Document:

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of October ____, 2013, by and between ARKADOS GROUP, INC.,
a Delaware corporation, with headquarters located at 211 Warren Street, Suite 320, Newark, NJ 07103 (the “Company”),
and Richmake
International Limited, a Samoa corporation with principal address at Offshore Chambers, P.O. Box 217, Apia Samoa
(the “Buyer”).

 

WHEREAS:

 

A.           The
Company and the Buyer are executing and delivering this Agreement in reliance upon the Regulation S or Regulation D exemption from
securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission
(the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”), or under Section 4(2) of the
1933 Act;

 

B.           Buyer
desires to purchase, and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement, a convertible
note of the Company, in the form attached hereto, in the aggregate principal amount of Two Hundred Thousand Dollars (US$200,000),
which note bears interest at the rate of 6% compounded quarterly (together with any note(s) issued in replacement thereof or as
a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”), and which note
is convertible into shares of common stock, $0.001 par value per share, of the Company (the “Common Stock”), upon the
terms and subject to the limitations and conditions set forth in such Note.

 

C.           The
Buyer wishes to lend to the Company, upon the terms and conditions stated in this Agreement, such principal amount of Note as is
set forth immediately below its name on the signature pages hereto; and

 

D.          The Note is part of an authorized issue
of 6% Convertible Notes due October 28, 2015 by the Company in the aggregate principal amount of $200,000.

 

NOW THEREFORE,
the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.          Loan
and Issuance of Note.

 

a.     Issuance
of Note. On the Closing Date (as defined below), the Company shall issue to the Buyer, and the Buyer agrees to loan to the
Company, such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages hereto.

 

b.     Form
of Loan. On the Closing Date (as defined below), (i) the Buyer shall loan the principal amount (the “Purchase Price”)
at the Closing (as defined below) by wire transfer of immediately available funds to the Company, in accordance with the Company’s
written wiring instructions, against delivery of the Note in the principal amount equal to the Purchase Price as is set forth immediately
below the Buyer’s name on the signature pages hereto, and (ii) the Company shall deliver such duly executed Note on
behalf of the Company, to the Buyer, against delivery of such Purchase Price.

 

c.     Closing
Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section 7 below,
the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall be 12:00
noon, Eastern Standard Time on or about May 31, 2013, or such other mutually agreed upon time. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to
by the parties.

 

    	 

    	 

    

 

d.     Buyer’s
Representations and Warranties. The Buyer represents and warrants to the Company that:

 

e.     Investment
Purpose. As of the date hereof, the Buyer is being issued the Note and purchasing the shares of Common Stock issuable upon
conversion of or otherwise pursuant to the Note (including, without limitation, such additional shares of Common Stock, if any,
as are issuable (i)on account of interest on the Note, (ii) as a result of the events described in Sections 1.3 and 1.4(g)
of the Note or (iii) in payment of the Standard Liquidated Damages Amount (as defined in Section 2(f) below) pursuant to this
Agreement, such shares of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively
with the Note, the “Securities”) for its own account and not with a present view towards the public sale or distribution
thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however,
that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific
term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement
or an exemption under the 1933 Act

 

f.      Accredited
Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an
“Accredited Investor”).

 

g.     Reliance
on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying upon the
truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the
Buyer to acquire the Securities.

 

h.     Information.
The Buyer and its advisors, if any, have been, and for so long as the Note remains outstanding will continue to be, furnished with
all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of
the Securities, which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any, have been, and for
so long as the Note remains outstanding will continue to be afforded the opportunity to ask questions of the Company and to promptly
receive answers to those questions. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic
information and will not disclose such information unless such information is disclosed to the public prior to or promptly following
such disclosure to the Buyer, or unless Buyer enters into a non-disclosure agreement with the Company agreeing to maintain the
confidentiality of the such information. Neither such inquiries nor any other due diligence investigation conducted by Buyer or
any of its advisors or representatives shall modify, amend or affect Buyer’s right to rely on the Company’s representations
and warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a significant
degree of risk.

 

i.      Governmental
Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Securities.

 

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j.     Transfer
or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered under
the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities
are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company,
at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary
for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold
or transferred pursuant to an exemption from such registration, which opinion shall be reasonably acceptable to the Company, (c) the
Securities are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor
rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this
Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities
are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have
delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary
for opinions of counsel in corporate transactions, which opinion shall be reasonably acceptable to the Company; (ii) any sale of
such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule
is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale
is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption
under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under
any obligation to register such Securities under the 1933 Act or any state securities laws or to comply
with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained
herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account
or other lending arrangement. 

 

k.    Legends.
The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act, may
be sold pursuant to Rule 144, or Regulation S without any restriction as to the number of securities as of a particular date that
can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of the certificates for such Securities):

 

“NEITHER THE ISSUANCE
AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE OR CERTIFICATE, NOR SECURITIES INTO WHICH THIS NOTE MAY BE CONVERTED, HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The
legend set forth above shall be removed, and the Company shall issue a certificate without such legend to the holder of any Security
upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for
sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation
S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such
holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933
Act, which opinion shall be reasonably acceptable to the Company so that the sale or transfer is effected. In the event that the
Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an
exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant
to Section 3.2 of the Note.

 

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l.     Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

m.   Residency.
The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

 

i.     Authorized
Shares. The Buyer hereby acknowledges that the number of shares of the Company’s Common Stock authorized and reserved
for issuance is below the number of Conversion Shares issued and issuable upon conversion of or otherwise pursuant to the Note
(based on the Conversion Price and any other shares of Common Stock issued or issuable pursuant to the terms of this Note). The
Buyer further acknowledges that they are aware, that their ability to convert the Note pursuant to its terms is conditioned upon
the Company taking all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation,
calling a special meeting of stockholders to authorize additional shares to meet the Company’s obligations under the Note,
using its best efforts to obtain stockholder approval of an increase in such authorized number of shares.

 

j.     Non-compliance
with Exchange Act. The Buyer hereby acknowledges that the Company is delinquent in its reporting requirements under the Exchange
Act. As a result, the Buyer understands that its ability to sell or transfer the Note or the shares of Common Stock underlying
the Note may be impaired and therefor may require the Buyer to the Securities indefinitely.

