Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.3

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this “Agreement”) is made and entered into as of April 11,
2007 by and between JMAR Technologies, Inc., a Delaware corporation (the “Company”), and Laurus
Master Fund, Ltd. (the “Purchaser”).

This Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date
hereof, by and among the Purchaser, the Company (as amended, modified or supplemented from time to
time, the “Purchase Agreement”), and pursuant to the Warrants referred to therein.

The Company and the Purchaser hereby agree as follows:

1. Definitions. Capitalized terms used and not otherwise defined herein that are defined in
the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

“Commission” means the Securities and Exchange Commission.

“Common Stock” means shares of the Company’s common stock, par value no par value per share.

“Effectiveness Date” means, (i) with respect to the Registration Statement required to be
filed in connection with the Warrants issued on the date hereof, a date no later than ninety (90)
days following such Filing Date and (ii) with respect to each additional Registration Statement
required to be filed hereunder (if any), a date no later than thirty (30) days following the
applicable Filing Date.

“Effectiveness Period” has the meaning set forth in Section 2(a).

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor
statute.

“Filing Date” means, with respect to (1) the Registration Statement required to be filed in
connection with the shares of Common Stock issuable to the Holder upon exercise of a Warrant, the
date which is six months after the issuance of such Warrant, and (2) the Registration Statement
required to be filed in connection with the shares of Common Stock issuable to the Holder as a
result of adjustments to the Exercise Price made pursuant to Section 4 of the Warrant or otherwise,
thirty (30) days after the occurrence of such event or the date of the adjustment of the Exercise
Price.

“Holder” or “Holders” means the Purchaser or any of its affiliates or transferees to the
extent any of them hold Registrable Securities, other then those purchasing Registrable Securities
in a market transaction.

“Indemnified Party” has the meaning set forth in Section 5(c).

 

 

 

“Indemnifying Party” has the meaning set forth in Section 5(c).

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

“Prospectus” means the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a prospectus filed
as part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by such Registration
Statement, and all other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

“Purchase Agreement” has the meaning given to such term in the Preamble hereto.

“Registrable Securities” means the shares of Common Stock issuable upon exercise of the
Warrants.

“Registration Statement” means each registration statement required to be filed hereunder,
including the Prospectus therein, amendments and supplements to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in such registration statement.

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

“Securities Act” means the Securities Act of 1933, as amended, and any successor statute.

“Trading Market” means any of the NASD Over The Counter Bulletin Board, NASDAQ Capital Market,
the NASDAQ National Markets System, the American Stock Exchange or the New York Stock Exchange

“Warrants” means the Common Stock purchase warrants issued in connection with the Purchase
Agreement, whether on the date thereof or thereafter.

 

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2. Registration.

(a) On or prior to each Filing Date, the Company shall prepare and file with the Commission a
Registration Statement covering the Registrable Securities for a selling stockholder resale
offering to be made on a continuous basis pursuant to Rule 415. Each Registration Statement shall
be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable
Securities on Form S-3, in which case such registration shall be on another appropriate form in
accordance herewith). The Company shall cause each Registration Statement to become effective and
remain effective as provided herein. The Company shall use its reasonable commercial efforts to
cause each Registration Statement to be declared effective under the Securities Act as promptly as
possible after the filing thereof, but in any event no later than the Effectiveness Date. The
Company shall use its reasonable commercial efforts to keep each Registration Statement
continuously effective under the Securities Act until the date which is the earlier date of when
(i) all Registrable Securities covered by such Registration Statement have been sold or (ii) all
Registrable Securities covered by such Registration Statement may be sold immediately without
registration under the Securities Act and without volume restrictions pursuant to Rule 144(k), as
determined by the counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company’s transfer agent and the affected Holders (each, an
“Effectiveness Period”).

(b) If: (i) the Registration Statement is not filed on or prior to the Filing Date; (ii) the
Registration Statement is not declared effective by the Commission by the Effectiveness Date; (iii)
after the Registration Statement is filed with and declared effective by the Commission, the
Registration Statement ceases to be effective (by suspension or otherwise) as to all Registrable
Securities to which it is required to relate at any time prior to the expiration of the
Effectiveness Period (without being succeeded immediately by an additional registration statement
filed and declared effective) for a period of time which shall exceed 30 days in the aggregate per
year or more than 20 consecutive calendar days (defined as a period of 365 days commencing on the
date the Registration Statement is declared effective); or (iv) the Common Stock is not listed or
quoted, or is suspended from trading on any Trading Market for a period of three (3) consecutive
Trading Days (provided the Company shall not have been able to cure such trading suspension within
30 days of the notice thereof or list the Common Stock on another Trading Market); (any such
failure or breach being referred to as an “Event,” and for purposes of clause (i) or (ii) the date
on which such Event occurs, or for purposes of clause (iii) the date which such 30 day or 20
consecutive day period (as the case may be) is exceeded, or for purposes of clause (iv) the date on
which such three (3) Trading Day period is exceeded, being referred to as “Event Date”), then until
the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as
liquidated damages and not as a penalty, equal to1.0% for each thirty (30) day period (prorated for
partial periods) on a daily basis of the original principal amount of the Note. While such Event
continues, such liquidated damages shall be paid not less often than each thirty (30) days. Any
unpaid liquidated damages as of the date when an Event has been cured by the Company shall be paid
within three (3) days following the date on which such Event has been cured by the Company.

