Document:

Exhibit
        10.11

       

      

      TRULITE,
        INC.

      STOCK
        OPTION PLAN

      

      

      1. Purpose.
        The
        purpose of the Stock Option Plan (the “Plan”) of Trulite, Inc. (“Trulite”) is to
        increase shareholder value and to advance the interests of Trulite and its
        subsidiaries (collectively, the “Company”) by furnishing an economic incentive
        in the form of options (“Options”) to purchase shares of common stock, $.0001
        par value per share, of Trulite (the “Common Stock”) designed to attract, retain
        and motivate employees, officers, directors, consultants and advisors of
        the
        Company and to strengthen the mutuality of interests between such persons
        and
        the shareholders of Trulite. As used in the Plan, the term “subsidiary” means
        any corporation of which Trulite owns, directly or indirectly (within the
        meaning of Section 425(f) of the Internal Revenue Code of 1986, as amended
        (the
“Code”), 50% or more of the total combined voting power of all classes of
        stock.

      

      Options
        granted under the Plan will be non-qualified options. Each employee, officers,
        directors, consultants and advisors of the Company granted an Option (an
        “Optionee”) shall enter into an agreement with the Company (the “Stock Option
        Agreement”) setting forth the terms and conditions of the Option, as determined
        in accordance with this Plan.

      

      2. Administration.

      

      2.1. Composition.
        The Plan
        shall be administered by the Board of Directors of Trulite (the “Board”), which
        may from time to time delegate all or any part of its authority under the
        Plan
        to a committee of the Board (or subcommittee thereof) with two or more members.
        To the extent of any such delegation, unless otherwise provided herein,
        references in this Plan to the Board shall be deemed to be references to
        this
        committee or subcommittee.

      

      2.2. Authority.
        The
        Board shall have authority to award Options under the Plan, to interpret
        the
        Plan and the Options granted under the plan; to determine the time or times
        an
        Option may be exercised, the number of shares as to which an Option may be
        exercised at any one time, and when an Option may terminate; to establish,
        amend
        and revoke rules and regulations relating to the Plan and its administration;
        and to correct any defects, supply any omission, or reconcile any inconsistency
        in the Plan, or in any Option Agreement, in a manner and to the extent it
        shall
        deem necessary, all of which determinations and interpretations made by the
        Board or the designated committee shall be conclusive and binding on all
        Optionees and on their legal representatives and beneficiaries; to determine
        all
        questions of policy and expediency that may arise in the administration of
        the
        Plan and generally exercise such powers and perform such acts as deemed
        necessary or expedient to promote the best interests of the
        Company.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      3. Eligible
        Participants.
        Employees, directors, consultants and advisors shall become eligible to receive
        Options under the Plan when designated by the Board. Participants may be
        designated individually or by groups or categories as the Board deems
        appropriate.

      

      4. Shares
        Subject to the Plan.

      

      4.1. Number
        of Shares.
        Subject
        to the provisions of paragraph 7.5 below the Stock, which may be issued pursuant
        to Options granted under the Plan, shall not exceed the aggregate of one
        million
        seven hundred twenty one thousand six hundred and sixty five shares (1,721,665).
        

      

      4.2. Cancellation.
        If any
        Options granted under the Plan terminate, expire or are surrendered without
        having been exercised in full, the number of shares of Stock not purchased
        under
        such Options shall be available again for the purpose of the Plan. 

      

      4.3. Type
        of Common Stock.
        Common
        Stock issued under the Plan in connection with Options may be authorized
        and
        unissued shares or issued shares held as treasury shares. 

      

      5. All
        Stock Options.
        An
        Option is a right to purchase shares of Common Stock from Trulite. Both
        non-qualified options and, subject to the requirements of Section 6 hereof,
        incentive stock options under Section 422 of the Internal Revenue Code of
        1986,
        as amended (the “Code”) may be granted through the Plan. Each Option granted by
        the Board under the Plan shall be subject to the following terms and conditions
        and any other terms and conditions provided in the stock option agreement
        with
        the participant (the “Stock Option Agreement”):

      

      5.1. Price.
        The
        option price per share shall be determined by the Board. Except in the case
        of
        an Option granted in assumption of or substitution for an award of a company
        acquired by Trulite or with which Trulite has combined, the option price
        shall
        be no less than the “Fair Market Value” of a share of Common Stock, as defined
        in Section 7.9 hereof, on the date that an Option is granted or such later
        date,
        specified by the Board, as the Option is to take effect. 

