Document:

EX 1029

		
			EXHIBIT 10.29
		

		
			December 22, 2015
		

		
			Citizens Asset Finance, Inc.
		

		
			71 South Wacker Drive, 29th Floor
		

		
			Mailstop IH2935
		

		
			Chicago, Illinois 60606
		

		
			Attention: John Pors
		

		
			Re:Request for Consent to Modify Certain Deadlines and Sale Amounts under 2015
		

		
			Restructuring Plan
		

		
			Dear Mr. Pors:
		

		
			I am writing in connection with that certain Limited Waiver Agreement, dated November 13, 2015 (the "Waiver Agreement"), among Citizens Asset Finance, Inc., f/k/a RBS Asset Finance, Inc., as Lender ("Citizens"), LCI Shipholdings, Inc., as "Borrower," and International Shipholding Corporation, as "Guarantor" (the "Company"). The Waiver Agreement is a "Loan Document" related to that certain Loan Agreement, dated as of August 25, 2014 (as amended, the "Loan Agreement"), among Citizens, Borrower and Guarantor. Capitalized terms used in this letter have the meanings assigned in the Waiver Agreement.
		

		
			Under Section 4 of the Waiver Agreement, Citizens consented to certain asset sales and other transactions described on Schedule A to the Waiver Agreement provided that (a) those transactions are made in connection with the 2015 Restructuring Plan, and (b) those transactions are consummated on or prior to the applicable deadlines, if any, set forth in Schedule A. Among other transactions involved in the 2015 Restructuring Plan, Section 2 of Schedule A addressed the proposed sale of the vessels PEGGY PALMER and NAIDA RAMIL. Section 3 of Schedule A addressed the sale of all assets and properties of Frascati Shops, Inc. and Tower, LLC (collectively, "FSI"), and Section 4 of Schedule A addressed the sale, assignment, early termination or other disposition by Waterman Steamship Corporation ("Waterman") of its three bareboat charter agreements with Intermarine, LLC (the "Intermarine  Contracts"). Each of the referenced Sections of Schedule A required that the transaction addressed in that provision be consummated by specific deadlines and for a consideration of not less than specified Net Cash Proceeds. As previously advised, we are requesting the consent of Citizens to the extension of the stipulated deadlines and to the modification of the consideration that is to be paid with respect to each of the transactions approved under Sections 2, 3 and 4 of Schedule A to the Waiver Agreement.
		

		
			Section 2 of Schedule A currently requires that the vessels PEGGY PALMER and NAIDA RAMIL be sold by December 22, 2015 for aggregate Net Cash Proceeds of at least $1,800,000. Borrower and the Company request that this Section be modified (a) to extend the deadline for the sale of the PEGGY PALMER to December 29, 2015 and to reduce the required consideration for the sale to Net Cash Proceeds of not less than $160,000, and (b) to extend the deadline for the sale of the NAIDA RAMIL to January 15, 2016 and to reduce the required consideration for the sale to Net Cash Proceeds of not less than $485,000. If Citizens consents to this change, Section 2 of Schedule A would be revised to read, in its entirety, as follows:
		

		
			2.The arms'-length sale of the vessels PEGGY PALMER and NAIDA
		

		
			RAMIL, with the sale of the PEGGY PALMER to occur no later than December 29, 2015 for Net Cash Proceeds of not less than $160,000, and with the sale of the NAIDA
		

		
			 
		

		

		

		 

 

		Citizens Asset Finance, Inc. December 22, 2015
		

		
			Page 2
		

		
			RAMIL to occur no later than January 15, 2016 for Net Cash Proceeds of not less than $485,000. All Net Cash Proceeds of such sales may be paid directly to the Collateral Agent and applied to prepay Term Loan A under the Senior Credit Agreement ("SCA  Term Loan A") in inverse order of maturities.
		

