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EXHIBIT 10.1

AGREEMENT IN PRINCIPLE TO ESTABLISH NXCELL

                     AMENDED AGREEMENT IN PRINCIPLE TO FORM
                          NXCELL BATTERIES & POWER INC.
                    (AN ADVANCED BATTERY TECHNOLOGY COMPANY)

GOALS

1.1  To create a world class battery company (NxCell Batteries Inc.) and
     development team with access to international companies using and
     distributing batteries, and focused on immediate product performance driven
     market niches and in the near term opportunities for hybrid electric and
     mini-hybrid (42 volt) electric vehicle applications.

1.2  To develop and commercialize the advanced performance battery technology
     concepts currently under development by Power Technology Inc. (PWTC) in
     conjunction with BC Research (BCR) as soon as possible.

1.3  To finance the company from private placements, strategic partners and
     government incentive programs.

1.4  To add other contingent advanced battery and energy storage system
     technologies presently at the conceptual development stage at BCR.

PREREQUISITES

2.1  To attract and optimise Canadian government funding and tax credits etc.
     NxCell will be a Canadian private corporation allowing for possible
     eligibility as a CCPC after financing.

2.2  To attract private venture capital as soon as possible, PWTC's technology
     will be exclusively and unconditionally licensed to NxCell, and NxCell will
     have the following characteristics:

     (a)  an IP position based on proven technology;

     (b)  a strong commercialisation strategy and a clear focus on an emerging
          market which NxCell could dominate in and this will be for hybrid and
          automotive applications of the future;

     (c)  immediate revenue opportunities which will be through military, marine
          and other special power applications where the technology will be
          proven on a batch production basis; and

     (d)  a strong management and technical team with a solid network in the
          industry and market sectors which will be contributed initially mainly
          by BCR and PWTC either directly or through contract arrangements; and

     (e)  a commercialization and production plan including a pilot plant
          facility capable of scale up to NxCell production plants or
          sub-licensee plants.

SCOPE OF AGREEMENT

3.1  The existing PWTC advanced lightweight lead acid battery technology will be
     exclusively and unconditionally licensed to NxCell.

3.2  BCR will similarly exclusively license any interests it may have in future
     battery technologies where these strategically enhance NxCell' business and
     operating plans..

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3.3  NxCell will be held initially 65% by PWTC, with the remaining 35% held by
     BCR and the founding management and technical team on the understanding
     that BCR will hold at least 25% and approximately 10% will be held by the
     founding management and technical team.

3.4  BCR and PWTC will ensure that NxCell establishes a competent management
     team and Board of Directors capable of commercializing the technology
     successfully. PWTC and BCR will initially each nominate a Board member for
     a 5 member board that is structured towards TSX compliance, and until such
     time as the Board decides otherwise, the President of NxCell shall be a
     Board member.

3.5  BCR and PWTC will develop a viable business plan and marketing strategy
     NxCell which will address all available markets including, the selection of
     an initial focus on accessible niche markets plus a larger market requiring
     the advantages of the core technology and other technologies offered to
     NxCell by its principals.

3.6  BCR will provide under contract technical support required for current PWTC
     initiatives and also provide technical resources under contract to NxCell.
     NxCell will have the right to source work outside BCR.

3.7  BCR and PWTC will work together with the management of NxCell to ensure
     that NxCell is adequately financed with the goal of securing government and
     private financing of $5 million, provided that any equity financing be
     approved by BCR and PWTC.

3.8  BCR will provide management and technical resources to assist the President
     of NxCell in securing financing. The cost of the President and associated
     support will be the responsibility of BCR until such time as NxCell has
     financing in place.

FINANCIAL OBLIGATIONS OF PARTIES

4.1  BCR and PWTC will each be responsible for their own costs until completion
     of an initial financing at which time those personnel key to NxCell
     operations will be offered employment in NxCell and other personnel will
     continue to be involved only through BCR and PWTC contracts.

4.2  Any financial obligations between BCR and PWTC must be settled prior to
     concluding the final agreement to establish NxCell and any outstanding
     balance will be converted to a convertible loan to NxCell.

4.3  BCR will lease to NxCell up to 1000 square feet of office and lab space for
     a term of two years, and the lease cost shall be $1 per year until such
     time as they can secure at least $2 million in third party financing.

TERMS AND CONDITIONS OF PWTC LICENSE

5.1  The license will be exclusive and unconditional with the right to
     sub-license. The license shall include all PWTC's intellectual property
     pertaining to advanced light weight lead acid batteries and specifically
     the exclusive rights to develop, sell and sub-license products using PCT
     Patent Application # US02/30,607 and US Patent #6,060,198 to NxCell. The
     license will be granted for a cash consideration as described in Section
     5.4 and for an initial equity holding as described in Section 3.3. Ten
     percent (10%) of PWTC's shares in NxCell will be held in escrow and will be
     released upon completion of the registration of NxCell's exclusive license
     to PCT Patent Application # US02/30,607 to NxCell. A further 5% will be of
     PWTC;s shares in NxCell will be held in escrow and will be released upon
     the completion of the registration of NxCell's exclusive license to US
     Patent #6,060,198.

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5.2  All sub-licenses and joint ventures shall be negotiated and granted by
     NxCell, and except for North and South America where the terms shall be at
     the discretion of NxCell, NxCell shall be restricted to the following
     conditions unless specifically agreed otherwise by PWTC:

     (a)  PWTC shall receive 50% of all royalties and fees accruing to NxCell
          from sub-licenses;

     (b)  PWTC shall hold a direct interest in any joint ventures equal to that
          of NxCell but NxCell shall have voting control over the combined PWTC
          and NxCell interest, and it is understood that this combined interest
          will be at least 51% in most cases;

     (c)  NxCell will keep PWTC apprised of all third party negotiations and
          PWTC will notify NxCell of any contacts they wish to facilitate, and
          PWTC and NxCell will participate and cooperate in third party
          negotiations as appropriate to each case.

5.3  Notwithstanding Clause 5.2, PWTC may opt to keep the first US$2 million in
     fees from any sub-license granted to a joint venture with CoachHouse of the
     UK, and in this event, NxCell may opt to keep an equivalent amount in fees,
     or an equivalent percentage interest in equity from a future sub-license or
     joint venture.

5.4  NxCell shall pay to PWTC an annual license fee of $120,000 USD for three
     years, payable in equal monthly installments, except that this license fee
     shall only be payable to the extent that the working capital of NxCell
     exceed $1 million USD. This license fee shall provide for NxCell to receive
     marketing efforts and technical direction from key Directors of PWTC.

5.5  Any improvements to the technology, proprietary information or business
     relationships developed or established by NxCell (Improvements) shall be
     the exclusive property of NxCell.

5.6  PWTC and BCR shall have no claim or rights to NxCell's technologies except
     via their ownership in NxCell.

5.7  Provided that the conditions in Item 4.2 are met, PWTC will receive a
     payment equivalent to $6,000 CAD upon signing of the final agreement.

IN WITNESS WHEREOF of the parties have duly executed this Amended Agreement in
Principle the 6'th day of April, 2003:

For POWER TECHNOLOGIES INC.

/s/ Lee Balak
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Authorized Signatory
LEE BALAK, CEO AND DIRECTOR

For B.C. RESEARCH INC.

/s/ James Hill
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Authorized Signatory
JAMES HILL, PRESIDENT

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