Note

Vessels

Vessel and Vessel Improvements

As of

June

30,

2017,

the Company’s owned operating fleet consisted of

dry bulk vessels.

November 14, 2016,

the Company, through its subsidiary Eagle Bulk Shipco LLC, signed a memorandum of agreement to acquire a

2017

built

64,000

dwt SDARI-

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

$17.9

million. The Company took delivery of the vessel, the Singapore Eagle, on

January 11, 2017.

January 6, 2017,

the Company sold the vessel Redwing for

$5.8

million, after brokerage commissions and associated selling expenses, and recorded a net gain of approximately

$0.1

million.The vessel was classified as an asset held for sale as of

December 31, 2016.

A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility (as defined herein).

February 28, 2017,

Ultraco, a wholly-owned subsidiary of the Company, entered into a framework agreement with Greenship Bulk Manager Pte. Ltd., as Trustee-Manager of Greenship Bulk Trust, a Norwegian OTC-listed entity (the "Greenship Sellers"), for the purchase of

nine

modern sister vessels built between

2012

and

2015,

the Greenship Vessels (the "Greenship Purchase Agreement"). The aggregate purchase price for the

nine

Greenship Vessels is

$153.0

million. The allocated purchase price for each Greenship Vessel is

$17.0

million. The Company took delivery of

six

of the

nine

Greenship Vessels during the

second

quarter and is expected to take delivery of the remaining Greenship Vessels in the

third

quarter of

2017.

As of

June 30, 2017,

the Company paid a deposit of

$20.8

million towards the delivery of the remaining

three

Greenship Vessels.

March 15, 2017,

the Company sold the vessel Sparrow for

$4.8

million after brokerage commissions and associated selling expenses, and recorded a net gain of approximately

$1.8

million. The vessel was classified as an asset held for sale as of

March 31, 2017.

A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility.

May 31, 2017,

the Company signed a memorandum of agreement to sell the vessel Woodstar for

$7.8

million after brokerage commissions and associated selling expenses. The vessel is expected to be delivered to the buyers in the

third

quarter of

2017.

The Company expects to recognize a gain of

$0.2

million. A portion of the proceeds will be used towards repayment of the term loan under the First Lien Facility (as defined in "Note

Debt" to the condensed consolidated financial statements). As of

June 30, 2017,

the Company reported the carrying amount of the vessel as a current asset in its condensed consolidated balance sheet.

June 15, 2017,

the Company signed a memorandum of agreement to sell the vessel Wren for

$7.6

million after brokerage commissions and associated selling expenses. The vessel is expected to be delivered to the buyers in the

fourth

quarter of

2017.

The Company expects to recognize a gain of

$0.05

million. A portion of the proceeds will be used towards repayment of the term loan under the First Lien Facility. Please refer to “Note

Debt—First Lien Facility” to the condensed consolidated financial statements. As of

June 30, 2017,

the Company reported the carrying amount of the vessel as a current asset in its condensed consolidated balance sheet.

Vessel and vessel improvements consist of the following:

Vessels and Vessel Improvements, at December 31, 2016	$	567,592,950
Advance paid for purchase of Singapore Eagle at December 31, 2016		1,926,886
Purchase of Vessels and Vessel Improvements		121,331,815
Transfer to vessels held for sale		(15,210,204	)
Vessel depreciation expense		(13,461,924	)
Vessels and Vessel Improvements, at June 30, 2017	$	662,179,523