Document:

buckeye_sb2a1-ex1020.htm

    Exhibit 10.20

     

    
      

       

      WORLD
WIDE MOTION PICTURES CORPORATION

      EXECUTIVE'S

      EMPLOYMENT
CONTRACT

       

      

      AGREEMENT
mode this 20th day of
 October, 1983 by and between  WORLD WIDE MOTION PICTURES
CORPORATION (hereinafter referred to as "Employer") and PAUL D. HANCOCK
(hereinafter referred to as "Chief Executive").

      

      W I T N E
S S E T H :

       

      FOR and
in consideration of the terms and covenants hereinafter set forth, the parties
hereby agree as follows;

       

      1.    Engagement and
duties

       

      A.    Employer
hereby employs Chief Executive to render his services as herein. required during
the term of this agreement, and Chief Executive hereby accept such employment
and agrees to keep and perform all of the duties, obligations and agreements
assumed and entered into by him hereunder.

       

      B.    Chief
Executive agrees that during the term of this agreement he will serve as
President and Chief Executive Officer of employer and in this capacity will be
exclusively In charge of all of the Employer's business, Chief Executive shall
perform such executive duties as are normally and ordinarily performed by heads
of businesses in accordance with all reasonable policies of the Employer's Board
of Directors.

       

      C.    The
Employer recognizes that the performance of Chief Executive's duties will
require him to travel. Employer will therefore provide and/or reimburse Chief
Executive for all travel and living expenses as may be incurred by Chief
Executive In his best business judgment and in the best business Interests of
Employer as reasonable and necessary in the proper performance of Chief
Executive's duties.

       

      D.    Chief
Executive, at his sole discretion, may elect at any time to assume the position,
duties, or responsibilities, of any office or job employed by the Employer at
compensation commensurate with the position and office assumed,

       

      2.    Term of
Employment

       

      A.    The term
of Chief Executive's employment shall be deemed to have commenced on August 1,
1977 and shall continue for a term of thirty-five (35) years with an option to
renew for an additional term of ten (10) years at the sole discretion of Chief
Executive.

       

      B.    Chief
Executive may take a leave of absence without compensation from time to time at
his sole discretion for periods of no longer then one year at a
time.

       

      3.    Fixed Compensation

       

      A.    Employer
agrees to pay to Chief Executive a salary of Eighty-Five Thousand ($85,000.00)
Dollars per year, in equal monthly installments.

       

      B.    Chief
Executive's base salary set forth in Paragraph 3.A. above Shall be increased
each year by the greater of (a) Fifteen Thousand ($15,000.00) Dollars or (b) the
proportionate increase in the Consumer Price Index published by
the  U.S. Government Department of Labor, Bureau of Labor Statistics
(the "CP Index") over the amount of the CP index published immediately prior to
the prior anniversary date. For purposes hereof, the CP Index shall mean the
Consumer Price Index for all items for the Metropolitan Los Angeles area; and in
the event that the compilation and publication of that index or subsequent index
shell be discontinued, Employer are Chief Executive shall, by agreement, select
an alternative index or method to compute the incense in the cost of living in
the Metropolitan Los Angeles area.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

       

      4.    Business Expenses Benefits and
insurance

       

      A.    During
the term of this agreement, Chief Executive shall be authorized to incur
reasonable expenses (including without limitation, business related travel and
entertainment) in the conduct of Employer's business. Employer agrees to
reimburse Chief Executive for all such expenses upon presentation by Chief
Executive of an accounting with respect to such expenses, in conformity with
Employer's then existing expense reimbursement policy.

       

      B.    Employer
shall at Employer's expense, furnish Chief Executive with (1) American-trade,
luxury-type automobile of Chief Executive's choice (including taxes, gasoline,
garage, maintenance, repairs and insurance) for use by Chief Executive for and
in connection with Chief Executive's performance of his duties
hereunder.  Each two years of the term of this agreement thereafter
Chief Executive shall, at Chief Executive's request, be furnished with a new
model American -made, luxury-type automobile to replace the model then in use by
him.

       

      C.    Chief
Executive shall be entitled during each year of the term of the agreement to a
vacation in accordance with Employer's then standard employment practices, but
in no event less than four (4) weeks, during which time the salary shall be paid
in full.

