Executive Committee Meeting Minutes

FROM THE SPJST Executive Committee

January 18 and 19, 2022, Minutes of the Regular Meeting of SPJST Executive Committee held at the SPJST Home Office Temple, Texas

PRESIDING The meeting was called to order by Chair of the Board of Directors John Engelke on Tuesday, January 18, 2022, at 8:45 a.m.

ATTENDING Board of Directors: Donnie Victorick - District One/Vice Chair of the Board of Directors; Jesse Pospisil - District Two; John Engelke - District Three/Chair of the Board of Directors; Bobby Davis - District Four; Bradley Stavinoha - District Five; Annie Vahalik - District Six; Regina House - District Seven. Executive Officers: Brian Vanicek, President/CEO; Delisle Doherty, Vice President of Sales and Marketing; Melanie Zavodny, Vice President of Communications; Leonard Mikeska, Chief Financial Officer; Roy Vajdak, Controller. Recording Secretary: Linda Hill, Executive Assistant to the Chief Financial Officer.

OPENING OF MEETING The meeting was opened by Chair Engelke with a welcome to all. The Pledge of Allegiance was recited, and a moment of silence was observed in respect for our departed members. Vice President of Sales and Marketing Delisle Doherty led the Executive Committee in an opening prayer.

ANNOUNCEMENTS President/CEO Vanicek announced the visitors who would be joining the meeting: Camp Kubena Executive Director Rob Clift at 9 a.m. on Wednesday (remote) and Larry White and Stephen Gonzalez of AQS Asset Management at 11 a.m. on Wednesday.

APPROVAL OF EXECUTIVE COMMITTEE MINUTES The October 20 and 21, 2021, minutes of the regular meeting of the Executive Committee and the December 7, 2021, minutes of the special called video conference meeting of the Executive Committee were reviewed. Director Victorick moved to accept all the minutes as written. Director Stavinoha seconded the motion, and it carried unanimously.

MANAGEMENT TEAM MEETING NOTES The management team meeting notes were reviewed. Director Victorick moved to accept the team notes as written. Director House seconded the motion, and it carried unanimously. and Executive Assistant to the President/CEO Sandra Dubcak will be under the supervision of President/CEO Vanicek. The motion carried unanimously. President/CEO Vanicek remains engaged in the development, implementation, and oversight of members and community engagement activities.

CZECH HERITAGE SOCIETY A donation of $ 1,000 was approved to help with the printing of the Czech Heritage Society’s newsletter, Cesky Hlas. A motion was made by Director Pospisil, seconded by Director Vahalik. Motion carried unanimously.

Recess was from 12 to 1 p.m.

TERRITORY MANAGERS Vice President of Sales and Marketing Doherty discussed implementing three territory managers. They would be captive agents, who will only write life insurance and annuity products with SPJST. Motion was made by Director Victorick, seconded by Director Davis, to implement the territory manager program which will be reevaluated in one year. The motion carried unanimously.

Recess was from 2:28 to 2:48 pm

REAL ESTATE DELINQUENCIES Chief Financial Officer Mikeska discussed the delinquencies with a motion made by Director Stavinoha, seconded by Director Davis, to accept the recommendations as written. Motion carried unanimously.

INVESTMENT REPORT Chief Financial Officer Mikeska presented his report of investments. Motion was made by Director Vahalik, seconded by Director House, to ratify the investments for the period beginning October 1, 2021, through December 31, 2021. The motion carried unanimously.

INTEREST RATES Director Victorick moved, seconded by Director Pospisil, to leave interest payout rates on annuities and Universal Life certificates unchanged from February 1, 2022, to April 30, 2022. Motion carried unanimously. Interest rates on currently marketed products are:

Product Current Rate Plan Codes Universal Life 4 3.00% 1282 to 1309 1-Year Annuity 1.25% 8067 2-Year Annuity 1.75% 8068 5-Year Annuity 3.25% 8064 Annuity 7 3.25% 8069 to 8075 SPDA-Special Offer

Non-Qualified *** 8076 SPDA-Special Offer

Qualified *** 8077 SPDA-Special Offer

Qualified-Roth *** 8078 Lodge Management Fund 3.25%

OLD BUSINESS Executive Officers - President/CEO Vanicek, Vice President of Sales and Marketing Doherty, Chief Financial Officer Mikeska, Controller Vajdak, and Vice President of Communications Zavodny each presented a report on their old business, and each report was accepted as presented. Director Victorick moved to accept the reports as presented, and Director Vahalik seconded the motion. The motion carried unanimously.

