Document:

EXHIBIT 10.1

                     MUTUAL SETTLEMENT AND RELEASE AGREEMENT

      This Mutual Settlement and Release Agreement (hereinafter the "Agreement")
is made by and between Power  Technology,  Inc.  (hereinafter  "PWTC"),  Hugo P.
Pomrehn (hereinafter "Pomrehn"), F. Bryson Farrill (hereinafter "Farrill"),  and
Lee Balak (hereinafter "Balak") (hereinafter jointly referred to as "Power"), on
the one hand, and Alvin Snaper  (hereinafter "Al") and Neo-Dyne  Research,  Inc.
(hereinafter  "Neo-Dyne")  (hereinafter jointly referred to as "Snaper"), on the
other hand (all of the parties  executing this Agreement are sometimes  referred
to  jointly  hereinafter  as the  "Parties"  and any  one of  them is  sometimes
referred to hereinafter as a "Party").

      1.  RECITALS.  The  Parties  hereto  expressly  acknowledge  and  agree as
follows:

            A. On or about  March 27,  2003,  Plaintiff  PWTC filed a  Complaint
against Snaper in the Clark County,  Nevada District  Court,  which was assigned
Case  No.  A465306,   and  Snaper   thereafter   counterclaimed   against  Power
(hereinafter  the  "Litigation").  The Litigation  included  without  limitation
claims made with respect to the  ownership of certain  technologies  and patents
developed while Al was affiliated with PWTC (hereinafter the "Technologies").

            B. The Parties have answered the claims and  counterclaims  and have
been in the process of prosecuting and defending the Litigation.

            C. The Parties  hereto now desire to settle and resolve the disputes
currently  at  issue  between  them  in  the  Litigation  and  relating  to  the
Technologies in accordance with the terms of this Agreement.

            D. The "Related  Persons and Entities" of PWTC shall refer to PWTC's
parent companies,  divisions,  subsidiaries,  and affiliates, if any, all of its
current directors and officers,  its attorneys of record in the Litigation,  any
and all of its assigns or successors, and shall also refer to one of its owners:
Bernard J. Walter. The "Related Persons and Entities" of Neo-Dyne shall refer to
Neo-Dyne's parent companies,  divisions,  subsidiaries,  and affiliates, if any,
all of its  current  directors  and  officers,  its  attorneys  of record in the
Litigation,  and any and all of its assigns, or successors, and its stockholders
and owners.  The "Related  Persons and Entities" of any individual  Party hereto
shall refer to that  individual's  heirs,  assigns,  successors-in-interest,  or
spouse.
<PAGE>

      2. SETTLEMENT TERMS AND CONDITIONS.  In consideration for the releases and
other promises set forth herein, the Parties agree as follows:

            A. Al shall  deliver an  assignment  to PWTC of Al's  entire  right,
title and interest throughout the world in the inventions and improvements which
are the  subject of an  application  for  United  States  Patent  signed by him,
entitled CURRENT COLLECTOR STRUCTURE AND METHODS TO IMPROVE THE PERFORMANCE OF A
LEAD-ACID  BATTERY,  filed March 26,  2004,  and  assigned  U.S.  Serial  Number
10/809,791;  and to the  inventions  and  improvements  which are the subject of
International Patent Application Number  PCT/US02/30607 filed September 25, 2002
at the World  Intellectual  Property  Organization  under the Patent Cooperation
Treaty,  entitled  CURRENT  COLLECTOR  STRUCTURE  AND  METHODS  TO  IMPROVE  THE
PERFORMANCE OF A LEAD-ACID BATTERY,  and to the invention and improvements which
are the subject of United  States  Patent  6,060,198,  entitled  ELECTROCHEMICAL
BATTERY STRUCTURE AND METHOD;  these  Assignments to include said  applications,
any and all United  States  and  foreign  patents,  utility  models,  and design
registrations granted for any of said inventions or improvements,  and the right
to claim  priority  based  on the  filing  date of said  application  under  the
International  Convention for the Protection of Industrial Property,  the Patent
Cooperation  Treaty, the European Patent  Convention,  and all other treaties of
like purposes;  and the  authorization of the Assignee to apply in all countries
<PAGE>

