Document:

Exhibit 10.3

 

TERMINATION AGREEMENT

 

TERMINATION AGREEMENT (this “Agreement”), dated as of August 18, 2017, by and among LABA ROYALTY SUB LLC, a Delaware limited liability company (the “Issuer”), INNOVIVA, INC., a Delaware corporation previously known as Theravance, Inc. (“Innoviva”) and U.S. BANK NATIONAL ASSOCIATION, a national banking association (“U.S. Bank”).

 

Reference is hereby made to (i) the Amended and Restated Indenture, dated as of August 3, 2016 (as further amended, supplemented or otherwise modified from time to time prior to its termination hereunder, the “Indenture”), by and between the Issuer and U.S. Bank, as initial trustee of the Notes described therein (in such capacity, the “Trustee”), (ii) each of the LABA PhaRMASM 9.0% Fixed Rate Term Notes due 2029 issued pursuant to the Indenture, as identified on Schedule A (as further amended, supplemented or otherwise modified from time to time prior to its termination hereunder, each such note collectively, the “Notes”), (iii) the Sale and Contribution Agreement, dated as of April 17, 2014 (as further amended, supplemented or otherwise modified from time to time prior to its termination hereunder, the “Sale and Contribution Agreement”), by and between Innoviva, as the transferor (the “Transferor”) and the Issuer, as the transferee (the “Transferee”), (iv) the Servicing Agreement, dated as of April 17, 2014 (as further amended, supplemented or otherwise modified from time to time prior to its termination hereunder, the “Servicing Agreement”), by and between the Issuer and Innoviva, as the servicer (the “Servicer”) and (v) the Account Control Agreement, dated as of April 17, 2014 (as further amended, supplemented or otherwise modified from time to time prior to its termination hereunder, the “Account Control Agreement” and together with the Indenture, the Notes, the Sale and Contribution Agreement and the Servicing Agreement, the “Terminated Transaction Documents”), by and among the Issuer, as grantor, the Servicer, U.S. Bank, as the secured party and U.S. Bank, as a “securities intermediary” and a “bank” (in such capacities, the “Financial Institution”).

 

Capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in Annex A to the Indenture.

 

The Issuer intends to fully redeem all of the Outstanding Notes on August 18, 2017 consistent with the Notice of Optional Redemption in whole that was delivered by the Trustee to the holders of the Outstanding Notes on August 11, 2017, and in connection with the Issuer’s request that the Trustee acknowledge the satisfaction and discharge of the Indenture pursuant to Article XI of the Indenture, (i) the Trustee hereby acknowledges receipt of all of the Outstanding Notes for cancellation, (ii) each party hereto acknowledges and agrees that upon the satisfaction of the principal, interest, Premium and Administrative Expenses set forth on the attached Schedule B (the “Closing Date Liabilities”) on the date hereof, all of the Outstanding Notes issued and all Secured Obligations payable pursuant to the Indenture, and all other amounts owing from the Issuer under the Transaction Documents will have been satisfied in full and (iii) the Issuer hereby directs the Trustee, upon the satisfaction of the Closing Date Liabilities, to release any amounts remaining in the Collection Account to the Concentration Account.  Following the application of the amounts on deposit in the Collection Account to pay

 

 

the Closing Date Liabilities, the balance of the Collection Account will be released in accordance with clause (iii) of the preceding sentence.

 

