Document:

Exhibit 4.3

 

AMENDMENT #1

TO THE SECURITIES PURCHASE AGREEMENT AND
$38,500 PROMISSORY NOTE DATED

January 27, 2017.

 

The
parties agree that the Securities Purchase Agreement and $38,500 Promissory Note by and between Arkados Group, Inc. (“Company”)
and Lucas Hoppel (“Holder”)
is hereby amended as follows: 

 

Maturity Date: The Maturity Date shall be extended to
April 21st, 2017.

 

Inducement
Shares: The Holder will receive an additional 27,398 shares of the Company’s
restricted common shares. 

 

Conversion
Right: Section 3(a) of the Promissory Note shall be permanently changed to allow the Holder the right to convert the Note into
shares of the Company’s common stock regardless if an event
of default has occurred or not. 

 

Conversion Price: The Conversion Price in Section 3(a)(ii)
of the Promissory Note shall permanently be changed to a fixed price equaling $0.60 (sixty) cents.

 

ALL OTHER TERMS AND CONDITIONS OF THE $38,500 PROMISSORY NOTE
REMAIN IN FULL FORCE AND EFFECT.

 

Please indicate acceptance and approval of this amendment dated
March 31st, 2017 by signing below:

 

	/s/ Terrence
    DeFranco	 	/s/ Lucas
    Hoppel
	Terrence DeFranco	 	Lucas Hoppel
	Arkados Group, Inc.	 	 
	Chief Executive OfficerExhibit 4.5

 

Arkados,
INC.

 

FIRST AMENDMENT
TO Convertible PROMISSORY NOTE

 

THIS FIRST AMENDMENT
TO CONVERTIBLE PROMISSORY NOTE (this “Agreement”) is made and entered into as of January 27, 2017 (the “Effective
Date”), by and between Arkados Group, Inc., a Delaware corporation (the “Company”), and Lucas Hoppel
(the “Purchaser”). Initially capitalized terms not otherwise defined herein shall have the meaning set forth
in the Note (defined herein).

 

RECITALS

 

A.       The
Company and the Purchaser are parties to that certain Securities Purchase Agreement dated as of October 28, 2016 (the “Purchase
Agreement”).

 

B.        In connection to the Purchase Agreement, the Purchaser purchased a convertible promissory note from the Company in the aggregate
original principal amount of $38,500 dated as of October 28, 2016 (the “Note”).

 

C.       Pursuant
to Section 1(a) of the Note, the Maturity Date may be extended at the option of the Purchaser in the event that, and for so long
as, an Event of Default shall not have occurred and be continuing on the Maturity Date or any event shall not have occurred and
be continuing on the Maturity Date that with the passage of time and the failure to cure would result in an Event of Default.

 

D.       Pursuant
to Section 2.6 of the Purchase Agreement, no provision of the Notes shall be waived or amended other than an instrument in writing
signed by the Purchaser.

 

C.       The
Company and Purchaser, in connection to his financial interest in the Company as the holder of 20,000 restricted shares of the
Company’s common stock, hereby desires to amend certain terms of the Note as set forth below.

 

AGREEMENT

 

In consideration of
the foregoing recitals and the mutual promises and covenants contained herein, the parties, intending to be legally bound, hereby
agree as follows:

 

1.        Amendment
to the Definition of the Maturity Date. Notwithstanding anything to the contrary in the Note issued thereunder prior to the
date of this Agreement, all references to the date of “January 30th, 2017” throughout the Note, shall be
amended, restated and replaced in its entirety by the following date: “March 31st, 2017.”

 

2.        Waiver
of Event of Default. If applicable, the Purchaser hereby waives any Event of Default (as defined under the Note) for the Company’s
failure to observe or perform any other covenant, obligation, condition or agreement contained in the Purchaser’s Note or
Purchase Agreement if such breach occurred prior to the date of this Agreement.

 

     

     

    

 

3.        Reaffirmation.
Except as expressly provided herein, the undersigned agree that all of the terms, covenants, conditions, restrictions and other
provisions contained in the Note shall remain in full force and effect.

 

4.        Entire
Agreement. This Amendment, together with the Purchase Agreement and the Note, contains the entire agreement of the parties
and supersedes any prior or contemporaneous written or oral agreements between them concerning the subject matter of this Amendment.

 

5.        Counterparts.
This Amendment may be executed in counterparts, each of which shall be an original and all of which, taken together, shall constitute
a single instrument.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

     

     

    

 

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

 

	 	COMPANY
	 	 
	 	Arkados Group, Inc.,
	 	a Delaware corporation
	 	 
	 	By:	/s/ Terrence DeFranco
	 	Name:	Terrence DeFranco
	 	Title:	CEO

 

     

     

    

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be duly executed as of the date and year first above written

 

	 	PURCHASER
	 	 
	 	If an entity:
	 	 
	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:	 
	 	 
	 	Facsimile:	 
	 	Email:	 
	 	 	 
	 	If an individual:
	 	 	 
	 	   /s/ Lucas Hoppel
	 	 	 
	 	Name:   	Lucas Hoppel
	 	 	 
	 	Address:	 
	 	 
	 	Facsimile:	 
	 	Email:Exhibit 4.6

 

AMENDMENT #2

TO THE SECURITIES PURCHASE AGREEMENT AND
$38,500 PROMISSORY NOTE DATED

OCTOBER 28, 2016 AND THE AMENDMENT DATED JANUARY 27TH, 2017.

 

The
parties agree that the Securities Purchase Agreement and $38,500 Promissory Note by and between Arkados Group, Inc. (“Company”)
and Lucas Hoppel (“Holder”)
is hereby amended as follows: 

 

Maturity Date: The Maturity Date shall be extended to
April 21st, 2017.