in  Al's  name  or  in  its  own  name  for  patents,   utility  models,  design
registrations  and like rights of exclusion and for inventors'  certificates for
said inventions and  improvements;  and Al agrees for himself and his respective
heirs,  legal  representatives  and assigns,  without  further  compensation  to
perform  such lawful acts and to sign such  further  applications,  assignments,
Powers of Attorney,  preliminary  statements  and other lawful  documents as the
Assignee  may  reasonably  request  to  effectuate  fully  the  Assignments.  Al
specifically agrees to execute and deliver the Powers of Attorney,  Assignments,
and  Declarations  attached to this Agreement as Exhibits 1-11 hereto  (Snaper's
execution of Exhibits 4 and 6 containing  Chinese  language  and  characters  is
based on PWTC's  representation  that the translation of this language and these
characters  is  substantially  and  materially  the  same  as the  English  text
appearing thereabove on the same document).

            B. Al and Neo-Dyne release and discharge PWTC, Farrill, Pomrehn, and
Balak,  indemnify  them,  and hold them  harmless of and from any and all claims
that were asserted or could have been asserted in the  Counterclaim  filed by Al
and Neo-Dyne in the Litigation. Such indemnification and hold harmless agreement
is  limited  to  protecting   the   indemnitees   from  any  action  brought  or
intentionally  caused to be brought  by Al,  and does not relate to  independent
claims by third parties. The release shall not constitute an admission by either
party as to the viability of any claims or defenses, except that Al and Neo-Dyne
shall  acknowledge  that  PWTC has  produced  copies  of  thousands  of pages of
accounting and financial  records and having examined them, Al and Neo-Dyne find
no evidence  that  Farrill or Pomrehn has  breached any duty to PWTC or acted in
any  inappropriate  manner,  and  partially  in  exchange  for Al  and  Neo-Dyne
executing this Agreement  containing the aforemade statement Farrill and Pomrehn
sign the releases  referenced  herein and agree not to make any claim against Al
and  Neo-Dyne  relating  to their being named in the  Litigation  being  settled
hereunder or relating to Al and Neo-Dyne's aforestated statement.
<PAGE>

            C. Al shall retain the share  certificates  evidencing his ownership
of  664,155  shares of common  stock of PWTC.  Al agrees  that for the  one-year
period  immediately  following  the  execution  of this  Agreement,  without the
express written  permission of the Board of Directors of PWTC, Al shall not sell
or transfer  ownership of any of the shares of common stock of PWTC owned by Al.
One year  after the  execution  of this  Agreement,  Al shall be free to sell or
transfer ownership of his shares of common stock of PWTC by presenting to PWTC's
Transfer Agent his share  certificates  and a legal opinion  satisfactory to the
Transfer Agent that the restrictive legend on the share  certificates  should be
removed  pursuant to SEC Rule 144 K or any other  exemption  and Power shall not
object to the removal of the restrictions on the transfer or sale of Al's shares
of common stock of PWTC. PWTC agrees that if it lifts any current restriction on
Bernard J. Walter or Lee Balak  transferring  any of their  stock,  it will also
concurrently lift the foregoing  one-year  restriction with respect to transfers
of Al's stock and will concurrently provide Al with immediate notice thereof.

            D. PWTC shall pay Al $20,000.00,  and Al shall not pay any monies to
PWTC.

            E. PWTC,  Balak,  Farrill,  and Pomrehn release and discharge Al and
Neo-Dyne,  indemnify them, and hold them harmless of and from any and all claims
that  were  asserted  or  could  have  been  asserted  in the  Litigation.  Such
indemnification  and hold  harmless  agreement  is  limited  to  protecting  the
indemnitees  from any action  brought or  intentionally  caused to be brought by
PWTC,  and does not relate to independent  claims by third parties.  The release
does not  constitute  an admission  by either  party as to the  viability of any
claims or defenses.
<PAGE>

            F. PWTC shall  surrender to Al all  recordings of telephone  message
left on the voice mail of 281-804-9954 on or about November 18, 2004 at or about
12:41 p.m. Central Daylight Time.

