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                                                                  Exhibit 10.7.7
                          STRATUS SERVICES GROUP, INC.
                           2002 EQUITY INCENTIVE PLAN

1.       PURPOSE.

         The purpose of this Stratus Services Group, Inc. 2002 Equity Incentive
         Plan (the "Plan") is to advance the interests of Stratus Services
         Group, Inc. (the "Company") and its subsidiaries by enhancing the
         ability of the Company to (i) attract and retain employees and other
         persons or entities who are in a position to make significant
         contributions to the success of the Company and its subsidiaries; (ii)
         reward such persons for such contributions; and (iii) encourage such
         persons or entities to take into account the long-term interest of the
         Company through ownership of shares of the Company's common stock, $.01
         par value per share (the "Common Stock").

         The Plan is intended to accomplish these objectives by enabling the
         Company to grant awards ("Awards") in the form of incentive stock
         options ("ISOs"), nonqualified stock options ("Nonqualified Options")
         (ISOs and Nonqualified Options shall be collectively referred to herein
         as "Options"), stock appreciation rights ("SARs"), restricted stock
         ("Restricted Stock"), deferred stock ("Deferred Stock"), or other stock
         based awards ("Other Stock Based Awards"), all as more fully described
         below.

2.       ADMINISTRATION.

         The Plan will be administered by the Compensation Committee (the
         "Committee") of the Board of Directors of the Company (the "Board").
         The Committee may be constituted to permit the Plan to comply with the
         "disinterested administration" requirement of Rule 16b-3(c) promulgated
         under the Securities Exchange Act of 1934, as amended (the "Exchange
         Act"), or any successor rules, and to comply with the "outside
         director" requirement of Section 162(m)(4)(c)(i) of the Internal
         Revenue Code of 1986, as amended (the "Code"), and the regulations
         promulgated thereunder, or any successor rules. The Committee will
         determine the recipients of Awards, the times at which Awards will be
         made, the size and type or types of Awards to be made to each
         recipient, and will set forth in each such Award the terms, conditions
         and limitations applicable to the Award granted. Awards may be made
         singly, in combination or in tandem. The Committee will have full and
         exclusive power to interpret the Plan, to adopt rules, regulations and
         guidelines relating to the Plan, to grant waivers of Plan restrictions
         and to make all of the determinations necessary for its administration.
         Such determinations and actions of the Committee, and all other
         determinations and actions of the Committee made or taken under
         authority granted by any provision of the Plan, will be conclusive and
         binding on all parties.

3.       EFFECTIVE DATE AND TERM OF PLAN.

         The Plan will become effective upon stockholder approval. Awards under
         the Plan may be made prior to that date, subject to the stockholders'
         approval of the Plan.
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         The Plan will terminate on December 31, 2011, subject to earlier
         termination of the Plan by the Board pursuant to Section 18 herein. No
         Award may be granted under the Plan after the termination date of the
         Plan, but Awards previously granted may extend beyond that date
         pursuant to the terms of such Awards.

4.       SHARES SUBJECT TO THE PLAN.

         Subject to adjustment as provided in Section 16 herein, the aggregate
         number of shares of Common Stock reserved for issuance pursuant to
         Awards granted under the Plan shall be five million (5,000,000). The
         maximum number of shares of Common Stock which may be issued to the
         Chief Executive Officer ("CEO") of the Company pursuant to all Awards
         granted the CEO under the Plan shall not exceed thirty-five percent
         (35%) of the number of shares of the Company's Common Stock reserved
         for issuance hereunder. The maximum number of shares of the Company's
         Common Stock awarded to any other "Participant" (as defined in Section
         5 below) pursuant to all Awards granted to such Participant under the
         Plan shall not exceed twenty percent (20%) of the number of shares of
         the Company's Common Stock reserved for issuance hereunder.

