Inverworld, Inc., et al. - Page 171

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            June 30, 1987.  In his response letter dated August 17, 1987, Mr.                             
            Bricker asked Mr. Dooley "whether there may be some basis coming                              
            up perhaps with a similar result but basing it upon a percentage                              
            of assets."                                                                                   
                  The letter agreement for taxable year ended June 30, 1988,                              
            signed by Mr. Bricker and Mr. Fahey, was dated "As of August 1,                               
            1987".                                                                                        
                  The letter agreement for taxable year ended June 30, 1989,                              
            signed by Mr. Bricker and Mr. Fahey, was dated "As of July 1,                                 
            1988".                                                                                        
                  The total fees paid by LTD to INC and the gross revenues                                
            received by INC for each taxable year are set forth in the                                    
            following table:                                                                              
            TYE      Management fee    Gross Revenues  Percentage of INC’s                                
            June 30   from LTD to INC        of INC       Gross Revenues                                  
            1985        $582,000           $618,190                 94.1%                                 
            1986        945,000        953,583                      99.1                                  
            1987        1,281,000          1,395,545                91.8                                  
            1988        1,440,000          1,532,579                94.0                                  
            1989        1,830,000          1,909,563                95.8                                  
            G.    Research                                                                                
                  Pursuant to its Agreement with LTD, INC purchased, on behalf                            
            of clients of LTD, certificates of deposit and term deposits from                             
            banks located both within and without the United States.  The                                 
            executive committee of the Inver Group established criteria,                                  
            relating to the bank’s size, equity, profitability, size of                                   







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