Supreme Lodge Meeting Minutes

FROM THE SUPREME LODGE

February 3, 2021 Minutes of the Regular Meeting of SPJST Supreme Lodge held via online video conference

PRESIDING The meeting was called to order by Supreme Lodge Chairman John Engelke on Wednesday, February 3, 2021, at 9 a.m.

ATTENDING: Brian Vanicek, President; Delisle Doherty, Vice President; Leonard Mikeska, Chief Financial Officer; Roy Vajdak, Controller; Donnie Victorick - District One/Supreme Lodge Vice Chairman; Jesse Pospisil - District Two; John Engelke - District Three/Supreme Lodge Chairman; Bobby Davis - District Four; Bradley Stavinoha - District Five; Annie Vahalik - District Six; Regina House - District Seven; Melanie Zavodny, Editor/Director of Communication; Janie Coakley, Recording Secretary.

OPENING OF MEETING The meeting was opened by Supreme Lodge Chairman Engelke with a welcome to all. The Pledge of Allegiance was recited, and a moment of silence was observed in respect to our departed members and in honor of our government officials, military troops, law enforcement, firemen, EMS, healthcare workers, and others affected by COVID-19, especially our members who have been affected. Chief Financial Officer Mikeska led the Supreme Lodge in an opening prayer.

ANNOUNCEMENTS President Vanicek announced there will be three visitors today - Larry White of AQS Asset Management at 1 p.m. to report on investments; Rob Clift, executive director of Camp Kubena at 2 p.m. to report on the camp; and Bruce Bading of BFB Consulting at 4 p.m. to report on cyber security.

APPROVAL OF SUPREME LODGE MINUTES After review of the following minutes - October 20 and 21, 2020 Regular Meeting; November 3, 2020 Special Called Meeting; November 5, 2020 Special Called Meeting; November 21, 2020 Special Called Meeting; and December 22, 2020 Special Called Meeting, Controller Vajdak moved we accept all the minutes as written. Director Pospisil seconded the motion, and the motion carried unanimously.

MANAGEMENT TEAM MEETING NOTES The management team meeting notes were reviewed.

OLD BUSINESS The executive officers each presented a report on their old business, and each report was accepted as presented. INVESTMENTS Chief Financial Officer welcomed Larry White of AQS Asset Management to the meeting. Larry reported on the portfolio yield rate of return from inception with AQS and current yields. He also discussed SPJST’s current and proposed assets.

Director Victorick moved that we raise the total amount that can be invested in a commercial direct loan mortgage from $500,000 to $1,000,000. Director House seconded the motion, and the motion carried unanimously.

Chief Financial Officer Mikeska moved that we approve the Investment Policy Statement with corrections made on page 8, correcting the purchase limits of invested assets. Director Pospisil seconded the motion, and the motion passed unanimously.

CAMP KUBENA President Vanicek moved that we add Editor/Director of Communication Zavodny as a member of the Camp Kubena Advisory Committee. Chief Financial Officer Mikeska seconded the motion, and the motion carried unanimously.

Rob Clift, executive director of Camp Kubena, presented the proposed 2021 budget for Camp Kubena.

President Vanicek, on behalf of the Camp Kubena Advisory Committee, moved that we accept the proposed budget as presented. Controller Vajdak added there would be a depreciation amount of $28,000 in the budget that was not listed. This motion does not require a second due to the Advisory Committee making the motion. The motion passed with eight in favor, two opposed, and one abstention. Voting in favor: President Vanicek, Chief Financial Officer Mikeska, Controller Vajdak, Director Victorick, Director Pospisil, Director Engelke, Director House, and Director Vahalik. Voting in opposition: Director Davis and Director Stavinoha. Abstained: Vice President Doherty.

Rob Clift, executive director of Camp Kubena, presented the proposed cost to upgrade the existing “Tractor Barn” to become the new “Maintenance Barn” with a concrete floor, fence, and upgraded electrical and plumbing. This will provide a safer, organized, and visually appropriate location for the maintenance needs of Camp Kubena.

Director Victorick moved to proceed with the relocation of the maintenance barn and accept a bid of $145,648 from Round Top Builders. Director Engelke seconded the motion, and the motion carried with eight in favor, one opposition, and two abstentions. Voting in favor: President Vanicek, Chief Financial Officer Mikeska, Controller Vajdak, Director Victorick, Director Pospisil, Director Engelke, Director House, and Director Vahalik. Voting in opposition: Director Stavinoha. Abstained: Vice President Doherty and Director Davis. CYBER SECURITY Bruce Bading, president of BFB Consulting, discussed the risk of cyber security.

NEW BUSINESS The executive officers each presented a report on their new business, and each report was accepted as presented.