         The shares of Common Stock delivered under the Plan may be either
         authorized but unissued shares of Common Stock or shares of the
         Company's Common Stock held by the Company as treasury shares,
         including shares of Common Stock acquired by the Company in open market
         and private transactions. No fractional shares of Common Stock will be
         delivered pursuant to Awards granted under the Plan and the Committee
         shall determine the manner in which fractional share value will be
         treated.

         If any Award requiring exercise by a Participant for delivery of shares
         of Common Stock is cancelled or terminates without having been
         exercised in full, or if any Award payable in shares of Common Stock or
         cash is satisfied in cash rather than Common Stock, the number of
         shares of Common Stock as to which such Award was not exercised or for
         which cash was substituted will be available for future Awards of
         Common Stock; provided, however, that Common Stock subject to an Option
         cancelled upon the exercise of an SAR shall not again be available for
         Awards under the Plan unless, and to the extent that, the SAR is
         settled in cash. Shares of Restricted Stock and Deferred Stock
         forfeited to the Company in accordance with the Plan and the terms of
         the particular Award shall be available again for Awards under the Plan
         unless the Committee determines otherwise.

5.       ELIGIBILITY AND PARTICIPATION.

         Those eligible to receive Awards under the Plan (each, a "Participant"
         and collectively, the "Participants") will be persons in the employ of
         the Company or any of its subsidiaries designated by the Committee
         ("Employees") and other persons or entities who, in the opinion of the
         Committee, are in a position to make a significant contribution to the
         success of the Company or its subsidiaries, including, without
         limitation, consultants and agents of the Company or any subsidiary;
         provided, that such consultants and agents have been actively engaged
         in the conduct of the business of the Company or any subsidiary. A
         "subsidiary" for purposes of the Plan will be a present or future

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         corporation of which the Company owns or controls, or will own or
         control, more than 50% of the total combined voting power of all
         classes of stock or other equity interests.

6.       OPTIONS.

         (a)      NATURE OF OPTIONS. An Option is an Award entitling the
                  Participant to purchase a specified number of shares of Common
                  Stock at a specified exercise price. Both ISOs, as defined in
                  Section 422 of the Code, and Nonqualified Options may be
                  granted under the Plan; provided however, that ISOs may be
                  awarded only to Employees.

         (b)      EXERCISE PRICE.  The exercise price of each Option shall be
                  equal to the "Fair Market Value" (as defined below) of the
                  Common Stock on the date the Award is granted to the
                  Participant; provided, however, that (i) in the Committee's
                  discretion, the exercise price of a Nonqualified Option may be
                  less than the Fair Market Value of the Common Stock on the
                  date of grant; (ii) with respect to a Participant who owns
                  more than ten percent (10%) of the total combined voting power
                  of all classes of stock of the Company, the option price of an
                  ISO granted to such Participant shall not be less than one
                  hundred and ten percent (110%) of the Fair Market Value of the
                  Common Stock on the date the Award is granted; and (iii) with
                  respect to any Option repriced by the Committee, the exercise
                  price shall be equal to the Fair Market Value of the Common
                  Stock on the date such Option is repriced unless otherwise
                  determined by the Committee. For purposes of this Plan, Fair
                  Market Value shall mean the average of the closing bid and
                  asked prices of the Common Stock as reported on the Nasdaq
                  Smallcap Market on a particular date, or if not quoted on the
                  Nasdaq Smallcap Market, the average the closing bid and asked
                  prices as reported on the NASD OTC Bulletin Board, or if not
                  quoted on the NASD OTC Bulletin Board, as furnished by a
                  professional market maker making a market in the Common Stock
                  as selected by the Committee.  If the Common Stock is not
                  publicly traded, Fair Market Value shall be determined in good
                  faith by the Board of Directors.

         (c)      DURATION OF OPTIONS. The term of each Option granted to a
                  Participant pursuant to an Award shall be determined by the
                  Committee; provided, however, that in no case shall an Option
                  be exercisable more than ten (10) years (five (5) years in the
                  case of an ISO granted to a ten-percent stockholder as defined
                  in (b) above) from the date of the Award.

