perfect and protect
      any
      security interest granted or purported to be granted hereby or to enable the
      Lender to exercise and enforce its rights and remedies hereunder with respect
      to
      any Collateral.

    

    SECTION
      6. Transfers
      and Other Liens.
      The
      Pledgor agrees that it will not (i) sell, assign (by operation of law or
      otherwise) or otherwise dispose of, or grant any option with respect to, any
      of
      the Collateral or (ii) create or permit to exist any lien, security interest
      option or other charge or encumbrance upon or with respect to any of the
      Collateral except for the security interest under this Agreement.

    

    SECTION
      7. The
      Lender’s Duties.
      The
      powers conferred on the Lender hereunder are solely to protect its interest
      in
      the Collateral and shall not impose any duty upon it to exercise any such
      powers. Except for the safe custody of any Collateral in its possession and
      the
      accounting for moneys actually received by it hereunder, the Lender shall have
      no duty as to any collateral, as to ascertaining or taking action with respect
      to calls, conversions exchanges maturities, tenders or other matters relative
      to
      any Collateral, whether or not the Lender or any Bank has or is deemed to have
      knowledge of such matters, or as to the taking of any necessary steps to
      preserve rights against any parties or any other rights pertaining to any
      Collateral. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    SECTION
      8. Remedies
      Upon Default.
      If any
      Event of Default shall have occurred and be continuing, in addition to the
      remedies set forth in the Financing Agreement:

    

    (a) The
      Lender may, without notice to the Pledgor except as required by law and at
      any
      time or from time to time, charge, set-off and otherwise apply all or any part
      of the Account against the Obligations or any part thereof.

    

    (b) The
      Lender may also exercise in respect of the Collateral, in addition to other
      rights and remedies provided for herein or otherwise available to it, all the
      rights and remedies of a secured party on default under the Uniform Commercial
      Code in effect in the State of Maryland at that time (the “Code”)
      (whether or not the Code applies to the affected Collateral). 

    

    SECTION
      9. Amendments.
      Etc.
      No
      amendment or waiver of any provision of this Agreement, and no consent to any
      departure by the Pledgor herefrom shall in any event be effective unless the
      same shall be in writing and signed by the Lender, and then such waiver or
      consent shall be effective only in the specific instance and for the specific
      purpose for which given.

    

    SECTION
      10. Continual
      Security Interest: Assignments under Financing Agreement.
      This
      Agreement shall create a continuing security interest in the Collateral and
      shall (i) remain in full force and effect until the payment in full of the
      Obligations and all other amounts payable under this Agreement, (ii) be binding
      upon the Pledgor, its successors and assigns, and (iii) inure to the benefit
      of,
      and be enforceable by, the Lender, and its successors, transferees and assigns.
      Upon the payment in full of the Obligations the security interest granted hereby
      shall terminate and all rights to the Collateral shall revert to the Pledgor.
      Upon any such termination, the Lender will, at the Pledgor’s expense, return to
      the Pledgor such of the Collateral as shall not have been sold or otherwise
      applied pursuant to the terms hereof and execute and deliver to the Pledgor
      such
      documents as the Pledgor shall reasonably request to evidence such termination.
      

    

    SECTION
      11. Release
      of Security Interest.
      Notwithstanding, anything contained in this Agreement to the contrary, provided,
      no Event of Default has occurred and is continuing under any of the Financing
      Documents, the Lender agrees upon written request from Pledgor to promptly
      release its security interest in (a) Ten Million Dollars ($10,000,000) of the
      Collateral and interest accrued on such amount, if at such time no Letter of
      Credit Obligations remain outstanding and Lender has no further obligations
      to
      issue any Letters of Credit, and (b) Two Million Dollars ($2,000,000) of the
      Collateral and interest accrued on such amount, in accordance with the
      provisions of Sections 2.2.4(c) or 2.4 of the Financing Agreement.

    

    SECTION
      12. Governing
      Law; Terms.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Maryland. Unless otherwise defined herein or in the Financing
      Agreement, terms defined in Article 9 of the Code are used herein as therein
      defined.

    

    [SIGNATURES
      APPEAR ON THE FOLLOWING PAGE]

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Pledgor has caused this Pledge and Assignment Agreement
      to
      be duly executed and delivered by its officer thereunto duly authorized as
      of
      the date first above written.

     

    
      	 	 	 
	 	ARGAN,
              INC.
              
	 
 	 
 	 
 
	 	By:  	/s/ Rainer
              Bosselmann
	 	
              

              Name:
                Rainer Bosselmann

              Title:
                Chairman and CEO

            

    

    

      	ACCEPTED
              AND
              AGREED:	 	 	 
	 	 	 	 
	BANK OF AMERICA, N.A.
              	 	 	 
	 	 	 	 
	By:
              /s/ Michael J. Radcliffe	 	 	 
	
              
                

              

              Name:
                Michael J. Radcliffe

              Title:
                Senior Vice President

            	 	 	
            

    

     

    
      
        
        

      

      
        4Unassociated Document

    Exhibit
      10.24

    October
      4, 2006

    

    

    

    Mr.
      Michael Moustakis 

    8706
      Skye
      Isle Way

    Bakersfield,
      CA 93312

    

    Dear
      Mike:

    

    Foothills
      Resources, Inc. (the “Company”) is pleased to offer you employment on the
      following terms:

    

    1. Position.
      You
      will serve in a full-time capacity as Vice President Engineering of the Company.
      By signing this letter agreement, you represent and warrant to the Company
      that
      you are under no contractual commitments inconsistent with your obligations
      to
      the Company.