		
			Section 3 of Schedule A currently requires all assets and properties of FSI to have been sold by December 22, 2015 for aggregate Net Cash Proceeds of not less than $4,500,000. Borrower and the Company request that this Section be modified to extend the deadline for the sale of the assets and properties of FSI to January 25, 2016 and to reduce the required aggregate consideration to $3,700,000. If Citizens consents to this change, Section 3 of Schedule A would be revised to read, in its entirety, as follows:
		

			
	
			
				 3.
			The arms'-length sale of all assets and properties of Frascati Shops, Inc. and Tower, LLC (collectively, "FSI"), such sales to occur no later than January 25, 2016, and with respect to which (a) the Net Cash Proceeds of such sales shall not be less than $3,700,000 in the aggregate, and (b) all such Net Cash Proceeds of such sales may be paid directly to the Collateral Agent and applied to prepay SCA Term Loan A in inverse order of maturities.

		
			Finally, Section 4 of Schedule A currently requires the sale, assignment, early termination or other disposition of all three Intermarine Contracts to have been completed by December 15, 2015 for aggregate Net Cash Proceeds of not less than $9,000,000, and for the full amount of such proceeds to be paid to the Collateral Agent by December 31, 2015 in accordance with the schedule provided in that Section. As originally reflected in Section 4 of Schedule A, the first Intermarine Contract was disposed of on or about November 6, 2015 for Net Cash Proceeds of $3,000,000 (which amounts were timely paid to the Collateral Agent). Borrower and the Company request that Section 4 of Schedule A be modified (a) to extend the deadline for the sale, assignment, early termination or other disposition of the second Intermarine Contract from December 15, 2015 to January 25, 2016, (b) to adjust the schedule for payment of the Net Cash Proceeds of the disposition of the first two Intermarine Contracts to the Collateral Agent with an outside date for the payment of the balance of such proceeds to be January 25, 2016 (as provided in more detail below), and (c) to convert the requirement for the sale, assignment, early termination or other disposition of the third Intermarine Contract from an absolute requirement to a requirement for Waterman to complete that disposition on a commercially reasonable best efforts basis by February 20, 2016 for Net Cash Proceeds of at least $3,000,000. If Citizens consents to this change, Section 4 of Schedule A would be revised to read, in its entirety, as follows:
		

			
	
			
				 4.
			The sale, assignment, early termination or other disposition by Waterman Steamship Corporation ("Waterman") of its bareboat charter agreements with

		
			Intermarine, LLC (the "Intermarine Contracts") in accordance with the following terms: (a) Waterman shall complete the disposition of two of the Intermarine Contracts by no later than January 25, 2016 for aggregate Net Cash Proceeds of at least $6,000,000, and Waterman shall use its commercially reasonable best efforts to complete the disposition of the third Intermarine Contract by February 20, 2016 for Net Cash Proceeds of at least $3,000,000; (b) 100% of the aggregate Net Cash Proceeds of the disposition of the first two Intermarine Contracts shall be paid in three installments, (i) $3,000,000 of such proceeds shall be paid to the Collateral Agent by November 6, 2015 (which payment was timely made), (ii) $2,000,000 of such proceeds shall be paid to the Collateral Agent on the earlier of (A) the sale or other disposition of the vessel GLOVIS COUNTESS or (B)
		

		
			 
		

		

		

		 

 

		Citizens Asset Finance, Inc. December 22, 2015
		

		
			Page 3
		

		
			December 31, 2015, and (iii) the final $1,000,000 of such proceeds shall be paid by January 25, 2016; and (c) the Net Cash Proceeds, if any, for the disposition of the third Intermarine Contract shall be paid to the Collateral Agent upon receipt by Waterman or any other borrower. All such proceeds of the sale of the Intermarine Contracts paid to the Collateral Agent may be applied to prepay SCA Term Loan A in inverse order of maturities.
		

		
			Please confirm your consent to the modification of Sections 2 through 4 of Schedule A to the Waiver Agreement as set forth above by signing in the signature block below. Upon your consent, Sections 2 through 4 of Schedule A shall be deemed to have been amended as provided above. Except as expressly amended by this letter, all provisions of the Waiver Agreement and Schedule A thereto remain in full force and effect. The Waiver Agreement, and Schedule A thereto, as amended by this letter, and all other Loan Documents related thereto, be and are hereby ratified and affirmed.
		

