Document:

EXECUTION COPY

 

LICENSE AGREEMENT

 

This License Agreement (the “Agreement”), dated June 14, 2013 (the “Effective Date”), is
by and between:

 

Exegin Technologies Limited
(“Exegin”) of 401 - 2071 Kingsway Avenue, Port Coquitlam, British Columbia, Canada, V3C 6N2

 

AND

 

Arkados, Inc. (“Arkados”)
of 211 Warren Street, Suite 320, Newark, New Jersey 07103, USA.

 

BACKGROUND

 

Arkados wishes to license Exegin’s ZigBee PRO
stack technology with ECMQV libraries and Exegin wishes to license same to Arkados pursuant to the terms of this Agreement.

 

AGREEMENT

 

In consideration of the foregoing and the
mutual promises, covenants and agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency
of which each party acknowledges, the parties, intending to be legally bound, agree as follows:

 

Part 1-
DEFINITIONS

 

		1.1	Definitions. In this Agreement, the following terms have the following meanings:

 

		(a)	“Arkados Derivatives” means derivative works Arkados creates based in whole
or in part on any Licensed Technology.

 

		(b)	“Arkados Products” means any product offered, sold, distributed, licensed or
otherwise exploited by or for Arkados or any of their licensees, distributors or other representatives which incorporates any of
the Licensed Technology.

 

		(c)	“Certicom” means Certicom Corp. of 5520 Explorer Drive, 4th Floor

Mississauga, ON, Canada, L4W 5L1.

 

		(d)	“Confidential Information” of a party means all information, data and financial
information relating to the business, commercial strategies, pricing, personnel, customers, products or services of the party,
but excludes any information that the other party (the “Recipient”) proves:

 

		(i)	was lawfully in the Recipient’s possession before receiving it from the other party as can
be proven by documentary evidence,

 

    	 

    	 

    

 

 

		(ii)	is provided in good faith to the Recipient by a third party without breaching any rights of the
other party, or

 

		(iii)	is or becomes generally available to, or accessible by, the public through no fault of the Recipient
nor through any malfeasance by any other person.

 

Without limiting
the foregoing, the terms and existence of this Agreement (including all prices) are to be maintained as Confidential Information
by each of the parties and shall not be disclosed except as required by regulations to which a party may be subject or otherwise
by the express written consent of the other party. In addition, the source code to the Licensed Technology is Confidential Information
of Exegin.

 

		(e)	“ECMQV” means the Elliptic Curve Menezes-Qu-Vanstone (ECMQV) key agreement algorithm
allows two parties to agree upon a common secret value with user authentication.

 

		(f)	“End-User” means any person or entity acquiring any Licensed Technology from
or through Arkados, for the End-User's internal use and not for resale.

 

		(g)	“EULA” means an end user license agreement, either in a form provided
by Exegin from time-to-time or in a form provided by Arkados and approved in writing by Exegin.

 

		(h)	“Feedback” is defined in section 6.5.

 

		(i)	“Licensed Technology” means Exegin’s ZigBee PRO stack with support for
the CBKE authentication using ECMQV as more fully described on Exhibit “A” hereto, any third party software included
therewith (as set forth on Exhibit “B”) and all improvements thereto made by or for Exegin under this Agreement.

 

		(j)	“Maintenance Services” means providing bug, error, security or other fixes,
Updates, Upgrades and New Versions for the Licensed Technology as described more fully under PART 8 of this Agreement (Maintenance
and Other Services).

 

		(k)	“New Version” means a new version of the Licensed Technology that Exegin makes
available to other customers who have subscribed to and paid for ongoing maintenance, other than custom modifications for such
customers.

 

		(l)	“NTS” means National Technical Systems, Inc. of 200 - 24007 Ventura Blvd Calabasas,
CA, USA, 91302.

 

		(m)	“Sale” means a sale, license or transfer, regardless of whether any revenue
was received by Arkados in connection with that sale, license or transfer, excluding a reasonable number of units that are provided
free of charge to prospective purchasers only, and for demonstration purposes.

 

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		(n)	“Update” means an enhancement, improvement or update to the Licensed Technology
that Exegin makes generally available to other customers who have subscribed to and paid for ongoing maintenance.

 

		(o)	“Upgrade” means a modification that allows the Licensed Technology to function
on a new hardware platform, that Exegin makes generally available to other customers who have subscribed to and paid for ongoing
maintenance. .

 

Part 2-
OTHER LICENSES AND CERTIFICATIONS

 

		2.1	Certicom. Exegin has all rights necessary from Certicom to provide
the license to Arkados as set forth in this Agreement. Arkados is solely responsible for obtaining all security certifications
it may need from Certicom to fully exploit the license.

 

		2.2	NTS. In the event Arkados desires to obtain NTS, ZigBee PRO and
SEP version 1.x (the subversion chosen at Arkados’ sole discretion) certification for the Arkados Products, Exegin will cooperate
and provide necessary assistance to Arkados to successfully achieve such certifications in the most expedient manner. All fees
and costs payable to the respective certifying organizations or entities shall be the sole responsibility of Arkados.

 

Part 3-
LICENSES

 

		3.1	Delivery. Exegin has delivered, and Arkados has received the
Licensed Technology, including the source code for the Licensed Technology.