       

      D.    Chief
Executive shall be entitled to participate in all employee benefit plans
available for Employer's key executives, including at a minimum full and
complete Health Care coverage and a major medical coverage.

       

      E.    Employer
agrees to obtain and maintain at Employer's expanse, a
term policy of life insurance on Chief Executive's life, to be owned by Chief
Executive or his designee, with benefits payable as the Chief Executive shall
direct in the amount of Two Hundred and Fifty Thousand ($250,000.00) Dollars.
Employer shall promptly furnish to Chief Executive a certificate of insurance
evidencing the aforesaid policy and during the term of this agreement Employer
shall furnish upon Chief Executive's request such further certificate to Chief
Executive to show evidence that such policy continues to be in full force and
effect.

       

      F.    Chief
Executive acknowledges and agrees that Employer has and shall have during the
term of this agreement an insurable interest in Chief Executive's life and
health and further acknowledges and agreed that Employer may, in its discretion,
obtain and maintain, at Employer's expense and for its own account, one or more
policies insuring Chief Executive's life or health, with the proceeds (if any)
thereof payable exclusively to Employer, and that Chief Executive shall have no
right or interest of any kind therein.

       

      G.    Chief
Executive shall cooperate fully with Employer and admit to such physical
examinations and make such of his health and medical records available to
Employer as shall be required by the Insurers to effectuate the purposes of
Paragraphs E and F of this section.

       

      5.    Percentile
Compensation

       

      In
addition to the Chief Executive's fixed compensation hereinabove set forth,
Employer shall pay or cause to be paid to Chief Executive the
following amounts with respect to each motion picture, the initial development
of which is commenced during the term of this agreements.

       

      A.    One and
one-half (1 1⁄2) percent of
Employer's gross receipts with respect to each such motion picture of any
subsidiary or ancillary rights therein or thereto. For purposes hereof, the term
gross receipts shall refer to all sums either received by
Employer by reason of its direct disposition of rights or credited to the
Employer's account by any distributor, sub-distributor, sublicensee or selling
agent but in either case prior to the deduction of any fees of other expenses.
Where  rights are exploited through a
distributor,  sub-distributor, sub-licensee or selling agent, Chief
Executive’s interest, as aforesaid, shall be paid directly to Chief Executive by
such  party. In  addition thereto,

       

       

       

      
        
          
          

        

        
          - 2
-

          
            

          

        

        
          
          

        

      

       

      B.    Two and
one-half (2 1⁄2 ) percent of Employer's net receipts in respect of each such
motion picture of any subsidiary or ancillary rights therein and thereto. For
purposes hereof, the term net receipts shall refer to all sums actually received
by the Employer after deduction of all fees or other expenses directly allocable
to such  receipts.

       

      C.    One (1)
percent of Employer gross profits  on  all Employer's
business and investment activities.

       

      The
foregoing compensation shall continue to be paid to Chief Executive following
the termination of this agreement, with respect to each motion picture
hereinabove described, for the duration of the exploitation thereof or any
subsidiary or ancillary rights therein and thereto.

       

      6.          Continuation of Chief
Executive’s Services

       

      Notwithstanding
anything elsewhere contained herein, it is expressly agreed that if at the time
of the expiration of this agreement the Chief Executive is engaged in the
rendition of any of his required services hereunder in connection with any
matter or thing not than completed, and if the Employer shall not then have
exercised an option for the further services of the Chief Executive for a
further period, then and in that event the Chief Executive's employment
hereunder, at the option of the Employer may be continued and extended, at the
same rate of salary and upon the same conditions as shall be operative hereunder
immediately prior to the time of such expiration, until the completion of such
of the Chief Executive's required services hereunder as the Employer may desire
In connection therewith, not exceeding sixty (60) days.

       

      7.    Disability

       

      If by
reason of physical disability, Chief Executive shall be incapacitated from fully
performing his obligations hereunder for a period
of one hundred twenty (120) consecutive days or one hundred fifty (150) days
(nonconsecutively) in any consecutive 12-month period, the Employer may, upon
written notice to Chief Executive, terminate this agreement, without prejudice
to Chief Executive's right to receive his fixed
compensation and his percentile compensation herein set forth thereafter in
accordance with Paragraph 5 above through the term of this
agreement end any option period.