		
			 
		

		
			Sincerely,

		

		
			LCI SHIPHOLDINGS, INC. 
		

		
			
By: /s/ D.B. Drake
		

		
			Name: D.B. Drake
		

		
			Title: Vice President – Treasurer
		

		
			 
		

		
			INTERNATIONAL SHIPHOLDING CORPORATION
		

		
			
By: /s/ D.B. Drake
		

		
			Name: D.B. Drake
		

		
			Title: Vice President – Treasurer
		

		
			 
		

		
			ACKNOWLEDGED AND AGREED 
THIS 22ND DAY OF DECEMBER, 2015
		

		
			CITIZENS ASSET FINANCE, INC.
(f/k/a RBS Asset Finance, Inc.)
		

		
			 
		

		
			By: /s/ Janet Melancon
		

		
			Name: Janet Melancon
		

		
			Title: Vice PresidentEX 103

		
			EXHIBIT 10.3
		

		
			WAIVER AND AMENDMENT
		

		
			TO
		

		
			FACILITY AGREEMENT PROVIDING FOR A 
SENIOR SECURED TERM LOAN
		

		
			OF US$52,305,238.13
		

		
			dated June 10, 2015,
		

		
			DRY BULK AMERICAS LTD. 
and 
DRY BULK AUSTRALIA LTD. 
as Joint and Several Borrowers,
		

		
			AND
		

		
			The Banks and Financial Institutions listed on Schedule I thereto,
		

		
			as Lenders,
		

		
			AND
		

		
			ING BANK N.V., LONDON BRANCH 
as Facility Agent and as Security Trustee
		

		
			AND
		

		
			INTERNATIONAL SHIPHOLDING CORPORATION, 
and 
GULF SOUTH SHIPPING PTE. LTD. 
as Guarantors
		

		
			Dated as of October 23, 2015
		

		
			 
		

		

		

		 

 

		WAIVER AND AMENDMENT
		

		
			THIS WAIVER AND AMENDMENT (this "Waiver and Amendment") is dated as of October 23, 2015, by and among (1) DRY BULK AMERICAS LTD., a corporation organized and existing under the laws of the British Virgin Islands ("Dry Bulk Americas") and DRY BULK AUSTRALIA LTD., a corporation organized and existing under the laws of the British Virgin Islands ("Dry Bulk Australia"), as joint and several borrowers (the "Borrowers" and each a "Borrower"), (2) INTERNATIONAL SHIPHOLDING CORPORATION, a corporation organized and existing under the laws of the State of Delaware (the "Guarantor"), and GULF SOUTH SHIPPING PTE. LTD, a corporation organized and existing under the laws of Singapore (the "GSS Guarantor"), as guarantors (3) the banks and financial institutions listed on Schedule I to the Facility Agreement (as defined below), as lenders (together with any bank or financial institution which becomes a Lender pursuant to Section 12 of the Facility Agreement, as defined below, the "Lenders" and each a "Lender"), and (4) ING BANK N.V., London branch, as facility agent (in such capacity including any successor thereto, the "Facility Agent"), as security trustee for the Lenders (in such capacity, the "Security Trustee" and, together with the Facility Agent, the "Agents") and amends and is supplemental to the Senior Secured Term Loan Facility Agreement dated as of June 10, 2015, entered into by and among the Borrowers, the Guarantor, the Lenders and the Agents, (as amended, supplemented or otherwise modified from time to time, the "Facility Agreement").
		

		
			WITNESSETH THAT:
		

		
			WHEREAS, the Guarantor has requested that the Lenders waive application of certain financial covenants contained in Sections 9.3(b) and (e) of the Facility Agreement;
		

		
			WHEREAS, on September 30, 2015, the Lenders and Borrowers entered into a Waiver and Agreement which waived application of certain financial covenants contained in the Facility Agreement and the creditors are willing to extend the effectiveness therein;
		

		
			WHEREAS, the Lenders are willing to extend such waiver upon the terms and subject to the conditions contained in this Waiver and Amendment;
		

		
			NOW, THEREFORE, in consideration of the premises and such other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by the parties, it is hereby agreed as follows:
		

		
			1.  Definitions. Unless otherwise defined herein, words and expressions defined in the Facility Agreement have the same meanings when used herein.
		