SOCIAL SECURITY ADMINISTRATION BUILDING Director Vahalik inquired about SPJST’s responsibilities for all cleaning and repairing at the Social Security Administration building. As the owner of the building and as it states in the lease agreement, we are to repair and maintain building. Director Pospisil moved, seconded by Director Victorick, to proceed with the items provided in the GSA inspection. The motion carried unanimously.

Recess was from 9:54 to 10:11 a.m.

AUDIT COMMITTEE Director House reported on the audit held on Monday, January 17. Audit committee members are Director House, chair, Director Engelke, Director Victorick, and Director Pospisil.

SPJST CONVENTION LOCATION FOR 2024 Vice President of Communications Zavodny provided information on possible locations for the SPJST Convention in 2024. After reviewing six locations, a motion was made by Director Victorick for the convention to be held in Temple on June 7 to 9, 2024, at the Frank W. Mayborn Convention Center with Hilton Garden Inn serving as the host hotel for delegate rooms. The motion was seconded by Director Pospisil. Voting in favor were Director Victorick, Director Pospisil, Director Engelke, Director Davis, Director Vahalik, and Director House, Voting against was Director Stavinoha. The motion was approved.

ENHANCED PREMIUM REFUND GUIDELINES Vice President of Communications Zavodny revisited the enhanced premium refund guidelines, where every lodge is required to submit news to the Vestnik in order to receive the premium refund. Director Victorick moved, seconded by Director Vahalik, to amend the guidelines for Vestnik submissions to four per year for each lodge in order to receive the premium refund in 2023. The motion carried unanimously.

NEW BUSINESS The Executive Officers each presented a report on their new business.

REASSIGNMENT OF STAFF A motion was made by Director Victorick, seconded by Director Stavinoha, to reassign State Fraternal Director Frank Horak, Fraternal Services Specialist Tammy Martinez, and Fraternal Department Assistant Ruth Hanusch to be under the supervision of Vice President of Communications Zavodny. HR Administrator Nancy Miller

NEW UNIVERSAL LIFE PRODUCT Director House moved, seconded by Director Vahalik, to discontinue Universal Life 4 and implement the new Family Value Universal Life paying interest rate of 3 percent and guaranteed at the rate of 2 percent. The motion carried unanimously.

SECURITY AND FIRE SYSTEM UPGRADE Chief Financial Officer Mikeska discussed the outdated security system. Motion was made by Director Victorick, seconded by Director House, to authorize CFO Mikeska to gather information on upgrading the security system for the safety of the Home Office. Motion carried unanimously.

REAL ESTATE There was some interest in an available property across the street from the Home Office. Motion was made by Director Victorick, seconded by Director Pospisil, to gather more information concerning the building. Motion carried unanimously.

Recess was from 5 p.m. until Wednesday, January 19 at 8:17 a.m.

Board Chair Engelke welcomed everyone to the meeting. Vice President of Sales and Marketing Delisle Doherty led the Executive Committee in an opening prayer.

ITEMS RELATED TO LODGE 40, EL CAMPO-HILLJE A motion was made by Director Victorick, seconded by Director Pospisil, to notify the president of Lodge 40, El Campo-Hillje that “any and all decisions of the January 16 general meeting of SPJST Lodge 40, El CampoHillje are hereby declared invalid.” The motion was made on the basis that members received an email notice from the SPJST Home Office on the morning of January 15, notifying them that the meeting previously scheduled to take a place on January 16 had been postponed until March 13. As a result, members who received and acted upon the notice – regardless of any factors which may have contributed to its distribution – did not attend the meeting and may have been deprived of their right and/or intent to participate in the general meeting. Motion carried unanimously.

