Morgan L.Lucid and Mary J. Lucid - Page 3

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          lectured on subjects including cruising at sea, provisioning,               
          watch scheduling, cooking at sea, rescue equipment and its use,             
          safety at sea, and stowing a yacht.                                         
               Petitioners have always experienced personal pleasure from             
          yachting.  For approximately 14 years, they owned a 34-foot                 
          family yacht called Credence, which they used solely for personal           
          purposes.  Their travels on Credence included trans-Atlantic,               
          trans-Pacific, east coast, west coast, and Caribbean offshore               
          cruises.  In 1976, petitioner husband skippered Credence to                 
          Hawaii and back, employing celestial navigation for the 45-day              
          trip.  From September 1979 to March 1980, petitioners took time             
          off from their respective professions to sail Credence from San             
          Francisco to Florida via the Panama Canal.  In 1981 and 1982,               
          petitioners took the summer months off to sail the Chesapeake Bay           
          and the coast of Maine.  In 1983, petitioners sailed Credence,              
          with their son and niece, to the Azores, Ireland, and England,              
          utilizing only a sextant and a radio directional finder.                    
          Overall, petitioners cruised at least 20,000 miles on Credence.             
          During 1984, petitioners sold Credence.                                     
               In early 1985, petitioners began using stationery printed              
          with the letterhead “Lucid Cruising, Offshore Outfitters and                
          Advisors”.  Subsequently, they met with an accountant and an                
          attorney to discuss the formation of a corporate entity to sell             
          yachts and boating equipment under the name “Lucid Cruising”.               





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