Document:

exv10w3

 

Exhibit 10.3

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (herein “Agreement”) is entered into September 21, 2006, by and
between JMAR Technologies, Inc. (“JMAR”) and C. Neil Beer (“Executive”).

Recitals

     WHEREAS, JMAR desires to expand its advanced photonics and x-ray technologies to create high
value products for research, defense, and commercial industrial markets, with strong emphasis on
sub-micron system technology;

     WHEREAS, JMAR hired Executive in April, 2006 and desires now to enter into an Employment
Agreement with Executive; and

WHEREAS, Executive desires to enter into an Employment Agreement with JMAR;

     NOW, THEREFORE, JMAR and Executive agree as follows:

	1.	 	Employment/Title/Responsibilities. The Company hereby employs Executive, and
Executive hereby accepts such employment as President and Chief Executive Officer of the
Company. Executive shall do and perform such other services, acts or things as shall be
required of him from time to time by the Company, and shall comply with the directives,
policies, procedures and requirements issued or established from time to time by the Company.
Executive shall at all times during his employment by the Company (unless otherwise agreed in
writing by the Company) devote his entire productive time, energies, ability and attention to
the business of the Company and perform faithfully and diligently such duties and
responsibilities to the best of his abilities; provided, however, that Executive shall be
entitled to vacation time and time off for sickness and disability in accordance with the
policies of the Company in effect from time to time. Executive shall initially accrue
vacation at the rate of four weeks per annum. After reaching five years of service, Executive
shall accrue one additional day of vacation for each additional year of service up to a
maximum of five weeks per year.
	 
	2.	 	Compensation/Benefits.

2.1 As compensation for the services provided by Executive under this Agreement, JMAR will
pay him an annual salary of $250,000 (base pay), payable in accordance with JMAR’s usual
payroll procedures. Executive’s base pay shall be reviewed at least annually by the Board,
and in the Board’s sole discretion, may be increased at any time.

2.2 Executive shall have the right to participate in such pension, profit sharing, bonus,
group insurance or similar employee benefit plans established by the Company for the benefit
of senior management of the Company, for so long as

 

 

any such plan is maintained in effect for the benefit of such class, with Executive’s
participation or share therein being determined by the provisions and requirements of the
respective plan. A summary of the Company’s benefits plans has been provided to Executive.

2.3 All payments from the Company to Executive pursuant to this Agreement, including salary
or other amounts paid pursuant to Sections 2.1 above or otherwise, shall be subject to such
payroll tax, withholding, social security and other deductions as may be required by any
Federal, state or local law, rule or regulation, which the Company may reasonably deem to be
applicable thereto.

2.4 The Company shall pay or reimburse Executive for all reasonable expenses incurred by
Executive on the business of the Company and for the promotion of its business, provided
such expenses are pre-approved in writing by the Company or are consistent with the written
policies and guidelines approved by the Company and in effect from time to time.

2.5 The Company shall pay or reimburse Executive for all reasonable and allowable expenses
incurred by the Executive in relocating him and his family from Colorado Springs, CO to San
Diego, CA. These expenses include the cost of commissions, fees, escrow and closing costs
involved with the purchase of a residence in the San Diego area, and transport of
automobiles, household goods, and travel. In addition, in the event that the Executive’s
Colorado residence does not sell in a timely manner, in order to expedite the Executive’s
purchase of a residence in San Diego and to further facilitate the performance of
Executive’s duties, the Compensation Committee of the Board of Directors of the Company
authorizes the payment of $65,000 in additional compensation to Executive to defray the
additional living costs and associated expenses of maintaining two houses.

2.6 Beginning October 12, 2006, Executive will be eligible for an annual bonus based upon
achievement of reasonable goals specified by the Board.

3. Initial Stock Option Grant. In connection with the commencement of Executive’s
employment in April, 2006, JMAR granted him Non-Qualified Stock Options (NQSO’s) to purchase
300,000 shares of JMAR common stock. The terms of those options are contained in JMAR’s
standard stock option agreement executed with Executive. The Board will review Executive’s
performance from time-to-time to consider further grant of options.

