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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
      STATES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
      D.C. 20549</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM
      8-K</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
      REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
      16,
      2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Date
      of
      earliest event reported)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>POWER
      TECHNOLOGY, INC. </u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of small Business Issuer as specified in its charter)</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>NEVADA</u></strong></font></div>
            </td>
            <td valign="middle" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>88-0395816</u></strong></font></div>
            </td>
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          <tr>
            <td valign="middle" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or other jurisdiction of <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporation
                or organization)</font></font></div>
            </td>
            <td valign="middle" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer Identification No.)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="middle" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td valign="middle" width="39%">&#160;</td>
          </tr>
          <tr>
            <td valign="middle" width="39%">&#160;</td>
            <td valign="middle" width="39%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>541710</u></strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="middle" width="39%">&#160;</td>
            <td valign="middle" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Primary
                Standard Industrial </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Classification
                Code)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="middle" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>109
                North Post Oak, Suite 422</strong></font></div>
            </td>
            <td valign="middle" width="39%">&#160;</td>
          </tr>
          <tr>
            <td valign="middle" width="39%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Houston,
                Texas</u></strong></font></div>
            </td>
            <td valign="middle" width="39%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>77024</u></strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="middle" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                of principle executive offices)</font></div>
            </td>
            <td valign="middle" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                Code)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="middle" width="39%">&#160;</td>
            <td valign="middle" width="39%">&#160;</td>
          </tr>

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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>(713)
      612-4310</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Issuer&#8217;s
      telephone number, including area code</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      2.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMPLETION
      OF ACQUISITION OR DISPOSITION OF ASSETS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      May
      16, 2006, our wholly owned subsidiary, Sentry Power Technology, Inc. (&#8220;SPT&#8221;) and
      Power Technology, Inc. (the &#8220;Company&#8221;) completed a transaction under an Asset
      Purchase Agreement (the &#8220;Agreement&#8221;) with Sentry Power Systems, LLC (&#8220;Sentry&#8221;),
      Michael Julian and Robert Magyar. Upon closing, SPT acquired the assets of
      Sentry for a total purchase price of $1,195,000 which was paid at closing by
      issuing 6,075,949 shares of our restricted common stock (the &#8220;Power Shares&#8221;)
      valued at $960,000 (based on the closing price per share on the date immediately
      prior to the closing date as reported by Bloomberg, LP) and by SPT assuming
      $235,000 in debt owed by Sentry to CSI Business Finance, Inc. (&#8220;CSI&#8221;) as
      evidenced by a Secured Promissory Note (the &#8220;Note&#8221;). The Power Shares are
      subject to a Lock-Up and Redemption Agreement (the &#8220;Lock-Up Agreement&#8221;) between
      the Company, SPT and Sentry. </font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">With
      regard to the CSI debt, SPT assumed the debt to CSI and executed an Assignment,
      Assumption, Modification and Extension of Promissory Note. The Note bears
      interest at the rate of 18% per annum and is due and payable on May 15, 2007.
