Document:

EX-10.30

Exhibit 10.30

Clear Skies Group, Inc.

CONTRACT FOR CONSULTING SERVICES

	 	 	 	 	 	 	 
	Name of Consultant:

	 	Joseph Abrams
	 	Dated as of:
	 	November 1, 2007
	 

	 	 
	 	 	 	 
	Address:

	 	131 Laurel Grove Ave.	 	 	 	 
	 

	 	Kentfield, CA 94904	 	 	 	 
	Daytime Telephone #:

	 	415-258-9117	 	 	 	 
	 

	 	 	 	 	 	 

Clear Skies Group, Inc., a New York corporation (the “Company”), having an office at 5020 Sunrise
Highway, Suite 227, Massapequa Park, NY, 11762, and Joseph Abrams, an individual with the business
address set forth above (“Consultant”), hereby agree as follows:

1. Services and Fees: The Description of Work, which is Exhibit A to this Contract for
Consulting Services (“Contract”), describes the services that Consultant will perform and the fees
which the Company will pay in return. If the Company and Consultant anticipate working beyond the
scope of this agreement, additional exhibits may be made a part of this contract for such
additional projects, although each additional exhibit must be approved by each party by signature
on each exhibit. Consultant is an independent contractor, not an employee of the Company. No
employment relationship is created by this Contract. The parties acknowledge that the Company is
contemplating a merger with a wholly owned subsidiary of a yet to be identified publicly traded
company (“Pubco”) and that, as used herein, the “Company” includes Pubco following such merger.

2. Term: Consultant will begin work as of November 1, 2007 and, unless terminated sooner,
the Contract will end November 1, 2008 (such period, the “Term”).

3. Work: The scope of work shall be found in the Description of Work in Exhibit A.

4. Relationship of Parties:

     (a) Consultant, as used in this Contract, means Joseph Abrams in his individual capacity.

     (b) Consultant shall retain independent professional status throughout this Contract and shall
use its own discretion in performing the tasks assigned.

     (c) Consultant has never been an employee of the Company and, in any case, is ineligible for
any of the Company’s employee benefits. As Consultant is not a Company employee, Consultant is
responsible for paying all required state and federal taxes.

     (d) The Company shall determine the method, details and means of performing the services
hereunder. Consultant shall remain responsible for performing all tasks contemplated by this
Contract.

 

 

     (e) Consultant shall perform the services required by this Contract at any place or location
and at such times as Consultant and the Company shall reasonably determine. The Company and
Consultant shall reasonably cooperate to make facilities available to Consultant; in no event shall
the Company’s providing such facilities be used as evidence of an employer/employee relationship.

5. Indemnification: Consultant agrees to be responsible for its own actions. The Company
agrees to be responsible for its own actions. Each of the Company and Consultant (in such capacity,
the “Indemnifying Party”) agrees to indemnify and hold harmless the other party, together with such
other party’s directors, officers, agents and employees (in such capacity, collectively, the
“Indemnified Parties”) from and against any and all claims, causes of action, liabilities,
lawsuits, demands and damages (collectively, “Claims”), including without limitation, any and all
court costs and reasonable attorney’s fees, in any way related to or arising out of or in
connection with this Agreement, including without limitation (i) any negligent act, omission, or
willful misconduct of the Indemnifying Party in the performance of this Contract and (ii) the
Indemnifying Party’s failure to comply with federal, state or local law; provided, however, that
the indemnification provided for in this Section 5 shall not apply to the extent that a Claim is
caused by the Indemnified Parties’ gross negligence or willful misconduct or other material breach
hereof.

6. Confidentiality:

     (a) Consultant agrees not to disclose any Clear Skies, Inc Confidential Information and to
take all reasonable precautions to prevent its unauthorized dissemination, both during and after
the Term.

     (b) Consultant (i) shall use the Confidential Information solely for the purpose of performing
its consulting services to the Company under this Contract, (ii) shall keep the Confidential
Information confidential, and (iii) shall not disclose or use for purposes other than performing
its consulting services hereunder any of the Confidential Information in any manner whatsoever. In
particular, without limitation, Consultant shall maintain the Confidential Information in
confidence and limit its use to the purposes contemplated by this Contract using at least the same
degree of care as it employs in maintaining as secret its own trade secret, proprietary and
confidential information, but always at least a reasonable degree of care.

     (c) Each of the Company and Consultant agrees to keep the terms of this Contract confidential,
except as may be required by law or necessary or appropriate in connection with any due diligence
production or similar exercise where the recipient of such information has entered into a
confidentiality agreement restricting the further disclosure or misuse of such information.