	4.	 	Employment at Will; Salary Continuation Payments.

4.1 Executive and the Company understand and agree that Executive’s employment will be
“at-will” and may be terminated at any time, for any reason, with or without cause, by
either Executive or JMAR. Executive and the Company understand and agree that nothing in the
Company’s Employment Handbooks or the Company’s other policies is intended to be, and
nothing in them should be construed to be, a limitation on the right to terminate the
employment relationship at any time for any reason.

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4.2 Section 4 of this Agreement contains the entire agreement between the parties as to the
term and duration of the employment. It supersedes any and all other agreements, either
oral or in writing between the parties hereto with respect to Executive’s term of employment
and the termination thereof. Each party to this Agreement acknowledges that no
representations, inducements, promises, or agreements, oral or otherwise, have been made by
any party, or anyone acting on behalf of any party, which are not embodied herein, and
acknowledges that no other agreement, statement, or promise not contained in this Agreement
shall be valid or binding. Section 4 of this Agreement may not be modified or amended by
oral agreement, or course of conduct, but only by an agreement in writing signed by an
officer of the Company and Executive.

4.3 In the event Executive’s employment terminates for any reason other than death,
disability, a termination upon a Change of Control, a voluntary termination not for Good
Reason, or a termination for Cause, Executive shall receive six (6) monthly payments each
equal in amount to one-twelfth of the sum of the full amount of his then Base Salary, minus
standard withholdings and deductions.

4.4 In the event of Executive’s termination upon a Change of Control, Executive shall,
within seven (7) days of such termination, receive one lump sum payment equivalent to twelve
(12) months of his then Base Salary, minus standard withholdings and deductions.

	5.	 	Confidential Information. Concurrently herewith, Executive shall enter into an
Employee Confidentiality and Inventions Agreement with JMAR in the form provided to Executive.
	 
	6.	 	No Violation of Other Contracts. Executive represents and warrants that the
execution, delivery and performance of this Agreement by Executive does not and will not
result in a breach of or violation of, or constitute a default under, any agreement to which
Executive is a party or by which Executive is bound.
	 
	7.	 	No Conflicts of Interest. Executive does not now, and during the term of his
employment, will not have any financial interest, whether by stock ownership or otherwise, in
any entity which is a supplier, customer or competitor of the Company; provided, however, that
the foregoing shall not prohibit the ownership of securities of corporations which are listed
on a national securities exchange or traded in the national over-the-counter market in an
amount which shall not exceed 1% of the outstanding shares of any such corporation.
	 
	8.	 	Compliance with JMAR’s Rules. Executive agrees to comply with all of the rules,
regulations and standard practices of JMAR as in effect from time to time. JMAR will provide
Executive with all such current rules, regulations and standard practices and all future
updates.

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9. Definitions

9.1 Good Reason: For purposes of this Agreement, “Good Reason” means that any of
the following are undertaken without Executive’s express written consent: (a) the assignment
to Executive of any duties or responsibilities which result in any diminution or adverse
change of Executive’s position, status or circumstances of employment; (b) a reduction by
the Company in Executive’s Base Salary; (c) the taking of any action by the Company which
would adversely affect Executive’s participation in, or reduce Executive’s benefits under,
the Company’s benefit plans (including equity benefits) as of the time this Agreement is
executed, except to the extent the benefits of all other executive officers of the Company
are similarly reduced; (d) a relocation of Executive’s principal office to a location
outside of San Diego County, California; (e) any breach by the Company of any material
provision of this Agreement; or (f) any failure by the Company to obtain the assumption of
this Agreement by any successor or assign of the Company.

9.2 Cause: For the purposes of this Agreement, “Cause” means: (i) an intentional
action or intentional failure to act by Executive which was performed in bad faith and to
the material detriment of the Company; (ii) Executive intentionally refuses or intentionally
fails to act in accordance with any lawful and proper direction or order of the Board; (iii)
Executive willfully and habitually neglects the duties of employment; or (iv) Executive
violates Sections 5, 7, 8 of this Agreement; provided, however, that in the event that any
of the foregoing events under clauses (i), (ii), (iii), (iv) above is capable of being
cured, the Company shall provide written notice to Executive describing the nature of such
event and Executive shall thereafter have ten (10) business days to cure such event.

