Document:

<PAGE>

                                                                    EXHIBIT 10.1

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE                                             PAGE OF    PAGES

           J                                                       1         3

2. AMENDMENT/MODIFICATION NO.

3. EFFECTIVE DATE

    01-Jun-2005

4. REQUISITION/PURCHASE REQ. NO.

      N00421-JMAR/SAL

5. PROJECT NO.(If applicable)

6. ISSUED BY                                                    CODE  N00421

   NAVAL AIR WARFARE CENTER AD (PAX)
   CODE 25245 BLDG 441
   21583 BUNDY ROAD
   PATUXENT RIVER MD 20670

7. ADMINISTERED BY (If other than item 6)                       CODE  S0701A

   DCM HARTFORD
   130 DARLIN STREET
   EAST HARTFORD CT 06108-3234

8. NAME AND ADDRESS OF CONTRACTOR (No. Street, County, State and  Zip Code)

   JMAR/SAL NANOLITHOGRAPHY INC.
   ROBERT SELZER
   21 GREGORY DRIVE
   SOUTH BURLINGTON VT 05403

    9A. AMENDMENT OF SOLICITATION NO.

    9B. DATED (SEE ITEM 11)

[X] 10A. MOD, OF CONTRACT/ORDER NO.
    N00421-02-D-3189

[X] 10B. DATED (SEE ITEM 13)
    27- Mar-2002

CODE  1XPH2                     FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ ] The above numbered solicitation is amended as set forth in item 14. The
    hour and date specified for receipt of Other

    [ ] is extended.  [ ] is not extended

    Offer must acknowledge receipt of this amendment prior to the hour and date
    specified in the solicitation or as amended by one of the following methods;

    (a) By completing items 8 and 15 , and returning _______ copies of the
    amendment , (b) By acknowledge receipt of this amendment on each copy of the
    offer submitted. or (c) By separate letter or telegram which includes a
    reference to the solicitation and amendment numbers. FAILURE OF YOUR
    ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF
    OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR
    OFFER. If by virtue of this amendment you desire to change an offer already
    submitted, such change may be made by telegramor letter provided each
    telegramor letter makes reference to the solicitation and this amendment and
    is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS ORDERS IT MODIFIES THE
    CONTRACT ORDER NO. AS DESCRIBED IN ITEM 14.

    A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES
       SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

    B. THE ABOVE NUMBERED CONTRACT ORDER IS MODIFIED TO REFLECT THE
       ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation
       date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF
       FAR 43,103(B).

    C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

[X] D. OTHER (Specify type of modification and authority)
       FAR PAR 43.103(a) mutual agreement of both parties.

E.  IMPORTANT: Contractor [ ] is not [X] is required to sign this document and
    return 1 copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings,
    including solicitation/contract subject matter where feasible.)
    Modification Control Number: briscoem056388

The purpose of this modification is to increase the contract ceiling and to
extend the period of performance.

Except as provided herein, all terms and conditions of the document referenced
in Item 9A or 10A, as heretofore changed, remains unchanged and in full force
and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

     /s/ ROBERT A. SELZER, SR VP TECHNOLOGY
     --------------------------------------

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

     /s/ R. SUE RIFFE
     -----------------------------------------

     TEL                    EMAIL

15B. CONTRACTOR/OFFEROR

/s/ ROBERT A. SELZER
-----------------------------------------
(Signature of person authorized to sign)

15C. DATE SIGNED

     20 JUN 2005

16B. UNITED STATES Of AMERICA

     BY /s/ R. Sue Riffe
        -------------------------------------
        (Signature of Contracting Officer)

16C. DATE SIGNED

     28 JUN 05

EXCEPTION TO SF 30              30-105-04          STANDARD FORM 30 (Rev. 10-83)
APPROVED BY OIRM 11-84                             Prescribed by GSA
                                                   FAR (48 CFR) 53.243

<PAGE>

                                                                N00421-02-D-3189

                                                                     Page 2 of 3

SECTION SF 30 BLOCK 14 CONTINUATION PAGE
SUMMARY OF CHANGES

SECTION A - SOLICITATION/CONTRACT FORM

      The total cost of this contract was increased by $7,580,000.00 from
$9,999,999.00 to $17,579,999.00.

SECTION B - SUPPLIES OR SERVICES AND PRICES

    CLIN0001

      The CLIN extended description has changed from Develop, design, and
provide semiconductor chips and related Point X-Ray Lithography Technology,
material and services to Develop, design, and provide semiconductor chips and
related Point X-Ray Lithography Technology, material and services..

      The unit price amount has increased by $10,745,759.00 from $6,834,240.00
      to $17,579,999.00.

      The total cost of this line item has increased by $10,745,759.00 from
      $6,834,240.00 to $17,579,999.00.

