Document:

EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT (the “Agreement”)
      is
      made and entered into as of this 8th
      December, 2006, by and between GEMMA POWER SYSTEMS, LLC, a Connecticut limited
      liability company (the “Company”),
      and
      JOEL M. CANINO (the “Employee”).

    

    RECITALS:

    

    R-1. Argan,
      Inc., a Delaware corporation (“Argan”),
      has
      acquired all of the membership interests of the Company pursuant to that certain
      Membership Interest Purchase Agreement (the “Purchase Agreement”),
      of
      even date herewith, by and among Argan, the Company, Gemma Power, Inc., a
      Connecticut corporation (“GPS-Connecticut”),
      Gemma
      Power Systems California, Inc., a California corporation (“GPS-California,”
and
      together with GPS-Connecticut, the “Affiliates”),
      the
      Employee and William F. Griffin, Jr.; and has acquired and all of the issued
      and
      outstanding shares of capital stock of the Affiliates pursuant to that certain
      Stock Purchase Agreement, of even date herewith, by and among Argan, the
      Affiliates, the Employee and William F. Griffin, Jr.

    

    R-2. The
      Company and the Affiliates are in the business of engineering and constructing
      power energy systems, and providing consulting, owner’s representative,
      operating, and maintenance services to the energy market (collectively, the
      “Business”).

    

    R-3. The
      Employee possesses intimate knowledge of the Business as a result of his
      long-term employment by the Company.

    

    R-4. The
      Company wishes to continue to employ the Employee, and the Employee wishes
      to
      accept such continued employment, subject to and in accordance with the
      following terms and conditions.

    

    NOW,
      THEREFORE,
      in
      consideration of the foregoing premises, the mutual promises and covenants
      set
      forth herein, and other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties agree as
      follows:

    

    1. Employment.
      The
      Company hereby agrees to continue to employ the Employee, and the Employee
      hereby agrees to accept such continued employment, subject to the terms and
      conditions set forth in this Agreement. This Agreement supersedes and replaces
      any previous oral or written agreement concerning the Employee’s employment by
      the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2. Duties
      of the Employee.
      During
      the “Term”
(as
      defined below) of employment of the Employee, the Employee shall serve as a
      senior executive and Vice Chairman of the Board of the Company, and shall
      faithfully and diligently perform all services as may be assigned to him by
      the
      Board of Directors of the Company (the “Board”),
      and
      shall exercise such power and authority as may from time to time be delegated
      to
      him by the Board. The Employee shall perform all services to be rendered by
      him
      hereunder to the best of his ability and use his best efforts to promote the
      interests of the Company and the Affiliates. Notwithstanding the foregoing,
      it
      shall not be a breach or violation of this Agreement for the Employee to manage
      personal investments so long as such activities do not significantly interfere
      with or significantly detract from the performance of the Employee’s
      responsibilities to the Company in accordance with this Agreement.

    

    3. Term
      of Employment.
      Employment
      of the Employee pursuant to the terms and provisions of this Agreement shall
      commence on the date of Closing, as defined in the Purchase Agreement (the
      “Effective
      Date”),
      and
      shall continue for a term of eighteen (18) months thereafter (the “Initial
      Term”),
      unless earlier terminated as provided in this Agreement. At the end of the
      Initial Term, the Employee’s employment hereunder shall automatically renew for
      successive one year terms (each, a “Renewal
      Term”),
      subject to earlier termination as provided in this Agreement, unless the Company
      or the Employee delivers written notice to the other at least three (3) months
      prior to the expiration date of the Initial Term or any Renewal Term, as the
      case may be, of its or his election not to renew the term of employment.
The
      period during which the Employee shall be employed by the Company pursuant
      to
      the terms and provisions of this Agreement is sometimes referred to herein
      as
      the “Term.”

     

    4. Compensation. 

    

    4.1
      Salary.
      The
      Company shall pay the Employee compensation at the annual rate of $310,000
      (the
“Salary”)
      during
      the Initial Term, payable in installments consistent with the Company’s normal
      payroll schedule, subject to applicable withholding and other taxes. Not later
      than four (4) months prior to the expiration of the Initial Term or of any
      Renewal Term, as the case may be, Argan and the Employee shall commence
      discussions aimed at determining a mutually acceptable Salary for the then
      impending Renewal Term.

    

    4.2
      Bonus.
      In
      addition to Salary, the Employee shall be eligible for bonus compensation as
      determined by the Board based upon the Employee’s performance and the results of
      the Company’s operations.

     

    5. Benefit
      Plans; Insurance. 

    

    5.1 Benefit
      Plans.
      The
      Employee shall be permitted to participate in all employee medical, retirement
      and insurance benefit plans applicable to officers of the Company, and such
      other plans as may from time to time be made available or applicable to the
      Company, consistent with the policies of the Company.

     

    
      
        
        

      

      
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    5.2
      Key-Man
      Term Life Insurance.
      The
      Company will maintain and will pay the premiums on a key-man term life insurance
      policy on the life of the Employee. Such policy shall (a) name Argan as sole
      beneficiary, (b) be in the amount of not less than Five Million Dollars
      ($5,000,000), and (c) remain in full force and effect for the Term, or until
      the
      expiration of the term of said policy, if sooner. Each of the Employee and
      the
      Company agrees to take whatever action is reasonably required by the insurer
      to
      maintain such policy in full force and effect for such time. Upon the
      termination of the Employee’s employment hereunder for any reason, the Company
      shall assign to the Employee any and all rights which it may have in and to
      said
      insurance policy for the value of the prepaid unearned premium
      thereof.

    

    6. Vacation.
      The
      Employee shall be entitled to unlimited paid vacation during the Term; provided
      that the Employee is available by telephone during such periods of paid
      vacation; and provided that the Employee notifies the Company a reasonable
      period in advance of taking any such vacation and schedules same at a time
      and
      in a manner that will not adversely affect the Company. 

    

    7. Expenses.
      The
      Company shall reimburse the Employee, consistent with the Company’s expense
      reimbursement policies and procedures and subject to receipt of appropriate
      documentation, for all reasonable and necessary out-of-pocket travel, business
      entertainment, and other business expenses incurred or expended by the Employee
      incident to the performance of his duties hereunder.

    

    8. Working
      Facilities; Parking.
      During
      the Term the Company shall furnish the Employee with an office, secretarial
      help
      and such other facilities and services suitable to his position and adequate
      for
      the performance of his duties hereunder; and will provide the Employee with
      and
      pay for covered (if reasonably available) and reserved parking.

    

    9. Withholding.
      Notwithstanding anything in this Agreement to the contrary, all payments
      required to be made by the Company hereunder to the Employee or his estate
      or
      beneficiaries shall be subject to the withholding of such amounts relating
      to
      taxes as the Company may reasonably determine it should withhold pursuant to
      any
      applicable law or regulation. In lieu of withholding such amounts, in whole
      or
      in part, the Company may, in its sole discretion, accept other provisions for
      payment of taxes and withholding as required by law, provided it is satisfied
      that all requirements of law affecting its responsibilities to withhold have
      been satisfied.

     

    
      
        
        

      

      
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    10. Termination
      of Employment.

     

    10.1 For
      Cause.
      The
      Company may terminate the Employee’s employment at any time for “Cause”
(as
      defined below). For the purposes of this Agreement, “Cause”
shall
      mean (i) habitual drunkenness or any substance abuse which adversely affects
      the
      Employee’s performance of his job responsibilities; (ii) any illegal use of
      drugs; (iii) commission of a felony (including, without limitation, any
      violation of the Foreign Corrupt Practices Act); (iv) dishonesty materially
      relating to the Employee’s employment; (v) any misconduct by the Employee which
      would cause the Company to violate any state or federal law relating to sexual
      harassment or age, sex or other prohibited discrimination, or any intentional
      violation of any written policy of the Company or any successor entity adopted
      in respect to any such law; (vi) any other conduct in the performance of the
      Employee’s employment which the Employee knows or should know (either as a
      result of a prior warning by the Company, custom within the industry or the
      flagrant nature of the conduct) violates applicable law or causes the Company
      to
      violate applicable law in any material respect; (vii) failure to follow the
      lawful written instructions of the Board, if such failure continues uncured
      for
      a period of 10 days after receipt by the Employee of written notice from the
      Company stating that continuation of such failure would constitute grounds
      for
      termination for Cause; (viii) any violation of the confidentiality or
      non-competition provisions hereof; or (ix) any other material violation of
      this
      Agreement.