     (d) In the event that Consultant is requested or required (by oral questions, interrogatories,
requests for information or documents pursuant to legal proceedings, subpoena, civil investigative
demand or other similar process) to disclose any of the Confidential Information, Consultant shall
provide the Company with prompt written notice of any such request or requirement so that the
Company may seek a protective order or other appropriate remedy and/or waive compliance with the
provisions of this Contract. If, in the

 

 

absence of a protective order or other remedy or the receipt of a waiver by the Company,
Consultant is nonetheless, upon the advice of counsel, required to disclose the Confidential
Information to any tribunal or stand liable for contempt or suffer other censure or penalty, then
Consultant may, without liability hereunder, disclose to such tribunal only that portion of the
Confidential Information which such counsel advises Consultant that it is required to disclose;
provided, that Consultant exercises its best efforts to preserve the confidentiality of the
Confidential Information, including, without limitation, by cooperating with the Company to obtain
an appropriate protective order or other reliable assurance that confidential treatment will be
accorded the Confidential Information by such tribunal.

     (e) As used in this Contract, “Confidential Information” means all nonpublic information
concerning the Company’s business or affairs, financial condition, operations, assets and
liabilities, and other matters, including information relating to the research, development,
products, methods of manufacture, trade secrets, business plans, customers, finances, and personnel
data. “Confidential Information” does not include information which (i) is or becomes generally
available to the public other than as a result of a breach of this Contract, (ii) was within the
possession of Consultant prior to its being furnished to Consultant by or on behalf of the Company,
provided that the source of such information was not bound by a confidentiality agreement with or
other contractual, legal or fiduciary obligation of confidentiality to the Company or any other
party with respect to such information, (iii) is or becomes available to Consultant on a
non-confidential basis from a source other than the Company, provided that such source was not
bound by a confidentiality agreement with or other contractual, legal or fiduciary obligation of
confidentiality to the Company or any other party with respect to such information, or (iv) is
disclosed by Consultant with the Company’s prior written approval..

     (f) All Confidential Information remains the property of the Company and no license or other
rights in the Confidential Information is granted hereby. All information is provided “AS IS” and
without any warranty, express, implied, or otherwise, regarding its accuracy or completeness.
Further, upon the Company’s written request, Consultant agrees to return to the Company all
Confidential Information.

     (g) Consultant acknowledges that it is aware that the United States securities laws prohibit
any person who has material, non-public information from purchasing or selling securities (and
options, warrants and rights relating thereto) on the basis of such information and from
communicating such information to any other person under circumstances in which it is reasonably
foreseeable that such person is likely to purchase or sell such securities.

7. No Conflict: Consultant represents and warrants that its performance of this Contract
will not conflict with any other contract to which Consultant is bound, and while working on this
Contract, Consultant will not engage in any such consulting services or enter into any Contract
that would materially interfere with the commitment of time and energy required by Consultant to
timely complete Consultant’s obligations under this Contract. The parties acknowledge that
Consultant is performing certain consulting services for Akeena Solar, Inc. (“Akeena”), a direct
competitor of the Company. Nothing contained in this Section 7 shall be construed as modifying any
of Consultant’s obligations under the other provisions of this Contract. Without limiting the
foregoing, Consultant represents, warrants and covenants

 

 

that, in performing his duties under this Contract, he will not breach any agreement with, or other
obligation owed to, Akeena.

8. Miscellaneous:

     (a) Assignment. Consultant may not assign or delegate its rights or obligations under this
Contract without the Company’s prior written consent.

     (b) Governing Law. This Contract shall be deemed made in New York. This Contract and any
controversies arising from, or relating to performance under, this Contract shall be governed by
and construed in accordance with the internal laws of the State of New York, applicable to
contracts made in, and to be wholly performed within, such State, without giving effect to such
State’s principles of conflicts of laws.

     (c) Choice of Venue. Any lawsuits with respect to, in connection with, or arising out of,
this Contract shall be brought in a federal or state court sitting in the State, City and County of
New York, having jurisdiction, and each party hereto hereby irrevocably consents to the personal
jurisdiction and venue of any such court as the sole and exclusive forum for the resolution of any
suit, action or proceeding by the parties arising out of or related to this agreement and the
transactions contemplated herein. The Company and Consultant hereby irrevocably consent to the
service of process of any of the aforementioned courts in any such suit, action or proceeding by
mailing of copies thereof by registered or certified mail, postage prepaid, to each of them at its
address set forth above, such service to become effective ten days after such mailing.

