Supreme Lodge Meeting Minutes

FROM THE SUPREME LODGE

October 20 and 21, 2020 Minutes of the Regular Meeting of SPJST Supreme Lodge held at the Home Office in Temple, Texas

PRESIDING The meeting was called to order by Supreme Lodge Chairman John Engelke on Tuesday, October 20, 2020, at 8:06 a.m.

ATTENDING: Brian Vanicek, President; Richard Hrbacek, Vice President; Leonard Mikeska, Chief Financial Officer; Roy Vajdak, Controller; Donnie Victorick - District One; 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 four visitors present at the meeting today - Alex Peacock, Tom Berry, and Donald Sutton with Investor Loan Source and Rob Clift with Camp Kubena. The visitors on Wednesday are Courtney Reikofski, George Simon, and Keith Galante with BKD, who will present their report via video conference; Larry White and Stephen Gonzalez of AQS Asset Management, who will be present in person to report on investments; and Troy Schake, Sandy Wordell, and Pedro Rivera with USSI, who will demonstrate via video conference a new portal that will be available soon.

APPROVAL OF SUPREME LODGE MINUTES After review of the July 1, 2020, Special Called Conference Call Meeting, Director Victorick moved the minutes be approved as printed. Director Pospisil seconded the motion, and the motion carried unanimously.

After review of the July 8, 2020, Regular Conference Call Meeting, Director Stavinoha moved the minutes be approved as printed. Controller Vajdak seconded the motion, and the motion carried unanimously. After review of the September 29, 2020, Special Called Conference Call Meeting, Controller Vajdak moved the minutes be approved as printed. Director Stavinoha seconded the motion, and the motion carried unanimously.

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

Recess for break was taken from 9:58 to 10:09 a.m.

Editor/Director of Communication Zavodny recommended a calendar be printed for 2021.

President Vanicek moved to accept the recommendation of the two-fold 6-inch by 9-inch calendar for 2021 at a cost of approximately $5,917. Director Vahalik seconded the motion, and the motion carried with 10 in favor and one opposed. Voting in favor: President Vanicek, Vice President Hrbacek, Chief Financial Officer Mikeska, Controller Vajdak, Director Victorick, Director Pospisil, Director Engelke, Director Davis, Director Vahalik and Director House. Voting in opposition: Director Stavinoha.

Chief Financial Officer Mikeska presented a land opportunity by a local realtor and developer for SPJST to lend proceeds for the land purchase. SPJST would be the first lienholder. The development is in the growing area of West Temple, about six miles from the Home Office.

Director Stavinoha moved to proceed with the loan, and Controller Vajdak seconded the motion. After discussion, Director Victorick moved that we table this motion until we get more information on the borrowers. Director House seconded the motion, and the motion carried with eight in favor of tabling the motion and three opposed. Voting in favor: President Vanicek, Vice President Hrbacek, Controller Vajdak, Director Victorick, Director Pospisil, Director Davis, Director Vahalik, and Director House. Voting in opposition: Chief Financial Officer Mikeska, Director Engelke, and Director Stavinoha.

Recess for lunch break was taken from 11:55 a.m. to 1 p.m.

Rob Clift, Executor Director of Camp Kubena, presented updates.

Director Stavinoha moved to open a bank account at the Round Top Bank, granting Rob Clift to be the signor to conduct business for Camp Kubena. Director Victorick seconded the motion, and the motion carried unanimously.

Recess for break was taken from 2:26 to 2:43 p.m.

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

President Vanicek discussed the employee health care coverage period has been June 1 of each year through May 31 the following year; however, our insurance broker recommended changing to a calendar year. Director Stavinoha moved to accept the recommendation from our insurance broker Gallagher for the insurance year to be moved to a calendar year starting with January 1, 2021, through December 31, 2021. Director Pospisil seconded the motion, and the motion carried unanimously.

Recess for break was taken from 3:50 to 4 p.m.

