Document:

EX-10.1

TECHNOLOGY TRANSFER AND LICENSE AGREEMENT

THIS TECHNOLOGY TRANSFER AND LICENSE AGREEMENT (the “Agreement”), is entered into on February
21, 2005 (the “Effective Date”), by and between JMAR Technologies, Inc., a Delaware corporation,
and Gregory M. Quist (“Quist”) and David A. Drake (“Drake”) doing business as The LXT Group. The
parties agree as follows:

1. Recitals.

1.1. The parties entered into an Agreement of Purchase and Sale of Asset dated as of September
7, 2004 (“the Original Agreement”) respecting the purchase of certain technology and other assets.

1.2. The parties have disputes and claims against each other pertaining to their respective
rights and obligations under the Original Agreement and desire to enter into this Agreement to
resolve those claims and disputes by superseding, novating, amending and restating the Original
Agreement in the manner set forth in this Agreement.

2. Definitions.

2.1. Generally. Words and terms having their initial letter capitalized in this
Agreement shall have the respective meanings set forth in this Section on in the body of this
Agreement.

2.2. Additional Definitions.

"Affiliate” means, with respect to any specified Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, is controlled by or is under
common control with, such specified Person. “Person” means any individual, corporation,
partnership, limited liability company, limited liability partnership, firm, joint venture,
association, joint-stock company, trust, unincorporated organization, governmental or other entity.

“CORTS,” and “CORTS System” means a continuous online real-time surveillance
system that uses light scattering for detection of microorganism contamination and other particles
in water.

“Consulting Agreement” means the consulting agreement between JMAR and Quist and Drake
dated to be effective as of January 31, 2005 with a term expiring on December 31, 2005, providing
for the payment for eleven hundred (1100) consulting hours at the rate of one Hundred Ten Dollars
($110) per hour, the form of which is attached as Exhibit A.

3. Transfer and License of Technology.

3.1. Transfer of Technology. On the terms and subject to the conditions set forth in this
Agreement, at the Closing Quist and Drake will transfer, convey, assign and deliver to JMAR, and
JMAR will acquire from Quist and Drake, all right, title and interest of Quist and Drake in the
rights, assets, and properties of Quist and Drake as follows (“Transferred Technology”):

(a) The registered trademark, “BioScanner,” a pending trademark for “BioSentry” and the
unregistered common law trademark, “CORTS”;

(b) The right to enter into a license with NASA for the exclusive rights to use the technology
embodied in U.S. Patent No. 6,313908 issued to McGill, et al and assigned to NASA (the “NASA
License”) in the field of detection of microorganisms in water;

(c) Designs, software, laboratory notebooks, drawings, notes, algorithms, data and other
documents and information related to CORTS and the CORTS System and the proof of concept, alpha and
beta units produced since April 16, 2004 for the use of light scattering for detection of
microorganism contamination and other particles of water; and

(d) All books, records, manuals, data and other materials relating to CORTS and the CORTS
System, and including without limitation, all lists of customers, markets, technology applications,
distribution lists, production data, sales and promotional materials and records, research and
development files, data and laboratory books, patent disclosures and accounting records, related to
CORTS and the CORTS System and for the use of light scattering for detection of microorganism
contamination and other particles of water, excluding any professional books and published papers
that Quist or Drake own.

3.2. License of Patent Technology. On the terms and subject to the conditions set
forth in the Agreement, at the Closing Quist and Drake will grant to JMAR , an exclusive,
perpetual, worldwide license to make, use, import, sell, offer for sale, lease or otherwise dispose
of products and services under all right, title and interest of Quist and Drake in the Provisional
Patent Application for a Continuous On-Line Real-Time Surveillance System, that David A. Drake and
Gregory M. Quist prepared, dated January 5, 2004, filed with the U.S. Patent & Trademark Office on
January 8, 2004 and the utility patent application related to that provisional patent application
that was filed with the U.S. Patent & Trademark Office on or about January 10, 2005, and any patent
that that may issue from such applications, limited to the use of light scattering for detection of
microorganisms contamination and other particles in water (“Licensed Technology”). Otherwise,
Quist and Drake retain all other rights in such patent applications and any patents that may issue.

3.3. Assumption of Liabilities. On the terms and subject to the conditions set forth in
this Agreement, at the Closing JMAR will assume and agree to pay, perform or discharge all
liabilities, obligations and commitments arising out of or requiring performance under agreements,
contracts or commitments entered into after April 16, 2004 that are included in the Transferred
Technology and Licensed Technology (the “Assumed Liabilities”).

3.4. Excluded Assets and Excluded Liabilities. JMAR shall not assume any liabilities,
obligations or commitments of Quist or Drake (the “Excluded Liabilities”) relating to or arising
out of the business, products, services, operations, assets, properties, taxes or deferred taxes of
Quist or Drake on or prior to the Closing, other than the Assumed Liabilities. Quist and Drake are
not transferring or licensing any asset, right or property not specifically described and set forth
in Sections 3.1 and 3.2, above.

3.5. Consideration. In consideration for the transfer, conveyance, assignment, license and
delivery by Quist and Drake of the Transferred Technology and Licensed Technology to JMAR, Quist
and Drake shall receive payments (the “CORTS Payments”) equal to two percent (2%) of the gross
revenue of any nature arising from any CORTS System regardless of the technology employed (the
“CORTS Revenue”), commencing on the date on which JMAR receives from unaffiliated third parties the
first dollar of CORTS Revenue (the “Revenue Start Date”) and continuing until the seventh
anniversary thereof (the “Revenue End Date”). In addition, the One Hundred Twenty Five Thousand
Dollar ($125,000) loan JMAR made to Quist and Drake pursuant to the Alliance Agreement between them
dated as of June 10, 2004 (the “Loan”) shall be satisfied solely from CORTS Payments that are
generated from revenues of any nature from any CORTS System received after the third anniversary of
the Revenue Start Date, and shall be repaid by payment of 50% of each CORTS Payment due thereafter
until repaid in full. If, on the Revenue End Date, the Loan has not been repaid in full, the
remaining unpaid portion of the Loan shall then be forgiven. On the Closing Date, the Loan shall
be amended to provide that interest shall begin accruing on April 2, 2005 at the prime rate quoted
by the Western edition of the Wall Street Journal (the “Prime Rate”) until satisfied or discharged.
Quist and Drake may prepay the Loan without penalty.