        (d)       EXERCISE OF OPTIONS AND CONDITIONS. Except as otherwise
                  provided in Sections 16 and 17 herein, and except as otherwise
                  provided below with respect to ISOs, Options granted pursuant
                  to an Award will become exercisable at such time or times, and
                  on and subject to such conditions, as the Committee may
                  specify at the time of the Award. The Options may be subject
                  to such restrictions, conditions and forfeiture provisions as
                  the Committee may determine, including, but not limited to,
                  restrictions on transfer, continuous service with the Company
                  or any of its subsidiaries, achievement of business
                  objectives, and individual, division and Company performance.
                  To the extent exercisable, an Option may be exercised

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                  either in whole at any time or in part from time to time. With
                  respect to an ISO granted to a Participant, the Fair Market
                  Value of the shares of Common Stock on the date of grant which
                  are exercisable for the first time by a Participant during any
                  calendar year shall not exceed $100,000.

        (e)       PAYMENT FOR AND DELIVERY OF STOCK. Full payment for shares of
                  Common Stock purchased will be made at the time of the
                  exercise of the Option, in whole or in part. Payment of the
                  purchase price will be made in cash or in such other form as
                  the Committee may permit, including, without limitation,
                  delivery of shares of Common Stock.

7.      STOCK APPRECIATION RIGHTS.

        (a)       NATURE OF STOCK APPRECIATION RIGHTS. A SAR is an Award
                  entitling the recipient to receive payment, in cash and/or
                  shares of Common Stock, determined in whole or in part by
                  reference to appreciation in the value of a share of Common
                  Stock. A SAR entitles the recipient to receive in cash and/or
                  shares of Common Stock, with respect to each SAR exercised,
                  the excess of the Fair Market Value of a share of Common Stock
                  on the date of exercise over the Fair Market Value of a share
                  of Common Stock on the date the SAR was granted.

        (b)       GRANT OF SARS. SARs may be subject to Awards in tandem with,
                  or independently of, Options granted under the Plan. A SAR
                  granted in tandem with an Option which is not an ISO may be
                  granted either at or after the time the Option is granted. A
                  SAR granted in tandem with an ISO may be granted only at the
                  time the ISO is granted and may expire no later than the
                  expiration of the underlying ISO.

        (c)       EXERCISE OF SARS.  A SAR not granted in tandem with an Option
                  will become exercisable at such time or times, and on such
                  conditions, as the Committee may specify.  A SAR granted in
                  tandem with an Option will be exercisable only at such times,
                  and to the extent, that the related option is exercisable.
                  A SAR granted in tandem with an ISO may be exercised only when
                  the market price of the shares of Common Stock subject to the
                  ISO exceeds the exercise price of the ISO, and the SAR may be
                  for no more than one hundred percent (100%) of the difference
                  between the exercise price of the underlying ISO and the Fair
                  Market Value of the Common Stock subject to the underlying ISO
                  at the time the SAR is exercised.  At the option of the
                  Committee, upon exercise, an SAR may be settled in cash,
                  Common Stock or a combination of both.

8.       RESTRICTED STOCK.

         A Restricted Stock Award entitles the recipient to acquire shares of
         Common Stock, subject to certain restrictions or conditions, for no
         cash consideration, if permitted by applicable law, or for such other
         consideration as may be determined by the Committee. The Award may be
         subject to such restrictions, conditions and forfeiture provisions as
         the Committee may determine, including, but not limited to,
         restrictions on transfer,

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         continuous service with the Company or any of its subsidiaries,
         achievement of business objectives, and individual, division and
         Company performance. Subject to such restrictions, conditions and
         forfeiture provisions as may be established by the Committee, any
         Participant receiving an Award of Restricted Stock will have all the
         rights of a stockholder of the Company with respect to the shares of
         Restricted Stock, including the right to vote the shares and the right
         to receive any dividends thereon.