 

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(c) Within three business days of the Effectiveness Date, the Company shall cause its counsel
to issue a blanket opinion in the form attached hereto as Exhibit A, to the
transfer agent stating that the shares are subject to an effective registration statement and
can be reissued free of restrictive legend upon notice of a sale by the Purchaser and confirmation
by the Purchaser that it has complied with the prospectus delivery requirements, provided that the
Company has not advised the transfer agent orally or in writing that the opinion has been
withdrawn. Copies of the blanket opinion required by this Section 2(c) shall be delivered to the
Purchaser within the time frame set forth above.

3. Registration Procedures. If and whenever the Company is required by the provisions hereof
to effect the registration of any Registrable Securities under the Securities Act, the Company
will, as expeditiously as possible:

(a) prepare and file with the Commission a Registration Statement with respect to such
Registrable Securities, respond as promptly as possible to any comments received from the
Commission, and use its best efforts to cause such Registration Statement to become and remain
effective for the Effectiveness Period with respect thereto, and promptly provide to the Purchaser
copies of all filings and Commission letters of comment relating thereto;

(b) prepare and file with the Commission such amendments and supplements to such Registration
Statement and the Prospectus used in connection therewith as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all Registrable Securities
covered by such Registration Statement and to keep such Registration Statement effective until the
expiration of the Effectiveness Period applicable to such Registration Statement;

(c) furnish to the Purchaser such number of copies of the Registration Statement and the
Prospectus included therein (including each preliminary Prospectus) as the Purchaser reasonably may
request to facilitate the public sale or disposition of the Registrable Securities covered by such
Registration Statement;

(d) use its best efforts to register or qualify the Purchaser’s Registrable Securities covered
by such Registration Statement under the securities or “blue sky” laws of such jurisdictions within
the United States as the Purchaser may reasonably request, provided, however, that the Company
shall not for any such purpose be required to qualify generally to transact business as a foreign
corporation in any jurisdiction where it is not so qualified or to consent to general service of
process in any such jurisdiction;

(e) list the Registrable Securities covered by such Registration Statement with any securities
exchange on which the Common Stock of the Company is then listed;

(f) immediately notify the Purchaser at any time when a Prospectus relating thereto is
required to be delivered under the Securities Act, of the happening of any event of which the
Company has knowledge as a result of which the Prospectus contained in such Registration Statement,
as then in effect, includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing; and

 

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(g) make available for inspection by the Purchaser and any attorney, accountant or other agent
retained by the Purchaser, all publicly available, non-confidential
financial and other records, pertinent corporate documents and properties of the Company, and
cause the Company’s officers, directors and employees to supply all publicly available,
non-confidential information reasonably requested by the attorney, accountant or agent of the
Purchaser.

4. Registration Expenses. All expenses relating to the Company’s compliance with Sections 2
and 3 hereof, including, without limitation, all registration and filing fees, printing expenses,
fees and disbursements of counsel and independent public accountants for the Company, fees and
expenses (including reasonable counsel fees) incurred in connection with complying with state
securities or “blue sky” laws, fees of the NASD, transfer taxes, fees of transfer agents and
registrars, fees of, and disbursements incurred by, one counsel for the Holders are called
“Registration Expenses”. All selling commissions applicable to the sale of Registrable Securities,
including any fees and disbursements of any special counsel to the Holders beyond those included in
Registration Expenses, are called “Selling Expenses.” The Company shall only be responsible for
all Registration Expenses.

5. Indemnification.

(a) In the event of a registration of any Registrable Securities under the Securities Act
pursuant to this Agreement, the Company will indemnify and hold harmless each Holder, and its
officers, directors and each other person, if any, who controls such Holder within the meaning of
the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which
such Holder, or such persons may become subject under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact contained in any
Registration Statement under which such Registrable Securities were registered under the Securities
Act pursuant to this Agreement, any preliminary Prospectus or final Prospectus contained therein,
or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse such Holder, and each such person for any
reasonable legal or other expenses incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the
Company will not be liable in any such case if and to the extent that any such loss, claim, damage
or liability arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission so made in conformity with information furnished by or on behalf of
the Purchaser or any such person in writing specifically for use in any such document.