            G. Snaper shall  deliver to PWTC in its "as is"  condition and waive
any claim of ownership of two large Edison batteries containing three cells each
(totaling six cells) in Snaper's  possession,  all shipping  costs to be paid by
PWTC.

            H.  Snaper and their  counsel may  retain,  until the "Return  Date"
specified below, all copies of all discovery materials and documents produced by
PWTC in this Litigation  (hereinafter,  the "PWTC  Responses") and all copies of
all  financial  records of PWTC that were created or maintained by Al during his
term as an officer or director of PWTC (the "PWTC Financial  Documents") subject
to the following conditions. Snaper expressly agrees that the PWTC Responses and
the PWTC  Financial  Documents will be retained only in order to allow Snaper to
produce or utilize any of the same as may become  relevant in any manner  Snaper
sees  fit in the  defense  (which  shall  include  the  prosecution  of  related
counterclaims or third-party  claims) of certain  litigation  pending against Al
and brought by Stephen Zrenda known as Clark County,  Nevada District Court Case
No. A493659,  or in the defense (as defined above) of any other litigation which
might be brought  against  Snaper prior to the resolution of the Zrenda Case No.
A493659 litigation,  including for rebuttal purposes or to impeach the character
or  credibility of any witness or party.  If Snaper  produces or utilizes any of
the PWTC Responses or the PWTC  Financial  Documents in any  litigation,  Snaper
shall give written notice to PWTC at 1770 St. James Place,  Suite 115,  Houston,
Texas,  77056,  and specify which  documents from the PWTC Responses or the PWTC
Financial Documents Snaper has produced or utilized.  The PWTC Responses and the
<PAGE>

PWTC Financial  Documents shall otherwise not be shared with or disclosed to any
third parties other than Snaper's  counsel and shall  otherwise be maintained as
confidential  by Snaper.  Snaper  shall return the PWTC  Responses  and the PWTC
Financial  Documents  to PWTC on a  "Return  Date"  which  shall be  defined  as
follows:  31 days after the  resolution of any and all of Zrenda's  claims or of
any other claims pursued by any other party in any litigation  relating thereto,
or of any other  litigation or suits filed against  Snaper before  resolution of
the Zrenda litigation,  where the resolution of such claims shall mean that such
claims have been fully and finally  resolved,  including  the  resolution of any
related third-party claims or counterclaims, and including the resolution of any
appeals  (or the  expiration  of the time  period to appeal,  without any appeal
being  filed).  After the return of the PWTC  Responses  and the PWTC  Financial
Documents to PWTC, PWTC shall retain those documents at a location in the United
States,  subject to subpoena,  for a period of at least three (3) years from the
date of the  execution of this  Agreement,  in the event such  documents  become
relevant to any  litigation in which Al or Neo-Dyne is named.  The return of the
PWTC Responses and the PWTC Financial Documents to PWTC, and the delivery of any
other documents or items required to be provided by Snaper hereunder may be made
by delivery to PWTC's local counsel in the Litigation, Harold Gewerter, Esq.

            I.  PWTC and its  counsel  shall  deliver  to  Snaper  any  specific
personal  documents or Neo-Dyne  corporate  documents produced by Snaper in this
Litigation, which documents were not created as business records of PWTC. Snaper
shall  specifically  designate in writing those  documents  which Al or Neo-Dyne
considers  to  be  their  personal  or  corporate  documents  produced  in  this
Litigation  and not created as business  records of PWTC, and PWTC shall deliver
the same to Snaper  within 10 days after  receipt of this written list. If there
is any dispute as to whether such documents  should be so  classified,  then any
such dispute may be resolved as set forth in Paragraph 2(L) below.
<PAGE>

            J.  Snaper  shall  deliver  to  PWTC  all  copies  of all  technical
materials  in their  possession  or subject  to their  control  relating  to the
battery  technology and inventions and improvements which are the subject of the
assignments  set forth in Paragraph 2(A),  above.  This shall include but not be
limited to all reports and data prepared by BC Research, Inc., concerning any of
the improvements which are the subject of the assignments set forth in Paragraph
2(A) above,  or  concerning  the alloy sensor  technology  related to Patent No.
4,107,997 or the cold pipe joining technology related to Patent No. 5,442,846.