Tom Berry, Donald Sutton, and Alex Peacock of Investor Loan Source were present and gave a detailed presentation to educate everyone on their services of providing investor residential loans they sell to lenders.

Recess for the day was taken at 5:10 p.m. until October 21 at 8:10 a.m.

Chairman Engelke welcomed everyone to the meeting. Chief Financial Officer Mikeska led the Supreme Lodge in an opening prayer.

RESOLUTION OF RESPECT

WHEREAS, the Supreme Lodge and the SPJST membership were saddened to learn of the death of Larry W. Pflughaupt; and,

WHEREAS, Brother Pflughaupt left surviving him to mourn his departure, wife Dorothy; sons Lee and wife Monica, Karl and wife Linda, and Paul and wife Crystal; seven grandchildren; mother Josephine, brother Lynn Pflughaupt; sister Carol Pflughaupt Globke; and a host of relatives, friends, and neighbors, all of whom, with all the members of the Supreme Lodge SPJST, mourn his departure; and,

WHEREAS, the members of the Supreme Lodge SPJST desire to record their sorrow at the death on August 27, 2020, of Brother Pflughaupt, who had worked harmoniously and diligently for the good of the Society and served SPJST as Director and Sales Agent and also in many capacities including on the state, district, and lodge levels. Fraternalism was a way of life for Brother Pflughaupt, and he will be missed and remembered by his many friends mourning his passing. Brother Pflughaupt leaves an enduring legacy of his faithful and diligent devotion to support the work of his lodge - Lodge 88, Houston.

BE IT THEREFORE RESOLVED, that the Supreme Lodge of SPJST meeting as a body in session on October 21, 2020, hereby gives its formal expression of sympathy and does hereby note in its records the passing from this life of a loyal member, who was respected by his associates and loved by his family and friends.

BE IT FURTHER RESOLVED that a copy of this resolution be tendered to the family as an expression of heartfelt sympathy in their bereavement.

FOR THE SUPREME LODGE SPJST Brian Vanicek, President Leonard Mikeska, Secretary-Treasurer

President Vanicek moved that we adopt a Resolution of Respect for past District Five Director Larry W. Pflughaupt. Director Victorick seconded the motion, and the motion carried unanimously.

NEW BUSINESS CONTINUED Chief Financial Officer Mikeska reported on delinquencies and moved to accept as presented. Director Victorick seconded the motion, and the motion carried unanimously.

Chief Financial Officer Mikeska reported on six meetings: July 13, August 11 and 26, and September 11, 24, and 25. Director Pospisil moved to ratify as presented. Director Vahalik seconded the motion, and the motion carried unanimously.

The Investment Policy Statement was presented, and no changes were made.

Chief Financial Officer Mikeska reported on universal life rates. Director Victorick moved approval of the recommended rates on universal life as presented in Chief Financial Officer Mikeska’s report. Director Stavinoha seconded the motion, and the motion carried unanimously. The rates remain the same from the last quarter.

Chief Financial Officer Mikeska reported on the annuity rates. Director House moved approval of the recommended rates on annuities as presented in Chief Financial Officer Mikeska’s report. Director Vahalik seconded the motion, and the motion carried unanimously. The rates remain the same from last quarter.

Controller Vajdak presented and reported on the quarterly statement dated June 30, 2020, and the budget variance report.

Controller Vajdak reported it is time to renew a contract for the external audit and presented bids. Director Stavinoha moved to accept the James Reitmeier, Boyd & Therrell bid for the 2021 external audit. Director Victorick seconded the motion, and the motion carried unanimously.

Controller Vajdak reported the last day to issue applications will be 12 p.m. on December 28, 2020, and closing of books for 2020 will be at 1:30 p.m. on December 30, 2020.

Recess for break was taken from 9:20 to 9:30 a.m.

Courtney Reikofski, George Simon, and Keith Galante with BKD presented their preliminary report of the efficiency study on the Home Office. It was presented via video conference.