    

    10.2 Upon
      Death or Disability.
      The
      employment of the Employee shall automatically terminate upon the death of
      the
      Employee and may be terminated by the Company upon the “Disability”
(as
      defined below) of the Employee. For purposes of this Section 10.2, the Employee
      shall be deemed “Disabled”
(and
      termination of his employment shall be deemed to be due to such “Disability”)
      if an
      independent medical doctor (selected by the Company’s applicable health or
      disability insurer) certifies that the Employee, for a cumulative period of
      more
      than 120 days during any 365-day period, has been disabled in a manner which
      seriously interferes with his ability to perform the essential functions of
      his
      job even with a reasonable accommodation to the extent required by law. Any
      refusal by the Employee to submit to a medical examination for the purpose
      of
      certifying Disability shall be deemed conclusively to constitute evidence of
      the
      Employee’s Disability.

    

    10.3 For
      Convenience of the Company.
      Notwithstanding any other provisions of this Agreement, the Company shall have
      the right, upon ninety (90) days written notice to the Employee, to terminate
      the Employee’s employment at the “Company’s
      Convenience”
(i.e.,
      for reasons other than Cause, resignation for reasons other than “Good
      Reason”
[as
      defined below], death or Disability). For purposes hereof, resignation by the
      Employee for Good Reason also shall be deemed to constitute termination by
      the
      Company at the Company’s Convenience.

    

    10.4 Resignation;
      Good Reason.

    

    (a) The
      Employee shall have the right to resign at any time upon ninety (90) days’
written notice to the Company.

     

    
      
        
        

      

      
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    (b) For
      the
      purposes of this Agreement, resignation by the Employee as a result of the
      following shall be deemed to constitute resignation for “Good
      Reason,”
      provided that and on condition that the Employee has not consented to the action
      constituting Good Reason and such resignation occurs within 15 days following
      the occurrence of such action (or, in the case of clause (iv) below, following
      the expiration of the 45-day cure period), and that the Employee is not Disabled
      (or incapacitated in a manner which would, with the passage of time and
      appropriate doctor’s certification, constitute Disability) at the time of
      resignation: (i) a transfer of the Company’s offices, or a transfer of the
      Employee (other than on a temporary basis), to a location which would increase
      the Employee’s commute (by the most direct route) from his residence as of the
      date hereof by more than 25 miles in each direction, or (ii) a material adverse
      change made by the Company to the Employee’s duties, responsibilities and/or
      working conditions such that such duties, responsibilities and/or working
      conditions are inappropriate and not customary for a president and chief
      executive officer of a similarly situated company, or (iii) a material breach
      by
      the Company of this Agreement which breach continues uncured for a period of
      45
      days after receipt by the Company of written notice thereof from the Employee
      specifying the breach.

    

    11. Effect
      of Termination on Compensation.

    

    11.1 Termination
      for Cause; Resignation.
      In the
      event (i) the Employee’s employment with the Company is terminated by the
      Company for Cause, or (ii) the Employee resigns (for reasons other than Good
      Reason), the Company shall have no further liability to the Employee hereunder,
      whether for salary, benefits, or otherwise, other than for salary and benefits
      accrued, reimbursement of expenses properly incurred, payment for all accrued
      vacation calculated in accordance with the Company’s standard payroll practices,
      in each case through the date of termination or resignation, and any other
      benefits required by applicable law (e.g., COBRA) for which the Employee may
      be
      eligible.

    

    11.2 Death
      or Disability.
      In the
      event the Employee’s employment with the Company terminates as a result of the
      death of the Employee or is terminated by the Company as a result of the
      Disability of the Employee, the Employee or, in the event of his death, his
      surviving spouse (or his estate, if there is no surviving spouse), shall be
      entitled to receive his salary and benefits accrued, reimbursement of expenses
      properly incurred and payment for all accrued vacation calculated in accordance
      with the Company’s standard payroll practices, in each case through the date of
      termination, as well as applicable health, disability or death benefits, if
      any,
      offered by the Company at the time consistent with the policies of the Company
      and subject to the eligibility requirements of such benefits.

    

    11.3. The
      Company’s Convenience or Good Reason.

    

    (a) In
      the
      event the Employee’s employment with the Company is terminated by the Company at
      the Company’s Convenience or by the Employee for Good Reason, then the Employee
      shall be entitled to (i) continue to receive his Salary for the duration of
      the
      Term, and (ii) continue to participate in the Company’s health and benefit plans
      and programs described in Section 6 (but specifically excluding the vacation
      benefit described in Section 7) for the duration of the Term (provided that
      continued participation during such period does not cause a plan, program or
      practice to cease to be qualified under any applicable law or regulation and
      is
      permitted by the plan or program, and that continuation under any such plan,
      program or practice shall be limited to benefits customarily provided by the
      Company to its senior executives during the period of such continuation, and
      provided further that any such plan or program shall be subject to modifications
      applicable to executive-level employees generally). Such compensation,
      allowances and benefits shall continue to be paid or provided at the times
      and
      in the manner consistent with the standard payroll practices of the Company
      for
      its active executive-level employees. In addition, the Employee shall be
      entitled to receive his salary and benefits accrued, reimbursement of expenses
      properly incurred and payment for all accrued vacation calculated in accordance
      with the Company’s standard payroll practices, in each case through the date of
      termination. Except as provided in this Section, no other compensation or
      benefits hereunder shall be payable during the balance of the Term. The
      foregoing benefits are in lieu,
      inter alia,
      of any
      notice obligation on the part of the Company.

     

    
      
        
        

      

      
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    (b) As
      a
      condition to receiving the severance benefits described in clause (a) above,
      the
      Employee shall be required to execute and deliver to the Company, and not to
      have revoked, the written confirmation described in Section 13 and a general
      release of all claims the Employee may have against the Company or Argan and
      their respective subsidiaries and affiliates, and the officers, directors,
      shareholders and agents of each of them, in each case in such form as may be
      reasonably requested by the Company, including without limitation all claims
      for
      wrongful termination, for employment discrimination under Title VII of the
      Civil
      Rights Act of 1964, as amended, and claims under the Americans with Disabilities
      Act of 1990, the Equal Pay Act of 1963, the Age Discrimination in Employment
      Act
      of 1967, the Older Workers Benefit Protection Act of 1990, the Civil Rights
      Act
      of 1866, the Family and Medical Leave Act of 1993, the Civil Rights Act of
      1991,
      the Employee Retirement Income Security Act of 1974 and any equivalent state,
      local and municipal laws, rules and regulations). Notwithstanding the foregoing,
      the Employee shall not be required to release any claims (i) for unpaid
      compensation or other benefits remaining unpaid by the Company at the time
      of
      termination, but may be required to agree upon and acknowledge the amount,
      if
      any, thereof remaining unpaid if such amount is calculable at the time, and
      (ii)
      which the Employee may have in connection with any unexercised Stock Options
      granted pursuant to Section 5.

    

    (c) Upon
      the
      occurrence of any material breach of this Agreement after the effective date
      of
      employment termination (it being understood that, without limitation, any breach
      of Sections 12, 13 or 14 of this Agreement shall be deemed material), the
      Company shall have no further liability to pay severance benefits hereunder
      and
      may, in addition to exercising any other remedies it may have hereunder or
      under
      law, immediately discontinue payment of remaining unpaid severance
      benefits.

    

    11.4 Adjustments
      to Comply with American Jobs Creation Act.
      In the
      event any of the severance payment provisions of this Section should prove
      to be
      inconsistent with the requirements of Section 409A of the Internal Revenue
      Code
      of 1986, as amended, or the regulations thereunder, the Company and the Employee
      shall endeavor to amend those severance payment provisions in order to eliminate
      any inconsistency with Section 409A while ensuring, to the greatest extent
      possible, that the Employee will continue to be entitled to the benefits
      provided under this Agreement without increase in the economic cost to either
      party.

