Richard A. and Carol B. Little - Page 7

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               1.   Lemons' Purchase of Tomanet Stock                                 
               In mid-1983, Lemons approached petitioner about buying                 
          another savings and loan.  Lemons suggested that he, petitioner,            
          and several other Dondi Financial and Vernon executives buy the             
          stock of a holding company named Tomanet.  Tomanet owned about              
          98 percent of the stock of Texana Savings & Loan (Texana).                  
               Lemons negotiated an option to buy Tomanet stock.  Lemons              
          bought Tomanet stock with purchase money mortgages from Tomanet             
          stockholders and financial institutions such as First City                  
          Savings.  Petitioner and the other investors were to give Lemons            
          a downpayment and execute a note payable to him for the balance             
          of the purchase price if they wanted to buy the Tomanet stock.              
               2.   Petitioner's Purchase of Tomanet Stock From Lemons                
               Petitioner bought 34,900 shares of Tomanet stock for                   
          $199,600 on December 12, 1983.  Petitioner paid $77,200 as a                
          downpayment.  Petitioner borrowed the downpayment from State                
          Savings & Loan (not further identified in the record) through an            
          unsecured loan.  Petitioner executed notes, payable to Lemons,              
          for $106,795 and $15,605 on December 12, 1983.                              
               Lemons gave petitioner quarterly reminders of the amounts              
          due under the notes.  Petitioner paid Lemons about $31,795 on the           
          $106,795 note.  Petitioner had no agreement with Lemons to not              
          make payments on the $106,795 note.  Petitioner paid about $4,100           
          on the $15,605 note.                                                        






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