 

Inducement
Shares: The Holder will receive an additional 27,398 shares of the Company’s
restricted common shares. 

 

Conversion
Right: Section 3(a) of the Promissory Note shall be permanently changed to allow the Holder the right to convert the Note into
shares of the Company’s common stock regardless if an event
of default has occurred or not. 

 

Conversion Price: The Conversion Price in Section 3(a)(ii)
of the Promissory Note shall permanently be changed to a fixed price equaling $0.60 (sixty) cents.

 

ALL OTHER TERMS AND CONDITIONS OF THE $38,500 PROMISSORY NOTE
REMAIN IN FULL FORCE AND EFFECT.

 

Please indicate acceptance and approval of this amendment dated
March 31st, 2017 by signing below:

 

	/s/
    Terrence DeFranco	 	/s/
    Lucas Hoppel
	Terrence DeFranco	 	Lucas Hoppel
	Arkados Group, Inc.	 	 
	Chief Executive OfficerExhibit
4.7

 

 

 

NEITHER
THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE COMPANY UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”)
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED: (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE
SECURITIES LAWS; OR (II) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT
REQUIRED UNDER THE 1933 ACT OR; (III) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT. 

 

10%
CONVERTIBLE PROMISSORY NOTE

 

MATURITY
DATE OF OCTOBER 1, 2017 *THE “MATURITY DATE”

 

$125,000
FEBRUARY 1, 2017 *THE “ISSUANCE DATE”

 

PRINCIPAL
AMOUNT: $125,000 

PURCHASE
PRICE: $116,000 

 

FOR
VALUE RECEIVED, Arkados Group, Inc., a Delaware Corporation (the “Company”) doing business in Newark, NJ,
hereby promises to pay to the order of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns (the
“Holder”), the principal amount of One Hundred and Twenty Five Thousand Dollars ($125,000) (“Note”),
on demand of the Holder at any time on or after October 1, 2017 (the “Maturity Date”), and to pay interest
on the unpaid principal balance hereof at the rate of Ten Percent (10%) per annum (the “Interest Rate”)
commencing on the date hereof (the “Issuance Date”).

 

The
Principal Amount is One Hundred and Twenty Five Thousand Dollars ($125,000) and the consideration paid by the Holder is One Hundred
and Sixteen Thousand Dollars ($116,000) (the “Consideration”); there exists an original issue discount of $9,000 (the
“OID”)).

 

		1.	Payments
                                         of Principal and Interest.

 

		a.	Pre-Payment
and Payment of Principal and Interest. The Company may pay this Note in full, together with any and all accrued and unpaid
interest, plus any applicable pre-payment premium set forth herein and subject to the terms of this Section 1.a, at any time on
or prior to the date which occurs 180 days after the Issuance Date hereof (the “Prepayment Date”). In the event the
Note is not prepaid in full on or before the Prepayment Date, it shall be deemed a “Pre-Payment Default” hereunder.
Until the Thirtieth (30th) day after the Issuance Date, the Company may pay the principal at a cash redemption premium
of 115%, in addition to outstanding interest, without the Holder’s consent; from the 31st day to the Ninetieth
(90th) day after the Issuance Date the Company may pay the principal at a cash redemption premium of 125%, in addition
to outstanding interest, without the Holder’s consent; from the 91st day to the One Hundred and Twentieth (120th)
day after the Issuance Date, the Company may pay the principal at a cash redemption premium of 130%, in addition to outstanding
interest, without the Holder’s consent; from the 121st day to the Prepayment Date, the Company may pay the principal
at a cash redemption premium of 135%, in addition to outstanding interest, without the Holder’s consent. After the Prepayment
Date up to the Maturity Date this Note shall have a cash redemption premium of 140% of the then outstanding principal amount of
the Note, plus accrued interest and Default Interest, if any, which may only be paid by the Company upon Holder’s prior
written consent. At any time on or after the Maturity Date, the Company may repay the then outstanding principal plus accrued
interest and Default Interest (defined below), if any, to the Holder.

 

		b.	Demand
of Repayment. The principal and interest balance of this Note shall be paid to the Holder hereof on demand by the Holder at
any time on or after the Maturity Date. The Default Amount (defined herein), if applicable, shall be paid to Holder hereof on
demand by the Holder at any time such Default Amount becomes due and payable to Holder.

 

		c.	Interest.
This Note shall bear interest (“Interest”) at the rate of Ten Percent (10%) per annum from the Issuance Date
until the same is paid, or otherwise converted in accordance with Section 2 below, in full and the Holder, at the Holder’s
sole discretion, may include any accrued but unpaid Interest in the Conversion Amount. Interest shall commence accruing on the
Issuance Date, shall be computed on the basis of a 365-day year and the actual number of days elapsed and shall accrue daily and,
after the Maturity Date, compound quarterly. Upon an Event of Default, as defined in Section 10 below, the Interest Rate shall
increase to Eighteen Percent (18%) per annum for so long as the Event of Default is continuing (“Default Interest”).

 

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		d.	General
Payment Provisions. This Note shall be paid in lawful money of the United States of America by check or wire transfer to such
account as the Holder may from time to time designate by written notice to the Company in accordance with the provisions of this
Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day (as defined
below), the same shall instead be due on the next succeeding day which is a Business Day and, in the case of any interest payment
date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account
for purposes of determining the amount of interest due on such date. For purposes of this Note, “Business Day”
shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State of Texas are authorized or required
by law or executive order to remain closed.

