Document:

Exhibit 10.44

    EXHIBIT
      10.44

    

    

    CAPITAL
      TEMPFUNDS

    a
      division of CAPITAL FACTORS LLC,

    One
      Brixam Green, 15800 John J. Delaney Drive, Suite 300, 

    Charlotte,
      North Carolina 28277

    

    September
      15, 2005

    

    Michael
      A. Maltzman, CFO

    Stratus
      Services Group, Inc.

    500
      Craig
      Road

    Suite
      201

    Manalapan,
      New Jersey 07726

    

    Re:
      AMENDED AND RESTATED FORBEARANCE AGREEMENT (the “Forbearance Agreement”), dated
      as of August 11, 2005, as amended as of August 25, 2005, September 1, 2005
      and
      September 8, 2005, by and between CAPITAL TEMPFUNDS, a division of CAPITAL
      FACTORS LLC, (“Capital”), and STRATUS SERVICES GROUP, INC.
      (“Borrower”)

    

    Dear
      Mr.
      Maltzman:

    

    It
      is
      mutually agreed between the parties hereto that the Forbearance Agreement be
      further amended as follows (all capitalized terms not defined herein shall
      have
      the meaning given such term in the Forbearance Agreement):

    

    	a)  	
            Clause
              (a) of the first sentence Section 3 of the Forbearance Agreement, is
              hereby further amended to replace “September 16, 2005” with “September30,
              2005”;

          

    	b)  	
            In
              consideration of the additional forbearance referred to herein, Borrower
              hereby authorizes Capital to charge Borrower’s loan account with an
              additional Forbearance Fee of $37,500 upon the execution of this letter
              agreement;

          

    

    	c)  	
            Borrower
              hereby further authorizes Capital to charge Borrower’s loan account with a
              fee in the amount of $2, 892 (a “Special Advance Fee”) upon the execution
              of this letter agreement, which Special Advance Fee represents 2% of
              Capital’s advance against in transit collections due from Select Personnel
              Services in the amount of $144,622.

          

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    The
      Borrower hereby represents and warrants to Capital that, after giving effect
      to
      this letter agreement, no Default or Event of Default other than the Designated
      Defaults has occurred and is continuing. Borrower hereby acknowledges and agrees
      that a breach of the representation and warranty set forth herein shall
      constitute a Forbearance Default under the Forbearance Agreement and an Event
      of
      Default under the Loan Agreement. This letter agreement shall not be deemed
      to
      be a waiver, amendment or modification of, or consent to or departure from,
      any
      provisions of the Loan Agreement, the Forbearance Agreement or any other Loan
      Document or to be a waiver of any Forbearance Default under the Forbearance
      Agreement or Default or Event of Default under the Loan Agreement or any other
      Loan Document whether arising before or after the date hereof (except for the
      specific amendment referenced above in this letter agreement), and this letter
      agreement shall not preclude the future exercise of any right, remedy, power
      or
      privilege available to Capital whether under the Forbearance Agreement, the
      Loan
      Agreement, the other Loan Documents or otherwise. All capitalized terms not
      otherwise defined herein shall have the meanings given to them in the
      Forbearance Agreement.

    

    This
      letter agreement shall be deemed to be a Loan Document for all purposes. This
      letter agreement may be executed in one or more counterparts, each of which
      shall be deemed an original and all of which taken together shall constitute
      one
      and the same agreement. Any signature delivered by a party by facsimile
      transmission shall be deemed to be an original signature hereto.

     

    If
      the
      above provisions are satisfactory to you, please execute this letter agreement
      as set forth below and return it to Capital.

    

    Capital
      TempFunds, a division of Capital Factors, LLC

    

    

    By: Gerard
      A. Gabriele   

    

    Its: Senior
      Vice President   

    

    Acknowledged
      and Agreed:

    Stratus
      Service Group, Inc.

    

    

    By: Michael
      A. Maltzman   

    

    Its: Exec.
      VP & CFO   

    2Exhibit 10.45

    

      EXHIBIT
        10.45

      

      
        WRITER'S
          DIRECT DIAL:

        (813)
          227-8473

        WRITER'S
          E-MAIL:

        mbrundage@hwhlaw.com

      

      

      

      

      September
        29, 2005

      

      

      Michael
        A. Maltzman, CFO

      Stratus
        Services Group, Inc.

      500
        Craig
        Road

      Suite
        201

      Manalapan,
        New Jersey 07726

      

      

      

      
        	 	
                Re:

              	
                Continued
                  forbearance regarding default under outsourcing agreement dated
                  August 13,
                  2004, by and between ALS, LLC and Stratus Services Group, Inc.,
                  as amended
                  (the “Agreement”)

              

      

      

      Dear
        Mr.
        Maltzman:

      

      This
        law
        firm represents ALS, LLC (“Advantage”) in connection with the Agreement and
        Advantage’s business relationships with Stratus Services Group, Inc.
        (“Stratus”). Capital TempFunds (“CTF”) is Stratus’ secured lender under the
        terms and conditions of a loan and security agreement dated as of December
        8,
        2000 as amended and modified (the “Secured Loan”). As you know, by letters dated
        July 29, 2005, and August 5, 2005, Advantage has provided Stratus with written
        notices of its defaults and material breaches of payment obligations due
        under
        the Agreement. Stratus has failed to cure the material breaches of payment
        obligations within two business days of notice and therefore, pursuant to
        paragraph 3 of the Agreement, Advantage currently has the right to terminate
        the
        Agreement. Additionally, as a result of the defaults, Stratus owes to Advantage
        $1,000.00 per day of payment obligation breach or 24% annual interest on
        the
        outstanding amount, compounded daily, or a maximum allowed by law, whichever
        is
        higher. We understand that CTF has declared defaults under the Secured Loan,
        but
        has entered into a forbearance agreement with Stratus through at least October
        7, 2005.