In a second action, a motion was made by Director House, seconded by Director Victorick, that SPJST management take such steps as necessary to purchase property and casualty insurance coverage for the lodge building to ensure property be secured from loss in the event of natural disaster and/or damages incurred by theft and/or vandalism. Explanation: While the members of a lodge have control over many aspects of lodge operation, the Board of Directors, as the chief governing body of SPJST, has a fiduciary duty to manage and protect SPJST’s assets. When it is deemed necessary, that responsibility includes taking steps to protect the assets – both real and tangible – of it subordinate lodges. The motion carried unanimously. In a third action, a motion was made by Director House, seconded by Director Victorick, that SPJST Home Office expenses incurred for insuring the SPJST Lodge 40, El Campo-Hillje building may be recouped from proceeds generated from the anticipated sale of the lodge property. Motion carried unanimously.

In a fourth action, a motion was made by Director Victorick, seconded by Director Stavinoha, that SPJST District Six Director Annie Vahalik be responsible for securing the services a third-party property and casualty insurance company and working with SPJST Home Office personnel to see that action two and three are completed in an expeditious manner. Director Vahalik is further charged with the responsibility of securing the determination of any repairs and/or improvement which may be necessary that will lead to an expedient and fair market value sale of physical property(ies) held in the name of SPJST Lodge 40, El Campo-Hillje; likewise, any charges incurred from said repairs and/or improvements may be recouped from proceeds generated from the anticipated sale of lodge property.

CAMP KUBENA Camp Kubena Executive Director Rob Clift presented a comprehensive report and need for an additional building to serve as the medical lodge and for needed repairs at Camp Kubena. Motion was made by Director Stavinoha, seconded by Director Davis, to purchase a 24x16 wood building to use as the medical lodge at a cost of $22,000 which included finishing out the interior. Motion carried unanimously.

Camp Kubena Executive Director Clift also presented a proposal for painting and sealing the roof of the maintenance building at a cost of $4,000; painting and sealing the roof of the welcome center building at a cost of $8,500; and staining the decks on all buildings at a cost of $9,500. Total cost of all work is $22,000. Motion was made by Director Davis and seconded by Director House. Voting in favor were Director Victorick, Director Pospisil, Director Engelke, Director Davis, Director Vahalik, and Director House. Voting against was Director Stavinoha. The motion was approved.

Recess was from 10:12 to 10:30 a.m.

CZECH LANGUAGES IN SCHOOLS Information was presented from Lodge 67, Schulenburg member Thadious Polasek, who is working with high schools in an effort for more schools to teach the Czech language. Motion was made by Director Victorick, seconded by Director Pospisil, to donate $1,500 to Brother Polasek to assist with the efforts of teaching Czech language in high schools. Motion carried unanimously.

AQS REPORT AQS representatives Larry White, Stephen Gonzalez, and Lee Stordahl presented a report on SPJST investment performance. They reported a book yield increase of 4.37 percent to 4.79 percent since January 1, 2021. Recess for lunch was from 12 to 1 p.m. During lunch, the Executive Committee and guests viewed Dance Hall Days: A Documentary on Texas Dance Halls, which features several SPJST halls.

EXECUTIVE SESSION The Committee entered executive session to discuss personnel matters from 2:11 until 4:30 pm.

ADJOURNMENT With no further business, Director House moved for adjournment. Director Vahalik seconded the motion, and the motion to adjourn carried unanimously.

Board Chair Engelke adjourned the meeting at 4:30 p.m.

The next regular meeting of the Executive Committee will begin at 8 a.m. on Tuesday, April 19, 2022.

Fraternally submitted by, Linda R. Hill, Recording Secretary Leonard Mikeska, Chief Financial Officer —SPJST—

DISTRICT DIRECTORS’ REPORTS

District One Director Donnie Victorick

Activity Report

November—Lodge 9, Snook meeting; cooked for District One campers at Camp Kubena; Executive Committee Strategic Planning Meeting.

