Document:

Exhibit 10.3

 

For Immediate Release

 

Omagine Completes Land Rights Registration
Procedures

 

Average Value is $718,614,000

 

 

New York - July 9, 2015 - Omagine,
Inc. [OTCQB: OMAG] today announced that its 60% owned subsidiary, Omagine LLC (“Omagine”), has signed and registered
with the Government of Oman (the “Government”), a Usufruct Agreement (“UA”) which legally perfects Omagine’s
ownership of the development rights (the “Usufruct Rights”) over 245 acres of beachfront land (the “Land”)
in the Sultanate of Oman (“Oman”). Omagine, Inc. and Omagine are sometimes referred to collectively herein as the “Company”.

Omagine is developing a $2.5 billion
tourism and real-estate project (the “Omagine Project”) on the Land. In October 2014, Omagine signed the Omagine Project
Development Agreement (the “DA”) with the Government. The Omagine Project is planned to be an integration of cultural,
entertainment and residential components. The Usufruct Rights include among other things, Omagine’s right pursuant to the
DA, to sell the Land and/or properties developed on the Land to individual or corporate persons of any nationality worldwide.

To establish the value of its Usufruct
Rights and properly record such value in its financial statements, Omagine contracted with three separate real-estate valuation
firms, each of which is well known in Oman and Dubai and all of which have recognizable worldwide brands in the real-estate valuation
business. These firms were tasked to provide Omagine with the value of its Usufruct Rights. All three valuations were conducted
in accordance with the professional standards specified by the Royal Institution of Chartered Surveyors (“RICS”) and
International Financial Reporting Standards (“IFRS”).

		·	In November 2014, Omagine engaged the
Oman office of Savills (http://www.savills.com/ (“Savills”) operating as Arabian Real Estate LLC http://www.savills.om).
Savills provides real estate services from over 600 offices worldwide, is listed on the London Stock Exchange, and is a FTSE 250
Index company.

		·	In December 2014, Omagine engaged a Dubai,
UAE firm with extensive experience in Oman: DTZ International Ltd. (http://www.dtzglobal.com) (“DTZ”). DTZ is one of
the top three global commercial real estate service companies, with more than 28,000 employees operating across more than 260 offices
in 50 countries and $63 billion in transaction volume. 

		·	In January 2015, Omagine engaged another
Dubai, UAE firm: Jones Lang LaSalle, UAE Limited, Dubai Branch (http://www.jll-mena.com/mena/en-gb/locations/Our-locations-in-MENA/dubai)
(“JLL”). JLL has 53,000 employees operating across more than 230 offices in 80 countries.

The Savills and DTZ final valuation reports
were received by Omagine several months ago. The JLL final valuation report was received by Omagine on July 7, 2015.

Although the Company believes that JLL’s
valuation may be, and probably is a statistical outlier, we have nevertheless included it when calculating the average value of
Omagine’s Usufruct Rights.

The Usufruct Rights valuations by the
three aforementioned firms are summarized in the table below:

 

    	 

    	 

    

 

	Usufruct Rights Valuation
	Valuation Firm	 	Omani Rials	 	 	U.S. Dollars *	 
	Savills	 	OMR 295,000,000	 	$	766,233,000	 
	DTZ	 	OMR 385,000,000	 	$	999,999,000	 
	JLL	 	OMR 150,000,000	 	$	389,610,000	 
	Average	 	OMR 276,666,667	 	$	718,614,000	 
	* (based on July 7, 2015 XE Currency Converter exchange rate)

Omagine is consulting with its IFRS
accounting consultant, PriceWaterhouseCoopers LLP, and will soon determine the correct method in accordance with IFRS of accounting
for the $718,614,000 average value of its Usufruct Rights in its financial statements. Omagine’s financial statements are
prepared in accordance with IFRS and are audited by Deloitte & Touche (M.E.) & Co. LLC.

The shareholders of Omagine are:

		i.	Royal Court Affairs which owns 25%, and,   
	 	 	 
	 	ii.	Two subsidiaries of Consolidated Contractors International
Company, SAL (“CCC”), which collectively own 15%, and
	 	 	 
	 	iii.	Omagine, Inc. which owns
60%.

Omagine’s Managing Director and
the Company’s president, Frank Drohan commented: “The registration of the UA with the Government is a welcome milestone
event. Now that we have unfettered access to the Land we are rapidly progressing the development of the Omagine Project and the
finalization of the CCC contract. We are pleased that the valuation process for Omagine’s Usufruct Rights is now complete
and with the UA now registered, the value of the Usufruct Rights will be accounted for in Omagine’s financial statements.
Subsequently, the appropriate percentage of such value (presently 60%) will also be accounted for in the Company’s consolidated
financial statements in accordance with accounting principles generally accepted in the United States (USGAAP). We have expended
considerable effort and resources during the past many months to the Company’s and the Omagine Project’s great advantage”.