 

2.             Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a.    Organization
and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly
existing and in good standing under the laws of Delaware [or state jurisdiction], with full power and authority (corporate and
other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted. Schedule 3(a) sets forth a list of all of the Subsidiaries of the Company and the jurisdiction in which each is
incorporated. The Company and each of its Subsidiaries is duly qualified as a foreign corporation to do business and is in good
standing in every jurisdiction in which its ownership or use of property or the nature of the business conducted by it makes such
qualification necessary except where the failure to be so qualified or in good standing would not have a Material Adverse Effect.
“Material Adverse Effect” means any material adverse effect on the business, operations, assets, financial condition
or prospects of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the
agreements or instruments to be entered into in connection herewith. “Subsidiaries” means any corporation or other
organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly, any equity or other ownership
interest.

 

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b.    Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement and the
Note, and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms
hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the
transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation
for issuance of the Conversion Shares issuable upon conversion) have been duly authorized by the Company’s Board of Directors,
subject to the Amendment to the Company’s Certificate of Incorporation, which upon the effective date of such Amendment will
increase the authorized shares of Common Stock the Company, which Amendment is subject to the Company receiving the required consent
of a majority of the Company’s shareholders to such Amendment, (iii) this Agreement has been duly executed and delivered
by the Company by its authorized representative, and such authorized representative is the true and official representative with
authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and
(iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute,
a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

 

c.     Capitalization.
As of the date hereof, the authorized capital stock of the Company consists of: (i) 100,000,000 shares of Common Stock, $0.001
par value per share, of which 48,898,474 shares are issued and outstanding; and (ii) 5,000,000 shares of Preferred Stock, $0.001
par value per share, of which no shares are issued and outstanding; An additional 161,083,614 shares shall be issued pursuant to
the Company’s stock option plans, reserved for issuance pursuant to securities exercisable for, or convertible into or exchangeable
for shares of Common Stock. All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly
issued, fully paid and non-assessable. No shares of capital stock of the Company are subject to preemptive rights or any other
similar rights of the shareholders of the Company or any liens or encumbrances imposed through the actions or failure to act of
the Company. As of the effective date of this Agreement, (i) there are no outstanding options, warrants, scrip, rights to subscribe
for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments or rights of any character whatsoever
relating to, or securities or rights convertible into or exchangeable for any shares of capital stock of the Company or any of
its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares
of capital stock of the Company or any of its Subsidiaries that are not mentioned here, (ii) there are no agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to register the sale of any of its or their securities under the
1933 Act and (iii) there are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or
in any agreement providing rights to security holders) that will be triggered by the issuance of the Note or the Conversion Shares
that are not contained here. The Company has furnished to the Buyer true and correct copies of the Company’s Certificate
of Incorporation as in effect on the date hereof (“Certificate of Incorporation”), the Company’s By-laws, as
in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common
Stock of the Company and the material rights of the holders thereof in respect thereto. The Company shall provide the Buyer with
a written update of this representation signed by the Company’s Chief Executive on behalf of the Company as of the Closing
Date.

 

d.     Issuance
of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance
with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the
Company and will not impose personal liability upon the holder thereof. 

 

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e.     Acknowledgment
of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance
of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion
Shares upon conversion of the Note in accordance with this Agreement and that the Note is absolute and unconditional regardless
of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

f.     No
Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance
of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation
or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event
which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of
its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or
its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company
or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). Neither the Company
nor any of its Subsidiaries is in violation of its Certificate of Incorporation, By-laws or other organizational documents and
neither the Company nor any of its Subsidiaries is in default (and no event has occurred which with notice or lapse of time or
both could put the Company or any of its Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries has
taken any action or failed to take any action that would give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or by which
any property or assets of the Company or any of its Subsidiaries is bound or affected. The businesses of the Company and its Subsidiaries,
if any, are not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation of any
law, ordinance or regulation of any governmental entity. The Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing. Schedule 3 (f) sets forth any required consents, authorizations or orders of, or
filings or registrations with, any court, governmental agency, regulatory agency, self regulatory organization or stock market
or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement, to issue the Note,
or to issue the Conversion Shares upon conversion of the Note. All consents, authorizations, orders, filings and registrations
which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date
hereof. The Company is in violation of the listing requirements of the Over-the-Counter Bulletin Board (the “OTCBB”)
and does not reasonably anticipate that the Common Stock will be listed by the OTCBB in the foreseeable future. 

 

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g.    SEC
Documents; Financial Statements. The Company has not filed its reports, schedules, forms, statements and other documents required
to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934
Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and
schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred
to herein as the “SEC Documents”). As of their respective dates, the SEC Documents complied in all material respects
with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to
be amended or updated under applicable law (except for such statements as have been amended or updated in subsequent filings prior
the date hereof). As of their respective dates, the financial statements of the Company included in the SEC Documents complied
as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC
with respect thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles, consistently applied, during the periods involved and fairly present in all material respects the consolidated financial
position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations
and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).
Except as set forth in the financial statements of the Company included in the SEC Documents, the Company has no liabilities, contingent
or otherwise, other than (i) liabilities incurred in the ordinary course of business subsequent to March 31, 2012, and (ii) obligations
under contracts and commitments incurred in the ordinary course of business and not required under generally accepted accounting
principles to be reflected in such financial statements, which, individually or in the aggregate, are not material to the financial
condition or operating results of the Company. The Company is subject to the reporting requirements of the 1934 Act.

 

h.     Absence
of Certain Changes. Since February 28, 2012, there has been no material adverse change and no material adverse development
in the assets, liabilities, business, properties, operations, financial condition, results of operations, of the Company or any
of its Subsidiaries.

 

i.      Absence
of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such,
that could have a Material Adverse Effect. Schedule 3(i) contains a complete list and summary description of any pending or, to
the knowledge of the Company, threatened proceeding against or affecting the Company or any of its Subsidiaries, without regard
to whether it would have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing.

 

j.      Patents,
Copyrights, etc. The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights to use all patents,
patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service marks, service
names, trade names and copyrights (“Intellectual Property”) necessary to enable it to conduct its business as now
operated (and, as presently contemplated to be operated in the future); there is no claim or action by any person pertaining to,
or proceeding pending, or to the Company’s knowledge threatened, which challenges the right of the Company or of a Subsidiary
with respect to any Intellectual Property necessary to enable it to conduct its business as now operated (and, as presently contemplated
to be operated in the future); to the best of the Company’s knowledge, the Company’s or its Subsidiaries’ current
and intended products, services and processes do not infringe on any Intellectual Property or other rights held by any person;
and the Company is unaware of any facts or circumstances which might give rise to any of the foregoing. The Company and each of
its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of their Intellectual
Property. 