 

		2.	Conversion
                                         of Note. . In accordance with the terms of subsection 2(b) below, the Conversion
                                         Amount (see Paragraph 2(a)(i)) of this Note shall be convertible into shares of the Company’s
                                         common stock (the “Common Stock”) according to the terms and conditions
                                         set forth in this Paragraph 2.

 

		a.	Certain
Defined Terms. For purposes of this Note, the following terms shall have the following meanings:

 

	i.		“Conversion
                                         Amount” means the sum of (a) the principal amount of this Note to be converted
                                         with respect to which this determination is being made, (b) Interest; and (c) Default
                                         Interest, if any, if so included at the Holder’s sole discretion.

 

	ii.		“Conversion
                                         Price” means: Upon the occurrence of a Pre-payment Default or an Event of Default,
                                         a 40% discount to the lowest trading price during the previous twenty (20) trading days
                                         to the date of a Conversion Notice.

 

	iii.		“Person”
                                         means an individual, a limited liability company, a partnership, a joint venture, a corporation,
                                         a trust, an unincorporated organization and a government or any department or agency
                                         thereof.

 

	iv.		“Shares”
                                         means the Shares of the Common Stock of the Company into which any balance on this Note
                                         may be converted upon submission of a “Conversion Notice” to the Company
                                         substantially in the form attached hereto as Exhibit 1.

 

		b.	Holder’s
                                         Conversion Rights. The Holder shall be entitled to convert all of the outstanding
                                         and unpaid principal and accrued interest of this Note into fully paid and non-assessable
                                         shares of Common Stock in accordance with the stated Conversion Price commencing on the
                                         date that is 180 days from the date hereof, except that upon the occurrence of an Organic
                                         Change, as defined in Section 3 below, or an Event of Default, as defined in Section
                                         10(a) below, the Note will become immediately convertible. The Holder shall not be entitled
                                         to convert on a Conversion Date that amount of the Note in connection with that number
                                         of shares of Common Stock which would be in excess of the sum of the number of shares
                                         of Common Stock issuable upon the conversion of the Note with respect to which the determination
                                         of this provision is being made on a Conversion Date, which would result in beneficial
                                         ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares
                                         of Common Stock of the Company on such Conversion Date. For the purposes of the provision
                                         to the immediately preceding sentence, beneficial ownership shall be determined in accordance
                                         with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
                                         13d-3 thereunder. Subject to the foregoing, the Holder shall not be limited to aggregate
                                         conversions of 4.99% (“Conversion Limitation 1”). The Holder shall have the
                                         authority to determine whether the restriction contained in this Section 2(b)
                                         will limit any conversion hereunder. The Holder may waive the conversion limitation described
                                         in this Section 2(b), in whole or in part, upon and effective after 61 days prior
                                         written notice to the Company to increase or decrease such percentage to any other amount
                                         as determined by Holder in its sole discretion (“Conversion Limitation 2”).

 

		c.	Fractional
Shares. The Company shall not issue any fraction of a share of Common Stock upon any conversion; if such issuance would result
in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up
to the nearest whole share except in the event that rounding up would violate the conversion limitation set forth in section 2(b)
above.

 

		d.	Conversion
Amount. The Conversion Amount shall be converted pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii) as promulgated by the
Securities and Exchange Commission under the Securities Act of 1933, as amended, into unrestricted shares at the Conversion Price.

 

		e.	Mechanics
of Conversion. The conversion of this Note shall be conducted in the following manner:

 

	i.		Holder’s
                                         Conversion Requirements. To convert this Note into shares of Common Stock on any
                                         date set forth in the Conversion Notice by the Holder (the “Conversion Date”),
                                         the Holder shall transmit by email, facsimile or otherwise deliver, for receipt on or
                                         prior to 11:59 p.m., Eastern Time, on such date or on the next business day, a copy of
                                         a fully executed notice of conversion in the form attached hereto as Exhibit 1 to the
                                         Company.

 

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	ii.		Company’s
                                         Response. Upon receipt by the Company of a copy of a Conversion Notice, the Company
                                         shall as soon as practicable, but in no event later than one (1) Business
                                         Day after receipt of such Conversion Notice, send, via email, facsimile or overnight
                                         courier, a confirmation of receipt of such Conversion Notice to such Holder indicating
                                         that the Company will process such Conversion Notice in accordance with the terms herein.
                                         Within two (2) Business Days after the date the Conversion Notice is delivered, the Company
                                         shall have issued and electronically transferred the shares to the Broker indicated in
                                         the Conversion Notice; should the Company be unable to transfer the shares electronically,
                                         it shall, within two (2) Business Days after the date the Conversion Notice was delivered,
                                         have surrendered to an overnight courier for delivery the next day to the address as
                                         specified in the Conversion Notice, a certificate, registered in the name of the Holder,
                                         for the number of shares of Common Stock to which the Holder shall be entitled.

 

	iii.		Record
                                         Holder. The person or persons entitled to receive the shares of Common Stock issuable
                                         upon a conversion of this Note shall be treated for all purposes as the record holder
                                         or holders of such shares of Common Stock on the Conversion Date.

 

	iv.		Timely
                                         Response by Company. Upon receipt by Company of a Conversion Notice, Company shall
                                         respond within one business day to Holder confirming the details of the Conversion, and
                                         provide within two business days the Shares requested in the Conversion Notice.