(b) In the event of a registration of the Registrable Securities under the Securities Act
pursuant to this Agreement, the Purchaser will indemnify and hold harmless the Company, and its
officers, directors and each other person, if any, who controls the Company within the meaning of
the Securities Act, against all losses, claims, damages or liabilities, joint or several, to which
the Company or such persons may become subject under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact which was
furnished in writing by the Purchaser to the Company expressly for use in (and such information is
contained in) the Registration Statement under which such Registrable

 

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Securities were registered under the Securities Act pursuant to this Agreement, any
preliminary Prospectus or final Prospectus contained therein, or any amendment or supplement
thereof, or arise out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse the Company and each such person for any reasonable legal or other
expenses incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action, provided, however, that the Purchaser will be liable
in any such case if and only to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement or omission or alleged
omission so made in conformity with information furnished in writing to the Company by or on behalf
of the Purchaser specifically for use in any such document. Notwithstanding the provisions of this
paragraph, the Purchaser shall not be required to indemnify any person or entity in excess of the
amount of the aggregate net proceeds received by the Purchaser in respect of Registrable Securities
in connection with any such registration under the Securities Act.

(c) Promptly after receipt by a party entitled to claim indemnification hereunder (an
“Indemnified Party”) of notice of the commencement of any action, such Indemnified Party shall, if
a claim for indemnification in respect thereof is to be made against a party hereto obligated to
indemnify such Indemnified Party (an “Indemnifying Party”), notify the Indemnifying Party in
writing thereof, but the omission so to notify the Indemnifying Party shall not relieve it from any
liability which it may have to such Indemnified Party other than under this Section 5(c) and shall
only relieve it from any liability which it may have to such Indemnified Party under this Section
5(c) if and to the extent the Indemnifying Party is prejudiced by such omission. In case any such
action shall be brought against any Indemnified Party and it shall notify the Indemnifying Party of
the commencement thereof, the Indemnifying Party shall be entitled to participate in and, to the
extent it shall wish, to assume and undertake the defense thereof with counsel satisfactory to such
Indemnified Party, and, after notice from the Indemnifying Party to such Indemnified Party of its
election so to assume and undertake the defense thereof, the Indemnifying Party shall not be liable
to such Indemnified Party under this Section 5(c) for any legal expenses subsequently incurred by
such Indemnified Party in connection with the defense thereof; if the Indemnified Party retains its
own counsel, then the Indemnified Party shall pay all fees, costs and expenses of such counsel,
provided, however, that, if the defendants in any such action include both the
Indemnified Party and the Indemnifying Party and the Indemnified Party shall have reasonably
concluded that there may be reasonable defenses available to it which are different from or
additional to those available to the Indemnifying Party or if the interests of the Indemnified
Party reasonably may be deemed to conflict with the interests of the Indemnifying Party, the
Indemnified Party shall have the right to select one separate counsel and to assume such legal
defenses and otherwise to participate in the defense of such action, with the reasonable expenses
and fees of such separate counsel and other expenses related to such participation to be reimbursed
by the Indemnifying Party as incurred.

(d) In order to provide for just and equitable contribution in the event of joint liability
under the Securities Act in any case in which either (i) the Purchaser, or any officer, director or
controlling person of the Purchaser, makes a claim for indemnification pursuant to this Section 5
but it is judicially determined (by the entry of a final judgment or decree by a court of competent
jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact that

 

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this Section 5 provides for indemnification in such case, or (ii) contribution under the
Securities Act may be required on the part of the Purchaser or such officer, director or
controlling person of the Purchaser in circumstances for which indemnification is provided under
this Section 5; then, and in each such case, the Company and the Purchaser will contribute to the
aggregate losses, claims, damages or liabilities to which they may be subject (after contribution
from others) in such proportion so that the Purchaser is responsible only for the portion
represented by the percentage that the public offering price of its securities offered by the
Registration Statement bears to the public offering price of all securities offered by such
Registration Statement, provided, however, that, in any such case, (A) the
Purchaser will not be required to contribute any amount in excess of the public offering price of
all such securities offered by it pursuant to such Registration Statement; and (B) no person or
entity guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Act) will
be entitled to contribution from any person or entity who was not guilty of such fraudulent
misrepresentation.

