ARKADOS GROUP, INC. COMMON STOCK PURCHASE OPTION

Exhibit 4.16

No. ____________

ARKADOS GROUP, INC.

COMMON STOCK PURCHASE OPTION

THE OPTION REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AS SET FORTH IN THIS CERTIFICATE. THIS OPTION MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN OPINION OF COUNSEL, REASONABLY ACCEPTABLE TO COUNSEL FOR THE COMPANY, TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER, OR DISPOSITION MAY BE EFFECTUATED WITHOUT REGISTRATION UNDER THE ACT.

OPTION CERTIFICATE

THIS OPTION CERTIFICATE (the "Option Certificate") certifies that for value received, _________________________ (the "Holder"), is the owner of this option (the "Option"), which entitles the Holder to purchase at any time on or before the Expiration Date (as defined below) __________________________________ (________________) shares (the "Option Shares") of fully paid non-assessable shares of the common stock (the "Common Stock") of ARKADOS GROUP, INC., a Delaware corporation (the "Company"), at a Exercise Price per Option Share of Four Cents ($0.04) (the "Exercise Price"), in lawful money of the United States of America by bank or certified check, subject to adjustment as hereinafter provided or by cashless exercise as provided in Section 2(a). This Option is issued for services rendered by Holder to Company.

This Option shall entitle the Holder to purchase the Option Shares at the Exercise Price. The Exercise Price and the number of Option Shares evidenced by this Option Certificate are subject to adjustment as provided in Article 6.

(a)      This Option is exercisable, at the option of the Holder, at any time after the date of issuance and on or before the Expiration Date (as defined below) by (i) delivering to the Company written notice of exercise (the "Exercise Notice"), stating the number of Option Shares to be purchased thereby, accompanied by bank or certified check payable to the order of the Company for the Option Shares being purchased or (ii) presentation and surrender of this Option to the Company at its principal executive offices with a written notice of the holder's intention to effect a cashless exercise, including a calculation of the number of shares of Common Stock to be issued upon such exercise in accordance with the terms hereof (a "Cashless Exercise. In the event of a Cashless Exercise, in lieu of paying the Exercise Price in cash, the holder shall surrender this Option for that number of shares of Common Stock determined by multiplying the number of Option Shares to which it would otherwise be entitled by a fraction, (x) the numerator of which shall be the difference between the closing market price per share of the Common Stock on the last business day prior to the date the exercise is delivered to the Company (the “Current Market Price”) and the Exercise Price and (y) the denominator of which shall be the Current Market Price per share of Common Stock. Within ten (10) business days of the Company's receipt of the Exercise Notice accompanied by the consideration for the Option Shares being purchased, or a Cashless Exercise, the Company shall instruct its transfer agent to issue and deliver to the Holder a certificate representing the Option Shares being purchased. In the case of exercise for less than all of the Option Shares represented by this Option Certificate, the Company shall cancel this Option Certificate upon the surrender thereof and shall execute and deliver a new Option Certificate for the balance of such Option Shares.

(b)      Expiration. The term "Expiration Date" shall mean 5:00 p.m., New York time, on the tenth (10^th) anniversary of the date set forth in the signature block of this Option or if such date in the State of New York shall be a holiday or a day on which banks are authorized to close, then 5:00 p.m., New York time, the next following day which in the State of New York is not a holiday or a day on which banks are authorized to close.

(a)      Restrictions. This Option, and the Option Shares or any other security issuable upon exercise of this Option may not be assigned, transferred, sold, or otherwise disposed of unless (i) there is in effect a registration statement under the Act covering such sale, transfer, or other disposition or (ii) the Holder furnishes to the Company an opinion of counsel, reasonably acceptable to counsel for the Company, to the effect that the proposed sale, transfer, or other disposition may be effected without registration under the Act, as well as such other documentation incident to such sale, transfer, or other disposition as the Company's counsel shall reasonably request.