     

    
      
        
        

      

      
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    12. Confidentiality.
      The
      Employee recognizes and acknowledges that certain information possessed by
      the
      Company and its affiliates constitutes valuable, special, and unique proprietary
      information and trade secrets. Accordingly, the Employee shall not, during
      the
      term of his employment with the Company,
      divulge,
      use, furnish, disclose or make available to any person, whether or not a
      competitor of the Company, any confidential or proprietary information
      concerning the assets, business, or affairs of the Company, of any affiliate
      of
      the Company or of its suppliers, customers, licensees or licensors, including,
      without limitation, any information regarding trade secrets and information
      (whether or not constituting trade secrets) concerning sources of supply, costs,
      pricing practices, financial data, business plans, employee information,
      manufacturing processes, product designs, production applications and technical
      processes (hereinafter called “Confidential
      Information”),
      except as may be required by law or as may be required in the ordinary course
      of
      performing his duties hereunder. The foregoing shall not be applicable to any
      information which now is or hereafter shall be in the public domain other than
      through the fault of the Employee. Upon the expiration or termination of the
      Employee’s employment, for any reason, whether voluntary or involuntary and
      whether by the Company or the Employee, or at any time the Company may request,
      the Employee shall (a) surrender to the Company all documents and data of any
      kind (including data in machine-readable form) or any reproductions (in whole
      or
      in part) of any items relating to the Confidential Information, as well as
      information stored in an electronic or digital format, containing or embodying
      Confidential Information including without limitation internal and external
      business forms, manuals, notes, customer lists, and computer files and programs
      (including information stored in any electronic or digital format), and shall
      not make or retain any copy or extract of any of the foregoing, and (b) will
      confirm in writing that (i) no Confidential Information exists on any computers,
      computer storage devices or other electronic media that were at any time within
      the Employee’s control (other than those which remain at, or have been returned
      to, the Company) and (ii) he has not disclosed any Confidential Information
      to
      others outside of the Company in violation of this Section. The Company shall
      have the right at any time at its option to replace the hard drive in the
      Employee’s laptop or other computer supplied by the Company with another
      equivalent hard drive. As used in this Agreement, “affiliate”
means,
      with respect to the Company or any other entity, any person or entity
      controlling, controlled by or under common control with, the Company or such
      other entity, including without limitation Argan, and “control”
for
      such purpose means the possession, directly or indirectly, of the power to
      direct or cause the direction of the management and policies of a person or
      entity, whether through the ownership of voting securities or voting interests,
      by contract or otherwise.

    

    13. Rights
      in the Company’s Property; Inventions.

    

    (a) The
      Employee hereby recognizes the Company’s proprietary rights in the tangible and
      intangible property of the Company and acknowledges that notwithstanding the
      relationship of employment, the Employee will not obtain or acquire, and has
      not
      obtained or acquired, through such employment any personal property rights
      in
      any of the property of the Company, including without limitation any writing,
      communications, manuals, documents, instruments, contracts, agreements, files,
      literature, data, technical information, secrets, formulas, products, methods,
      mailing lists, business models, business plans, procedures, processes, devices,
      apparatuses, trademarks, trade names, trade styles, service marks, logos,
      copyrights, patents, or other matters which are the property of the
      Company.

     

    
      
        
        

      

      
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    (b) The
      Employee agrees that during the Term of his employment with the Company and
      for
      a period of three (3) months thereafter, any and all discoveries, inventions,
      improvements and innovations (including all data and records pertaining thereto)
      (“Inventions”),
      whether or not patentable, copyrightable or reduced to writing, which the
      Employee may have conceived or made, or may conceive or make, either alone
      or in
      conjunction with others and whether or not during working hours or by the use
      of
      the facilities of the Company, which are related or in any way connected with
      the Business of the Company and the Affiliates or any affiliate, are and shall
      be the sole and exclusive property of the Company. The Employee shall promptly
      disclose all such Inventions to the Company, shall execute at the request of
      the
      Company any assignments or other documents the Company may deem necessary to
      protect or perfect its rights therein, and shall assist the Company, at the
      Company’s expense, in obtaining, defending and enforcing the Company’s rights
      therein. The Employee hereby appoints the Company as his attorney-in-fact to
      execute on his behalf any assignments or other documents deemed necessary by
      the
      Company to protect or perfect its rights to any Inventions.

    

    14. Non-Competition,
      Non-Solicitation Covenants.

    

    14.1 Covenant
      Not to Compete.
      At all
      times during the Term and for a period of two years after the Term (the
“Restrictive
      Period”),
      the
      Employee shall not, directly or indirectly, alone or with others, engage in
      any
      competition with, or have any financial or ownership interest in any sole
      proprietorship, corporation, company, partnership, association, venture or
      business or any other person or entity (whether as an employee, officer,
      director, partner, manager, member, agent, security holder, creditor, consultant
      or otherwise) that directly or indirectly (or through any affiliated entity)
      competes with the Business of the Company and the Affiliates; provided that
      such
      provision shall not apply to (i) the Employee’s ownership of Argan stock, (ii)
      the Employee’s ownership of interests in entities which may develop, own and
      operate (but not design or build) power plants, or (iii) the acquisition by
      the
      Employee, solely as an investment, of securities of any issuer that is
      registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934,
      as amended, and that are listed or admitted for trading on any United States
      national securities exchange or that are quoted on the Nasdaq Stock Market,
      or
      any similar system or automated dissemination of quotations of securities prices
      in common use, so long as the Employee does not control, acquire a controlling
      interest in, or become a member of a group that exercises direct or indirect
      control of, more than 5% of any class of capital stock or other indicia of
      ownership of such issuer. For purposes of clause (ii) of this Section 14.1
      above, and for clause (b) of Section 14.2 below, “develop” or “development of”
power plants shall mean the usual and customary actions taken by an owner or
      potential owner of a power plant to obtain licenses, permits or other
      governmental approvals required in order to own and operate a power plant,
      but not the designing or constructing of a power plant. 

     

    
      
        
        

      

      
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    14.2 Non-Solicitation.
      At all
      times during the Restrictive Period, the Employee shall not, directly or
      indirectly, for himself or for any other person, firm, corporation, company,
      partnership, association, venture or business or any other person or entity:
      (a)
      solicit for employment, employ or attempt to employ or enter into any
      contractual arrangement with any employee or former employee (which, for
      purposes of this Section 14.2 shall mean anyone employed during the 24 month
      period ending on the date of termination of the Employee’s employment with the
      Company) of the Company, the Affiliates, or Argan or any affiliate or subsidiary
      of Argan, except Raymond J. Bednarz and Fred Kresse; and/or (b) call on or
      solicit any of the actual or targeted prospective customers or clients, or
      any
      actual distributors or suppliers, of the Company (except in connection with
      the
      Employee’s development, ownership and operation (but not the designing or
      building) of power plants), the Affiliates, or Argan or any affiliate or
      subsidiary of Argan on behalf of himself or on behalf of any person or entity
      in
      connection with any business that competes with the Business of the Company
      and
      the Affiliates, nor shall the Employee make known the names or addresses or
      other contact information of such actual or prospective customers or clients,
      or
      any such actual distributors or suppliers, or any information relating in any
      manner to the Company’s, or the Affiliates’ or Argan’s or any subsidiary or
      affiliate of Argan’s trade or business relationships with such actual or
      prospective customers or clients, or any such actual distributors or suppliers,
      other than in connection with the performance by the Employee of his duties
      under this Agreement.

    

    15. Acknowledgment
      by the Employee.
      The
      Employee acknowledges and confirms that the restrictive covenants contained
      in
      Sections 12, 13 and 14 hereof (including without limitation the length of the
      term of the provisions of Section 14) are required by the Company as an
      inducement to enter into this Agreement, are reasonably necessary to protect
      the
      legitimate business interests of the Company, and are not overbroad, overlong,
      or unfair and are not the result of overreaching, duress or coercion of any
      kind. The Employee further acknowledges that the restrictions contained in
      Sections 12, 13 and 14 hereof are intended to be, and shall be, for the benefit
      of and shall be enforceable by the Company and its successors and assigns.
      The
      Employee expressly agrees that upon any breach or violation of the provisions
      of
      Sections 12, 13, or 14 hereof, the Company shall be entitled, as a matter of
      right, in addition to any other rights or remedies it may have, to: (a)
      temporary and/or permanent injunctive relief in any court of competent
      jurisdiction as described in Section 16 hereof; and (b) such damages as are
      provided at law or in equity. The existence of any claim or cause of action
      against any of the Company, the Affiliates, or Argan or their respective
      subsidiaries or affiliates, whether predicated upon this Agreement or otherwise,
      shall not constitute a defense to the enforcement of any of the restrictions
      contained in Sections 12, 13 or 14 hereof.

