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Mr. DeJoria's salesmanship, marketing savvy, and construction of
the distribution network were also vitally important.
In addition, Mr. Taylor, whom we found extremely credible,
testified that Mr. Mitchell was not as essential to Minnetonka's
interest in JPMS as Mr. DeJoria. Mr. Taylor also observed that the
deaths of fashion designers Perry Ellis and Anne Klein did not
affect their ongoing businesses to any significant degree "because
the consumer somehow is so far removed from the actual * * *
involvement of that designer * * * they're still buying the
product."
In our opinion, the $150 million value for JPMS at the moment
immediately prior to Mr. Mitchell's death should be discounted by
10 percent to reflect the loss of Mr. Mitchell to JPMS. Thus, we
believe that at the moment of Mr. Mitchell's death, JPMS had a
value of $135 million.
We further believe: (1) A total 35-percent discount is
appropriate, reflecting combined discounts for lack of
marketability and minority interest; and (2) a $1.5 million
discount, reflecting the possibility of a lawsuit over Mr.
DeJoria's compensation, should be applied. Taking these factors
into consideration, we find, and thus hold, that the value of
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