     (d) No Jury Trial. EACH PARTY HERETO HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING OUT OF OR IN
CONNECTION WITH THIS CONTRACT AND THE TRANSACTIONS CONTEMPLATED HEREBY.

     (e) Severability. If any provision of this Contract is found by a court of competent
jurisdiction to be unenforceable for any reason, the remainder of this Contract shall continue in
full force and effect.

     (f) Damages Insufficient. The parties understand and agree that money damages would not be a
sufficient remedy for any breach of Section 6 of this Contract and that the enforcing party shall
be entitled to equitable relief, including injunction and specific performance, as a remedy for any
such breach. Such remedies shall not be deemed to be the exclusive remedies for a breach of Section
6 of this Contract but shall be in addition to all other remedies available at law or equity.

     (g) Survival of Terms. The provisions of paragraphs 5, 6, 7, and 8, hereof shall survive
termination of this Contract.

     (h) Complete Understanding; Modification. This Contract and the attached exhibit or exhibits
constitute the full and complete understanding and Contract of the parties relating to the subject
matter hereof and supersede all prior understandings and Contracts

 

 

relating to such subject matter. Any waiver, modification, or amendment of any provision of
this Contract shall be effective only if in writing and signed by both parties. The provisions of
this Contract shall prevail over any conflicting provisions in a purchase order, invoice,
acceptance notice or other document. Each party understands and agrees that no failure or delay by
the other in exercising any right, power or privilege hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise thereof preclude any other or future exercise thereof or
the exercise of any other right, power or privilege hereunder.

     (i) Signature. This Contract may be executed in several counterparts, each of which will be
deemed to be an original, and each of which alone and all of which together, shall constitute one
and the same instrument, but in making proof of this Contract it shall not be necessary to produce
or account for each copy of any counterpart other than the counterpart signed by the party against
whom this Contract is to be enforced. This Contract may be transmitted by facsimile, and it is the
intent of the parties for the facsimile (or a photocopy thereof) of any autograph printed by a
receiving facsimile machine to be an original signature and for the facsimile (or a photocopy
thereof) and any complete photocopy of the Contract to be deemed an original counterpart.

     (j) Limitation of Liability. Neither party shall under any circumstances be liable for any
consequential, indirect, special, incidental or exemplary damages, including without limitation,
any toss of revenues, profits, or business or other economic loss arising out of or in connection
with the services provided hereunder. Consultant’s liability to the Company for any breach of this
Contract, other than a breach of Section 6 or Section 7 hereof, shall be limited to the value of
Consultant’s compensation under this Contract. Similarly, the Company’s liability shall be limited
to its contractual obligation under this agreement.

[Signature page follows immediately]

 

 

     IN WITNESS WHEREOF, each of the undersigned has caused this Contract for Consulting Services
to be executed on its behalf as of the date first above written.

	 	 	 	 	 	 	 
	CLEAR SKIES GROUP, INC.	 	CONSULTANT
	 
	 	 	 	 	 	 
	By:

	 	     /s/ Ezra J. Green
	 	 	 	/s/ Joseph Abrams
	 

	 	 
	 	 	 	 
	 

	 	     signature
	 	 	 	Joseph Abrams
	 
	 	 	 	 	 	 
	Name:

	 	EZRA J. GREEN	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	CEO	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT A

DESCRIPTION OF WORK

(Consulting Services between Clear Skies Group, Inc. and/or a publicly traded
company that will acquire Clear Skies Group, Inc. (collectively, the
“Company”) pursuant to a reverse merger transaction (the “Merger”) and Joseph
Abrams, Consultant.)

	 	 	 
	1.	 	
Services to be provided: Consultant shall render such services to the
Company as may be necessary to complete in a professional manner the
project described as follows:

	 	 	 
	 	a) 	
Help in defining and communication the Company message
	 	 	 
	 	b) 	
Identification of Strategic Growth Areas
	 	 	 
	 	c) 	
Identification of Potential Merger and acquisition
candidates.
	 	 	 
	 	d) 	
Identify Potential Exit Strategies
	 	 	 
	 	e) 	
Help introduce the Company to potential business development
partners
	 	 	 
	 	f) 	
Help with due diligence and negotiations with potential M & A
candidates.
	 	 	 