 

		3.2	License to Arkados. Subject to the terms and conditions of this
Agreement and Certicom’s rights in the Licensed Technology, Exegin hereby grants to Arkados and Arkados accepts, during the
Term:

 

		(a)	a worldwide, perpetual, non-exclusive, irrevocable (subject to section 8.7), quantity limited,
royalty-free license (the “License”) to make, use, sell, copy, modify, create derivative works of, and
distribute object code copies of the Licensed Technology, and the right to sublicense the foregoing as object code to Arkados’
customers, provided that the total number of copies of either the original Licenced Technology or its derivatives created, sold
or distributed, either directly or through sublicensing, does not exceed the total number of licences purchased; and

 

		(b)	permission to place the source code for the Licensed Technology into a software escrow on terms
acceptable to Exegin, for the benefit of Arkados’ customers. Arkados may, under the condition of Exegin’s bankruptcy,
provide copies of the source code for the Licenced technology to Arkados’ customers for the purposes of maintaining their
current, at time of Exegin bankruptcy, products and no other.

 

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Arkados will
not allow any third party (including its customers) to access any of the source code to the Licensed Technology, and Arkados will
not carry on any activity in connection with the Licensed Technology except as specifically permitted by this section.

 

		3.3	Sublicenses. Arkados will not permit any third party to use any
Licensed Technology until such party has agreed to be bound by the EULA for that Licensed Technology.

 

		3.4	Notices. Arkados will ensure that the Arkados Products are distributed
with documentation that prominently states that the products contain or are powered by software developed by Exegin Technologies
Limited. Exegin may also advertise and publicly disclose that its technology is used in the Arkados Products, subject to Arkados’
prior written approval of the disclosures, which will not be withheld or delayed unreasonably.

 

		3.5	License to Exegin. Subject to the terms and conditions of this
Agreement, Arkados hereby grants to Exegin during the Term a worldwide, perpetual, non-exclusive, irrevocable (subject to section
8.7), royalty-free licence to make, use, sell, copy, modify, create derivative works of any Arkados Derivatives that Arkados may
give to Exegin, and the right to sublicense the foregoing to Exegin’s customers.

 

Part 4-
OWNERSHIP

 

		4.1	Exegin. As between the parties, Exegin owns: (a) its Confidential
Information, (b) the Licensed Technology, and (c) all intellectual property and other proprietary rights in and to the foregoing.

 

		4.2	Arkados. As between the parties, and subject to Exegin’s
ownership of the underlying Licensed Technology, Arkados owns: (a) its Confidential Information, (b) all Arkados Derivatives, and
(c) the Arkados Products, and (d) all intellectual property and other proprietary rights in and to the foregoing.

 

Part 5-
FEES

 

		5.1	License Fee. Arkados will pay Exegin a one-time license fee of
US$25,000 (the “License Fee”) in immediately available funds for each 25,000 units to be licensed, including ZigBee
PRO with bridging along with SE1.x Authentication and ECMQV library for Linux operating environment. The License Fee shall be payable
in five (5) equal instalments on the 1st of each month following the Effective Date. 

 

		5.2	Records. Arkados will keep true and accurate records and books
of account in relation to the Sales, and will preserve those records and books of account pertaining to a particular financial
year for at least 36 months after the end of that financial year. Upon Exegin’s reasonable request, and solely for purposes
of determining whether Arkados is in compliance with the number of units licensed stated in Section 5.1 above, Arkados will supply
copies to Exegin of the sales records, with only such information as is necessary to confirm such compliance and all other information
redacted, which Exegin shall treat as Confidential Information of Arkados. If reasonably necessary to confirm such compliance,
Exegin, at its own expense, may cause its auditor to conduct an audit of so much of Arkados’ records as is necessary to confirm
such compliance for any year or other period, provided however, that notice of any such audit must be given at least thirty (30)
days in advance in writing to Arkados and shall not materially interrupt the conduct of Arkados’ business.

 

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		5.3	Taxes. The parties shall cooperate to segregate the payment of
fees into the following: (i) those for nontaxable services and deliverables; and (ii) those for which a VAT, GST, sales, use or
other similar tax is to be paid or has already been paid. In addition, each party shall reasonably cooperate with the other to
more accurately determine a party's tax liability and to minimize such liability, to the extent legally permissible. Each party
shall provide and make available to the other any resale certificates, information regarding out-of-state sales or use of equipment,
materials or services, treaty certification and any other exemption certificates or information requested by a party. If obligated
by the law of the jurisdiction in which Arkados is headquartered, it may withhold taxes in connection with any payment made to
Exegin in connection with the good or services to be provided pursuant to this Agreement.

 

		5.4	Interest. Arkados will pay simple interest on all overdue amounts
at a rate of 18% per year or the maximum rate permitted by law, whichever is less, calculated from the date payment was due until
the date payment of all overdue amounts is made in full.

 

		5.5	Fees Payable Without Set-off or Deduction. Arkados will pay all
amounts due under this Agreement without any set-off, deduction or withholding whatsoever, unless there is a requirement under
law for tax purposes.

 

Part 6-
OBLIGATIONS

 

		6.1	Cooperation. Arkados will cooperate with Exegin in a timely manner,
as required for Exegin to provide all services under this Agreement, and will give Exegin all required information and access to
the Arkados Products as and when required by Exegin in connection with this Agreement.

 

		6.2	Exegin Marks. Arkados must not use any Exegin trademark, Exegin’s
legal name and reasonable contractions thereof, its logos and the specific names of its products, without Exegin’s prior
written permission.

 

		6.3	Confidentiality. Each party will (and will cause its employees
and agents to) keep the other party’s Confidential Information strictly confidential and not disclose it to anyone unless
the other party consents or unless the recipient required by law or court order to do so. Each party will not use the other party’s
Confidential Information for any purpose other than to perform its obligations or exercise its rights under this Agreement.