(b)      Legend. Any Option Shares issued upon the exercise of this Option shall bear substantially the following legend:

“The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended. The shares have been acquired for investment and may not be offered, sold or otherwise transferred in the absence of an effective registration statement and with respect to the shares or an exemption from the registration requirements of said act that is then applicable to the shares, as to which a prior opinion of counsel acceptable to the issuer or transfer agent may be required.”

The Company covenants that it will at all time reserve and keep available out of its authorized Common Stock, solely for the purpose of issuance upon exercise of this Option, such number of shares of Common Stock as shall then be issuable upon the exercise of this Option. The Company covenants that all shares of Common Stock which shall be issuable upon exercise of this Option shall be duly and validly issued and fully paid and non-assessable and free from all taxes, liens, and charges with respect to the issue thereof.

If the Holder loses this Option, or if this Option is stolen, destroyed or mutilated, the Company shall issue an identical replacement Option upon the Holder's delivery to the Company of a customary agreement to indemnify the Company for any losses resulting from the issuance of the replacement Option.

(i)      take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend payable in, or other distribution of, additional shares of Common Stock,

(ii)      subdivide its outstanding shares of Common Stock into a larger number of shares of Common Stock, or

(iii)      combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock,

then (A) the number of shares of Common Stock for which this Option is exercisable into immediately after the occurrence of any such event shall be adjusted to equal the number of shares of Common Stock which a record holder of the same number of shares of Common Stock for which this Option is exercisable into immediately prior to the occurrence of such event would own or be entitled to receive after the happening of such event, and (B) the Exercise Price shall be adjusted to equal (x) the current Exercise Price immediately prior to the adjustment multiplied by the number of shares of Common Stock for which this Option is exercisable into immediately prior to the adjustment divided by (y) the number of shares of Common Stock for which this Option is exercisable into immediately after such adjustment.

(b)        Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Exercise Price, the Company, at its expense, shall promptly compute such adjustment or readjustment in accordance with the terms hereof and prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of the Holder, furnish or cause to be furnished to such holder a like certificate setting forth (i) such adjustments and readjustments, (ii) the Exercise Price at the time in effect for this Option and (iii) the number of shares of Common Stock and the amount, if any, or other property which at the time would be received upon the exercise of this Option.

(c)        Notices of Record Date. In the event of any fixing by the Company of a record date for the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend) or other distribution, any shares of Common Stock or other securities, or any right to subscribe for, purchase or otherwise acquire, or any option for the purchase of, any shares of stock of any class or any other securities or property, or to receive any other right, the Company shall mail to the Holder at least thirty (30) days prior to the date specified therein, a notice specifying the date on which any such record is to be taken for the purpose of such dividend, distribution or rights, and the amount and character of such dividend, distribution or right.

(d)        Merger, Consolidation, etc. In case of any capital reorganization or any reclassification of the capital stock of the Company or in case of the consolidation or merger of the Company with another corporation (or in the case of any sale, transfer, or other disposition to another corporation of all or substantially all the property, assets, business, and goodwill of the Company), the Holder of this Option shall thereafter be entitled to purchase the kind and amount of shares of capital stock which this Option entitled the Holder to purchase immediately prior to such capital reorganization, reclassification of capital stock, consolidation, merger, sale, transfer, or other disposition; and in any such case appropriate adjustments shall be made in the application of the provisions of this Section 6 with respect to rights and interests thereafter of the Holder of this Option to the end that the provisions of this Section 6 shall thereafter be applicable, as near as reasonably may be, in relation to any shares or other property thereafter purchasable upon the exercise of this Option.

(e)        Fractional Shares. No certificate for fractional shares shall be issued upon the exercise of this Option, but in lieu thereof the Company shall purchase any such fractional shares calculated to the nearest cent or round up the fraction to the next whole share.

(f)        Rights of the Holder. The Holder of this Option shall not be entitled to any rights of a shareholder of the Company in respect of any Option Shares purchasable upon the exercise hereof until such Option Shares have been paid for in full and issued to it. As soon as practicable after such exercise, the Company shall deliver a certificate or certificates for the number of full shares of Common Stock issuable upon such exercise, to the person or persons entitled to receive the same.