Recess for break was taken from 11 to 11:15 a.m. The investment committee had a meeting during this presentation. Chief Financial Officer Mikeska moved to purchase $1,000,000 of Turtlewood Senior Living Development in Houston Texas. Director Victorick seconded the motion, and the motion carried with 10 in favor. Vice President Hrbacek did not vote because he had left the room and was not present to vote.

Lunch break was not taken; it was a working lunch.

Troy Schake, Sandy Wordell, and Pedro Rivera with USSI attended on a conference call and presented a video demonstration of a new portal that will be available soon.

Recess for break was taken from 3:25 to 3:45 p.m.

The dates of Supreme Lodge meetings for 2021 were set as follows:

January 19 and 20 (audit on January 18)

April 20 and 21

July 20 and 21 (audit on July 19)

October 19 and 20

Director Victorick moved to take the West Temple loan development off the table. President Vanicek seconded the motion. Chief Financial Officer Mikeska reported he did not get a response to his request for additional documents on the borrowers.

Director Victorick moved that we amend the motion made by Director Stavinoha to back out of this lending opportunity. Director Pospisil seconded the motion, and the motion to amend carried unanimously. The motion to decline this offer carried unanimously.

INSTALLATION OF OFFICERS AND DIRECTORS Controller Vajdak presided over the ceremony of installing the 2020-2024 officers and directors.

NEW BUSINESS CONTINUED Director Stavinoha moved that we freeze employee salaries and not pay an increase for 2021 and employees are not paid a bonus for 2020. President Vanicek moved to amend the motion to separate the two motions, seconded by Controller Vajdak. The vote to amend the motion passed with 10 in favor and one opposition. Voting in favor: President Vanicek, Vice President Hrbacek, Chief Financial Officer Mikeska, Controller Vajdak, Director Victorick, Director Pospisil, Director Engelke, Director Davis, Director Vahalik, and Director House. Voting in opposition: Director Stavinoha.

The vote on the amended motion passed with 10 in favor and one opposition. Voting in favor: President Vanicek, Vice President Hrbacek, Chief Financial Officer Mikeska, Controller Vajdak, Director Victorick, Director Pospisil, Director Engelke, Director Davis, Director Vahalik, and Director House. Voting in opposition: Director Stavinoha. The motion to freeze employee raises for 2021 passed with eight in favor and three oppositions.

Voting in favor: President Vanicek, Director Victorick, Director Pospisil, Director Engelke, Director Davis, Director Stavinoha, Director Vahalik, and Director House. Voting in opposition: Vice President Hrbacek, Chief Financial Officer Mikeska, and Controller Vajdak.

Controller Vajdak moved to amend the motion of not paying employees a bonus for 2020 to pay a bonus of $250 to each employee. The vote to amend the motion passed with nine in favor and two oppositions. Voting in favor: President Vanicek, Vice President Hrbacek, Chief Financial Officer Mikeska, Controller Vajdak, Director Victorick, Director Pospisil, Director Engelke, Director Vahalik, and Director House. Voting in opposition: Director Davis, and Director Stavinoha. Vote on the amended motion passed with nine in favor and two oppositions. Voting in favor: President Vanicek, Vice President Hrbacek, Chief Financial Officer Mikeska, Controller Vajdak, Director Victorick, Director Pospisil, Director Engelke, Director Vahalik, and Director House. Voting in opposition: Director Davis and Director Stavinoha. (Supreme Lodge Officers and Editor/Director of Communication do not receive any bonus.)

ELECTION OF SUPREME LODGE CHAIR AND VICE CHAIR The Supreme Lodge took up the matter of electing a chairman for 2021, President Vanicek presided over the election. The floor was opened for nominations, and Director Davis nominated Donnie Victorick. Director Pospisil nominated John Engelke. Mr. Victorick declined the nomination for Supreme Lodge Chairman. President Vanicek called for nominations three times, and there were no other nominations. Controller Vajdak moved to nominate John Engelke, seconded by Director Davis, and the motion carried unanimously. Director John Engelke was elected Supreme Lodge Chairman.

