Exhibit 10.16


 


SHORT TERM FINANCING AGREEMENT


 


THIS AGREEMENT is made the 7th day of October 2005.


 


BETWEEN:


 


1.               Leveret International
Inc., a Liberian Corporation of 80 Broad street, Monrovia, Liberia (hereinafter
the “Lender”)


 


2.               Baltic Navigation
Company of Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960,
Marshall Islands (hereinafter the “Borrower”).


 


WHEREAS :


 


The Borrower has requested the Lender to make
available to it a short term financing of USD 620,000 (Six Hundred and Twenty Thousand),
(hereinafter called the “Facility”), which the Lender agreed to grant on the
following terms and conditions:


 


A.           TERMS OF FACILITY


 


a.               The Lender makes
available to the Borrower the Facility to be used for the finance the payment
of the 10% deposit for the acquisition of the motor tanker “OMEGA AF DONSO”,
IMO No.8027200 from Messrs PARTEDERIET for Omega Af Donso of Sweden as per
Memorandum of Agreement dated 7 October 2005. The Facility will bear no
interest at all.


b.              The Borrower hereby
acknowledges states and confirms receipt of the Facility.


c.               The Facility is
repayable upon Lender’s first written demand for the repayment of the Facility
in part or in whole not later than four (4) months as of today.


 


B.             REPRESENTATIONS AND
WARRANTIES


 


The Borrower hereby represents and warrants to
the Lender, that:


 


a.               The Borrower is a
company duly organized and validly existing and in good standing under the laws
of the Republic of Marshall Islands and has the corporate authority to
own/acquire assets and carry out its business and other activities as they are
now or in the future going to be conducted.


 





















 


b.             The Borrower has the
power to enter into and perform this Agreement and to authorize the execution
of this Agreement and any other documents related thereto.


c.              This Agreement
constitutes legally binding obligation of the Borrower and is enforceable in
accordance with its terms.


d.             The Borrower has the
legal ability to undertake towards the Lender the repayment of the Facility
upon Lender’s first demand in whole or in part(s) in foreign exchange in any
part of the world and in Greece and the Borrower has and/or will have in Greece
available funds of its own or through its affiliate companies or through
further banking borrowing facilities in foreign exchange free and not subject
to any mandatory assignment to the Bank of Greece, pursuant to any provisions
of any law, decision or regulation of any governmental body or other regulatory
authority and out of such funds the Borrower may without any restrictions whatsoever
effect payments to the Lender in connection with this Agreement.


 


C.             LAW/JURISDICTION


 


a.               This Agreement shall
be governed and construed in all respects in accordance with the laws of
Greece.


b.              All disputes under
this Agreement including enforcement proceedings and the taking of any
conservative measures are submitted to the exclusive jurisdiction of the Courts
of Piraeus.


 


IN WITNESS whereof these presents were issued the date
first above written.


 


	
  THE LENDER

  	
  THE BORROWER

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Dimitrios Melisanidis

  	
   

  	
  By:

  	
  /s/ Apostolos Manitsas

  	
   

  
	
  Dimitrios Melisanidis

  	
  Apostolos Manitsas

  
						



 


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