(a) Payments. Each CORTS Payment shall be paid in arrears within forty-five (45) days
after the end of each calendar quarter commencing with the first quarter in which the Revenue Start
Date occurs, and shall be accompanied by a true and accurate written report signed and certified to
be correct by the Chief Financial Officer or Chief Executive Officer of JMAR setting forth the
amount of revenue received, the nature of the receipts, and the basis upon which the CORTS Payment
has been calculated. Any CORTS Payment not timely paid shall accrue interest at the Prime Rate.

(b) Audit. JMAR shall keep full, true and accurate records and books of account containing
all particulars that may be necessary for the purpose of calculating the CORTS Payments. These
records and books of account shall be kept by JMAR at its usual place of business and such books
and the supporting data shall be retained for at least six (6) years following the end of the
calendar year to which they pertain. Quist and Drake shall have the right on ten (10) days prior
written notice, to audit such books and records at JMAR’s usual place of business following the end
of the calendar year. If any audit discloses underpayment of the CORTS Payment exceeding ten
percent (10%) for the audited period, JMAR shall pay the cost of the audit, plus the amount of the
underpayment with interest at the rate at the lesser of the Prime Rate or the maximum rate
permitted by law, plus a penalty equal to ten percent (10%) of any underpayment. Otherwise, Quist
and Drake shall bear the cost of such audit.

4. Representations and Warranties. Quist and Drake represent and warrant to JMAR as
follows:

4.1. Authority. Quist and Drake have the full power and authority to execute and deliver
this Agreement and the Consulting Agreement (collectively the “Transaction Documents”) and to
consummate the transactions contemplated hereby. The Transaction Documents have been duly and
validly executed and delivered by Quist and Drake and constitute the legal, valid and binding
agreements and obligations of Quist and Drake, enforceable against Quist and Drake in accordance
with their respective terms, except as enforceability may be limited by bankruptcy, insolvency,
moratorium or other similar laws affecting creditors’ rights generally or by general principles of
equity, including principles governing the availability of equitable remedies.

4.2. Consents and Approvals; No Violations. Neither the execution and delivery of this
Agreement nor related agreements by Quist and Drake nor the consummation of the transactions
contemplated hereby or compliance with any of the provisions hereof will (i) require any consent,
approval, authorization or permit from, any governmental or regulatory authority or other third
party, except for any such consents, approvals, authorizations, permits, the absence of which
would not have a material adverse effect on the assets, properties, business or financial condition
of the Quist and Drake; (ii) result in a breach of the terms, conditions or provisions of, or
constitute a default (or an event which, upon notice or lapse of time or both, would constitute a
default) under or cause, permit or give rise to any right of termination, cancellation or
acceleration under any of the terms, conditions or provisions of any material note, bond, deed of
trust, mortgage, indenture, lease, license, joint venture, loan or credit agreement or any other
material agreement or other material instrument or obligation to which Quist and Drake are parties
or by which Quist and Drake may be bound; (iii) conflict with or result in a violation of any
provision of (A) any statute, rule, regulation or ordinance which conflict or violation might have
a material adverse effect on the assets, properties, business or financial condition of Quist and
Drake or (B) any material order, injunction, judgment, award or decree applicable to Quist and
Drake or any of their properties or assets; or (iv) result in or require the creation or imposition
of any lien upon or with respect to any of the properties or assets of Quist and Drake.

4.3. No Other Representations. Because JMAR is intimately familiar with the status of
CORTS and CORTS System as well as the Transferred Technology and Licensed Technology, except for
the express warranties set forth in Sections 4.1 and 4.2, or Section 8.3, Quist and Drake are
making no representation or warranties whatsoever and the Transferred Technology and Licensed
Technology is being transferred or licensed, as the case may be, “AS IS, WHERE IS, WITH ALL FAULTS”
AND WITHOUT ANY WARRANTY, WHETHER EXPRESSED OR IMPLIED AS TO THE CONDITION OF SUCH TECHNOLOGY AND
ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY REGARDING
INFRINGEMENT ARE HEREBY DISCLAIMED.

5. Representations and Warranties of JMAR. JMAR represents and warrants to Quist and Drake
as follows:

5.1. Organization. JMAR is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware and has all requisite corporate power and
authority to own, lease and operate its properties and assets and to carry on its business as now
being conducted. JMAR is duly qualified to do business as a foreign corporation and in good
standing in the State of California.

5.2. Authorization of Transaction Documents. JMAR has the requisite corporate power and
authority to enter into and deliver the Transaction Documents, and to carry out its obligations
thereunder. The execution and delivery by JMAR of the Transaction Documents, the performance by
JMAR of its obligations under the Transaction Documents and the consummation by JMAR of the
transactions contemplated hereby have been or by the Closing will be duly authorized by all
necessary corporate action on its part. The Transaction Documents have been duly and validly
executed and delivered by JMAR and are the legal, valid and binding agreements and obligations of
JMAR, enforceable against it in accordance with their terms, except as enforceability may be
limited by bankruptcy, insolvency, moratorium or other similar laws affecting creditors’ rights
generally or by general principles of equity, including principles governing the availability of
equitable remedies.