President Vanicek discussed the physical condition of Lodge 40, El Campo-Hillje and items that need to be corrected. Director Victorick moved that the Supreme Lodge directs Supreme Lodge President Brian Vanicek and SPJST District Six Director Annie Vahalik to act expediently in working with the lodge to ensure that the structural integrity of the Lodge 40, El Campo-Hillje building remains intact and the overall neat appearance of the property be maintained. Director Vahalik is further instructed to proceed posthaste in contacting a property insurance company to insure the building against sudden and/or catastrophic loss. Expenses aligned with this project are subject to review and approval by Supreme Lodge officers. Correspondingly, the Supreme Lodge reserves the right to request compensation or to assess Lodge 40, El Campo-Hillje at a later date. In the interim, any plans to sell, lease, and/or otherwise reassign the use of the lodge building and property are subject to review and discretion of the Supreme Lodge. The motion was seconded by Director House, and the motion passed unanimously.

Director Victorick moved that Controller Vajdak be requested to audit the financial records of Lodge 40, El Campo-Hillje. Director House seconded the motion, and the motion carried unanimously.

Chief Financial Officer Mikeska reported on three meetings concerning investments: October 29, November 18, and December 10. Director Pospisil moved to ratify as presented. Director Stavinoha seconded the motion, and the motion carried unanimously.

Chief Financial Officer Mikeska moved for approval of the recommended rates on annuities as presented in his report. Director Victorick seconded the motion, and the motion carried unanimously. The rates remain the same from last quarter.

Chief Financial Officer Mikeska moved for approval of the recommended rates on universal life as presented in his report. Controller Vajdak seconded the motion, and the motion carried unanimously. The rates remain the same from the last quarter.

Chief Financial Officer Mikeska reported on five delinquencies; he stated all are well secured. He will continue to monitor and collect payments.

Controller Vajdak presented and reported on the quarterly statement and statement of operations dated December 31, 2020, and the proposed 2021 to 2025 budget.

Controller Vajdak moved to adopt the 2021 to 2025 budget with any needed revision completed in the April 2021 Supreme Lodge meeting. Director Victorick seconded the motion, and the motion carried unanimously. Director Pospisil stated he was against the reduction of the budgeted amount for support of the Czech Heritage Museum.

President Vanicek discussed the need for clarity of voting during online meetings.

SUPREME LODGE CLARIFIES VOTING ELIGIBILITY FOR ELECTRONIC MEETINGS Delegates to the 32nd SPJST Convention in 2016 approved Section 68 which states, “Electronic Communication. Any meeting of SPJST at which written minutes are kept, except the convention, may meet by telephone conference or other means of communication that allows all participants to simultaneously communicate with each other.” Members participating electronically in lodge meetings may vote via laptop or smartphone provided that their visual identity has been verified by the meeting host and/or tabulator. Hybrid meetings are permissible in which members are present both onsite and electronically.

Director Victorick moved to accept the clarification of the Supreme Lodge on voting eligibility for electronic meetings. Director Pospisil seconded the motion, and the motion carried unanimously.

ADJOURNMENT There being no further business, Director Vahalik moved for adjournment. Director Pospisil seconded the motion, and the motion to adjourn carried unanimously.

Chairman Engelke adjourned the meeting at 6:55 p.m. The next regular meeting of the Supreme Lodge will begin at 8 a.m. on April 20, 2021. Janie Coakley, Recording Secretary Leonard Mikeska, Chief Financial Officer —SPJST—

DISTRICT DIRECTORS’ REPORTS

District One Director Donnie Victorick

Activity Report

November - Online meeting introducing new SPJST Vice President; Lodge 9, Snook meeting; Supreme Lodge special called meeting; District Five youth social (cooked hot dogs); Fraternal Focus webinar; Supreme Lodge Strategic Planning meeting.

December - Lodge 17, New Tabor memorial service and youth Christmas program; Lodge 141, Sealy meeting; online SPJST Supreme Lodge meeting; webinar Meet the Vice President and RGAs; visitation for Evelyn Green (President Vanicek’s mother-in-law) in Rosebud.

January - Lodge 9, Snook meeting; Lodge 13, Dime Box meeting; webinar demonstration with Equisoft; webinar with Illustrate, Inc.; webinar with Sales Force.

Commentary

Below are my thoughts about 2020 and things that I believe we need to improve.