      

      5.2. Number.
        The
        number of shares of Common Stock subject to an Option shall be determined
        by the
        Board and provided in the Stock Option Agreement, subject to adjustment as
        provided in Section 7.5 hereof.

      

      5.3. Duration.
        Subject
        to earlier termination as provided in Section 7.3 hereof, the term of each
        Option shall be determined by the Board and provided in the Stock Option
        Agreement.

      

      5.4. Time
        of Exercise.
        An
        Option may be exercised at such time or times during its term as shall be
        determined by the Board and provided in the Stock Option Agreement. The Board
        may declare all or a portion of the Options to be vested and exercisable
        at any
        time.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      5.5. Manner
        of Exercise.
        An
        Option may be exercised, in whole or in part, by giving written notice to
        Trulite, specifying the number of shares of Common Stock to be purchased
        and
        accompanied by the full exercise price for such shares. The option exercise
        price shall be payable upon exercise of the Option and may be paid in cash
        or by
        check. If the Common Stock is listed for trading on a national securities
        exchange or prices of the Common Stock are quoted on a national quotation
        system, the option exercise price may also be paid by delivery of shares
        of
        Common Stock in payment of all or any part of the exercise price, which shares
        shall be valued for this purpose at the Fair Market Value on the date such
        Option is exercised or by delivery of a properly executed exercise notice
        together with irrevocable instructions to a broker approved by Trulite (with
        a
        copy to Trulite) to promptly deliver to Trulite the amount of sale or loan
        proceeds to pay the exercise price. The exercise price may also be paid in
        such
        other manner as may be authorized from time to time by the Board. In the
        case of
        delivery of an uncertified check upon exercise of an Option, no shares shall
        be
        issued until the check has been paid in full. Prior to the issuance of shares
        of
        Common Stock upon the exercise of an Option, a participant in the Plan shall
        have no rights as a shareholder with respect to such shares.

      

      6. Incentive
        Stock Options.
        Notwithstanding anything in the Plan to the contrary, the following additional
        provisions shall apply to the grant of Options that are intended to qualify
        as
        incentive stock options (as such term is defined in Section 422 of the
        Code):

      

      6.1. Required
        Provisions.
        Any
        incentive stock option granted under the Plan shall contain such other
        provisions as the Board shall deem advisable, but shall in all events be
        consistent with and contain or be deemed to contain all provisions required
        in
        order to qualify the Option as an incentive stock option;

      

      6.2. Date
        of Grant.
        The
        Board of Directors will determine the date in which all of the stock options
        will be granted. 

      

      6.3. Duration.
        Unless
        sooner exercised, all incentive stock options shall expire no later than
        seven
        years after the date of grant; 

      

      6.4. Principal
        Shareholders.
        Unless
        the requirements of Section 422(c) (5) of the Code are met, no incentive
        stock
        option shall be granted to any participant who, at the time such option is
        granted, would own (within the meaning of Section 422 of the Code) stock
        possessing more than 10% of the total combined voting power of all classes
        of
        stock of the employer corporation or of its parent or subsidiary corporation;
        

      

      6.5. Limitation
        on Size of Grants.
        The
        aggregate Fair Market Value (determined with respect to each incentive stock
        option as of the time such incentive stock option is granted) of the Common
        Stock with respect to which incentive stock options are exercisable for the
        first time by a participant during any calendar year (under the Plan or any
        other plan of the Company) shall not exceed $100,000. To the extent that
        such
        limitation is exceeded, such Options shall not be treated, for federal income
        tax purposes, as incentive stock options;

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      6.6. Approval
        by Shareholders.
        Incentive stock options may be granted under the Plan only if the Plan has
        been
        approved by the shareholders of the Company within 12 months of the date
        of
        adoption of the Plan by the Board of Directors; and

      

      7. General.

      

      7.1. Duration.
        The Plan
        shall remain in effect until all Options granted under the Plan have either
        been
        satisfied by the issuance of shares of Common Stock or terminated under the
        terms of the Plan. 