5.3. Consents and Approvals; No Violations. Neither the execution and delivery of the
Transaction Documents nor the consummation of the transactions contemplated hereby or compliance
with any of the provisions thereof will (i) conflict with or result in any breach of any provision
of the Certificate of Incorporation or Bylaws of JMAR, each as amended to date; (ii) require any
consent, approval, authorization or permit from, or filing with or notification to, any
governmental or regulatory authority or other third party, except for any such consents, approvals,
authorizations, permits, filings or notifications, the absence of which would not have a material
adverse effect on the assets, properties, business or financial condition of JMAR; (iii) result in
a breach of the terms, conditions or provisions of, or constitute a default (or an event which,
upon notice or lapse of time or both, would constitute a default) under or cause, permit or give
rise to any right of termination, cancellation or acceleration under any of the terms, conditions
or provisions of any material note, bond, deed of trust, mortgage, indenture, lease, license, joint
venture, loan or credit agreement or any other material agreement or other material instrument or
obligation to which JMAR is a party or by which JMAR or any of its assets may be bound; (iv)
conflict with or result in a violation of any provision of (A) any statute, rule, regulation or
ordinance which conflict or violation might have a material adverse effect on the assets,
properties, business or financial condition of JMAR or (B) any material order, injunction,
judgment, award or decree applicable to JMAR or any of its properties or assets; or (v) result in
or require the creation or imposition of any lien upon or with respect to any of the properties or
assets of JMAR.

6. Closing.

6.1. Time and Place of Closing. Upon the terms and subject to the satisfaction of the
conditions contained in this Agreement, the closing of transactions contemplated by this Agreement
(the “Closing”) will take place at the offices of Solomon Ward Seidenwurm and Smith, LLP, 401 B
Street, Suite 1200, San Diego, CA 921010 on the Effective Date, 2005 or at such time and place as
the parties may agree upon. The date upon and time at which the Closing actually occurs is herein
referred to as the “Closing Date”.

6.2. Deliveries by Quist and Drake. At the Closing, Quist and Drake will deliver the
following to JMAR:

(a) The instruments of transfer or license contemplated by Section 7.1(b);

(b) The books and records of Quist and Drake included in the Transferred Technology;

(c) The Consulting Agreement executed by Quist and Drake; and

(d) All other agreements, documents, instruments and writings required to be delivered by
Quist and Drake at the Closing pursuant to this Agreement.

6.3. Deliveries by JMAR. At the Closing, JMAR will deliver the following to Quist and
Drake:

(a) UCC Termination Statement(s) and other documents and instruments evidencing release of the
security interest for the Loan;

(b) The Consulting Agreement executed by JMAR; and

(c) All other agreements, documents, instruments and writings required to be delivered by JMAR
at the Closing pursuant to this Agreement.

7. Closing Conditions.

7.1. Conditions to Obligations of JMAR. The obligations of JMAR to perform this Agreement
and its obligations hereunder are subject to the satisfaction on or prior to the Closing Date of
each of the following conditions, unless waived by JMAR:

(a) Quist and Drake shall have executed and delivered the Consulting Agreement.

(b) JMAR shall have received from Quist and Drake:

(i) assignments, in form and substance reasonably satisfactory to JMAR, of any
contracts, agreements, licenses, instruments, rights, copyrights, patents, trade secrets,
other intangible properties, included in the Transferred Technology; and

(ii) such other good and sufficient instruments of conveyance, assignment or transfer,
satisfactory in form and substance to JMAR, as shall be effective to vest in JMAR the
Transferred Technology and Licensed Technology free and clear of all encumbrances.

7.2. Conditions to Obligations of Quist and Drake. The obligations of Drake and Quist to
perform this Agreement and their respective obligations under this Agreement are subject to the
satisfaction on or before the Closing Date of each of the following conditions, unless waived by
the Quist and Drake:

(a) JMAR shall have executed and delivered the Consulting Agreement

(b) JMAR shall have executed and delivered a UCC Termination Statement and such other
documents as are necessary to release any security interest for the Loan.

8. Covenants of the Parties.

8.1. Subsequent Sale of Business.

a. In the event that after the Closing JMAR sells or transfers all or any part of its business
relating to CORTS or the CORTS System, then Quist and Drake shall have the option to elect one of
the following (i) the express assumption by the buyer of the JMAR’s obligations to make the CORTS
Payments, or (ii) a lump sum payment (the “Alternative Payment”) by JMAR equal to 2% of the present
value of the stream of “Projected Revenues” calculated for the period remaining until the Revenue
End Date (as defined in Section 3.5 above). For purposes of this Section 8.1, the “Projected
Revenues” shall be determined as follows:

	 	1.	 	The “Post-Closing Quarters” is equal to the number of calendar quarters between
the date of the closing of the sale of the business relating to CORTS or the CORTS
System and the Revenue End Date;

	 	2.	 	The “Projected Revenues” for the Post-Closing Quarters shall be determined,
where possible, by using the actual historical quarterly revenues for the same number
of quarters before the closing of the sale of the business relating to CORTS or the
CORTS System as is equal to the number of Remaining Quarters;

	 	3.	 	For purposes of calculating the present value of the Projected Revenues, the
discount rate shall be 25%; and

	 	4.	 	The Alternative Payment shall in no event be in excess of 5% of the Net
Proceeds received or receivable on account of such sale or transfer. Net Proceeds shall
mean the gross amounts received less the costs of sale, exclusive of transfer or other
taxes.

b. In the event of a sale, merger or other transfer of the stock or assets of JMAR, the acquiring
party (or surviving party in a merger) shall be required to assume JMAR’s obligations under this
Agreement.

8.2. Further Agreements of Quist and Drake and JMAR. Quist and Drake shall, upon the
reasonable request of JMAR from time to time, execute and deliver to JMAR such further bills of
sale, endorsements and other good and sufficient instruments of transfer and assignment, as may be
necessary or desirable in order to vest in JMAR all right, title and interest in and to any and all
of the Transferred Technology to the extent contemplated by this Agreement. Quist and Drake and
JMAR agree to cooperate in order to obtain all necessary consents to the transfer to JMAR of any
rights constituting part of the Transferred Technology.