 

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		6.4	Requests and Suggestions. Each party may make requests and suggestions
regarding changes or improvements to the Licensed Technology, or regarding ways to brand, market or distribute the Licensed Technology
( “Feedback”). Giving Feedback is optional. In the event that a party provides Feedback to the other party without
any prior notification of restriction or limitation on its use, it will be deemed that such Feedback is without charge or claim
of any kind whatsoever to the party receiving and that the receiving party has full and unlimited license to use or commercially
exploit such Feedback in its sole discretion. 

 

Part 7-
REPRESENTATIONS AND WARRANTIES

 

		7.1	Power and Capacity. Each party represents and warrants to the
other, in respect of itself, that:

 

		(a)	it has full power and capacity to enter into and be bound by this Agreement, and to perform its
obligations under this Agreement;

 

		(b)	this Agreement constitutes valid and binding obligations upon it, enforceable in accordance with
its terms; and

 

		(c)	the execution and performance by it of this Agreement and the activities contemplated by it do
not and will not, to its knowledge, contravene any contractual restrictions or any existing applicable law or regulations binding
on it.

 

		7.2	Exegin’s Representations and Warranties. Exegin represents
and warrants to Arkados that:

 

		(a)	to its knowledge, Exegin has good, valid, legal title to the Licensed Technology, free of encumbrances
of any kind, and has not unlawfully copied, misappropriated or infringed any patents, copyrights, trade secret rights or other
intellectual property rights of a third party in those jurisdictions covered by the Bern Convention for the Protection of Literary
and Artistic Works in respect of the Licensed Technology;

 

		(b)	to its knowledge, the Licensed Technology does not contain any virus or any other contaminant,
including, but not limited to, codes, commands or instructions that may be used to access, alter, delete, damage or disable the
Licensed Technology, other software, firmware, or hardware;

 

		(c)	the Licensed Technology does not contain any open source software, or any third party software,
except as set forth on the “Third Party and Open Source Materials” as set forth on Exhibit “B” to this
Agreement; and

 

		(d)	to its knowledge, it has all rights necessary to provide the Licensed Technology to Arkados for
the purposes of this Agreement.

 

		(e)	it will comply with all applicable laws, rules, and regulations related to Arkados' rights and
obligations under this Agreement and Exegin’s activities with relation to this Agreement, and Exegin further covenants not
to violate any rights of third parties, be they in the nature of intellectual or other property rights or otherwise, in any manner
that would expose Arkados to claims by third parties based upon the conduct of the Exegin.

 

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		7.3	No Other Warranties of Exegin. The representations and warranties
in Section 7.2 are the exclusive representations of Exegin and are instead of any and all other warranties, representations or
conditions (whether express, implied, oral or written) with respect to the subject matter of this Agreement, including any implied
warranties or conditions of title, non-infringement, merchantability or fitness or suitability for a particular purpose, PROVIDED
HOWEVER, THAT THIS DISCLAIMER SHALL NOT LIMIT IN ANY WAY ARKADOS’ ABILITY TO SEEK REPAIR OF ERRORS THAT PREVENT THE COMMERCIALLY
REASONABLE OPERATION OF THE SOFTWARE IN ACCORDANCE WITH ITS FUNCTIONAL SPECIFICATIONS.. Exegin disclaims and Arkados waives all
other such warranties, representations and conditions. Certain jurisdictions do not permit such exclusion of warranties, so this
disclaimer may not apply to Arkados. To the extent permitted by those jurisdictions, all warranties respecting the Licensed Products,
if any, are limited to the Warranty Period. 

 

Part 8-
MAINTENANCE AND OTHER SERVICES

 

		8.1	Maintenance Services.

 

		(a)	HELP DESK

 

Exegin will provide Arkados with technical assistance
for the Licensed Technology by email at any time or by telephone between 9:00 a.m. and 5:00 p.m. Pacific Time on business days
observed in the Province of British Columbia, Canada.

 

		(b)	ERROR CORRECTION

 

		(i)	Reporting. Errors or other defects in the Licensed Technology Materials can be reported
by email at any time or by telephone between 9:00 a.m. and 5:00 p.m. Pacific Time on business days observed in the Province of
British Columbia, Canada.

 

		(ii)	Acknowledgement. Exegin will acknowledge each defect report within one business day of receipt
by providing Customer with a defect ticket number and a request for additional information, if needed.

 

		(iii)	Classification. Within two (2) business days of receiving a defect report, Exegin will classify
the defect’s severity level (as either urgent, high, medium, low, or comment) and assign resources to correct the defect.

 

High - Defect results in severely impaired functionality.
A work around may exist but its use is unsatisfactory. In general, you would not release the product with such a defect. Examples:
with certain steps, we may generate a Windows error/message that you can click Ok on and continue with whatever you were doing
with no harmful effects.

 

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Medium - Defect causes failure of non-critical aspects
of the system. There is a reasonably satisfactory work around. The product may be released if the defect is documented, but the
existence of the defect may cause customer dissatisfaction. Example: a non-Client Financial Report is not recognizing an option
correctly, but if a filter is set, the report can be generated with the proper output.

 

Low - Defect of minor significance. A work around
exists or, if not, the impairment is slight. Generally, the product could be released and most customers would be unaware of the
defect's existence or only slightly dissatisfied. Example: A button or button set is slightly off center on a data screen, or the
problem is purely cosmetic and not easily recognizable.

 

Comment - Enhancement request or design issue. These
should probably be coded as Suggestions or brought to the Design Team by the originating person’s DT representative; These
will have to be covered under optional engineering services along with business development.