			
	
			
				 2.
			Representations and Warranties. Each of the Security Parties and the GSS Guarantor hereby reaffirms, as of the date hereof, each and every representation and warranty made thereby in the Facility Agreement and the Note (updated mutatis mutandis).

			
	
			
				 3.
			No Defaults. Each of the Security Parties and the GSS Guarantor hereby represents and warrants that as of the date hereof there exists no Event of Default or any

		
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		condition which, with the giving of notice or passage of time, or both, would constitute an Event of Default.
		

			
	
			
				 4.
			Performance of Covenants. Each of the Security Parties and the GSS Guarantor hereby reaffirms that it has duly performed and observed the covenants and undertakings set forth in the Facility Agreement, the Note and the Security Documents on its part to be performed, and covenants and undertakes to continue duly to perform and observe such covenants and undertakings, other than as waived hereby, so long as the Facility Agreement, as may be amended or supplemented from time to time, shall remain in effect.

			
	
			
				 5.
			Waiver. Subject to the continued compliance by each of the Security Parties and the GSS Guarantor with the provisions contained herein, in the Facility Agreement and the other Transaction Documents and upon the condition that no creditor under any debt instrument or facility, which the Guarantor or any of its Subsidiaries are party to or in respect of which the Guarantor or any of its Subsidiaries have repayment or guarantee obligations (collectively, "Other ISH Debt Facilities"), has taken any enforcement action, the Creditors hereby agree to waive application of Sections 9.3(b) and (e) until November 4, 2015 (or such earlier date when the financial covenants under the Other ISH Debt Facilities are tested again or the waiver under any of the Other ISH Debt Facilities is rescinded, has expired or otherwise not in force and effect) (the "Waiver Expiration Date"). For the avoidance of doubt, the waiver granted herein shall be rescinded, and application of the aforementioned provisions of the Facility Agreement shall be reinstated, if any of the conditions to the waiver is breached. The Security Parties and the GSS Guarantor• hereby agree and acknowledge that all financial covenants, including those set forth in Section 9.3(b) and (e), shall be tested on the Waiver Expiration Date in the absence of any further waiver or amendment to the Facility Agreement.

			
	
			
				 6.
			Amendment to the Facility Agreement. Section 5.3 of the Facility Agreement is hereby amended by amending and restating such Section in its entirety as follows:

		
			5.3 Mandatory Prepayment; Sale or Loss of Vessel.
		

			
	
			
				 (a)
			

			
	
			
			Upon (i) the sale of a Vessel, or (ii) the earlier of (x) ninety (90) days after the Total Loss (as such term is defined in each Mortgage) of a Vessel or (y) the date on which the insurance proceeds in respect of such loss are received by the relevant Borrower or the Security Trustee as assignee thereof, the Borrowers shall repay the relevant Tranche in full and apply the remainder of the proceeds in repayment of the other Tranches and any other amount outstanding under or in connection with the Facility in the order of priorities selected by the Facility Agent in its sole discretion.

			
	
			
				 (b)
			

			
	
			
			Upon (i) the sale or other disposition (including any sale and leaseback transaction and any sale or issuance of equity interests) of any other property (including, for the avoidance of doubt, any vessel not mortgaged in favor of the Security Trustee) owned by the Guarantor or any of its Subsidiaries, or (ii) the date on which

		
			 
		

		
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		the insurance proceeds in respect of the Total Loss (as such term is defined in the Mortgage granted in respect of the BULK AUSTRALIA and used as the context requires) of any other vessel owned by the Guarantor or any of its Subsidiaries are received by the Guarantor or the relevant Subsidiary, the Guarantor shall apply (or cause to be applied) such sale or insurance proceeds as follows:
		

		
			first, in repayment of the outstanding obligations owed to the relevant mortgagee (if any) of such vessel pursuant to the terms of the relevant mortgage instrument;
		

		
			second, (i) except in case of the sale of m.v. GLOVIS COUNTESS, if the Guarantor or any of its Subsidiaries voluntarily chooses to (or is mandatorily required to) prepay or repay any of the Other ISH Debt Facilities, the remaining proceeds will then be applied as follows:
		

		
			first, in repayment of the Facility until the aggregate Fair Market Value of the Vessels equals 150% of the outstanding amount of the Facility in the order of priorities selected by the Facility Agent in its sole discretion; and
		

		
			second, in repayment of (x) the Facility and other amounts outstanding under or in connection therewith in the order of priorities selected by the Facility Agent in its sole discretion and (y) such Other ISH Debt Facilities pro rata.;
		