6. Representations and Warranties.

(a) The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act and,
except with respect to certain matters which the Company has disclosed to the Purchaser on
Schedule 4.21 to the Purchase Agreement, the Company has timely filed all proxy statements,
reports, schedules, forms, statements and other documents required to be filed by it under the
Exchange Act. The Company has filed its Annual Report on Form 10-K for its fiscal year ended
December 31, 2006 (the “SEC Report”). The SEC Report was, at the time of its filing, in
substantial compliance with the requirements of its respective form and neither the SEC Report, nor
the financial statements (and the notes thereto) included in the SEC Report, as of its filing date,
contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The financial statements of the Company included in the SEC
Report comply as to form in all material respects with applicable accounting requirements and the
published rules and regulations of the Commission or other applicable rules and regulations with
respect thereto. Such financial statements have been prepared in accordance with generally
accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved
(except (i) as may be otherwise indicated in such financial statements or the notes thereto) and
fairly present in all material respects the financial condition, the results of operations and the
cash flows of the Company and its subsidiaries, on a consolidated basis, as of, and for, the
periods presented in SEC Report.

(b) The Common Stock is listed or quoted, as applicable, for trading on the NASD Over The
Counter Bulletin Board and satisfies all requirements for the continuation of such listing or
quotation, as applicable, and the Company shall do all things necessary for the continuation of
such listing or quotation, as applicable. The Company has not received any notice that its Common
Stock will be delisted from or no longer be quoted on, as applicable, the NASD Over The Counter
Bulletin Board (except for prior notices which have been fully remedied) or that the Common Stock
does not meet all requirements for the continuation of such listing or quotation, as applicable.

 

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(c) Neither the Company, nor any of its affiliates, nor any person acting on its or their
behalf, has directly or indirectly made any offers or sales of any security or solicited any
offers to buy any security under circumstances that would cause the offering of the Securities
pursuant to the Purchase Agreement to be integrated with prior offerings by the Company for
purposes of the Securities Act which would prevent the Company from selling the Common Stock
pursuant to Rule 506 under the Securities Act, or any applicable exchange-related stockholder
approval provisions, nor will the Company or any of its affiliates or subsidiaries take any action
or steps that would cause the offering of the Common Stock to be integrated with other offerings
(other than such concurrent offering to the Purchaser).

(d) The Warrants and the shares of Common Stock that the Purchaser may acquire pursuant to the
Warrants are all restricted securities under the Securities Act as of the date of this Agreement.
The Company will not issue any stop transfer order or other order impeding the sale and delivery of
any of the Registrable Securities at such time as such Registrable Securities are registered for
public sale or an exemption from registration is available, except as required by federal or state
securities laws.

(e) The Company understands the nature of the Registrable Securities issuable upon the
exercise of each Warrant and recognizes that the issuance of such Registrable Securities may have a
potential dilutive effect. The Company specifically acknowledges that its obligation to issue the
Registrable Securities is binding upon the Company and enforceable regardless of the dilution such
issuance may have on the ownership interests of other shareholders of the Company.

(f) Except for agreements made in the ordinary course of business, there is no agreement that
has not been filed with the Commission as an exhibit to a registration statement or to a form
required to be filed by the Company under the Exchange Act, the breach of which could reasonably be
expected to have a material and adverse effect on the Company and its subsidiaries, or would
prohibit or otherwise interfere with the ability of the Company to enter into and perform any of
its obligations under this Agreement in any material respect.

(g) The Company will at all times have authorized and reserved a sufficient number of shares
of Common Stock for the full exercise of the Warrants.

(h) The Company shall provide written notice to each Holder of (i) the occurrence of each
Discontinuation Event (as defined below) and (ii) the declaration of effectiveness by the SEC of
each Registration Statement required to be filed hereunder, in each case within one (1) business
day of the date of each such occurrence and/or declaration.

7. Miscellaneous.

(a) Remedies. In the event of a breach by the Company or by a Holder, of any of their
respective obligations under this Agreement, each Holder or the Company, as the case may be, in
addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, will be entitled to specific performance of its rights under this
Agreement.

 

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(b) No Piggyback on Registrations. Except as and to the extent set forth on Schedule 7(b)
hereto, neither the Company nor any of its security holders (other than the Holders in such
capacity pursuant hereto) may include securities of the Company in any Registration
Statement other than the Registrable Securities, and the Company shall not after the date
hereof enter into any agreement providing any such right for inclusion of shares in the
Registration Statement to any of its security holders. Except as and to the extent specified in
Schedule 7(b) hereto, the Company has not previously entered into any agreement granting
any registration rights with respect to any of its securities to any person or entity that have not
been fully satisfied.

(c) Compliance. Each Holder covenants and agrees that it will comply with the prospectus
delivery requirements of the Securities Act as applicable to it in connection with sales of
Registrable Securities pursuant to any Registration Statement.

