Document:

Exhibit 10.2

 

 

THIS NOTE HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THIS NOTE HAS BEEN SOLD IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS.

OMAGINE,
INC.

Promissory
Note

	No. Omagine-PN3	Original Principal Amount:$500,000
	 	 

 

FOR VALUE RECEIVED,
Omagine, Inc., a corporation organized and existing under the laws of the State of Delaware (the “Company”),
hereby promises to pay to the order of YA Global Master SPV, Ltd. or its registered assigns (the “Holder”)
(i) the outstanding portion of the amount set out above as the Original Principal Amount (as reduced pursuant to the terms hereof
pursuant to scheduled payment, redemption or otherwise, the “Principal”) when due, whether a regularly scheduled
principal payment or upon the Maturity Date (as defined below), acceleration, redemption or otherwise (in each case in accordance
with the terms hereof) and (ii) to pay interest (“Interest”) on any outstanding Principal at the applicable
Interest Rate (as defined below) from the date defined in Section 17 hereof as the Issuance Date (the “Issuance Date”)
until the same is paid, whether a regularly scheduled interest payment or upon the Maturity Date or acceleration, redemption or
otherwise (in each case in accordance with the terms hereof).

This Note is being
issued pursuant to that certain Note Purchase Agreement dated as of May 20, 2015 (the “Note Purchase Agreement“)
between the Company and the Holder.

Certain capitalized terms
used herein but otherwise not defined herein are defined in Section 17 or in the Note Purchase Agreement.

 

(1)              
GENERAL TERMS

(a)               
Advance of Original Principal Amount. In consideration for the issuance of this Note (this “Note”)
on the Issuance Date by the Company, the Holder shall advance and make available to the Company on the Issuance Date the Original
Principal Amount by wire transfer of immediately available funds to the account indicated by the Company on Schedule I
attached hereto in accordance with the Note Purchase Agreement.

    	1

    	 

    

 

(b)              
Maturity Date. The term of this Note shall expire on that Business Day immediately preceding the first anniversary
of the Closing Date (the “Maturity Date”). On the Maturity Date, the Company shall pay to the Holder an amount
in cash representing all then outstanding Principal and accrued and unpaid Interest.

(c)               
Payments. Payments to be made under this Note must be paid by wire transfer of immediately available funds to the
account listed on Schedule II hereto (or to any other account specified by the Holder to the Company by notice given
in accordance with Section 7 hereof). On each of the Installment Dates, the Company shall pay to the Holder an amount equal to
the relevant Installment Amount due on such Installment Date as listed on Schedule III hereto.

(d)              
Interest. Interest shall accrue on the outstanding Principal balance hereof at a rate equal to 10% per annum (“Interest
Rate”). Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the extent
permitted by applicable law.

(2)              
NO PREPAYMENT PENALTY. The Company may prepay all or any part of the balance outstanding hereunder at any time without
penalty.

(3)              
REPRESENTATIONS AND WARRANTIES. The Company hereby represents and warrants to the Investor that the following are
true and correct as of the date hereof:

(a)   
The Company has the requisite corporate power and authority to enter into and perform its obligations under this Note and
any related agreements, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Note 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 Note and any related agreements have been duly executed and delivered by the Company, (iv)
this Note 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.

(b)  
The execution, delivery and performance by the Company of its obligations under this Note will not (i) result in a violation
of the Company’s Articles of Incorporation or By-laws or any certificate of designation of any outstanding series of preferred
stock of the Company 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 is bound or affected and which would cause a Material Adverse Effect.

    	2

    	 

    

 

(4)              
EVENTS OF DEFAULT. 

(a)               
An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason
and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of
any court, or any order, rule or regulation of any administrative or governmental body) shall have occurred and be continuing:

(i)                
the Company’s failure to pay to the Holder any amount of Principal, Interest or other amounts when and as due and
payable under this Note;

(ii)              
the Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary
of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the
Company or any subsidiary of the Company commences, or there shall be commenced against the Company or any subsidiary of the Company,
any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or any subsidiary of the Company,
in each case which remains un-dismissed for a period of 61 days; or the Company or any subsidiary of the Company is adjudicated
insolvent or bankrupt pursuant to a final, non-appealable order; or any order of relief or other order approving any such case
or proceeding is entered; or the Company or any subsidiary of the Company suffers any appointment of any custodian, private or
court appointed receiver or the like for it or any substantial part of its property which continues un-discharged or un-stayed
for a period of 61 days; or the Company or any subsidiary of the Company makes a general assignment for the benefit of creditors;
or the Company or any subsidiary of the Company shall admit in writing that it is unable to pay its debts generally as they become
due; or the Company or any subsidiary of the Company shall call a meeting of its creditors with a view to arranging a composition,
adjustment or restructuring of its debts; or any corporate or other action is taken by the Company or any subsidiary of the Company
for the purpose of effecting any of the foregoing;