            K. PWTC,  Farrill,  Pomrehn,  Balak, Al, and Neo-Dyne shall each pay
their own costs of court and attorneys' fees.

            L. If a dispute arises out of or in connection  with this Agreement,
the Parties agree to seek an amicable  settlement of that dispute by discussions
and  negotiations  between the Parties.  Failing such a resolution,  any and all
claims,  disputes or  controversies  arising from or relating in any way to this
Agreement, at the request of any Party, may be referred to Nevada Attorney Floyd
A. Hale, Esq.,  Nevada Bar No. 001873 (current phone number (702) 382-1414),  to
be mediated,  and if a settlement does not result from such mediation,  then any
such  controversy  will be  arbitrated  and finally  resolved  by an  arbitrator
mutually agreeable to both sides, or if they cannot select an arbitrator,  to be
selected by Floyd A. Hale,  Esq., said arbitration to be processed in accordance
with the Commercial  Arbitration Rules and Mediation  Procedures of the American
Arbitration  Association  (except that an AAA arbitrator  need not be utilized).
The place of arbitration shall be Las Vegas, Nevada. The prevailing party in any
arbitration or legal action arising out of or related to this Agreement shall be
entitled,  in  addition  to  any  other  rights  or  remedies  it may  have,  to
reimbursement for its expenses incurred in such arbitration or action, including
court costs and attorneys' fees.
<PAGE>

      3.  STIPULATION TO DISMISS  LITIGATION.  Effective upon  completion of the
foregoing, the Parties shall direct their counsel to execute and deliver to each
other's  counsel of record  and to submit and file with the Court a  Stipulation
and Order  dismissing the Litigation with prejudice,  each party to bear its own
costs and attorneys' fees.

      4. RELEASE.

            A. MUTUAL  RELEASE.  Power, on the one hand, for itself and for each
of its Related Persons and Entities,  and Snaper,  on the other hand, for itself
and for each of its  Related  Persons  and  Entities,  do all  hereby  fully and
finally settle, release, acquit, forever discharge, and covenant not to sue each
other and any and all of each other's Related Persons and Entities, with respect
to any and all claims,  demands,  liabilities,  damages,  complaints,  causes of
action, debts, amounts due, refunds,  intentional or negligent acts, intentional
or  negligent  omissions,  representations,  breaches of  contract,  breaches of
warranty,  breaches of duty, intentional or nonintentional torts,  conspiracies,
waste or waste claims,  express  indemnity,  contribution,  implied or equitable
indemnity,  economic  damages,  non-economic  damages,  property damage,  bodily
injury, loss of use,  attorneys' fees, expert fees, repair costs,  investigative
costs,  relocation costs, lost profits,  omissions,  conduct, or damage of every
kind or nature  whatsoever,  whether  known or  unknown  (hereinafter  "Claims")
arising prior to the date hereof which are related to the  allegations or claims
set forth in the Litigation, including the Technologies.
<PAGE>

            B.  EXCEPTIONS.  The releases set forth in this  Paragraph 4 and any
and all other  releases set forth in this  Agreement,  including in Paragraph 2,
shall  have no effect on (i) any  future  action to  enforce  or  construe  this
Agreement;  (ii) any rights,  claims, or defenses relating to any allegations as
to acts or omissions  occurring after the date of this  Agreement;  or (iii) any
indemnification  rights  Snaper may claim to have against  Balak with respect to
any claims currently  pending or brought  hereafter against him by Steve Zrenda,
including in Clark County, Nevada District Court Case No. A493659.

      5. NO PRIOR ASSIGNMENTS.  The Parties,  and each of them, hereby covenant,
promise,  warrant,  and agree that they, and each of them, are the owners of the
Claims released  pursuant to Paragraphs 2 and 4 above and there has not occurred
any express  assignment,  transfer,  or  hypothecation  of such Claims,  whether
voluntary or involuntary,  by subrogation,  or to their knowledge any assignment
by operation  of law, or  otherwise,  to any other person or entity.  Each Party
hereto  agrees to  indemnify  and hold the other  harmless in the event that any
alleged or claimed  assignee,  transferee,  or subrogee  of the Claims  released
herein by the  indemnifying  Party should attempt to pursue the Claims  released
herein against the other Party.

