Estate of Concetta H. Rector, Deceased, John M. Rector, II, Co-Executor and Co-Trustee - Page 3




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          2.  Decedent and Her Family                                                 
               Decedent was born in 1906.  She was married to John Rector,            
          Sr. (Jack Rector).  Decedent and Jack Rector had two sons, John             
          Rector and Frederic Rector.  John Rector has been a licensed                
          investment broker since 1961, and he has managed equity, fixed              
          income, venture capital, and other investments.  John Rector also           
          holds a securities license, a commodities license, an insurance             
          license, an options license, and a registered investment advising           
          license.  John Rector was actively involved in decedent’s                   
          finances.                                                                   
          3. Decedent’s Trusts                                                        
               In 1975, decedent and Jack Rector created a trust.  After              
          Jack Rector died in 1978, the trust was bifurcated into Trust A             
          and Trust B.  John Rector was the investment counselor to Trust A           
          and Trust B.  In that capacity, John Rector managed the                     
          investment portfolio of each trust, recommended transactions to             
          decedent, and executed the transactions she authorized him to               
          make.  John Rector also was a cotrustee of Trust A and Trust B.             
          Decedent was the other cotrustee of Trust A, and Frederic Rector            
          was the other cotrustee of Trust B.                                         
               The property transferred to Trust A was decedent’s share of            
          the community property from her marriage, decedent’s separate               
          property, and one-half of Jack Rector’s gross estate.  Decedent             






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