 

	v.		Liquidated
                                         Damages for Delinquent Response. If the Company fails to deliver for whatever reason
                                         (including any neglect or failure by, e.g., the Company, its counsel or
                                         the transfer agent) to Holder the Shares as requested in a Conversion Notice within three
                                         (3) business days of the Conversion Date, the Company shall be deemed in “Default
                                         of Conversion.” Beginning on the fourth (4th) business day after
                                         the date of the Conversion Notice, after the Company is deemed in Default of Conversion,
                                         there shall accrue liquidated damages (the “Conversion Damages”)
                                         of Additional Shares due to Holder equal to Twenty-Five percent (25%) of the number stated
                                         in the Conversion Notice and for every five (5) Trading Days while a Default of Conversion
                                         is in effect and continuing the Company shall continue to incur a Conversion Penalty
                                         in the amount of Twenty-Five percent (25%) of the number of shares stated in the Conversion
                                         Notice issuable to Holder (the “Additional Shares”), which may be
                                         applied to the Conversion at the Holder’s election. The Additional Shares shall
                                         be issued and the amount of the Note retired will not be reduced beyond that stated in
                                         the Conversion Notice. If the Additional Shares owed the Holder cause the Shares requested
                                         by the Conversion Notice to exceed Conversion Limitation 1 or Conversion Limitation 2,
                                         as applicable, the Holder may opt instead to have the Conversion Amount reduced by the
                                         value, as calculated using the Conversion Price, of the Additional Shares owing to Holder
                                         pursuant to this Section 2(e)(v). At any time after a Default of Conversion the Holder
                                         may, at their sole discretion, rescind the Conversion The Parties agree that, at the
                                         time of drafting of this Note, the Holder’s damages as to the delinquent response
                                         are incapable or difficult to estimate and that the liquidated damages called for is
                                         a reasonable forecast of just compensation.

 

	vi.		Liquidated
                                         Damages for Inability to Issue Shares. If the Company fails to deliver Shares requested
                                         by a Conversion Notice due to an exhaustion of authorized and issuable common stock such
                                         that the Company must increase the number of shares of authorized Common Stock before
                                         the Shares requested may be issued to the Holder, the discount set forth in the Conversion
                                         Price will be increased by 5 percentage points (i.e. from 40% to 45%) for the Conversion
                                         Notice in question and all future Conversion Notices until the outstanding principal
                                         and interest of the Note is converted or paid in full. These liquidated damages shall
                                         not render the penalties prescribed by Paragraph 2(e)(v) void, and shall be applied in
                                         conjunction with Paragraph 2(e)(v) unless otherwise agreed to in writing by the Holder.
                                         The Parties agree that, at the time of drafting of this Note, the Holder’s damages
                                         as to the inability to issue shares are incapable or difficult to estimate and that the
                                         liquidated damages called for is a reasonable forecast of just compensation.

 

	vii.		Rescindment
                                         of Conversion Notice. If: (i) the Company fails to respond to Holder within one business
                                         day from the date of delivery of a Conversion Notice confirming the details of the Conversion,
                                         (ii) the Company fails to provide the Shares requested in the Conversion Notice within
                                         three business days from the date of the delivery of the Conversion Notice, (iii) the
                                         Holder is unable to procure a legal opinion required to have the Shares issued unrestricted
                                         and/or deposited to sell for any reason related to the Company's standing with the SEC
                                         or FINRA, or any action or inaction by the Company, (iv) the Holder is unable to deposit
                                         the Shares requested in the Conversion Notice for any reason related to the Company's
                                         standing with the SEC or FINRA, or any action or inaction by the Company, (v) if the
                                         Holder is informed that the Company does not have the authorized and issuable Shares
                                         available to satisfy the Conversion, or (vi) if OTC Markets changes the Company's designation
                                         to 'Limited Information' (Yield), 'No Information' (Stop Sign), 'Caveat Emptor' (Skull
                                         and Crossbones), or 'OTC', 'Other OTC' or 'Grey Market' (Exclamation Mark Sign) on the
                                         day of or any day after the date of the Conversion Notice, the Holder maintains the option
                                         and sole discretion to rescind the Conversion Notice ("Rescindment")
                                         by delivering a notice of rescindment to the Company in the same manner that a Conversion
                                         Notice is required to be delivered to the Company pursuant to the terms of this Note.

 

	viii.		Transfer
                                         Agent Fees and Legal Fees. The issuance of the certificates shall be without charge
                                         or expense to the Holder. The Company shall pay any and all Transfer Agent fees, legal
                                         fees, and advisory fees required for execution of this Note and processing of any Notice
                                         of Conversion, including but not limited to the cost of obtaining a legal opinion with
                                         regard to the Conversion. The Holder will deduct $3,000 from the principal payment of
                                         the Note solely to cover the cost of obtaining any and all legal opinions required to
                                         obtain the Shares requested in any given Conversion Notice. These fees do not make provision
                                         for or suffice to defray any legal fees incurred in collection or enforcement of the
                                         Note as described in Paragraph 13.

 

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	ix.		Conversion
                                         Right Unconditional. If the Holder shall provide a Notice of Conversion as provided
                                         herein, the Company’s obligations to deliver Common Stock shall be absolute and
                                         unconditional, irrespective of any claim of setoff, counterclaim, recoupment, or alleged
                                         breach by the Holder of any obligation to the Company.