 

		(iv)	Resolution. Exegin shall use commercially reasonable efforts to correct each reported defect
within the following time frames:

High: Within
five business days of classification

Medium: Within ten business days of classification

Low: Before the next scheduled release

Comment: At Exegin’s discretion

 

		(c)	MAINTENANCE

 

Exegin shall:

 

		(i)	deliver to Licensee, within fourteen (14) days after a material change is made to any of the Licensed
Technology, a copy of such change; and

 

		(ii)	deliver to Licensee, within fourteen (14) days after the completion of any planned enhancement
to Licensed Technology, a copy of such enhancement; and

 

		(iii)	notify Licensee forthwith each time a material enhancement is made to Licensed Technology and provide
a list of changed source files.

 

In addition, Exegin shall deliver to Licensee a
maintenance release of the Licensed Technology at least once every six (6) months during the period covered by Section 8.2.

 

		8.2.	Maintenance Fees. Arkados will pay Exegin US$5,000 per year,
in advance, for each year of Maintenance Services. The first payment will be made upon execution of this Agreement. The second
payment will be made on the one-year anniversary of the Effective Date. The first two payments are mandatory and shall constitute
payment in full for the Maintenance Services. All subsequent payments are at the option of Arkados, however, all Maintenance Services
will terminate immediately if subsequent payments are not made by the anniversary of the Effective Date. 

 

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		8.3	Fees for Other Services. For a period of six (6) months from
the Effective Date, Exegin will provide professional services as requested from time to time by Arkados in writing. Including but
not limited to assistance with ports to other processors, MAC drivers for other radios and similar connectivity or accessibility
not listed in Exhibit B hereto, at a rate of US$125.00 per hour on a time and materials basis. After the expiration of the six
(6) month period, unless otherwise agreed in writing by the parties, Arkados will pay Exegin at Exegin’s then current hourly
rates for such services.

 

		8.4	Expenses. Provided same are preapproved in writing by Arkados,
Arkados will reimburse Exegin for all travel costs incurred in connection with the services performed under this Agreement, and
all related expenses. 

 

		8.5	Payment. Arkados will pay all amounts under sections 8.2, 8.3
and 8.4 within 30 days after being invoiced for them. 

 

		8.6	Termination.

 

		(a)	Either party may terminate this Agreement with respect to this Part 8:

 

		(i)	if the other party materially defaults in the performance or observance of any of its obligations
and fails to remedy the default within 30 days after receiving a written demand to do so, provided that such demand is sufficiently
detailed as to permit the other party to formulate a reasonable remedy; or

 

		(ii)	if the other party becomes insolvent or bankrupt or makes an assignment for the benefit of creditors,
or if a receiver or trustee in bankruptcy is appointed for it, or if any proceeding in bankruptcy, receivership, or liquidation
is instituted against it and is not dismissed within 30 days following commencement thereof.

 

		(b)	When any party has the option to terminate, it may exercise that option by giving the other party
written notice of termination, which will be effective upon receipt.

 

(c)
FOR THE AVOIDANCE OF DOUBT, The termination or expiration of this Agreement for any reason shall not LIMIT, DIMINISH, AMEND
OR affect, in any way whatsoever, the license to the Licensed Technology or any sublicense thereof BY ARKADOS. 

 

		8.7	Upon Expiration or Termination. Upon expiration or termination
of this Agreement for any reason:

 

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		(a)	each party will return all Confidential Information of the other party in its possession or control,
except that Arkados may retain such information to the extent required for Arkados to meet its support, maintenance and warranty
obligations to its existing customers;

 

		(b)	Arkados will pay to Exegin all amounts its owes to Exegin; and

 

		(c)	Notwithstanding anything to the contrary, only such rights and obligations of the parties under
Part 3, Part 4, Section 5.2, Section 5.3, Section 5.4 Section 5.5, Section 6.3, Section 6.4, Section 8.6(c), Part 9, and Part 10
will survive and continue after termination or expiration of this Agreement.

 

Part 9-
LIABILITY

 

		9.1	Indirect Damages. WITH THE EXCEPTION OF LIABILITY FOR INFRINGEMENT UPON THIRD PARTY’S INTELLECTUAL
PROPERTY, IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING
OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE EXEGIN TECHNOLOGY.

 

		9.2	Total Liability. EXEGIN’S TOTAL LIABIITY FOR ITS INDEMNIFICATION OBLIGATION UNDER THIS AGREEMENT
SHALL NOT EXCEED, IN THE AGGREGATE, US$2 MILLION. WITH THE EXCEPTION OF LIABILITY FOR FEES OWED PURSUANT TO SECTION 5.1 OR PART
8 OF THIS AGREEMENT, ARKADOS’ TOTAL LIABILITY UNDER THIS AGREEMENT FOR DAMAGES (INCLUDING DIRECT DAMAGES) WILL NOT EXCEED
THE LICENSE FEES PAID BY ARKADOS TO EXEGIN UNDER SECTION 5.1.

 

		9.3	Indemnification by Exegin. Exegin will defend, indemnify and
hold Arkados harmless from and against all claims, fines, taxes, damages, expenses and costs (including reasonable lawyers’
fees) incurred by Arkados or its officers, directors, shareholders, employees and representatives in connection with a claim for
infringement by Exegin of any third party intellectual property or that any of Exegin’s representations or warranties under
this Agreement are untrue, provided that: 

 

		(a)	Arkados gives Exegin prompt written notice of the claims and, reasonable assistance and access
to information to defend them, provided however, that under no circumstances may Exegin settle any claim that includes an admission
of liability on the part of Arkados without the explicit prior written consent of Arkados;

 

		(b)	Arkados does not negotiate, settle or compromise any of the claims without Exegin’s prior
written consent; and

 

		(c)	the claims are not related in whole or part to:

 

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		(i)	use of an altered version of any of the Licensed Technology, which alteration was by Arkados, unless
the claim would have arisen even in the absence of the alterations;

 

		(ii)	use of a non-current version of any of the Licensed Technology, provided that Exegin made a current
version available to Arkados which eliminates the claim and Exegin has so notified Arkados;

 

		(iii)	use of any of the Licensed Technology in combination with any other software or materials, unless
the claim would have arisen even in the absence of such combination;

 

		(iv)	Exegin’s having complied with Arkados’ written instructions or specifications; or

 

		(v)	Arkados’ breach of any obligation in this Agreement.

