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-PN5	Original
    Principal Amount:$400,000

 

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 II PN, 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) pursuant to the terms of this Promissory Note (the “Note”).

 

This
Note is being issued pursuant to that certain Note Purchase Agreement dated as of June ___, 2016 (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 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.  

 

     

     

    

 

(b)          Maturity
Date. All amounts owed under this Note shall be due and payable on June 15, 2017 (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)          (i)
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, as amended (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.

 

    	 	4	 

     

    

 

(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 electronic
mail (provided that the electronic mail transmission is not returned in error or the sender is not otherwise notified of any error
in transmission); 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.
	 	136
Madison Avenue

        Suite
550

        New
        York, NY 10016

	 	 
	 	Attention:  Chief
    Executive Officer
	 	Telephone:  (212)
    563-4141
	 	Email:
                                         Charles.Kuczynski@omagine.com

        Email:         Frank.Drohan@omagine.com

	 	 
	With
    a copy to:	Sichenzia
    Ross Friedman Ference LLP
	 	61
    Broadway
	 	New
    York, New York 10006
	 	Attention: Michael
    Ference
	 	Telephone:
    (212) 930-9700
	 	Email: MFerence@srff.com

 

	If
    to the Holder:	YA
    II PN, Ltd.
	 	1012
    Springfield Avenue
	 	Mountainside,
    NJ 07092
	 	Attention: Mark
    Angelo
	 	Telephone: (201)
985-8300

        Email: 
        MAngelo@yorkvilleadvisors.com

	 	 
	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 electronic mail address 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, or (ii) provided by a nationally
recognized overnight delivery service, shall be rebuttable evidence of personal service, or receipt from a nationally recognized
overnight delivery service in accordance with clause (i) or (ii) 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. The Holder shall be entitled
to assign, sell, transfer, negotiate or otherwise make any disposition of this Note in whole or in part to any person or entity
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 June 22, 2016.

 

	 	COMPANY:

	 	 	 
	 	OMAGINE, INC.

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

 

     

     

    

 

Schedule
I

(Company
Account Information)

 

Omagine,
Inc. - (Confidential)

 

     

     

    

 

Schedule
II

(Holder
Account Information)

 

YA
II PN, LTD. - Confidential

 

     

     

    

 

Schedule
III

Repayment
Schedule

 

	Interest	 	 	10	%
	Initial Principal	 	$	400,000.00	 
	Start Date	 	 	2-Jun-16	 

 

	Installment
    Date	 	Principal
                                         Payments
 
	 	 	Interest
                                         Payments
 
	 	 	Installment
                                         Amount
 
	 
	22-Jun-16	 	0.00	 	 	0.00	 	 	0.00	 
	15-Jul-16	 	 	40,000.00	 	 	 	2,520.55	 	 	 	42,520.55	 
	15-Aug-16	 	 	40,000.00	 	 	 	3,057.53	 	 	 	43,057.53	 
	15-Sep-16	 	 	35,000.00	 	 	 	2,717.81	 	 	 	37,717.81	 
	15-Oct-16	 	 	35,000.00	 	 	 	2,342.47	 	 	 	37,342.47	 
	15-Nov-16	 	 	35,000.00	 	 	 	2,123.29	 	 	 	37,123.29	 
	15-Dec-16	 	 	25,000.00	 	 	 	1,767.12	 	 	 	26,767.12	 
	15-Jan-17	 	 	25,000.00	 	 	 	1,613.70	 	 	 	26,613.70	 
	15-Feb-17	 	 	25,000.00	 	 	 	1,401.37	 	 	 	26,401.37	 
	15-Mar-17	 	 	35,000.00	 	 	 	1,073.97	 	 	 	36,073.97	 
	15-Apr-17	 	 	35,000.00	 	 	 	891.78	 	 	 	35,891.78	 
	15-May-17	 	 	35,000.00	 	 	 	575.34	 	 	 	35,575.34	 
	15-Jun-17	 	 	35,000.00	 	 	 	297.26	 	 	 	35,297.26	 
	 	 	 	400,000.00	 	 	 	20,382.19	 	 	 	420,382.19Exhibit 10.3

 

June
22, 2016

 

		RE:	Closing
                                         Statement in connection with the Note Purchase Agreement between Omagine Inc. (“Company”)
                                         and YA II PN, 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 June 22, 2016 (“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:	 	$	400,000.00	 
	Less:	 	 	 	 
	Commitment Fee to be paid to the YA Global II SPV LLC (as designee of the Investor):	 	$	(40,000.00	)
	 	 	 	 	 
	Net Proceeds to the Company:	 	$	360,000.00	 

 

[SIGNATURE
PAGE IMMEDIATELY TO FOLLOW] 

 

     

     

    

 

	 	Omagine
    Inc. 
	 	 
	 	By:	/s/ Charles
    P. Kuczynski
	 	Name:  	Charles
    P. Kuczynski
	 	Title:	Vice
    President & Secretary
	 	 
	 	YA
    II PN, 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

 

     

     

    

 

SCHEDULE
A

ACCOUNT
INSTRUCTIONS

 

 

 

	Omagine
    Inc. -  Confidential	 
	 	 
	 	 

 

YA
Global II SPV LLC and the Investor:

 

Instructions
on file.

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