      6. MISCELLANEOUS.

            A. Each  individual who signs this document  warrants and represents
that he or she is  competent  and  authorized  to enter into this  Agreement  on
behalf of the Party for which he or she purports to sign. Corporate  resolutions
or other reasonably  adequate  verification of this warranty will be provided by
both  corporate  releasors to the other Party  acknowledging  the  corporation's
lawful consent to enter into this Agreement.

            B. The  Parties  acknowledge  and agree  that each will bear its own
costs,  expenses,  and attorneys' fees arising out of and/or  connected with the
Litigation.
<PAGE>

            C. This Agreement is the product of negotiation  and  preparation by
and among the Parties and their  respective  attorneys.  Neither this Agreement,
nor any provisions thereof, shall be deemed prepared or drafted by any one Party
or another,  or its attorneys,  and any ambiguity  herein shall not be construed
against one Party or the other as the drafter hereof.

            D. This Agreement  shall be  interpreted  in accordance  with and be
governed  in all  respects  by the laws of the  State  of  Nevada.  The  Parties
stipulate that the exclusive  jurisdiction  and venue for any action arising out
of or relating to this  Agreement,  including to enforce any  arbitration  award
entered  hereunder,  shall lie in the  federal  or state  courts  located in Las
Vegas, Nevada.

            E. This  Agreement  shall  inure to the benefit of and be binding on
the Parties to this Agreement and upon their Related Persons and Entities.

            F. This  Agreement  may be  executed in  counterparts,  and all such
counterparts  shall  constitute  an  agreement  which shall be binding  upon all
Parties hereto,  notwithstanding  that the signatures of all Parties' designated
representatives do not appear on the same page.

            G. It is further  agreed  that the  Parties  will  execute  all such
further and additional documents as shall be reasonable,  convenient, necessary,
or desirable to carry out the provisions of this Agreement.

            H. In any  subsequent  action or  proceeding  to enforce or construe
this  Agreement,  the Parties  stipulate  that a copy of this  Agreement  may be
admissible to the same extent as the original Agreement.

            I. Each of the Parties agrees that this Agreement was the product of
a negotiated  compromise  relating to disputed  Claims,  and that it was entered
into in lieu of incurring  additional  costs and  attorneys'  fees, and to avoid
exposure to other risks, in the Litigation, and that nothing stated herein shall
be treated as an admission  of liability of any Party for any purpose,  and that
the  validity  of any and all Claims  and  defenses  made by the other  Party is
expressly denied by each of the Parties.
<PAGE>

            J. No breach of any provision or condition of this  Agreement can be
waived unless in writing and signed by all Parties.  Waiver of any breach of any
provision  or  condition  hereof shall not be deemed to be a waiver of any other
breach of the same or other  provisions or  conditions  contained  herein.  This
Agreement  may be modified  only by a written  agreement  executed by all of the
Parties hereto or by the affected Parties.

            K. If any legal action,  arbitration, or other proceeding is brought
to enforce or interpret the terms of this Agreement,  the prevailing Party shall
be entitled to recover  reasonable  attorneys'  fees and costs  incurred in that
action or arbitration or proceeding, in addition to any other relief to which it
might be entitled.

            L. If any provision or any part of any  provision of this  Agreement
shall for any reason be held to be invalid, unenforceable, or contrary to public
policy or any law,  then the remainder of this  Agreement  shall not be affected
thereby and shall remain in full force and effect,  unless,  however, the intent
of the  Parties as set forth in this  Agreement  cannot be  effectuated  without
inclusion of that  provision or any part of that  provision,  in which case, the
entire Agreement shall be unenforceable.

            M. The captions and paragraph  headings set forth in this  Agreement
are only inserted for the purpose of convenient  reference and in no way define,
limit,  or prescribe  the scope or intent of this  Agreement or any part hereof.
Unless  otherwise  provided  herein,  any reference to a paragraph  herein shall
include the paragraph so designated and all subparts thereof.
<PAGE>

            N. The  Parties  hereto,  and each of them,  further  represent  and
declare  that they have  carefully  read this  Agreement  and know the  contents
thereof and understand the  Agreement's  legal  significance  and that they have
signed the same freely and voluntarily after obtaining necessary and appropriate
legal advice with respect thereto.