The election of vice chair was taken up. President Vanicek opened the floor for nominations, and Director Davis nominated Donnie Victorick. President Vanicek called for other nominations three times, and there were no other nominations. Director House moved that nominations cease, and Donnie Victorick be elected by acclamation. Director Vahalik seconded the motion, which carried unanimously, and Donnie Victorick was elected Supreme Lodge Vice Chairman.

Director Victorick moved that Director Stavinoha be the chairman of the 2020 Audit Committee, seconded by Director Pospisil, and the motion carried unanimously.

The internal audit committee for 2021 was named. They are Director Stavinoha, Chairman; Director Pospisil; and Director Victorick.

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

Chairman Engelke adjourned the meeting at 5:30 p.m.

The next regular meeting of the Supreme Lodge will begin at 8 a.m. on Tuesday, January 19, 2021, and continue through January 20, 2021. Janie Coakley, Recording Secretary Leonard Mikeska, Chief Financial Officer —SPJST—

DISTRICT DIRECTORS’ REPORTS

District One Director Donnie Victorick

Activity Report

July - Weldon Galler funeral in Waco.

August - Lodge 9, Snook meeting; Larry W. Pflughaupt visitation.

September - Lodge 9, Snook Youth Club meeting and awards presentation; Lodge 9, Snook meeting; Helen Hegwood rosary in Houston; Helen Hegwood funeral in Houston; Lodge 17, New Tabor meeting and presentation of scholarships to Macy Narro and Tabor Dowell; Burleson County Fair Parade driving District One King Caleb See and District One Queen Macy Narro; surprise celebration for retiring District Two Youth Counselor Patsy Koslovsky at Lodge 47, Seaton; Burleson County Fair Youth Auction.

October - Cooked burgers for Lodge 17, New Tabor youth and parents at Camp Kubena Funday; meeting with Vice President Richard Hrbacek in Temple; Czech heritage presentation for Lodge 9, Snook Youth Club; Lodge 9, Snook meeting; SPJST Fraternal Focus webinar; Supreme Lodge Member Orientation; Supreme Lodge meeting in Temple.

Commentary

We have many challenges which we are facing. Today, we are at a crossroad of where does SPJST go from here. It is up to us as directors and officers to make sure all decisions are made in the best interest of SPJST to preserve our future. It is our fiduciary responsibility to see to it that we continue on the path of a fraternal organization. This is what our charter dictates, and we cannot deviate from that course. Over the last several years, we have gone away from that fraternal mission and have been only concentrating on being an insurance company alone. We are continuously writing certificates to individuals without encouraging them to become active in our local lodges. Our lodge system is beginning to fail because of this. Most of our agents are only insurance agents and are not actively involved in their local lodge. Our Regional General Agents (RGAs) are usually the leading agents in sales for the district when their job is to lead other agents to be active and productive. We have even told them they do not have to go to lodge meetings to get to know the members. Our Home Office is distant from the membership except for Brian and Melanie.

We cannot continue on this same path, and it is up to us to make changes and decide what we want our organization to be. We have great potential and a bright future if we do things the right way. We must put aside petty jealousies and thoughts and have our business hats on. We cannot let personalities, attitudes, likes and dislikes, and selfishness get in the way. We must be transparent to our membership and not do things which are a detriment to SPJST. We must start making decisions to put us into the 21st century where we are lagging behind. We must think progressively and admit that we do not have the answers to all our issues, and we must seek help for solutions.

I ask that we come together as a united team and not criticize one another. We must be strong and willing to make tough decisions no matter what the consequences. We need to rethink the purpose of the entire organization and put us where we will be a leader of fraternals and not a follower.