 

		9.4	Indemnification by Arkados. Arkados will indemnify and hold Exegin
harmless from and against all claims, fines, taxes, damages, expenses, costs (including reasonable lawyers’ fees) incurred
by Exegin or its officers, directors, shareholders, employees and representatives for any reason relating directly or indirectly
to the Arkados Products, but only to the extent that the claims were not caused by Exegin’s breach of any obligation in this
Agreement. 

 

Part 10-
GENERAL

 

		10.1	Communication. All communications required or permitted by this
Agreement to be made by either party to the other will be made in writing and be delivered by hand, registered mail at the addresses
and numbers set-out above, or to such other addresses of which a party gives the other notice from time to time. Proof of delivery
in that manner will constitute proof of receipt. 

 

		10.2	Law. This Agreement will be interpreted, construed, and enforced
in all respects in accordance with the substantive law of the State of California without reference to its choice of laws principles,
and excluding the provisions of the U.N. Convention on Contracts for the International Sale of Goods. 

 

		10.3	Dispute Resolution. It is the strict intention of the parties
that all disputes be resolved amicably. In the event of a dispute, the parties first shall work cooperatively and in good faith
to resolve same through its respective Chief Executive Officer. If the parties cannot resolve the dispute within fifteen (15) business
days, the parties shall resort to commercial arbitration before a panel of three (3) arbitrators, with one (1) arbitrator chosen
by each party and the third chosen by the parties’ selected arbitrators. Such arbitration shall be conducted pursuant to
the rules provided by the American Arbitration Association. Nothing in this Section prohibits a party from applying to court of
competent jurisdiction for injunctive or other equitable relief. 

 

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		10.4	Force Majeure. Neither party will be responsible for any failure
to perform its obligations hereunder to the extent caused by events beyond the non-performing party’s reasonable control,
including acts of God, war, riot, embargoes, acts of government including civil or military authorities, export controls, catastrophe,
fire, floods, accidents, strikes, shortages of transportation, facilities, fuel, energy, labour or material acts of public enemy,
but not including the financial status of the non-performing party.

 

		10.5	Relationship. The parties are independent contractors. Neither
party will hold itself out as the agent or partner of the other party.

 

		10.6	Currency. Unless otherwise stated, all references in this Agreement
to payments and monetary amounts mean lawful currency of the United States of America.

 

		10.7	Assignment. Neither party will assign or transfer, in whole or
in part, its interest in this Agreement without the prior written consent of the other party, which will not be unreasonably withheld,
conditioned, or delayed, except that either party may assign its rights and obligations hereunder without prior consent in connection
with a merger, acquisition or sale of substantially all of its assets.

 

		10.8	Enurement. This Agreement enures to the benefit of and is binding
upon the parties and their respective successors and permitted assigns.

 

		10.9	Severability. The invalidity of any provision of this Agreement
will not affect the validity of any other provision.

 

		10.10	Entire Agreement. This Agreement is the entire agreement, and
supersedes all previous understandings, agreements and representations between the parties, written or oral regarding the subject
matter contained herein, and may be amended only by a written document signed by both parties.

 

		10.11	Waiver. The failure of either party to enforce at any time for
any period any provision hereof will not be construed to be a waiver of such provision or of the right of such party thereafter
to enforce each such provision, nor shall any single or partial exercise of any right or remedy hereunder preclude any other or
further exercise thereof or the exercise of any other right or remedy.

 

		10.12	Anti-Corruption. Neither party shall perform any actions that
are prohibited by local and other anti-corruption laws (including the U.S. Foreign Corrupt Practices Act, collectively “Anti-Corruption
Laws”) that may be applicable to one or both parties to this Agreement. Without limiting the foregoing, neither party shall
make any payments, or offer or transfer anything of value, to any government official or government employee, to any political
party official or candidate for political office or to any other third party related to the transaction in a manner that would
violate Anti-Corruption Laws.

 

		10.13	Further Assurances. Each party shall execute any instruments
reasonably believed by the other to be necessary to fully implement the provisions of this Agreement.

 

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		10.14	Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original and when taken together shall constitute one and the same document. Facsimile or other
electronic reproduction of signatures shall be deemed originals.

 

[REMAINDER
OF PAGE LEFT INTENTIONALLY BLANK

SIGNATURE PAGE TO FOLLOW]

 

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TO EVIDENCE THEIR
AGREEMENT each of the parties has executed this Agreement as of the Effective Date.

  

	EXEGIN TECHNOLOGIES LIMITED	 	ARKADOS, INC.
	 	 	 	 	 
	By:	/Leslie Mulder/	 	By:	/Terrence DeFranco/ 
	 	Authorized Signatory	 	 	Authorized Signatory
	 	 	 
	Name (printed): Leslie Mulder	 	Name (printed): Terrence DeFranco
	 	 	 	 	 
	Its:	President      	 	Its:	CEO 
	 	Title of Authorized Signatory	 	 	Title of Authorized Signatory

  

    	14Execution Copy

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (the “Agreement”)
is effective as of the 1st day of July, 2013 (the “Effective Date”) by and between ARKADOS GROUP, INC., a Delaware
corporation (hereinafter referred to collectively with its subsidiaries as the “Company”) with its address at 211 Warren
Street, Suite 320, Newark, New Jersey 07103, and MAT Research, LLC, an Oregon limited liability company with an address at 15265
NW Perimeter Drive, Beaverton, Oregon 97006(sometimes referred to hereinafter as “MAT” or the “Consultant”).

