November 17, 2009 Rainbow Natural Grocery Board Meeting Minutes by Charlotte Lundemo

The meeting started at 6:05pm

Board Members present: Irene Jones, Tom Lowe, Scotta Brady, Charlotte Lundemo, daniel johnson and Leo Huddleston. Also present were, Steve Whitlow, Bob Gordon, Bruce Frazier and Luke Lundemo.

The minutes of the last meeting were approved.

Steve Whitlow’s report: November is a shorter and traditionally slower month. The café/bakery/deli/soup and salad bar reached $30,000 in sales for the first time since October of 2008. This December we will have a membership drive for the whole month with ½ off the cost of a membership. We are projecting to go over 5000 members. This Friday and Saturday is members days. Sales will probably be slow after Thanksgiving. We got new shopping carts from ebay with Rainbow printed on the handles. Rainbow’s big asset is it’s employees who have a working knowledge of the products and what they can do for you.

Bruce Fraser’s Financial Report: This past month was the first time inventory was able to be done simultaneously with all the departments at once since we installed the new POS system. The inventory revealed that HABA is having problems with shrinkage around 5%. We were informed about bonuses for the staff. Money has been set aside for the bonuses. After the next quarter projection, if we do as well, raises or bonuses will be considered for the beginning of the 3rd quarter (February).

The board had an executive session to decide the bonuses of Steve Whitlow, Bruce Frazier and Luke Lundemo. The last bonus they had was two years ago.

Leigh Anne asked and the board approved that Saturday, December 5, 2009 be the date set for the staff party.

CEO Report: Tully Morrison has been sent many of the board meeting minutes for posting on the website. Some are still missing. Tom Lowe reported on his research into what is required in Mississippi to get our corporate structure moved to a Wisconsin consumer cooperative. Regarding our loan negotiations with Hope Credit Union, this week we hope to hand in the last 4 or 5 information items requested by Hope. We need key person insurance for Steve, Bruce and Luke. Luke needs to get with Tom Underwood to get some kind of agreement to continue with the rent and open purchasing agreement. Concerning Green Services store, the grand opening is Thursday for Fondren Unwrapped which starts at 5pm. Rainbow is swapping out light bulbs for energy saving bulbs. The logs for the flood gate are in process of being made plus a locking shroud to protect the gates from being stolen. Dinner & a Movie is this Friday with Unchicken Lasagna being served. The FedUs Cup contest finished. The POS system did well in producing reports as to who are our biggest spenders. Regarding High Noon, the Soup & Salad Bar set a new record for sales this past month.

There was no old or new business to discuss.

The meeting adjourned at 7:45pm.