    CLIN 0004

      The estimated/max cost has decreased by $2,931,258.00 from $2,931,258.00
      to $0.00.

      The fixed fee has decreased by $234,501.00 from $234,501.00 to $0.00.

      The total cost of this line item has decreased by $3,165,759.00 from
      $3,165,759.00 to $0.00.

SECTION F - DELIVERIES OR PERFORMANCE

The following Delivery Schedule item for CLIN 0001 has been changed from:

<TABLE>
<CAPTION>
DELIVERY DATE        QUANTITY        SHIP TO ADDRESS          UIC
<S>                  <C>             <C>                      <C>
POP 01-APR-2002 TO   N/A             N/A
31-MAR-2005                          FOB: Destination
</TABLE>

To:

<TABLE>
<CAPTION>
DELIVERY DATE        QUANTITY         SHIP TO ADDRESS          UIC
<S>                  <C>              <C>                      <C>
POP 01-APR-2002 TO   N/A              N/A
30-JUN-2007                           FOB: Destination
</TABLE>

The following Delivery Schedule item for CLIN 0002 has been changed from:

<TABLE>
<CAPTION>
DELIVERY DATE        QUANTITY         SHIP TO ADDRESS          UIC
<S>                  <C>              <C>                      <C>
POP 01-APR-2002 TO   N/A              N/A
31-MAR-2005                           FOB: Destination
</TABLE>

<PAGE>

                                                                N00421-02-D-3189

                                                                     Page 3 of 3

To:

<TABLE>
<CAPTION>
DELIVERY DATE        QUANTITY         SHIP TO ADDRESS          UIC
<S>                  <C>              <C>                      <C>
POP 01-APR-2002 TO   N/A              N/A
30-JUN-2005                           FOB: Destination
</TABLE>

The following Delivery Schedule item for CLIN 0003 has been changed from:

<TABLE>
<CAPTION>
DELIVERY DATE        QUANTITY         SHIP TO ADDRESS          UIC
<S>                  <C>              <C>                      <C>
POP 01-APR-2002 TO   N/A              N/A
31-MAR-2005                           FOB: Destination
</TABLE>

To:

<TABLE>
<CAPTION>
DELIVERY DATE        QUANTITY         SHIP TO ADDRESS          UIC
<S>                  <C>              <C>                      <C>
POP 01-APR-2002 TO   N/A              N/A
30-JUN-2007                           FOB: Destination
</TABLE>

SECTION G - CONTRACT ADMINISTRATION DATA

The following have been added by full text:

5252.232-9002 INVOICES FOR CLASSIFIED CONTRACTS (JUL 1992) (NAPS)

To prevent disclosure of classified information, invoices submitted under this
contract shall be so prepared that the supplies or services covered thereby can
be identified only by reference to the contract. For example, the invoices may
state "Contract N _ Item 0001, 100 EA @$1.00 = $100.00" The security
classification shown on the contract shall not appear on the invoice.

The following have been deleted:

5252.232-9002   Invoices for Classified Contracts (Jul 1992)     JUL 1992

(End of Summary of Changes)<PAGE>

                                                                    EXHIBIT 10.2

    APPROVAL OF PRICING FOR FIRST TWO BETA UNITS AND AUTHORIZATION TO PROCEED

The undersigned hereby confirm in writing the total price set forth below for
the first two Beta units as described in the Specifications attached as
Attachment A hereto. The undersigned acknowledge that this price is subject to
adjustment due to change orders agreed to by the parties subsequent to June 28,
2005.

FemtoTrace hereby authorizes JMAR to proceed with the manufacture of the Beta-1
and Beta-2 Units in accordance with the approved Specifications, with such
changes as are approved hereafter by the parties. The following reflects the
pricing and estimated costs for the two Beta units as of June 28, 2005. JMAR
will make adjustments to the total price if and to the extent that the change
orders were not authorized in accordance with the March 2003 Agreement.

                    APPROVED PRICING FOR FIRST TWO BETA UNITS

<TABLE>
<CAPTION>
                              FIRST TWO BETAS
        DESCRIPTION          (EX. B-1 PRICING)
        -----------          -----------------
<S>                          <C>
Labor Hours                        3,968.7
Labor                           $  138,905
Labor Burden                        26,239
Overhead                           262,760
Material                            93,000
NRE                                 24,400
ODC                                  5,000
Consultants                         63,000
G&A                                251,209
                                ----------
Total Cost                         864,513
Cost Absorption (one-time)        (157,341)
                                ----------
Subtotal                           707,172
* Engineering Change Orders     $   53,334
                                ----------
Total including ECOs
(as of June 28, 2005)           $  760,506
                                ==========
</TABLE>

* ECOs include $11,132 in materials for two units, plus associated G&A

<PAGE>

<TABLE>
<S>         <C>
Labor Rate  $35.00
</TABLE>

Rates (per March 2003 Agreement):

