Michael J. Fitzpatrick - Page 4

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               On September 26, 1980, Brenton's Cove Development Co.                  
          (Brenton's) closed on a $5.5 million construction loan with the             
          Bank.  Petitioner worked on this loan as a loan officer for the             
          Bank.  Herbert L. Finley (Finley) and Radcliffe Romeyn (Romeyn)             
          were the general partners of Brenton's.  On April 23, 1981, the             
          Bank approved a construction loan advance of $30,000 for                    
          Brenton's, the proceeds of which were wired to petitioner's                 
          brother on April 24, 1981.                                                  
               On November 28, 1980, petitioner recommended that the Bank             
          Credit Committee approve a $6.17 million construction loan to               
          Landing Development Co. (Landing) and Long Wharf Development Co.            
          (Long Wharf) for the purpose of financing the construction of two           
          condominium hotels, Inn on the Harbor and Inn on Long Wharf (the            
          Inns).  The Bank conditionally approved this loan.  On April 16,            
          1981, Landing closed on a construction loan of $3,000,055 from              
          the Bank.  Finley, Romeyn, and William R. Wing (Wing) were                  
          general partners of Landing and Long Wharf; Timothy M. Dwyer                
          (Dwyer) was a general partner of Long Wharf only.                           
               In the summer of 1981, R. Perry Harris, a representative of            
          a real estate investment group, expressed an interest in possibly           
          purchasing the Inns and later selling each completed unit as a              
          time share promotion.  The original Bank commitment to Landing              
          and Long Wharf did not permit the borrowers to market the                   
          condominiums as time shares.  In order for the sale of the Inns             

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