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Investment Management Agreement/Discretionary Authorization
(discretionary authorization), the client’s investment
instructions, and a power of attorney. The promoter explained
the investment options available to the client and received the
client's executed copies of the documents. It was the promoter's
obligation to verify the facts presented in the account opening
documents, including the fact that the client was not a resident
or citizen of the United States
Each signature card contained the client’s name and
signature, the client’s LTD account number, and, generally, the
client’s address. The discretionary authorization signed by each
client granted LTD the "sole discretion" to invest the client’s
assets in a vast range of financial products, subject to the
client’s investment instructions, in consideration of a fee paid
to LTD based on the net value of the client’s assets on the first
day of each month. On a separate page for investment
instructions, clients authorized division of their investments
among four broad categories: Real estate, securities, fixed
assets, and other investments. The discretionary authorizations
specifically granted LTD
the full power to delegate the whole or any part of its
powers, duties, discretions and authority granted
hereunder to InverWorld, Inc.[,] a wholly owned
subsidiary of * * * [LTD], provided that * * * [LTD]
shall remain fully liable to the Client for any and all
actions of InverWorld, Inc.[,] undertaken pursuant to
authority delegated to it by * * * [LTD].
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