Charles A. Ballard - Page 3

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               At the time of filing the petition, petitioner resided in              
          Philadelphia, Pennsylvania.                                                 


          Petitioner                                                                  
               During 1986 and 1987, petitioner was a managing director of            
          an investment banking firm (the firm).  In August 1986, a major             
          portion of the firm was sold and, as a result thereof, petitioner           
          received in excess of $2 million.                                           
               Prior to the formation of Ballard Marine, discussed infra,             
          petitioner did not participate in boating for recreation.  He had           
          no experience as a seaman or with the mechanical operation of               
          yachts, and he had very little personal experience in boating.              
          Prior to 1986, he was not a member of any yacht club.                       
               Petitioner became interested in yacht chartering as a result           
          of his activities in arranging entertainment for clients and                
          others connected with the firm.                                             
               From late 1985 to the middle of 1986, petitioner visited               
          numerous boat shows.  At those boat shows, vendors described                
          yacht investment plans.                                                     
               Prior to forming Ballard Marine and causing it to purchase a           
          boat, petitioner did not prepare a formal business plan.  He did            
          consider the economics of the yacht chartering business, as                 
          follows:  He planned to spend approximately $250,000 on a boat.             
          He believed that many operating costs (e.g., captain, crew, and             
          fuel) would be paid by the charterer.  He assumed that charterers           




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