      

      7.2. Non-transferability
        of Options.
        No
        Option may be transferred, pledged or assigned by the holder thereof (except,
        in
        the event of the holder’s death, by will or the laws of descent and
        distribution) and Trulite shall not be required to recognize any attempted
        assignment of such rights by any participant in the Plan. During the lifetime
        of
        any participant in the Plan, an Option may be exercised only by him or by
        his
        guardian or legal representative.

      

      7.3. Effect
        of Termination of Employment or Death.
        If a
        participant in the Plan ceases to be an employee, director, consultant or
        adviser to the Company for any reason, including death, any Options may be
        exercised or shall expire at such times as shall be set forth in the Stock
        Option Agreement.

      

      7.4. Additional
        Condition.
        Anything
        in this Plan to the contrary notwithstanding: (a) Trulite may, if it shall
        determine it necessary or desirable for any reason, at the time of award
        of any
        Option or the issuance of any shares of Common Stock pursuant to any Option,
        require the recipient of the Option, as a condition to the receipt thereof
        or to
        the receipt of shares of Common Stock issued pursuant thereto, to deliver
        to
        Trulite a written representation of present intention to acquire the Option
        or
        the shares of Common Stock issued pursuant thereto for his own account for
        investment and not for distribution; and (b) if at any time Trulite further
        determines, in its sole discretion, that the listing, registration or
        qualification (or any updating of any such document) of any Option or the
        shares
        of Common Stock issuable pursuant thereto is necessary on any securities
        exchange or under any federal or state securities or blue sky law, or that
        the
        consent or approval of any governmental regulatory body is necessary or
        desirable as a condition of, or in connection with the award of any Option
        or
        the issuance of shares of Common Stock pursuant thereto, such Option shall
        not
        be awarded or such shares of Common Stock shall not be issued, in whole or
        in
        part, unless such listing, registration, qualification, consent or approval
        shall have been effected or obtained free of any conditions not acceptable
        to
        Trulite.

      

      7.5. Adjustment.
        In the
        event of any recapitalization, reclassification, stock dividend, stock split,
        reverse stock split, combination of shares or other similar change in the
        Common
        Stock, the number of shares of Common Stock then subject to the Plan, including
        shares subject to Options, shall be adjusted in proportion to the change
        in
        outstanding shares of Common Stock. In the event of any such adjustments,
        the
        exercise price of any Option and the shares of Common Stock issuable pursuant
        to
        any Option shall be adjusted as and to the extent appropriate, in the reasonable
        discretion of the Board, to provide participants in the Plan with the same
        relative rights before and after such adjustment. 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      7.6. Withholding.
        The
        Company shall have the right to withhold at the time an Option is exercised
        or
        to collect as a condition of exercise, any taxes required by law to be withheld.
        At any time that a participant in the Plan is required to pay to the Company
        an
        amount required to be withheld under applicable income tax laws in connection
        with exercise of an Option, such participant may, if permitted by the Board,
        satisfy this obligation in whole or in part by electing to have the Company
        withhold from the exercise, shares of Common Stock having a value equal to
        the
        amount required to be withheld (the “Election”). The value of the shares of
        Common Stock to be withheld shall be based on the Fair Market Value of the
        Common Stock on the date that the amount of tax to be withheld shall be
        determined (the “Tax Date”). Each Election must be made prior to the Tax Date.

      

      7.7. No
        Continued Employment.
        No
        participant under the Plan shall have any right, because of his or her
        participation therein, to continue in the employ of the Company for any period
        of time or to any right to continue his or her present or any other rate
        of
        compensation.