9.       DEFERRED STOCK.

         A Deferred Stock Award entitles the recipient to receive shares of
         Common Stock to be delivered in the future. Delivery of the shares of
         Common Stock will take place at such time or times, and on such
         conditions, as the Committee may specify. At the time any Deferred
         Stock Award is granted, the Committee may provide that the Participant
         will receive an instrument evidencing the Participant's right to future
         delivery of Deferred Stock.

10.      OTHER STOCK BASED AWARDS.

         The Committee shall have the right to grant Other Stock Based Awards
         under the Plan to Employees which may include, without limitation, the
         grant of shares of Common Stock as bonus compensation and the issuance
         of shares of Common Stock in lieu of an Employee's cash compensation.

11.      AWARD AGREEMENTS.

         The grant of any Award under the Plan may be evidenced by an agreement
         which shall describe the specific Award granted and the terms and
         conditions of the Award. Any Award shall be subject to the terms and
         conditions of any such agreement required by the Committee.

12.      TRANSFERS.

         No Award (other than an outright Award in the form of Common Stock
         without any restrictions) may be assigned, pledged or transferred other
         than by will or by the laws of descent and distribution and, during a
         Participant's lifetime, will be exercisable only by the Participant or,
         in the event of a Participant's incapacity, by the Participant's
         guardian or legal representative.

13.      RIGHTS OF A STOCKHOLDER.

         Except as specifically provided by the Plan, the receipt of an Award
         will not give a Participant rights as a stockholder of the Company. The
         Participant will obtain such rights, subject to any limitations imposed
         by the Plan, or the instrument evidencing the Award, upon actual
         receipt of shares of Common Stock..

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14.      CONDITIONS ON DELIVERY OF STOCK.

         The Company will not be obligated to deliver any shares of Common Stock
         pursuant to the Plan or to remove any restrictions or legends from
         shares of Common Stock previously delivered under the Plan until, (a)
         in the opinion of the Company's counsel, all applicable federal and
         state laws and regulations have been complied with, (b) until the
         shares of Common Stock to be delivered have been listed or authorized
         to be listed on the Nasdaq Smallcap Market, or, if applicable, the NASD
         OTC Bulletin Board, and (c) until all other legal matters in connection
         with the issuance and delivery of such shares of Common Stock have been
         approved by the Company's counsel. If the sale of shares of Common
         Stock has not been registered under the Securities Act of 1933, as
         amended (the "Act"), and qualified under the appropriate "blue sky"
         laws, the Company may require, as a condition to exercise of the Award,
         such representations and agreements as counsel for the Company may
         consider appropriate to avoid violation of such Act and laws and may
         require that the certificates evidencing such shares of Common Stock
         bear an appropriate legend restricting transfer.

         If an Award is exercised by a Participant's legal representative, the
         Company will be under no obligation to deliver shares of Common Stock
         pursuant to such exercise until the Company is satisfied as to the
         authority of such representative.

15.      TAX WITHHOLDING.

         The Company will have the right to deduct from any cash payment under
         the Plan taxes that are required to be withheld and to condition the
         obligation to deliver or vest shares of Common Stock under this Plan
         upon the Participant's paying the Company such amount as the Company
         may request to satisfy any liability for applicable withholding taxes.
         The Committee may in its discretion permit Participants to satisfy all
         or part of their withholding liability either by delivery of shares of
         Common Stock held by the Participant or by withholding shares of Common
         Stock to be delivered to a Participant upon the grant or exercise of an
         Award.