9.3 Change of Control: For purposes of this Agreement, a Change of Control means:
(a) any sale, merger, consolidation, tender offer or similar acquisition of shares, as a
result of which at least a majority of the voting power of the Company is not held, directly
or indirectly, by the persons or entities who held the Company’s securities with voting
power before such transaction, or (b) a sale or other disposition of all or a substantial
part of the Company’s assets.

	10.	 	General Provisions.

10.1 Assignment. Neither the rights nor obligations under this Agreement may be
assigned, transferred, pledged or hypothecated by any party hereto, except that this
Agreement shall be binding upon and inure to the benefit of any successor of JMAR.

10.2 Notices. Any notice required or permitted to be given under this Agreement
shall be deemed to have been duly given if in writing and if personally delivered or sent by
registered or certified mail, return receipt requested, with postage prepaid:

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if to JMAR:

JMAR Technologies, Inc.

10905 Technology Place

San Diego, CA 92127

Attn: Chief Financial Officer

If to the Employee:

Dr. C. Neil Beer

2510 Kinderhook Lane

Colorado Springs, CO 80919

Any party may change the address to which notices are to be sent to it or him by giving ten
days’ written notice of such change of address to the other party in the manner above
provided for giving notice. Notices will be considered delivered on the date of personal
delivery or on the date of deposit in the United States mail in the manner above provided
for giving notice by mail.

10.3 Arbitration. Any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, shall be settled by arbitration in San Diego County,
California, in accordance with the Commercial Arbitration Rules of the American Arbitration
Association, and judgment upon the award of the arbitrator(s) shall be entered in any court
with appropriate jurisdiction as the final binding judgment. The provisions of California
Code of Civil Procedure Section 1283.05 (related to the availability of certain discovery
procedures) are hereby incorporated into and made applicable to this Agreement. In addition
to any other relief as may be granted, the prevailing party shall be entitled to reasonable
attorneys’ fees in such arbitration, with the amount thereof to be determined by the
arbitrator or the court.

10.4 Counterparts. This Agreement may be executed in several counterparts, and all
counterparts so executed shall constitute one agreement binding on all of the parties hereto
notwithstanding that all parties are not signatory to the original or same counterpart.

10.5 Entire Agreement. This Agreement constitutes the entire agreement and
understanding between Executive and JMAR with respect to the employment of Executive, and
supersedes all other agreements, written or oral, regarding such employment. This Agreement
may be altered or amended only by a written instrument executed by each of the parties
hereto.

10.6 Severability. If any provision of this Agreement or the application thereof to
any person or circumstance shall be invalid or unenforceable to any extent, the remainder of
this Agreement and the application of such provisions to other persons or circumstances
shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

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10.7 Interpretation of Agreement. In the event of any arbitration or other dispute,
neither this Agreement nor any provision hereof shall be interpreted for or against any
party on the basis said party or its attorney drafted the Agreement or provision in
question.

10.8 Waiver. The waiver by any party hereto of a breach of any of the provisions of
this Agreement by the other party shall not operate or be construed as a waiver of any
subsequent breach hereof by such party.

10.9 California Law. This Agreement shall be governed by and considered in
accordance with the laws of the State of California.

10.10 Headings. The subject headings of the Sections of this Agreement are included
for the purposes of convenience only and shall not affect the construction or interpretation
of any term or provision hereof.

	 	 	 	 	 	 	 
	AGREED

	 	TO AND ACCEPTED BY:	 	 	 	 
	 
	 	 	 	 	 	 
	Employer:	 	Employee:	 	 
	JMAR TECHNOLOGIES, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Charles A Dickinson
	 	/s/ C. Neil Beer	 	 
	 

	 	Charles A. Dickinson,
	 	C. Neil Beer, PhD	 	 
	 

	 	Chairman of the Board of Directors	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Barry Ressler	 	 	 	 
	 

	 	Barry Ressler, Compensation Committee	 	 	 	 

6exv10w6

 

Exhibit 10.6

AMENDED AND RESTATED PROMISSORY NOTE

      