 

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k.     No
Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate or
other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party
to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse
Effect.

 

l.     Tax
Status. The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other tax
returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company
and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported
taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to
be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provisions
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company
know of no basis for any such claim. The Company has not executed a waiver with respect to the statute of limitations relating
to the assessment or collection of any foreign, federal, state or local tax. None of the Company’s tax returns is presently
being audited by any taxing authority, nor is the Company subject to any tax investigation by any governmental agency.

 

m.   Certain
Transactions. Except for arm’s length transactions pursuant to which the Company or any of its Subsidiaries makes payments
in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries could obtain from third
parties and other than the grant of stock options disclosed on Schedule 3(c), none of the officers, directors, or employees of
the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for services as employees,
officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director
or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer,
director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

n.    Disclosure.
All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement and provided to the
Buyer pursuant to Section 2(d) hereof and otherwise in connection with the transactions contemplated hereby is true and correct
in all material respects and the Company has not omitted to state any material fact necessary in order to make the statements made
herein or therein, in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred
or exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or
financial conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company
but which has not been so publicly announced or disclosed (assuming for this purpose that the Company’s reports filed under
the 1934 Act are being incorporated into an effective registration statement filed by the Company under the 1933 Act).

 

o.    Acknowledgment
Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the capacity
of arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges
that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this
Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective representatives
or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely
incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the Company’s
decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.

 

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p.     No
Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly
or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would
require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer
will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any
shareholder approval provisions applicable to the Company or its securities.

 

q.     No
Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction
fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

r.      Permits;
Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations, licenses,
permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate its
properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”), and there
is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of the Company
Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the Company
Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect. Since March 31, 2012, neither the Company nor any of its Subsidiaries has received
any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to
possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.

 

s.     Environmental
Matters.

 

(i)          There
are, to the Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of the Company,
no past or present violations of Environmental Laws (as defined below), releases of any material into the environment, actions,
activities, circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common law environmental
liability or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or similar federal,
state, local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice with respect to any of
the foregoing, nor is any action pending or, to the Company’s knowledge, threatened in connection with any of the foregoing.
The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection
of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the
environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder. 

 

    	9

    	 

    

 

(ii)         Other
than those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials are contained
on or about any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous Materials
were released on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries during the
period the property was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course of the Company’s
or any of its Subsidiaries’ business.

 

(iii)        There
are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries
that are not in compliance with applicable law.

 

t.     Title
to Property. The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(t) or such as would
not have a Material Adverse Effect. Any real property and facilities held under lease by the Company and its Subsidiaries are held
by them under valid, subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.

 

u.    Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company
and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. Upon written request the
Company will provide to the Buyer true and correct copies of all policies relating to directors’ and officers’ liability
coverage, errors and omissions coverage, and commercial general liability coverage.

 

v.    Internal
Accounting Controls. The Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient,
in the judgment of the Company’s board of directors, to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect
to any differences.

 

w.   Foreign
Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee or other person
acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company, used any
corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity;
made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds;
violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any bribe,
rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee. 

 

    	10

    	 

    

 

x.    Solvency.
The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e., its assets have a
fair market value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute
and matured) and currently the Company has no information that would lead it to reasonably conclude that the Company would not,
after giving effect to the transaction contemplated by this Agreement, have the ability to, nor does it intend to take any action
that would impair its ability to, pay its debts from time to time incurred in connection therewith as such debts mature. The Company
did not receive a qualified opinion from its auditors with respect to its most recent fiscal year end and, after giving effect
to the transactions contemplated by this Agreement, does not anticipate or know of any basis upon which its auditors might issue
a qualified opinion in respect of its current fiscal year.

 

y.     No
Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement
will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment
Company”). The Company is not controlled by an Investment Company.

 

z.      Breach
of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth
in this Section 2, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered
an Event of default under Section 3.4 of the Note.

 

3.          COVENANTS.

 

a.      Best
Efforts. The parties shall use their best efforts to satisfy timely each of the conditions described in Section 6 and 7 of
this Agreement.

 

b.      Form
D; Blue Sky Laws. Unless it believes it is exempt from any such filings, the Company agrees to file a Form D with respect to
the Securities as required under Regulation D and to provide a copy thereof to the Buyer promptly after such filing. The Company
shall, on or before the Closing Date, take such action as the Company shall reasonably determine is necessary to qualify the Securities
for sale to the Buyer at the applicable closing pursuant to this Agreement under applicable securities or “blue sky”
laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any
such action so taken to the Buyer on or prior to the Closing Date.

 

c.      Use
of Proceeds. The Company shall use the proceeds for general working capital purposes, including legal and accounting expenses
related to SEC filings.

 

d.      Financial
Information. Upon written request the Company agrees to send or make available the following reports to the Buyer until the
Buyer transfers, assigns, or sells all of the Securities: (i) within ten (10) days after the filing with the SEC, a copy of
its Annual Report on Form 10-K its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K; (ii) within one (1)
day after release, copies of all press releases issued by the Company or any of its Subsidiaries; and (iii) contemporaneously
with the making available or giving to the shareholders of the Company, copies of any notices or other information the Company
makes available or gives to such shareholders.

 

f. Stockholder Approval.
The Company will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including,
without limitation, calling a special meeting of stockholders to authorize additional shares to meet the Company’s obligations
under this Section 4 (f), in the case of an insufficient number of authorized shares, and using its best efforts to obtain stockholder
approval of an increase in such authorized number of shares.

 

    	11

    	 

    

 

g. Listing.
The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation
system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the
Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing
of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as the Buyer
owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCBB or any equivalent replacement exchange,
the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq SmallCap”), the New York Stock
Exchange (“NYSE”), or the American Stock Exchange (“AMEX”) and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”)
and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the OTCBB
and any other exchanges or quotation systems on which the Common Stock is then listed regarding the continued eligibility of the
Common Stock for listing on such exchanges and quotation systems.

