June 16, 2010 Rainbow Natural Grocery Board Meeting Minutes by Charlotte Lundemo

Charlotte Lundemo took minutes for the meeting. The meeting started at 6:15pm

Board Members present: Leo Huddleston, Scotta Brady, Charlotte Lundemo, daniel Johnson and Irene Jones. Also present were, Steve Whitlow, Bruce Frazier and Luke Lundemo.

The board minutes from May 18, 2010 were approved.

Luke’s Report:

The board received copies of the new Articles of Incorporation and Bylaws. There was an approved motion to change Bylaw 5, specifically to delete Class B shares and references to them as we will not have Class B shares at this time based on advice from our legal representative in Wisconsin. Every board member will be required to be a shareholder according to the new bylaws. The annual meeting was announced to be on Sunday, October 3, 2010. The Board appointed a nominating committee for Board members consisting of Charlotte Lundemo, Leo Huddleston and Scotta Brady. A spreadsheet on the Café showed sales above $30,000 although Café sales fell off. The Deli sales were strong. The Rainbow enews keeps growing and now has 1,600 recipients. The Computer Co-op’s Cybercafe is going solar. Tully Morrison has updated the Rainbow Yahoo Group with the new business name. A campaign to promote the sale of stock is being organized. We need to make known the annual meeting has been officially changed to after the fiscal year. The purchasing criteria advertising will in the future include the disclaimer that our buyers make every effort to meet these criteria.

Bruce Fraser’s Financial Report: Rainbow has a net operating loss in May of under $100. The employees will receive a pay increase in August if the inventory adjustments are near normal. Inventory will no longer be done each quarter. It will be changed to twice a year. The Board needs to approve the budget at the next meeting.  The chapter 11 had been paid off so far as the IRS is concerned. Mississippi State taxes will be paid off as of February 2011. We’ll then focus on paying off the Point of Sale system. The unsecured chapter 11 creditors can be paid at a slow rate over several years.

Steve Whitlow’s report: May sales were the best May sales in the history of Rainbow. June is looking good also. Payroll expenses are 23% of sales. The last inventory adjustment was less than a 1% change. We have received 3 quotes for a new backup generator. We are getting quotes on a new produce stand that is self contained. Bruce and daniel decided to put the employee retreat off until after September.

The meeting adjourned at 7:48pm.