      

      7.8. Amendment
        of the Plan.
        The
        Board may amend or discontinue the Plan at any time; provided, however, that
        no
        such amendment or discontinuance shall, subject to adjustment under Section
        7.5
        hereof, materially impair, without the consent of the recipient, an Option
        previously granted, and provided further that shareholder approval of a material
        amendment may be required if incentive stock options are to be
        granted.

      

      7.9. Definition
        of Fair Market Value.
        Whenever
“Fair Market Value” of Common Stock shall be determined for purposes of this
        Plan, it shall be determined as follows: (a) if the Common Stock is listed
        on an
        established stock exchange or any automated quotation system that provides
        sale
        quotations, the closing sale price for a share of the Common Stock on such
        exchange or quotation system on the applicable date, or if no sale of the
        Common
        Stock shall have been made on that date, on the next preceding date on which
        there was a sale of the Common Stock; or (b) if the Common Stock is not listed
        on any exchange or quotation system, but bid and asked prices are quoted
        and
        published, the mean between the quoted bid and asked prices on the applicable
        date, and if bid and asked prices are not available on such date, on the
        next
        preceding day on which such prices were available; or (c) if the Common Stock
        is
        not listed on an exchange or quotation system and bid and asked prices are
        not
        quoted and published, as determined by the Board in good faith.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      7.10. Governing
        Law.
        The Plan
        and the Stock Option Agreement shall be construed in accordance with the
        laws of
        the State of Texas, without regard to the conflict of law provisions of any
        jurisdiction.

      

      7.11. Term
        of the Plan. The
        Plan
        has an indefinite term.

      

      7.12. Approved.
        The
        structure of the plan and the wording for the Stock Option Agreement for
        the
        Grant of Non-Qualified Stock Options was approved at the April 11, 2005 Board
        of
        Directors Meeting.Exhibit
        10.12

      

      CONTRIBUTION
        AGREEMENT

      

      This
        Contribution Agreement (the "Agreement")
        is
        made and entered into effective as of July 22, 2004 by and among J. Kevin
        Shurtleff and Andrew J. Nielson (the "Assignors")
        and
        Trulite, Inc., a Delaware corporation (the "Assignee").
        

      

      WHEREAS,
        Assignors own all of the outstanding membership units (the "Transferred
        Interest")
        of
        Trulite Technology, LC, a Utah limited liability company (the "Company");

      

      WHEREAS,
        Assignors wish to contribute (the “Contribution”)
        to
        Assignee the Transferred Interest in exchange for an aggregate of 592,460
        shares
        of Common Stock, $.0001 par value per share, of Assignee (“Common
        Stock”)
        and
        20,000 shares of Series A Preferred Stock, $.0001 per value per share, of
        Assignee (“Preferred
        Stock”);
        

      

      WHEREAS,
        in
        connection with the transfer of the Transferred Interest, Trulite Energy
        Partners, L.P. will subscribe for 100,000 shares of Preferred Stock of Assignee
        for an aggregate purchase price of $100,000 (the “Subscription”);
        and

      

      WHEREAS,
        the
        Contribution and the Subscription are intended to constitute an exchange
        described in Section 351 of the Internal Revenue Code of 1986.

      

      NOW
        THEREFORE,
        Assignors and Assignee hereby agree as follows:

      

      Assignment.
        Each Assignor hereby conveys, sells, assigns, transfers and delivers to
        Assignee, as a contribution to its capital, any and all right, title and
        interest of such Assignor in and to the Transferred Interest, together with
        (a)
        any membership certificates evidencing the Transferred Interest; (b) any
        dividends, income or other distributions made or to be made to such Assignor
        in
        respect of the Transferred Interest, (c) any cash representing any such
        dividends, income or other distributions and (d) any profits, losses and
        capital
        allocable to such Assignor with respect to the Transferred
        Interest.

      Consideration.
        In exchange for the equity contribution of the Transferred Interest to Assignee,
        Assignee shall issue to Assignors the following number of shares of Common
        Stock
        and Preferred Stock set forth opposite their respective names:

      

      
        	
                Assignor

              	
                Common
                  Stock

              	
                Preferred
                  Stock

              
	
                J.
                  Kevin Shurtleff

              	
                394,973
                  shares

              	
                6,250

              
	
                Andrew
                  J. Nielson

              	
                197,487
                  shares

              	
                13,750

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Representations
        and Warranties of Assignors.