      Under the terms of the Note, SPT is required to make monthly interest payments
      beginning June 1, 2006. The Note is secured by the assets of SPT pursuant to
      a
      Security Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      guaranteed the Note and executed a Stock Pledge Agreement granting CSI a first
      lien on all capital stock of SPT which we hold. Our agreement to guarantee
      the
      debt to CSI was conditioned upon and subject to the terms and conditions of
      a
      Guaranty Agreement and a Stock Pledge Agreement between Sentry and us which
      provided that Sentry would guaranty up to $250,000 of any obligation that we
      may
      have under our guaranty agreement with CSI.. The Stock Pledge Agreement provided
      for Sentry to pledge 1,582,279 of the Power Shares valued at $250,000 as
      security for the Guaranty Agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Lock-Up Agreement provides that Sentry will not sell, pledge, hypothecate,
      transfer, assign or in any other manner dispose of the Power Shares for a period
      of twenty-four (24) months from the Closing Date (except for the 1,582,279
      Power
      Shares pledged as collateral to us). The Lock-Up Agreement provides that if
      SPT
      is not &#8220;cash flow positive&#8221; twelve (12) months after the Closing Date that we
      have the right to call for redemption and exchange of all of the Power Shares
      held by Sentry in exchange for 65% of the shares then outstanding of SPT. In
      such event, we would then have the right, but not the obligation, to require
      that Sentry file, at our expense, a Registration Statement with the Securities
      and Exchange Commission (&#8220;SEC&#8221;) to register for re-sale the 35% remaining shares
      of SPT then held by us.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      event that we do not elect to exercise our rights then after twenty-four (24)
      months from the Closing Date the lock-up restriction shall terminate. In
      addition, for a period of fifteen (15) days commencing twenty-four (24) months
      after the Closing Date, Sentry shall have the right to require us to exchange
      65% of the shares then outstanding of SPT for all of the Power Shares. In such
      event, we would have the right, but not the obligation, to demand that SPT
      file
      at their expense a Registration Statement with the SEC to register for re-sale
      the 35% remaining shares of SPT which we hold.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      purposes of the Lock-Up Agreement, SPT shall be considered &#8220;cash flow positive&#8221;
where, in the preceding twelve (12) months, SPT has accrued positive earnings
      when earnings are calculated in accordance with generally accepted accounting
      procedures (1) before the deduction of interest and the amortization of
      principal due on the Note in the amount of $235,000, payable to CSI; (2) before
      the deduction of Federal Income Taxes payable by SPT; and (3) before the
      deduction of depreciation expense.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      part
      of the transaction, SPT entered into an employment agreement with Robert Magyar
      to serve as SPT&#8217;s President and an employment agreement with Michael Julian to
      serve as SPT&#8217;s Vice President/Director of Operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
      9.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FINANCIAL
      STATEMENTS AND EXHIBITS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      financial statements and pro forma financial information required by Items
      9.01(a) and 9.01(b) are not available. Such financial statements will be filed
      no later than July 30, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      Assignments:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      10.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Assignment,
      Assumption, Modification and Extension of Promissory Note</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      10.2</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Lock-Up
      and Redemption Agreement</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">POWER
              TECHNOLOGY,
              INC. </font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:
              May 19, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
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              Bernard J.
              Walter&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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            <td align="left"><font size="2">Bernard J. Walter</font></td>
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                Executive Officer and
                President</font></div>
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{"company-data": {"conformed-name": "POWER TECHNOLOGY INC/CN", "cik": "0001066978", "assigned-sic": "3714", "irs-number": "880395816", "state-of-incorporation": "NV", "fiscal-year-end": "0131"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-24857", "film-number": "06857362"}, "business-address": {"street1": "1000 W BONANZA RD", "street2": "604-925-0716", "city": "LAS VEGAS", "state": "NV", "zip": "89106", "phone": "7023823385"}, "mail-address": {"street1": "1000 W BONANZA RD", "city": "LAS VEGAS", "state": "NV", "zip": "89106"}}
Unassociated Document
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934
May
      16,
      2006
(Date
      of
      earliest event reported)
POWER
      TECHNOLOGY, INC.
(Exact
      name of small Business Issuer as specified in its charter)
NEVADA
88-0395816
(State
                or other jurisdiction of
incorporation
                or organization)
(IRS
                Employer Identification No.)
541710
(Primary
                Standard Industrial
Classification
                Code)
109
                North Post Oak, Suite 422
Houston,
                Texas
77024
(Address
                of principle executive offices)
(Zip
                Code)
(713)
      612-4310
Issuer's
      telephone number, including area code
ITEM
      2.01
COMPLETION
      OF ACQUISITION OR DISPOSITION OF ASSETS
On
      May
      16, 2006, our wholly owned subsidiary, Sentry Power Technology, Inc. ("SPT") and
      Power Technology, Inc. (the "Company") completed a transaction under an Asset
      Purchase Agreement (the "Agreement") with Sentry Power Systems, LLC ("Sentry"),
      Michael Julian and Robert Magyar. Upon closing, SPT acquired the assets of
      Sentry for a total purchase price of $1,195,000 which was paid at closing by
      issuing 6,075,949 shares of our restricted common stock (the "Power Shares")
      valued at $960,000 (based on the closing price per share on the date immediately
      prior to the closing date as reported by Bloomberg, LP) and by SPT assuming
      $235,000 in debt owed by Sentry to CSI Business Finance, Inc. ("CSI") as
      evidenced by a Secured Promissory Note (the "Note"). The Power Shares are
      subject to a Lock-Up and Redemption Agreement (the "Lock-Up Agreement") between
      the Company, SPT and Sentry.