<TABLE>
<S>         <C>
Burden       18.89%
OH          159.11%
G&A          40.96%
</TABLE>

<PAGE>

NOTE: THIS ESTIMATE DOES NOT INCLUDE COSTS FOR LABOR AND MATERIAL FOR THE
FOLLOWING ITEMS:

     -  SIM/Calibrant

     -  READ Optics

     -  Mini Pre-concentrator

     -  Hiden probe and RF Head

     -  Vacuum Chamber Flange

     -  Subsequent Engineering Change Orders
        approved in writing by FemtoTrace and JMAR

NOTE: THE PRICE SHALL BE ADJUSTED BY THE EXISTING CHANGE ORDER PROCESS TO
REFLECT ANY COST REDUCTIONS RESULTING FROM THE PERFORMANCE OF WORK BY NORTHROP
GRUMMAN OR ANY OUTSIDE CONTRACTORS HIRED BY OR THROUGH NORTHROP GRUMMAN WHICH IS
IN SUBSTITUTION FOR JMAR WORK THAT IS INCLUDED IN THE FOREGOING PRICING. SUCH
CHANGES SHALL BE PROMPTLY COMMUNICATED TO FEMTOTRACE. ALL PRICING CHANGES ARE
SUBJECT TO AUDIT AT FEMTOTRACE'S REQUEST.

Dated: June 28, 2005

Agreed:

By: /s/ Jack L. Herz
    --------------------
    Jack L. Herz, President & CEO
     FEMTOTRACE, INC.

By: /s/ Ronald A. Walrod
    --------------------
    Ronald A. Walrod, President & CEO
     JMAR Technologies, Inc.

<PAGE>

                                 SPECIFICATIONS
                                   (ATTACHED)

THE SPECIFICATIONS ARE AS PER THE TELECONFERENCE CDR OF TUESDAY JUNE 28,2005, AS
ISSUED PRIOR TO THIS MEETING, AND SUBSEQUENTLY AMENDED PURSUANT TO THIS MEETING
BY JAMIE GRAVELIN.
<PAGE>

                                                       PURCHASE ORDER NO.
                                                           E-0505  JULY 27, 2005

[FEMTOTRACE LOGO]
                                        FEMTOTRACE, INC.

EAST COAST OFFICE, 35 NOVEMBER TRAIL, WESTON, CT 06883
TEL: (203) 226-0804,              FAX: (203) 226-2760

TO:
JMAR TECHNOLOGIES, INC.                   FROM:
5800 ARMADA DRIVE                         FEMTOTRACE, INC.
CARLSBAD, CA 92008                        35 NOVEMBER TRAIL
                                          WESTON, CT 06883

 TEL: (760) 602-3292                      BUYER: JACK L. HERZ, (203) 226-0804
 FAX: (760) 602-3299
E-MAIL: RWALROD@JMAR.COM

<TABLE>
<S>                     <C>                     <C>                             <C>
DELIVER TO ADDRESS:     FemtoTrace, Inc.        3670 West Temple Ave. #2400     Pomona, CA 91768
ATTENTION               Dr. Ara Chutjian
</TABLE>

<TABLE>
<CAPTION>
             DATE REQUIRED                    F.O.B.       SHIPPING METHOD      TERMS        DATE
--------------------------------------  -----------------  ---------------   ------------  ---------
<S>                                     <C>                <C>               <C>           <C>
Ship: Not later than December 15, 2005  S. Burlington, VT    Air Freight     30 days, net  7/27/2005
</TABLE>

<TABLE>
<CAPTION>
                                                        AS PER PROFORMA
                 DESCRIPTION                                INVOICE               UNIT PRICE    QUANTITY  PRICE, U.S. DOLLARS
                                                    ------------------------     ------------   --------  -------------------
<S>                                                 <C>                          <C>            <C>       <C>
Third Beta READ (designated as  EM-2) is for        and E-mails from J.          $ 151,162.00      1         $ 151,162.00
delivery to Consolidated Edison of New York,        Martinez (7-1-05) and T.
Inc.                                                Hall (7-21-05)

There will be no additional price increases         This Purchase Order is
unless FemtoTrace requests a change in              pursuant to the
specifications from those agreed to at the CDR      successful delivery of
of June 27, 2005, and such additional               the first two beta READ
specification and price changes are agreed to       units as per the
in writing by FemtoTrace.                           contract between
                                                    FemtoTrace and JMAR of
                                                    March 18, 2003.

                                                                                                 TOTAL       $ 151,162.00
                                                                                                 -----       ------------
</TABLE>

SUBMITTED BY                      JACK L. HERZ
                                 PRESIDENT & CEO

AUTHORIZED SIGNATURE             /s/ JACK L. HERZ

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