December—Lodge 9, Snook meeting; Lodge 17, New Tabor memorial service; Temple Christmas Parade; Executive Committee virtual meeting; Lodge 67, Schulenburg Christmas social; Caldwell Christmas on the Square - drove District One King and Queen in parade; Lodge 189, Bryan-College Station Christmas meeting and social; Lodge 47, Seaton memorial service and Christmas party; Lodge 141, Sealy Christmas meeting and social; Camp Kubena Christmas social; Home Office Christmas party; cooked breakfast for New Year’s Eve party-goers at Lodge 88, Houston.

January—Lodge 9, Snook meeting; new illustration system virtual training; audit committee meeting; Executive Committee meeting.

Commentary

I want to thank everyone for making this a very good and productive meeting. We have made a big turnaround in regards to our financial position. A big thank you for a tremendous job to Delisle Doherty for making our insurance program a tremendous success. By bringing in over $6 million in annuity monies, we are able to invest more and realize a sizable increase in our investment income. Also, the new program of renewing annuities out of penalty phase has reduced

our reserves and allowed still more money to increase our investment income even more. We have definitely made a turn in our ship and are well on our way to a lot of success. It is refreshing to know we will be profitable for the first time in four years.

AQS, our investment advisors, have done a tremendous job of upgrading our portfolio to have us prepared for the coming years which we have no idea of which direction it will go in terms of interest rates. Our members should be happy to know we are prepared.

Thanks to all directors for being so committed and for having their hearts in the right place for SPJST. We can now have excellent discussion and debate without someone taking it personal. When you have your business hat on — and not let personal feelings get in the way — much more can be accomplished.

I am looking forward to the days and years ahead where SPJST will be back in the forefront where it belongs!

Fraternally, Donnie Victorick District One Director

District Two Director Jesse Pospisil

Activity Report

October—Funeral for Milton Zavodny of Lodge 24, Cyclone; Lodge 24, Cyclone monthly meeting; Lodge 15, Buckholts monthly meeting and delivered the lodge’s new SPJST sign; Executive Committee meeting; Lodge 24, Cyclone barbecue chicken lunch fundraiser.

November—Lodge 246, Morgan’s Point bimonthly meeting and officer installation; Lodge 177, Academy bi-monthly meeting and officer installation; helped Lodge 200, Bruceville-Eddy prepare for Veterans Day pancake supper; Lodge 80, Holland meeting.

December—Lodge 155, Austin quarterly meeting and officer installation; Executive Committee virtual meeting; presented discretionary checks to fire department and Shepherd’s Heart Food Pantry; Lodge 200, Bruceville-Eddy Christmas meeting; Lodge 47, Seaton Christmas meeting; Lodge 18, Elgin meeting and officer installation; Home Office Staff Christmas party.

Commentary

I want to thank the Executive Committee for a wonderful meeting. We accomplished a great amount of items. I also want to thank Larry White and his team at AQS for giving us an excellent financial report. I hope everyone stays safe and healthy. Fraternally, Jesse Pospisil District Two Director

District Three Director John Engelke

Activity Report

October—Lodge 66, Waco meeting.

November—District Youth Counselors’ virtual meeting; Lodge 54, West meeting and elections; Lodge 6, Cottonwood meeting and elections; Lodge 92, Fort Worth western swing dance; Lodge 25, Ennis 50-year building anniversary; Fort Worth Parade of Lights with SPJST Float; Executive Committee Strategic Planning Meeting; Lodge 66, Waco meeting.

December—Lodge 180, Burleson Christmas party; Lodge 84, Dallas Christmas party; Lodge 54, West Christmas party and officer installation; Temple Christmas Parade with SPJST Float; Executive Committee virtual meeting; S.P.J.S.T. Senior Living Centers meeting; pick up and deliver certificates and annuity money to Home Office; Lodge 92, Fort Worth officer installation and Christmas dance; History of West Museum check presentation; Lodge 66, Waco meeting and meal; Home Office Staff Christmas party.

January—Lodge 6, Cottonwood meeting and officer installation; Camp Kubena virtual meeting; Lodge 35, Elk meeting and officer installation; audit committee meeting; Executive Committee meeting.