       

      8.    Notices

       

      All
notices which either party desires or is required to give to the other pursuant
to or relating to this agreement shall be in writing and delivered personally to
the noticed party and directed to the noticed party by postage pre-paid,
certified mail, return receipt requested, at the respective addresses set
forth below or to such other addresses as the noticed party shall have
previously properly notified the noticing party:

       

      IF TO
EMPLOYER:

       

      World
Wide Motion Pictures Corporation

      c/o
Chairman of the Board and Board of Directors

       

      
         with a
copy to:           
Dykema, Gossett, Spencer, Goodnow & Trigg

        800
Michigan National Tower

      

      Lansing,
Michigan 48933

       

      Attn: D.
Daniel McLellan, Esq.

       

       

      
        
          
          

        

        
          - 3
-

          
            

          

        

        
          
          

        

      

      IF TO
EMPLOYEE;

       

      Mr. Paul
O. Hancock

      124 8th
Street, #8

       Huntington
Beach, CA 92648

       

      with a
copy to:     Helen
Beutner

      6084
Gulley Road

      Dearborn
Heights, Michigan 48127

       

      9.    Construction;
Etc.

       

      A.    This
agreement constitutes the parties' entire understanding and may not be modified
except in writing signed by the party to be charged, and. all prior
negotiations are merged herein.

       

      B.    This
agreement shall be construed in accordance with the laws of the State of
California applicable to agreements entered into and wholly to be performed
therein.

       

      C.    No waiver
in any instance by either party of any provision of this agreement shall be
deemed a waiver thereof by such party of such provision in any other instance or
waiver of any other provision hereunder in any instance.

       

      D.    Chief
Executive shall have the right to cause a certified public accountant to
audit, inspect, copy and abstract Employer's books and records for the purpose
of verifying the accuracy of any accounting and payment made to Chief Executive
hereunder relating to any percentile compensation payable to him. If a material
error shall be ascertained as a result of any such audit, the cost thereof, plus
interest on the unpaid sum at the rate of two (2%)
percent over the then generally prevailing prime rate  in Los Angeles,
California, shall be paid by the Employer to the Chief
Executive.

       

      IN
WITNESS WHEREOF, the parties hereto have executed this agreement the day and
year fIrst above written'

       

       

       

      
      

       

      
        	 	
                /s/
      Rodney C. Kropf

                Rodney C. Kropf

                Chairman of the Board

                World Wide Motion Pictures Corporation

                 

                 

                /s/ Paul D.
      Hancock

                Paul D. Hancock

              

      

       

       

      /s/ Andy Kausse

      Witness:

       

       

      
        
          
          

        

        
          - 4
-

          
            

          

        

        
          
          

        

      

    

     

    
      

      AGREEMENT

      

      Amendment
to Chief Executive's

      Employment
Contract

      

      THIS
AGREEMENT is entered into, effective as of March 1, 2006, between WORLD WIDE
MOTION PICTURES CORPORATION, a Michigan corporation (the "Employer"), WORLD WIDE
ENTERTAINMENT, INC., a Michigan corporation that is wholly owned subsidiary of
the Employer (the "Subsidiary"), and PAUL D. HANCOCK ("Chief
Executive"):

      

      RECITALS:

      

      R1           Employer
and Chief Executive entered into an employment contract on October 20, 1983,
with term effective as of August 1, 1977, a copy of which is attached hereto as
"Exhibit A (the "Existing Contract").

      

      R2           Employer
entered into a Share Exchange Agreement dated October 14, 2006 (the "Share
Exchange Agreement") with Buckeye Ventures, Inc. ("Buckeye") and its
shareholders whereby the shareholders of Buckeye would acquire control of
Employer.

      

      R3           Pursuant
to the Share Exchange Agreement, among other things: (a) Buckeye will become a
wholly owned subsidiary of Employer; (b) Employer will change its name to
"Buckeye Ventures, Inc."; (c) Subsidiary will change its name to "World Wide
Motion Pictures"; (d) Employer will convey all the assets and operations related
to its current motion picture and entertainment business to the Subsidiary; and
(e) Chief Executive will become primarily responsible for the operations of the
Subsidiary.