            O. The Parties hereto,  and each of them,  agree that this Agreement
contains the entire  agreement  between the  Parties,  and it is agreed that the
terms of this Agreement are  contractual and not merely a memorandum or recital.
This  Agreement  supersedes  any  and  all  prior  agreements,   understandings,
promises,  warranties, and representations made by each Party to any other Party
concerning the subject matter of this Agreement and the subject Claims.

      Dated this ____ day of _____________________, 2004.

                                                   POWER TECHNOLOGY, INC.,
                                                   a Nevada corporation

                                                   By:
                                                      --------------------------
                                                   Name:
                                                        ------------------------
                                                   Title:
                                                         -----------------------

Subscribed and sworn to before me
this ____ day of _________________, 2004.

------------------------------------
Notary Public, State of _________________
<PAGE>

      Dated this ____ day of _____________________, 2004.

                                                   -----------------------------
                                                   Hugo P. Pomrehn

Subscribed and sworn to before me
this ____ day of _________________, 2004.

------------------------------------
Notary Public, State of California
<PAGE>

      Dated this ____ day of _____________________, 2004.

                                                   -----------------------------
                                                   F. Bryson Farrill

Subscribed and sworn to before me
this ____ day of _________________, 2004.

------------------------------------
Notary Public, ________________________
<PAGE>

      Dated this ____ day of _____________________, 2004.

                                                   -----------------------------
                                                   Lee Balak

Sworn before me at the City of ______________,
Province of British Columbia, this _____ day of
_________________, 2004.

-----------------------------------------------
Commissioner/Notary Public for British Columbia
<PAGE>

      Dated this ____ day of _____________________, 2004.

                                                   -----------------------------
                                                   Alvin Snaper

Subscribed and sworn to before me
this ____ day of _________________, 2004.

------------------------------------
Notary Public, State of Nevada

      Dated this ____ day of _____________________, 2004.

                                                   NEO-DYNE RESEARCH, INC.,
                                                   a Nevada corporation

                                                   By:
                                                      --------------------------
                                                   Name:
                                                        ------------------------
                                                   Title:
                                                         -----------------------

Subscribed and sworn to before me
this ____ day of _________________, 2004.

------------------------------------
Notary Public, State of NevadaEXHIBIT 10.2

                              SETTLEMENT AGREEMENT

      WHEREAS,  Lee A.  Balak  ("Balak")  previously  served as an  officer  and
director of Power Technology, Inc. ("PWTC"), a Nevada corporation; and

      WHEREAS, The Company filed a civil action, styled Case No. A465306,  Power
Technology,  Inc. v. Alvin Snaper, in the District Court, Clark County,  Nevada,
("Case No. A465306")  against Alvin A. Snaper,  ("Snaper") a former director and
officer of the  Company,  and  against  Neo-Dyne  Research,  Inc.  ("Neo-Dyne"),
Snaper's research and development  company,  based upon allegations of breach of
fiduciary  relationship  and breach of  contract,  and  seeking  an  injunction,
declaratory  relief and the  turnover of Company  property.  Snaper and Neo-Dyne
filed an answer and  asserted  counterclaims  against  PWTC and added Balak as a
third party defendant; and

      WHEREAS,  Balak  asserts  that  he did not  breach  any  duty  to  Snaper,
Neo-Dyne,  or PWTC in his  capacity  as an officer or director of PWTC or in his
individual  capacity and that no improper or unauthorized  payments were made to
Balak; and

      WHEREAS, the parties to Case No A465306 have agreed to a settlement of the
claims  which were  alleged in Case No A465306 and PWTC agreed to pay Snaper and
Neo-Dyne $20,000.00 as consideration for the for that settlement, which includes
a release by Snaper and Neo-Dyne of claims made by them against Balak; and

      WHEREAS,  PWTC executed a Promissory  Note dated May 21, 2004,  payable to
the order of CORPORATE  STRATEGIES,  INC., in the principal sum of  $100,000.00,
("the  Promissory  Note") which was secured by the pledge by Balak of 27,157,483
shares  of  fully  paid  and  non-assessable  shares  of  common  stock  of PWTC
represented by certificate  numbers 5324, 5339, 5764, 5768, and 5947 in the name
of Lee Balak, and

