DIVIDEND POLICY

As of May 2021, the current  dividend policy provides that  the Board may declare a dividend in each of February, May, August and November in an amount equal to (a) Star Bulk’s Total Cash Balance minus (b) the product of (i) the Minimum Cash Balance per Vessel and (ii) the Number of Vessels.

• "Total Cash Balance" means (a) the aggregate amount of cash on Star Bulk’s balance sheet as of the last day of the quarter preceding the relevant dividend declaration date minus (b) any proceeds received by Star Bulk, including its subsidiaries, from vessel sales, or additional proceeds from vessel refinancings, or securities offerings in the last 12  months  that  have  been  earmarked  for  share  repurchases,  debt  prepayment,  vessel  acquisitions  and  general corporate purposes.
• "Minimum Cash Balance per Vessel" means: 
  1. $1.40 million for March 31, 2021; 
  2. $1.65 million for June 30, 2021 
  3. $1.90 million for September 30, 2021 
  4. $2.10 million for December 31, 2021 and thereafter
• "Number of Vessels" means the total number of vessels owned by the Company, including its subsidiaries, or that are subject to sale and leaseback transactions and finance leases,  as of the last day of the quarter preceding the relevant dividend declaration date.

Since  Star  Bulk  is  a  holding  company  with  no  material  assets  other  than  the  shares  of  its  subsidiaries  through  which  it conducts its operations, Star Bulk’s ability to pay dividends will depend on its subsidiaries distributing their earnings  and cash  flow to it.  Any future dividends declared will be at the  discretion and  remain subject  to approval of our Board  each quarter,  after  its  review  of  our  financial  condition  and  other  factors,  including  but not  limited  to  our  earnings,  prevailing charter  market  conditions,  capital  requirements,  limitations  under  our  debt  agreements  and  applicable  provisions  of Marshall  Islands  law,  which  generally  prohibits  the  payment  of  dividends  other  than  from  operating  surplus  or  while  a company is insolvent or would be rendered insolvent upon the payment of such dividend.  Star Bulk’s dividend policy and declaration and payment of dividends may be changed at any time and are subject to legally available funds and the Board’s determination that each declaration  and  payment  is  at  the  time  in  the  best  interests  of  Star  Bulk  and  its shareholders after its review of our financial performance. There can be no assurance that our Board will declare or pay any dividend in the future.