 

h.
Corporate Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and
shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale
of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i) assumes
the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii)
is a publicly traded corporation whose Common Stock is listed for trading on the OTCBB, Nasdaq, Nasdaq SmallCap, NYSE or AMEX.

 

i.
No Integration. The Company shall not knowingly make any offers or sales of any security (other than the Securities) under
circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the
offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder
approval provision applicable to the Company or its securities.

 

j.
Breach of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other
remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default under Section 3.4 of the
Note.

 

k.
Failure to Comply with the 1934 Act. Within 60 days of Closing and thereafter so long as the Buyer beneficially owns the Note,
the Company shall comply with the reporting requirements of the 1934 Act; and the Company shall continue to be subject to the reporting
requirements of the 1934 Act.

 

4.          RESERVED

 

5.          Conditions
to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue the Note to the Buyer at the Closing
is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto, provided that these
conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion: 

 

    	12

    	 

    

 

a.     The
Buyer shall have executed this Agreement and delivered the same to the Company.

 

b.     The
Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

c.     The
representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and as
of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and
the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required
by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.

 

d.     No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

6.          Conditions
to The Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to loan the Purchase Price to the Company
at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that
these conditions are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion: 

a.     The
Company shall have executed this Agreement and delivered the same to the Buyer.

 

b.     The
Company shall have delivered to the Buyer the duly executed Note (in such denominations as the Buyer shall request) in accordance
with Section 1(b) above.

 

c.     RESERVED

 

d.     The
representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as
of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date), and
the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. The Buyer
shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as of the Closing
Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including, but not limited
to certificates with respect to the Company’s Certificate of Incorporation, By-laws and Board of Directors’ resolutions
relating to the transactions contemplated hereby.

 

e.     No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

f.      No
event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but not
limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934 Act
reporting obligations.

  

    	13

    	 

    

 

g.     The
Conversion Shares shall have been authorized for quotation on the OTCBB and trading in the Common Stock on the OTCBB shall not
have been suspended by the SEC or the OTCBB.

 

 

7.          Governing
Law; Miscellaneous.

 

a.     Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey without regard
to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New Jersey or in the federal courts located in the state. The parties
to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Buyer
waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and
costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or
unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it
may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove
invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for 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 other manner permitted by law.

 

b.     Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party.

 

c.     Headings.
The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of,
this Agreement.

 

d.     Severability.
In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision hereof.

 

e.     Entire
Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer. 

 

    	14

    	 

    

 

f.      Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

 

If to the
Company, to:

Arkados
Group, Inc.

Attn: Terrence
DeFranco

211 Warren
Street, Suite 320

Newark,
NJ 07103

 

With a copy
by fax only to (which copy shall not constitute notice):

 

Kenneth
R. Vennera

General
Counsel

211 Warren
Street, Suite 320

Newark,
NJ 07103

Fax: 610-272-1562

 

If to
the Buyer:

 

With a copy
by fax only to (which copy shall not constitute notice):

Tai Jee Pan

15625 NW Perimeter
Drive

Beaverton, Oregon 97006

Fax: 503-645-7999

 

Each
party shall provide notice to the other party of any change in address.

 

g.     Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other. Notwithstanding the foregoing, subject to Section 2(f), the Buyer may assign its rights hereunder to
any person that purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as that
term is defined under the 1934 Act, without the consent of the Company.

 

h.     Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 

 

    	15

    	 

    

 

i.      Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the
closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to
indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result
of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth
in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

 

j.     Publicity.
The Company, and the Buyer shall have the right to review a reasonable period of time before issuance of any press releases, SEC,
OTCBB or FINRA filings, or any other public statements with respect to the transactions contemplated hereby; provided, however,
that the Company shall be entitled, without the prior approval of the Buyer, to make any press release or SEC, OTCBB (or other
applicable trading market) or FINRA filings with respect to such transactions as is required by applicable law and regulations
(although the Buyer shall be consulted by the Company in connection with any such press release prior to its release and shall
be provided with a copy thereof and be given an opportunity to comment thereon).

 

k.    Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

l.     No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

m.   Remedies.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

[SIGNATURE PAGE FOLLOWS]

 

    	16

    	 

    

 

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

 

COMPANY:

ARKADOS GROUP, INC.

 

	By:	/s/ Terrence DeFranco	 
	 	Terrence DeFranco	 
	 	President and Chief Executive Officer	 

 

	BUYER:	 
	RICHMAKE INTERNATIONAL LIMITED	 
	 	 
	By: 	/s/ Huang Chang-Ching	 
	Name: 	Huang Chang-Ching	 
	 	President	 

  

AGGREGATE SUBSCRIPTION AMOUNT:

 

	Aggregate Principal Amount of Note:	$200,000
	 	 
	Aggregate Purchase Price:	$200,000

 

    	17CONSULTING AGREEMENT

 

This Consulting Agreement (the “Agreement”),
effective as of November 20, 2013, is entered into by and between Arkados Group, Inc., a Delaware corporation (the “Company”),
and Constellation Asset Advisors, Inc. a Nevada Corporation (the “Consultant”).

 

RECITALS

  

WHEREAS, Company is a publicly-held
corporation with its common stock (the “Common Stock”) quoted on the OTC BB Market (more specifically, as of the date
hereof, pink sheets) under the symbol “AKDS”; and

 

WHEREAS, Consultant is in the business
of providing consulting services to publicly traded companies with respect to developing business plans, personnel planning, marketing,
public relations, shareholder relations, among other things; and

 

WHEREAS, Consultant has foregone
significant opportunities to accept this engagement and the Company and Consultant will derive substantial benefits from the relationship
contemplated by this Agreement; and

 

WHEREAS, Company desires to engage
the services of Consultant, and Consultant desires to accept such services.

 

NOW THEREFORE, in consideration
of the foregoing and the promises and the mutual covenants and agreements hereinafter set forth, the parties hereto, intending
to be legally bound, hereby agree as follows:

 

1.    Term of Consultancy. The Company
hereby engages the Consultant to provide the Consulting Services to the Company, and the Consultant agrees to perform the Consulting
Services (as hereinafter defined) for the Term (as hereinafter defined). The term of this Agreement shall commence on the date
of this Agreement and shall continue until the close of business on the day immediately preceding the first (1st) anniversary
of this Agreement, unless earlier terminated in accordance with this Agreement (the “Term”).