Effective upon receipt by the parties hereto of counterparts of this Agreement, the payment by the Issuer of the Closing Date Liabilities by transfer of funds equal to $232,758,134.17 to the Collection Account, the receipt by the Trustee of the Officer’s Certificate in the form attached hereto as Exhibit A, and the legal opinion of Skadden, Arps, Slate, Meagher & Flom LLP, as counsel to the Issuer in the form attached hereto as Exhibit B (together, the “Satisfaction and Discharge Conditions”), (i) U.S. Bank, as the Trustee, shall be deemed to have automatically released, and hereby releases, the liens granted to it or for its benefit pursuant to the Indenture; (ii) any requirement of notice or delivery of any other document required in connection with the termination of the Terminated Transaction Documents is hereby waived by each party entitled to such notice or other document; (iii) the parties hereby agree to execute and deliver such instruments and documents which are reasonably requested by any other party for the purpose of effectuating the intent of this Agreement; (iv) the Trustee, hereby authorizes the Issuer (or any party authorized to act on its behalf) to file any financing statements terminations relating to the financing statements currently filed in connection with the Indenture and the transactions contemplated thereby, and agrees to execute such other documents, instruments and releases with respect to any liens granted to it pursuant to the Indenture to evidence the transactions contemplated by this Agreement and (v) the Issuer hereby authorizes Innoviva (or any party authorized to act on its behalf) to file any financing statements terminations relating to the financing statements currently filed in connection with the Sale and Contribution Agreement and the transactions contemplated thereby, and agrees to execute such other documents, instruments and releases with respect to any liens granted to it pursuant to the Sale and Contribution Agreement to evidence the transactions contemplated by this Agreement.

 

Each party hereto hereby agrees that, effective upon satisfaction of the Satisfaction and Discharge Conditions, any and all of its respective rights, powers, consents, duties, and other obligations arising under or in connection with the Terminated Transaction Documents (other than any such right, power, consent, duty and/or other obligations which by its terms expressly survives the termination of the applicable Terminated Transaction Document) are hereby terminated and each such Terminated Transaction Document shall terminate and be of no further force or effect (other than any such provisions which by their terms expressly survive the termination of the applicable Terminated Transaction Document).

 

It is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by U.S. Bank not individually or personally and (ii) under no circumstances shall U.S. Bank be personally liable for the payment of any indebtedness or expenses of any other Person or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by any other Person hereunder.

 

This Agreement may be executed in one or more counterparts each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Agreement.

 

2

 

This Agreement shall in all respects be construed in accordance with and governed by the laws of the State of New York.

 

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3

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective officers as of the date first above written.

 

	
 
    	
LABA ROYALTY SUB LLC, as the   Issuer and the Transferee
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric d’Esparbes
    
	
 
    	
 
    	
Name:
    	
Eric   d’Esparbes
    
	
 
    	
 
    	
Title:
    	
Secretary   and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INNOVIVA, INC., as the   Transferor and the Servicer
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric d’Esparbes
    
	
 
    	
 
    	
Name:
    	
Eric   d’Esparbes
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    

 

Termination Agreement

 

 

	
 
    	
U.S. BANK NATIONAL ASSOCIATION,   not in its individual capacity but solely as the Trustee and the Financial   Institution
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Georgina Nassar
    
	
 
    	
 
    	
Name:
    	
Georgina   Nassar
    
	
 
    	
 
    	
Title:
    	
Assistant   Vice President
    

 

Termination Agreement

 

 

Schedule A

 

LABA PhaRMASM 9.0% Fixed Rate Term Notes due 2029

 

	
Note
    	
 
    	
CUSIP
    	
 
    	
Initial Principal Amount
    	
 
    
	
Rule 144 A Global Note
    	
 
    	
505355 AA5
    	
 
    	
$
    	
185,000,000
    	
 
    
	
Temporary Regulation S Global Note
    	
 
    	
U5021P AA3
    	
 
    	
$
    	
264,500,000
    	
 
    

 

Sch A-1

 

Schedule B

 

Closing Date Liabilities

 

A.            Interest

 

	
Note
    	
 
    	
Accrued and Unpaid Interest
    	
 
    
	
Rule 144 A Global Note
    	
 
    	
$
    	
109,164.84
    	
 
    
	
Temporary Regulation S Global Note
    	
 
    	
$
    	
65,267.53
    	
 
    

 

B.            Principal

 

	
Note
    	
 
    	
Outstanding Principal Balance
    	
 
    
	
Rule 144 A Global Note
    	
 
    	
$
    	
145,553,123.35 
    	
 
    
	
Temporary Regulation S Global Note
    	
 
    	
$
    	
87,023,374.45
    	
 
    

 

C.            Administrative Expenses

 

	
Fee
    	
 
    	