      

      R4           Employer
and Chief Executive wish to amend the Existing Contract.

      

      THEREFORE,
in consideration of the mutual terms and conditions set forth herein, the
parties agree as follows:

      

      I. Restatement and Amendment to
the Existing Contract. The following subsections of the Existing Contract
are hereby amended by replacing them in their entirety with the new subsections
set forth below. Unless otherwise provided herein, all other provisions of the
Existing Contract will remain in full force and effect.

      

      Paragraph
1. Engagement and
Duties.

      

      Subsection
B of Paragraph 1 of the Existing Contract is replaced with the
following:

      

      B. Chief
Executive, Employer, and Subsidiary agree that during the term of this
Agreement, Chief Executive will serve as President and Chief Executive Officer
of Subsidiary, and in this capacity will be exclusively in charge of all of
Subsidiary's business and operations. Chief Executive shall perform such
executive duties as are normally and ordinarily performed by heads of businesses
in accordance with all reasonable policies of the Board of Directors of
Subsidiary.

      

      
        
           

        

        
          Page 1 of
4

          
            

          

        

        
           

        

      

      

      Paragraph
2. Term of
Employment

      

      Subsection
A of Paragraph 2 of the Existing Contract is replaced with the
following:

      

      A. Chief
Executive, Employer, and Subsidiary agree that the term of Chief Executive's
employment, which commenced on August 1, 1977, and was to continue for
thirty-five (35) years with an option to renew for an additional ten (10) years,
is changed to: continue for six (6) years from March 1, 2006. In addition, if
the market price of Employer's common stock has not attained a minimum
consistent price of $2.50 per share, for a twelve (12) month consecutive period,
as traded on a national stock exchange, then Chief Executive will have the
option, at his sole discretion, to continue his employment on the same then
existing terms and conditions for an additional one (1) year.

       

      
        Paragraph
3. Fixed
Compensation

        

        Subsections
A and B of Paragraph 3 of the Existing Contract are replaced with the
following:

        

        A.
Employer and Subsidiary agree, jointly and severally, to pay to Chief Executive
from funds provided by Employer, in equal monthly installments, an initial base
salary of ninety thousand dollars ($90,000) per year or an amount commensurate
with the salaries of other senior executives of Employer, at the option of the
Board of Directors.

         

        B. Chief
Executive's base salary set forth in paragraph 3(A) above shall be increased
each year of the term of the Agreement by an amount determined by Employer's
Board of Directors, but in no event less than twenty thousand dollars ($20,000)
per year, which funds shall be provided by Employer.

      

      

      Paragraph
4. Business Expenses,
Benefits, and Insurance

      

      Subsections
E, H and I of Paragraph 4 of the Existing Contract are replaced with the
following:

      

      E.
Employer and Subsidiary agree, jointly and severally, to obtain and maintain at
Employer's expense, a term policy of life insurance on Chief Executive's life,
to be owned by Chief Executive or his designee, with benefits payable as the
Chief Executive shall direct in the amount of Five Hundred Thousand ($500,000)
Dollars. Employer shall promptly furnish to Chief Executive a certificate of
insurance evidencing the aforesaid policy and during the term of this agreement
Employer shall furnish upon Chief Executive's request such further certificate
to Chief Executive to show evidence that such policy continues to be in full
force and effect. The policy shall be a 10 year term policy provided Chief
Executive passes the insurer's standard physical.

      

      H.
Employer and Subsidiary agree, jointly and severally, that Chief Executive shall
be allowed and entitled to participate in any pension plan offered by Employer
and/or which is participated in by other executives of Employer,
and:

       

      
        
           

        

        
          Page 2 of
4

          
            

          

        

        
           

        

      

      
 

      I. Chief
Executive shall be nominated and elected to the Board of Directors of Employer
as Vice Chairman, serve on the Executive Committee of Employer's Board and shall
remain on Employer's Board as Vice Chairman and on the Executive Committee of
Employer's Board for the duration of his term of employment. Chief Executive
shall be nominated and elected to the Board of Directors of Subsidiary, serve on
the Executive Committee of the Subsidiary's Board and shall remain on the
Subsidiary's Board and Executive Committee for the duration of the term of his
employment.