 

RECITALS

 

WHEREAS, Consultant
has unique knowledge and expertise in the industry in which the Company does business; and

 

WHEREAS, the Company
desires to retain the services of the Consultant to provide certain strategic advisory services to the Company, and the Consultant
desires to perform such services for the Company.

 

NOW THEREFORE, in consideration
of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the parties hereto, the parties agree as follows:

 

1.          Engagement
of Services

 

1.1.         Services.
During the Consultation Period (as defined below), the Consultant agrees to perform such consulting, advisory and related services
to and for the Company as may be reasonably requested from time to time by the Company.

 

1.2.         Contract
for Personal Services of Alan Pan. It is the intention that any Services to be performed by Consultant pursuant to this Agreement
shall be performed by its principal, Alan Pan and shall not be delegated or assigned to any other individual or entity without
the express written consent of the Company. In the event that Alan Pan is unable or unwilling to perform the Services, this Agreement
may be terminated by Company without penalty or further obligation to Consultant.

 

2.          Compensation

 

2.1           Consulting
Fees. The Company shall pay the Consultant in shares of common stock of the Company a fee in the amount of 20,000,000 shares in
connection with the consummation of an agreement with a customer that produces non-contingent material revenue to the Company,
and in addition to such initial bonus, for contributing to the growth of the Company’s gross revenue, the amounts set forth
in the table below. Each of the tiers is cumulative with the previous tier and not independent of the others or intended to compound.
For the avoidance of doubt, and by way of example, achieving the second tier would entitle Consultant to the amount stated next
to that tier and not to the amount for any previous tier.

 

Arkados Independent Consultant

 

    	 

    	 

    

 

Execution Copy

 

	Cumulative Milestone
 (Gross Revenue of Company)	 	 	Common Shares to be issued
	$	500,000	 	 	30 million
	$	2,000,000	 	 	30 million
	$	4,000,000	 	 	30 million

 

2.2           Reimbursement
of Expenses. The Company shall reimburse the Consultant for all reasonable and necessary expenses incurred or paid by the Consultant
in connection with, or related to, the performance of his services under this Agreement. The Consultant shall submit to the Company
itemized monthly statements, in a form satisfactory to the Company, of such expenses incurred in the previous month. The Company
shall pay to the Consultant amounts shown on each such statement within 30 days after receipt thereof. Notwithstanding the foregoing,
the Consultant shall not incur total expenses in excess of $100 per month without the prior written approval of the Company.

 

2.3           Benefits.
The Consultant shall not be entitled to any benefits, coverages or privileges, including, without limitation, social security,
unemployment, medical or pension payments, made available to employees of the Company.

 

2.4           Consultant
shall not be entitled to any compensation other than as specified in this Agreement.

 

3.          Independent
Consultant Relationship 

 

3.1           Nature
of Relationship. Consultant’s relationship with Arkados will be that of an independent contractor and nothing in this
Agreement shall be construed to create a partnership, joint venture, or employer-employee relationship. Since Consultant will not
be an employee of Arkados, Consultant will not be entitled to any of the benefits which Arkados may make available to its employees,
such as group insurance, profit-sharing or retirement benefits. Consultant is not the agent of Arkados and is not authorized to
make any warranty, representation, contract, or commitment on behalf of Arkados unless specifically requested or authorized to
do so by Arkados. Consultant will indemnify, defend and hold harmless Arkados for claims of any third party arising out of any
unauthorized statements by Consultant. Consultant is responsible for providing all facilities, tools and equipment that Consultant
may require to perform services for Arkados hereunder.

3.2           Consultant
Responsible for Taxes and Records. Consultant acknowledges and agrees that it will be solely responsible for and will file
and remit on a timely basis, all tax returns and payments required to be filed with or made to any Federal, State or local tax
authority, on behalf of Consultant and/or Consultant’s employees, with respect to Consultant’s performance of services
and receipt of fees under this Agreement, including, without limitation, amounts required to be paid for (i) social security, (ii)
Federal, State or any other employee payroll taxes, (iii) Federal unemployment taxes, (iv) workers’ compensation, (v) disability
insurance, and (vi) similar items. No payments to Consultant will be subject to withholding by Arkados for the payment of Taxes
and Other Payments. Consultant will be solely responsible for and must maintain adequate records of expenses incurred in the course
of performing services under this Agreement. Arkados will regularly report amounts paid to Consultant by filing Form 1099 MISC
with the Internal Revenue Service as required by law.

 

Arkados Independent Consultant

 

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Execution Copy

 

3.3           Risk
Borne by Consultant. Consultant shall perform the services hereunder entirely at the Consultant’s
risk. Consultant assumes all responsibility for the subject matter of this Agreement. Consultant shall be solely liable for any
acts made during Consultant’s performance under this Agreement. Any assignment of Consultant’s duties or obligations
hereunder is hereby expressly prohibited. Any such assignment shall be deemed void and without force or effect.

 

3.4           Compliance
with Applicable Law.  Consultant agrees that, in performance of the services required under this Agreement, Consultant
has full and sole responsibility for compliance with all applicable laws, statutes, ordinances and regulations. Additionally, Consultant
has the sole responsibility for compliance with all other matters in conjunction with the services to be performed hereunder.