 

2.     Engagement/Duties/Status of Consultant.

 

2.1.  Duties. The Consultant
agrees that it will provide, through its officers and employees, the following specified consulting services (collectively, the
“Consulting Services”), as may be requested by the Chief Executive Officer (“CEO”) of the Company from
time to time (and wherein, any service requires the direction or approval of the Company such direction or approval shall come
from the CEO of the Company), during the term specified in Section 1:

 

(a) Consult and assist
the Company in developing and implementing appropriate plans and means for presenting the Company and its business plans, strategy
and personnel to the financial community, establishing an image for the Company in the financial community, and creating the foundation
for subsequent financial public relations efforts;

 

(b) Introduce the Company to the financial
community;

 

Execution Version

 

    	 

    	 

    

  

(c) With the cooperation
of the Company, maintain an awareness during the term of this Agreement of the Company's plans, strategy and personnel, as they
may evolve during such period, and consult and assist the Company in communicating appropriate information regarding such plans,
strategy and personnel to the financial community;

 

(d) Assist and consult
the Company with respect to its (i) relations with stockholders, (ii) relations with brokers, dealers, analysts and other investment
professionals, and (iii) financial public relations generally;

 

(e) Perform the functions
generally assigned to stockholder relations and public relations departments in major corporations, including responding to telephone
and written inquiries (which may be referred to the Consultant by the Company); preparing press releases for the Company with the
Company's involvement and approval of press releases, reports and other communications with or to shareholders, the investment
community and the general public; consulting with respect to the timing, form, distribution and other matters related to such releases,
reports and communications; and, at the Company’s request and subject to the Company’s securing its own rights to the
use of its names, marks, and logos, consulting with respect to corporate symbols, logos, names, the presentation of such symbols,
logos and names, and other matters relating to corporate image;

 

(f) Upon the Company's
direction and approval, disseminate information regarding the Company to shareholders, brokers, dealers, other investment community
professionals and the general investing public;

 

(g) Upon the Company's
approval, conduct meetings, in person or by telephone, with brokers, dealers, analysts and other investment professionals to communicate
with them regarding the Company's plans, goals and activities, and assist the Company in preparing for press conferences and other
forums involving the media, investment professionals and the general investment public;

 

(h) At the Company's
request, review business plans, strategies, mission statements budgets, proposed transactions and other plans for the purpose of
advising the Company of the public relations implications thereof; and,

 

(i) Otherwise perform
as the Company's consultant for public relations and relations with financial professionals.

 

2.2  Consultant hereby
promises to perform and discharge faithfully the Consulting Services and such other responsibilities which may be assigned to the
Consultant from time to time by the officers and duly authorized representatives of the Company in connection with the conduct
of the Consulting Services provided such activities are in compliance with applicable securities laws and regulations. The Company
and Consultant acknowledge and agree that Consultant's satisfactory performance of the Consulting Services and its other duties
hereunder shall not be measured by the price of the Common Stock, or the trading volume of the Common Stock at any time throughout
the Term;

 

2.2. Although no specific
hours-per-day requirement will be required, throughout the Term, the Consultant shall devote sufficient time to satisfactorily
provide the Consulting Services to the Company in a diligent, thorough and professional manner.

  

Execution Version

 

    	 

    	 

    

 

2.3.  Consultant's engagement
pursuant to this Agreement shall be as independent contractor, and not as an employee, officer or other agent of the Company. Neither
party to this Agreement shall represent or hold itself out to be the employer or employee of the other. Consultant further acknowledges
the consideration provided hereinabove is a gross amount of consideration and that the Company will not withhold from such consideration
any amounts as to income taxes, social security payments or any other payroll taxes. All such income taxes and other such payment
shall be made or provided for by Consultant and the Company shall have no responsibility or duties regarding such matters. Neither
the Company nor Consultant possesses any authority to bind the other in any manner without the express written consent of the other
to be so bound.

 

2.4.  The Company has
entered into this Agreement with Consultant and not any individual member or employee of Consultant, and, as such, Consultant will
not be deemed to have breached this Agreement if any member, officer or director of Consultant leaves the firm or dies or becomes
physically unable to perform any meaningful activities during the term of the Agreement, provided the Consultant otherwise performs
its obligations under this Agreement.

 

3.    Compensation. As full and complete
compensation for providing the Consulting Services, the Consultant shall receive the following compensation.

 

3.1  Cash payment. Upon
execution of the Agreement by both parties, a payment to Consultant in the amount of nine thousand dollars ($9,000.00). Wire instructions
will be provided under separate cover.

 

3.2. Compensation Shares
and Warrants. Within ninety (90) days of execution of this Agreement by both parties, the Company shall issue Consultant (i) three
million (3,000,000) shares of common stock of the Company (the “Compensation Shares”) and warrants described below
in the form attached hereto as Exhibit “A” (the “Warrants’).

 

		a.	One million (1,000,000) shares of common stock of the
Company at an exercise price of $0.10 per share;

		b.	One million (1,000,000) shares of common stock of the
Company at an exercise price of $0.15 per share; and

		c.	One million (1,000,000) shares of common stock of the
Company at an exercise price of $0.20 per share.

 

In the event that the Company terminates
this Agreement within ninety (90) days from the Effective Date, for any reason, the Company shall not be obligated to issue the
above referenced Warrants to Consultant.

 

3.3  The Compensation
Shares are being issued by the Company to Consultant as compensation for Consultant’s performance hereunder and therefore
shall be nonrefundable, non-apportionable, and non-ratable. The Company acknowledges that a disproportionately large amount of
the effort to be expended and the costs to be incurred by the Consultant and the benefits to be received by the Company are expected
to occur within or shortly after the first ninety days (90) of the effectiveness of this Agreement and that Compensation Shares
are not a prepayment for future services of Consultant.

 

Execution Version

 

    	 

    	 

    

 

3.4  The Compensation Shares (and any further
shares issuable upon exercise of the Warrants) pursuant to this Agreement shall be issued in the name of “Constellation Asset
Advisors, Inc.” (Tax ID # 27-4601233).

 

3.5.  In the event the
Company is acquired in whole or in part, or all or substantially all of the Company’s assets are merged into or with another
entity during the Term, Consultant shall not have any obligation to redeem all or any portion of the Compensation Shares or the
Warrants.