    

    16. Enforcement;
      Modification.

    

    16.1 Injunction.
      It is
      recognized and hereby acknowledged by the parties hereto that a breach by the
      Employee of any of the covenants contained in Sections 12, 13 or 14 of this
      Agreement will cause irreparable harm and damage to the Company, the monetary
      amount of which may be virtually impossible to ascertain. As a result, the
      Employee recognizes and hereby acknowledges that the Company shall be entitled
      to an injunction from any court of competent jurisdiction enjoining and
      restraining any violation of any or all of the covenants contained in Sections
      12, 13 or 14 of this Agreement by the Employee or any of his affiliates,
      associates, partners or agents, either directly or indirectly, and that such
      right to injunction shall be cumulative and in addition to whatever other
      remedies the Company may possess.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    16.2 Reformation
      by Court.
      In the
      event that a court of competent jurisdiction shall determine that any provision
      of Sections 12, 13 or 14 is invalid or more restrictive than permitted under
      the
      governing law of such jurisdiction, then only as to enforcement of Sections
      12,
      13 or 14 within the jurisdiction of such court, such provision shall be
      interpreted or reformed and enforced as if it provided for the maximum
      restriction permitted under such governing law.

    

    16.3 Extension
      of Time.
      If the
      Employee shall be in violation of any provision of Sections 12, 13 or 14, then
      each time limitation set forth in Sections 12, 13 or 14 shall be extended for
      a
      period of time equal to the period of time during which such violation or
      violations occur. If the Company seeks injunctive relief from such violation
      in
      any court, then the covenants set forth in Sections 12, 13 and 14 shall be
      extended for a period of time equal to the pendency of such proceeding including
      all appeals by either of the Sellers.

    

    16.4 Survival.
      The
      provisions of Sections 12, 13 and 14 shall survive the termination of this
      Agreement.

    

    16.5 Purchase
      Agreement.
      Notwithstanding anything to the contrary contained in this Agreement, nothing
      herein shall limit or otherwise affect the restrictive covenants applicable
      to
      the Employee, as Seller, under and pursuant to the terms, covenants and
      conditions of the Purchase Agreement, including without limitation the covenant
      not to compete for a period of five years from the Closing Date (as defined
      in
      the Purchase Agreement), all of which such restrictive covenants shall remain
      in
      full force and effect in accordance with the terms and conditions of the
      Purchase Agreement.

    

    17. Assignment.
      The
      Company shall have the right to assign this Agreement and its rights and
      obligations hereunder in whole, but not in part, to any corporation or other
      entity with or into which the Company may hereafter merge or consolidate or
      to
      which the Company may transfer all or substantially all of its assets, if in
      any
      such case said corporation or other entity shall by operation of law or
      expressly in writing assume all obligations of the Company hereunder as fully
      as
      if it had been originally made a party hereto, but may not otherwise assign
      this
      Agreement or its rights and obligations hereunder. The Employee may not assign
      or transfer this Agreement or any rights or obligations hereunder.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    18. Benefits;
      Binding Effect.
      This
      Agreement shall be for the benefit of and binding upon the parties hereto and
      their respective heirs, personal representatives, legal representatives,
      successors and, where permitted and applicable, assigns, including, without
      limitation, any successor to the Company, whether by merger, consolidation,
      sale
      of stock, sale of assets or otherwise.

    

    19. Severability.
      The
      invalidity of any one or more of the words, phrases, sentences, clauses,
      provisions, sections or articles contained in this Agreement shall not affect
      the enforceability of the remaining portions of this Agreement or any part
      thereof, all of which are inserted conditionally on their being valid in law,
      and, in the event that any one or more of the words, phrases, sentences,
      clauses, provisions, sections or articles contained in this Agreement shall
      be
      declared invalid, this Agreement shall be construed as if such invalid word
      or
      words, phrase or phrases, sentence or sentences, clause or clauses, provisions
      or provisions, section or sections or article or articles had not been inserted.
      If such invalidity is caused by length of time or size of area, or both, the
      otherwise invalid provision will be considered to be reduced to a period or
      area
      which would cure such invalidity.

    

    20. Waivers.
      The
      waiver by either party hereto of a breach or violation of any term or provision
      of this Agreement shall not operate nor be construed as a waiver of any
      subsequent breach or violation.

    

    21. Damages;
      Attorneys Fees.
      Nothing
      contained herein shall be construed to prevent the Company or the Employee
      from
      seeking and recovering from the other damages sustained by either or both of
      them as a result of its or his breach of any term or provision of this
      Agreement. In the event that either party hereto seeks to collect any damages
      resulting from, or the injunction of any action constituting, a breach of any
      of
      the terms or provisions of this Agreement, then the party found to be at fault
      shall pay all reasonable costs and attorneys’ fees of the other
      party.

    

    22. Section
      Headings.
      The
      article, section and paragraph headings contained in this Agreement are for
      reference purposes only, and shall not affect in any way the meaning or
      interpretation of this Agreement.

    

    23. No
      Third Party Beneficiary.
      Nothing
      expressed or implied in this Agreement is intended, or shall be construed,
      to
      confer upon or give any person other than the Company, and the parties hereto
      and their respective heirs, personal representatives, legal representatives,
      successors and permitted assigns, any rights or remedies under or by reason
      of
      this Agreement.

    

    24. Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original but all of which together shall constitute one and
      the
      same.

    

    25. Governing
      Law.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      internal laws of the State of Connecticut, without regard to principles of
      conflict of laws.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    26. Jurisdiction
      and Venue.
      Each
      of
      the parties irrevocably and unconditionally: (a) agrees that any suit, action
      or
      legal proceeding arising out of or relating to this Agreement which is expressly
      permitted by the terms of this Agreement to be brought in a court of law, shall
      be brought in the Superior Court of the State of Connecticut for the Judicial
      District of Hartford or in the United States District Court for the District
      of
      Connecticut; (b) consents to the jurisdiction of each such court in any such
      suit, action or proceeding; (c) waives any objection which it or he may have
      to
      the laying of venue of any such suit, action or proceeding in any of such
      courts; and (d) agrees that service of any court papers may be effected on
      such
      party by mail, as provided in this Agreement, or in such other manner as may
      be
      provided under applicable laws or court rules in such courts.

    

    27. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties hereto with
      respect to the subject matter hereof and, upon its effectiveness, shall
      supersede all prior agreements, understandings and arrangements, both oral
      and
      written, between the Employee and the Company (or any of its affiliates) with
      respect to such subject matter. This Agreement may not be modified in any way
      unless by a written instrument signed by both the Company and the
      Employee.

    

    28. Notices.
      All
      notices required or permitted to be given hereunder shall be in writing and
      shall be personally delivered by courier, sent by registered or certified mail,
      return receipt requested, sent by overnight courier, or sent by confirmed
      facsimile transmission addressed as set forth herein. Notices personally
      delivered, sent by facsimile or sent by overnight courier shall be deemed given
      on the date of delivery and notices mailed in accordance with the foregoing
      shall be deemed given upon the earlier of receipt by the addressee, as evidenced
      by the return receipt thereof, or three days after deposit in the U.S. mail.
      Notice shall be sent: (a) if to the Company, addressed to the Company, One
      Church Street, Suite 401, Rockville, Maryland 20850, Attention: Arthur F.
      Trudel; and (b) if to the Employee, to his address as reflected on the payroll
      records of the Company, or to such other address as either party shall request
      by notice to the other in accordance with this provision.

    

    [SIGNATURES
      ON NEXT PAGE]

    

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF,
      each of
      the undersigned has executed, or has caused its duly authorized representative
      to execute, this Agreement as of the date first above written.

     

    
      	 	THE
              COMPANY:
	 	 	 
	 	GEMMA
              POWER SYSTEMS, LLC
	 
 	 
 	 
 
	 	By:  	/s/ William
              F. Griffin, Jr.
	 	
              

              Name:
                William F. Griffin, Jr.

              Title:
                Manager

            

    

    

    
      	 	 	 
	 	THE
              EMPLOYEE:
	 
 	 
 	 
 
	 	 	/s/ Joel
              M.
              Canino
	 	
              
JOEL
              M.
              CANINO

    

     

    
      
        
        

      

      
        13Unassociated Document

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT (the “Agreement”)
      is
      made and entered into as of this 8th
      December, 2006, by and between GEMMA POWER SYSTEMS, LLC, a Connecticut limited
      liability company (the “Company”),
      and
      WILLIAM F. GRIFFIN, JR. (the “Employee”).

