Rainbow Board Meeting Minutes

October 18, 2007

Attendees: Luke Lundemo, Ann Herlihy, Leo Huddleston, Michael Goggans, Joy Adams and non board Members Steve Whitlow, Bruce Fraiser, Kenny Strehl and Brad Hooey. Board Members absent Irene Jones and Barbara Scobee.

A quorum was present.

The meeting was called to order at 6:05 pm.

Approval of Minutes: The minutes from the September Board meeting were approved.

Member's Input: Brad Hooey, High Noon Cafe deli manager stated that he wanted to meet with the Board. He stated that one of his goals for the deli was to make it financially stable.

Manager's Report: Steve Whitlow presented the manager's report. He presented the advertising that has been planned for the High Noon Café and deli that was designed by Daniel. He stated that Rainbow is doing very well. He discussed how the average shopper is purchasing more items per shopping trip. And that Rainbow is working on lowering prices for customers when and where they can. .

Financial Report: Bruce Fraiser presented the financial report. He reviewed the various reports including cash flow chart and point of sales report. He stated that the numbers for Rainbow continue to look good.

Old Business:

Update on lease - Steve stated that he had attempted to contact the owners but still had had no response. The board discussed the need for a current lease. Luke to draft a letter to be signed by the board members requesting a current lease.

Ovens - still no decision on this. There was much discussion on this. Steve is to get the figures for the baked goods so the board can review the cost of the bakery and the potential pay off of a new oven.

Plaza Renovation - This has been tabled until the lease situation is resolved.

The Outreach Committee will meet on the 2^nd Thursday of each month at 6pm. Daniel was absent at the board meeting so there was no outreach committee report.

Board Member Name tags - it was decided that the Board Members would have laminated name tags like the Rainbow employees have. .

Product purchasing criteria - Information about this that was compiled from the various department heads was passed out.

New Business:

Michael presented some information about Rainbow's legal structure. It is his opinion that Rainbow should never have been chartered under the agriculture production. Luke disagrees with this assessment. Michael to draft a letter to the Mississippi State Tax Commission and the Secretary of State requesting clarification of Rainbow's legal structure.

Discussion about the annual meeting. Luke to contact the Cedars to see about the availability of the facility for the last Sunday in March.

Luke presented information about the old McRae's space. He stated that it is approximately 42,000 square feet and has 374 parking spaces. It was built in 1951. There is a loading dock in back along with storage space. The owners offered 85,000 in build out money and 6 months free rent.

Meeting was adjourned at 8:15 pm.

Minutes submitted by Ann Herlihy