 

3.6.  The Company hereby
warrants that the Compensation Shares and the shares issuable upon exercise of the Warrants, shall be validly issued, fully paid
and non-assessable and that the issuance to Consultant has been duly authorized by the Company’s board of directors.

 

3.7.  Consultant acknowledges
that neither the Compensation Shares, the Warrants, nor any shares issuable upon exercise of the Warrants will not been registered
under the Securities Act of 1933, and accordingly are “restricted securities” within the meaning of Rule 144 of the
Act. As such, the Compensation Shares (and shares issuable upon exercise of the Warrants) shall not be resold or transferred unless
the Company has received an opinion of counsel reasonably satisfactory to the Company that such resale or transfer is exempt from
the registration requirements of that Act.

 

3.8.  Consultant represents and warrants to
the Company, that:

 

(a)  Consultant has been
afforded the opportunity to ask questions of and receive answers from duly authorized officers or other representatives of the
Company concerning an investment in the Compensation Shares, the Warrants and shares issuable upon exercise of the Warrants, and
any additional information which the Consultant has requested.

 

(b)  Consultant has had
experience in investments in restricted and publicly traded securities, and Consultant has had experience in investments in speculative
securities and other investments that involve the risk of loss of investment. Consultant acknowledges that an investment in the
Compensation Shares, the Warrants, as well as shares issuable upon exercise of the Warrants, is speculative and involves the risk
of loss. Consultant has the requisite knowledge to assess the relative merits and risks of this investment without the necessity
of relying upon other advisors, and Consultant can afford the risk of loss of his entire investment in the Compensation Shares,
the Warrants, and any shares issuable upon exercise of the Warrants. Consultant is (i) an accredited investor, as that term is
defined in Regulation D promulgated under the Securities Act of 1933, and (ii) a purchaser described in Section 25102 (f) (2) of
the California Corporate Securities Law of 1968, as amended.

 

(c)  Consultant is receiving
the Compensation Shares and the Warrants for the Consultant’s own account for long-term investment and not with a view toward
resale or distribution thereof except in accordance with applicable securities laws.

  

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4.Acquisition “Finder's Fee”.

 

4.1. Consultant may,
from time to time, introduce Company, or its affiliates or nominees, to an acquisition candidate either directly or indirectly
through another intermediary not already having a preexisting relationship (as identified to Consultant by Company) with the Company
that Company, or its nominee or affiliate, ultimately acquires or causes the completion of such acquisition. In the event that
such acquisition is completed, Company shall pay Consultant a “finder's fee” in the amount of 7% of total gross consideration
provided by such acquisition, such fee to be payable in cash (the “Acquisition Finder’s Fee”) within seven (7)
business days of the completion of such transaction. The Acquisition Finder’s Fee shall be paid in addition to any fees or
other compensation payable by Company to any other intermediary.

 

4.2 The Company acknowledges
and agrees that Consultant is not, and does not, hold itself out be a Broker/Dealer, but is rather acting as a “finder”
assisting the Company in procuring acquisition candidates.

 

4.3 Any obligation to
pay a “Finder’s Fee” hereunder shall survive the merging, acquisition, or other change in the form of entity
of the Company and to the extent it remains unfulfilled shall be assigned and transferred to any successor to the Company.

 

4.4 The Company, and
not Consultant, is responsible to perform any and all due diligence on any such acquisition candidate introduced to it by Consultant
under this Agreement prior to Company closing on any acquisition. Consultant hereby covenants and agrees that it shall not introduce
to the Company any parties about which Consultant has any prior knowledge of questionable, unethical or illicit activities.

 

4.5 Consultant shall
notify Company, in writing, of any presentations it makes for potential acquisitions on behalf of the Company within three (3)
days of such presentation. If Company has a pre-existing relationship with such acquisition identified by Consultant, then Company
shall notify Consultant, in writing, of such pre-existing relationship within twenty-four (24) hours of the Company’s
receipt of Consultant’s facsimile or email to Company.

 

5.  Non-Competition; Confidential Information; Public Statements.

 

5.1
Non-Competition/Non-Solicitation. The Consultant and the Company recognize that due to the Consultant's engagement
hereunder and the relationship of the Consultant to the Company, the Consultant will have access to and will acquire, and may
assist in developing, confidential and proprietary information relating to the assets, business and operations of the Company
and its affiliates, including, without limiting the generality of the foregoing, formulations, and other information with respect
to, among other things, the Company's present and prospective techniques, systems, customers, accounts, sales and marketing methods.
The Consultant acknowledges that such information has been and will continue to be of central importance to the business of the
Company and that disclosure of it to, or its use by, others could cause substantial loss to the Company. The Consultant and the
Company also recognize that an important part of the Consultant's duties may be to develop goodwill for the Company through personal
contact with customers, agents and others having business relationships with the Company. The Consultant accordingly agrees that,
at all times during the Term and for two (2) years after expiration or earlier termination of his employment, the Consultant shall
not, in any capacity whatsoever, whether directly or indirectly, on its own behalf, or on behalf of any other person, firm, partnership,
corporation, limited liability company, association or other entity (collectively, "Person"):

  

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(a)  own, manage, invest,
participate, engage or become employed in any activity which comprises or is similar to the business of the Company, including,
but not limited to, any business which constitutes a “software and hardware design and development company involved in machine
to machine communications,” anywhere in the State of New Jersey, the State of California or such other States in which the
Company is conducting business as of the date of such termination;

 

(b)  suggest to, induce
or persuade any vendor or customer of the Company to discontinue doing business, with, or to change the terms or conditions of
such relationship with the Company or otherwise disparage, disrupt or disturb the relationship of the Company with such vendor
or customer;

 

(c)  suggest to, induce
or persuade any vendor or customer of the Company to do business with any other Person which conducts a business competitive with
the Business;

 

(d)  suggest to, induce,
solicit or persuade any employee or consultant of the Company to leave the employ or engagement of the Company, whether or not
such inducement involves the Consultant directly or indirectly hiring or engaging or attempting to hire or engage such employee
or consultant of the Company at the time of such solicitation, whether on its own behalf or on behalf of any other Person, whether
or not the Consultant has a direct or indirect remunerative or other interest, as a proprietor, partner, coventurer, creditor,
stockholder, director, officer, employee, agent, representative or otherwise in such Person;

 

5.2.  Confidential Information.

 

(a)  At all times during
the Term and at all times following termination thereof, the Consultant shall keep confidential and not disclose, directly or indirectly,
and shall not use for the benefit of itself or any other Person in connection with and furtherance of the business and the affairs
of the Company, any Confidential Information relating to any aspect of the business of the Company which is now known or which
may become known to Consultant. For purposes of this Agreement, "Confidential Information" includes any trade secrets
or confidential or intellectual property or proprietary information whether in written, oral or other form which is unique, confidential
or proprietary to the Company, its affiliates, customers or other persons who disclose such information to the Company in confidence.

