MUTUAL SETTLEMENT AND RELEASE AGREEMENT

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.

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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

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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.

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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.

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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

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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