Estate of Paul Mitchell, Deceased, Patrick T. Fujieki, Executor - Page 7

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          using the promoted products.    Hair  shows  occur  at  the                 
          international, national, regional, and local levels.                        
               Hair care industry market revenues grew to $4.2 billion in             
          1988. During that year, shampoo sales rose by 4 percent,                    
          conditioner sales rose by 9 percent, and styling products sales             
          rose by 30.7 percent.  Hair sprays and hair styling products were           
          growing at double-digit rates.                                              
          D.  The Creation of John Paul Mitchell Systems                              
                John Paul "Jones" DeJoria grew up in Los Angeles.  Following          
          his graduation from high school, he enlisted in the Navy.  Upon his         
          discharge therefrom, he had a variety of sales jobs, selling                
          products such as encyclopedias, photocopiers, insurance, and                
          magazines. In the early 1970's, Mr. DeJoria began working in the            
          beauty products industry for Redken. He held several positions              
          including field sales representative, district manager (Texas), and         
          national chain and salon manager.  While employed at Redken, Mr.            
          DeJoria gained extensive experience in the sale, marketing,                 
          promotion, and distribution of beauty products. He possessed                
          exceptional organizational, managerial, and marketing skills.               
               Messrs. Mitchell and DeJoria first met in the early 1970's.            
          They eventually developed a close friendship.  In 1979, they joined         
          forces to market Mr. Mitchell's hair care products (particularly            
          the sculpting lotion) through professional-only hair salons.  Mr.           
          DeJoria believed he could successfully market the line.  Initially,         





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