NOTE T – CAPITAL STOCK

Late in 2015, our market capitalization fell below the threshold requirement of the New York Stock Exchange; accordingly, our 9.50% Series A and 9.00% Series B Cumulative Redeemable Perpetual Preferred Stock and our Common Stock were delisted. Our common stock is currently traded on the OTCQX Market under the ticker symbol “ISHC”.

Preferred Stock

As of December 31, 2015 and 2014, we had outstanding 250,000 shares of our 9.50% Series A Cumulative Redeemable Perpetual Preferred Stock and 316,250 shares of our 9.00% Series B Cumulative Redeemable Perpetual Preferred Stock, $1.00 par value per share, with a liquidation preference of $100.00 per share.

Subject to the declaration of dividends by our Board of Directors, cumulative dividends on the Series A Preferred Stock and Series B Preferred Stock are payable at a rate of 9.50% and 9.00%, respectively, per annum per $100.00 liquidation preference per share, starting from the date of original issue. Dividends accumulate quarterly in arrears on each January 30, April 30, July 30 and October 30. However, the dividends are payable only if declared by our Board of Directors and must come from funds legally available for dividend payments.

Commencing on April 30, 2018 and October 30, 2018, we may redeem, at our option, the Series A and Series B Preferred Shares, respectively, in whole or in part, at a cash redemption price of $100.00 per share, plus any accrued and unpaid dividends to, but not including, the redemption date. If at any time a “Change of Control” occurs, we will have the option to redeem the Series A and Series B Preferred Shares, in whole, within 120 days after the date of the Change of Control at the same cash redemption price. The Series A and Series B Preferred Shares have no stated maturity, will not be subject to any sinking fund or other mandatory redemption, and will not be convertible into or exchangeable for any of our other securities.

Holders of the Series A and Series B Preferred Shares generally have no voting rights except for limited voting rights if dividends payable on the outstanding Series A and Series B Preferred Shares are in arrears for six or more consecutive or non-consecutive quarters, and under certain other limited circumstances.

The payment of dividends to common stockholders and preferred stockholders is at the discretion and subject to the approval of our Board of Directors. The Board of Directors declared a cash common stock dividend each quarter between the fourth quarter of 2008 and the middle of 2015. On October 19, 2015 and January 19, 2016, we announced that our Board of Directors elected to defer the cumulative dividend payments scheduled for October 30, 2015 and January 30, 2016 related to our Series A and Series B Preferred Stock. Because we did not pay our preferred stock dividends for two periods, the per annum rate has increased, commencing January 31, 2016, by an additional 2.00% per $100.00 stated liquidation preference, or $2.00 per annum. If we fail to make additional future scheduled payments, this per annum rate will continue to increase up to a maximum annual dividend rate of twice the original interest rate. The dividend rate will reset to the original dividend rate if we pay all accrued and unpaid dividends for three consecutive quarters. At December 31, 2015, we recorded a $1.2 million embedded derivative liability related to the penalties on our preferred stock dividends. See Note O – Derivative Instruments for additional information. Additionally, since our preferred shares rank senior to our common shares, and carry cumulative dividends, we are currently precluded from paying cash dividends on our common stock. Moreover, our November 2015 credit facility amendments place further restrictions on our ability to pay dividends on our common and preferred stock until certain conditions are met.

During 2015, we paid cash dividends on our Series A and Series B Cumulative Perpetual Preferred Stock as follows:

(All Amounts in Thousands Except per Share Data)

Declaration Date

Record Date

Series

Payment Date

Per Share Amount

Total Dividend Paid

7-Jan-15

29-Jan-15

30-Jan-15

2.375

594

7-Jan-15

29-Jan-15

30-Jan-15

2.250

711

2-Apr-15

29-Apr-15

30-Apr-15

2.375

594

2-Apr-15

29-Apr-15

30-Apr-15

2.250

712

8-Jul-15

29-Jul-15

30-Jul-15

2.375

594

8-Jul-15

29-Jul-15

30-Jul-15

2.250

711

3,916

As of December 31, 2015, we had total accumulated unpaid dividends of $1.3 million for our Series A and Series B preferred stock.

Common Stock

The payment of dividends to common stockholders is at the discretion and subject to the approval of our Board of Directors. Our Board of Directors declared a cash common stock dividend each quarter between the fourth quarter of 2008 and the middle of 2015. On October 19, 2015, we announced that our Board of Directors elected not to make the cumulative dividend payments scheduled for October 30, 2015 with respect to our Series A and Series B Preferred Stock. Since our preferred shares rank senior to our common shares, and carry accrued but unpaid dividends, we are currently precluded from paying cash dividends on our common stock. Moreover, our November 2015 credit facility amendments place further restrictions on our ability to pay dividends on our common stock until certain conditions are met.

During 2015, we paid cash dividends on our common stock as follows:



(All Amounts in Thousands Except per Share Data)

Declaration Date	Record Date	Payment Date		Per Share Amount		Total Dividend Paid
7-Jan-15	19-Feb-15	4-Mar-15	$	0.25	$	1,828
29-Apr-15	15-May-15	3-Jun-15		0.05		366
30-Jul-15	14-Aug-15	4-Sep-15		0.05		366
					$	2,560

As of December 31, 2015, we had approximately $23,000 of dividends accrued but not paid with respect to unvested equity incentive awards.