      

      This
        letter sets forth the terms by which the parties agree to a forbearance of
        enforcement of existing defaults that have been declared by Advantage as
        to the
        Agreement and CTF as to the Secured Loan. Due to the time urgency in getting
        this letter agreement prepared and executed, the parties agree to enter a
        more
        formal agreement if reasonably necessary.

      

      Advantage
        will forbear from enforcing current defaults under the Agreement, unless
        a
        default occurs hereunder, on the following terms and conditions:

      

      
        	1.  	
                On
                  Stratus’ direction which is given hereby, CTF shall wire transfer to
                  Advantage by 10:00 a.m. Eastern on September 30, 2005 the sum of
                  $1,365,553.85 of the $1,565,382.16 presently owed by Stratus to
                  Advantage
                  pursuant to the terms of the Agreement (which excludes the $600,000
                  subordinated receivable, which will

              

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
        	2.  	
                remain
                  due and owing). The remaining $199,828.34 shall be paid, by wire
                  transfer
                  no later than October 6, 2005. In addition, Stratus owes $30,497.26
                  in
                  undisputed invoices for health insurance and other administrative
                  expenses
                  to ALS, which shall be paid, by wire transfer, no later then October
                  6,
                  2005. Both Stratus and ALS will work in good faith to reconcile
                  any
                  disputed amounts.

              

      

       

      
        	3.  	
                Conditioned
                  upon timely receipt of the payment required in paragraph 1 above,
                  and as
                  long as payment continues to be made in accordance with paragraph
                  4 below,
                  Advantage will release and fund the current payroll associated
                  with the
                  Agreement. 

              

      

       

      
        	4.  	
                Provided
                  that Stratus complies with all the terms of this forbearance agreement,
                  Advantage will continue to perform under the Agreement through
                  October 6,
                  2005.

              

      

       

      
        	5.  	
                Advantage
                  shall invoice to Stratus as to the payroll paid under paragraph
                  2 above
                  consistent with the Agreement except that such invoices shall have
                  two
                  components: (a) invoices totaling the amount of $1,100,000 shall
                  be due
                  and payable on or before October 6, 2005 (the “Deferred Amount”); and (b)
                  the remaining amount due under invoices after deducting $1,100,000
                  shall
                  be due and payable immediately (the “Immediately Due
                  Amount”).

              

      

       

      
        	6.  	
                Stratus
                  shall repay the Immediately Due Amount by directing CTF, on a daily
                  basis
                  starting Friday September 30, 2005, to advance and wire transfer
                  to
                  Advantage from available funds under the Secured Loan. Stratus
                  shall
                  provide Advantage with an exact copy of the loan status provided
                  by
                  CTF.

              

      

       

      
        	7.  	
                Stratus
                  shall be in default hereunder unless the Immediately Due Amount
                  is paid in
                  full by October 5, 2005. The Deferred Amount shall be due in full
                  without
                  further notice or demand at 12:00 p.m. Eastern on October 6,
                  2005.

              

      

       

      
        	8.  	
                Stratus
                  confirms that ALS is entitled to a $50,000 Forbearance Fee through
                  August
                  25, 2005, as previously memorialized in the August 12, 2005 letter
                  agreement between Stratus and ALS. Thereafter, as set forth in
                  the
                  preamble to this letter above, Stratus confirms that ALS is entitled
                  to
                  $1,000 per day of payment obligation breach or 24% annual interest
                  on the
                  outstanding amount, compounded daily, or a maximum allowed by law,
                  whichever is higher. Amounts for fees and or interest due from
                  Stratus to
                  ALS are in addition to the balance due listed above.
                  

              

      

       

      
        	9.  	
                Any
                  further default under the Agreement or the Secured Loan shall be
                  a default
                  hereunder, unless specifically stated other wise herein. A default
                  hereunder or under the Agreement shall entitle Advantage to immediately
                  terminate the Agreement and immediately seek all available remedies.
                  For
                  the term hereof, CTF agrees to give Advantage and Stratus immediate
                  and
                  simultaneous notice of any default by Stratus hereunder or under
                  the
                  Secured Loan. For the term hereof, Advantage agrees to give CTF
                  and
                  Stratus immediate and simultaneous notice of any default by Stratus
                  hereunder or under the Agreement.

              

      

       

      
        	10.  	
                CTF
                  shall forbear from exercising its rights under the Secured Loan
                  during the
                  Forbearance Period pursuant to the separate forbearance agreement,
                  an
                  

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      executed
        copy of which will be immediately provided to Advantage. Stratus shall provide
        Advantage with copies of the executed forbearance agreement with CTF.
        Advantage’s obligation to forbear hereunder shall cease if CTF ceases to forbear
        under its forbearance agreement and Advantage’s right to cease forbearing
        hereunder shall constitute Advantages sole remedy against CTF. 

       

      

      HILL,
        WARD & HENDERSON, P.A.

      

      s/

      Michael
        P. Brundage

      

      

      

      

      

      

      
        	
                ALS,
                  LLC

                 

                 

                By: s/
                  Jay Wolin   

                 

                Its: CFO    

                 

                 

              	
                Stratus
                  Service Group, Inc.

                 

                 

                By: s/
                  Michael A. Maltzman 

                 

                Its: Exec.
                  VP & CFO  

              
	
                 

                Acknowledged
                  and consented to by 

                 

                Capital
                  TempFunds, Inc.

                 

                 

                By: s/
                  James Rothman  

                 

                Its: President   

              	 

      

       

       

      3

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