(iii)            
the Common Stock ceases to be quoted or listed for trading on the Principal Market and shall not again be quoted or listed
for trading on any Principal Market within five Trading Days of such delisting;

(iv)            
the Common Stock shall be suspended from trading on the Principal Market for a period of ten consecutive Trading Days;

(v)              
the Company is a party to any agreement memorializing (1) the consummation of any transaction or event (whether by means
of a share exchange or tender offer applicable to the Common Stock, a liquidation, consolidation, recapitalization, reclassification,
combination or merger of the Company or a sale, lease or other transfer of all or substantially all of the consolidated assets
of the Company) or a series of related transactions or events pursuant to which all of the outstanding shares of Common Stock are
exchanged for, converted into or constitute solely the right to receive, cash, securities or other property, (2) a consolidation
or merger in which the Company is not the surviving corporation, or (3) a sale, assignment, transfer, conveyance or other disposal
of all or substantially all of the properties or assets of the Company to another person or entity (each of (1), (2) and (3) a
“Change in Control”) unless in connection with such Change in Control, all Principal and accrued and unpaid
Interest due under this Note will be paid in full or the Holder consents to such Change in Control;

    	3

    	 

    

 

(vi)            
the Company shall fail to observe or perform any other material covenant, agreement or warranty contained in, or otherwise
commit any material breach or default of any provision of this Note, the Standby Equity Distribution Agreement between the Company
and the Holder dated April 22, 2014 (the “SEDA”), which is not cured within the time prescribed in this Note,
or the SEDA, as applicable, or if not so prescribed, within ten days after notice to the Company by the Holder of such material
failure, breach or default;

(vii)          
an event of default by the Company under any other material obligation, instrument, note or agreement for borrowed money
occurring after the Issuance Date of this Note and continuing beyond any applicable notice and/or grace period, and as a result
of which the obligations of the Company under such material obligation, instrument, note or agreement have been accelerated.

(5)              
REMEDY UPON DEFAULT. During the time that any portion of this Note is outstanding, if (i) any Event of Default has
occurred, the Holder, by notice in writing to the Company, may at any time and from time to time declare the full unpaid Principal
of this Note or any portion thereof, together with Interest accrued thereon to be due and payable immediately (the “Accelerated
Amount”) or (ii) any Event of Default specified in Section 4(a)(ii) has occurred, the unpaid Principal of the Note and
the Interest accrued thereon shall be immediately and automatically due and payable without necessity of further action. In addition,
for so long as an Event of Default has occurred and remains uncured, the Company shall pay default interest at the rate of 15%
per annum until the applicable Event of Default is cured. Such declaration may be rescinded and annulled by Holder at any time
prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent
thereon.

(6)              
REISSUANCE OF THIS NOTE. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking
by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the
Company shall execute and deliver to the Holder a new Note representing the outstanding Principal which Note (i) shall be of like
tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (iii)
shall have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv)
shall have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest from the Issuance Date.

(7)              
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:

 

    	4

    	 

    

 

	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) 985-830
	 	 
	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.

(8)              
No provision of this Note shall alter or impair the obligations of the Company, which are absolute and unconditional, to
pay the Principal of or Interest (if any) on, this Note at the time, place, and rate, and in the currency, herein prescribed. This
Note is a direct obligation of the Company. As long as this Note is outstanding, the Company shall not and shall cause its subsidiaries
not to, without the consent of the Holder, (i) amend its articles of incorporation, bylaws or other charter documents so as to
adversely affect any rights of the Holder under this Note; or (ii) enter into any agreement with respect to any of the foregoing.

    	5

    	 

    

 

(9)              
This Note shall not entitle the Holder to any of the rights of a stockholder of the Company, including without limitation,
the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders
or any other proceedings of the Company.

(10)          
This Note 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, in connection with any dispute arising under this
Note and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens
to the bringing of any such proceeding in such jurisdictions.

(11)          
If an Event of Default has occurred, then the Company shall reimburse the Holder promptly for all out-of-pocket fees, costs
and expenses, including, without limitation, reasonable attorneys’ fees and expenses incurred by the Holder in any action
in connection with this Note, including, without limitation, those incurred: (i) during any workout, attempted workout, and/or
in connection with the rendering of legal advice as to the Holder’s rights, remedies and obligations, (ii) collecting any
sums which become due to the Holder in accordance with the terms of this Note, (iii) defending or prosecuting any proceeding or
any counterclaim to any proceeding or appeal; or (iv) the protection, preservation or enforcement of any rights or remedies of
the Holder.

(12)          
Any waiver by the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of this Note. The failure of the Holder to insist upon
strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver must be in writing.