With
      regard to the CSI debt, SPT assumed the debt to CSI and executed an Assignment,
      Assumption, Modification and Extension of Promissory Note. The Note bears
      interest at the rate of 18% per annum and is due and payable on May 15, 2007.
      Under the terms of the Note, SPT is required to make monthly interest payments
      beginning June 1, 2006. The Note is secured by the assets of SPT pursuant to
      a
      Security Agreement.
We
      guaranteed the Note and executed a Stock Pledge Agreement granting CSI a first
      lien on all capital stock of SPT which we hold. Our agreement to guarantee
      the
      debt to CSI was conditioned upon and subject to the terms and conditions of
      a
      Guaranty Agreement and a Stock Pledge Agreement between Sentry and us which
      provided that Sentry would guaranty up to $250,000 of any obligation that we
      may
      have under our guaranty agreement with CSI.. The Stock Pledge Agreement provided
      for Sentry to pledge 1,582,279 of the Power Shares valued at $250,000 as
      security for the Guaranty Agreement.
The
      Lock-Up Agreement provides that Sentry will not sell, pledge, hypothecate,
      transfer, assign or in any other manner dispose of the Power Shares for a period
      of twenty-four (24) months from the Closing Date (except for the 1,582,279
      Power
      Shares pledged as collateral to us). The Lock-Up Agreement provides that if
      SPT
      is not "cash flow positive" twelve (12) months after the Closing Date that we
      have the right to call for redemption and exchange of all of the Power Shares
      held by Sentry in exchange for 65% of the shares then outstanding of SPT. In
      such event, we would then have the right, but not the obligation, to require
      that Sentry file, at our expense, a Registration Statement with the Securities
      and Exchange Commission ("SEC") to register for re-sale the 35% remaining shares
      of SPT then held by us.
In
      the
      event that we do not elect to exercise our rights then after twenty-four (24)
      months from the Closing Date the lock-up restriction shall terminate. In
      addition, for a period of fifteen (15) days commencing twenty-four (24) months
      after the Closing Date, Sentry shall have the right to require us to exchange
      65% of the shares then outstanding of SPT for all of the Power Shares. In such
      event, we would have the right, but not the obligation, to demand that SPT
      file
      at their expense a Registration Statement with the SEC to register for re-sale
      the 35% remaining shares of SPT which we hold.
For
      purposes of the Lock-Up Agreement, SPT shall be considered "cash flow positive"
where, in the preceding twelve (12) months, SPT has accrued positive earnings
      when earnings are calculated in accordance with generally accepted accounting
      procedures (1) before the deduction of interest and the amortization of
      principal due on the Note in the amount of $235,000, payable to CSI; (2) before
      the deduction of Federal Income Taxes payable by SPT; and (3) before the
      deduction of depreciation expense.
As
      part
      of the transaction, SPT entered into an employment agreement with Robert Magyar
      to serve as SPT's President and an employment agreement with Michael Julian to
      serve as SPT's Vice President/Director of Operations.
ITEM
      9.01
FINANCIAL
      STATEMENTS AND EXHIBITS
The
      financial statements and pro forma financial information required by Items
      9.01(a) and 9.01(b) are not available. Such financial statements will be filed
      no later than July 30, 2006.
(c)
      Assignments:
Exhibit
      10.1
Assignment,
      Assumption, Modification and Extension of Promissory Note
Exhibit
      10.2
Lock-Up
      and Redemption Agreement
SIGNATURE
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
POWER
              TECHNOLOGY,
              INC.
Date:
              May 19, 2006
By:
/s/
              Bernard J.
              Walter
Bernard J. Walter
Chief
                Executive Officer and
                President