CIM Trust - Page 10




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          trust arrangement.  The Morrows also transferred intangible                 
          assets to the trust, such as the business name and the ongoing              
          business operations of I.D.F. Pest Control Co.                              
               The business was operated in substantially the same manner             
          both before and after the trust was created.  The business and              
          its activities continued under the same name, used the same                 
          invoices and service contracts, used the same Texas Structural              
          Pest Control business license, used the same taxpayer                       
          identification number on the Texas Sales and Use Tax Returns,               
          used the same insurance policies, and used the same business                
          equipment.  After the establishment of the trust, Peter Morrow              
          continued to work for the business and Charlotte Morrow continued           
          to manage the business.                                                     
               The trust did not have an independent trustee.  The Morrows            
          had control over the trust activities and trust assets.                     
          Charlotte Morrow was named as the sole trustee of the trust, and            
          she had exclusive control over the trust and the business                   
          operations.  Additionally, Peter Morrow was named as successor              
          trustee, had signature authority over the trust’s bank account,             
          and, on occasion, paid the personal expenses of the Morrows from            
          the trust bank account.  Under the terms of the trust, the                  
          trustee also had the power to appoint successor trustees and                
          cotrustees.                                                                 








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Last modified: May 25, 2011