	 	g) 	
Introduce the Company to potential Capital partners
	 	 	 
	 	h) 	
Help in defining marketing and sales opportunities

	 	 	 
	2.	 	
Compensation:

	 	 	 
	 	i) 	
Immediately upon the execution of the Contract of which the
Exhibit A is a part, Consultant shall be entitled to receive
warrants to purchase 500,000 shares of the Company immediately
following the Merger.
	 	 	 
	 	j) 	
Warrants shall have a strike price of .50 per share.
	 	 	 
	 	k) 	
Warrants shall be in effect for a period of three years.
	 	 	 
	 	l) 	
Shares underlying the warrants shall be included the
Company’s resale registration statement filed in connection with the
PIPE transaction dosing simultaneously with the Merger.
	 	 	 
	 	m) 	
Warrants shall be either cashless or exercised at the option
of the Consultant.

	 	 	 
	3.	 	
Expenses: Although the above fees constitute Consultant’s entire
remuneration for the services under this Contract, Consultant will be
reimbursed for any expenses incurred in connection with this Contract with
prior approval of the Company. If a change in the scope of the work
results in a material increase or decrease in the cost or time for
completion of the services, the fees and schedule may, upon the mutual
written agreement of the parties, be renegotiated.
	 	 	 
	4.	 	
It is understood that should the contemplated Merger not take place, all
obligations under this Contract, other than obligations under Sections 5,
6, 7 and 8 of the Contract (which shall survive any termination of the
Contract), shall be null and void.
	 	 	 

	 	 	 	 
	CLEAR SKIES GROUP, INC	 	
CONSULTANT
	 
	By: 	                                                                             	 	                                                           
                  
Joseph Abrams
	 
	Name: 	                                                                             

 	 	 
	 
	Title:SEVERANCE AGREEMENT AND MUTUAL RELEASE

          This Severance Agreement and Mutual Release ("Agreement") is made and
entered into by and between Barry S. Howe ("Howe") and Electronic Sensor
Technology, Inc., a Nevada corporation (together with its subsidiaries,
collectively, "EST").

                                    RECITALS

          A.   Howe is an employee of EST, the President and Chief Executive
Officer of EST (the "Offices"), and a director of EST ("Director").

          B.   Concurrent with the execution and delivery of this agreement,
Howe will voluntarily resign (i) his employment with EST, (ii) from the Offices
and (iii) as a Director (collectively, the "Resignations").

          C.   Howe and EST desire to settle fully and finally any and all
issues, claims, causes of action, concerns, and differences between them.

                                      TERMS

          NOW, THEREFORE, IN CONSIDERATION of the covenants and promises herein
contained and other good and valuable consideration, and to avoid unnecessary
litigation, it is agreed by and between the parties as follows:

          1.   EST and Howe agree that the Resignations shall become effective
as of July 25, 2008 (the "Effective Date").

          2.   On the Effective Date, EST will pay Howe (i) all accrued salary
and accrued and unused vacation time, in each case through the Effective Date,
totaling Three Thousand Five Hundred Fifty-Seven and 69/00 Dollars ($3,557.69)
of accrued salary, and Twelve Thousand Three Hundred Fifty-Eight and 53/00
Dollars ($12,358.53) for accrued and unused vacation time
<PAGE>
and (ii) a total of Eighty-Two Thousand One Hundred Seventy and 83/00 Dollars
($82,170.83), which is the equivalent of 5.33 months of Howe's salary, as
severance.

          3.   Howe agrees not to file any claim or seek to pursue any claims
which Howe has or claims to have against EST, its officers, its directors or its
shareholders (the "EST Parties") regarding events that have occurred as of or
prior to the date of this Agreement, including, but not limited to, any and all
claims against the EST Parties related or in any manner incidental to Howe's
employment with EST, or the cessation of his employment therefrom, or any
discrimination or harassment he may claim to have encountered in connection
therewith.

          4.   Howe represents that he has not filed any complaints, claims, or
actions against the EST Parties with any state, federal, or local agency or
court, and that, unless EST fails to perform its obligations under this
Agreement, he will not do so at any time hereafter and that if any agency or
court assumes jurisdiction of any complaint, claim, or action against any EST
Party on behalf of Howe, he will direct that agency or court to withdraw from or
dismiss with prejudice the matter.

          5.   Concurrent with the execution of this Agreement, Howe agrees to
return to EST, at EST's offices, all property and information, if any, held by
Howe as a result of his employment with EST.

          6.   Except for the failure of a party to perform his or its
obligations under this Agreement, each of Howe and EST waives all rights he or
it may have under California Civil Code section 1542. Section 1542 provides as
follows:

          "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."

