Estate of Paul Mitchell, Deceased, Patrick T. Fujieki, Executor - Page 19

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               For fiscal years ended July 31, 1984 through 1988, Messrs.             
          Mitchell and DeJoria each received the following payments from              
          JPMS:                                                                       
          For Year Ended     Salary     Management Fees          Total                
           7/31/84           ---           ---               1$1,086,500              
          7/31/85           ---           ---                12,305,000               
          7/31/86           ---           ---                14,162,525               
          7/31/87         $185,125     $8,565,000             8,750,125               
          7/31/88        1,308,000     10,500,000            11,808,000               
               1    Payments to Messrs. Mitchell and DeJoria for this year            
          were not broken down into salary or management fees.                        
          JPMS characterized these payments as compensation for services              
          rendered.                                                                   
               Between August 1, 1988, and April 21, 1989, JPMS paid Mr.              
          Mitchell $10,758,046 (which JPMS characterized as compensation for          
          services rendered). For fiscal year 1989, Messrs. Mitchell and              
          DeJoria agreed that each of them would receive a $2 million annual          
          salary and a $15 million management fee.  The JPMS Board approved           
          these compensation amounts on October 21, 1988.                             
               From the inception of JPMS until the moment of Mr. Mitchell's          
          death, the only dividend declared by JPMS was for its fiscal year           
          ended July 31, 1988. The dividend was originally set at $1.4                
          million but was subsequently raised to $2.5 million.                        
               During the latter part of Mr. Mitchell's illness, Messrs.              
          DeJoria and Mitchell discussed Mr. DeJoria's future compensation.           
          Mr. DeJoria promised Mr. Mitchell that in the event of Mr.                  
          Mitchell's death, he would reduce his management fee from $15               




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