We can only be strong when we are united. As the old saying goes, “A chain is only as strong as its weakest link.” We don’t need to have any weak links. Bobby Knight once said, “Successful people make a habit of doing things failures don’t like to do.” John Wooden defined success as “peace of mind which is a direct result of self-satisfaction in knowing you did your best to become the best you are capable of becoming.”

We must be a success, and the future of this organization lies in our hands. Let’s all be ready to meet the challenge together. “United we stand, divided we fall.” Opportunities exist; let’s take advantage of them.

Requests for our Vice President: 1. Make yourself known to the membership by visiting lodges and using virtual meetings. 2. Develop a uniform agent education program to be used throughout the entire state. 3. Develop and educate our Regional General Agents (RGAs) to be teachers to educate the agents using the same education process for all. 4. Conduct agent education sessions and seminars regularly, preferably virtual and in the evenings where all can participate. 5. Require RGAs to contact - by phone or in person - agents who do not attend the education classes or are not producing. 6. Require RGAs to regularly attend lodge meetings in their districts. 7. Require RGAs to attend various functions where SPJST is involved and make their presence known. 8. Require sales agents to attend their local lodge meeting at least twice a year. 9. Work with the Fraternal Department to promote the organization. 10. Educate the agents on the purpose of SPJST and bring the Home Office closer to the membership, which at this time is distant. 11. Develop a form to complete which is not an application but a fact-finding for clients who are questionable about being insurable. 12. If we are going to hire RGAs who know nothing about SPJST, have a special education program just for them. 13. Require RGAs to concentrate on getting agents to be productive and not spend so much time selling themselves. 14. We must have a combination of full time and part time agents working for us, but a uniform education program should apply to all regardless of status. 15. Concentrate on quality and not quantity. Fraternally, Donnie Victorick, FICF, CFFM District One Director

District Two Director Jesse Pospisil

Activity Report

July - Phone conference call for officer and director election; delegates’ webinar; Supreme Lodge meeting; webinar with vice president candidates; Lodge 47, Seaton barbecue cook-off.

August - Met with president of Lodge 20, Granger to complete loan application; deliver Lodge 20, Granger loan application to Home Office; visitation for Martha Zavodny, Melanie’s mother; webinar for vice president candidates; Lodge 80, Holland meeting; funeral service for Larry W. Pflughaupt.

September - Retirement party for Patsy Koslovsky

Commentary

I would like to thank everyone for the information at this meeting. I want to welcome Vice President Rick Hrbacek, District Six Director Annie Vahalik, and District Seven Director Regina House to the Supreme Lodge. Last, but not least, I want to let Supreme Lodge Chairman/District Three Director John Engelke know that he did a good job during this meeting. I also want to wish Vestnik Editor/Director of Communication Melanie Zavodny a very happy birthday tomorrow. Fraternally, Jesse Pospisil District Two Director

District Three Director John Engelke

Activity Report July - Supreme Lodge conference call; audit committee meeting (video conference); Supreme Lodge meeting (video conference); Lodge 6, Cottonwood meeting; Fraternal Focus webinar; Equisoft webinars; Weldon Galler funeral service in Robinson.

August - Martha Zavodny visitation in Temple; Larry W. Pflughaupt funeral service in Houston.

September - Fraternal Focus webinar; Patsy Koslovsky surprise party at Lodge 47, Seaton; Lodge 66, Waco meeting.

October - Lodge 180, Burleson meeting; Fraternal Focus webinar; Supreme Lodge orientation meeting; Supreme Lodge meeting in Temple.

Commentary Thank you to all officers and board members for coming together for our fourth quarter board meeting in person. I feel we covered a lot of ground in two days with all the information presented by our members and guests. I wish everyone good health and holidays til our next meeting. Fraternally, John Engelke District Three Director/ Supreme Lodge Chairman

District Four Director Bobby Davis

Activity Report

July - SPJST conference calls; Fraternal Focus webinar; District Four delegates’ meeting in Rowena.

August - Lodge 49, Rowena meeting; Fraternal Focus webinar; Home Office visit.

