Daniel R. Allemeier, Jr. - Page 5

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          strict policy of not reimbursing employees for education costs or           
          other business expenses.  Nor did Selane Products require                   
          petitioner to obtain the MBA.                                               
               Petitioner decided to pay for the MBA personally, and in               
          1999 he commenced studies at Pepperdine University.  He finished            
          the degree in late 2001, the year at issue.  His MBA                        
          concentration was in business management, and his courses                   
          included accounting for managers, statistics, managerial finance,           
          marketing management, quantitative methods, negotiation and                 
          conflict resolution, organizational theory and management, and              
          business strategy.                                                          
               Shortly after petitioner enrolled in, but before he                    
          completed, the MBA program, he was promoted to several new                  
          positions at Selane Products.  Petitioner was promoted to                   
          Marketing Manager, Managing Director of the Appliance Therapy               
          Practitioners Association, Head of the SMILE Foundation, Practice           
          Development Consultant, and Project Development Consultant.  In             
          these new capacities, petitioner’s duties expanded and included             
          analyzing financial reports, designing action plans for sales,              
          and evaluating the effectiveness of marketing campaigns.8                   

               8An “employee profile” from Selane Products summarizes                 
          petitioner’s work history as follows:  (1) From 1996-1997,                  
          petitioner worked in the marketing department in the position of            
          “Intact Sales”; (2) from 1998-2000, petitioner worked in the                
          marketing department in the position of “Sales/Marketing”; and              
          (3) from 2000 through 2003, petitioner worked in the sales                  
                                                             (continued...)           




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