Sam Hamdan, Omagine’s Deputy-Managing
Director remarked: “There is enormous investor and banking liquidity in Oman and the GCC. With the Usufruct Agreement now
registered and the imminent conclusion of our consultant reviews, we expect to be making several crucial consultant appointments
in the coming months, including: a financial adviser, hospitality adviser, real-estate adviser, master planner, engineering consultant,
construction management consultant and program manager.”

Agron Telaku, Omagine’s Vice-President
of Finance remarked, “During the past months several important tasks were completed. We completed an independent third party
update to our feasibility study and we also had our internal financial model updated by specialist real-estate investment bankers
and advisers. The updated feasibility study, land valuation reports and financial model have been invaluable in the numerous discussions
we have held with many investors and major local and international banks.”

Telaku continued: “We have witnessed
a large appetite for both investing in Omagine’s equity and for providing project financing debt facilities for the Omagine
Project’s development. The banks with which we and CCC have met have indicated that Omagine’s usufruct rights over
the project land can and will be utilized as collateral to support project financing debt facilities. We have also met with several
very high net-worth investors introduced by Mr. Drohan, Mr. Hamdan and CCC who have indicated a high level of interest in becoming
Omagine equity investors. These investor discussions are ongoing”.

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About Royal Court Affairs.

Royal Court Affairs is an Omani organization
representing the interests of His Majesty, Sultan Qaboos bin Said, the ruler of Oman.

About Consolidated Contractors.

Consolidated Contractors International
Company, SAL is a multi-national construction and engineering company with over $5 billion of annual revenue, 130,000 employees
worldwide and operating subsidiaries in, among other places, every country in the Middle East and North Africa (the “MENA
Region”).

About Omagine, Inc.

Omagine, Inc. is a publicly traded U.S.
company (Stock Symbol: OMAG) with 17,386,111 common shares presently outstanding. The Company is focused on real-estate,
entertainment and hospitality opportunities in the MENA Region and on the design and development of unique tourism destinations
that are thematically imbued with culturally aware, historically faithful, and scientifically accurate entertainment experiences.
Governments in the MENA Region are seeking to diversify their economies and create employment for their citizens via the development
of tourism destination projects. It is the Company’s opinion that this governmental strategic vision combined with the enormous
financial resources in the MENA Region will continue to present superb development opportunities.

Investors or interested parties may visit
Omagine’s website at www.omagine.com for more information about the Company or http://agoracom.com/ir/omagine which
is the Company’s investor relations website.

This press release may contain
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements contained in
this press release that are not historical facts, may be deemed to be forward-looking statements. Words such as "expects",
"intends", "plans", "may", "could", "should", "anticipates", "likely",
“probably”, "believes" and words of similar import also identify forward-looking statements.  These
statements are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other
information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management.
Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date hereof.  Additional
information on risks and other factors that may affect the business and financial results of Omagine, Inc. can be found in the
filings (the “SEC Filings”) of Omagine, Inc. with the United States Securities and Exchange Commission (the “SEC”).
Investors are urged to review the Company’s SEC Filings.

Contact:

Omagine, Inc.

Corporate Inquiries

Charles P. Kuczynski, Vice-President

Telephone:+1-212-563-4141 -- Ext.
208

Email:charles.kuczynski@omagine.com

 

3Exhibit 10.4

 

	
	
          

        Sultanate of Oman

        Ministry of Tourism

        Muscat

 

	Contract No.:
	Name of Project: Omagine Project
	    Governorate/State/District: Muscat
	Name of Investment Company (Beneficiary): Omagine LLC
	 
	USUFRUCT CONTRACT
	 
	THIS USUFRUCT CONTRACT (“Contract”) is made and entered into on the __ day of         2015, BETWEEN
	 
	
        THE Government of the Sultanate of Oman, represented in this
        Contract by the MINISTRY OF TOURISM

        Address: P.O. BOX 200, P.C. 115, Madinat Al-Sultan Qaboos,
        Sultanate

        of Oman, referred to hereinafter as (the “First Party”);
        and

	 
	Omagine LLC, a limited liability company registered under the laws of Oman and having commercial registration number 1080151. Address: PO Box 708, Madinat Al Sultan Qaboos, PC 115, Sultanate of Oman, Referred to hereinafter as the “Second Party”
	 
	Preamble
	 
	Whereas, the First Party owns the plot of land No. (1) in Block No. (74SW) located in Al Hail North, Governorate/State/District of Al Seeb, with a total area of (1000000 square meters) shown in the attached drawing referred to hereinafter (the “Land”).
	Whereas, the First Party has agreed to award the Second Party the rights of Usufruct over the Land in order to implement the works set out in (a) the master plan of the Project approved by the First Party pursuant to the Development Agreement and (b) the Development Agreement,
	Whereas the First Party and the Second Party have signed a Development Agreement setting out in detail the terms and conditions governing the development, use and sale of the Land.
	 