Accrued Amount
    	
 
    
	
Fee   payable to the Trustee
    	
 
    	
$
    	
2,406
    	
 
    
	
Fee payable to Service Providers, including   Servicing Fee
    	
 
    	
$
    	
0
    	
 
    
	
Other   Administrative Expenses
    	
 
    	
$
    	
4,798
    	
 
    

 

D.            Premium

 

	
Note
    	
 
    	
Redemption Percentage
    	
 
    
	
Rule 144 A Global Note
    	
 
    	
100
    	
%
    
	
Temporary Regulation S Global Note
    	
 
    	
100
    	
%
    

 

Sch B-1Exhibit 10.52

 

AMENDMENT #2 TO CONVERTIBLE PROMISSORY
NOTE

 

This Amendment #2 to
Convertible Promissory Note (this “Amendment”) is entered into as of July 12, 2017, by and between St.
George Investments LLC, a Utah limited liability company (“Lender”), and Omagine,
Inc., a Delaware corporation (“Borrower”). Capitalized terms used in this Amendment without definition
shall have the meanings given to them in the Note (as defined below).

 

A.       Borrower
previously issued to Lender a Convertible Promissory Note dated November 14, 2016 in the principal amount of $185,000.00 (the “Note”).

 

B.       Lender
and Borrower previously amended the Note pursuant to that certain Amendment to Convertible Promissory Note dated May 10, 2017 (the
“Prior Amendment”).

 

C.       Borrower
has requested that Lender once again extend the Maturity Date of the Note (the “Extension”).

 

D.       Lender
has agreed, subject to the terms, amendments, conditions and understandings expressed in this Amendment, to grant the Extension.

 

NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.       Recitals.
Each of the parties hereto acknowledges and agrees that the recitals set forth above in this Amendment are true and accurate and
are hereby incorporated into and made a part of this Amendment.

 

2.       Extension.
The first sentence of the Note is deleted in its entirety and replaced with the following:

 

“FOR VALUE RECEIVED, Omagine,
Inc., a Delaware corporation (“Borrower”), promises to pay to St.
George Investments LLC, a Utah limited liability company, or its successors or assigns (“Lender”), $185,000.00
and, if applicable, any interest, fees, charges, and late fees on or before August 17, 2017 (the “Maturity Date”).”

 

3.       Extension
Fee. In consideration of Lender’s grant of the Extension, its fees incurred in preparing this Amendment and other accommodations
set forth herein, Borrower agrees to pay to Lender on or before July 17, 2017 an extension fee in the amount of $8,000.00 (the
“Extension Fee”). The Extension Fee shall be payable to Lender via wire transfer of immediately available funds
on or before July 17, 2017.

 

4.       Affirmation
of Note Balance. The Note shall be and remain in full force and effect in accordance with its terms and is hereby ratified
and confirmed in all respects. Borrower and Lender agree that the outstanding balance of the Note as of the date hereof is $185,000.00.

 

    	 		 

     

    

 

5.       Conditionality
of Extension. The Extension is conditioned upon and subject to Borrower’s payment to Lender of the Extension Fee and
the Extension shall not be effective unless and until Lender has received the Extension Fee.

 

6.       Representations
and Warranties. In order to induce Lender to enter into this Amendment, Borrower, for itself, and for its affiliates, successors
and assigns, hereby acknowledges, represents, warrants and agrees as follows:

 

(a)Borrower
has full power and authority to enter into this Amendment and to incur and perform all obligations and covenants contained herein,
all of which have been duly authorized by all proper and necessary action. No consent, approval, filing or registration with or
notice to any governmental authority is required as a condition to the validity of this Amendment or the performance of any of
the obligations of Borrower hereunder.

 

(b)There is no
fact known to Borrower or which should be known to Borrower which Borrower has not disclosed to Lender on or prior to the date
of this Amendment which would or could materially and adversely affect the understanding of Lender expressed in this Amendment
or any representation, warranty, or recital contained in this Amendment.