			
	$280,000
	 	Louisville, Kentucky
	 
	 	August 14, 2006

          FOR VALUE RECEIVED, the undersigned New Era Studios, Inc. (the “Obligor”) promises to pay to
the order of the Edward Brian O’Dwyer Separate Property Trust (the “Lender”), its successors and
assigns at 400 West Market Street, Suite 1800, Louisville, Kentucky 40202 Attn: Alex P. (Mike)
Herrington, Jr. on September 23, 2006 or at such other place as the Lender may from time to time
designate in writing, the principal sum of Two Hundred Eighty Thousand Dollars ($280,000), in
lawful money of the United States, together with interest on the outstanding principal thereof at
the rate (the “Interest Rate”) equal to Seven Percent (7%) per annum. If an “Event of Default”
(as hereinafter defined) shall exist, the rate of interest shall at the option of the Lender
increase to a rate (the “Default Rate”) equal to Five Percent (5%) in excess of the Interest Rate
and shall continue at such rate during the period such Event of Default shall exist.

     The indebtedness evidenced by the Promissory Note, dated June 23, 2006, from the Obligor to
the Lender, which this Note amends and restates, was incurred in connection with the repurchase and
retirement of 15,000,000 shares of the common stock of Silvergraph International, Inc. (f/k/a
Pinecrest Services, Inc.), of which the Obligor is a wholly-owned subsidiary.

          Principal and interest shall be payable as follows: Interest and principal shall be due and
payable on September 23, 2006 in full.

          All interest shall be computed based on the actual number of days in the month and an assumed
year of three hundred and sixty (360) days.

          This Note may be prepaid in whole or in part without penalty.

          At the election of the Lender, and without notice, the outstanding principal balance hereof,
together with accrued interest hereon shall become at once due and payable at the place herein
provided for payment upon the occurrence of any Event of Default. For purposes of this Note,
“Event of Default” shall be the death or incapacity of James R. Simpson.

          The undersigned:

          (a) agrees to remain and continue bound for the payment of the principal of and interest on
this Note notwithstanding any extension or extensions of the time of the payment of said principal
or interest, or any change or changes in the amount or amounts to be paid under and by virtue of
the obligation to pay provided for in this Note, and waive all and every kind of notice of such
extension or extensions, change or changes, and agree that same may be made

 

 

without the joinder of any such persons;

          (b) waives presentment, notice of dishonor, protest, notice of protest and diligence in
collection, and all exemptions, whether homestead or otherwise, to which the Obligor may now or
hereafter be entitled under the laws of the Commonwealth of Kentucky or any other state;

          (c) agrees, upon default, to pay all costs of collecting, securing or attempting to collect,
or secure this Note, including a reasonable attorney’s fee, whether same be collected or secured by
suit or otherwise, providing the collection of such costs and fees are permitted by applicable law.

          None of the terms and provisions contained in this Note or any other document or instrument
hereafter securing same, or any other document or instrument hereafter securing the indebtedness
evidenced hereby or related hereto shall ever be construed to create a contract for the use,
forbearance or detention of money requiring payment of interest at a rate in excess of the maximum
interest rate permitted to be charged by the laws of the Commonwealth of Kentucky. The Obligor
shall not ever be required to pay interest on this Note at a rate in excess of the maximum interest
rate that may be lawfully charged under the laws of the Commonwealth of Kentucky, and the
provisions of this paragraph shall control over all other provisions hereof and of any other
instrument executed in connection herewith or executed to secure the indebtedness evidenced hereby
which may be in apparent conflict with this paragraph. In the event the Lender shall collect
monies which are deemed to constitute payments in the nature of interest which would otherwise
increase the effective interest rate on this Note to a rate in excess of that permitted to be
charged by the laws of the Commonwealth of Kentucky, all such sums deemed to constitute interest in
excess of the maximum rate shall be refunded to the Obligor in cash and the Obligor hereby agrees
to accept such refund.

          If any provision, or portion thereof, of this Note, or the application thereof to any persons
or circumstances shall to any extent be invalid or unenforceable, the remainder of this Note, or
the application of such provision, or portion thereof, to any other person or circumstances shall
not be affected thereby, and each provision of this Note shall be valid and enforceable to the
fullest extent permitted by law. In the event of any inconsistency between the terms hereof and
those of any instrument securing payment hereof, the Lender shall have the sole option to elect
which of such provisions shall govern.