    

    RECITALS:

    

    R-1. Argan,
      Inc., a Delaware corporation (“Argan”),
      has
      acquired all of the membership interests of the Company pursuant to that certain
      Membership Interest Purchase Agreement (the “Purchase Agreement”),
      of
      even date herewith, by and among Argan, the Company, Gemma Power, Inc., a
      Connecticut corporation (“GPS-Connecticut”),
      Gemma
      Power Systems California, Inc., a California corporation (“GPS-California,”
and
      together with GPS-Connecticut, the “Affiliates”),
      the
      Employee and William F. Griffin, Jr.; and has acquired and all of the issued
      and
      outstanding shares of capital stock of the Affiliates pursuant to that certain
      Stock Purchase Agreement, of even date herewith, by and among Argan, the
      Affiliates, the Employee and William F. Griffin, Jr.

    

    R-2. The
      Company and the Affiliates are in the business of engineering and constructing
      power energy systems, and providing consulting, owner’s representative,
      operating, and maintenance services to the energy market (collectively, the
      “Business”).

    

    R-3. The
      Employee possesses intimate knowledge of the Business as a result of his
      long-term employment by the Company.

    

    R-4. The
      Company wishes to continue to employ the Employee, and the Employee wishes
      to
      accept such continued employment, subject to and in accordance with the
      following terms and conditions.

    

    NOW,
      THEREFORE,
      in
      consideration of the foregoing premises, the mutual promises and covenants
      set
      forth herein, and other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties agree as
      follows:

    

    1. Employment.
      The
      Company hereby agrees to continue to employ the Employee, and the Employee
      hereby agrees to accept such continued employment, subject to the terms and
      conditions set forth in this Agreement. This Agreement supersedes and replaces
      any previous oral or written agreement concerning the Employee’s employment by
      the Company.

    

    2. Duties
      of the Employee.
      During
      the “Term”
(as
      defined below) of employment of the Employee, the Employee shall serve as
      President and Chief Operating Officer of the Company, and shall faithfully
      and
      diligently perform all services as may be assigned to him by the Board of
      Directors of the Company (the “Board”),
      and
      shall exercise such power and authority as may from time to time be delegated
      to
      him by the Board. The Employee shall devote his time and attention to the
      business and affairs of the Company, perform all services to be rendered by
      him
      hereunder to the best of his ability, and use his best efforts to promote the
      interests of the Company and the Affiliates. Notwithstanding the foregoing,
      it
      shall not be a breach or violation of this Agreement for the Employee to manage
      personal investments so long as such activities do not significantly interfere
      with or significantly detract from the performance of the Employee’s
      responsibilities to the Company in accordance with this Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. Term
      of Employment.
      Employment
      of the Employee pursuant to the terms and provisions of this Agreement shall
      commence on the date of Closing, as defined in the Purchase Agreement (the
      “Effective
      Date”),
      and
      shall continue for a term of eighteen (18) months thereafter (the “Initial
      Term”),
      unless earlier terminated as provided in this Agreement. At the end of the
      Initial Term, the Employee’s employment hereunder shall automatically renew for
      successive one year terms (each, a “Renewal
      Term”),
      subject to earlier termination as provided in this Agreement, unless the Company
      or the Employee delivers written notice to the other at least three (3) months
      prior to the expiration date of the Initial Term or any Renewal Term, as the
      case may be, of its or his election not to renew the term of employment.
The
      period during which the Employee shall be employed by the Company pursuant
      to
      the terms and provisions of this Agreement is sometimes referred to herein
      as
      the “Term.”

     

    4. Compensation. 

    

    4.1
      Salary.
      The
      Company shall pay the Employee compensation at the annual rate of $430,000
      (the
“Salary”)
      during
      the Initial Term, payable in installments consistent with the Company’s normal
      payroll schedule, subject to applicable withholding and other taxes. Not later
      than four (4) months prior to the expiration of the Initial Term or of any
      Renewal Term, as the case may be, Argan and the Employee shall commence
      discussions aimed at determining a mutually acceptable Salary for the then
      impending Renewal Term.

    

    4.2
      Bonus.
      In
      addition to Salary, the Employee shall be eligible for bonus compensation as
      determined by the Board based upon the Employee’s performance and the results of
      the Company’s operations.

     

    5. Benefit
      Plans; Insurance. 

    

    5.1 Benefit
      Plans.
      The
      Employee shall be permitted to participate in all employee medical, retirement
      and insurance benefit plans applicable to officers of the Company, and such
      other plans as may from time to time be made available or applicable to the
      Company, consistent with the policies of the Company.

    

    5.2
      Key-Man
      Term Life Insurance.
      The
      Company will maintain and will pay the premiums on a key-man term life insurance
      policy on the life of the Employee. Such policy shall (a) name Argan as sole
      beneficiary, (b) be in the amount of not less than Five Million Dollars
      ($5,000,000), and (c) remain in full force and effect for the Term, or until
      the
      expiration of the term of said policy, if sooner. Each of the Employee and
      the
      Company agrees to take whatever action is reasonably required by the insurer
      to
      maintain such policy in full force and effect for such time. Upon the
      termination of the Employee’s employment hereunder for any reason, the Company
      shall assign to the Employee any and all rights which it may have in and to
      said
      insurance policy for the value of the prepaid unearned premium
      thereof.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    6. Vacation.
      The
      Employee shall be entitled to unlimited paid vacation during the Term; provided
      that the Employee is available by telephone during such periods of paid
      vacation; and provided that the Employee notifies the Company a reasonable
      period in advance of taking any such vacation and schedules same at a time
      and
      in a manner that will not adversely affect the Company. 

    

    7. Expenses.
      The
      Company shall reimburse the Employee, consistent with the Company’s expense
      reimbursement policies and procedures and subject to receipt of appropriate
      documentation, for all reasonable and necessary out-of-pocket travel, business
      entertainment, and other business expenses incurred or expended by the Employee
      incident to the performance of his duties hereunder.

    

    8. Working
      Facilities; Parking.
      During
      the Term the Company shall furnish the Employee with an office, secretarial
      help
      and such other facilities and services suitable to his position and adequate
      for
      the performance of his duties hereunder; and will provide the Employee with
      and
      pay for covered (if reasonably available) and reserved parking.

    

    9. Withholding.
      Notwithstanding anything in this Agreement to the contrary, all payments
      required to be made by the Company hereunder to the Employee or his estate
      or
      beneficiaries shall be subject to the withholding of such amounts relating
      to
      taxes as the Company may reasonably determine it should withhold pursuant to
      any
      applicable law or regulation. In lieu of withholding such amounts, in whole
      or
      in part, the Company may, in its sole discretion, accept other provisions for
      payment of taxes and withholding as required by law, provided it is satisfied
      that all requirements of law affecting its responsibilities to withhold have
      been satisfied.

    

    10. Termination
      of Employment.

     

    10.1 For
      Cause.
      The
      Company may terminate the Employee’s employment at any time for “Cause”
(as
      defined below). For the purposes of this Agreement, “Cause”
shall
      mean (i) habitual drunkenness or any substance abuse which adversely affects
      the
      Employee’s performance of his job responsibilities; (ii) any illegal use of
      drugs; (iii) commission of a felony (including, without limitation, any
      violation of the Foreign Corrupt Practices Act); (iv) dishonesty materially
      relating to the Employee’s employment; (v) any misconduct by the Employee which
      would cause the Company to violate any state or federal law relating to sexual
      harassment or age, sex or other prohibited discrimination, or any intentional
      violation of any written policy of the Company or any successor entity adopted
      in respect to any such law; (vi) any other conduct in the performance of the
      Employee’s employment which the Employee knows or should know (either as a
      result of a prior warning by the Company, custom within the industry or the
      flagrant nature of the conduct) violates applicable law or causes the Company
      to
      violate applicable law in any material respect; (vii) failure to follow the
      lawful written instructions of the Board, if such failure continues uncured
      for
      a period of 10 days after receipt by the Employee of written notice from the
      Company stating that continuation of such failure would constitute grounds
      for
      termination for Cause; (viii) any violation of the confidentiality or
      non-competition provisions hereof; or (ix) any other material violation of
      this
      Agreement.