 

		3.	Other
                                         Rights of Holder: Reorganization, Reclassification, Consolidation, Merger or Sale.
                                         Any recapitalization, reorganization, reclassification, consolidation, merger, sale of
                                         all or substantially all of the Company’s assets to another Person or other transaction
                                         which is effected in such a way that holders of Common Stock are entitled to receive
                                         (either directly or upon subsequent liquidation) stock, securities, cash or other assets
                                         with respect to or in exchange for Common Stock is referred to herein as “Organic
                                         Change.” Prior to the consummation of any (i) Organic Change or (ii) other
                                         Organic Change following which the Company is not a surviving entity, the Company will
                                         secure from the Person purchasing such assets or the successor resulting from such Organic
                                         Change (in each case, the “Acquiring Entity”) a written agreement
                                         (in form and substance reasonably satisfactory to the Holder) to deliver to Holder in
                                         exchange for this Note, a security of the Acquiring Entity evidenced by a written instrument
                                         substantially similar in form and substance to this Note, and reasonably satisfactory
                                         to the Holder. Prior to the consummation of any other Organic Change, the Company shall
                                         make appropriate provision (in form and substance reasonably satisfactory to the Holder)
                                         to ensure that the Holder will thereafter have the right to acquire and receive in lieu
                                         of or in addition to (as the case may be) the shares of Common Stock immediately theretofore
                                         acquirable and receivable upon the conversion of the Note, such shares of stock, securities,
                                         cash or other assets that would have been issued or payable in such Organic Change with
                                         respect to or in exchange for the number of shares of Common Stock which would have been
                                         acquirable and receivable upon the conversion of the Note as of the date of such Organic
                                         Change (without taking into account any limitations or restrictions on the convertibility
                                         of the Note set forth in Section 2(b) or otherwise). All provisions of this Note must
                                         be included to the satisfaction of Holder in any new Note created pursuant to this section.

 

		4.	Representations
                                         and Warranties of the Company. In connection with the transactions provided for herein,
                                         the Company hereby represents and warrants to the Holder the following:

 

		a.	Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
the laws of the state of its incorporation and has all requisite corporate power and authority to carry on its business as now
conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure
to so qualify would have a material adverse effect on its business or properties.

 

		b.	Authorization.
All corporate action has been taken on the part of the Company, its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Agreement. The Company has taken all corporate action required to make all of the obligations of
the Company reflected in the provisions of this Agreement, valid and enforceable obligations. The shares of capital stock issuable
upon conversion of the Note have been authorized or will be authorized prior to the issuance of such shares.

 

		c.	Fiduciary
Obligations. The Company hereby represents that it intends to use the proceeds of the Note primarily for the operations of
its business and not for any personal, family, or household purpose. The Company hereby represents that its board of directors,
in the exercise of its fiduciary duty, has approved the execution of this Agreement based upon a reasonable belief that the proceeds
of the Note provided for herein is appropriate for the Company after reasonable inquiry concerning its financial objectives and
financial situation.

 

		d.	Data
Request Form. The Company hereby represents and warrants to Holder that all of the information furnished to Holder pursuant
to the data request form (“DRF”) dated January 24, 2017 is true and correct in all material respects as of
the date hereof.

 

		5.	Covenants
                                         of the Company.

 

		a.	So long as the Company shall have
                                                                                                                                                  any obligations under this Note, the Company shall not without the Holder’s prior written consent pay, declare or set
                                                                                                                                                  apart for such payment any dividend or other distribution (whether in cash, property, or other securities) on shares of
                                                                                                                                                  capital stock solely in the form of additional shares of Common Stock

 

		b.	So
long as the Company shall have any obligations under this Note, the Company shall not without the Holder’s prior written
consent redeem, repurchase, or otherwise acquire (whether for cash or in exchange for property or other securities) in any one
transaction or series of transactions any shares of capital stock of the Company or any warrants, rights, or options to acquire
any such shares.

 

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		c.	So
long as the Company shall have any obligations under this Note, the Company shall not without the Holder’s prior written
consent incur any liability for borrowed money, except (a) borrowings in existence as of this date and of which the Company has
informed the Holder in writing before the date hereof or (b) indebtedness to trade creditors or financial institutions incurred
in the ordinary course of business.

 

		d.	So
long as the Company shall have any obligations under this Note, the Company shall not without the Holder’s prior written
consent sell, lease, or otherwise dispose of a significant portion of its assets outside the ordinary course of business. Any
consent to the disposition of any assets may be conditioned upon a specified use of the proceeds thereof.

 

		6.	Issuance
                                         of Common Stock Equivalents. If the Company, at any time after the Issuance Date,
                                         shall issue any securities convertible into or exchangeable for, directly or indirectly,
                                         Common Stock (“Convertible Securities”), other than the Note, or any
                                         rights or warrants or options to purchase any such Common Stock or Convertible Securities,
                                         shall be issued or sold (collectively, the “Common Stock Equivalents”)
                                         and the aggregate of the price per share for which additional Shares of Common Stock
                                         may be issuable thereafter pursuant to such Common Stock Equivalent, plus the consideration
                                         received by the Company for issuance of such Common Stock Equivalent divided by the number
                                         of shares of Common Stock issuable pursuant to such Common Stock Equivalent (the “Aggregate
                                         Per Common Share Price”) shall be less than the applicable Conversion
                                         Price then in effect, or if, after any such issuance of Common Stock Equivalents, the
                                         price per share for which additional Shares of Common Stock may be issuable thereafter
                                         is amended or adjusted, and such price as so amended shall make the Aggregate Per Share
                                         Common Price be less than the applicable Conversion Price in effect at the time of such
                                         amendment or adjustment, then the applicable Conversion Price upon each such issuance
                                         or amendment shall be reduced to the lower of: (i) the Conversion Price; or (ii) a twenty-five
                                         percent (25%) discount to the lowest Aggregate Per Common Share Price (whether or not
                                         such Common Stock Equivalents are actually then exercisable, convertible or exchangeable
                                         in whole or in part) as of the earlier of (A) the date on which the Company shall enter
                                         into a firm contract for the issuance of such Common Stock Equivalent, or (B) the date
                                         of actual issuance of such Common Stock Equivalent. No adjustment of the applicable Conversion
                                         Price shall be made under this Section 6 upon the issuance of any Convertible Security
                                         which is outstanding on the day immediately preceding the Issuance Date.

