Tod McMullen and Robin Everson - Page 4




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          not entirely clear.  It appears that petitioner’s marketing                 
          efforts consisted primarily of promoting the system through “word           
          of mouth” advertising.  Petitioner tested the system by                     
          installing it in his vehicles.  It appears that there were                  
          relatively few sales from the date of the patent through the year           
          in issue.                                                                   
               After the patent was issued in 1985, petitioner made some              
          changes to the system.  Prior to 1995, petitioner adapted the               
          system for use in automobile hydraulic power steering systems and           
          automobile automatic transmissions.  In 1992, or thereabouts,               
          petitioner began to develop what he described as “curious motor             
          oils” or “teflon particle saturated oils” for use with the                  
          system.  According to petitioner, if a motorist used the system             
          and one of the motor oils that he claims to have developed, oil             
          changes would be virtually eliminated.                                      
               Robbin Everson was a salesperson for Mary Kay Cosmetics,               
          Inc. during the year in issue.  In 1993, as a salesperson for               
          that company, she was provided with a new, 1993 Pontiac Grand Am,           
          leased for a 2-year period on her behalf by the company, at the             
          company’s expense.  Upon the expiration of the lease in 1995,               
          petitioners were entitled to purchase the car, which they did               
          for $7,836.  During 1995, petitioners also purchased a computer             










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