LAKESIDE COMPANY

#75-2F Sunshine Mall Building A Richmond Street, Cubao Quezon City

lakesidecom@gmail.com
07-456-7414

MINUTES - BOARD OF DIRECTORS' MEETING

September 1, 1991

Meeting was called to order at 1:00 P.M.

Members present: Benjamin Rogers, Scott Arnold, Steve Reese, and Roberta Verga
Members absent: None

Rogers distributed Lakeside's interim financial information for the first two quarters of 1991
and discussed the major changes in results from the previous year. Questions followed
concerning specific revenue and expense items. Discussion centered on methods for
increasing store sales, especially at Store 6. Rogers stated that he was confident the new
bonus incentive system would generate additional sales by encouraging the management of
each store to be more aggressive.
Rogers offered a motion that a P15, 000 cash dividend be paid to the owners on record as of
September 10. The motion was seconded by Verga, with discussion following. Rogers
explained that the dividend was less than the previous year but that the company needed to
maintain a strong liquidity position to ensure growth. This motion passed unanimously.
Rogers indicated that the seventh Lakeside store would be opening on or about December 1
to take advantage of the Christmas rush. The store is being built in Williamsburg, Virginia by
Rogers Development Company, a company wholly owned by Rogers and his wife. Rogers
offered a motion that Lakeside signs a one-year lease for this property beginning on
December 1, 1991, at a price of P 21,000 per year to be paid in advance. Verga seconded this
motion and discussion followed. Reese asked for an explanation for having Rogers construct
the facility instead of Lakeside. The president indicated that this arrangement was designed
to protect the debt/equity ratio of the company. This motion passed unanimously.
Rogers offered a motion that P200, 000 be borrowed to build an addition to the company
warehouse as well as to renovate the present facility. The motion was seconded by Arnold,
and considerable discussion followed. Rogers stated that the warehouse roof needed
immediate repair because leaks were endangering the inventory. At the same time, because
of the increased growth of distributorship sales, the facility no longer would hold an
adequate supply of merchandise. Rogers said that he had already received an estimate of
P220, 000 for both fixing the roof and increasing the size of the warehouse by approximately
one-half. Of this amount, Lakeside would borrow P200, 000 and put up the rest from current
funds. Concern was expressed because of the high interest rates being charged at the present
time. Reese suggested that Rogers talk with several lenders in order to obtain the lowest
possible rate. This motion passed unanimously.
Meeting adjourned at 2:40 P.M.

Steve Reese
Steve Reese, Secretary