 

		7.	Reservation
                                         of Shares. The Company shall at all times, so long as any principal amount of the
                                         Note is outstanding, reserve and keep available out of its authorized and unissued shares
                                         of Common Stock, solely for the purpose of effecting the conversion of the Note, eight
                                         times the number of shares of Common Stock as shall at all times be sufficient to effect
                                         the conversion of all of the principal amount, plus Interest and Default Interest, if
                                         any, of the Note then outstanding (“Share Reserve”), unless the Holder
                                         stipulates otherwise in the “Irrevocable Letter of Instructions to the Transfer
                                         Agent.” So long as this Note is outstanding, upon written request of the Holder
                                         or via telephonic communication, the Company’s Transfer Agent shall furnish to
                                         the Holder the then-current number of common shares issued and outstanding, the then-current
                                         number of common shares authorized, the then-current number of unrestricted shares, and
                                         the then-current number of shares reserved for third parties.

 

		8.	Voting
                                         Rights. The Holder of this Note shall have no voting rights as a note holder, except
                                         as required by law, however, upon the conversion of any portion of this Note into Common
                                         Stock, Holder shall have the same voting rights as all other Common Stock holders with
                                         respect to such shares of Common Stock then owned by Holder.

 

		9.	Reissuance
                                         of Note. In the event of a conversion or redemption pursuant to this Note
                                         of less than all of the Conversion Amount represented by this Note, the Company shall
                                         promptly cause to be issued and delivered to the Holder, upon tender by the Holder of
                                         the Note converted or redeemed, a new note of like tenor representing the remaining principal
                                         amount of this Note which has not been so converted or redeemed and which is in substantially
                                         the same form as this Note, as set forth above.

 

		10.	Default
and Remedies.

 

		a.	Event
                                         of Default. For purposes of this Note, an “Event of Default” shall
                                         occur upon:

 

	i.		the
                                         Company’s default in the payment of the outstanding principal, Interest or Default
                                         Interest of this Note when due, whether at Maturity, acceleration or otherwise;

	ii.		the
                                         occurrence of a Default of Conversion as set forth in Section 2(e)(v);

	iii.		the
                                         failure by the Company for ten (10) days after notice to it to comply with any material
                                         provision of this Note not included in this Section 10(a);

	iv.		the
                                         Company’s breach of any covenants, warranties, or representations made by the Company
                                         herein;

	v.		any
                                         of the information in the DRF is false or misleading in any material respect; 

	vi.		the
                                         default by the Company in any Other Agreement entered into by and between the Company
                                         and Holder, for purposes hereof “Other Agreement” shall mean, collectively,
                                         all agreements and instruments between, among or by: (1) the Company, and, or for the
                                         benefit of, (2) the Holder and any affiliate of the Holder, including without limitation,
                                         promissory notes;

	vii.		the
                                         cessation of operations of the Company or a material subsidiary;

	viii.		the
                                         Company pursuant to or within the meaning of any Bankruptcy Law; (a) commences a voluntary
                                         case; (b) consents to the entry of an order for relief against it in an involuntary case;
                                         (c) consents to the appointment of a Custodian of it or for all or substantially all
                                         of its property; (d) makes a general assignment for the benefit of its creditors; or
                                         (e) admits in writing that it is generally unable to pay its debts as the same become
                                         due;

	ix.		court
                                         of competent jurisdiction entering an order or decree under any Bankruptcy Law that:
                                         (a) is for relief against the Company in an involuntary case; (b) appoints a Custodian
                                         of the Company or for all or substantially all of its property; or (c) orders the liquidation
                                         of the Company or any subsidiary, and the order or decree remains unstayed and in effect
                                         for thirty (30) days;

 

    	 	5	 

     

    

  

 

 

	x.		the
                                         Company files a Form 15 with the SEC;

	xi.		the
                                         Company’s failure to timely file all reports required to be filed by it with the
                                         Securities and Exchange Commission;

	xii.		the
                                         Company’s failure to timely file all reports required to be filed by it with OTC
                                         Markets to remain a “Current Information” designated company;

	xiii.		the
                                         Company sells securities after the Issuance Date that do not have a fixed conversion
                                         price;

	xiv.		the
                                         Company’s Common Stock is reported as “No Inside” by OTC Markets at
                                         any time while any principal, Interest or Default Interest under the Note remains outstanding;

	xv.		the
                                         Company’s failure to maintain the required Share Reserve pursuant to the terms
                                         of the Irrevocable Letter of Instructions to the Transfer Agent;

	xvi.		the
                                         Company directs its transfer agent not to transfer, or delays, impairs, or hinders its
                                         transfer agent in transferring or issuing (electronically or in certificated form) any
                                         certificate for Shares of Common Stock to be issued to the Holder upon conversion of
                                         or otherwise pursuant to this Note as and when required by this Note, or fails to remove
                                         (or directs its transfer agent not to remove or impairs, delays and/or hinders its transfer
                                         agent from removing) any restrictive legend (or to withdraw and stop transfer instructions)
                                         on any certificate for any Shares of Common Stock issued to the Holder upon conversion
                                         of or otherwise pursuant to this Note as and when required by this Note (or makes any
                                         written announcement, statement or threat that it does not intend to honor its obligations
                                         pursuant to a Conversion Notice submitted by the Holder) and any such failure shall continue
                                         uncured for three (3) Business Days after the Conversion Notice has been delivered to
                                         the Company by Holder;

	xvii.		the
                                         Company’s failure to remain current in its billing obligations with its transfer
                                         agent and such delinquency causes the transfer agent to refuse to issue Shares to Holder
                                         pursuant to a Conversion Notice;

	xviii.		the
                                         Company effectuates a reverse split of its Common Stock and fails to provide twenty (20)
                                         days prior written notice to Holder of its intention to do so; or

	xix.		OTC
                                         Markets changes the Company's designation to 'No Information' (Stop Sign), 'Caveat Emptor'
                                         (Skull and Crossbones), or 'OTC', 'Other OTC' or 'Grey Market' (Exclamation Mark Sign).

