Exhibit 10.17


 


SHORT TERM
FINANCING AGREEMENT


 


THIS AGREEMENT is made
today: 10th October 2005.


 


BETWEEN:


 


LEVERET INTERNATIONAL INC.,
a Liberian Corporation of 80 Broad street, Monrovia, Liberia (the “Lender”) and


MILOS MARITIME INC, and
SERIFOS MARITIME INC, both of Ajeltake Road, Ajeltake Island, Majuro, Marshall
Islands MH96960, Marshall Islands (hereinafter the “Co-Borrowers”).


 


WHEREAS :


 


The Co-Borrowers have requested the Lender to
make available to them a short term joint and several Loan facility of up to
US$ 2,350,000.00 (hereinafter called the “Facility”), which the Lender agreed
to grant on the following terms and conditions:


 


A. TERMS OF FACILITY


 


a.               The Lender hereby
agrees to make available to the Co-Borrowers the Facility for the purpose of financing:


i)                                         the second
installment amounting to US$ 1,020,000 per vessel due under the respective
Shipbuilding Contracts dated 6.2.2005 as amended by addenda No.1 dated
31.3.2005, No.2 dated 27.4.2005 and No. 3 dated 27.5.2005 (the “Shipbuilding
Contracts”) made between each of the Co-Borrowers and Fujian Shipbuilding
Industry Group Corporation and Fujian Southeast Shipyard (collectively the ‘Builders’)
providing for the construction by the Builders for each of the Co-Borrowers of
one 3,500 DWT oil/product tanker for a contract price for each vessel of United
State Dollars Six Million Eight Hundred Thousand (US $ 6,800,000.00) and


ii)                                      the second
installment amounting to US$ 155,000 per vessel due under the respective
Supervision Agreements dated 10.2.2005 made between each of the Co-Borrowers
and IOTA Corporation of Liberia, pursuant to which IOTA has agreed to provide
services to each of the Co-Borrowers in connection with the construction of the
above vessels for a fee of USD 1,550,000 for each vessel.


 


b.              The Facility will
bear no interest at all.


c.               The Co-Borrowers
hereby acknowledge, state and confirm receipt of the Facility.


d.              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 Co-Borrowers hereby represent and warrant to the
Lender, that:


 


a.               Each of the
Co-Borrowers 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.              Each of the
Co-Borrowers 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 each of the Co- Borrowers and is
enforceable in accordance with its terms.


d.              Each of the
Co-Borrowers 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 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 Co-Borrowers 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 CO-BORROWERS

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Dimitrios Melisanidis

  	
   

  	
  By:

  	
  /s/ Dimitrios
  Koutsoueos

  	
   

  
	
  Dimitrios Melisanidis

  	
   Dimitrios Koutsoueos

  
	
  Director

  	
   Director

  
						



 


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