16.      ADJUSTMENT OF AWARD.

         (a)   In the event that a dividend shall be declared upon the Common
               Stock payable in shares of Common Stock, the number of shares of
               the Common Stock then subject to any Award and the number of
               shares of the Common Stock which may be issued under the Plan but
               not yet covered by an Award shall be adjusted by adding to each
               share the number of shares which would be distributable thereon
               if such shares had been outstanding on the date fixed for
               determining the stockholders entitled to receive such stock
               dividend. In the event that the outstanding shares of the Common
               Stock shall be changed into or exchanged for a different number
               or kind of shares of Common Stock or other securities of the
               Company or of another corporation or for cash, whether through
               reorganization, recapitalization, stock split, combination of
               shares, sale of assets, merger or

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               consolidation in which the Company is the surviving corporation,
               then, there shall be substituted for each share of the Common
               Stock then subject to any Award, the number and kind of shares of
               stock or other securities or the amount of cash into which each
               outstanding share of the Common Stock shall be so changed or for
               which each such share shall be exchanged.

         (b)   In the event of a proposal, which is approved by the Board, of
               any merger or consolidation involving the Company where the
               Company is not the surviving entity, any sale of substantially
               all of the Company's assets or any other transaction or series of
               related transactions as a result of which a single person or
               several persons acting in concert own a majority of the Company's
               then outstanding Common Stock (such merger, consolidation, sale
               of assets, or other transaction being hereinafter referred to as
               a "Transaction"), all outstanding options and SARs shall become
               exercisable immediately before or contemporaneously with the
               consummation of such Transaction and each outstanding share of
               Restricted Stock and each outstanding Deferred Stock Award shall
               immediately become free of all restrictions and conditions upon
               consummation of such Transaction. Immediately following the
               consummation of the Transaction, all outstanding Options and SARs
               shall terminate and cease to be exercisable.

               In lieu of the foregoing, if the Company will not be the
               surviving corporation or entity, the Committee may arrange to
               have such acquiring or surviving corporation or entity, or an
               "Affiliate" (as defined below) thereof, grant replacement
               Awards which shall be immediately exercisable to Participants
               holding outstanding Awards.

               The term "Affiliate," with respect to any Person, shall mean
               any other Person who is, or would be deemed to be an "affiliate"
               or an "associate" of such Person within the respective meanings
               ascribed to such terms in Rule 12b-2 of the General Rules and
               Regulations under the Exchange Act. The term "Person" shall mean
               a corporation, association, partnership, joint venture, trust,
               organization, business, individual or government or any
               governmental agency or political subdivision thereof.

         (c)   In the event of the dissolution or liquidation of the Company
               (except a dissolution or liquidation relating to a sale of assets
               or other reorganization of the Company referred to in the
               preceding sections), the outstanding options and SARs shall
               terminate as of a date fixed by the Committee; provided, however,
               that not less than thirty (30) days written notice of the date so
               fixed shall be given to each Participant who shall have the right
               during such period to exercise the Participant's Options or SARs
               as to all or any part of the shares of Common Stock covered
               thereby. Further, in the event of the dissolution or liquidation
               of the Company, each outstanding share of Restricted Stock and
               each outstanding Deferred Stock Award shall immediately become
               free of all restrictions and conditions.

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17.      TERMINATION OF SERVICE.

         Upon a Participant's termination of service with the Company or a
         subsidiary (if an employee only of a subsidiary), any outstanding Award
         shall be subject to the terms and conditions set forth below, unless
         otherwise determined by the Committee:

         (a)   In the event a Participant leaves the employ or service of the
               Company or a subsidiary of the Company, prior to the
               Participant's 65th birthday, whether voluntarily or otherwise but
               other than by reason of the Participant's death or "disability"
               (as such term is defined in Section 22(e)(3) of the Code), each
               Option and SAR granted to the Participant shall terminate upon
               the earlier to occur of (i) the expiration of the period three
               (3) months after the date of such termination and (ii) the date
               specified in the Option or SAR; provided, that, prior to the
               termination of such Option or SAR, the Participant shall be able
               to exercise any part of the Option or SAR which is exercisable as
               of the date of termination.  Further, each outstanding share of
               Restricted Stock and each outstanding Deferred Stock Award which
               remains subject to any restrictions or conditions of the Award
               shall be forfeited to the Company upon such date of termination.

