Exhibit 10.7


 


OPTION AGREEMENT, DATED JUNE 3,
2005, BY

AND BETWEEN AEGEAN BUNKERING SERVICES

INC. AND SEVERNAV S.A.


 





















 


OPTION AGREEMENT


 


This OPTION AGREEMENT
(“Agreement”) is made on the 3rd of June 2005 by and
between:


 


(1)          Aegean
Bunkering Services Inc a corporation organized and existing under the Laws of
Marshal Islands (hereinafter called the “BUYER”); and


 


(2)          Severnav
Shipyard S.A. a corporation organized and existing under the Laws of Romania
(hereinafter called the “SELLER”).


 


In consideration of two
Shipbuilding Contracts No 222 and No 223, each dated 3rd
of June 2005 entered into between the SELLER and the respective two (2) buying
Companies which were nominated by the BUYER for two (2) firm CMT 319 Oil
Tankers (having Hull Number N 2220000, and N 2230007) and the payment of EURO I
by the BUYER to the SELLER and other good valuable consideration, the parties
hereto agree two plus two optional vessels as follows:


 


1.  Specification


 


The vessels will be built by
the Seller based on the contract documents and any amendments thereto in
respect of the CMT 319 Oil Tankers agreed and signed on 3rd
of June 2005.


 


2. 
Price


 


Euro 6,560,000.00 (Euro Six
Million Five Hundred and SixtyThousand only) for each vessel.  However it is agreed that the price of the optional
vessels may be adjusted upwards or downwards subject only to the costs and
prices of the materials, labor, machinery and equipment changing from the time
of contracting vessels to the time of signing of the contracts based on
declaring the options.


 


3.  Quantity


 


Two plus two (2+2) Vessels.


 


4.  Option Declaration Date


 


The BUYER shall exercise its
right and declare the option to purchase the first two (2) optional vessels (No
3 and No 4) by sending a fax to the SELLER (to the fax number referred to in
Article 17 of each Contract) on or before the launching of the first of the two
firm CMT 319 Oil Tankers (being Hull No N 2220000).


 


The BUYER shall exercise its
right and declare the option to purchase the second two (2) optional vessels
(No 5 and No 6) by sending a fax to the SELLER (to the fax number referred to
in Article 17 of each Contract) on or before the delivery of the first of the
two firm CMT 319 Oil Tankers (being Hull No N 2220000).


 


The SELLER and the BUYER
undertake to sign a New Buildings Contract for each optional vessel
(substantially on the same terms as each Contract) within thirty (30) days from
the date on which notice of the exercise of the option is given to the SELLER.


 





















 


5.  Terms of payment


 


The Contract Price for each optional
vessel shall be paid in the following way:


 


10% upon
effectiveness of the contract


15% upon
steel-cutting


15% upon
keel-laying


20% upon
launching


40% upon
delivery


 


5.  Bank Guarantees


 


Security
for Payment of Installment Before Delivery:


 


The BUYER shall provide the
SELLER with a Bank Guarantee issued by a first class international bank,
acceptable to SELLER’s bank and the SELLER.


 


The Bank Guarantee shall
guarantee the BUYER’s obligations for payment of 2nd, 3rd, 4th and 5th
instalments of the contract and be delivered to the SELLER concurrently with
the Shipbuilding Contract becoming effective. 
The amount of such Bank Guarantee shall be equal to the 90% of the
Contract price.  The form and substance
of this Bank Guarantee shall, in all respects, be acceptable to SELLER’s bank
and the SELLER.


 


Refund
Guarantee:


 


As security to the BUYER the
SELLER shall provide the BUYER before receipt by the SELER of each instalment
of the Contract Price with a Bank Guarantee issued by a first class bank
acceptable in all respects to BUYER’s bank and the BUYER for the 1st, 2nd, 3rd
and 4th instalments respectively.  Such
Bank Guarantees will guarantee the SELLER’s obligation for refunding to the
BUYER instalments of 1st, 2nd, 3rd and 4th already received by the SELLER,
through SELLER’s finance bank, when any such instalment becomes refundable to
the BUYER, in accordance with the terms of this Contract.


 


The issuance and delivery to
the BUYER of the relevant Bank Guarantee for the 1st instalment
will be a pre-condition to any of the BUYER’s payment obligations becoming
effective.  If it will be requested that
the Seller’s Bank Guarantees shall be re -guaranteed by a third bank, this will
be for the cost of the Buyer.


 


7.  Time of Delivery of Optional Vessels


 


The Delivery Times of the
optional Vessels are estimated as follows:


 


As for Vessel
no. 3 – Three Months after Vessel No 2


As for Vessel
no. 4 – Three Months after Vessel No 3


As for Vessel
no. 5 – Three Months after Vessel No 4


As for Vessel
no. 6 – Three Months after Vessel No 5


 


8.  Place of Delivery


 


The Vessels will be delivered
at Constantza, Romania.


 


9.  Contract Terms and Conditions


 


Form and substance of the
Shipbuilding Contract of the Optional Vessels shall be the same as those agreed
for the Firm Vessels with logical amendments.


 


10.  Governing Law


 


This Agreement shall be
governed by, and construed in accordance with English Law.  Any dispute under this Agreement shall be
referred to arbitration in London and the


 





















 


provisions of Article 13 of
each Contract shall apply (mutaus mutandis) to this Agreement.


 


The BUYER: Aegean Bunkering
Services


 


	
  By:

  	
  Signature:

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Apostolos Manitsas

  	
   

  
	
   

  	
  Name:  Apostolos Manitsas

  
	
   

  	
  Title:  President Director

  
	
   

  	
   

  
	
  Date:

  	
  3rd
  of June 2005

  



 


 


	
  Witnessth
  by:

  	
   

  
	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Intermodal
  Shipbrokers Co.

  



 


 


The SELLER:                                                       Severnav
Shipyard S.A.


 


 


	
  By:

  	
  Signature:

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Stehan [ILLEGIBLE]

  	
   

  
	
   

  	
  Name:  Stehan Stancioiu

  
	
   

  	
  Title:  General Director

  
	
   

  	
   

  
	
  Date: 3rd
  of June 2005

  



 


 


	
  Witnessth
  by:

  	
   

  
	
   

  	
  CMT Engineering Ltd.

  
	
   

  	
  /s/
  [ILLEGIBLE]