8.3. Mutual Releases. Quist and Drake on the one hand and JMAR on the other, on their own
behalf and on behalf of each of their respective agents, employees, partners, joint venturers,
Affiliates, subsidiaries, directors, officers, shareholders and all persons acting by or through
them, including their respective successors and assigns, irrevocably, unconditionally and fully
release, acquit and forever discharge the other, and each of their respective agents, employees,
partners, joint venturers, Affiliates, subsidiaries, directors, officers, shareholders and all
persons acting by or through them, including their respective successors and assigns, from any and
all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies,
damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses of
any nature whatsoever, known or unknown, suspected or unsuspected, that the releasing party may
have against the released party including without limitation those arising out of alleged breaches
of representations, warranties or covenants set forth in the Original Agreement, the Alliance
Agreement or respecting the Transferred Technology or the Licensed Technology based on facts
occurring before the Effective Date (collectively, the “Claims”). Despite the preceding, nothing
in this Agreement is to be construed as a release or waiver of any Claims Quist or Drake may have
against PointSource Technologies, LLC or any of its Affiliates or successors and assigns, or Baker
and MacKenzie.

Each of the Drake and Quist on the one hand and JMAR on the other expressly waives and
relinquishes all rights and benefits they may have under Section 1542 of the Civil Code of the
State of California or any other applicable state law relating to general releases. California
Civil Code Section 1542 reads as follows:

§1542. [General Release — Claims Extinguished.] A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his settlement
with the debtor.

Each of the Drake and Quist on the one hand and JMAR on the other represent that they have not
previously assigned nor transferred in any manner, or purported to have assigned or transferred in
any manner, any of the Claims, nor has any such assignment or transfer occurred as a consequence or
by operation of law.

9. Survival of Representations and Warranties of Quist and Drake and JMAR. All
representations and warranties of JMAR, on the one hand, and Quist and Drake, on the other, in the
Transaction Documents shall survive the Closing and shall expire and be deemed terminated and
extinguished on the second anniversary of the Closing Date. The covenants of the parties shall
survive the execution and delivery of this Agreement until they are performed in full.

10. Indemnification.

10.1. Obligation of Quist and Drake. Subject to the limitation on Quist and Drake’s
liability under Section 10.4 below, Quist and Drake agree to indemnify, defend and hold harmless
JMAR and its directors, officers, employees, agents, subsidiaries and Affiliates, and their
respective successors and assigns from and against all losses, liabilities, damages, deficiencies,
costs or expenses, including interest, penalties and reasonable attorneys’ fees and disbursements
(“Losses”) which any of them shall incur or suffer based upon, arising out of or otherwise in
respect of or involving (a) any inaccuracy in or any breach of any representation, warranty,
covenant or agreement of Quist and Drake contained in the Transaction Documents which was not
waived by JMAR prior to Closing, or (b) any liability, obligation, debt or commitment of Quist and
Drake, not included in the Assumed Liabilities, or (c) any third-party claim or claims made or
threatened against JMAR or affecting any portion of the Transferred or Licensed Technology which
arise out of the operation of the business related to CORTS or the CORTS System prior to April 16,
2004 other than any claim advanced by PointSource, LLC, its Affiliates or successors and assigns.

10.2. Obligation of JMAR to Indemnify. JMAR agrees to indemnify, defend and hold harmless
Quist and Drake, their partners, representatives, agents, Affiliates and their respective
successors and assigns (the “Quist and Drake Indemnified Parties”) from and against all Losses
which any of them shall incur or suffer based upon, arising out of or otherwise in respect of or
involving (a) any inaccuracy in or breach of any representation, warranty, covenant or agreement of
JMAR contained in the Transaction Documents which was not waived by Quist and Drake prior to
Closing, or (b) any liability, obligation, debt or commitment included in the Assumed Liabilities,
or (c) any third party claim or claims made or threatened against Quist and Drake which arise out
of or involve the operation of the business related to CORTS or the CORTS System after April 16,
2004.

10.3. Notice and Opportunity to Defend.

(a) Notice of Asserted Liability. Promptly after receipt by any party hereto (the
“Indemnitee”) of notice of any demand, claim or circumstances that would give rise to a claim or
the commencement (or threatened commencement) of any action, proceeding or investigation (an
“Asserted Liability”) that may result in a claim for indemnification under Section 10.1 or 10.2,
the Indemnitee shall give notice thereof (the “Claims Notice”) to the party obligated to provide
indemnification pursuant to Section 10.1 or 10.2 (the “Indemnifying Party”). The Claims Notice
shall describe the Asserted Liability in reasonable detail, and shall indicate the amount
(estimated, if necessary) of the loss or damage that has been or may be suffered by the Indemnitee.

(b) Opportunity to Defend. The Indemnifying Party may elect to compromise or defend,
at its own expense and by its own counsel, any Asserted Liability. If the Indemnifying Party
elects to compromise or defend such Asserted Liability, it shall within 30 days of receipt of the
Claims Notice notify the Indemnitee of its intent to do so, and the Indemnitee shall cooperate in
the compromise of, or defense against, such Asserted Liability. The Indemnifying Party shall
reimburse the Indemnitee for all out-of-pocket costs incurred by the Indemnitee in connection with
such cooperation. If the Indemnifying Party elects not to compromise or defend the Asserted
Liability, fails to notify the Indemnitee of its election as herein provided or contests its
obligation to indemnify under this Agreement, the Indemnitee may pay, compromise or defend such
Asserted Liability. Notwithstanding the foregoing, neither the Indemnifying Party nor the
Indemnitee may settle or compromise any claim over the objection of the other, provided, however,
that consent to settlement or compromise shall not be unreasonably withheld. In any event, the
Indemnitee and the Indemnifying Party may participate, at their own expense, in the defense of such
Asserted Liability. If the Indemnifying Party chooses to defend any claim, the Indemnitee shall
make available to the Indemnifying Party any books, records or other documents within its control
that are necessary or appropriate for such defense, subject to reasonable confidentiality
protections.

10.4. Limitation of Liability. Quist and Drake’s liability for indemnification under
Section 10.1 hereof shall be limited to an offset by JMAR against the CORTS Payments.

