As previously reported, in 2015, Eagle Bulk Shipping Inc. filed a voluntary self-disclosure report with the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) 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 (formerly Burma) (the “Apparent Violations”). The Company had a different senior management team at the time of the Apparent Violations, which occurred between 2011 and 2014. The Company’s new senior management and new Board of Directors self-reported the Apparent Violation, cooperated fully with OFAC’s investigation and has since implemented robust remedial measures and significantly enhanced its compliance safeguards. On January 23, 2020, Eagle Shipping International (USA) LLC (Eagle Shipping"), a subsidiary of the Company, entered into a settlement agreement (the Settlement Agreement") with OFAC in which Eagle Shipping agreed to make a one-time payment to the U.S. Department of the Treasury in the amount of $1.125 million and undertake certain compliance commitments in exchange for OFAC agreeing to release and forever discharge the Company and its subsidiaries, including Eagle Shipping, without any finding of fault, from any and all civil liability in connection with the Apparent Violations. The settlement does not constitute any admission of fault or wrongdoing by the Company or any of its subsidiaries. On January 27, 2020, OFAC made available on its website a summary of the Settlement Agreement and the Settlement Agreement itself.