Document:

Exhibit 10.43

    EXHIBIT
      10.43

    

    
      WRITER'S
        DIRECT DIAL:

      (813)
        227-8473

      WRITER'S
        E-MAIL:

      mbrundage@hwhlaw.com

    

    

    

    

    September
      15, 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 September
      23, 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 16, 2005 the sum of
              $1,655,000 presently owed by Stratus to Advantage pursuant to the terms
              of
              the Agreement (which excludes the $600,000 subordinated receivable,
              which
              will remain due and owing)

          

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    	2.  	
            Conditioned
              upon timely receipt of the payment required in paragraph 1 above,
              Advantage will release and fund the current payroll associated with
              the
              Agreement. 

          

     

    	3.  	
            Provided
              that Stratus complies with all the terms of this forbearance agreement,
              Advantage will continue to perform under the Agreement through September
              22, 2005.

          

     

    	4.  	
            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 September 22, 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”).

          

     

    	5.  	
            Stratus
              shall repay the Immediately Due Amount by directing CTF, on a daily
              basis
              starting Friday September 16, 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.

          

     

    	6.  	
            Stratus
              shall be in default hereunder unless the Immediately Due Amount is
              paid in
              full by September 21, 2005. The Deferred Amount shall be due in full
              without further notice or demand at 12:00 p.m. Eastern on September
              22,
              2005. 

          

     

    	7.  	
            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.

          

     

    	8.  	
            CTF
              shall forbear from exercising its rights under the Secured Loan during
              the
              Forbearance Period pursuant to the separate forbearance agreement,
              an
              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

    

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    

    
      	
              ALS,
                LLC

               

               

              By: s/
                Jay Wolin    

               

              Its: Executive
                Vice President  

               

               

            	
              Stratus
                Service Group, Inc.

               

               

              By: s/
                Michael A. Maltzman  

               

              Its: Exec.
                VP & CFO   

            
	
               

              Acknowledged
                and consented to by 

               

              Capital
                TempFunds, Inc.

               

               

              By: 
                s/ Gerard
                A. Gabriele   

               

              Its: Senior
                Vice President   

            	 

    

     

    3Exhibit 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   

     

     

    2

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