 

(c)Except as
expressly set forth in this Amendment, Borrower acknowledges and agrees that neither the execution and delivery of this Amendment
nor any of the terms, provisions, covenants, or agreements contained in this Amendment shall in any manner release, impair, lessen,
modify, waive, or otherwise affect the liability and obligations of Borrower under the terms of the Transaction Documents.

 

(d)Borrower has
no defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action
of any kind or nature whatsoever against Lender, directly or indirectly, arising out of, based upon, or in any manner connected
with, the transactions contemplated hereby, whether known or unknown, which occurred, existed, was taken, permitted, or begun
prior to the execution of this Amendment and occurred, existed, was taken, permitted or begun in accordance with, pursuant to,
or by virtue of any of the terms or conditions of the Transaction Documents. To the extent any such defenses, affirmative or otherwise,
rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action exist or existed, such defenses, rights,
claims, counterclaims, actions and causes of action are hereby waived, discharged and released. Borrower hereby acknowledges and
agrees that the execution of this Amendment by Lender shall not constitute an acknowledgment of or admission by Lender of the
existence of any claims or of liability for any matter or precedent upon which any claim or liability may be asserted.

 

(e)Borrower
represents and warrants that as of the date hereof no Events of Default or other material breaches exist under the Transaction
Documents or have occurred prior to the date hereof.

 

7.       Certain
Acknowledgments. Each of the parties acknowledges and agrees that no property or cash consideration of any kind whatsoever
has been or shall be given by Lender to Borrower in connection with the Extension or any other amendment to the Note granted herein.

 

    	 	2	 

     

    

 

8.       Other
Terms Unchanged. The Note, as amended by the Prior Amendment and this Amendment, remains and continues in full force and effect,
constitutes legal, valid, and binding obligations of each of the parties, and is in all respects agreed to, ratified, and confirmed.
Any reference to the Note after the date of this Amendment is deemed to be a reference to the Note as amended by the Prior Amendment
and this Amendment. If there is a conflict between the terms of this Amendment and the Note, the terms of this Amendment shall
control. If there is a conflict between the terms of the Prior Amendment and this Amendment, the terms of this Amendment shall
control. No forbearance or waiver may be implied by this Amendment. Except as expressly set forth herein, the execution, delivery,
and performance of this Amendment shall not operate as a waiver of, or as an amendment to, any right, power, or remedy of Lender
under the Note, as in effect prior to the date hereof. For the avoidance of doubt, this Amendment shall be subject to the governing
law, venue, and Arbitration Provisions, as set forth in the Note.

 

9.       No
Reliance. Borrower acknowledges and agrees that neither Lender nor any of its officers, directors, members, managers, equity
holders, representatives or agents has made any representations or warranties to Borrower or any of its agents, representatives,
officers, directors, or employees except as expressly set forth in this Amendment, the Prior Amendment, and the Transaction Documents
and, in making its decision to enter into the transactions contemplated by this Amendment, the Prior Amendment, and the Transaction
Documents, Borrower is not relying on any representation, warranty, covenant or promise of Lender or its officers, directors, members,
managers, equity holders, agents or representatives other than as set forth in this Amendment, the Prior Amendment, and the Transaction
Documents.

 

10.     Counterparts.
This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together
shall constitute one instrument. The parties hereto confirm that any electronic copy of another party’s executed counterpart
of this Amendment (or such party’s signature page thereof) will be deemed to be an executed original thereof.

 

11.     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 Amendment and the consummation of the transactions contemplated
hereby.

 

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blank]

 

    	 	3	 

     

    

 

IN WITNESS WHEREOF, the undersigned have
executed this Amendment as of the date set forth above.

 

	 	BORROWER:
	 	 
	 	OMAGINE, INC.
	 	 	 
	 	By:	/s/ Charles P. Kuczynski
	 	Name:	Charles P. Kuczynski
	 	Title:	Vice President, Secretary

 

	 	LENDER:
	 	 
	 	St. George Investments LLC
	 	 
	 	By: Fife Trading, Inc., its Manager
	 	 	 
	 	By:	/s/ John M. Fife
	 	 	John M. Fife, President

 

 

 

[Signature page to Amendment to Promissory
Note]

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