	Therefore, the Parties agreed to conclude this Contract according to the following terms and conditions :
	 
	ARTICLE 1
	 
	1. The foregoing Preamble, the Laws and Regulations governing lands held in Usufruct in the Sultanate of Oman shall be part and parcel of this Contract, and shall be concurrently read and interpreted with them.  This Contract shall also be an integral part of the Development Agreement entered into between the Parties, together with the schedules thereto. In case of any conflict between this Usufruct Contract and the Development Agreement, the provisions of the Development Agreement shall prevail.
	2. The Second Party acknowledges     to have lawfully inspected the Land held in Usufruct in a manner that excludes ignorance, and agrees to hold it in Usufruct, without any right of recourse on the First Party with respect to rights other than those provided for in the Development Agreement.
	3. The Second Party shall be entitled to divide the Land into separate parcels, blocks, units or parts and to assign all or part of its rights hereunder to third parties pursuant to the Law promulgated by Royal Decree 12/2006 and its Executive Regulations on   ownership of real estate in integrated tourism complexes.

 

    	 

    	 

    

 

 

	 
	ARTICLE 2: TERM OF USUFRUCT
	 
	1. The First Party  shall, pursuant to this Contract, grant the Second Party,  the Usufruct rights over  the Land for a period of fifty years  (the “Usufruct Term”), renewable subject to  a written agreement between the Parties
	2. The Usufruct Term shall commence from the date of registration of this Contract.
	 
	ARTICLE 3: OBLIGATIONS OF THE FIRST PARTY
	 
	1. The First Party shall deliver the Land free of any encumbrances or rights limiting the Usufruct and warrants that no government body or third party will obstruct the Second Party during the Term of Usufruct; failing which, the Second Party shall have the right to terminate this Contract without prejudice to his right to demand payment of damages as set out in the Development Agreement.
	2 The First Party shall register this Contract with the Real Estate Registry at the Ministry of Housing, Sultanate of Oman on or immediately after ratification of the Development Agreement. The registration charges shall be at the expense of the Second Party.
	3 The Second Party shall be granted exemption from payment of Usufruct rates and incentives and concessions in accordance with pertinent regulations as set out in the Development Agreement.
	
        4. The Second Party shall be exempted from payment of the
        Annual Usufruct Rent during the first five (5) years of this Contract starting from the date of the registration of the Usufruct
        Rights in the name of the Second Party

         

	ARTICLE 4: OBLIGATIONS OF THE SECOND PARTY
	 
	The Second Party commits to:
	 
	1. Pay an annual usufruct fee being(0.300 Omani Riyals multiplied by the Existing Land (in square meters) X 30%), provided that the Annual Usufruct Fee shall be reduced in proportion with any part of the Existing Land that the Government has received the Land Price for.
	2. Pay to the First Party a delay penalty equivalent to six percent (6%) per annum of the unpaid balance of the Annual Usufruct Rent. This penalty shall apply from the due date through the date of settlement.
	3. Pay all chargeable taxes and levies as they fall due, unless fully or partly exempted from them pursuant to the provisions of laws and regulations prevailing in the Sultanate.
	4. Take all necessary measures to protect the boundaries of the Land from any trespassing and maintain the Land, buildings and installations constructed by the Second Party or over which the Second Party has usufruct rights pursuant to this Contract and which were constructed pursuant to the Development Agreement and strictly use it for the intended purpose only.
	5. Comply with the terms and conditions of the Development Agreement and all applicable laws and regulations in the Sultanate of Oman.
	6. The Second Party shall begin executing the Project according to the provisions of the Development Agreement.
	7. The Second Party shall not take any legal or physical action in relation to the Land subject of Usufruct for a period beyond the expiry date of the Usufruct.
	8. Insure the buildings and installations together with fixed and movable assets constructed pursuant to the Development Agreement and owned by the Second Party or over which the Second Party has usufruct rights pursuant to this Contract (collectively, “Installations”) during the Contract Term against any “Insurable Risk” with respect to losses or damages to such Installations regardless of how they are caused, subject always to the reasonable  exclusions of the insurance coverage in force as agreed, provided that the insurance covers the value of such Installations. In the event that such Installations are destroyed or damaged as a result of an Insurable Risk, the Second Party shall file an insurance claim with respect to such damage or destruction (an “Installation Claim”). Upon obtaining the necessary permits and approvals from the First Party, the Second Party shall apply the proceeds, if any, received from an insurer with respect to any such Installation Claim (“Proceeds”) to the reconstruction and restoration of the damaged or destroyed Installations that are the subject matter of such Installation Claim. The Second Party shall use its best efforts to repair such Installations such that they are returned to the state they were in immediately prior to the occurrence of such damage or destruction.