September - Lodge 229, Abilene meeting; setup and worked booth at West Texas Fair and Rodeo in Abilene; Lodge 230, Midland meeting; webinar for SPJST election results; SPJST conference call.

Commentary

I would like to say congratulations to Vice President Richard Hrbacek, District Six Director Annie Vahalik, and District Seven Director Regina House.

We are going to have to look at all frateral expenses and do some cutting. We need to cross-train all employees. We need to change some comp plans. We need new training with agents, even if it takes one-onone training. We need to get the agents involved in the lodges or do community projects in the name of SPJST. None of this will happen - not unless it starts at the top. We will be going to our strategic planning meeting next month. This is our future. We need to take time now and start planning. Thank you. Fraternally, Bobby Davis, FICF, CFFM District Four Director

District Five Director Bradley Stavinoha

Activity Report

July - Supreme Lodge conference call; BKD audit meeting; District Five sales agent virtual meeting; audit committee meeting with Brian and Leonard; Supreme Lodge meeting; webinar for delegates; Equisoft webinar.

August - Webinar for delegates; Lodge 81, Needville meeting; Lodge 88, Houston meeting; Dr. Williams webinar on insurance marketing; Larry W. Pflughaupt’s funeral.

September - Sales agents’ meeting with RGA Delisle Doherty; Helen Hegwood’s funeral; webinar for delegates; Lodge 81, Needville youth fundraiser garage sale; Lodge 81, Needville meeting; ILS investment meeting; Supreme Lodge conference call.

October - SPJST webinar; SPJST training; Lodge 81, Needville polka fundraiser; Lodge 81, Needville meeting; Supreme Lodge meeting.

Commentary

The Supreme Lodge has a good business plan in place. We can see the light at the end of the tunnel. Investment returns are up. We have a good group at the Supreme Lodge with the three new members. I see the Supreme Lodge accomplishing great things moving forward and keeping SPJST relevant for many more years. Sister Regina and Sister Annie bring a lot to the table for the Supreme Lodge.

During this pandemic, expenses are way down in many areas of operation. I have been named chair of the audit committee for 2021 again.

We have an upcoming planning meeting in November. BKD has given us great information on our operational study. We hope to implement these recommendations soon.

I am looking forward to seeing all District Five lodges at annual Christmas parties if they choose to have one. Fraternally, Bradley Stavinoha District Five Director

District Six Director Annie Vahalik

Activity Report

October - Fraternal Focus webinar; met with District Six RGA Carolina Covarrubia; director orientation virtual meetings; Texas Czech Heritage and Cultural Center in La Grange; phone call orientation with past District Six Director Karen Kaspar; Supreme Lodge meeting in Temple. Commentary

I really appreciated the warm welcome, guidance, and assistance from the Home Office staff and Supreme Lodge members. This has been a good meeting and I have learned a lot about the inner workings of our great society. The director’s binder is a wonderful resource. All of the reports, presentations, and discussions were interesting and informative. Congratulations to our Supreme Lodge Chairman John Engelke and Supreme Lodge Vice Chairman Donnie Victorick. We have many decisions and much to do to keep our roots growing in SPJST. I am impressed by the commitment and passion the Supreme Lodge has for SPJST, and I am ready to represent District Six and work with everyone to achieve our goals. Fraternally, Annie Vahalik District Six Director

District Seven Director Regina House

Activity Report:

September - Meeting in El Campo with ILS Investors Group.

October - Participated in Fraternal Focus webinar: directors’ training webinar; Supreme Lodge meeting at the Home Office.

Commentary:

I want to thank everyone on the Supreme Lodge and at the Home Office for making the transition to District Seven Director such an easy one. I am truly looking forward to working with everyone! I have a firm belief in the ideals of SPJST, and I want to work very hard for District Seven. I also want to thank Bob Bayer for all that he has done for our district. Fraternally, Regina House District Seven Director —SPJST—