         (b)   In the event a Participant's employment with or service to the
               Company or its subsidiaries terminates by reason of the
               Participant's death or "disability" (as such term is defined in
               Section 22(e)(3) of the Code), each Option and SAR granted to the
               Participant shall become immediately exercisable in full and
               shall terminate upon the earlier to occur of (i) the expiration
               of the period six (6) months after the date of such termination
               and (ii) the date specified in the option or SAR.  Further, each
               outstanding share of Restricted Stock and each outstanding
               Deferred Stock Award shall immediately become free of all
               restrictions and conditions upon the date of such termination.

         (c)   In the event a Participant voluntarily leaves the employ or
               service of the Company or a subsidiary of the Company, after the
               Participant's 65th birthday, each Option and SAR granted to the
               Participant shall become immediately exercisable in full and
               shall terminate upon the earlier to occur of (i) the expiration
               of three (3) months after the date of such termination and (ii)
               the date specified in the Option or SAR.  Further, each
               outstanding share of Restricted Stock and each outstanding
               Deferred Stock Award shall immediately become free of all
               restrictions and conditions upon the date of such termination
               unless otherwise provided in the Award.  If the Participant
               involuntarily leaves the employ or service of the Company or a
               subsidiary after the Participant's 65th birthday, each Option and
               SAR granted to the Participant shall terminate upon the earlier
               to occur of (i) the expiration of three (3) months after the date
               of such termination and (ii) the date specified in the Option or
               SAR; provided that, prior to the termination of such Option or
               SAR, the Participant shall be able to exercise any part of the
               Option or SAR which is exercisable as of the date of termination.
               Further, each outstanding share of Restricted Stock and each
               outstanding Deferred Stock Award which remains subject to any
               restrictions or conditions of the Award shall be forfeited to the
               Company upon such date of termination.

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18.      AMENDMENTS AND TERMINATION.

         The Committee will have the authority to make such amendments to any
         terms and conditions applicable to outstanding Awards as are consistent
         with this Plan; provided, that, except for adjustments under Section 16
         hereof, no such action will modify such Award in a manner adverse to
         the Participant without the Participant's consent except as such
         modification is provided for or contemplated in the terms of the Award.

         The Board may amend, suspend or terminate the Plan, except (i) no such
         action may be taken, without stockholder approval, which would
         effectuate any change for which stockholder approval is required
         pursuant to Section 16 of the Exchange Act or Section 162(m) of the
         Code, and (ii) no action may, without the consent of a Participant,
         alter or impair any Award previously granted to the Participant under
         the Plan.

19.      SUCCESSORS AND ASSIGNS.

         The provisions of this Plan shall be binding upon all successors and
         assigns of any such Participant including, without limitation, the
         estate of any such Participant and the executors, administrators, or
         trustees of such estate, and any receiver, trustee in bankruptcy or
         representative of the creditors of any such Participant.

20.      MISCELLANEOUS.

         (a)   This Plan shall be governed by and construed in accordance with
               the laws of the State of New Jersey.

         (b)   Any and all funds received by the Company under the Plan may be
               used for any corporate purpose.

         (c)   Nothing contained in the Plan or any Award granted under the
               Plan shall confer upon a Participant any right to be continued
               in the employment of the Company or any subsidiary, or interfere
               in any way with the right of the Company, or its subsidiaries, to
               terminate the employment relationship at any time.

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                                                                  Exhibit 10.7.8

                          STRATUS SERVICES GROUP, INC.

                        INCENTIVE STOCK OPTION AGREEMENT
                            [FOR GRANTS TO EMPLOYEES]

         STRATUS SERVICES GROUP, INC. a Delaware corporation (the "Company"),
hereby grants to __________________________(the "Optionee"), an Incentive Stock
Option (the "Option") to purchase a total of _______ shares of the Company's
Common Stock, at the price set forth herein, and subject to the terms,
definitions and provisions of the 2002 Equity Incentive Plan (the "Plan")
adopted by the Company, which is incorporated herein by reference. The terms
defined in the Plan shall have the same defined meanings herein.