		
			(ii) in case of the sale of m.v. GLOVIS COUNTESS, if the Guarantor or any of its Subsidiaries voluntarily chooses to (or is mandatorily required to) prepay or repay any of the Other ISH Debt Facilities, the remaining proceeds will then be applied as follows:
		

		
			first, in repayment of the Facility until the aggregate Fair Market Value of the Vessels equals 150% of the outstanding amount of the Facility in the order of priorities selected by the Facility Agent in its sole discretion; and
		

		
			second, any further remaining proceeds may be used for repayment of amounts outstanding under Other ISH Debt Facilities.
		

		
			7. Further Covenants.
		

		
			a) The Security Parties and the GSS Guarantor shall ensure that:
		

		
			 
		

		
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				 i.
			

			
	
			
			Other Credit Enhancement. In the event that any of the lenders under any of the Other ISH Debt Facilities receives credit enhancement (whether in the form of additional collateral, prepayment, additional (or more restrictive) covenants or otherwise), the Security Parties and the GSS Guarantor shall promptly notify the Facility Agent of their intention to do so and, subject to the terms of the Facility Agreement and this Waiver and Amendment, such benefit shall be shared with the Lenders pro rata to the amount of the obligations owed or by effecting further amendments to the Facility Agreement, as the case may be;

			
	
			
				 ii.
			

			
	
			
			Information Disclosure. In the event that any document or information (financial or otherwise) is shared with any other lender under the Other ISH Debt Facilities, the Borrowers shall promptly notify the Facility Agent and provide such document or information to the Facility Agent;

			
	
			
				 iii.
			

			
	
			
			Vessel Valuations. Without prejudice to the Facility 
Agent's right to request valuations under Section 9.1(g), the Facility Agent may, at its sole option and at the cost of the Borrowers, obtain new appraisals in respect of each Vessel from ship brokers of its choosing at any time on or prior to the Waiver Expiration Date;

			
	
			
				 iv.
			

			
	
			
			Financial Plan. On the Waiver Expiration Date, the Security Parties and the GSS Guarantor shall provide to the Facility Agent a financial plan in form, scope and substance satisfactory to the Facility Agent in its sole discretion, which will be the basis of the Facility Agent's credit review of the Guarantor and its Subsidiaries. The Security Parties and the GSS Guarantor hereby agree that if the financial position of any Security Party as reflected in the financial plan is not satisfactory to the Facility Agent (such determination to be in the Facility Agent's sole discretion), such event shall constitute an Event of Default; and

			
	
			
				 v.
			

			
	
			
			Subordination Undertakings. The Borrowers and the 
Guarantor shall ensure that each manager managing any of the collateral vessels mortgaged to the Security Trustee and other co-assureds under the insurance policies of such collateral vessels enter into a subordination undertaking in form and substance satisfactory to the Facility Agent within five (5) Business Days of the date hereof (such period to be extended in the reasonable discretion of the Facility Agent).

		
			 
		

		
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		b) The parties hereto hereby agree that a default by any Security Party and the GSS Guarantor in the performance or observance of any covenant contained in this Waiver and Amendment shall constitute an Event of Default.
		

		
			8. Expenses. The Security Parties and the GSS Guarantor hereby agree to pay to the Facility Agent all reasonable expenses related to this Waiver and Amendment, including any expenses of preparation, negotiation, execution and administration of this Waiver and Amendment and any document or instrument required to be delivered herein, the reasonable fees and disbursements of the Creditors' counsel in connection herewith and any and all expenses incurred in connection with the enforcement or defense of any of the Agents' and the Lenders' rights or remedies or in the preservation of the Agents' and the Lenders' priorities under the documentation executed and delivered in connection with the Facility or any restructuring (actual or contemplated) of the Facility.
		