       

      The
        Company is a limited liability company duly organized, validly existing and
        in
        good standing under the laws of the State of Utah.

       

      Each
        Assignor has all requisite legal right, power, capacity and authority to
        execute, deliver and perform his obligations under this Agreement.

       

      The
        Assignors own all of the outstanding membership units of the Company, which
        constitute the Transferred Interest. There are no liens or other encumbrances
        upon the Transferred Interest, and the contribution of such interest hereunder
        will not result in any such liens or other encumbrances thereon. Except for
        the
        option to purchase membership interests granted by Andrew J. Nielson to Eric
        J.
        Ladd, there are (i) no agreements, written or oral, between the Company and
        any
        holders of its securities or between the Company or any holder of its securities
        and any other persons or among any holders of the Company’s securities, relating
        to the sale or transfer or voting of the membership interests of the Company
        or
        (ii) outstanding rights or options to subscribe for or purchase from the
        Company
        or any holders of its securities, or any warrants or other agreements providing
        for or requiring the issuance or purchase by the Company of, any membership
        interests in the Company.

       

      The
        contribution of the Transferred Interest hereunder, will not (i) violate
        the
        organizational documents of the Company, (ii) violate, conflict with or result
        in a breach of any provision of, or constitute a default under, or result
        in the
        termination or cancellation of, or accelerate the performance required by,
        or
        result in the creation of any lien or other encumbrance upon any of the
        properties of the Company, under any note, bond, mortgage, indenture, license,
        franchise, permit, lease, contract, agreement or other instrument or commitment
        or obligation to which the Company or any of their respective properties
        may be
        bound, (iii) violate any law applicable to the Company or any of its properties,
        or (iv) require any consent, approval or authorization of, or notice to,
        or
        declaration, qualification, filing or registration with, any federal, state
        or
        local governmental authority or any other person, including any party to
        a
        contract or other agreement to which the Company is a party, in connection
        with
        the execution, delivery and performance of this Agreement.

       

      Successors
        and Assigns. This Agreement shall be binding upon, and shall inure to the
        benefit of, the parties hereto and their respective heirs, legatees, successors
        and assigns.

       

      Indemnification.
        Each Assignor agrees, jointly and severally, to fully defend, save and hold
        harmless Assignee, and will reimburse Assignee for, from and against each
        and
        every claim, loss, liability, damage, cost and expense (including reasonable
        attorneys’ fees and expenses), whether or not involving a third-party claim,
        arising out of or resulting from, directly or indirectly, or arising in
        connection with any inaccuracy or breach of any representation or warranty
        made
        by the Assignors in this Agreement 

       

      Entire
        Agreement. This Agreement constitutes the entire agreement of the parties
        hereto
        with respect to the subject matter hereof and supersedes all prior agreements,
        written or oral, with respect thereto.

       

      Further
        Assurances. The parties agree to (a) execute and deliver to each other such
        other documents and (b) to do such other acts and things, all as the other
        party
        may reasonably request for the purpose of carrying out the purposes and intent
        of this Agreement.

       

      Amendment.
        This Agreement shall not be amended or modified except with the express written
        consent of all of the parties hereto.

       

      
        Counterparts.
          This Agreement may be executed in two or more counterparts all of which
          together
          shall constitute one and the same instrument.

      

       

      Governing
        Law. This Agreement shall be governed by and construed in accordance with
        the
        laws of the State of Texas, excluding any such laws that direct the application
        of the laws of any other jurisdiction.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, this Agreement has been duly executed by the parties effective
        for all purposes as of the date first written above.

      
        	 	 	 
	 	ASSIGNEE:
	 	 
	 	TRULITE, INC.
	 
 	 
 	 
 
	 	By:  	
	 	
                
Name: Willima
                J. Berger
	 	
                Title: 
                  Chairman

              

      

       

      
        	 	 	 
	 	ASSIGNORS:

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