Items 1.01 Entry into a Material Definitive Agreement.

Grant of Stock Options

On July 25, 2008 (the "Effective Date"), Maggie Tham and William Wittmeyer were each granted an option to acquire 500,000 shares of common stock of Electronic Sensor Technology, Inc. (the "Registrant"), par value $0.001 per share, at an exercise price of $0.03 per share (which was the closing price of the Registrant's common stock on the Effective Date), under the Registrant's 2005 Stock Incentive Plan. The option shares for each of Ms. Tham and Mr. Wittmeyer will vest as follows: 25% will vest on July 25, 2009, 25% will vest on July 25, 2010, 25% will vest on July 25, 2011 and 25% will vest on July 25, 2012. The option grants were evidenced by Notices of Grant of Stock Option and Option Agreements substantially in the form attached as Exhibit 10.2 to the annual report of the Registrant on Form 10-KSB for the fiscal year ended December 31, 2004 filed with the Commission on April 15, 2005.