(d) Discontinued Disposition. Each Holder agrees by its acquisition of such Registrable
Securities that, upon receipt of a notice from the Company of the occurrence of a Discontinuation
Event (as defined below), such Holder will forthwith discontinue disposition of such Registrable
Securities under the applicable Registration Statement until such Holder’s receipt of the copies of
the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing
(the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, in
either case, has received copies of any additional or supplemental filings that are incorporated or
deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company
may provide appropriate stop orders to enforce the provisions of this paragraph. For purposes of
this Agreement, a “Discontinuation Event” shall mean (i) when the Commission notifies the Company
whether there will be a “review” of such Registration Statement and whenever the Commission
comments in writing on such Registration Statement (the Company shall provide true and complete
copies thereof and all written responses thereto to each of the Holders); (ii) any request by the
Commission or any other Federal or state governmental authority for amendments or supplements to
such Registration Statement or Prospectus or for additional information; (iii) the issuance by the
Commission of any stop order suspending the effectiveness of such Registration Statement covering
any or all of the Registrable Securities or the initiation of any Proceedings for that purpose;
(iv) the receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and/or (v) the
occurrence of any event or passage of time that makes the financial statements included in such
Registration Statement ineligible for inclusion therein or any statement made in such Registration
Statement or Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires any revisions to such Registration
Statement, Prospectus or other documents so that, in the case of such Registration Statement or
Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading.

(e) Piggy-Back Registrations. If at any time during any Effectiveness Period there is not an
effective Registration Statement covering all of the Registrable Securities required to be covered
during such Effectiveness Period and the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering for its own account or the account of
others under the Securities Act of any of its equity securities, other than on

 

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Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any acquisition of any entity
or business or equity securities issuable in connection with stock option or other employee benefit
plans, then the Company shall send to each Holder written notice of such determination and, if
within fifteen (15) days after receipt of such notice, any such Holder shall so request in writing,
the Company shall include in such registration statement all or any part of such Registrable
Securities such Holder requests to be registered, to the extent the Company may do so without
violating registration rights of others which exist as of the date of this Agreement, subject to
customary underwriter cutbacks applicable to all holders of registration rights and subject to
obtaining any required consent of any selling stockholder(s) to such inclusion under such
registration statement.

(f) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall be in writing and signed by the
Company and the Holders of the then outstanding Registrable Securities. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of certain Holders and that does not directly or indirectly
affect the rights of other Holders may be given by Holders of at least a majority of the
Registrable Securities to which such waiver or consent relates; provided, however,
that the provisions of this sentence may not be amended, modified, or supplemented except in
accordance with the provisions of the immediately preceding sentence.

(g) Notices. Any notice or request hereunder may be given to the Company or the Purchaser at
the respective addresses set forth below or as may hereafter be specified in a notice designated as
a change of address under this Section 7(g). Any notice or request hereunder shall be given by
registered or certified mail, return receipt requested, hand delivery, overnight mail, Federal
Express or other national overnight next day carrier (collectively, “Courier”) or telecopy
(confirmed by mail). Notices and requests shall be, in the case of those by hand delivery, deemed
to have been given when delivered to any party to whom it is addressed, in the case of those by
mail or overnight mail, deemed to have been given three (3) business days after the date when
deposited in the mail or with the overnight mail carrier, in the case of a Courier, the next
business day following timely delivery of the package with the Courier, and, in the case of a
telecopy, when confirmed. The address for such notices and communications shall be as follows:

	 	 	 
	If to the Company:

	 	JMAR Technologies, Inc.
	 

	 	10905 Technology Place
	 

	 	San Diego, CA 92127
	Attention:

	 	Chief Financial Officer
	 

	 	Facsimile: 858-946-6857
	 
	 	 
	If to a Purchaser:

	 	To the address set forth under such Purchaser
name on the signature pages hereto.
	 
	 	 
	If to any other Person who is
	 	 
	then the registered Holder:

	 	To the address of such Holder as it
appears in the stock transfer books of the Company

 

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or such other address as may be designated in writing hereafter in accordance with this Section
7(g) by such Person.

(h) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and permitted assigns of each of the parties and shall inure to the benefit of each
Holder. The Company may not assign its rights or obligations hereunder without the prior written
consent of each Holder. Each Holder may assign their respective rights hereunder in the manner and
to the persons and entities as permitted under the Purchase Agreement.

(i) Execution and Counterparts. This Agreement may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original and, all of which taken together
shall constitute one and the same agreement. In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid binding obligation of the party
executing (or on whose behalf such signature is executed) the same with the same force and effect
as if such facsimile signature were the original thereof.