    

    2. Salary.
      You
      will be paid a salary at the annual rate of $180,000, payable in semi-monthly
      installments in accordance with the Company’s standard payroll practices for
      salaried employees. This salary will be subject to adjustment pursuant to the
      Company’s employee compensation policies in effect from time to
      time.

    

    3. Hiring
      Bonus.
      You will
      receive a hiring bonus of $45,000 to be paid to you with your first paycheck.
      In
      the event that you voluntarily resign within 12 months of your start date,
      you
      agree to repay the hiring bonus immediately. 

    

    4. Benefits.
      You
      will receive the Company’s standard benefits for salaried employees, which will
      include a 401(k) retirement program and a bonus program, both of which are
      being
      formulated by the Company at the present time. The Company’s health, dental,
      vision and disability insurance is fully paid, as is a life insurance policy
      up
      to a maximum of $250,000. In addition, you will be eligible for four weeks
      of
      vacation. 

    

    5. Stock
      Options.
      Subject
      to the approval of the Company’s Board of Directors or its Compensation
      Committee, you will be granted an option to purchase 200,000 shares of the
      Company’s Common Stock. The exercise price per share will be equal to the fair
      market value per share on the date the option is granted or on your first day
      of
      employment, whichever is later. The option will be subject to the terms and
      conditions applicable to options granted under the Company’s 2006 Equity
      Incentive Plan, as described in that Plan and the applicable stock option
      agreement. The option will vest as follows: 25% of the shares of Common Stock
      underlying such option will vest on the date of grant, and the remaining 75%
      of
      the shares of Common Stock underlying the option will vest in equal annual
      installments on the first, second and third anniversaries of the date of
      grant.

    

    6. Confidential
      Information/Ownership and Assignment of Inventions; Non-Competition and
      Non-Solicitation; Insider
      Trading Policy/Public Disclosure.
      Like
      all Company employees, you will be required, as a condition to your employment
      with the Company, to sign the Company’s standard Assignment of Invention and
      Non-Disclosure Agreement, Non-Solicitation Agreement, and Insider Trading and
      Disclosure Policy Acknowledgement, copies of which are attached hereto as
      Exhibits A, B and C, respectively.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7. Period
      of Employment.
      Your
      employment with the Company will be “at will,” meaning that either you or the
      Company will be entitled to terminate your employment at any time and for any
      reason, with or without cause. Any contrary representations which may have
      been
      made to you are superseded by this offer. This is the full and complete
      agreement between you and the Company on this term. Although your job duties,
      title, compensation and benefits, as well as the Company’s personnel policies
      and procedures, may change from time to time, the “at will” nature of your
      employment may only be changed in an express written agreement signed by you
      and
      a duly authorized officer of the Company.

    

    8. Outside
      Activities.
      While
      you render services to the Company, you will not engage in any other gainful
      employment, or business activity without the written consent of the Company.
      While you render services to the Company, you also will not assist any person
      or
      organization in competing with the Company, in preparing to compete with the
      Company or in hiring any employees of the Company.

    

    9. Withholding
      Taxes.
      All
      forms of compensation referred to in this letter are subject to reduction to
      reflect applicable withholding and payroll taxes.

    

    10. Entire
      Agreement.
      This
      letter and the Exhibits attached hereto contain all of the terms of your
      employment with the Company and supersede any prior understandings or
      agreements, whether oral or written, between you and the Company.

    

    11. Amendment
      and Governing Law.
      This
      letter agreement may not be amended or modified except by an express written
      agreement signed by you and a duly authorized officer of the Company. The terms
      of this letter agreement and the resolution of any disputes will be governed
      by
      California law.

    

    We
      hope
      that you find the foregoing terms acceptable. You may indicate your agreement
      with these terms and accept this offer by signing and dating both the enclosed
      duplicate original of this letter and the enclosed Assignment of Invention
      and
      Non-Disclosure Agreement, Non-Solicitation Agreement, and Insider Trading and
      Disclosure Policy Acknowledgement, and returning them to me. As required by
      law,
      your employment with the Company is also contingent upon your providing legal
      proof of your identity and authorization to work in the United States. This
      offer, if not accepted, will expire at the close of business on October 16,
      2006.

    

    We
      look
      forward to having you join us on Monday, October 16, 2006 or as soon thereafter
      as practicable, subject to your existing contractual obligations.

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    If
      you
      have any questions, please call John Moran at (661) 716-1321 or (661) 978-6986.
      In the event that he is not available, you can also call Denny Tower at (661)
      716-1323 or (713) 562-8566.

    

    Very
      truly yours,

    

    FOOTHILLS
      RESOURCES, INC.

     

    By: /s/
      W.
      Kirk Bosché  

    W.
      Kirk
      Bosché

    Chief
      Financial Officer

    

    

    I
      have
      read and accept this employment offer:

     

    /s/
      Michael Moustakis    Dated: 
      October 4, 2006   

    Michael
      Moustakis

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