Commentary

Thank you to my fellow directors and officers for a great finish to 2021 and a hopeful start to 2022. As we start this new year, we know we face many challenges, but with new information and studying the facts, we will make decisions to make SPJST a greater company for all our members.

We ask all our members to please support SPJST and all our local lodges as we start our new normal, dealing with the Covid changes in our lives.

We also thank our employees for their great support of our members when our needs call upon these great folks at the Home Office. Please feel free to call upon them when you do have the need. We want to be the best choice for our members. Fraternally, John Engelke District Three Director

District Four Director Bobby Davis

Activity Report

November—Lodge 49, Rowena meeting; traveled to Rowena to deliver a check; traveled to Del Rio to talk about starting a lodge; agent training in San Angelo; Lodge 160, San Angelo meeting; Executive Committee Strategic Planning Meeting.

December—Member service in Eden; worked with sales agent Ralph Chalfant; worked with Regional General Agent Lydia Talamantez; Lodge 49, Rowena Christmas party; Executive Committee virtual meeting; traveled to Ballinger to help with death claim; Lodge 229, Abilene meeting; meeting with a group of CPAs regarding annuities; Lodge 207, Iowa Park meeting; Lodge 230, Midland meeting and election of officers.

January—Lodge 229, Abilene meeting with officers and State Fraternal Director Frank Horak; virtual meeting with President/CEO Vanicek and TSE Entertainment; travel to Colorado City for continuing education training.

Commentary

We had a good meeting. A lot of positive things are starting to happen in all departments.

Camp Kubena is starting to increase with more activities. I would like to see a work weekend for camp - a clean-up with directors and officers before camp starts every year and see companies that donate to camp be added to the Members Services Director. Camp Kubena Executive Director Rob Clift is doing a great job. I would like to thank him for his report.

I would also like to thank AQS for the report they presented. Fraternally, Bobby Davis District Four Director

District Five Director Bradley Stavinoha

Activity Report

October—AQS life insurance marketing class.

November—Midterm election preview from NAMIC; Lodge 81, Needville meal prep; Lodge 142, Houston meeting; Executive Committee Strategic Planning Meeting.

December—Country Christmas; Fort Bend Republican Women’s meeting; Fort Bend Czech Heritage Society Christmas; Executive Committee virtual meeting; Lodge 88, Houston meeting; Lodge 142, Houston meeting; Wellington Management economic outlook and inflation numbers 2022; Lodge 81 meeting and workday.

January—Lodge 81, Needville meeting; agent training; 2022 life insurance market outlook; Czech Catholics meeting - Sts. Cyril and Methodius; Executive Committee meeting.

Commentary

It was a very emotional day as Jerome Dressler, Robert Mayfield, and I moved out the last files, pictures, plaques, and awards from the hall at Lodge 172, Pasadena. It was built in the early 1980s, and those lodge members/officers had spent countless hours attending and participating at meetings, dances, many other events, and doing maintenance. As we went through old boxes, we saw so many photos of Jerome’s father. There were also several awards, mayor’s proclamations, and citations from the city of Pasadena to the lodge for all of its fundraising efforts and community events. Lodge 172 truly had an impact on that community for many years. Lodge 172’s building was

an icon on Preston Street.

As we loaded some of the last boxes, I reentered the front door where a sign over the door in large bold face read, “Vítáme Vás.” It was difficult knowing this was one of the last times any of us would walk through those doors.

Jerome reminisced about the heyday of the lodge in the 1980s and 1990s with the well-attended dances that were held at the hall. Lodge 172 was the place to be during those times. The dances there were only rivaled by the legendary Gilly’s honkytonk made famous from Urban Cowboy in Pasadena. The hall was a tribute to those Lodge 172 members who were able to do the hard work that raised the funds to build such a large facility. The dance floor was so large you could only do one round on it per song.