     WAIVER OF TRIAL BY JURY; ARBITRATION. THE OBLIGOR HEREBY AGREES NOT TO ELECT A TRIAL
BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE
EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS NOTE, OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH INCLUDING, BUT NOT LIMITED TO, THOSE
RELATING TO (A) ALLEGATIONS THAT A PARTNERSHIP EXISTS BETWEEN THE LENDER AND THE OBLIGOR; (B)
USURY OR PENALTIES OR DAMAGES THEREFOR; (C) ALLEGATIONS OF UNCONSCIONABLE ACTS, DECEPTIVE TRADE
PRACTICE, LACK OF GOOD FAITH OR FAIR DEALING, LACK OF COMMERCIAL REASONABLENESS, OR SPECIAL
RELATIONSHIPS (SUCH AS FIDUCIARY, TRUST OR CONFIDENTIAL RELATIONSHIP); (D)

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ALLEGATIONS OF DOMINION, CONTROL, ALTER EGO, INSTRUMENTALITY, FRAUD, MISREPRESENTATION, DURESS,
COERCION, UNDUE INFLUENCE, INTERFERENCE OR NEGLIGENCE; (E) ALLEGATIONS OF TORTIOUS INTERFERENCE
WITH PRESENT OR PROSPECTIVE BUSINESS RELATIONSHIPS OR OF ANTITRUST; OR (F) SLANDER, LIBEL OR DAMAGE
TO REPUTATION. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY THE
OBLIGOR, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE
RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF
THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE OBLIGOR.

     IT IS PROVIDED, HOWEVER, THAT THE OBLIGOR AND LENDER AGREE THAT ALL DISPUTES, CLAIMS AND
CONTROVERSIES BETWEEN THEM WHETHER INDIVIDUAL, JOINT, OR CLASS IN NATURE, ARISING FROM THIS NOTE OR
OTHERWISE, INCLUDING WITHOUT LIMITATION CONTRACT AND TORT DISPUTE, SHALL BE ARBITRATED PURSUANT TO
THE CODE OF PROCEDURE OF THE NATIONAL ARBITRATION FORUM IN EFFECT AT THE TIME THE CLAIM IS FILED,
UPON REQUEST OF EITHER PARTY. ANY DISPUTES, CLAIMS, OR CONTROVERSIES CONCERNING THE LAWFULNESS OR
REASONABLENESS OF ANY ACT, OR EXERCISE OF ANY RIGHT, SHALL ALSO BE ARBITRATED PROVIDED HOWEVER THAT
NO ARBITRATOR SHALL HAVE THE RIGHT OR THE POWER TO ENJOIN OR RESTRAIN ANY ACT OF ANY PARTY.
JUDGMENT UPON ANY AWARD RENDERED BY ANY ARBITRATOR MAY BE ENTERED IN ANY COURT HAVING JURISDICTION.
NOTHING IN THIS PROVISION SHALL PRECLUDE ANY PARTY FROM SEEKING EQUITABLE RELIEF FROM A COURT OF
COMPETENT JURISDICTION. THE STATUTE OF LIMITATIONS, ESTOPPEL, WAIVER, LACHES, AND SIMILAR
DOCTRINES WHICH WOULD OTHERWISE BE APPLICABLE IN AN ACTION BROUGHT BY A PARTY SHALL BE APPLICABLE
IN ANY ARBITRATION PROCEEDING, AND THE COMMENCEMENT OF AN ARBITRATION PROCEEDING SHALL BE DEEMED
THE COMMENCEMENT OF AN ACTION FOR THESE PURPOSES. THE FEDERAL ARBITRATION ACT SHALL APPLY TO THE
CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT OF THIS ARBITRATION PROVISION.

          This Note shall be governed by, and construed in accordance with, the laws of the Commonwealth
of Kentucky.

          IN WITNESS WHEREOF, the Obligor has caused this instrument to be effective as of the date
first above written.

	 	 	 	 	 	 	 
	 	 	NEW ERA STUDIOS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

James R. Simpson
	 	 
	 

	 	 	 	Chief Executive Officer	 	 

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