Estate of Paul Mitchell, Deceased, Patrick T. Fujieki, Executor - Page 26

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          1988.  The most recent interim financial statements available were          
          for the 6 months ended January 31, 1989.  (In addition to the               
          annual audited financial statements, KPMG also prepared unaudited           
          financial statements on a quarterly basis.)                                 
               Except for motivational sales goals announced at semiannual            
          distributors meetings as of April 21, 1989, JPMS did not project            
          future revenues, expenses, costs of maintaining the Paul Mitchell           
          brand name, or income.  Between December 1989 and January 1990              
          KPMG prepared projections of JPMS' revenues and expenses for fiscal         
          years 1990-94.                                                              
          M.  Post-Death Events                                                       
               1.  Mr. Fujieki's Request for JPMS Documents                           
               On June 29, 1989, Patrick Fujieki, trustee of the Trust, and           
          Michaeline Re11 were elected to the JPMS Board.  (The Board was thus        
          comprised of Mr. DeJoria, Ms. Braa, Mr. Fujieki, and Ms. Re.)  At           
          this time, the Trust was the shareholder of record of 49.04 percent         
          of the outstanding common shares of JPMS, of which 1 percent was to         
          be transferred to Mr. DeJoria in accordance with the terms of Mr.           
          Mitchell's Will and Trust.                                                  
               Mr. Fujieki (in his capacities as director of JPMS, trustee            
          for the Trust, and executor of Paul Mitchell's estate) asked to             


               11   Ms. Re, an attorney, joined JPMS on Jan. 1, 1989, as              
          vice president and general counsel, to oversee the correction of            
          certain operational problems.  On Mar. 1, 1989, she became JPMS'            
          chief operating officer.                                                    




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