 

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	ARTICLE 5: DISPOSAL OF THE USUFRUCT
	 
	1. Subject to Article 2 of the Royal Decree No. 12/2006, the Second Party, in order to finance the Project, shall have the right to assign all or part of the rights granted to it by virtue of this Contract to another party, or to mortgage the Usufruct right applicable to the Land and all the structures existing thereon as set out in the Development Agreement.
	2.
    The deed of assignment or mortgage shall stipulate that the rights and obligations of the Second Party, as stipulated under
    this  Contract shall apply to the transferee or the mortgagee in lieu of the Second Party, even in the event that
    the Second Party ceases to exist as a legal entity.
	3. In accordance with the provisions of the law promulgated by Royal Decree No. (12/2006) and its Executive Regulations, the Second Party shall be entitled to sell the Land pursuant to the terms and conditions stipulated in the referred to Law and its Executive Regulations as well as the provisions of the Development Agreement
	 
	ARTICLE 6: OBLIGATORY SUSPENSION OF THE PROJECT DUE TO A FORCE MAJEURE
	 
	In cases of Force Majeure that prevent any of the parties to perform their duties, the pertinent provisions in the Development Agreement shall apply.

  

	ARTICLE 7: TERMINATION OF CONTRACT
	 
	In the event that the Second Party fails to complete the Minimum Build Obligations as set out in the Development Agreement, the First Party may terminate this Contract provided that the First Party also terminates the Development Agreement. Repossession and compensation shall be governed by the Development Agreement.
	 
	ARTICLE 8: General Provisions
	 
	1. Upon expiry of this Contract and unless it has been renewed or extended by the Parties, the buildings and structures on the Land which have not yet been duly transferred from Usufruct to freehold title (i.e. if transfer of title has not been duly registered with the government or for which the right to acquire freehold title has not been validly assigned), shall become the property of the First Party, all subject to the provisions of Development Agreement.
	2. The termination of this Contract in line with Article seven shall be without prejudice to the registered rights of third parties in connection with the Usufruct, such as mortgage, or any other usufruct right accruing during the Usufruct Term.
	 
	ARTICLE 9: APPLICABLE LAW AND DISPUTE RESOLUTION
	 
	1. This Contract shall be governed by the Laws, Rules and regulations applicable in the Sultanate of Oman.
	2. Any dispute arising between the Parties in connection with any of the terms of this Contract shall be settled in accordance with the dispute resolution mechanism and arbitration as set out in the Development Agreement.
	3. The Parties agree that in case of any conflict between this Contract and the Development Agreement, the Development Agreement shall prevail.
	4. All provisions of the Development Agreement shall survive the termination of the Development Agreement to the extent they are applicable to the Usufruct.
	 
	ARTICLE 10: NOTICES
	 
	1. Both Parties have designated the addresses shown in the Preamble of this Contract as their addresses. Each Party shall notify the other Party in case of a change in address and no correspondence shall be valid unless sent to this address.
	2. This Contract has been drawn in five (5) original copies signed by the Parties, a copy of which is delivered to the Second Party, two copies to the First Party, and a copy to each of the Ministry of Finance and the Real Estate Registry within the Ministry of Housing.

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	ARTICLE 11: CONTROLLING LANGUAGE
	 
	In the event that this Contract is read in a language other than the Arabic language, the Parties hereto acknowledge and agree that the Arabic language version hereof shall prevail in case of inconsistency or contradiction in interpretation or translation of this Contract. 

 

First Party(Ministry)

 

SIGNED for and on behalf of THE MINISTRY 

OF TOURISM OF THE SULTANATE OF OMAN:

 

	Signature:
    	/s/ H.E. Ahmed bin Nasser bin Hamed Al Mahrizi	 
	 	His Excellency Ahmed bin Nasser bin Hamed
        Al Mahrizi

Minister of Tourism
	Stamp:	(Ministry of Tourism Stamp Affixed)

 

	SIGNED for and on behalf of Omagine LLC:

 

	Signature:
    	/s/ Frank J. Drohan	 
	 	Frank J. Drohan

Managing Director
	Stamp:	(Omagine LLC Stamp Affixed)

 

SIGNED for and on behalf of THE MINISTRY OF 

HOUSING OF THE SULTANATE OF OMAN: 

 

	Signature:
    	/s/ Mohmood Khamis Al Khuzairi	 
	 	Mohmood Khamis Al Khuzairi

Authorized Person, Ministry of Housing
	Stamp:	(Ministry of Housing Stamp Affixed)

 

4

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