                                        2
<PAGE>
          7.   By waiving the provisions of California Civil Code section 1542,
each of Howe and EST hereby irrevocably and unconditionally releases and forever
discharges the other, and each of its shareholders, directors, officers,
employees (individually or in their representative capacities), representatives,
heirs, and their successors and assigns, and all persons acting by, through,
under, or in concert with any of them from any and all charges, complaints,
claims, and liabilities of any kind or nature whatsoever, whether in tort,
contract, or otherwise, known or unknown, suspected or unsuspected (hereinafter
referred to as "claim" or "claims") which Howe or EST, as the case may be, at
any time heretofore has or claims to have against EST or Howe, respectively,
regarding events that have occurred on or prior to the date of this Agreement,
including, but not limited to any and all claims related to or in any manner
incidental to Howe's employment with EST, the cessation of Howe's employment
with EST, and any discrimination or harassment he may claim to have encountered
in connection therewith, including, but not limited to, that under the Age
Discrimination in Employment Act of 1967 (29 U.S.C. Sections 621, et seq.),
Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the
Civil Rights Act of 1866, the Equal Pay Act of 1963, the Americans with
Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Worker
Adjustment and Retraining Notification Act, the Employee Retirement Income
Security Act of 1974 (except any valid claim to recover vested benefits, if
applicable), any applicable Executive Order program, and their state and local
counterparts, including, without limitation, the California Fair Employment and
Housing Act or any other federal, state or local law, rule, regulation,
constitution or ordinance, or under any public policy or common law or arising
under any practices or procedure of EST. For the avoidance of doubt, neither
party is waiving any rights or claims he or it may have against the other party
for breach of his or its, as the case may be, obligations under this Agreement.

                                        3
<PAGE>
          8.   The parties understand the word "claims" to include all actions,
claims, and grievances, whether actual or potential, known or unknown, and
specifically, but not exclusively, all claims against the other party and
against any of the other party's shareholders, directors, officers, employees
(individually or in their representative capacities), representatives, heirs,
and their successors and assigns, arising out of Howe's employment with EST, the
cessation of his employment with EST, and any discrimination or harassment he
may claim to have encountered in connection with his employment with EST. All
such claims (including related attorneys' fees and costs), other than those
arising as a result of a breach (or alleged breach) of a party's obligations
under this Agreement, are forever barred by this Agreement without regard to
whether those claims are based on any alleged breach of a duty arising in
contract or tort; any alleged unlawful act, including, without limitation,
employment discrimination; any other claim or cause of action; and regardless of
the forum in which it might be brought.

          9.   Howe understands and agrees that he has twenty-one (21) days
within which to consider this Agreement before executing it, whether or not he
has taken that time.

          10.  Each of Howe and EST understands and agrees that he or it has
been advised to consult with an attorney concerning the terms of this Agreement
and that he or it, as the case may be, has done so to the extent that he or it,
as the case may be, deems necessary.

          11.  Each of Howe and EST understands and agrees that he or it, as the
case may be, has carefully read and fully understands all of the provisions of
this Agreement.

          12.  Each of Howe and EST understands and agrees that he or it, as the
case may be, is, through this Agreement, releasing the other party from any and
all claims he or it, as the case may be, may have against the other party (other
than claims arising as a result of the breach (or alleged breach) of this
Agreement by the other party), that he or it, as the case may be,

                                        4
<PAGE>
knowingly and voluntarily agrees to all of the terms set forth in this
Agreement, and that he or it, as the case may be, knowingly and voluntarily
intends to be legally bound by this Agreement.

          13.  The parties have conducted such investigation of the facts
underlying this Agreement and the terms of this Agreement as they see fit.

          14.  Howe understands and agrees that he has a full seven (7) days
following the execution of this Agreement to revoke this Agreement and has been
and hereby is advised in writing that this Agreement shall not become effective
or enforceable until the revocation period has expired. Howe's revocation shall
be made by notifying the EST in writing of his decision to revoke. The
revocation, along with all amounts paid to Howe on the Effective Date as
severance, must be personally delivered to Teong Lim at EST's offices located at
1077 Business Center Circle, Newbury Park, California 91320. Howe understands
that rights or claims under the Age Discrimination in Employment Act of 1967 (29
U.S.C. Sections 621 et seq.) that may arise after the date of this Agreement is
executed are not waived.