		
			9. No Other Waiver or Amendment. All other terms and conditions of the Facility Agreement shall remain in full force and effect and the Facility Agreement shall be read and construed as if the terms of this Waiver and Amendment were included therein by way of addition or substitution, as the case may be.
		

		
			10. Conditions Precedent to the Effectiveness of this Waiver and Amendment. The effectiveness of this Waiver and Amendment shall be expressly subject to the following conditions precedent:
		

			
	
			
				 (a)
			

			
	
			
			This Waiver and Amendment. The Borrowers and the Guarantor shall have duly executed and delivered this Waiver and Amendment to the Facility Agent;

			
	
			
				 (b)
			

			
	
			
			Corporate Authority. The Security Parties and the GSS Guarantor shall provide evidence satisfactory to the Facility Agent that this Amendment and Waiver is authorized by the necessary corporate action on the part of each of the Security Parties and the GSS Guarantor.

			
	
			
				 (c)
			

			
	
			
			Interest, Fees and Expenses Paid. The Facility Agent shall have received payment in full of all interest, fees and expenses (including reasonable legal fees) due under or in connection to the Facility Agreement; and

			
	
			
				 (d)
			

			
	
			
			Other Waivers. The Guarantor shall have secured a waiver under each of the Other 1SH Debt Facilities in respect of any potential breach under such facility in form and substance reasonably satisfactory to the Facility Agent and provide to the Facility Agent a copy of any such waiver.

		
			11. Governing Law. This Waiver and Amendment shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws thereof other than Sections 5-1401 and 5-1402 of the General Obligations Law of the State of New York.
		

		
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				 12.
			Counterparts. This Waiver and Amendment may be executed in as many counterparts as may be deemed necessary or convenient, and by the different parties hereto on separate counterparts each of which, when so executed, shall be deemed to be an original but all such counterparts shall constitute but one and the same agreement.

			
	
			
				 13.
			Headings; Amendment. In this Waiver and Amendment, section headings are inserted for convenience of reference only and shall be ignored in the interpretation of this Waiver and Amendment. This Waiver and Amendment cannot be amended other than by written agreement signed by the parties hereto.

		
			[Signature Page Follows]
		

		
			 
		

		
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			IN WITNESS WHEREOF, each of the parties hereto has executed this Waiver and Amendment by its duly authorized representative on the day and year first above written.
		

		
			 
		

		
			DRY BULK AMERICAS LTD.,
		

		
			as Borrower
		

		
			 
		

		
			By: /s/ Erik L. Johnsen
		

		
			Name: Erik L. Johnsen
		

		
			Title: Director
		

		
			 
		

		
			 
		

		
			DRY BULK AUSTRALIA LTD.,
		

		
			as Borrower
		

		
			 
		

		
			By: /s/ Erik L. Johnsen
		

		
			Name: Erik L. Johnsen
		

		
			Title: Director
		

		
			 
		

		
			 
		

		
			INTERNATIONAL SHIPHOLDING CORPORATION,
		

		
			as Guarantor
		

		
			 
		

		
			By: /s/ D.B. Drake
		

		
			Name: D.B. Drake
		

		
			Title: Vice President – Treasurer
		

		
			 
		

		
			 
		

		
			GULF SOUTH SHIPPING PTE. LTD.,
		

		
			as Guarantor
		

		
			 
		

		
			By: /s/ Erik L. Johnsen
		

		
			Name: Erik L. Johnsen
		

		
			Title: Director
		

		
			 
		

		
			ING BANK N.V., LONDON BRANCH,
		

		
			as Facility Agent, Security Trustee and Lender
		

		
			 
		

		
			By: /s/ Rory Hussey
		

		
			Name: Rory Hussey
		

		
			Title: Managing Director
		

		
			 
		

		
			By: /s/ Robartus Krol
		

		
			Name: Robartus Krol
		

		
			Title: Director

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