 

3.5           Indemnification. Consultant
further agrees to indemnify, defend and hold harmless Arkados from any and all claims, loss or liability incurred by reason of
any (a) unauthorized statements made while engaged in the service of Arkados; (b) undisclosed conflict or by the alleged breach
by Consultant of any confidentiality, restrictive covenants or services agreement with anyone other than Arkados; (c) any intentional
act or omission or gross negligence while engaged in services rendered to or on behalf of Arkados; (d) any breach of the provisions
of this Agreement.

 

4.          Restrictive
Covenants; Company Property.

 

4.1           Confidential
Information

 

(a)          Consultant
agrees during the term of this Agreement and at all times thereafter to take all steps necessary to hold in trust and confidence
Confidential Information of Arkados and its clients/customers, vendors/suppliers and third parties disclosed to Consultant in the
course of providing services to Arkados. Consultant will not directly or indirectly use or disclose any Confidential Information,
for any purpose not specifically authorized by Arkados in writing. “Confidential Information” includes, but is not
limited to, technical and business information (in any form whatsoever) and material relating to products, trade secrets, research
and development, production, processes, policies, procedures, costs, profit or margin information, employee information, finances,
budgets, projections, investors, customers and customer lists, addresses, contact information and similar information, marketing
and production and future business plans, documents, such as drawings, manuals, letters, notes, notebooks, reports, sketches, memoranda,
records, files, data (in any form), vendor lists, addresses, contact information and similar information.

 

(b)          Notwithstanding
the other provisions of this Agreement, nothing received by Consultant will be considered to be the Confidential Information if:
1) it has been published or is otherwise readily available to the public other than by a breach of this Agreement; 2) it has been
lawfully received by Consultant from a third party without confidential limitations; 3) it has been independently developed by
or for Consultant by personnel or agents having no access to the Confidential Information and same may be proven by documentary
evidence; or 4) it was known to Consultant prior to its receipt by Consultant in the course of work performed for Arkados and may
be proven by documentary evidence.

 

(c)           In addition, nothing set forth herein
shall prevent disclosure of this Agreement by the Company as may be required to governmental agencies.

 

Arkados Independent Consultant

 

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Execution Copy

 

4.2           Assignment
of Works and Inventions.

 

(a)          Consultant
acknowledges and agrees that anything produced by Consultant in the course of performance of services pursuant to this Agreement
is a work made for hire. As such, Consultant hereby assigns to Arkados all patent, copyright, and other intellectual property rights
Consultant may have in any Inventions or other protectable work created in the course of any services performed for Arkados, whether
such work was created solely by Consultant or jointly with another. Consultant further agrees to execute, upon Arkados’ request,
any documents reasonably necessary to perfect such rights in Arkados. Inventions resulting from Consultant’s work for Arkados
under this Agreement are the exclusive property of Arkados.

 

(b)          For
purposes of this Agreement, “Inventions” includes any and all inventions, improvements, discoveries, technical developments,
computer programs, notes, sketches, drawings, reports or other works that Consultant, solely or jointly with others, conceives
or reduces to practice as a result of, or in the course of, any services performed for Arkados. Consultant assigns to Arkados Consultant’s
entire right, and shall cause any employee who may be an inventor of an Invention to assign his or her entire right to all such
Inventions. Consultant agrees to cooperate with Arkados or its designee(s), both during and after the term of this Agreement, in
the procurement and maintenance of Arkados’ rights in the Inventions, and to sign (or its employees to sign) all papers which
Arkados may consider necessary and desirable for securing and maintaining such rights on behalf of Arkados or its designee(s).

 

(c)          Arkados
shall not have rights to any Invention conceived or reduced to practice by Consultant for which no equipment, supplies, facility,
or trade secret information of Arkados was used and which was developed entirely on Consultant’s own time except if 1) the
Invention relates (i) to Arkados’ business or (ii) to Arkados’ actual or demonstrably anticipated research or development,
or 2) the Invention results from any services performed by Consultant for Arkados.

(d)          Consultant
agrees to assist Arkados in any reasonable manner to obtain and enforce for Arkados’ benefit patents, copyrights, and other
property rights in any and all countries, and Consultant agrees to execute, when requested, patent, copyright or similar applications
and assignments to Arkados and any other lawful documents deemed necessary by Arkados for the purposes of this Agreement. Consultant
further agrees that the obligations and undertakings stated in this Section will continue beyond the termination of Consultant’s
service to Arkados. If called upon to render assistance under this Section, Consultant will be entitled to reimbursement of expenses
incurred at or upon written request of Arkados.

 

4.3           Conflicts
of Interest, Non-Competition, Non-Solicitation. Consultant agrees during the term of this Agreement not to accept work or enter
into a contract or accept an obligation inconsistent or incompatible with Consultant’s obligations under this Agreement or
with the scope of services to be rendered for Arkados. Consultant warrants that to the best of Consultant’s knowledge, there
is no other contract or duty on Consultant’s part now in existence inconsistent with this Agreement. During the term of this
Agreement and for a period of two (2) years after expiration or termination for any reason of this Agreement, Consultant agrees
not to:

 

(a)          compete
with the business of Arkados, whether individually or through any entity, or to use (or permit the use of) any Confidential Information,
directly or indirectly, for the purpose of competing with the business of Arkados; or

 

(b)          suggest
to, induce or persuade any customer, client, vendor, supplier, employee, Consultant or agent of Arkados to terminate or diminish
its relationship with Arkados.

 

Arkados Independent Consultant

 

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Execution Copy

 

Subject to the limitation regarding use
of Confidential Information of Arkados set forth above, the foregoing is not intended to otherwise limit the employment of Consultant
in his profession.