At its January meeting, the Executive Committee watched a video that SPJST helped fund called Dance Hall Days: A Documentary on Texas Dance Halls. Even though Lodge 172, Pasadena may not have been as old as those featured in the video, it certainly will be missed in the community by those who wore out many a pair of boots on that dance floor. I know that building will forever be in Jerry’s and Robert’s hearts. Fraternally, Bradley Stavinoha District Five Director

District Six Director Annie Vahalik

Activity Report

November—Virtual meeting with District Youth Counselors; Lodge 184, Moulton meeting and social; Lodge 32, Victoria meeting; Lodge 4, Hallettsville meeting and social; Lodge 41, Port Lavaca meeting and social; check out Yorktown cemetery to see if it was an SPJST cemetery; Executive Committee Strategic Planning Meeting.

December—Victoria County Czech Heritage Society Christmas party; Lodge 97, Placedo meeting and Christmas party; Executive Committee virtual meeting; Lodge 32, Victoria Christmas party; Lodge 4, Hallettsville meeting and Christmas party; Lodge 151, Wharton meeting, 75-year pin presentation, and Christmas party.

January 5—TSE Entertainment webcast; State Progressive 42 Domino Tournament; Lodge 32, Victoria meeting. Commentary

This was a very good meeting. I am looking forward to celebrating 125 years in 2022. We need to stay focused on keeping SPJST values strong in 2022 and beyond. The advance reports and detailed information is very much appreciated to keep our meetings productive.

Fraternally, Annie Vahalik District Six Director

District Seven Director Regina House

Activity Report

October—Executive Committee meeting.

November—District Youth Counselors’ and Youth Advisory Committee virtual meeting; District Seven Fall Fun Day at Lodge 107, Floresville; Lodge 258, Seguin meeting and officer installation; Executive Committee Strategic Planning Meeting.

December—Executive Committee virtual meeting; Lodge 117, Robstown meeting and officer installation; Lodge 202, Jourdanton meeting and officer installation; check presentation to New Berlin Volunteer Fire Department; Lodge 79, Corpus Christi meeting and officer installation..

January—TSE Entertainment virtual meeting for lodges with dance halls; Lodge 107, Floresville meeting and officer installation; Life Insurance Market Outlook webinar; Lodge 258, Seguin meeting; Audit Committee meeting; Executive Committee meeting.

Commentary

I want to thank my fellow board members for such a productive meeting these past two days. I am excited about and looking forward to the great things that are happening at SPJST - from the changes the Convention delegates made to the by-laws and governance, to the positive outlook for sales and income, and to the updates happening at Camp Kubena. Great things are definitely headed our way! Fraternally, Regina House District Seven Director —SPJST—

From the Insurance Department

SPJST Insurance Update through february

129 Certificates IssueD

MONTH-TO-DATE TOTALS

FOR INSURANCE WRITTEN, ISSUED, AND ANNUALIZED PREMIUM Dist. Apps. Written Certs. Issued Annualized Prem. 1 5 $227,724.00 3 $147,724.00 $1,533.88 2 3 130,000.00 4 230,000.00 3,594.44 3 2 25,000.00 1 10,000.00 0 4 6 497,312.00 7 507,312.00 3,660.60 5 3 142,000.00 3 412,000.00 1,613.96 6 0 0.00 1 100,000.00 2,076.36 7 10 225,920.00 8 235,920.00 5,462.52 9 0 0.00 0 0 0 Ann 18 0.00 18 0 0 Totals 47 $1,247,956.00 45 $1,642,956.00 $17,941.76

YEAR-TO-DATE TOTALS

INSURANCE WRITTEN, ISSUED, AND ANNUALIZED PREMIUM Dist. Apps. Written Certs. Issued Annualized Prem. 1 12 $682,724.00 8 $452,724.00 $5,669.88 2 7 350,100.00 7 350,100.00 4,951.64 3 9 258,781.00 11 273,781.00 3,533.28 4 35 2,326,530.00 28 1,401,530.00 12,483.00 5 10 867,000.00 8 1,637,000.00 5,042.80 6 8 615,000.00 10 655,000.00 6,184.10 7 23 1,122,547.00 20 $1,032,547.00 10,166.08 9 0 0.00 0 0 0 Ann 37 0.00 37 0 0 Totals 141 $6,222,682.00 129 $5,802,682.00 $48,030.78