      

      Paragraph
5. Percentile
Compensation

      

      The
following new Subsection D is added to Paragraph 5 of the Existing
Contract:

      

      D. Any
references in this Paragraph 5 to Employer's "gross receipts", "net receipts" or
"gross profits" from each motion picture, the initial development of which is
commenced during the term of this Agreement, shall include the Subsidiary's
"gross receipts", "net receipts" or "gross profits" from each motion picture
that meets that requirement.

      

      Paragraph
7. Disability

      

      Paragraph
7 of the Existing Contract is deleted.

      

      Paragraph
8. Notices

      

      Paragraph
8 of the Existing Contract is replaced with the following:

      

      All
written notices, documents, certificates, securities, payments and/or reports
permitted or requested to be delivered by any provisions of this Agreement shall
be deemed delivered: (1) At the time delivered by hand, (2) One (1) business day
after transmission by electronic means or (3) One (1) business day after
placement in the United States Mail by registered or certified mail, return
receipt requested, postage prepaid and addressed to the party to be notified at
its most current principal business address of which the notifying party has
been notified. All notices, documents, certificates, securities, payments and/or
reports required by this Agreement shall be directed to Employer at the
following address 1040 West Wind Way, Newport Beach, California 92660 or to such
other places as Employer may direct from time to time; and to Chief Executive at
the following address, 6246 Seabourne, Huntington Beach, CA 92648, or to such
other places as Chief Executive may direct from time to time; and to Subsidiary
at the following address, 2120 Main Street, Suite 180, Huntington Beach, CA
92648, or to such other places as Subsidiary may direct from time to
time.

      

      II.
Employer, exclusive of Subsidiary, shall be primarily responsible for all
financial obligations to Chief Executive, as set forth in this Agreement and the
Existing Contract. If the assets of Employer, exclusive of Subsidiary, are not
sufficient to satisfy these financial obligations to Chief Executive, then
Subsidiary, at the option of Chief Executive, shall become responsible for
satisfying these obligations to Chief Executive.

       

       

      
        
           

        

        
          Page 3 of
4

          
            

          

        

        
           

        

      

      
 

      III.
Notwithstanding the date the parties execute this Agreement, terms and
provisions of this Agreement shall be effective on March 1, 2006, on the
condition that the Closing as defined in the Share Exchange Agreement is
effected.

      

      

      EMPLOYER

      WORLD
WIDE MOTION PICTURES CORPORATION

      

      
        	
                /s/
      Alan Mintz
      
                  
      

              	 
      	
                Dated:
      February 22, 2006

              
	
                Alan
      Mintz

              	 
      	 
      
	
                Chairman
      of the Board of Directors

              	 
      	 
      
	 
      	 
      	 
      
	
                /s/
      signature
      
                  
       

              	 
      	
                Dated:
      February 22, 2006

              
	
                Witness

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                CHIEF
      EXECUTIVE

              	 
      	 
      
	 
      	 
      	 
      
	
                /s/
      Paul D. Hancock
      
                  
       

              	 
      	
                Dated:
      February 22, 2006

              
	
                Paul
      D. Hancock

              	 
      	 
      
	 
      	 
      	 
      
	
                /s/
      signature
      
                  
       

              	 
      	
                Dated:
      February 22, 2006

              
	
                Witness

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                SUBSIDIARY

              	 
      	 
      
	
                WORLD
      WIDE ENTERTAINMENT, INC.

              	 
      	 
      
	 
      	 
      	 
      
	
                /s/
      Larry Epstein
      
                  
       

              	 
      	
                Dated:
      February 22, 2006

              
	
                Larry
      Epstein

              	 
      	 
      
	
                Secretary
      of the Board of Directors

              	 
      	 
      
	 
      	 
      	 
      
	
                /s/
      signature
      
                  
       

              	 
      	
                Dated:
      February 22, 2006

              
	
                Witness

              	 
      	 
      

      

      
 

       

       

      Page
4 of 4ex4215.htm

    

     

    Second
      Amendment

     

    Dated
      as
      of January 17, 2008

     

    to

     

    Warrant
      Agreement

     

    between

     

    Stratus
      Services Group, Inc.