 

(b) The Company's failure to mark
any Confidential Information as confidential, proprietary or otherwise shall not affect its status as Confidential Information
hereunder.

 

(c)  The Consultant
acknowledges that all Confidential Information is the property of the Company, its affiliates, customers or other persons who disclose
such information to the Company in confidence, and upon expiration of the Term or earlier termination of this Agreement or earlier
at the request of the Company, the Consultant shall deliver to the Company all records, notes, reference items, sketches, drawings,
memoranda, records, and other documents or materials, and all copies thereof (including but not limited to such items stored by
computer memory or other media) which relate to or in any way incorporate the Confidential Information which are in the Consultant's
possession or under his control.

 

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(d) The Consultant agrees that
should third parties request to submit Confidential Information to them pursuant to subpoena, summons, search warrant or governmental
order, the Consultant will notify the Company immediately upon receipt of such request, and thereafter deliver written notice of
the request to the Company no later than one business day after receipt. If the Company objects to the release of the Confidential
Information, the Consultant will permit counsel chosen by the Company to represent the Consultant in order to resist release of
the Confidential Information. The Company will pay the Consultant for any expenses incurred in connection with resisting the release
of the Confidential Information.

 

5.3 Ownership of Developed Information.

 

(a)  The Consultant covenants
and agrees that all right, title and interest in any Developed Information, as defined below, shall be and remain the exclusive
property of the Company. The Consultant agrees to make prompt and complete disclosure from time to time to the Company of all Developed
Information. The Consultant agrees to immediately disclose to the Company all Developed Information, and to assign to the Company
any right, title and interest which he may have in the Developed Information. The Consultant agrees to execute any instruments
and to do all things reasonably requested by the Company, both during and after the Term, to vest the Company with all ownership
rights in the Developed Information. If any Developed Information can be protected by federal copyright registration, patent registration
or trademark registration shall be owned solely, completely and exclusively by the Company, and any rights the Consultant may have
in any such Developed Information shall be deemed to be irrevocably assigned and transferred completely and exclusively to the
Company by the Consultant.

 

(b)  For purposes of this
Agreement, "Developed Information" shall mean all trade secrets, confidential or other proprietary information conceived,
developed, designed, devised or otherwise created, modified or improved by the Consultant or with respect to which Consultant receives
or receives access to, in whole or in part, in connection with the performance of the Consulting Services for the Company, its
customers or other persons who disclose such information to the Company in confidence hereunder during the Term or resulting from
the Consultant's use of or access to the Company's facilities or resources, including its Confidential Information. The "Developed
Information" shall also include, without limitation, the following materials and information, whether or not reduced to writing,
whether now or hereafter existing, whether or not patentable or protectable by copyright or trademark:

 

(i)  Marketing techniques
and arrangements, purchasing information, pricing policies, quoting procedures, information processes, financial information, customer
and prospect names and requirements, employee, customer, supplier and distributor data and other materials or information relating
to the business of the Company and/or the manner in which the Company does business;

  

Execution Version

 

    	 

    	 

    

 
 

(ii)  Discoveries, concepts, and ideas, including without limitation, processes, formulas, techniques, know how, designs,
drawings, and specifications relating to the business of the Company and/or the manner in which the Company does business; 

 

(iii)   Formulations for
any products of the Company, including, but not limited to, software, databases, technology infrastructures and similar information;

 

(iv)  Any other materials
or information related to the business or activities of the Company which are not generally known to others engaged in similar
businesses or activities; and

 

(v)  All ideas which
are derived from or related to the Consultant's access to or knowledge of any of the materials or information described in this
Section 3(b)(ii).

 

5.4.   Acknowledgment.
The Consultant acknowledges that Consultant has carefully read and reviewed the restrictions set forth in this Section 5, and having
done so Consultant agrees that those restrictions, including but not limited to the time period and geographical areas of restriction,
are fair and reasonable and are reasonably required for the protection of the legitimate business interests of the Company.

 

5.5  Invalidity, Etc. If
any covenant, provision, or agreement contained in any part of this Section 5 is found by a court having jurisdiction to be unreasonable
in duration, geographic scope or character of restrictions, the covenant, provision or agreement shall not be rendered unenforceable
thereby, but rather the duration, geographical scope or character of restrictions of such covenant, provision or agreement shall
be deemed reduced or modified with retroactive effect to render such covenant or agreement reasonable and such covenant or agreement
shall be enforced as modified. If the court having jurisdiction will not review the covenant, provision or agreement, the parties
shall mutually agree to a revision having an effect as close as permitted by law to the provision declared unenforceable. The Consultant
agrees that if a court having jurisdiction determines, despite the express intent of the Consultant, that any portion of the restrictive
covenants contained in this Section 5 are not enforceable, the remaining provisions shall be valid and enforceable.

 

5.6   Equitable Relief. The
Consultant recognizes and acknowledges that if Consultant breaches the provisions of this Section 5, damages to the Company may
be difficult if not impossible to ascertain, and because of the immediate and irreparable damage and loss that may be caused to
the Company for which it would have no adequate remedy, it is therefore agreed that the Company, in addition to and without limiting
any other remedy or right it may have, shall be entitled to have an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and the Consultant hereby waives any and all defenses Consultant may have on the grounds
of lack of jurisdiction or competence of a court to grant such an injunction or other equitable relief. The existence of this right
shall not preclude the applicability or exercise of any other rights and remedies at law or in equity which the Company may have.

  

Execution Version

 

    	 

    	 

    

 

5.7.   Accounting
for Profits. The Consultant covenants and agrees that if Consultant violates any covenants or agreements under this Agreement,
the Company shall be entitled to an accounting and repayment of all profits, compensations, royalties, commissions, remuneration
or benefits which directly or indirectly shall have been realized or may be realized relating to, growing out of or in connection
with any such violations; such remedy shall be in addition to and not in limitation of any injunctive relief or other rights or
remedies to which the Company is or may be entitled at law or in equity or otherwise under this Agreement.