11. Miscellaneous Provisions.

11.1. Waiver and Amendment. Any term or provision of this Agreement may be waived at any
time by the party which is entitled to the benefits thereof, but only in a writing signed by such
party, and this Agreement may be amended or supplemented at any time, but only by written agreement
of Quist and Drake and JMAR. Any such waiver with respect to a failure to observe any such
provision shall not operate as a waiver of any subsequent failure to observe such provision unless
otherwise expressly provided in such waiver.

11.2. Expenses. Except as otherwise provided in this Agreement, Quist and Drake and JMAR
shall pay their respective expenses separately incurred in connection with this Agreement and the
transactions contemplated hereby and thereby.

11.3. Entire Agreement. This Agreement and the additional written agreements called for
herein together contain the entire agreement between Quist and Drake and JMAR with respect to the
transfer of the Transferred Technology and the license of the Licensed Technology and the related
transactions and supersede all prior arrangements or understandings with respect thereto, including
the Letter Agreement, dated April 16, 2004, between JMAR and Quist and Drake and the Alliance
Agreement, and the Original Agreement. There have been no oral representations or warranties and
neither party has relied on any representation not contained herein.

11.4. Assignment. This Agreement and each other agreement entered into pursuant hereto and
all of the provisions hereof and thereof shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns, but neither this Agreement
nor any of the rights, interests or obligations hereunder and thereunder, shall be assigned by
either party hereto or thereto without the prior written consent of the other party; provided
however that Quist and Drake may assign its rights and obligation hereunder or under the Consulting
Agreement to a corporation or limited liability company controlled by Quist and Drake. Quist and
Drake hereby agree that notwithstanding the foregoing or the fact that this Agreement shall have
been executed by JMAR directly, JMAR may, at its option, cause the transactions contemplated hereby
to be consummated by (i) a newly-formed subsidiary or subsidiaries of JMAR to be organized for the
purpose of consummating this transaction or (ii) any other Affiliated corporation of JMAR;
provided, however, that JMAR’s obligations shall be retained or guaranteed by JMAR. This Agreement
is not intended to confer upon any other party, except the parties hereto, any rights or remedies
hereunder.

11.5. Counterparts. This Agreement may be executed in any number of counterparts, each of
which independently shall have the same effect as if it were the original and all of which taken
together shall constitute one and the same document. Executed signature pages which are transmitted
by facsimile to the other party shall be deemed to have been delivered on the date so transmitted
provided that an originally executed signature is delivered to the other party within three (3)
business days thereafter.

11.6. Notices. All notices, consents, requests, instructions, approvals and other
communications provided for herein shall be validly given, made or served, if in writing and
delivered personally, sent by registered or certified mail, postage prepaid, sent by established
overnight delivery service, or transmitted by fax (except for legal process) to:

If to JMAR:

JMAR Technologies, Inc.

5800 Armada Drive

Carlsbad, California 92008

Attention: General Counsel

Fax: 760-602-3299

If to Quist and Drake:

Gregory M. Quist

2166 Weiss Way

Escondido, California 92029

Fax: 760-746-1942

David A. Drake

325 Rock Ridge Place

Escondido, California 92027

Fax: 760-489-6583

With a copy to:

Harry J. Proctor, Esq.

Edward J. McIntyre, Esq.

Solomon Ward Seidenwurm & Smith, LLP

401 B Street, Suite 1200

San Diego, CA 92101

Fax: 619-231-4755

or to such other address or fax number as any party hereto may, from time to time, designate in a
written notice given in a like manner. Notice given by mail as set out above shall be deemed
delivered three (3) days after the date it is postmarked. Notice given by overnight delivery
service shall be deemed delivered when received. Notice given by fax shall be deemed given when
transmitted, provided that the sender retains a written confirmation of such transmission and mails
an original thereof to the other party within one (1) business day after transmission.

11.7. Interpretation. The parties acknowledge that this Agreement has been negotiated by
both parties and that neither this Agreement nor any of its provisions should be interpreted for or
against any party on the basis said party or its attorney drafted the Agreement or the provision in
question.

11.8. Severability. If any provision of this Agreement is declared by a court of competent
jurisdiction or arbitrator to be invalid, void or unenforceable, the remaining provisions of this
Agreement nevertheless will continue in full force and effect without being impaired or invalidated
in any way.

11.9. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of California.

11.10. Dispute Resolution.

a. Disputes. The handling and resolution of any and all disputes, claims and causes of
action of any nature whatsoever arising from or in connection with this Agreement (the
“Dispute”) shall be governed exclusively by and settled in accordance with the provisions of
this Section 11.10.

b. Negotiation. The Parties shall make a good faith attempt to resolve any Dispute
arising out of or relating to this Agreement through informal negotiation between
appropriate representatives from each party. Within five (5) days after Notice of a Dispute
is given by either Party to the other Party, representatives of each Party with the
authority to resolve the Dispute shall meet and make a good faith attempt to resolve such
dispute and shall continue to negotiate in good faith in an effort to resolve the Dispute or
renegotiate the applicable section or provision without the necessity of any formal
proceedings. If after five (5) days from the Notice of a Dispute either Party feels that
such negotiations are not leading to a resolution of the Dispute, such Party may send a
Notice to the other Party requesting mediation as set forth in Section 11.10(d), below.

c. Information Requests. During the course of negotiations under Section 11.10, any
and all reasonable requests made by one Party to the other for information, including
requests for copies of relevant documents, shall be honored by the other Party. The specific
format for such information will be left to the reasonable discretion of the designated
negotiating senior executives of the Parties, and may include, for example, the preparation
of agreed upon statements of fact or written statements of position furnished to the other
party.

d. Mediation. In the event that any Dispute is not settled by the Parties within five
(5) days after the first meeting of the negotiating senior executives, a Party may demand
mediation and the Parties will attempt in good faith to resolve such Dispute by nonbinding
mediation using a mediator employed by JAMS, with the specific mediator agreed to by the
parties. The mediation shall be held at a mutually agreeable location in San Diego, and be
held within ten (10) days after the demand for mediation. Except as provided below in
Section 11.10(e), no litigation for the resolution of such dispute may be commenced until
the Parties try in good faith to settle the Dispute by such mediation in accordance with
this Section and either Party has concluded in good faith that amicable resolution through
continued mediation of the matter does not appear likely. The costs of mediation shall be
shared equally by the Parties to the mediation. Any settlement reached by mediation shall be
recorded in writing, signed by the Parties, and shall be binding on them.

e. The Parties by mutual written agreement may extend any of the time periods set forth
in Section 11.10(a) through (d).

f. Legal Proceedings. In the event that any Dispute is not settled by the Parties
through mediation as outlined in Section 11.10, either Party may institute legal proceedings
for that Dispute in a court of competent jurisdiction.

