Estate of Paul Mitchell, Deceased, Patrick T. Fujieki, Executor - Page 44

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               Mr. Brennan's report evaluated the reasonable level of                 
          compensation for services provided by Messrs. Mitchell and DeJoria          
          prior to Mr. Mitchell's death and made an estimate of the                   
          reasonable level of compensation for Mr. DeJoria for the 5 fiscal           
          years following Mr. Mitchell's death.  Mr. Brennan opined that the          
          amounts Messrs. Mitchell and DeJoria paid themselves for the 1984-          
          89 fiscal years were far in excess of the maximum amounts paid to           
          comparable top executives at equivalent enterprises for employee            
          services. Mr. Brennan concluded that the maximum level of                   
          reasonable compensation for Mr. DeJoria for 1990-94 would range             
          between $820,300 and $1,159,420, based on projections of an                 
          increase in sales revenue for those years.                                  
          C.  Critique of Experts                                                     
               Not unexpectedly, each party criticized the opposing experts'          
          analyses. The following points highlight these disparate                    
          perspectives.                                                               
               1.  Respondent's Arguments                                             
               Respondent criticizes Messrs. Weiksner's and McGraw's                  
          valuations as based on the mistaken assumption that JPMS was a              
          fragile, disorganized, mismanaged, problem-ridden company on the            
          verge of collapse as of April 21, 1989.  Moreover, respondent               
          criticizes three aspects of petitioner's comparable companies               
          analyses: (1) The kinds of multiples selected, the time periods to          
          which the multiples relate, and their weighting;  (2)  the                  
          adjustments made to JPMS' financial data; and (3) the adjustments           



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