         1.       NATURE OF THE OPTIONS.  The Incentive Stock Option is intended
to qualify as an "incentive stock option" as defined in Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code"). The shares underlying
the Option are hereinafter referred to as the "Shares".

         2.       EXERCISE  PRICE.  The exercise price of the Option is $_____
per share for each share subject to the Option.

         3.       TERMS OF OPTIONS. This Option is granted in connection with
the Optionee's employment by the Company. Subject to provisions contained
elsewhere in this Agreement, the Option may be exercised cumulatively as set
forth below after the vesting date set forth below, until the day preceding the
tenth anniversary of the date hereof (the "Termination Date"):

                  VESTING DATE                     NUMBER OF OPTIONS
                  ------------                     -----------------

         The Option is subject to earlier termination as provided herein or in
the Plan. The Option may be exercised in whole or in part at any time and from
time to time following the date of grant and prior to the expiration or
termination of the Option.

         Except as otherwise provided in the Plan, no installment of the Option
shall be exercisable prior to the vesting of such installment as provided above.
To the extent that any installment of the Option becomes exercisable, it may
thereafter be exercised either in whole or in part at any time prior to the
expiration of the Option.

         4.       ADMINISTRATION.  The Plan is administered by a committee
of the  Board (the "Committee" as defined in the Plan).  All determinations and
acts of the Committee as to any matters concerning the Plan, including
interpretations  or constructions of this Option and of the Plan, shall be
conclusive and binding on the Optionee and any parties claiming through the
Optionee.

         5.       EXERCISE. Unless the Optionee ceases to be employed by the
Company or a direct or indirect subsidiary thereof, the right of the Optionee to
purchase Shares hereunder, subject to any installment requirements set forth
above, may be exercised in whole or in part at any time after the accrual of
such respective installment and prior to the Termination Date, except as
otherwise provided herein. The Option may not be exercised for a fraction of a
share. Notwithstanding the foregoing, the Optionee's right to exercise the
Option shall be limited by the number of shares of Company Common Stock
available for issuance pursuant to Awards granted under the Plan.

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         6.       NOTICE OF EXERCISE. The Option shall be exercisable by written
notice (the "Notice") which shall state the election to exercise the Option and
the number of Shares in respect of which the Option is being exercised, and such
other representations and agreements as to the Optionee's investment intent with
respect to such Shares as may be required by the Company pursuant to the
provisions of the Plan. Such written notice shall be signed by the Optionee and
shall be delivered in person or by certified mail to the Chief Financial Officer
of the Company. The written notice shall be accompanied by payment in full of
the exercise price in cash or cashier's check made payable to the Company, or in
any other manner approved by the Committee.

         7.       DELIVERY OF CERTIFICATES. As soon as practicable after receipt
of the Notice and payment, and subject to the next two paragraphs, the Company
shall, without transfer or issue tax or other incidental expense to the
Optionee, deliver to the Optionee a certificate or certificates for the shares
of Common Stock so purchased. Such delivery shall be made (a) at the offices of
the Company at 500 Craig Road, Suite 201, Manalapan, NJ 07726; (b) at such other
place as may be mutually acceptable to the Company and the Optionee, or (c) by
certified mail addressed to the Optionee at the Optionee's address shown in the
records of the Company.

         8.       WITHHOLDING. The Company shall have the right to withhold an
appropriate number of shares of Common Stock (based on the fair market value
thereof on the date of exercise) for payment of taxes required by law or to take
such other action as may be necessary in the opinion of the Company to satisfy
all tax withholding obligations.

         9.       COMPLIANCE WITH LAWS. The Company may postpone the time of
delivery of certificate(s) for shares of Common Stock for such additional time
as the Company shall deem necessary or desirable to enable it to comply with the
requirements of any securities exchange upon which the Common Stock may be
listed, or the requirements of the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, any rules or regulations of the
Securities and Exchange Commission promulgated thereunder, or any applicable
state laws relating to the authorization, issuance or sale of securities.