11.11. Attorneys Fees and Expenses of Litigation. In the event suit is commenced to
enforce or contest this Agreement, or any portion thereof, the prevailing party in such suit shall
be entitled to recover from the non-prevailing party all fees, costs and expenses of enforcing any
right of such prevailing party under and with respect to this Agreement, including without
limitation, such reasonable fees and expenses of attorneys and accountants, which shall include,
without limitation, all fees, costs and expenses of appeals.

11.12. Force Majeure. Whenever a period of time is prescribed for action by a party
hereunder, such party shall not be responsible for, and there will be excluded from the computation
for such period of time, any delays due to an event of force majeure, including but not limited to
strikes, riots, acts of God, war, governmental laws, regulations or restrictions of general
application to the public at large, or any other causes beyond the control of such party.

Executed to be effective as of the Effective Date.

JMAR TECHNOLOGIES, INC.

By: /s/ RONALD A. WALROD

	 	 	 	Ronald A. Walrod, President and

Chief Executive Officer

/s/ GREGORY M. QUIST

	 	 	 	Gregory M. Quist

/s/ DAVID A. DRAKE

	 	 	 	David A. Drake

1

Exhibit A

Consulting Agreement

2EX-10.2

CONSULTING AGREEMENT FOR TECHNICAL OR OTHER SERVICES

EFFECTIVE DATE: January 31, 2005

This Consulting Agreement for Technical or Other Services (the “Agreement”) is made by and
between JMAR Technologies, Inc., a Delaware corporation (“the Company”), and The LXT
Group, a California general partnership (the “Consultant”) as follows:

1. Engagement of Services and compensation. For the period commencing on the
Effective Date and continuing until December 31, 2005, the Company hereby engages Consultant to
perform at least 1100 hours of services for compensation equal to $110 per hour, for aggregate
compensation for services rendered of $121,000. Such compensation shall be paid by the
15th day of each month for hours billed for the agreed-upon tasks finished in the
preceding month. The Company intends to assign tasks that can be completed within the month in
which they are undertaken. Although the tasks and the number of hours assigned to Consultant may
fluctuate from month-to-month, the Company agrees to provide Consultant with agreed-upon
assignments totaling a minimum of fifty (50) hours per month. If for whatever reason Company fails
to provide Consultant 1100 hours of agreed-upon assignments during the term of this agreement,
Company is nonetheless obligated to pay Consultant for 1100 hours of service. Consultant shall
keep records of the hours devoted to such services and will provide a summary to the Company at
such intervals as the Company may reasonably request, but no more than once in a thirty (30) day
period. The initial tasks to be performed by Consultant are described in attached Exhibit A, which
is incorporated herein by this reference. The Company and Consultant will, on at least a monthly
basis, agree on the tasks and the estimated hours for such tasks and shall describe those tasks
and hours on a modified Exhibit A (“Project Assignment(s)”). Subject to the terms of this
Agreement, Consultant, through individuals designated by the Company as to specific matters, will
work on the tasks set forth in Exhibit A or such other Project Assignment(s) accepted by Consultant
within the agreed-upon estimated hours and by the completion dates set forth therein. If it
appears that an agreed-upon task will exceed the estimated agreed-upon hours by 25%, Consultant
will so advise the Company and the Company can then determine whether Consultant should continue
with the task. If the parties agree on another Project Assignment, they shall execute a revised
Exhibit A and this Agreement shall be deemed modified to include such Project Assignment. Any
services rendered after December 31, 2005 or exceeding 1100 hours shall be compensated separately
at the rates agreed upon in writing between the parties, but in all other respects shall be subject
to the terms and provisions of this Agreement. If Company requires Consultant to travel in
connection with any Project Assignment, Company will pay Consultant for such travel time up to a
maximum of eight (8) hours a day.

2. Expenses. Consultant will be reimbursed only for expenses which are expressly
provided for in this Agreement or which have been approved in advance orally or in writing by the
Company, including travel expenses, provided Consultant has furnished such documentation for
authorized expenses as the Company may reasonably request. Consultant shall invoice the Company
monthly for expenses and shall provide such reasonable receipts or other documentation of expenses
as the Company might request, including copies of time records.

3. Company’s Proprietary Rights. 

3.1 During the term of this Agreement, Consultant may receive and otherwise be exposed to
information regarding the patents, trade secrets, technology and business of the Company.
Consultant therefore agrees that all Proprietary Information (as defined in Section 3.2), whether
presently existing or developed in the future, whether or not patentable or registrable under
copyright law, shall be the sole property of the Company, and that the Company shall be the sole
owner of intellectual property and other rights in connection with such Proprietary Information.

3.2 “Proprietary Information” includes any information created, discovered, developed, or
otherwise known to the Company (including without limitation information created, discovered,
developed or made known to Consultant or the Company as a result of the provision of Consultant’s
services hereunder), and any information assigned or otherwise conveyed to the Company by another
entity that has commercial value in the business in which the entity is engaged. “Proprietary
Information” shall not, however, include any information in the public domain or known in the trade
or industry or known to Consultant before April 16, 2004.