      WHEREAS,  Balak and PWTC desire to resolve any potential  claims that PWTC
may have  against  Balak  concerning  his  conduct  while he was an officer  and
director of PWTC;

NOW,  THEREFORE,  IT IS HEREBY AGREED that in consideration for the releases and
other promises set forth herein, the Parties agree as follows:

1. PWTC shall pay when due, to Corporate Strategies, Inc., all sums due pursuant
to the Promissory Note and shall obtain the release of and the delivery to Balak
of the  pledged  27,157,483  shares of fully paid and  non-assessable  shares of
common stock of Power Technology,  Inc.,  evidenced by share certificate numbers
5324, 5339, 5674, 5768, and 5947 in the name of Lee Balak.
<PAGE>

2.  Balak  hereby  surrenders  to PWTC  ownership  of  4,000,000  fully paid and
non-assessable  shares of the  common  stock of PWTC and  waives  all  ownership
right,  title,  or interest in those  shares.  Balak shall  surrender to Pacific
Stock Transfer Company,  PWTC's transfer agent,  share  certificate  Number 5947
evidencing   Balak's   ownership  of   23,285,483   shares  of  fully  paid  and
non-assessable  common  stock of PWTC.  Balak and PWTC  shall  give  irrevocable
instructions to Pacific Stock Transfer  Company,  to cancel Balak's ownership of
4,000,000  of  the  shares  of  fully  paid  and  non-assessable   common  stock
represented by certificate Number 5947 and to reissue a new share certificate to
Balak  evidencing  his  ownership  of  19,285,483   shares  of  fully  paid  and
non-assessable common stock of PWTC.

3. PWTC shall  deliver to Balak a release from Snaper and  Neo-Dyne  which shall
release and discharge  Balak,  indemnify  him, and hold him harmless of and from
any and all  claims  that  were  asserted  or could  have been  asserted  in the
Counterclaim filed by Snaper and Neo-Dyne against Balak in Case No. A465306.

4. PWTC hereby fully and finally settles, releases, acquits, forever discharges,
and  covenants  not to sue Balak with  respect to any and all  claims,  demands,
liabilities, damages, complaints, causes of action, debts, amounts due, refunds,
intentional   or   negligent   acts,   intentional   or   negligent   omissions,
representations,  breaches of contract,  breaches of warranty, breaches of duty,
intentional  or  nonintentional  torts,  conspiracies,  waste or  waste  claims,
express  indemnity,  contribution,  implied  or  equitable  indemnity,  economic
damages,  non-economic  damages,  property damage, loss of use, attorneys' fees,
expert fees, repair costs,  investigative costs, relocation costs, lost profits,
omissions, conduct, or damage of every kind or nature whatsoever,  whether known
or  unknown  which are  related to any act that Balak did or failed to do in his
capacity as an officer or director of PWTC.

5. Balak agrees and acknowledges  that the Share Lockup Agreement of Paragraph 9
of the Consulting Services Agreement dated June 30, 2004, between PWTC and Balak
shall remain in full force and effect.

6.  Each  of the  Parties  agrees  that  this  Agreement  was the  product  of a
negotiated compromise relating to disputed claims and potential claims, and that
it was entered into in lieu of incurring  additional  costs and attorneys' fees,
and to avoid  exposure to other risks and  litigation,  and that nothing  stated
herein  shall be  treated  as an  admission  of  liability  of any Party for any
purpose, and that the validity of any and all claims or potential claims by PWTC
against Balak was expressly denied by Balak.

                                           POWER TECHNOLOGY, INC.,
                                           a Nevada corporation

                                           By:
                                              ----------------------------------
                                           Bernard J. Walter - President

Subscribed and sworn to before me on this ____ day of January 2005.

                                           -------------------------------------
                                           Notary Public

                                           -------------------------------------
                                           Lee Balak

Subscribed and sworn before me on this the ___day of January 2005.

                                           -------------------------------------
                                           Notary Public in and for the Province
                                           of  British Columbia, Canada

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]