    

    
      
        
        

      

      
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    10.2 Upon
      Death or Disability.
      The
      employment of the Employee shall automatically terminate upon the death of
      the
      Employee and may be terminated by the Company upon the “Disability”
(as
      defined below) of the Employee. For purposes of this Section 10.2, the Employee
      shall be deemed “Disabled”
(and
      termination of his employment shall be deemed to be due to such “Disability”)
      if an
      independent medical doctor (selected by the Company’s applicable health or
      disability insurer) certifies that the Employee, for a cumulative period of
      more
      than 120 days during any 365-day period, has been disabled in a manner which
      seriously interferes with his ability to perform the essential functions of
      his
      job even with a reasonable accommodation to the extent required by law. Any
      refusal by the Employee to submit to a medical examination for the purpose
      of
      certifying Disability shall be deemed conclusively to constitute evidence of
      the
      Employee’s Disability.

    

    10.3 For
      Convenience of the Company.
      Notwithstanding any other provisions of this Agreement, the Company shall have
      the right, upon ninety (90) days written notice to the Employee, to terminate
      the Employee’s employment at the “Company’s
      Convenience”
(i.e.,
      for reasons other than Cause, resignation for reasons other than “Good
      Reason”
[as
      defined below], death or Disability). For purposes hereof, resignation by the
      Employee for Good Reason also shall be deemed to constitute termination by
      the
      Company at the Company’s Convenience.

    

    10.4 Resignation;
      Good Reason.

    

    (a) The
      Employee shall have the right to resign at any time upon ninety (90) days’
written notice to the Company.

    

    (b) For
      the
      purposes of this Agreement, resignation by the Employee as a result of the
      following shall be deemed to constitute resignation for “Good
      Reason,”
      provided that and on condition that the Employee has not consented to the action
      constituting Good Reason and such resignation occurs within 15 days following
      the occurrence of such action (or, in the case of clause (iv) below, following
      the expiration of the 45-day cure period), and that the Employee is not Disabled
      (or incapacitated in a manner which would, with the passage of time and
      appropriate doctor’s certification, constitute Disability) at the time of
      resignation: (i) a transfer of the Company’s offices, or a transfer of the
      Employee (other than on a temporary basis), to a location which would increase
      the Employee’s commute (by the most direct route) from his residence as of the
      date hereof by more than 25 miles in each direction, or (ii) a material adverse
      change made by the Company to the Employee’s duties, responsibilities and/or
      working conditions such that such duties, responsibilities and/or working
      conditions are inappropriate and not customary for a president and chief
      executive officer of a similarly situated company, or (iii) a material breach
      by
      the Company of this Agreement which breach continues uncured for a period of
      45
      days after receipt by the Company of written notice thereof from the Employee
      specifying the breach.

    

    
      
        
        

      

      
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    11. Effect
      of Termination on Compensation.

    

    11.1 Termination
      for Cause; Resignation.
      In the
      event (i) the Employee’s employment with the Company is terminated by the
      Company for Cause, or (ii) the Employee resigns (for reasons other than Good
      Reason), the Company shall have no further liability to the Employee hereunder,
      whether for salary, benefits, or otherwise, other than for salary and benefits
      accrued, reimbursement of expenses properly incurred, payment for all accrued
      vacation calculated in accordance with the Company’s standard payroll practices,
      in each case through the date of termination or resignation, and any other
      benefits required by applicable law (e.g., COBRA) for which the Employee may
      be
      eligible.

    

    11.2 Death
      or Disability.
      In the
      event the Employee’s employment with the Company terminates as a result of the
      death of the Employee or is terminated by the Company as a result of the
      Disability of the Employee, the Employee or, in the event of his death, his
      surviving spouse (or his estate, if there is no surviving spouse), shall be
      entitled to receive his salary and benefits accrued, reimbursement of expenses
      properly incurred and payment for all accrued vacation calculated in accordance
      with the Company’s standard payroll practices, in each case through the date of
      termination, as well as applicable health, disability or death benefits, if
      any,
      offered by the Company at the time consistent with the policies of the Company
      and subject to the eligibility requirements of such benefits.

    

    11.3. The
      Company’s Convenience or Good Reason.

    

    (a) In
      the
      event the Employee’s employment with the Company is terminated by the Company at
      the Company’s Convenience or by the Employee for Good Reason, then the Employee
      shall be entitled to (i) continue to receive his Salary for the duration of
      the
      Term, and (ii) continue to participate in the Company’s health and benefit plans
      and programs described in Section 6 (but specifically excluding the vacation
      benefit described in Section 7) for the duration of the Term (provided that
      continued participation during such period does not cause a plan, program or
      practice to cease to be qualified under any applicable law or regulation and
      is
      permitted by the plan or program, and that continuation under any such plan,
      program or practice shall be limited to benefits customarily provided by the
      Company to its senior executives during the period of such continuation, and
      provided further that any such plan or program shall be subject to modifications
      applicable to executive-level employees generally). Such compensation,
      allowances and benefits shall continue to be paid or provided at the times
      and
      in the manner consistent with the standard payroll practices of the Company
      for
      its active executive-level employees. In addition, the Employee shall be
      entitled to receive his salary and benefits accrued, reimbursement of expenses
      properly incurred and payment for all accrued vacation calculated in accordance
      with the Company’s standard payroll practices, in each case through the date of
      termination. Except as provided in this Section, no other compensation or
      benefits hereunder shall be payable during the balance of the Term. The
      foregoing benefits are in lieu,
      inter alia,
      of any
      notice obligation on the part of the Company.

    

    
      
        
        

      

      
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    (b) As
      a
      condition to receiving the severance benefits described in clause (a) above,
      the
      Employee shall be required to execute and deliver to the Company, and not to
      have revoked, the written confirmation described in Section 13 and a general
      release of all claims the Employee may have against the Company or Argan and
      their respective subsidiaries and affiliates, and the officers, directors,
      shareholders and agents of each of them, in each case in such form as may be
      reasonably requested by the Company, including without limitation all claims
      for
      wrongful termination, for employment discrimination under Title VII of the
      Civil
      Rights Act of 1964, as amended, and claims under the Americans with Disabilities
      Act of 1990, the Equal Pay Act of 1963, the Age Discrimination in Employment
      Act
      of 1967, the Older Workers Benefit Protection Act of 1990, the Civil Rights
      Act
      of 1866, the Family and Medical Leave Act of 1993, the Civil Rights Act of
      1991,
      the Employee Retirement Income Security Act of 1974 and any equivalent state,
      local and municipal laws, rules and regulations). Notwithstanding the foregoing,
      the Employee shall not be required to release any claims (i) for unpaid
      compensation or other benefits remaining unpaid by the Company at the time
      of
      termination, but may be required to agree upon and acknowledge the amount,
      if
      any, thereof remaining unpaid if such amount is calculable at the time, and
      (ii)
      which the Employee may have in connection with any unexercised Stock Options
      granted pursuant to Section 5.

    

    (c) Upon
      the
      occurrence of any material breach of this Agreement after the effective date
      of
      employment termination (it being understood that, without limitation, any breach
      of Sections 12, 13 or 14 of this Agreement shall be deemed material), the
      Company shall have no further liability to pay severance benefits hereunder
      and
      may, in addition to exercising any other remedies it may have hereunder or
      under
      law, immediately discontinue payment of remaining unpaid severance
      benefits.