3.3 By way of illustration, but not limitation, Proprietary Information specifically includes
inventions, developments, designs, applications, improvements, trade secrets, formulae, ideas,
know-how, methods or processes, discoveries, techniques and data developed by Consultant which has
arisen from the performance of its services under this Agreement (hereinafter collectively referred
to as “Inventions”); information regarding plans for research, development, new products, marketing
and selling business plans, budgets and unpublished financial statements, licenses, prices and
costs, suppliers and customers; and information regarding the skills and compensation of employees
of the Company.

4. Recognition of Company’s Rights; Nondisclosure.

4.1 Consultant agrees not to reproduce Proprietary Information in any format, except as
necessary for Consultant’s performance of its services hereunder.

4.2 During the term of this Agreement and after its termination, Consultant will keep in
confidence all Proprietary Information and shall not disclose to any third party any Proprietary
Information without the prior written consent of the Company. Consultant shall not use any
Proprietary Information without the prior written consent of the Company, unless such actions are
required in the ordinary course of performing its services for the Company pursuant to this
Agreement.

4.3 Consultant agrees not to disclose, without the prior written consent of the Company the
terms and conditions under which Consultant will provide services in connection with this Agreement
other than to its professional service providers.

5. Nondisclosure of Third-Party Information. Consultant understands that the Company
has received, and in the future will receive, information from third parties that is confidential
or proprietary (“Third-Party Information”). Consultant recognizes the Company’s duty to maintain
the confidentiality of such information. During the term of this Agreement and thereafter,
Consultant will hold Third-Party Information in confidence and will not disclose or use Third-Party
Information except as permitted by the agreement between the Company and such third party as to
which Consultant has been provided written notice, and as necessary for performing its services
under this Agreement, unless expressly authorized to act otherwise by a written statement of an
officer of the Company.

6. Assignment of Proprietary Rights.

6.1 Consultant agrees to disclose to the Company, and hereby assigns to the Company,
Consultant’s entire right, title and interest in and to any and all Inventions which are related to
the scientific and other business programs of the Company (and all proprietary rights with respect
thereto), including all copyrights, trademarks and other intellectual property rights contained
therein, whether or not patentable, which are made, conceived of, or reduced to practice or learned
by Consultant, either alone or jointly with others in the course of performing his services
hereunder (the “Work Product”). Consultant agrees that all such Work Product is the sole property
of the Company unless otherwise agreed.

6.2 This Article 6 shall not apply to Inventions which are not related to or useful in the
scientific and other business programs of the Company, or which do not result from the services
performed by Consultant.

6.3 Consultant understands that, to the extent this Agreement shall be construed in accordance
with the laws of any state which precludes a requirement in an agreement to assign certain classes
of inventions made by an individual acting as an Consultant, this Article 6 shall be interpreted
not to apply to any invention which a court rules and/or the Company agrees falls within such
classes.

7. Enforcement of Proprietary Rights; Appointment as Agent.

7.1 Consultant agrees to assist the Company at the Company’s expense (which may include
compensation at the rate set forth in Section 1 above) in obtaining and enforcing United States and
foreign patents and other intellectual property rights and protections relating to the Work Product
in all countries, including the agreement to execute, verify and deliver such documents and perform
such other acts for the Company (including appearing as a witness) which are necessary to apply,
obtain, sustain, and enforce such patents and other intellectual property rights and protections on
the Work Product. Consultant’s obligation to assist the Company as described in this Article 7
shall continue beyond the termination of this Agreement.

7.2 If the Company is unable, after reasonable effort, to secure Consultant’s signature on any
document needed to apply for, prosecute or defend any patent or other intellectual property right
or protection relating to Consultant Work Product, Consultant hereby designates and appoints the
Company and its duly authorized officers and agents as its agent and attorney in fact to execute,
verify and file applications, and to do all other lawfully permitted acts necessary to protect the
Company’s intellectual property rights in the Work Product with the same legal force and effect as
if executed by Consultant.

8. Obligation to Keep Company Informed. During the term of this Agreement, Consultant
shall promptly disclose to the Company any and all Inventions, whether or not patentable, of which
Consultant becomes aware in the performance of its services; however, Consultant shall not be
obligated to disclose information received by Consultant from others under a contractual obligation
of confidentiality.

9. Ownership of Work Product. To preclude any possible uncertainty, Consultant
agrees to execute, at the Company’s request and expense, all documents and other instruments
necessary to effectuate any assignment of the Work Product pursuant to Section 6 of this Agreement,
including without limitation, the copyright assignment set forth as Exhibit B (“Assignment of
Copyright”). In the event that Consultant does not, for any reason, execute such documents within
a reasonable time of the Company’s request, Consultant hereby irrevocably appoints as Consultant’s
attorney-in-fact for the purpose of executing such documents on Consultant’s behalf, which
appointment is coupled with an interest.

10. Independent Contractor Relationship. Consultant’s relationship with the Company
is that of an independent contractor, and nothing in this Agreement is intended to, or should be
construed to, create a partnership, agency, joint venture or employment relationship. Consultant
will not be entitled to any of the benefits which the Company may make available to its employees,
including, but not limited to, group health or life insurance, profit-sharing or retirement
benefits. Consultant is not authorized to make any representation, contract or commitment on
behalf of the Company unless specifically requested or authorized in writing to do so by a Company
officer. Consultant is solely responsible for, and will file, on a timely basis, all tax returns
and payments required to be filed with, or made to, any federal, state or local tax authority with
respect to the performance of services and receipt of fees under this Agreement. Consultant is
solely responsible for, and must maintain adequate records of, expenses incurred in the course of
performing services under this Agreement. No part of Consultant’s compensation will be subject to
withholding by the Company for the payment of any social security, federal, state or any other
employee payroll taxes. The Company will regularly report amounts paid to Consultant by filing
Form 1099-MISC with the Internal Revenue Service as required by law.