The Holder, by acceptance of this Option, represents and options to, and covenants and agrees with, the Company as follows:

(a)      The Option is being acquired for the Holder's own account for investment and not with a view toward resale or distribution of any part thereof, and the Holder has no present intention of selling, granting any participation in, or otherwise distributing the same.

(b)     The Holder is aware that the Option is not registered under the Act or any state securities or blue sky laws and, as a result, substantial restrictions exist with respect to the transferability of the Option and the Option Shares to be acquired upon exercise of the Option.

(c )   The Holder is an accredited investor as defined in Rule 501(a) of Regulation D under the Act and is a sophisticated investor familiar with the type of risks inherent in the acquisition of securities such as the Option, and its financial position is such that it can afford to retain the Option and the Option Shares for an indefinite period of time without realizing any direct or indirect cash return on this investment.

The Company shall not by any action including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Option, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder against impairment. Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any shares of Common Stock receivable upon the exercise of this Option above the amount payable therefore upon such exercise immediately prior to such increase in par value, (b) take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non assessable shares of Common Stock upon the exercise of this Option, and (c) use its best efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Option. Upon the request of Holder, the Company will at any time during the period this Option is outstanding acknowledge in writing, in form satisfactory to Holder, the continuing validity of this Option and the obligations of the Company hereunder.

There are no registration rights associated with this Option or the underlying Option Shares when issued.

The Company shall cooperate with Holder and each holder of Option Shares in supplying such information pertaining to the Company as may be reasonable necessary for such Holder and each holder of Option Shares to complete and file any information reporting forms presently or hereafter required by the Securities and Exchange Commission as a condition to the availability of an exemption from the Act for the sale of Option Shares.

No provision hereof, in the absence of affirmative action by Holder to purchase shares of Common Stock, and no enumeration herein of the rights or privileges of Holder hereof, shall give rise to any liability of Holder for the Exercise Price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

(a)           Transfer Taxes; Expenses. The Holder shall pay any and all underwriters' discounts, brokerage fees, and transfer taxes incident to the sale or exercise of this Option or the sale of the underlying shares issuable hereunder, and shall pay the fees and expenses of any special attorneys or accountants retained by it.

(b)           Successors and Assigns. Subject to compliance with the provisions of Section 3, this Option and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and assigns of Holder. The provisions of this Option are intended to be for the benefit of all Holders from time to time of this Option, and shall be enforceable by any such Holder.

( c)           Notice. Any notice or other communication required or permitted to be given to the Company shall be in writing and shall be delivered by certified mail with return receipt or delivered in person against receipt, addressed to the Company at 211 Warren Street, Suite 320, Newark, New Jersey 07103.

(d)          Governing Law. This Option Certificate shall be governed by, and construed in accordance with, the internal laws of the State of New Jersey, without reference to the conflicts of laws provisions thereof.

IN WITNESS WHEREOF, the Company has caused this Option Certificate to be duly executed as of the date set forth below.

Issuance Date: VOID

ARKADOS GROUP, INC.

FORM OF EXERCISE OF OPTION

No. O201x-C-E-00x

¨    The undersigned hereby elects to exercise this Option as to _____________ shares of the Common Stock of Arkados Group, Inc., a Delaware corporation, covered thereby. Enclosed herewith is a bank or certified check in the amount of $_____________ payable to the Company.

Delivery of exercise notice requiring a payment by check must be by national courier (Fedex, UPS, etc.) to:

Arkados Group, Inc.

211 Warren Street, Suite 320,

Newark, NJ 07103

Attn: Terrence DeFranco

¨    The undersigned hereby elects to effect a cashless exercise of this Option as to _____________ shares. The Company is authorized to deduct from the requested number exercised and to issue me that number of shares of its Common Stock determined by the formula set forth in Section 2(a) of the Option.

Please note: if the exercise involves a cashless exercise for the entire amount (i.e. no cash due the Company), please execute this notice in blue ink, scan and email to the Company’s general counsel via email at ***@***.

The shares should be sent to me at the address provided below.