(j) Governing Law, Jurisdiction and Waiver of Jury Trial. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. The
Company hereby consents and agrees that the state or federal courts located in the County of New
York, State of New York shall have exclusion jurisdiction to hear and determine any Proceeding
between the Company, on the one hand, and the Purchaser, on the other hand, pertaining to this
Agreement or to any matter arising out of or related to this Agreement; provided, that the
Purchaser and the Company acknowledge that any appeals from those courts may have to be heard by a
court located outside of the County of New York, State of New York, and further
provided, that nothing in this Agreement shall be deemed or operate to preclude the
Purchaser from bringing a Proceeding in any other jurisdiction to collect the obligations, to
realize on the Collateral or any other security for the obligations, or to enforce a judgment or
other court order in favor of the Purchaser. The Company expressly submits and consents in advance
to such jurisdiction in any Proceeding commenced in any such court, and the Company hereby waives
any objection which it may have based upon lack of personal jurisdiction, improper venue or
forum non conveniens. The Company hereby waives personal service of the summons, complaint
and other process issued in any such Proceeding and agrees that service of such summons, complaint
and other process may be made by registered or certified mail addressed to the Company at the
address set forth in Section 7(g) and that service so made shall be deemed completed upon the
earlier of the Company’s actual receipt thereof or three (3) days after deposit in the U.S. mails,
proper postage prepaid. The parties hereto desire that their disputes be resolved by a judge
applying such applicable laws. Therefore, to achieve the best combination of the benefits of the
judicial system and of arbitration, the parties hereto waive all rights to trial by jury in any
Proceeding brought to resolve any dispute, whether arising in contract, tort, or otherwise between
the Purchaser and/or the Company arising out of, connected with, related or incidental to the
relationship established between then in connection
with this Agreement. If either party hereto shall commence a Proceeding to enforce any
provisions of this Agreement, the Purchase Agreement or any other Related Agreement, then the
prevailing party in such Proceeding shall be reimbursed by the other party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and
prosecution of such Proceeding.

 

11

 

(k) Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any
remedies provided by law.

(l) Severability. If any term, provision, covenant or restriction of this Agreement is held
by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder
of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall
use their reasonable efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the parties that they
would have executed the remaining terms, provisions, covenants and restrictions without including
any of such that may be hereafter declared invalid, illegal, void or unenforceable.

(m) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

[Balance of page intentionally left blank; signature page follows]

 

12

 

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above.

	 	 	 
	 

	 	JMAR TECHNOLOGIES, INC.
	 
	 	 
	 

	 	By: /s/ C. NEIL BEER
	 

	 	Name: C. Neil Beer

Title: Chief Executive Officer
	 
	 	 
	 

	 	LAURUS MASTER FUND, LTD.
	 
	 	 
	 

	 	By: /s/ EUGENE GRIN
	 

	 	Name: Eugene Grin
	 

	 	Title: Director
	 
	 	 
	 

	 	Address for Notices:
 
	 

	 	Laurus Master Fund, Ltd.
	 

	 	c/o M&C Corporate Services Limited
	 

	 	P.O. Box 309 GT
	 

	 	Ugland House
	 

	 	George Town
	 

	 	South Church Street
	 

	 	Grand Cayman, Cayman Islands
	 

	 	Facsimile:          345-949-8080
	 
	 	 
	 

	 	with copy to:
	 
	 	 
	 

	 	Laurus Capital Management, LLC
	 

	 	335 Madison Avenue, 10th Floor
	 

	 	New York, NY 10017
	 

	 	Attention:          Portfolio Services
	 

	 	Facsimile:            212-581-5037

 

13

 

EXHIBIT A

                    , 200   

Computershare Trust Co.

350 Indiana Street

Suite 800

Golden, CO 80401

			
	                    Re:	 	JMAR Technologies, Inc.Registration Statement on Form S-1

Ladies and Gentlemen:

As counsel to JMAR Technologies, Inc., a Delaware corporation (the “Company”), we have been
requested to render our opinion to you in connection with the resale by the individuals or entitles
listed on Schedule A attached hereto (the “Selling Stockholders”), of an aggregate of
                     shares (the “Shares”) of the Company’s Common Stock.

A Registration Statement on Form S-1 under the Securities Act of 1933, as amended (the “Act”),
with respect to the resale of the Shares was declared effective by the Securities and Exchange
Commission on [date]. Enclosed is the Prospectus dated [date]. We understand that the Shares are
to be offered and sold in the manner described in the Prospectus.