     

    and

     

    American
      Stock Transfer & Trust Company

     

    Dated
      as
      of July 14, 2004

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      Second Amendment dated as of January 17, 2008 (the “Amendment”) to Warrant
      Agreement dated as of July 14, 2004 (the “Warrant Agreement”) between Stratus
      Services Group, Inc., a Delaware corporation (the “Company”) and American Stock
      Transfer and Trust Company, a New York corporation (the “Warrant
      Agent”).

     

    WHEREAS,
      the Company and the Warrant Agent have previously entered into the Warrant
      Agreement; and

     

    WHEREAS,
      the Company and the Warrant Agent have previously entered into First Amendment
      Dated as of January 14, 2007 to Warrant Agreement; and

     

    WHEREAS,
      the Company and the Warrant Agent wish to enter into this Second Amendment
      to
      amend certain terms of the Warrant Agreement to extend the Expiration Date
      of
      the Warrant;

     

    NOW,
      THEREFORE, in consideration of the premises and mutual agreements herein set
      forth, the parties hereto agree as follows:

     

    
      	
              1.  

            	
              Extension
                of
                Expiration Date.  Section 2(a) of the Warrant Agreement
                is hereby amended and restated to read in its entirety as
                follows:

            

    

     

    “The
      Warrant Certificates (and the Form of Election to Purchase and the Form of
      Assignment to be printed on the reverse thereof) shall be in registered form
      only and shall be substantially of the tenor and purport recited in Exhibit
      A
      hereto, and may have such letters, numbers or other marks of identification
      or
      designation and such legends, summaries or endorsements printed, lithographed
      or
      engraved thereon as the Company may deem appropriate and as are not inconsistent
      with the provisions of this Agreement, or as may be required to comply with
      any
      law, or with any rule or regulation made pursuant thereto, or with any rule
      or
      regulation of any stock exchange on which the Common Stock or the Warrants
      may
      be listed or any automated quotation system, or to conform to
      usage.  Each Warrant Certificate shall entitle the registered holder
      thereof, subject to the provisions of this Agreement and of the Warrant
      Certificate, to purchase, on or after July 14, 2005 and on or before the close
      of business on January 17, 2009 (the "Expiration Date"), one fully paid and
      non-assessable share of Common Stock for each Warrant evidenced by such Warrant
      Certificate for $0.50.  The exercise price of the Warrants (the
      "Exercise Price") is subject to adjustments as provided in Section 6
      hereof.  Each Warrant Certificate shall be dated the date on which the
      Warrant Agent receives valid issuance instructions from the Company or a
      transferring holder of a Warrant Certificate or, if such instructions specify
      another date, such other date.”

     

    
      	
              2.  

            	
              Amendment
                of Warrant
                Certificate.  Exhibit A to the Warrant Agreement is
                hereby restated and replaced in its entirety by Exhibit A to the
                Amendment.

            

    

     

    
      	
              3.  

            	
              Descriptive
                Headings.  The descriptive headings of the sections of
                this Amendment are inserted for convenience only and shall not control
                or
                affect the meaning of any of the provisions
                hereof.

            

    

     

    
      	
              4.  

            	
              Counterparts.  This
                Amendment may be executed in any number of counterparts, each of
                which
                shall be an original, but such counterparts shall together constitute
                one
                and the same instrument.

            

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
      executed as of the day and year first above written.

     

    STRATUS
      SERVICES GROUP,
      INC.

                                                                    By:       
      /s/ Michael A. Maltzman

                                                                    Name:
      Michael A. Maltzman

                                                                    Title:
      Executive Vice President &
CFO

    

    AMERICAN
      STOCK TRANSFER &
TRUST

    COMPANY

                                                                    By:       
      /s/ Wilbert Myles

                                                                      Name:
      Wilbert Myles

                                                                      Title:
      Vice President

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Exhibit
      A

     

    VOID
      AFTER 5 P.M. EASTERN TIME ON January 14, 2009

     

    WARRANTS
      TO PURCHASE COMMON STOCK

     

    __________
      Warrants

     

    W
      -                                            
Stratus Services Group, Inc.

