Note

11.

Commitments and Contingencies

Operating Lease

October

15,

2015,

the Company entered into a new commercial lease agreement as a subtenant for office space in Stamford, Connecticut. The lease is effective from

January

2016

through

June

29,

2023,

with an average annual rent of

$419,536.

The lease is secured by a letter of credit backed by cash collateral of

$74,917

which amount is recorded as restricted cash in the accompanying consolidated balance sheets. Rent expense recorded for the years ended

December

31,

2016

and

2015

was

$840,303

and

$2,591,489

respectively. Rent expense for

2015

includes lease termination fees of

$1,334,301

on its office space in New York, New York. The rent expense for the period from

October

16,

2014

December

31,

2014

was

$272,365.

During the period from

January

2014

October

15,

2014,

the rent expense for the Predecessor was

$1,061,608.

September

2014,

the Company entered into a lease office agreement in Singapore which expires in

October

2017.

The future minimum commitments under the leases for office space as of

December

31,

2016

are as follows:

(In thousands of US dollars)

2017	$	577
2018		438
2019		443
2020		456
Thereafter		1,198
Total	$	3,112

Legal Proceedings

The Company is involved in legal proceedings and

may

become involved in other legal matters arising in the ordinary course of its business. The Company evaluates these legal matters on a case-by-case basis to make a determination as to the impact, if any, on its business, liquidity, results of operations, financial condition or cash flows.

November

2015,

the Company filed a voluntary self-disclosure report regarding certain apparent violations of U.S. sanctions regulations in the provision of shipping services for

third

party charterers with respect to the transportation of cargo to or from Myanmar. At the time of such apparent violations, the Company had a different senior operational management team. There can be no assurance that Office of Foreign Assets Control (“OFAC”) will not conclude that these past actions warrant the imposition of civil penalties and/or referral for further investigation by the U.S. Department of Justice. The report was provided to OFAC for the agency’s review, consideration and determination regarding what action, if any,

may

be taken in resolution of this matter. The Company will continue to cooperate with the agency regarding this matter and cannot estimate when such review will be concluded. While the ultimate impact of these matters cannot be determined, there can be no assurance that the impact will not be material to the Company’s financial condition or results of operations.

Other Commitments

July

28,

2011,

the Company entered into an agreement to charter-in a

37,000

dwt newbuilding Japanese vessel that was delivered in

October

2014

for

seven

years with an option for an additional

one

year. The hire rate for the

first

seventh

year is

$13,500

per day and

$13,750

per day for the

eighth

year option.

May

2016,

the Company entered into an agreement to charter-in a

63,000

dwt newbuilding Chinese vessel that was delivered on

May

20,

2016

for a period of

nine

fourteen

months. The hire rate for the term is

$6,000

per day.

July

12,

2016,

the Company entered into an agreement to charter-in a

61,000

dwt Japanese vessel that was delivered in

July

2016

for a period of

eleven

thirteen

months. The hire rate for the term is

$6,000

per day.

November

14,

2016,

the Company, through the newly formed subsidiary, Eagle Shipco, signed a memorandum of agreement to acquire a

2017

built

64,000

deadweight SDARI-

Ultramax dry bulk vessel constructed at Chengxi Shipyard Co., Ltd for

$17.9

million. The Company paid a

$1.9

million advance towards the acquisition of the vessel in

2016.

The Company took delivery of the vessel in the

first

quarter of

2017.