Based upon the foregoing, upon request by the Selling Stockholders at any time while the
registration statement remains effective, it is our opinion that the Shares have been registered
for resale under the Act and new certificates evidencing the Shares upon their transfer or
re-registration by the Selling Stockholders may be issued without restrictive legend. We will
advise you if the registration statement is not available or effective at any point in the future.

Very truly yours,

[Company counsel]

 

 

 

Schedule A to Exhibit A

	 	 	 	 	 
	 	 	 	 	Shares
	Selling Stockholder	 	R/N/O	 	Being Offered
	 
	 	 
	 	 

 

 

 

SCHEDULE 7(b)

The Company is the party to several Registration Rights Agreements that relate to the sale of
shares of Common Stock issuable under several outstanding Warrants. Although the Company has
satisfied its obligation to include such shares in currently effective registration statements,
these agreements continue in force to the extent of the Company’s obligation to maintain the
effectiveness of such registration statements.Filed by Bowne Pure Compliance

 

Exhibit 10.4

SECURITIES EXCHANGE AGREEMENT

This Securities Exchange Agreement (“Agreement”) is made and entered into as of April 23, 2007
between JMAR Technologies, Inc., a Delaware corporation (the “Company”), and Laurus Master Fund,
Ltd., a Cayman Islands company (“Laurus”).

RECITALS

A. Whereas, Laurus currently owns 145,602 shares of the Company’s Series G Cumulative
Convertible Preferred Stock (with a stated value of $1,456,020) and 639,398 shares of Series I
Cumulative Convertible Preferred Stock (with a stated value of $6,393,980) (“the Preferred Stock”);
and

B. Whereas, the Company desires to issue 1,500,000 shares of its Common Stock (the “Shares”)
in exchange for a portion of the shares of Series G and Series I Preferred Stock, on the terms and
conditions set forth in this Agreement;

Now, therefore, the parties agree as follows:

AGREEMENT

1. EXCHANGE OF COMMON STOCK FOR PREFERRED STOCK.

1.1 Agreement to Exchange Shares. At the Closing, the Company agrees to issue to
Laurus 1,500,000 shares of Common Stock (the “Shares”) in exchange for and in cancellation of i)
19,475.4 shares of Series G Preferred Stock, with a stated value of $194,754.00, and ii) 1,899.6
shares of Series I Preferred Stock, with a stated value of $18,996.00. Following this exchange,
Laurus shall retain a total of 125,565.6 shares of Series G Preferred Stock, with a stated value of
$1,255,656, and 637,498.4 shares of Series I Preferred Stock, with a stated value of $6,374,984.

1.2 Payment of Redemption Payments. As a result of the payment of the Shares, a total
of $213,750 shall be applied to pay the monthly redemption payments owing under the Preferred Stock
in chronological order as follows: (i) the entire monthly redemption amounts ($27,822 per month)
owing under the Series G Preferred Stock for the months of February through August, 2007 (for a
total of $194,754), and (ii) $18,996 of the redemption amount owing under the Series I Preferred
Stock for the month of August, 2007.

2. CLOSING.

Subject to the terms and conditions herein, the closing of the transactions contemplated
hereby (the “Closing”) shall take place on the date hereof or at such other time or place as the
Company and Laurus may mutually agree (such date is hereinafter referred to as the “Closing Date”).

 

 

 

3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company hereby represents and warrants to Laurus as follows:

3.1 Organization, Good Standing and Qualification. The Company has been duly
incorporated and organized, and is validly existing in good standing, under the laws of the State
of Delaware. The Company has the corporate power and authority to enter into and perform this
Agreement, to own and operate its properties and assets, and to carry on its business as currently
conducted and as presently proposed to be conducted.

3.2 Due Authorization. All corporate action on the part of the Company necessary for
the authorization, execution, delivery of, and the performance of all obligations of the Company
under this Agreement, including the authorization, issuance and delivery of all of the Shares has
been taken, and this Agreement constitutes, valid and legally binding obligations of the Company,
enforceable in accordance with their respective terms, except as may be limited by (i) applicable
bankruptcy, insolvency, reorganization or others laws of general application relating to or
affecting the enforcement of creditors’ rights generally and (ii) the effect of rules of law
governing the availability of equitable remedies.

3.3 Valid Issuance of Stock. Upon delivery of the Shares at the Closing, the Shares
will be duly authorized and validly issued, fully paid and nonassessable.

4. REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF LAURUS.

Laurus hereby represents and warrants to, and agrees with, the Company as follows:

4.1 Authorization. This Agreement constitutes Laurus’ valid and legally binding
obligation, enforceable in accordance with its terms except as may be limited by (i) applicable
bankruptcy, insolvency, reorganization or other laws of general application relating to or
affecting the enforcement of creditors’ rights generally and (ii) the effect of rules of law
governing the availability of equitable remedies. Laurus represents that it has full power and
authority to enter into this Agreement.