Successes of 2020 1. How successful was and is working from home? 2. Had amazing YADs virtually at a cost savings 3. Had virtual Supreme Lodge meetings 4. Numerous webinars 5. Increase in investment income 6. We are seeking new ways of doing business 7. Now have uniform training for RGAs and sales agents 8. Fraternal Focus webinars 9. Reaching out more to members via social media 10. Cutting costs and reducing expenses 11. Efficiency study completed and need for continuing to implement 12. Overall willingness to change 13. Focus on improving 14. Realization by some that you get what you pay for 15. Open and frank discussions 16. More of a focus on working together 17. Lowering our breakeven point on insurance 18. Placing more of an emphasis on annuities and training agents to sell 19. Reducing our loss from operations by looking at operating costs 20. Being more proactive instead of reactive

Things that Need to be Worked on and Improved 1. Officers, don’t pit staff against directors 2. Directors being more appreciative towards officers and staff 3. Officers need to be more innovative 4. Officers lead and not be afraid to make mistakes 5. Officers take more responsibility for our shortfalls 6. Directors need to spend more time looking for ways to improve our organization 7. Need to work as a team 8. Officers should not take criticism personally 9. Officers should be more open to new ideas and changes 10. Officers realize they can disagree with one another and still respect and work with each other 11. Officers should not team up against one another 12. Consolidate our systems where we are piecemealing with different vendors 13. Respect one another and agree to disagree 14. Make decisions for what is best for the organization and not because of friendships 15. Officers and Directors accept the decision of the majority and support it outside the board 16. Continue to be proactive and look to the future 17. Don’t keep doing things the same old way 18. Look for ideas and procedures to make us current 19. Directors speak your conscience wearing your business hat and not being afraid to challenge officers 20. Directors need to realize their fiduciary responsibilities. It all falls on us if we fail.

I also want to say that we had a very positive meeting covering a lot of areas. I especially want to thank Delisle for all he has accomplished in these last few months. I look forward to the time ahead with the encouraging improvements we are attempting to implement. We just need to remember to stay our course and not let things get in our way of bringing the SPJST current. We have a ways to go, and these changes will take time. We must continue to be persistent and do what is best for SPJST. We all need to be looking forward to 2021.

Fraternally, Donnie Victorick, FICF, CFFM District One Director

District Two Director Jesse Pospisil

Activity Report

October - Lodge 200, Bruceville-Eddy meeting and installed 2021 officers; Fraternal Focus webinar; Lodge 29, Taylor meeting; Texas Czech Heritage and Cultural Center Muziky Festival in La Grange; Supreme Lodge meeting; Lodge 24, Cyclone barbecue fundraiser.

November - Lodge 47, Seaton meeting; Supreme Lodge special called meeting; delivered discretionary fund check to Lodge 87, Temple; Lodge 246, Morgan’s Point meeting and presented discretionary fund check; presented discretionary fund check to Buckholts Volunteer Fire Department; helped prepare meal for medical benefit at Lodge 47, Seaton.

December - Lodge 80, Holland meeting; delivered discretionary fund checks in Taylor; Lodge 187, Round Rock meeting and Christmas party; online Supreme Lodge meeting; webinar - Meet the Vice President and RGAs.

Commentary

Thanks to the officers and directors for their excellent reports that they shared prior to the meeting. These reports allow the directors to make the sometimesvery-difficult decisions much easier.

After hearing Vice President Delisle Doherty’s new sales plan, I am hoping to see a vast improvement to our insurance income.

This quarterly Supreme Lodge meeting was held virtually. I like the GoToMeeting format, and it worked well for our meeting. This also saves SPJST a great amount of money since there are no travel expenses. Fraternally, Jesse Pospisil District Two Director

District Three Director John Engelke

Activity Report October - SPJST Senior Living meeting in Temple.

November - Supreme Lodge special called meeting in Temple; Lodge 6, Cottonwood meeting; Fort Worth Parade of Lights video recording with SPJST Float, State Royalty, and District Three; Supreme Lodge Strategic Planning meeting; Lodge 66, Waco meeting.

December - Lodge 180, Burleson meeting; Lodge 84, Dallas meeting; Temple Christmas Parade with SPJST Float and State Royalty; video message recording for SPJST Christmas greeting; online Supreme Lodge meeting; Lodge 66, Waco meeting.

January - Lodge 6, Cottonwood meeting; virtual Youth Leaders Workshop; Lodge 35, Elk meeting; Lodge 66, Waco meeting.

February - Camp Kubena Advisory Committee meeting; Supreme Lodge meeting.

Commentary I would like to thank the officers and directors for allowing us to change the meeting date due to illness. I feel that we had a very good virtual meeting and accomplished a lot in one day. I look forward to an onsite meeting in April so we can get ready for our August convention. I ask that all our members practice safety in meeting over the next few months. I hope we get to a better resolution with the coronavirus disease. Fraternally, John Engelke District Three Director/ Supreme Lodge Chairman

District Four Director Bobby Davis

Activity Report

November - Conference call, Supreme Lodge special called meeting; Supreme Lodge Strategic Planning meeting.