    

    11.4 Adjustments
      to Comply with American Jobs Creation Act.
      In the
      event any of the severance payment provisions of this Section should prove
      to be
      inconsistent with the requirements of Section 409A of the Internal Revenue
      Code
      of 1986, as amended, or the regulations thereunder, the Company and the Employee
      shall endeavor to amend those severance payment provisions in order to eliminate
      any inconsistency with Section 409A while ensuring, to the greatest extent
      possible, that the Employee will continue to be entitled to the benefits
      provided under this Agreement without increase in the economic cost to either
      party.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    12. Confidentiality.
      The
      Employee recognizes and acknowledges that certain information possessed by
      the
      Company and its affiliates constitutes valuable, special, and unique proprietary
      information and trade secrets. Accordingly, the Employee shall not, during
      the
      term of his employment with the Company,
      divulge,
      use, furnish, disclose or make available to any person, whether or not a
      competitor of the Company, any confidential or proprietary information
      concerning the assets, business, or affairs of the Company, of any affiliate
      of
      the Company or of its suppliers, customers, licensees or licensors, including,
      without limitation, any information regarding trade secrets and information
      (whether or not constituting trade secrets) concerning sources of supply, costs,
      pricing practices, financial data, business plans, employee information,
      manufacturing processes, product designs, production applications and technical
      processes (hereinafter called “Confidential
      Information”),
      except as may be required by law or as may be required in the ordinary course
      of
      performing his duties hereunder. The foregoing shall not be applicable to any
      information which now is or hereafter shall be in the public domain other than
      through the fault of the Employee. Upon the expiration or termination of the
      Employee’s employment, for any reason, whether voluntary or involuntary and
      whether by the Company or the Employee, or at any time the Company may request,
      the Employee shall (a) surrender to the Company all documents and data of any
      kind (including data in machine-readable form) or any reproductions (in whole
      or
      in part) of any items relating to the Confidential Information, as well as
      information stored in an electronic or digital format, containing or embodying
      Confidential Information including without limitation internal and external
      business forms, manuals, notes, customer lists, and computer files and programs
      (including information stored in any electronic or digital format), and shall
      not make or retain any copy or extract of any of the foregoing, and (b) will
      confirm in writing that (i) no Confidential Information exists on any computers,
      computer storage devices or other electronic media that were at any time within
      the Employee’s control (other than those which remain at, or have been returned
      to, the Company) and (ii) he has not disclosed any Confidential Information
      to
      others outside of the Company in violation of this Section. The Company shall
      have the right at any time at its option to replace the hard drive in the
      Employee’s laptop or other computer supplied by the Company with another
      equivalent hard drive. As used in this Agreement, “affiliate”
means,
      with respect to the Company or any other entity, any person or entity
      controlling, controlled by or under common control with, the Company or such
      other entity, including without limitation Argan, and “control”
for
      such purpose means the possession, directly or indirectly, of the power to
      direct or cause the direction of the management and policies of a person or
      entity, whether through the ownership of voting securities or voting interests,
      by contract or otherwise.

    

    13. Rights
      in the Company’s Property; Inventions.

    

    (a) The
      Employee hereby recognizes the Company’s proprietary rights in the tangible and
      intangible property of the Company and acknowledges that notwithstanding the
      relationship of employment, the Employee will not obtain or acquire, and has
      not
      obtained or acquired, through such employment any personal property rights
      in
      any of the property of the Company, including without limitation any writing,
      communications, manuals, documents, instruments, contracts, agreements, files,
      literature, data, technical information, secrets, formulas, products, methods,
      mailing lists, business models, business plans, procedures, processes, devices,
      apparatuses, trademarks, trade names, trade styles, service marks, logos,
      copyrights, patents, or other matters which are the property of the
      Company.

    

    
      
        
        

      

      
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    (b) The
      Employee agrees that during the Term of his employment with the Company and
      for
      a period of three (3) months thereafter, any and all discoveries, inventions,
      improvements and innovations (including all data and records pertaining thereto)
      (“Inventions”),
      whether or not patentable, copyrightable or reduced to writing, which the
      Employee may have conceived or made, or may conceive or make, either alone
      or in
      conjunction with others and whether or not during working hours or by the use
      of
      the facilities of the Company, which are related or in any way connected with
      the Business of the Company and the Affiliates or any affiliate, are and shall
      be the sole and exclusive property of the Company. The Employee shall promptly
      disclose all such Inventions to the Company, shall execute at the request of
      the
      Company any assignments or other documents the Company may deem necessary to
      protect or perfect its rights therein, and shall assist the Company, at the
      Company’s expense, in obtaining, defending and enforcing the Company’s rights
      therein. The Employee hereby appoints the Company as his attorney-in-fact to
      execute on his behalf any assignments or other documents deemed necessary by
      the
      Company to protect or perfect its rights to any Inventions.

    

    14. Non-Competition,
      Non-Solicitation Covenants.

    

    14.1 Covenant
      Not to Compete.
      At all
      times during the Term and for a period of two years after the Term (the
“Restrictive
      Period”),
      the
      Employee shall not, directly or indirectly, alone or with others, engage in
      any
      competition with, or have any financial or ownership interest in any sole
      proprietorship, corporation, company, partnership, association, venture or
      business or any other person or entity (whether as an employee, officer,
      director, partner, manager, member, agent, security holder, creditor, consultant
      or otherwise) that directly or indirectly (or through any affiliated entity)
      competes with the Business of the Company and the Affiliates; provided that
      such
      provision shall not apply to (i) the Employee’s ownership of Argan stock, (ii)
      the Employee’s ownership of interests in entities which may develop, own and
      operate (but not design or build) power plants, or (iii) the acquisition by
      the
      Employee, solely as an investment, of securities of any issuer that is
      registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934,
      as amended, and that are listed or admitted for trading on any United States
      national securities exchange or that are quoted on the Nasdaq Stock Market,
      or
      any similar system or automated dissemination of quotations of securities prices
      in common use, so long as the Employee does not control, acquire a controlling
      interest in, or become a member of a group that exercises direct or indirect
      control of, more than 5% of any class of capital stock or other indicia of
      ownership of such issuer. For purposes of clause (ii) of this Section 14.1
      above, and for clause (b) of Section 14.2 below, “develop” or “development of”
power plants shall mean the usual and customary actions taken by an owner or
      potential owner of a power plant to obtain licenses, permits or other
      governmental approvals required in order to own and operate a power plant,
      but not the designing or constructing of a power plant. 

     

    
      
        
        

      

      
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    14.2 Non-Solicitation.
      At all
      times during the Restrictive Period, the Employee shall not, directly or
      indirectly, for himself or for any other person, firm, corporation, company,
      partnership, association, venture or business or any other person or entity:
      (a)
      solicit for employment, employ or attempt to employ or enter into any
      contractual arrangement with any employee or former employee (which, for
      purposes of this Section 14.2 shall mean anyone employed during the 24 month
      period ending on the date of termination of the Employee’s employment with the
      Company) of the Company, the Affiliates, or Argan or any affiliate or subsidiary
      of Argan, except Raymond J. Bednarz and Fred Kresse; and/or (b) call on or
      solicit any of the actual or targeted prospective customers or clients, or
      any
      actual distributors or suppliers, of the Company (except in connection with
      the
      Employee’s development, ownership and operation (but not the designing or
      building) of power plants), the Affiliates, or Argan or any affiliate or
      subsidiary of Argan on behalf of himself or on behalf of any person or entity
      in
      connection with any business that competes with the Business of the Company
      and
      the Affiliates, nor shall the Employee make known the names or addresses or
      other contact information of such actual or prospective customers or clients,
      or
      any such actual distributors or suppliers, or any information relating in any
      manner to the Company’s, or the Affiliates’ or Argan’s or any subsidiary or
      affiliate of Argan’s trade or business relationships with such actual or
      prospective customers or clients, or any such actual distributors or suppliers,
      other than in connection with the performance by the Employee of his duties
      under this Agreement.

    

    15. Acknowledgment
      by the Employee.
      The
      Employee acknowledges and confirms that the restrictive covenants contained
      in
      Sections 12, 13 and 14 hereof (including without limitation the length of the
      term of the provisions of Section 14) are required by the Company as an
      inducement to enter into this Agreement, are reasonably necessary to protect
      the
      legitimate business interests of the Company, and are not overbroad, overlong,
      or unfair and are not the result of overreaching, duress or coercion of any
      kind. The Employee further acknowledges that the restrictions contained in
      Sections 12, 13 and 14 hereof are intended to be, and shall be, for the benefit
      of and shall be enforceable by the Company and its successors and assigns.
      The
      Employee expressly agrees that upon any breach or violation of the provisions
      of
      Sections 12, 13, or 14 hereof, the Company shall be entitled, as a matter of
      right, in addition to any other rights or remedies it may have, to: (a)
      temporary and/or permanent injunctive relief in any court of competent
      jurisdiction as described in Section 16 hereof; and (b) such damages as are
      provided at law or in equity. The existence of any claim or cause of action
      against any of the Company, the Affiliates, or Argan or their respective
      subsidiaries or affiliates, whether predicated upon this Agreement or otherwise,
      shall not constitute a defense to the enforcement of any of the restrictions
      contained in Sections 12, 13 or 14 hereof.

