Inverworld, Inc., et al. - Page 98

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            who were directors, officers, or shareholders of LTD) and by                                  
            InverMexico account executives and employees.  Accordingly, LTD                               
            depended upon referrals rather than direct marketing.                                         
                  The account executives of InverMexico (known in Mexico as                               
            promotores and in the United States as promoters) were trained to                             
            sell in Mexico the services of the companies within the Inver                                 
            Group, including LTD.  For clients who were interested in                                     
            Mexican, peso-based investments, an account would be opened at                                
            InverMexico.  For clients who were interested in dollar deposits                              
            or other investments outside Mexico, an account would be opened                               
            at LTD.  The number of client accounts at LTD was approximately                               
            70 during 1984, 257 during 1985, 434 during 1986, 557 during                                  
            1987, 870 during 1988, and 1,131 during 1989.  Not all client                                 
            accounts were actively traded.  For those years, the total                                    
            amounts of client assets placed with LTD were $42,627,253 during                              
            1984; $82,808,357 during 1985; $135,861,724 during 1986;                                      
            $166,544,045 during 1987; $291,002,145 during 1988; and                                       
            $285,621,179 during 1989.                                                                     
                  Each promoter earned compensation for services rendered in                              
            the form of a salary and bonus from InverMexico.  Promoters also                              
            earned "commissions", which did not follow a strict formula in                                
            any one year.  In some cases, a promoter might also have received                             
            a commission directly from LTD.                                                               
                  Promoters presented new clients with a package of account                               
            opening documents, which consisted of signature cards, an                                     




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