          15.  This Agreement and compliance with this Agreement shall not be
construed as an admission by either party of any liability whatsoever, or as an
admission by either party that it violated the rights of the other, or any
person, or violation of any order, law, statute, duty, or contract whatsoever
against either party or any other person. EST specifically disclaims any
liability to Howe or any other person for any alleged violation of the rights of
Howe or any person, or for any alleged violation of any order, law statute,
duty, or contract on the part of EST, its employees or agents or related
companies or their employees or agents.

          16.  Howe acknowledges that he has acquired knowledge of information
relating to the confidential affairs of EST, including, but not limited to,
technical information, intellectual property, business and marketing plans,
strategies, customer information, supplier information,

                                        5
<PAGE>
sales representative information, distributor information, process material,
methodologies, technical materials, manuals and strategic options and models
(collectively, "Confidential Information"). Howe agrees that he (i) will hold
inviolate, keep secret and will not divulge, transmit or otherwise disclose the
Confidential Information (except as legally compelled by court order, and then
only to the extent required, after prompt notice to EST of any such order),
directly or indirectly, without the prior written consent of EST, and (ii) will
not use, directly or indirectly, any Confidential Information.

          17.  Howe shall not take any action to disparage or criticize EST, its
products or the employees, officers, directors, shareholders or customers of EST
or to engage, directly or indirectly, in any other action that injures or
hinders the business of EST, including, without limitation, the solicitation of
employees, customers, suppliers, sales representatives or distributors of EST or
its products. EST shall not, and shall not permit any of its officers, directors
or employees to, take any action to disparage or criticize Howe.

          18.  In the event of the breach or threatened breach of paragraph 16
of this Agreement by Howe or paragraph 17 of this Agreement by Howe or EST, Howe
and EST each acknowledges that the other would have no adequate remedy at law
and, in the event of such breach by Howe or EST, the other would be irreparably
harmed and shall, therefore, be entitled to injunctions, both preliminary and
final, enjoining and restraining such breach or threatened breach. Such remedies
shall be in addition to all other remedies available at law or in equity,
including the right of each of Howe and EST to receive from the other any and
all damages that may be sustained as a result of such breach of contract.

          19.  Each of Howe and EST acknowledges that paragraph 6.1 of the
Bylaws of EST states as follows:

                                        6
<PAGE>
          Indemnification.

          The Corporation shall indemnify its officers and directors
     to the fullest extent permitted by law; provided, however, that
     the Corporation shall only be required to indemnify its officers
     and directors in connection with any action, suit or proceeding
     initiated by such officer(s) or director(s) if such action, suit
     or proceeding was authorized by the Board of Directors. The
     Corporation may, in the discretion of the Board of Directors,
     indemnify its employees, agents and those persons serving in any
     other capacity for or on behalf of the Corporation to the fullest
     extent permitted by law.

          20.  Each of Howe and EST represents and acknowledges that in
executing this Agreement, he or it, as the case may be, does not rely and has
not relied upon any representation or statement made by the other party or by
any of the other party's shareholders, directors, officers, employees or
representatives with regard to the subject matter, basis, or effect of this
Agreement or otherwise, other than those specifically stated in this written
Agreement.

          21.  This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and upon their respective heirs, administrators,
representatives, executors, successors, and assigns. Howe expressly warrants
that he has not and will not transfer to any person or entity any rights, causes
of action, or claims released in this Agreement.

          22.  Should any provision of this Agreement be declared or be
determined by any court of competent jurisdiction to be illegal, invalid, or
unenforceable, the legality, validity, and enforceability of the remaining
parts, terms, or provisions shall not be affected thereby, and said illegal,
unenforceable, or invalid part, term, or provision shall be deemed not to be a
part of this Agreement.

          23.  This Agreement sets forth the entire agreement between the
parties hereto and fully supersedes any and all prior agreements or
understandings, written or oral, between the parties hereto pertaining to the
subject matter hereof.

                                        7
<PAGE>
          24.  This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California.

          PLEASE READ THIS AGREEMENT CAREFULLY. IT CONTAINS A RELEASE OF ALL
KNOWN AND UNKNOWN CLAIMS.

Dated: July 25, 2008                /s/ Barry S. Howe
                                    --------------------------------------------
                                    Barry S. Howe

Dated: July 25, 2008                ELECTRONIC SENSOR TECHNOLOGY, INC.

                                    By: /s/ Teong C. Lim
                                        ----------------------------------------
                                    Name:  Teong C. Lim
                                    Title: President and Chief Executive Officer

                                        8

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