11. Confidential Information. Consultant agrees to hold the Company’s Confidential
Information in confidence and not to disclose such Confidential Information to any third parties.
“Confidential Information” as used in this Agreement shall mean all information disclosed by the
Company to Consultant that is not generally known in the Company’s trade or industry and shall
include, without limitation, (a) concepts and ideas relating to the development and distribution of
content in any medium or to the products or services of the Company or its subsidiaries or
affiliates; (b) trade secrets, drawings, inventions, know-how, software programs, and software
source documents; (c) information regarding plans for research, development, new service offerings
or products, marketing and selling, business plans, business forecasts, budgets and unpublished
financial statements, licenses and distribution arrangements, prices and costs, suppliers and
customers; (d) existence of any business discussions, negotiations or agreements between the
parties; and (e) any information regarding the skills and compensation of employees, contractors or
other agents of the Company or its subsidiaries or affiliates. Confidential Information also
includes proprietary or confidential information of any third party who may disclose such
information to the Company or Consultant in the course of the Company’s business. Consultant’s
obligations set forth in this Section 11 shall not apply with respect to any portion of the
Confidential Information that Consultant can document by competent proof that such portion: (a) was
in the public domain at the time it was communicated to Consultant by the Company; (b) entered the
public domain through no fault of Consultant; (c) was in Consultant’s possession free of any
obligation of confidence at the time it was communicated to Consultant by the Company; (d) was
rightfully communicated to Consultant free of any obligation of confidence subsequent to the time
it was communicated to Consultant by the Company; (e) was independently developed by employees,
partners or agents of Consultant; or (f) was communicated by the Company to an unaffiliated third
party free of any obligation of confidence. In addition, Consultant may disclose the Company’s
Confidential Information in response to a valid order by a court or other governmental body, as
otherwise required by law. All Confidential Information furnished to Consultant by the Company is
the sole and exclusive property of the Company. Upon request by the Company, Consultant agrees to
promptly deliver to the Company the original and any copies of the such Confidential Information.

12. Successors and Assigns. Consultant may not subcontract or otherwise delegate its
obligations under this Agreement without the Company’s prior written consent. Subject to the
foregoing, this Agreement will be for the benefit of the Company’s successors and assigns, and will
be binding on Consultant’s assignees. Despite any other provision of this Agreement to the
contrary, Consultant may assign this Agreement and delegate its duties hereunder to any corporation
or limited liability company controlled by Greg Quist and David Drake

13. Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be delivered as follows with notice deemed given as indicated: (i) by personal delivery
when delivered personally; (ii) by overnight courier upon written verification of receipt; (iii) by
telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or
(iv) by certified or registered mail, return receipt requested, upon verification of receipt.
Notice shall be sent to the addresses set forth below or such other address as either party may
specify in writing.

14. Governing Law. This Agreement shall be governed in all respects by the laws of
the United States of America and by the laws of the State of California, as such laws are applied
to agreements entered into and to be performed entirely within California between California
residents.

15. Severability. Should any provisions of this Agreement be held by a court of law
to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining
provisions of this Agreement shall not be affected or impaired thereby.

16. Waiver. The waiver by the Company of a breach of any provision of this Agreement
by Consultant shall not operate or be construed as a waiver of any other or subsequent breach by
Consultant.

17. Injunctive Relief for Breach. Consultant’s and Company’s obligations under this
Agreement are of a unique character that gives them particular value; breach of any of such
obligations will result in irreparable and continuing damage to the Company or Consultant for which
there will be no adequate remedy at law; and, in the event of such breach, the Company or
Consultant will be entitled to seek injunctive relief and/or a decree for specific performance, and
such other and further relief as may be proper (including monetary damages if appropriate).

18. Entire Agreement. This Agreement constitutes the entire agreement between the
parties relating to this subject matter and supersedes all prior or contemporaneous oral or written
agreements concerning such subject matter. The terms of this Agreement will govern all services
undertaken by Consultant for the Company; provided, however, that in the event of any conflict
between the terms of this Agreement and any Project Assignment, the terms of the applicable Project
Assignment will control. This Agreement may only be changed by mutual agreement of authorized
representatives of the parties in writing.

In Witness Whereof, the parties have executed this Agreement as of the Effective
Date.

	 	 	 
	“Company”

	 	“Consultant”
	 
	 	 
	JMAR Technologies, INC.

	 	The LXT Group
	 
	 	 
	By: /s/ RONALD A. WALROD

	 	By: /s/ GREG QUIST
	 
	 	 
	Name: Ronald A. Walrod

	 	Name: Greg Quist, general partner
	 
	 	 
	Title: Chief Executive Officer

Escondido, California 92029

	 	2166 Weiss Way

	 
	 	 
	5800 Armada Drive

Carlsbad, California 92064

	 	

By: /s/ DAVID DRAKE
	 
	 	 
	
 
	 	Name: David Drake, general partner

	 	325	 	Rock Ridge Place

Escondido, California 92029

1

Exhibit A

DESCRIPTION OF SERVICES/PROJECT ASSIGNMENT

UNDER CONSULTING AGREEMENT FOR TECHNICAL AND OTHER SERVICES

Dated: January ___, 2005

description of services/project:

Schedule of Work:

In Witness Whereof, the parties have executed this Exhibit A to Consulting Agreement for
Technical or Other Services as of the date first written above.

	 	 	 
	“Company”

	 	“Consultant”
	 
	 	 
	JMAR Technologies, INC.

	 	The LXT Group

By: By:     

	 	 	 
	Name:     

	 	Name: Greg Quist, general partner
	 
	 	 
	Title:     

	 	

By:     

Name: David Drake, general partner

2

Exhibit B

ASSIGNMENT OF COPYRIGHT

For good and valuable consideration which has been received, the undersigned sells, assigns and
transfers to the Company and its successors and assigns, the copyright in and to the following
work, which was created by the following indicated author(s):

Title:

Author(s):

Copyright Office Identification No. (if any):

and all of the right, title and interest of the undersigned, vested and contingent, therein and
thereto.

Executed this      day of      , 2005.

Signature:

Printed Name:

3

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