Exhibit 10.1


 


 


NOTE PURCHASE AGREEMENT


 


THIS NOTE
PURCHASE AGREEMENT (this “Agreement”) is dated as of May 20, 2015 (the “Agreement Date”),
by and between OMAGINE, INC., a corporation organized and existing under the laws of the State of Delaware (the “Company”),
and YA GLOBAL MASTER SPV, LTD., a Cayman Islands exempt limited partnership (the “Investor”).


WITNESSETH


 


WHEREAS, the
parties desire that, upon the terms and subject to the conditions contained herein, the Company may issue and sell to the Investor,
as provided herein, and the Investor shall purchase a note substantially in the form attached hereto as Exhibit A (the “Note”)
in an aggregate principal amount of $500,000;


WHEREAS, on
April 22, 2014, the parties entered into a Standby Equity Distribution Agreement (the “SEDA”); and


NOW, THEREFORE,
in consideration of the mutual covenants and other agreements contained in this Agreement the Company and the Investor hereby agree
as follows:


1.     
PURCHASE AND SALE OF NOTE;


(a)               
Purchase of Note. On the first business day following the satisfaction of all of the conditions precedent set forth
below (the “Closing Date”), the Company shall sell, and the Investor shall purchase, a Note in the principal
amount of $500,000 on the terms and conditions and in reliance on the Company’s representations and warranties, all as set
forth herein. The Note shall be in the form attached hereto as Exhibit A.


(b)              
Form of Payment. Subject to the satisfaction of the terms and conditions of this Agreement, on the Closing Date,
(i) the Investor shall deliver to the Company the principal amount of the Note to be issued and sold to the Investor; provided,
however, that the Investor shall deduct a commitment fee in the amount of $50,000.00 from the proceeds of the Note (to be payable
to YA Global II SPV LLC as designee of the Investor) and any other deductions of payments to be made on behalf of the Company as
agreed upon between the parties and set out on a signed closing statement (the “Closing Statement”), and (ii)
the Company shall deliver to the Investor, the Note duly executed on behalf of the Company.


(c)               
Conditions Precedent. The obligation of the Investor hereunder to purchase the Note pursuant hereto is subject to
the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the
Investor’s sole benefit and may be waived by the Investor at any time in its sole discretion:


(i)                
There shall not have been any condition, circumstance, or situation that has resulted in or would reasonably be expected
to result in a “Material Adverse Effect,” where “Material Adverse Effect” shall mean any condition, circumstance,
or situation that may result in, or reasonably be expected to result in (1) a material adverse effect on the legality, validity
or enforceability of this Agreement or the transactions contemplated herein, (2) a material adverse effect on the results of operations,
assets, business or condition (financial or otherwise) of the Company, taken as a whole, or (3) a material adverse effect on the
Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement


(ii)              
The Company’s common stock (“Common Stock”) shall be authorized for quotation or trading on the NASDAQ
Stock Market, the NYSE Euronext, the New York Stock Exchange, or the OTCQX, OTCQB, or OTC Pink marketplaces of the OTC Markets
Group, whichever is at the time the principal trading exchange or market for the Common Stock (the “Principal Market”)
and trading in the Common Stock shall not have been suspended for any reason;


 






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(iii)            
The Company is not in material default nor aware of any potential material default with any of its lenders, except as has
been disclosed in the Company’s filings with the United States Securities and Exchange Commission (the “SEC”);


(iv)            
The Company has received all necessary authorizations to sell the Note to the Investor; and


(v)              
The parties have signed a Closing Statement in an agreed upon form.


(d)              
In the event that the Closing Date has not occurred by June 15, 2015, the Investor may terminate this Agreement.