4.2 Purchase for Own Account. The Shares to be issued to Laurus hereunder will be
acquired for investment for Laurus’ own account, not as a nominee or agent, and not with a view to
the public resale or distribution thereof within the meaning of the 1933 Act (other sales pursuant
to Rule 144(k)).

4.3 Disclosure of Information. Laurus has received or has had full access to all the
information it considers necessary or appropriate to make an informed investment decision with
respect to the Shares to be received by Laurus under this Agreement. Laurus further has had an
opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the issuance of the Shares and to obtain additional information (to the extent the
Company possessed such information or could acquire it without unreasonable effort or expense)
necessary to verify any information furnished to Laurus or to which Laurus had access.

 

2

 

4.4 Accredited Investor Status. Laurus is an “accredited investor” within the meaning
of Regulation D promulgated under the 1933 Act.

5. CONDITIONS TO LAURUS’ OBLIGATIONS AT CLOSING.

The obligations of Laurus under this Agreement are subject to the fulfillment or waiver, on or
before the Closing, of each of the following conditions:

5.1 Representations and Warranties True. The representations and warranties of the
Company contained in Section 3 shall be true and correct on the Closing with the same effect as
though such representations and warranties had been made on and as of the date of the Closing.

5.2 Performance. The Company shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are required to be performed or
complied with by it on or before the Closing and shall have obtained all approvals, consents and
qualifications necessary to complete the purchase and sale described herein.

6. CONDITIONS TO THE COMPANY’S OBLIGATIONS AT CLOSING.

The obligations of the Company under this Agreement are subject to the fulfillment or waiver,
on or before the Closing, of each of the following conditions:

6.1 Representations and Warranties. The representations and warranties of Laurus
contained in Section 4 shall be true and correct on the date of the Closing with the same effect as
though such representations and warranties had been made on and as of the Closing.

6.2 Performance. Laurus shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are required to be performed or
complied with by it on or before the Closing and shall have obtained all approvals, consents and
qualifications necessary to complete the purchase and sale described herein

7. GENERAL PROVISIONS.

7.1 Survival of Warranties. The representations, warranties and covenants of the
Company and Laurus contained in or made pursuant to this Agreement shall survive the execution and
delivery of this Agreement and the Closing and shall in no way be affected by any investigation of
the subject matter thereof made by or on behalf of Laurus or the Company, as the case may be.

7.2 Successors and Assigns. The terms and conditions of this Agreement shall inure to
the benefit of and be binding upon the respective successors and assigns of the parties.

7.3 Governing Law. This Agreement shall be governed by and construed under the
internal laws of the State of New York as applied to agreements among New York residents entered
into and to be performed entirely within New York, without reference to principles of conflict of
laws or choice of laws.

 

3

 

7.4 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Delivery of an executed copy of a signature page to this Agreement by facsimile
transmission shall be effective as delivery of a manually executed copy of this Agreement and shall
be effective and enforceable as the original.

7.5 Notices. All notices required or permitted hereunder shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when
sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not,
then on the next business day, (c) five days after having been sent by registered or certified
mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt.
All communications shall be sent to the Company at the address as set forth on the signature page
hereof and to Laurus at the address set forth on the signature page hereto for, with a copy in the
case of Laurus to John E. Tucker Esq. 825 Third Avenue, New York, NY 10022, facsimile number (212)
541-4434, or at such other address as the Company or Laurus may designate by ten days advance
written notice to the other parties hereto.

7.6 Entire Agreement. This Agreement constitutes the entire agreement and
understanding of the parties with respect to the subject matter hereof and supersedes any and all
prior negotiations, correspondence, agreements, understandings duties or obligations between the
parties with respect to the subject matter hereof.

IN WITNESS WHEREOF, the parties hereto have executed this Securities Exchange Agreement as of
the date set forth in the first paragraph hereof.

	 	 	 	 	 
	JMAR Technologies, Inc.	 	Laurus Master Fund, Ltd.
	 
	 	 	 	 
	By: /s/ C. NEIL BEER	 	By: /s/ EUGENE GRIN
	Name: C. Neil Beer	 	Name: Eugene Grin, Director
	Title: Chief Executive Officer

	 	Address:
	 	LAURUS MASTER FUND, LTD.
	Address: 10905 Technology Place

	 	 	 	c/o Ironshore Corporate Services Ltd.
	San Diego, California 92127

	 	 	 	P.O. Box 1234 G.T., Queensgate House, South Church Street
	 

	 	 	 	Grand Cayman, Cayman Islands

 

4

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