December - Fraternal Focus webinar; assist member after death (member service); Lodge 230, Midland meeting and election of officers; Lodge 229, Abilene Christmas party and election of officers; online Supreme Lodge meeting.

Commentary

We need to look at cutting waste - every dime counts. I believe that as directors we need to set an example. As state field managers, we were told that in order to stay in a hotel, we had to be more than 100 miles. As directors, we need to be at least 50 miles, which is still less than the field managers. Also we were told if you were 100 miles from home, we were to buy our own meals not unless you were working with agents. I believe as directors we need to honor the same.

How are we monitoring employees working at home, and is there any overtime pay being paid out? Fraternally, Bobby Davis, FICF, CFFM District Four Director

District Five Director Bradley Stavinoha

Activity Report

November - Supreme Lodge conference call about social members; new agent training in Rosenberg; online meeting regarding new Supreme Lodge Vice President; Supreme Lodge special called meeting in Temple; District Five youth night at Lodge 88, Houston; Supreme Lodge Strategic Planning meeting.

December - Fort Bend Czech Heritage Society Christmas party; 2021 Texas Legislature meeting with elected officials to set agenda; American Fraternal Alliance Encore online event reception; Fraternal Focus webinar; Wellington webinar on 2021 bond market; University of Houston CT Bauer College of Business leadership webinar; American Fraternal Alliance Encore online meeting; online Supreme Lodge meeting; webinar - Meet the Vice President and RGAs; member spotlight in El Campo.

January - Agent training; Czech Catholic annual meeting; Lodge 88, Houston annual meeting; Equisoft demonstration webinar; virtual Youth Leaders Workshop; Lodge 81, Needville meeting; agent training webinar on using e-application; Illustrate, Inc. demonstration webinar; Czech Heritage Society fundraiser in Needville; American Fraternal Alliance Board Success webinar; Equisoft webinar on insurance; insurance training on life insurance; ILS investment webinar.

February - Sureify demonstration; online Supreme Lodge meeting.

Commentary

The year 2020 was one for the records. Without the camp losses because of Covid-19, BKD efficiency study, and the loss on some bonds we had to sell, SPJST would have been profitable in 2020. I see a bright future for the organization.

We have such a great marketing and sales professional in our new Vice President Delisle. He has brought fresh ideas and great changes to increase insurance and annuity sales for SPJST. We did a marketing strategy session with some great ideas being presented by Delisle. We also talked about having a presence and agents in areas of Texas where SPJST is underrepresented such as Austin. We will also be asking for involvement, input, and expertise from marketing professionals who are members of SPJST. Agents will also be excited about new illustration and possible CRM software coming to aid them in sales.

I recently took the NAMIC course to become an FMDC certified board of director. I obtained lots of good information and skill that I can share with the Supreme Lodge.

Fraternally, Bradley Stavinoha District Five Director

District Six Director Annie Vahalik

Activity Report

November - Lodge 30, Taiton meeting and installation of officers; Supreme Lodge special called meeting conference call; Supreme Lodge special called meeting in Temple; Lodge 4, Hallettsville meeting and installation of officers; Lodge 184, Moulton meeting and installation of officers; Lodge 41, Port Lavaca meeting and installation of officers; Supreme Lodge Strategic Planning meeting in Temple; Supreme Lodge special called meeting in Temple.

December - El Campo Christmas Parade with SPJST Float; Fraternal Focus webinar; Lodge 40, El Campo-Hillje meeting and officer installation; Lodge 151, Wharton meeting, officer installation, and Christmas party; Fraternal Focus webinar; webinar - Meet the Vice President and RGAs.

January - virtual Youth Leaders Workshop; youth webcast; phone meetings with District Six Cemetery Association business; checked on all three SPJST District Six Cemeteries - Shiner, Moravia, and Velehrad; met with Victoria Diocese regarding Moravia Cemetery; webinar with Eric Swanson of illustrateinc.com; Equisoft webinar.

Commentary

This was a great meeting with thorough reports. We covered a lot of important topics. I commend the Home Office for keeping business going through this pandemic. I appreciate the support for the Lodge 40, El Campo-Hillje hall. I am excited for Camp Kubena and hope it will have a good camping season. Fraternally, Annie Vahalik District Six Director

District Seven Director Regina House

Activity Report:

October - Supreme Lodge meeting at the Home Office in Temple.

November - Supreme Lodge special called meeting via conference call; Supreme Lodge special called meeting in Temple; Lodge 107, Floresville meeting (canceled); Fraternal Focus webinar.

December - Met with Supreme Lodge Vice President Delisle Doherty and District Seven Regional General Agent (RGA) Armando Perez; Lodge 202, Jourdanton meeting and installation of officers; Lodge 107, Floresville meeting; online Supreme Lodge meeting.

January - virtual Youth Leaders Workshop; youth webcast.