 

4.4           Arkados
Property. Consultant acknowledges that Arkados’ sole and exclusive property includes all Arkados trademark, trade names,
service marks, copyrights, and Confidential Information (defined above), whether delivered to Consultant by Arkados, made available
to Consultant, or made by Consultant in the performance of services under this Agreement, relating to the business activities of
Arkados or its customers or suppliers and containing any information or data whatsoever. Upon expiration or termination of this
Agreement for any reason or in any manner, with the exception of any samples purchased by Consultant (not on behalf of or at the
direction of Arkados), Consultant agrees to return to Arkados all property of Arkados then in Consultant’s possession, except
as Arkados may, by proper written permission, allow Consultant to retain. Consultant further agrees that nothing contained herein
shall be a deemed a license to use any Arkados property, except as directed by Arkados in the course of performing services hereunder.

 

4.5           Injunctive
Relief for Breach. Consultant acknowledges and agrees that the obligation and promises of Consultant under Sections 4.1, 4.2,
4.3, and 4.4 of this Agreement are of a unique, intellectual character that gives them particular value. Consultant acknowledges
and agrees that a breach of any of the promises or agreements contained in this Agreement will result in immediate irreparable
and continuing damage to Arkados for which there will be no adequate remedy at law, and, in the event of such breach, Arkados will
be entitled to injunctive relief and/or a decree for specific performance, and such other relief as may be proper without the necessity
of posting bond and which may be taken cumulatively and not concurrently. Any action taken by Arkados pursuant to this Section
shall not be deemed an election of remedies.

 

5.          Term/Termination

 

5.1           Term.
This Agreement shall be for a term of two (2) years from the Effective Date but may be terminated earlier upon sixty (60) days
advance notice by either party.

 

5.2           Termination
of this Agreement. If Consultant terminates prior to completion of any project assignment and without having obtained from
Arkados advance approval for such termination, Consultant shall be liable to Arkados for damages suffered as a result of said termination
including, without limitation, damages suffered by the Arkados client or customer and costs incurred by Arkados in connection with
hiring a new Consultant.

 

5.2           Survival
of Provisions. The provisions set forth in Article 4, Section 5.1(b) and Article 6 of this Agreement shall survive any termination
or expiration of this Agreement.

 

6.          General
Provisions.

 

6.1           Governing
Law. This Agreement shall be governed and construed in accordance with the internal laws of the State of New Jersey without
regard to the conflicts of law provisions thereof. The Federal and State courts within the State of New Jersey, County of Essex,
shall have exclusive jurisdiction to adjudicate any disputes arising out of or in connection with this Agreement, and for any litigation
adjudicating such disputes, venue shall lie in these courts.

 

Arkados Independent Consultant

 

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Execution Copy

 

6.2           Entire
Agreement. This Agreement sets forth the entire understanding and agreement of the parties as to the subject matter of this
Agreement. It may not be amended except in writing, signed by both parties.

 

6.3           Severability;
Waiver. If any provision, or any portion of such provision, of this Agreement is held to be invalid or unenforceable for any
reason, the remaining provisions, or portion of such provision, will continue in full force without being impaired in any way.
Arkados and Consultant agree to replace any invalid and unenforceable provision with a valid and enforceable provision which most
closely approximates the intent and economic effect of the invalid or unenforceable provision. The waiver by Arkados of a breach
of any provision of this Agreement of Consultant will not operate or be interpreted as a waiver of any other or subsequent breach
by Consultant.

 

6.4           Successors
and Assigns. Neither this Agreement nor any of the rights or obligations of Consultant arising under this Agreement may be
assigned or transferred without Arkados’ prior written consent. This Agreement will be for the benefit of Arkados’
successors and assigns, and will be binding on Consultant’s heirs, successors and legal representatives.

 

6.5           Headings.
Titles or headings to the sections and paragraphs of this Agreement are not part of the terms of this Agreement, but are inserted
solely for convenience of reference.

 

6.6           Notices.
All notices, requests and other communications under this Agreement must be in writing, and must be mailed by registered or certified
mail, postage prepaid and return receipt requested, or delivered by hand to the party to whom such notice is required or permitted
to be given. If mailed, any such notice will be considered to have been given three (3) business days after it was mailed, as evidenced
by the postmark. If delivered by hand, any such notice will be considered to have been given when received by the party to whom
notice is given, as evidenced by written and dated receipt of the receiving party. The mailing address for notice to either party
will be the address in the introductory paragraph of this Agreement. Either party may change its mailing address by notice as provided
by this Section 6.6.

 

6.7.          Miscellaneous.

 

6.7.1           No
delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other right.
A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed
as a bar or waiver of any right on any other occasion.

 

6.7.2           The
captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope
or substance of any section of this Agreement.

 

6.7.3           In
the event that any provision of this Agreement shall he invalid, illegal or otherwise unenforceable, the validity, legality and
enforceability of the remaining provisions shall in no way he affected or impaired thereby.

 

6.8.          Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument.

 

Arkados Independent Consultant

 

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Execution Copy

 

IN WITNESS
WHEREOF, the parties have executed this Consulting Agreement as of the date first above written.

 

	 	ARKADOS GROUP, INC.
	 	 	 
	 	By:	/Terrence DeFranco/
	 	Name: Terrence DeFranco
	 	Title: CEO
	 	 
	 	CONSULTANT:
	 	 
	 	MAT RESEARCH, LLC
	 	 	 
	 	By:	/Tai Jee Pan/
	 	Name: Tai Jee Pan (aka Alan Pan)
	 	Title: President

 

Arkados Independent Consultant

 

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