         10.      NON-TRANSFERABLE OPTIONS. During the Optionee's lifetime, this
Option shall be exercisable only by the Optionee and neither this Option nor any
right hereunder may be sold, pledged, assigned, hypothecated, transferred or
disposed of in any manner otherwise than by will or by the laws of descent or
distribution. The terms of this Option Agreement shall be binding upon the
executors, administrators, heirs, successors and assigns of Optionee.

         11.      FAILURE TO PAY. If, upon tender of delivery thereof, the
Optionee fails to accept delivery of and pay or have paid for all or any part of
the number of shares of Common Stock specified in the Notice, the Optionee's
right to exercise this Option with respect to such undelivered and unpaid for
shares may be terminated by the Company.

         12.      RESTRICTIONS ON TRANSFER OF SHARES UNDERLYING OPTIONS.
The issuance of the Shares upon the exercise of the Option and the transfer or
resale of such Shares shall be subject to such restrictions as are, in the
opinion of the Company's counsel, required to comply with the Securities Act of
1933, as amended (the "Act"), and the rules and regulations promulgated
thereunder, and the certificate(s) representing such shares shall, if it is
deemed advisable by the Company's counsel, bear a legend to such effect.

                                       2

<Page>

         13.      NO RIGHTS OF SHAREHOLDER. Neither the Optionee nor any person
or persons entitled to exercise the Optionee's rights under this Option in
accordance herewith shall have any rights to dividends or to Common Stock
subject to this Option, except to the extent that a certificate for such shares
shall have been issued upon the exercise of this Option as provided herein.

         14.      REGISTRATION ON FORM S-8.  The Optionee acknowledges that the
Option may not be exercised until the Company has taken all actions then
required to comply with the Act, and any applicable State Securities laws,
including, without limitation, the filing of a Registration Statement on Form
S-8 which registers the shares issuable upon exercise of the Option under the
Act, and the delivery to the Optionee of such information as may be required
under the Act.

         15.      NOTICES. Each notice relating to this Option shall be in
writing and delivered in person or by certified mail to the proper address. All
notices to the Company shall be addressed to it at its offices at 500 Craig
Road, Suite 201, Manalapan, NJ 07726, attention of the Committee, c/o the
Company's Chief Financial Officer. All notices to the Optionee or other person
or persons then entitled to exercise any rights with respect to this Option
shall be addressed to the Optionee or such other person or persons at the
Optionee's address shown in the records of the Company or the location at which
the Optionee is employed by the Company. Anyone to whom a notice may be given
under this Option may designate a new address by notice to that effect.

         16.      NO RIGHT TO EMPLOYMENT. Neither the adoption of the Plan nor
the granting of this Option confers on the Optionee any right to continued
employment by the Company (or any of its direct or indirect subsidiaries) or in
any way interferes with or alters any of the Company's (and its direct and
indirect subsidiaries') rights to terminate the employment by the Company of the
Optionee at any time, with or without cause, and without liability therefor.
This Option shall not be deemed a part of the Optionee's regular, recurring
compensation for any purpose, including, without limitation, for the purposes of
any termination indemnity or severance pay law of any jurisdiction.

         17.      GOVERNING LAW. This Option and all determinations made and
actions taken pursuant hereto, to the extent not otherwise governed by the
Internal Revenue Code of 1986, as amended from time to time, or the securities
laws of the United States, shall be governed by and construed under the laws of
the State of Delaware.

         IN WITNESS  WHEREOF,  STRATUS  SERVICES GROUP,  INC. has caused this
Option to be executed by its officers as of the _____ day of  __________.

                                              STRATUS SERVICES GROUP, INC.

                                              By:______________________________
                                                 Name:
                                                 Title:
ACCEPTED AND AGREED:

--------------------------

                                       3

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