At December. 31, 1998 the Company had a minimum guaranteed royalty commitment under a software license agreement of $900 and $450 for the years ended December 31, 1999 and 2000, respectively, which have been accrued in the accompanying balance sheet at December 31, 1998 In June 1998, JLC restructured a significant software license agreement with a third party JLC returned investment securities valued at $2,285 by the third party and also accepted reduced rights under the license agreement in order to settle $5,500 in minimum future royalty obligations which JLC owed. JLC retained the right to sell product from this third party through 2001. JLC has remaining prepaid royalties with respect to this license agreement of $2,700 with a net carrying value of $1,420 as of December 31, 1998 to be amortized on a units-of-production basis.
At December. 31, 2004, the Investors had converted all of Investor's claims ($487,142.33) against the Company and delivered new funds ($262,857.67) for 1,500,000 shares of ERFW's Series A Convertible Preferred Stock (the "Securities"). Stated differently, the parties have fully performed their respective obligations under the Debt Conversion and Funding Agreement dated September 30, 2004 and now desire to supplement that agreement by this Addendum to allow the Investors to purchase additional shares of ERFW's Series A Convertible Preferred Stock on similar terms and conditions.
At December. 31, ---------------------------------------------------------------------------------------------------------------------------- 1998 1997 1996 1995 1994 ---------------------------------------------------------------------------------------------------------------------------- Commercial $ 56,675 9.2% $ 56,030 9.9% $ 44,088 9.5% $ 46,323 10.2% $ 39,231 9.4% Real Estate 506,844 82.8 461,700 81.4 375,985 81.0 372,399 82.1 346,922 83.1 Installment 37,519 6.1 37,496 6.6 30,619 6.6 22,624 5.0 19,733 4.7 Other 11,395 1.9 12,318 2.1 13,230 2.9 12,387 2.7 11,616 2.8 ---------------------------------------------------------------------------------------------------------------------------- Total Loans $ 612,433 $ 567,544 $ 463,922 $ 453,733 $ 417,502 ============================================================================================================================ Total loans outstanding increased $44,889,000 (7.9%) in 1998 mainly due to Home's mortgage loan growth during the year. Real estate loans represent the Company's largest loan category, comprising 82.8% of the loan portfolio at December 31, 1998. Real estate loans increased $45,144,000 (9.8%) from year end 1997 to 1998. Home experienced $50,045,000 in loan growth during 1998. All of Home's mortgage loans are secured by 1-4 family owner-occupied residential mortgages. A decrease of $5,000,000 in Richmond's mortgage loans offset the growth in Home's loan portfolio as the Company tightened Richmond's underwriting standards following the acquisition. Historically, Home wrote its 1-4 family mortgage loans on both adjustable and fixed rate terms with amortization terms of up to 30 years, retaining all loan originations in portfolio. The Company writes its residential real estate mortgages on balloon notes, generally up to five year maturities with amortization periods of up to thirty years. As part of integrating Home into the Company's operations, management desires to modify Home's mortgage activities by selling off new fixed rate originations into the secondary market and retaining the servicing rights, as well as beginning to offer terms similar to those offered at SFB, SFBW, and Richmond. Additionally, management wishes to diversify Home's lending activities into commercial and consumer loans to enhance the yield on Home's loan portfolio and diversify lending concentrations. To the extent allowable, the Company will also look to sell off a portion of Home's previous mortgage originations into the ...