	xx.		"Change
                                         of Control Transaction" means the occurrence after the date hereof of any of (a)
                                         an acquisition after the date hereof by an individual or legal entity or "group"
                                         (as described in Rule 13d-5(b)(1) promulgated under the Securities Exchange Act of 1934)
                                         of effective control (whether through legal or beneficial ownership of capital stock
                                         of the Company, by contract or otherwise) of in excess of 40% of the voting securities
                                         of the Company, (b) the Company merges into or consolidates with any other Person, as
                                         that term is defined in the Securities Act of 1933, as amended, or any Person merges
                                         into or consolidates with the Company and, after giving effect to such transaction, the
                                         stockholders of the Company immediately prior to such transaction own less than 60% of
                                         the aggregate voting power of the Company or the successor entity of such transaction,
                                         (c) the Company sells or transfers all or substantially all of its assets to another
                                         Person and the stockholders of the Company immediately prior to such transaction own
                                         less than 60% of the aggregate voting power of the acquiring entity immediately after
                                         the transaction, (d) a replacement at one time or within a three year period of more
                                         than one-half of the members of the Board of Directors which is not approved by a majority
                                         of those individuals who are members of the Board of Directors on the Issuance Date (or
                                         by those individuals who are serving as members of the Board of Directors on any date
                                         whose nomination to the Board of Directors was approved by a majority of the members
                                         of the Board of Directors who are members on the date hereof), or (e) the execution by
                                         the Company of an agreement to which the Company is a party or by which it is bound.

	xxi.		Altering
                                         the conversion terms of any notes that are currently outstanding.

 

The
Term “Bankruptcy Law” means Title 11, U.S. Code, or any similar Federal or State Law for the relief of debtors.
The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy
Law.

 

		b.	Remedies.
If an Event of Default occurs, the Holder may in its sole discretion determine to request immediate repayment of all or any portion
of the Note that remains outstanding; at such time the Company will be required to pay the Holder the Default Amount (defined
herein) in cash. For purposes hereof, the “Default Amount” shall mean: the product of (A) the then outstanding
principal amount of the Note, plus accrued Interest and Default Interest, divided by (B) the Conversion Price as determined on
the Issuance Date, multiplied by (C) the highest price at which the Common Stock traded at any time between the Issuance Date
and the date of the Event of Default. If the Company fails to pay the Default Amount within five (5) Business Days of written
notice that such amount is due and payable, then Holder shall have the right at any time, so long as the Company remains in default
(and so long and to the extent there are a sufficient number of authorized but unissued shares), to require the Company, upon
written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Company equal
to the Default Amount divided by the Conversion Price then in effect.

 

		11.	Vote
to Change the Terms of this Note. This Note and any provision hereof may only be amended by an instrument in writing signed
by the Company and the Holder.

 

    	 	6	 

     

    

  

 

 

		12.	Lost
or Stolen Note. Upon receipt by the Company of evidence satisfactory to the Company of the loss, theft, destruction or mutilation
of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking by the Holder to the Company in
a form reasonably acceptable to the Company and, in the case of mutilation, upon surrender and cancellation of the Note, the Company
shall execute and deliver a new Note of like tenor and date and in substantially the same form as this Note; provided, however,
the Company shall not be obligated to re-issue a Note if the Holder contemporaneously requests the Company to convert such remaining
principal amount, plus accrued Interest and Default Interest, if any, into Common Stock.

 

		13.	Payment
of Collection, Enforcement and Other Costs. If: (i) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding; or (ii) an attorney is retained to represent the Holder of this Note
in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’ rights and involving a claim under
this Note, then the Company shall pay to the Holder all reasonable attorneys’ fees, costs and expenses incurred in connection
therewith, in addition to all other amounts due hereunder.

 

		14.	Cancellation.
After all principal, accrued Interest and Default Interest, if any, at any time owed on this Note has been paid in full or otherwise
converted in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and
shall not be reissued.

 

		15.	Waiver
of Notice. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices
in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

		16.	Governing
Law. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the laws of the State of Texas, without giving effect to provisions
thereof regarding conflict of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal
courts sitting in Texas for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by sending, through certified mail
or overnight courier, a copy thereof to such party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT
IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

		17.	Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note, at law or in equity (including a decree of specific performance
and/or other injunctive relief), and no remedy contained herein shall be deemed a waiver of compliance with the provisions giving
rise to such remedy and nothing herein shall limit the Holder’s right to pursue actual damages for any failure by the Company
to comply with the terms of this Note. The Company covenants to the Holder that there shall be no characterization concerning
this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion
and the like (and the computation thereof) shall be the amounts to be received by the Holder thereof and shall not, except as
expressly provided herein, be subject to any other obligation of the Company (or the performance thereof).

 

		18.	Specific
Shall Not Limit General; Construction. No specific provision contained in this Note shall limit or modify any more general
provision contained herein. This Note shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed
against any person as the drafter hereof.