(13)          
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and
if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and
circumstances. If it shall be found that any Interest or other amount deemed Interest due hereunder shall violate applicable laws
governing usury, the applicable rate of Interest due hereunder shall automatically be lowered to equal the maximum permitted rate
of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would
prohibit or forgive the Company from paying all or any portion of the Principal of or Interest on this Note as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, and
the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants
that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such as though no such law had been enacted.

    	6

    	 

    

 

(14)          
Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be
made on the next succeeding Business Day.

(15)          
Assignment of this Note by the Company shall be prohibited without the prior written consent of the Holder. Prior to the
Maturity Date, the Holder shall not sell, transfer, negotiate or otherwise make any disposition of this Note or any portion thereof
without the prior written consent of the Company.

(16)          
THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’
ACCEPTANCE OF THE NOTE PURCHASE AGREEMENT AND THIS NOTE.

(17)          
CERTAIN DEFINITIONS For purposes of this Note, the following terms shall have the following meanings:

(a)               
 “Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday
in the United States or a day on which banking institutions in the United States are authorized or required by law or other government
action to close.

(b)              
“Installment Amount” means the principal and interest payment due on an Installment Date as set forth
on Schedule III hereto.

(c)               
“Installment Date” means each date on which Installment Amounts are due to be paid in accordance with
Schedule III hereto.

(d)              
“Issuance Date” means the Closing Date (as that term is defined in the Note Purchase Agreement.

 

 

 

[Signature Page Follows]

    	7

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by a duly authorized officer as of May 20, 2015.

 

 

	 	
        COMPANY:

         

	 	
        OMAGINE, INC.

         

         

	 	 
		By:/s/  Charles P. Kuczynski
	 	Charles P. Kuczynski
	 	Vice-President & Secretary
	 	 

 

 

    	8

    	 

    

 

Schedule I

(Company Account Information)

 

 

 

 

Omagine, Inc.

Account Number  610-98230-3

 

HSBC Bank

ABA # 021001088

Swift ID: MRMDUS33

 

Fifth Avenue Branch

452 Fifth Avenue

New York, N.Y. 10118

 

Bank Contact: Kevin O’Dea

Telephone: 212-525-4094

 

    	9

    	 

    

 

Schedule II

(Holder Account Information)

 

YA Global Master SPV Ltd.

-Wiring Instructions-

 

*Account Currency: USD

Beneficiary Bank: The Private Bank and Trust Company 

120 South LaSalle – Chicago,
IL 60603

 

 

ABA/Routing Number: 071006486 (for Domestic wires)

 

BIC/SWIFT Code: PVTBUS44 (for International wires)

 

Beneficiary Account Number: 0002439214

 

Beneficiary Account Name: YA Global Master SPV Ltd  

1012 Springfield Ave. 

Mountainside NJ 07092 

 

    	10

    	 

    

 

 

Schedule III

Repayment Schedule

 

 

 

 

 

 

 

11Exhibit 10.3

 

 

May 20, 2015

 

		RE:	Closing Statement in connection with the Note Purchase Agreement between Omagine Inc. (“Company”) and YA
Global Master SPV, Ltd. (“Investor”). 

 

This letter shall constitute the Closing Statement
agreed upon between the Company and the Investor regarding various payments and transfers to be made by the parties in connection
with Note Purchase Agreement dated May 20, 2015 (“Subscription Agreement”).

 

The parties hereby agree that the Investor
shall make the payments and transfers set forth below in accordance with the wire instructions to the account of each recipient
as set forth on Schedule A attached hereto (or otherwise provided to the Investor):

 

 

	Gross Proceeds to be paid to the Company:	 	$	500,000.00	 
	Less:	 	 	 	 
	Commitment Fee to be paid to the YA Global II SPV LLC (as designee of the Investor):	 	$	(50,000.00	)
	 	 	 	 	 
	Net Proceeds to the Company	 	$	450,000.00	 
	 	 	 	 	 

 

 

[SIGNATURE PAGE IMMEDIATELY TO FOLLOW]

 

    	1

    	 

    

 

Omagine Inc. 

 

 

By: /s/ Charles P. Kuczynski

 

	Name:  Charles P. Kuczynski
	Title:  Vice President and Secretary

 

 

 

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

 

 

 

 

    	2

    	 

    

 

 

SCHEDULE A

ACCOUNT INSTRUCTIONS

 

 

 

	Omagine Inc.  	 
	
        Omagine, Inc.

        Account Number  610-98230-3

         

        HSBC Bank

        ABA # 021001088

        Swift ID: MRMDUS33

         

        Fifth Avenue Branch

        452 Fifth Avenue

        New York, N.Y. 10118

         

        Bank Contact: Kevin O’Dea

        Telephone: 212-525-4094

         
	 
	 	 

 

YA Global II SPV LLC:

 

Instructions on file.

 

 

 

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}]]