2.     
INVESTOR’S REPRESENTATIONS AND WARRANTIES.


Investor hereby represents
and warrants to the Company that the following are true and correct as of the date hereof, and as of the Closing Date:


(a)               
Organization and Authorization. The Investor is duly organized, validly existing and in good standing under the laws
of the Cayman Islands and has all requisite power and authority to purchase and hold the Note. The decision to invest and the execution
and delivery of this Agreement by such Investor, the performance by such Investor of its obligations hereunder and the consummation
by such Investor of the transactions contemplated hereby have been duly authorized and requires no other proceedings on the part
of the Investor. The undersigned has the right, power and authority to execute and deliver this Agreement and all other instruments
on behalf of the Investor. This Agreement has been duly executed and delivered by the Investor and, assuming the execution and
delivery hereof and acceptance thereof by the Company, will constitute the legal, valid and binding obligations of the Investor,
enforceable against the Investor in accordance with its terms.


(b)              
Evaluation of Risks. The Investor has such knowledge and experience in financial, tax and business matters as to
be capable of evaluating the merits and risks of, and bearing the economic risks entailed by, an investment in the Company and
of protecting its interests in connection with this transaction. It recognizes that its investment in the Company involves a high
degree of risk.


(c)               
Investment Purpose. The Note is purchased by the Investor for its own account, and for investment purposes. The Investor
agrees not to assign or in any way transfer the Investor’s rights to the Note or any interest therein and acknowledges that
the Company will not recognize any purported assignment or transfer of the Note except in accordance with applicable Federal and
state securities laws. No other person has or will have a direct or indirect beneficial interest in the Note. The Investor agrees
not to sell, hypothecate or otherwise transfer the Note unless the Note is registered under Federal and applicable state securities
laws or unless, in the opinion of counsel satisfactory to the Company, an exemption from such laws is available.


(d)              
Accredited Investor. The Investor is an “Accredited Investor” as that term is defined in Rule
501(a)(3) of Regulation D of the Securities Act of 1933 (the “Securities Act”).






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(e)               
Information. The Investor and its advisors (and its counsel), if any, have been furnished with all materials relating
to the business, finances and operations of the Company and information it deemed material to making an informed investment decision.
The Investor and its advisors, if any, have been afforded the opportunity to ask questions of the Company and its management. Neither
such inquiries nor any other due diligence investigations conducted by such Investor or its advisors, if any, or its representatives
shall modify, amend or affect the Investor’s right to rely on the Company’s representations and warranties contained
in this Agreement. The Investor understands that its investment involves a high degree of risk. The Investor has sought such accounting,
legal and tax advice, as it has considered necessary to make an informed investment decision with respect to this transaction.


(f)               
No General Solicitation. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Note offered hereby.


(g)              
Not an Affiliate. The Investor is not an officer, director or a person that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under common control with the Company or any “Affiliate”
of the Company (as that term is defined in Rule 405 of the Securities Act).


3.     
COMPANY’S REPRESENTATIONS AND WARRANTIES. Except as stated below or in the SEC Documents, the Company hereby
represents and warrants to, the Investor that the following are true and correct as of the date hereof, and as of the Closing Date:


(a)               
Organization and Qualification. The Company is duly incorporated, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate power to own its properties and to carry on its business as now being
conducted. Each of the Company and its subsidiaries is duly qualified as a foreign corporation to do business and is in good standing
in every jurisdiction in which the nature of the business conducted by it makes such qualification necessary, except to the extent
that the failure to be so qualified or be in good standing would not have a Material Adverse Effect on the Company and its subsidiaries
taken as a whole. The Company has furnished or made available to the Investor true and correct copies of the Company’s Re-Stated
Certificate of Incorporation as in effect on the date hereof (the “Certificate of Incorporation”), and 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 and the material rights of the holders thereof in respect thereto.