 

5.8.  Public
Statements. The Consultant and the Company recognize that, due to the relationship of the Consultant and the Company and such
relationship's susceptibility to public comment which may be injurious to the Consultant or the Company, or both, it is necessary
for the protection of both parties that neither party make any disparaging public statements with respect to each other concerning
the terms of this Agreement and the arrangements made pursuant hereto. The Consultant and the Company accordingly agree that neither
the Consultant nor the Company will make any disparaging public statements with respect to each other or concerning the terms
of this Agreement and the arrangements made pursuant hereto at any time following the termination of this Agreement without the
prior written approval of the other party.

 

6.  Non-Assignability of Services.
The right to receive the Consulting Services shall not be assigned by Company to any entity with which Company merges or which
acquires the Company or substantially all of its assets. In the event of such merger or acquisition, all compensation payable to
Consultant hereunder shall remain due and payable by Company until paid in full, and any compensation received by the Consultant
hereunder shall be retained by Consultant without any reduction or pro-rating, and the Compensation Shares shall be and shall remain
fully paid and non-assessable. Notwithstanding the foregoing, in the event of any merger, acquisition, or similar change of form
of entity, any successor of the Company shall perform all of the Company’s obligations hereunder, including the provision
and transfer of all compensation herein, and the preservation of the value thereof consistent with the rights granted to Consultant
by the Company herein.

 

7.  Expenses. Consultant shall be
responsible for all the expenses in incurs in connection with the performance of its obligations hereunder, other than extraordinary
expenses as approved by the Company in its sole discretion prior to Consultant incurring such extraordinary expenses.

 

8.  Indemnification. The Company
warrants and represents that all oral communications, written documents or materials furnished to Consultant by the Company with
respect to financial affairs, operations, profitability and strategic planning of the Company are accurate and Consultant may rely
upon the accuracy thereof without independent investigation. The Company shall protect, indemnify and hold Consultant harmless
against any and all claims or litigation including any damages, liability, cost and reasonable attorneys’ fees incurred in
connection therewith resulting from Consultant's communication or dissemination of any said information, documents or materials
provided by the Company; provided, however that the Company shall not indemnify Consultant for any claims or litigation arising
from or in connection with Consultant's communication, use or dissemination of any information not provided, approved or authorized
by the Company.

  

Execution Version

 

    	 

    	 

    

 

9.   Representations.

 

9.1.  Consultant represents
that: (a) Consultant is not required to maintain any licenses and registrations under any federal or state regulations in order
to perform any of its obligations hereunder; (b) the performance of Consultant’s obligations hereunder will not violate any
rule or provision of any regulatory agency having jurisdiction over Consultant; (c) Consultant and its officers and directors are
not the subject of any investigation, claim, decree or judgment involving any violation of the SEC or securities laws; and (d)
Consultant is not a securities Broker Dealer or a registered investment advisor.

 

9.2.  Company represents
that, to the best of its knowledge: (a) Company has not violated any rule or provision of any regulatory agency having jurisdiction
over the Company; and (b) Company is not the subject of any investigation, claim, decree or judgment involving any violation of
the SEC or securities laws.

 

10.   Legal Representation. The Company
acknowledges that it has been represented by independent legal counsel in the preparation of this Agreement. Consultant represents
that it has consulted with independent legal counsel and/or tax, financial and business advisors, to the extent the Consultant
deemed necessary.

 

11.   Attorneys’ Fees. If any
legal action or any arbitration or other proceeding is brought for the enforcement or interpretation of this Agreement, or because
of an alleged dispute, breach, default or misrepresentation in connection with or related to this Agreement, the successful or
prevailing party shall be entitled to recover reasonable attorneys' fees and other costs in connection with that action or proceeding,
in addition to any other relief to which it or they may be entitled.

 

12.   Waiver. The waiver by either party of a breach of
any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such
other party.

 

13.   Notices. All notices, requests,
and other communications hereunder shall be deemed to be duly given if sent by U.S. mail, postage prepaid, addressed to the other
party at the address as set forth herein below:

 

	To the Company: 	Arkados Group, Inc.
	 	Terrence DeFranco, CEO
	 	211 Warren Street
	 	Suite 320
	 	Newark, New Jersey 07103
	 	 
	With a copy to:  	Kenneth R. Vennera, Esq., General Counsel
	 	 
	To the Consultant: 	Constellation Asset Advisors, Inc.
	 	Administrative Office
	 	P.O. Box 5557
	 	Incline Village, NV  89450
	 	Attn:  Jens Dalsgaard, President

 

Execution Version

 

    	 

    	 

    

 

Either party may change the foregoing address to which notices
for it shall be addressed by providing notice of such change to the other party in the manner set forth in this paragraph.

 

14.   Choice of Law, Jurisdiction and
Venue. This Agreement has been executed and shall be performed in the State of New Jersey. This Agreement shall be governed
by, construed and enforced in accordance with the laws of the State of New Jersey without giving effect to the conflicts of laws
principles thereof. The parties hereto hereby irrevocably consent to personal and subject matter jurisdiction of any court of competent
jurisdiction within the State of New Jersey.

 

15.   Binding Arbitration. Any controversy
or claim arising out of or relating to this Agreement, or the alleged breach thereof, or relating to Consultant's activities or
remuneration under this Agreement, shall be settled by binding arbitration in accordance with the applicable rules of the American
Arbitration Association, and judgment on the award rendered by the arbitrator(s) shall be binding on the parties and may be entered
in any court having jurisdiction as provided by Paragraph 14 herein.

 

16.   Complete Agreement. This Agreement
contains the entire agreement of the parties relating to the subject matter hereof. This Agreement and its terms may be changed
only by an agreement in writing signed by both parties.

 

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

 

	 	COMPANY:
	 	 
	 	ARKADOS GROUP, INC.
	 	 
	 	/s/ Terrence DeFranco
	 	Terrence DeFranco, CEO
	 	11/20/2013
	 	 
	 	CONSULTANT:
	 	 
	 	CONSTELLATION ASSET ADVISORS, INC.
	 	 
	 	/s/ Jens Dalsgaard
	 	Jens Dalsgaard, President
	 	11/20/2013

  

Execution Version

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