     

    CUSIP
      __________

     

    THIS
      CERTIFIES THAT

     

    or
      registers assigns, is the registered holder of the number of Warrants
      ("Warrants") set forth above.  Each Warrant, unless and until redeemed
      by the Company as provided in the Warrant Agreement, hereinafter more fully
      described (the " Warrant Agreement") entitles the holder thereof to purchase
      from Stratus Services Group, Inc., a corporation incorporated under the laws
      of
      the State of Delaware ("Company"), subject to the terms and conditions set
      forth
      hereinafter and in the Warrant Agreement, at any time on or after July 14,
      2005
      and before the close of business on January 17, 2009 ("Expiration Date"), one
      fully paid and non-assessable share of Common Stock, $0.04 par value, of the
      Company ("Common Stock") upon presentation and surrender of this Warrant
      Certificate, with the instructions for the registration and delivery of Common
      Stock filled in, at the stock transfer office in New York, New York, of American
      Stock Transfer & Trust Company, Warrant Agent of the Company ("Warrant
      Agent") or of its successor warrant agent or, if there be no successor warrant
      agent, at the corporate offices of the Company, and upon payment of the Exercise
      Price (as defined in the Warrant Agreement) and any applicable taxes paid either
      in cash, or by certified or official bank check, payable in lawful money of
      the
      United States of America to the order of the Company.  Each Warrant
      initially entitles the holder to purchase one share of Common Stock for $0.50
      (subject to appropriate adjustments as provided in the Warrant
      Agreement).  The number and kind of securities or other property for
      which the Warrants are exercisable are subject to adjustment in certain events,
      such as mergers, splits, stock dividends, splits and the like, to prevent
      dilution.  The Company may redeem any or all outstanding and
      unexercised warrants by giving not less than 30 days prior notice at any time
      after the last reported sale price of the Common Stock on the principal exchange
      on which it is traded has equaled or exceeded $1.33 per share (subject to
      appropriate adjustments as provided in the Warrant Agreement) on each of twenty
      (20) consecutive trading days subsequent to July 14, 2005.  The
      Redemption Price is $0.08 (subject to appropriate adjustments as provided in
      the
      Warrant Agreement) per Warrant.  All Warrants not theretofore
      exercised will expire on the Expiration Date.

     

    This
      Warrant Certificate is subject to all of the terms, provisions and conditions
      of
      the Warrant Agreement, dated as of July 14, 2004, between the Company and the
      Warrant Agent, to all of which terms, provisions and conditions the registered
      holder of this Warrant Certificate consents by acceptance hereof.  The
      Warrant Agreement is incorporated herein by reference and made a part hereof
      and
      reference is made to the Warrant Agreement for a full description of the rights,
      limitations of rights, obligations, duties and immunities of the Warrant Agent,
      the Company and the holders of the Warrant Certificates.  Copies of
      the Warrant Agreement are available for inspection at the stock transfer office
      of the Warrant Agent or may be obtained upon written request addressed to the
      Company at Stratus Services Group, Inc., 149 Avenue at the Common, Suite 3,
      Shrewsbury, NJ  07702, Attention: Chief Financial
      Officer.

     

    The
      Company shall not be required upon the exercise of the Warrants evidenced by
      this Warrant Certificate to issue fractions of Warrants, Common Stock or other
      securities, but shall make adjustment therefore in cash on the basis of the
      current market value of any fractional interest as provided in the Warrant
      Agreement.

     

    In
      certain cases, the sale of securities by the Company upon exercise of Warrants
      would violate the securities laws of the United States, certain states thereof
      or other jurisdictions.  The Company has agreed to use all
      commercially reasonable efforts to cause a registration statement to continue
      to
      be effective during the term of the Warrants with respect to such sales under
      the Securities Act of 1933, and to take such action under the laws of various
      states as may be required to cause the sale of securities upon exercise to
      be
      lawful.  However, the Company will not be required to honor the
      exercise of Warrants if, in the opinion of the Board of Directors, upon advice
      of counsel, the sale of securities upon such exercise would be
      unlawful.  In certain cases, the Company may, but is not required to,
      purchase Warrants submitted for exercise for a cash price equal to the
      difference between the market price of the securities obtainable upon such
      exercise and the exercise price of such Warrants.