 

		19.	Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude further
exercise thereof or of any other right, power or privilege.

 

		20.	Partial
Payment. In the event of partial payment by the Holder, the principal sum due to the Holder shall be prorated based on the
consideration actually paid by the Holder such that the Company is only required to repay the amount funded and the Company is
not required to repay any unfunded portion of this Note, with the exception of any OID contemplated herein.

 

		21.	Entire
Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the
subjects herein. None of the terms of this Agreement can be waived or modified, except by an express agreement signed by all Parties
hereto.

 

		22.	Additional
Representations and Warranties. The Company expressly acknowledges that the Holder, including but not limited to its officer,
directors, employees, agents, and affiliates, have not made any representation or warranty to it outside the terms of this Agreement.
The Company further acknowledges that there have been no representations or warranties about future financing or subsequent transactions
between the parties.

 

    	 	7	 

     

    

  

 

 

		23.	Notices.
All notices and other communications given or made to the Company pursuant hereto shall be in writing (including facsimile or
similar electronic transmissions) and shall be deemed effectively given: (i) upon personal delivery, (ii) when sent by electronic
mail or facsimile, as deemed received by the close of business on the date sent, (iii) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid or (iv) one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery. All communications shall be sent either by email, or fax, or to the email address
or facsimile number set forth on the signature page hereto. The physical address, email address, and phone number provided on
the signature page hereto shall be considered valid pursuant to the above stipulations; should the Company’s contact information
change from that listed on the signature page, it is incumbent on the Company to inform the Holder.

 

		24.	Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the rest of the Agreement shall be enforceable in accordance with its terms.

 

		25.	Usury.
If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under
applicable law. The Company covenants (to the extent that it may lawfully do so) that it will not seek to claim or take advantage
of any law that would prohibit or forgive the Company from paying all or a portion of the principal, Interest or Default Interest
on this Note.

 

		26.	Successors
and Assigns. This Agreement shall be binding upon all successors and assigns hereto.

 

 — SIGNATURE PAGE TO FOLLOW —

 

    	 	8	 

     

    

 

 

  

IN
WITNESS WHEREOF, the Company has caused this Note to be signed by its CEO, on and as of the Issuance Date.

 

COMPANY

 

	Signature:	/s/ Terrence
    Defranco	 
	 	 	 
	By:	Terrence
    Defranco	 
	 	 	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	Address:	211
    Warren street, Suite 320	 
	 	 	 
	 	Newark,
    NJ 07103	 
	 	 	 
	 	 	 
	 	 	 
	Email:	 	 
	 	 	 
	Phone:	 	 
	 	 	 
	Facsimile:	 	 
	 	 	 
	JSJ
    Investments Inc.	 
	 	 	 
	Signature:	 	 
	 	 	 
	/s/
    Sameer Hirji	 
	 	 
	Sameer
    Hirji, President	 
	JSJ
    Investments Inc.	 
	10830
    North Central Expressway, Suite 152	 
	Dallas
TX 75231	 
	888-503-2599	 

 

    	 	9	 

     

    

  

 

 

Exhibit
1 

 

Conversion
Notice 

 

Reference
is made to the 10% Convertible Note issued by Arkados Group, Inc. (the "Note"), dated February 1, 2017 in the principal
amount of $125,000 with 10% interest. This note currently holds a principal balance of $125,000. Upon the occurrence of a Pre-payment
Default or an Event of Default, the features of conversion stipulate a Conversion Price equal to a 40% discount to the lowest
trading price during the previous twenty (20) trading days to the date of a Conversion Notice, pursuant to the provisions of Section
2(a)(ii) in the Note.

 

In
accordance with and pursuant to the Note, the undersigned hereby elects to convert $______ of the principal/interest balance
of the Note, indicated below into shares of Common Stock (the "Common Stock"), of the Company, by tendering the Note
specified as of the date specified below.

 

Date
of Conversion: __________ 

 

Please
confirm the following information: 

Conversion
Amount: $ ____________________ 

Conversion
Price: $ ____________________ ( ____ % discount from $ ____________________) 

 

	Number of Common Stock to be issued:	 
	Current Issued/Outstanding:	 

 

If
the Issuer is DWAC eligible, please issue the Common Stock into which the Note is being converted in the name of the Holder of
the Note and transfer the shares electronically to: 

 

[BROKER
INFORMATION] 

 

Holder
Authorization:

 

JSJ
Investments Inc.

10830
North Central Expressway, Suite 152   *Do not send certificates to this address

Dallas,
TX 75231

888-503-2599

 

Tax
ID: 20-2122354

 

Sameer
Hirji, President 

 

[DATE]

 

[CONTINUED
ON NEXT PAGE]

 

    	 	10	 

     

    

 

 

 

PLEASE
BE ADVISED, pursuant to Section 2(e)(ii) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice,
the Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such
Conversion Notice, SEND, VIA EMAIL, FACSIMILE OR OVERNIGHT COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO
SUCH HOLDER INDICATING THAT THE COMPANY WILL PROCESS SUCH CONVERSION NOTICE in accordance with the terms herein. Within two
(2) Business Days after the date of the Conversion Confirmation, the Company shall have issued and electronically transferred
the shares to the Broker indicated in the Conversion Notice; should the Company be unable to transfer the shares electronically,
they shall, within two (2) Business Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery
the next day to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the
number of shares of Common Stock to which the Holder shall be entitled.”

 

	Signature:	 
	 	 
	 	 
	Terrence DeFranco	 
	CEO	 
	Arkados Group, Inc.	 

 

    	 	11

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