    

    16. Enforcement;
      Modification.

    

    16.1 Injunction.
      It is
      recognized and hereby acknowledged by the parties hereto that a breach by the
      Employee of any of the covenants contained in Sections 12, 13 or 14 of this
      Agreement will cause irreparable harm and damage to the Company, the monetary
      amount of which may be virtually impossible to ascertain. As a result, the
      Employee recognizes and hereby acknowledges that the Company shall be entitled
      to an injunction from any court of competent jurisdiction enjoining and
      restraining any violation of any or all of the covenants contained in Sections
      12, 13 or 14 of this Agreement by the Employee or any of his affiliates,
      associates, partners or agents, either directly or indirectly, and that such
      right to injunction shall be cumulative and in addition to whatever other
      remedies the Company may possess.

    

    
      
        
        

      

      
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    16.2 Reformation
      by Court.
      In the
      event that a court of competent jurisdiction shall determine that any provision
      of Sections 12, 13 or 14 is invalid or more restrictive than permitted under
      the
      governing law of such jurisdiction, then only as to enforcement of Sections
      12,
      13 or 14 within the jurisdiction of such court, such provision shall be
      interpreted or reformed and enforced as if it provided for the maximum
      restriction permitted under such governing law.

    

    16.3 Extension
      of Time.
      If the
      Employee shall be in violation of any provision of Sections 12, 13 or 14, then
      each time limitation set forth in Sections 12, 13 or 14 shall be extended for
      a
      period of time equal to the period of time during which such violation or
      violations occur. If the Company seeks injunctive relief from such violation
      in
      any court, then the covenants set forth in Sections 12, 13 and 14 shall be
      extended for a period of time equal to the pendency of such proceeding including
      all appeals by either of the Sellers.

    

    16.4 Survival.
      The
      provisions of Sections 12, 13 and 14 shall survive the termination of this
      Agreement.

    

    16.5 Purchase
      Agreement.
      Notwithstanding anything to the contrary contained in this Agreement, nothing
      herein shall limit or otherwise affect the restrictive covenants applicable
      to
      the Employee, as Seller, under and pursuant to the terms, covenants and
      conditions of the Purchase Agreement, including without limitation the covenant
      not to compete for a period of five years from the Closing Date (as defined
      in
      the Purchase Agreement), all of which such restrictive covenants shall remain
      in
      full force and effect in accordance with the terms and conditions of the
      Purchase Agreement.

    

    17. Assignment.
      The
      Company shall have the right to assign this Agreement and its rights and
      obligations hereunder in whole, but not in part, to any corporation or other
      entity with or into which the Company may hereafter merge or consolidate or
      to
      which the Company may transfer all or substantially all of its assets, if in
      any
      such case said corporation or other entity shall by operation of law or
      expressly in writing assume all obligations of the Company hereunder as fully
      as
      if it had been originally made a party hereto, but may not otherwise assign
      this
      Agreement or its rights and obligations hereunder. The Employee may not assign
      or transfer this Agreement or any rights or obligations hereunder.

    

    18. Benefits;
      Binding Effect.
      This
      Agreement shall be for the benefit of and binding upon the parties hereto and
      their respective heirs, personal representatives, legal representatives,
      successors and, where permitted and applicable, assigns, including, without
      limitation, any successor to the Company, whether by merger, consolidation,
      sale
      of stock, sale of assets or otherwise.

    

    
      
        
        

      

      
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    19. Severability.
      The
      invalidity of any one or more of the words, phrases, sentences, clauses,
      provisions, sections or articles contained in this Agreement shall not affect
      the enforceability of the remaining portions of this Agreement or any part
      thereof, all of which are inserted conditionally on their being valid in law,
      and, in the event that any one or more of the words, phrases, sentences,
      clauses, provisions, sections or articles contained in this Agreement shall
      be
      declared invalid, this Agreement shall be construed as if such invalid word
      or
      words, phrase or phrases, sentence or sentences, clause or clauses, provisions
      or provisions, section or sections or article or articles had not been inserted.
      If such invalidity is caused by length of time or size of area, or both, the
      otherwise invalid provision will be considered to be reduced to a period or
      area
      which would cure such invalidity.

    

    20. Waivers.
      The
      waiver by either party hereto of a breach or violation of any term or provision
      of this Agreement shall not operate nor be construed as a waiver of any
      subsequent breach or violation.

    

    21. Damages;
      Attorneys Fees.
      Nothing
      contained herein shall be construed to prevent the Company or the Employee
      from
      seeking and recovering from the other damages sustained by either or both of
      them as a result of its or his breach of any term or provision of this
      Agreement. In the event that either party hereto seeks to collect any damages
      resulting from, or the injunction of any action constituting, a breach of any
      of
      the terms or provisions of this Agreement, then the party found to be at fault
      shall pay all reasonable costs and attorneys’ fees of the other
      party.

    

    22. Section
      Headings.
      The
      article, section and paragraph headings contained in this Agreement are for
      reference purposes only, and shall not affect in any way the meaning or
      interpretation of this Agreement.

    

    23. No
      Third Party Beneficiary.
      Nothing
      expressed or implied in this Agreement is intended, or shall be construed,
      to
      confer upon or give any person other than the Company, and the parties hereto
      and their respective heirs, personal representatives, legal representatives,
      successors and permitted assigns, any rights or remedies under or by reason
      of
      this Agreement.

    

    24. Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original but all of which together shall constitute one and
      the
      same.

    

    25. Governing
      Law.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      internal laws of the State of Connecticut, without regard to principles of
      conflict of laws.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    26. Jurisdiction
      and Venue.
      Each
      of
      the parties irrevocably and unconditionally: (a) agrees that any suit, action
      or
      legal proceeding arising out of or relating to this Agreement which is expressly
      permitted by the terms of this Agreement to be brought in a court of law, shall
      be brought in the Superior Court of the State of Connecticut for the Judicial
      District of Hartford or in the United States District Court for the District
      of
      Connecticut; (b) consents to the jurisdiction of each such court in any such
      suit, action or proceeding; (c) waives any objection which it or he may have
      to
      the laying of venue of any such suit, action or proceeding in any of such
      courts; and (d) agrees that service of any court papers may be effected on
      such
      party by mail, as provided in this Agreement, or in such other manner as may
      be
      provided under applicable laws or court rules in such courts.

    

    27. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties hereto with
      respect to the subject matter hereof and, upon its effectiveness, shall
      supersede all prior agreements, understandings and arrangements, both oral
      and
      written, between the Employee and the Company (or any of its affiliates) with
      respect to such subject matter. This Agreement may not be modified in any way
      unless by a written instrument signed by both the Company and the
      Employee.

    

    28. Notices.
      All
      notices required or permitted to be given hereunder shall be in writing and
      shall be personally delivered by courier, sent by registered or certified mail,
      return receipt requested, sent by overnight courier, or sent by confirmed
      facsimile transmission addressed as set forth herein. Notices personally
      delivered, sent by facsimile or sent by overnight courier shall be deemed given
      on the date of delivery and notices mailed in accordance with the foregoing
      shall be deemed given upon the earlier of receipt by the addressee, as evidenced
      by the return receipt thereof, or three days after deposit in the U.S. mail.
      Notice shall be sent: (a) if to the Company, addressed to the Company, One
      Church Street, Suite 401, Rockville, Maryland 20850, Attention: Arthur F.
      Trudel; and (b) if to the Employee, to his address as reflected on the payroll
      records of the Company, or to such other address as either party shall request
      by notice to the other in accordance with this provision.

    

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    IN
      WITNESS WHEREOF,
      each of
      the undersigned has executed, or has caused its duly authorized representative
      to execute, this Agreement as of the date first above written.

     

    
      	 	 	 
	 	
              THE
                COMPANY:

               

              GEMMA POWER SYSTEMS, LLC
                

            
	 
 	 
 	
 
	 	By:  	/s/ William
              F. Griffin, Jr.
	 	 	
              
Name:
              William F. Griffin, Jr.
Title: Manager
	 	 	 
	 	THE
              EMPLOYEE:
	 	 	
               

               

            
	 	 	/s/ William F. Griffin,
              Jr.
	 	
              
                

              

              WILLIAM F. GRIFFIN, JR
                

            

    

    
    

    
      
        
        

      

      
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