     

    This
      Warrant Certificate, with or without other Certificates, upon surrender to
      the
      Warrant Agent, any successor warrant agent or, in the absence of any successor
      warrant agent, at the corporate offices of the Company, may be exchanged for
      another Warrant Certificate or Certificates evidencing in the aggregate the
      same
      number of Warrants as the Warrant Certificate or Certificates so
      surrendered.  If the Warrants evidenced by this Warrant Certificate
      shall be exercised in part, the holder hereof shall be entitled to receive
      upon
      surrender hereof another Warrant Certificate or Certificates evidencing the
      number of Warrants not so exercised.

     

    No
      holder
      of this Warrant Certificate, as such, shall be entitled to vote, receive
      dividends or be deemed the holder of Common Stock or any other securities of
      the
      Company which may at any time be issuable on the exercise hereof for any purpose
      whatever, nor shall anything contained in the Warrant Agreement or herein be
      construed to confer upon the holder of this Warrant Certificate, as such, any
      of
      the rights of a stockholder of the Company or any right to vote for the election
      of directors or upon any matter submitted to stockholders at any meeting thereof
      or give or withhold consent to any corporate action (whether upon any matter
      submitted to stockholders at any meeting thereof, or give or withhold consent
      to
      any merger, recapitalization, issuance of stock, reclassification of stock,
      change of par value or change of stock to no par value, consolidation,
      conveyance or otherwise) or to receive notice of meetings or other actions
      affecting stockholders (except as provided in the Warrant Agreement) or to
      receive dividends or subscription rights or otherwise until the Warrants
      evidenced by this Warrant Certificate shall have been exercised and the Common
      Stock purchasable upon the exercise thereof shall have become deliverable as
      provided in the Warrant Agreement.

     

    If
      this
      Warrant Certificate shall be surrendered for exercise within any period during
      which the transfer books for the Company's Common Stock or other class of stock
      purchasable upon the exercise of the Warrants evidenced by this Warrant
      Certificate are closed for any purpose, the Company shall not be required to
      make delivery of certificates for shares purchasable upon such transfer until
      the date of the reopening of said transfer books.

     

    Every
      holder of this Warrant Certificate by accepting the same consents and agrees
      with the Company, the Warrant Agent, and with every other holder of a Warrant
      Certificate that:

     

    
      	
              (a)  

            	
              this
                Warrant Certificate is transferable on the registry books of the
                Warrant
                Agent only upon the terms and conditions set forth in the Warrant
                Agreement, and

            

    

     

    
      	
              (b)  

            	
              the
                Company and the Warrant Agent may deem and treat the person in whose
                name
                this Warrant Certificate is registered as the absolute owner hereof
                (notwithstanding any notation of ownership or other writing thereon
                made
                by anyone other than the Company or the Warrant Agent) for all purposes
                whatever and neither the Company nor the Warrant Agent shall be affected
                by any notice to the contrary.  The Company shall not be
                required to issue or deliver any certificate for shares of Common
                Stock or
                other securities upon the exercise of Warrants evidenced by this
                Warrant
                Certificate until any tax which may be payable in respect thereof
                by the
                holder of this Warrant Certificate pursuant to the Warrant Agreement
                shall
                have been paid, such tax being payable the holder of this Warrant
                Certificate at the time of
                surrender.

            

    

     

    This
      Warrant Certificate shall not be valid or obligatory for any purpose until
      it
      shall have been countersigned by the Warrant Agent.

     

    WITNESS
      the facsimile signatures of the proper officers of the Company and its corporate
      seal.

     

    Dated:  01/17/08

     

    ATTEST:                                                                
      Stratus Services Group, Inc.

    /s/
      J. Todd Raymond

    By:  /s/
      Michael A.
      Maltzman                                                                    

    Name:
      J.
      Todd
      Raymond                                             Name:
      Michael A. Maltzman

    Title:  Secretary                                                           Title:
      Executive Vice President & CFO

     

    Countersigned:

     

    AMERICAN
      STOCK TRANSFER

     &
      TRUST COMPANY

    

     

    By:     /s/
      Wilbert
      Myles                                               

    (Authorized
      Officer)

    Wilbert
      Myles

    Vice
      President

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