July 20, 2010 Rainbow Natural Grocery Board Meeting Minutes by Charlotte Lundemo

Charlotte Lundemo took minutes for the meeting. The meeting started at 6:07pm

Board Members present: Irene Jones, daniel Johnson, Scotta Brady, Gen Barbour, Leo Huddleston, Tom Lowe and Charlotte Lundemo. Also present were, Leigh Anne Lawson, Bruce Frazier, Luke Lundemo and Bob Gordon.

The board minutes from June 15, 2010 were approved.

Steve Whitlow’s report: The purchase of a backup generator is moving forward. It will supply enough power to keep essential freezer and refrigeration units running and be powered by natural gas. June was our fourth record sales month in a row.

Bruce Frazier’s Financial Report: June sales numbers exceeded the budget projection by about $20,000 and resulted in about $6,000 more net income than we were projecting. Although our cash flow situation improved, we still have a large amout of money owed in accounts payable, so any improvement in cash flow is quickly absorbed by paying bills. Our long term liabilities continue to drop. There was a discussion about building a savings reserve fund of around $50,000. It was Bruce’s opinion that this would be possible but it might take 3-4 years to accomplish.

The board expressed a wish to formally commend Bryan Carrero for all his work in High Noon.

Bruce Frazier agreed to invite our CPA, John Goodman to the next board meeting.

Luke’s Report:

The project of issuing stock certificates to shareholders has moved forward. There are still some procedural issues to be worked out but all 242 certificates are ready as is the bookkeeping logs.

June marked the fifth month in a row that the prepared foods department recorded sales at or above $30,000. In June, this department experienced about a 10% drop in sales but the café actually increased sales. The decline was due to lower sales in the deli, bakery and salad bar. daniel and Luke will get together to plan out the logistics around the annual meeting.

Luke distributed a timetable of deadlines related to the annual meeting.

The meeting adjourned at 7:51pm.