(b)              
Authorization, Enforcement, Compliance with Other Instruments. (i) The Company has the requisite corporate power
and authority to enter into and perform this Agreement and any related agreements, in accordance with the terms hereof and thereof,
(ii) the execution and delivery of this Agreement and any related agreements by the Company and the consummation by it of the transactions
contemplated hereby and thereby, have been duly authorized by the Company’s Board of Directors and no further consent or
authorization is required by the Company, its Board of Directors or its stockholders, (iii) this Agreement, the Note (when
issued) and any related agreements have been duly executed and delivered by the Company, (iv) this Agreement, the Note (when issued),
and any related agreements, constitute the valid and binding obligations of the Company enforceable against the Company in accordance
with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’
rights and remedies.






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(c)               
No Conflict. The execution, delivery and performance of this Agreement by the Company and the consummation by the
Company of the transactions contemplated hereby will not (i) result in a violation of the Certificate of Incorporation, any certificate
of designations of any outstanding series of preferred stock of the Company or By-laws or (ii) conflict with or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or 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 result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities
laws and regulations and the rules and regulations of the Principal Market on which the Common Stock is quoted) applicable to the
Company or any of its subsidiaries or by which any material property or asset of the Company or any of its subsidiaries is bound
or affected and which would cause a Material Adverse Effect. Except as disclosed in the SEC Documents, neither the Company nor
its subsidiaries is in violation of any term of or in default under its Articles of Incorporation or By-laws or their organizational
charter or by-laws, respectively, or any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment,
decree or order or any statute, rule or regulation applicable to the Company or its subsidiaries. The business of the Company and
its subsidiaries is not being conducted in violation of any material law, ordinance, regulation of any governmental entity. Except
as specifically contemplated by this Agreement and as required under the Securities Act and any applicable state securities laws,
the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court
or governmental agency in order for it to execute, deliver or perform any of its obligations under or contemplated by this Agreement
in accordance with the terms hereof or thereof except as such consent, authorization or order has been obtained prior to the date
hereof. The Company and its subsidiaries are unaware of any fact or circumstance which might give rise to any of the foregoing.


(d)              
SEC Documents; Financial Statements. The Common Stock is registered pursuant to Section 12(g) of the Securities Exchange
Act of 1934 (the “Exchange Act”) and the Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC under the Exchange Act for the two years preceding the date hereof (or such shorter period
as the Company was required by law or regulation to file such material) (all of the foregoing filed within the two years preceding
the date hereof as amended after the date hereof and all exhibits included therein and financial statements and schedules thereto
and documents incorporated by reference therein, being hereinafter referred to as the “SEC Documents”) on a
timely basis or has received a valid extension of such time of filing and has filed any such SEC Document prior to the expiration
of any such extension. The Company has delivered to the Investor or its representatives, or made available through the SEC’s
website at http://www.sec.gov, true and complete copies of the SEC Documents. As of their respective dates, the SEC Documents complied
in all material respects with the requirements of the Exchange 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 the light of the circumstances under which they were made, not misleading. 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 generally accepted accounting principles, consistently applied, during the periods involved (except
(i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements,
to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects
the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other information provided
by or on behalf of the Company to the Investor which is not included in the SEC Documents contains any untrue statement of a material
fact or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstance under
which they are or were made, not misleading.






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(e)               
No Default. Except as disclosed in the SEC Documents, the Company is not in default in the performance or observance
of any material obligation, agreement, covenant or condition contained in any indenture, mortgage, deed of trust or other material
instrument or agreement to which it is a party or by which it or its property is bound and neither the execution, nor the delivery
by the Company, nor the performance by the Company of its obligations under this Agreement or any of the exhibits or attachments
hereto will conflict with or result in the breach or violation of any of the terms or provisions of, or constitute a default or
result in the creation or imposition of any lien or charge on any assets or properties of the Company under its Certificate of
Incorporation, By-Laws, any material indenture, mortgage, deed of trust or other material agreement applicable to the Company or
instrument to which the Company is a party or by which it is bound, or any statute, or any decree, judgment, order, rule or regulation
of any court or governmental agency or body having jurisdiction over the Company or its properties, in each case which default,
lien or charge is likely to cause a Material Adverse Effect.


