Consulting Agreement between Francis Chang and Electronic Sensor Technology, Inc. (November 2006)

Summary

This agreement outlines the consulting arrangement between Francis Chang and Electronic Sensor Technology, Inc. after Chang's retirement. Chang will serve as an in-house consultant for six months, from November 1, 2006, to April 30, 2007, focusing on stock option processing, marketing strategies in China, executive selection, and budget planning. He will be paid $3,000 bi-weekly on a retainer basis. Either party may terminate the agreement with 30 days' notice. The arrangement is informal and based on mutual understanding.

EX-10.1 2 exh10-1.txt LETTER AGREEMENT EXHIBIT 10.1 ------------ November 1, 2006 [ELECTRONIC SENSOR TECHNOLOGY, INC. LOGO] Teong Lim President Electronic Sensor Technology, Inc. Re: Consulting Arrangement Dear Teong: This is to summarize the arrangement for the consulting services after my retirement effective November 1, 2006 based on the discussions we had in last few weeks as follows: 1. I will accept an offer to be an in-house consultant for a period of six (6) month from November 1, 2006 to April 30, 2007. The main areas that I will continue to get involved and to concentrate my efforts will include the processing and issuance of the stock option grants to board directors and key employees when the SB-2 filing is approved by SEC; coordinating and advising on the marketing strategies in China and setting up the sales sub-channels as well as entering into new market segments; advising on the selection of the new COO/CEO; help establishing the 2007 operating budgets, and other topics or projects that the Company may be benefited from my experiences. 2. The above arrangement will be on a retainer basis. My fee shall be equal to approximately half of my current compensation, i.e. $3000 bi-weekly, payable also bi-weekly to coincide with the company payrolls. 3. This is an informal arrangement between us and it can be terminated any time by either party with a 30-day notice. Should you agree that the above is the understanding between us, please confirm this by signing at the space provided below and return a copy of this letter to me for the record. Sincerely, /s/ Francis Chang ----------------- Francis Chang Agreed and Accepted: /s/ Teong Lim - ---------------------------------- Teong Lim, President Electronic Sensor Technology, Inc.