Joseph A. and Sari F. Deihl - Page 7

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               In execution of this strategy, petitioners hosted at their             
          residence a number of events to which distributors were invited.            
          Petitioners frequently used their home for training sessions,               
          meetings, and entertainment functions, including an annual                  
          Halloween party attended by as many as several hundred people and           
          an annual “come home” event used to showcase both the corporate             
          properties in Phoenix and petitioners’ residence.  To accommodate           
          such usage and their image-related goals, petitioners during the            
          period from late 1996 to early 1997 engaged in an extensive                 
          renovation of their personal residence.  They sought to create a            
          “showplace” or “trophy” home.  Components of the remodel included           
          an enhanced driveway and fountain area, a columned porte cochere,           
          a large vestibule, redesigned bedroom and den/office area, raised           
          hallway ceilings, limestone flooring, new windows and French                
          doors, a lighting system, gold-leaf trim, furniture, and interior           
          design elements.  The residential property also included a                  
          swimming pool, tennis court, fountain, and extensive landscaping.           
               Both Mayor and KareMor maintain their principal corporate              
          office in a complex located on 24th Street in Phoenix, Arizona.4            
          The complex occupies the east and west sides of the street and              
          includes multiple buildings and surrounding landscaping.  On the            
          east side are three buildings:  A two-story office building, a              

               4 The record fails to clarify the precise ownership, as                
          between petitioners and/or one of their various entities, of this           
          property.                                                                   




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