(f)               
Internal Accounting Controls. The Company and each of its subsidiaries maintain a system of internal accounting controls
sufficient 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.


(g)              
Absence of Litigation. Except as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization or body pending against or
affecting the Company, the Common Stock or any of the Company’s subsidiaries, wherein an unfavorable decision, ruling or
finding would have a Material Adverse Effect.


(h)              
Subsidiaries. Except as disclosed in the SEC Documents, the Company does not presently own or control, directly or
indirectly, any interest in any other corporation, partnership, association or other business entity.


(i)                
Tax Status. Except as disclosed in the SEC Documents, the Company and each of its subsidiaries has made or filed
all federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject
and (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) 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 provision 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 in any material amount 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.


(j)                
Certain Transactions. Except as set forth in the SEC Documents none of the officers, directors, or employees of the
Company is presently a party to any transaction with the Company (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.






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4.     
INDEMNIFICATION. The parties agree that Article V of the SEDA shall apply to this Agreement.


5.     
GOVERNING LAW. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New
York without regard to the principles of conflict of laws. Each of the parties consents to the jurisdiction of the state courts
of the State of New York and the U.S. District Court for the District of New York sitting in Manhattan, for the adjudication
of any civil action asserted pursuant to this paragraph.


6.     
NOTICES. Any notices, consents, waivers or other communications required or permitted to be given under the
terms hereof must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service,
in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall
be:


	If to the Company, to:	Omagine, Inc.
	 	Empire State Building
	 	
        350 Fifth Avenue, Suite 4815-17

        New York, New York 10118

	 	Attention:  Chief Executive Officer
	 	Telephone:  (212) 563-4141
	 	Facsimile:   (212) 563-3355
	 	 
	With a copy to: 	Sichenzia Ross Friedman Ference LLP
	 	61 Broadway
	 	New York, New York 10006
	 	Attention:  Michael Ference
	 	Telephone: (212) 930-9700
	 	Facsimile:  (212) 930-9725


 


	If to the Holder:	YA Global Master SPV, Ltd.
	 	1012 Springfield Avenue
	 	Mountainside, NJ  07092
	 	Attention:Mark Angelo
	 	Telephone:(201) 985-8300
	 	 
	With a copy to:	David Gonzalez, Esq. 
	 	1012 Springfield Avenue
	 	Mountainside, NJ  07092
	 	Telephone:(201) 985-8300
	 	Email:  dgonzalez@yorkvilleadvisors.com
	 	 


or at such other address and/or
facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each
other party three Business Days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient
of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender’s facsimile
machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (iii) provided
by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or
receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.






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7.     
MISCELLANEOUS.


(a)               
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party.


(b)              
Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Investor
and the Company with respect to the matters discussed herein, and 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 Investor 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 party to be charged with enforcement.


 


[signature page
follows]






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IN WITNESS WHEREOF,
each of the Investor and the Company have caused their respective signature page to this Note Purchase Agreement to be duly executed
as of the date first written above.





	 	COMPANY:	 
	 	 	 
	 	OMAGINE, INC.	 
	 	 	 
	 	By: /s/ Charles
        P. Kuczynski	 
	 	Charles
        P. Kuczynski	 
	 	Vice-President & Secretary	 
	 	 	 
	 	INVESTOR:	 
	 	 	 
	 	YA GLOBAL MASTER SPV LTD.	 
	 	 	 
	 	 	 
	 	By:Yorkville Advisors Global LP	 
	 	Its:Investment Manager	 
	 	 	 
	 	By:Yorkville Advisors Global LLC	 
	 	Its:General Partner	 
	 	 	 
	 	By: /s/ Gerald Eicke	 
	 	Name: Gerald Eicke	 
	 	Title: Managing Member	 
	 	 	 



 


 



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Exhibit A

Form of Note