NATO of Annual Meeting Minutes Downers Grove, Illinois June 14, 2018 DRAFT Chris Johnson called the meeting to order at 10:00 a.m.

ROLL CALL Members Present: Chris Johnson, Classic Cinemas Absent: Mark Gramz, Marcus Theatres Tim Johnson, Kerasotes ICON Edge 5 Tony Kerasotes, Kerasotes ICON Glen Theater Heath Thomas, Goodrich Quality Theaters Logan Square Rob Bruchman, AMC Willis Johnson, Classic Cinemas Pickwick Theatre Vanessa Padgett, Cinemark Lincoln Theatre Ann McCool, John Saylor, Goodrich Lory Sergio Villarreal, New Vision NCG John Scaletta, F & F / Paragon Davis Rey Costilla, Brad Kharchef, Jeff Kunstman, LaGrange AMC ArcLight Mary Ann Frank, NATO of Illinois

Guests: Jeff Glass - Capitol Consulting (CCG)

General introductions.

Legislative Session Review

Jeff Glass of Capitol Consulting Group, commented on the current status of issues that were discussed by the Illinois Legislature during the Spring Session, as well as expectations for the coming months and 2018 election.

After a slow start due to primaries and Easter break, activity heated up after the Easter break.

Predictive Scheduling: The Predictive Scheduling issue (posting schedules up to 14 days prior with penalties for cancelling shifts) became the major focus in Springfield, along with related activity in Chicago. CCG worked alongside many industries against the initiative, including the MPAA, IRMA (retail merchants), the Chamber and NFIB (small businesses). One alternative discussed, particularly for theatres, was an exemption for employers whose revenue was based on ticket sales / attendance. In addition, discussion with legislators included an emphasis on the potential for workforce reductions already occurring due to technology efficiencies and higher costs associated with MW increases and the additional burden of predictive scheduling labor costs. In Chicago, Mayor Emmanuel is currently opposed to Predictive Scheduling, however his position could change as the election draws near.

Soda Tax: Jeff reviewed the successful repeal of the Cook County soda tax enacted last summer, which was repealed after 3 months due to public outcry. Unfortunately, Commissioner Boykin, the most outspoken promoter of repeal, faced retribution for his efforts and lost his seat in November.

Election: Republican Governor Rauner is currently down in the polls against Democrat Pritzker, but only time will tell how this election which is sure to break financial spending records will play out over the coming months. The Senate Democrats are likely to keep control, with the same control likely to be held in the House. If Rauner wins, he will need to propose a capital spending bill, and is likely to include an increased MW, with concessions to business owners. Leaders Madigan and Cullerton would not be able to continue to employ the delay tactics which they have employed since his election.

Rob Bruchman suggested increasing efforts to schedule theatre visits with key legislators / leaders, and Jeff agreed that Kerasotes ICON would be an ideal location, based on the demographics of the employees. He suggested inviting the leaders independently, including Labor and Revenue Committee chairs, as well as Kim Lightford. Rob also suggested that legislators known to be on the fence with labor issues important to us should be encouraged to make site visits to see first-hand the automated ticketing and self-service concession areas which businesses have begun to use to offset the increasing costs of employment. The same concept is rolling out in retail and food (McDonalds), which will all have an adverse affect on employment if labor costs continue to rise.

Options discussed included a film screening or invitation to a filming location.

Jeff was thanked for the efforts of CCG on our behalf.

Approval of June 14, 2017 Minutes No corrections or changes. Motion by Willis, second by Heath, to accept the minutes. All in favor.

Membership Development With the new dues structure and NATO support, Chris noted that membership is very strong, including new member RMC. Unfortunately, the new management of Regal has declined to join. Chris explained that we received $20,000 from NATO Supplemental funding, and are eligible for Strike Funds, if needed to lobby against unexpected legislation that arises during the year.

Mary Ann requested feedback on the NATO of IL website, which will need a security upgrade this summer if we choose to continue supporting it. Without the scholarship, there is very little traffic. The new SSL security level would cost $60 in the first year, and $75 per year thereafter. All were in favor of maintaining a website presence for now. Heath also suggested creating a Facebook page which could increase awareness, as well as advising that the domain name be retained if the website were to be taken down at some point.

Appointments to Board of Directors Term renewals (2018-2020): Robert Goodrich (Heath Thomas) – Mark Gramz – Dino Vlahakis – Tony Kerasotes – Tom Fencl New terms: None Motion by John, second by Rey, to approve the term renewals. All in favor.

Election of Officers, effective July 2018 Nominations for all Officer positions were opened for all members to consider. Receiving no new nominations from the floor, Officers were re-elected as follows: Chris Johnson, President; Tony Kerasotes, V.P.; Heath Thomas, Secretary; Mark Gramz, Treasurer. Motion by Willis, second by John, to approve the slate of officers. All in favor.

Program Review / Update Mary Ann noted that she was unaware of any national theatre scholarships still offered, outside of those offered within a particular circuit to their own employees.

Members were also thanked for supporting the Organ Donor Trailer program, which was supported by 15 members on 529 screens in April. Chris noted that this program maintains a positive relationship for NATO of Illinois in Springfield and with the Secretary of State. He suggested that we should contact the SOS to schedule a visit from Jesse White this year, as we have done in the past.

New Business Annual Budget / Financial Overview: Chris noted that YTD bank account activity statements and outstanding expenses were provided with the agenda packet.

Geneva Convention Hall of Fame: John explained that State and Regional units are asked to nominate an individual for the Geneva Convention Hall of Fame each year and Chris asked for suggestions. The nominees should have been involved in exhibition in Illinois for a long time. Tim Johnson, with Kerasotes, was nominated, but will be unable to attend this year. John Scaletta suggested that the Board could discuss further and make a nomination without membership confirmation. Ann Saylor (sp) was suggested and Brad offered to reach out to her. Motion by John, second by Rey, to allow the Board of Directors to review nominees and select a representative. All in favor.

Old Business

Chris briefly reviewed the repeal of the Cook County soda tax last Fall, thanking everyone for their efforts, with Rey Costilla and Rob Bruchman in particular, who rallied troops from AMC to several events. The massive personal response to this issue is what really tipped the scales in our favor against this expensive tax.

Chris also mentioned that, for those operators with locations in Cook County, the Minimum Wage does not apply to employees under the age of 18.

Tim Johnson thanked Chris for his time and efforts on behalf of NATO of Illinois, as well as his participation as the Regional Representative on the NATO Executive Board. Mary Ann was thanked as well.

Announcements Geneva Convention 2018: Sept 25 - 27, 2018 - Lake Geneva, WI NATO General Meeting & Fall Summit: Oct 8 - 11, 2018 – Beverly Hills, CA ShowEast: October 22 - 25, 2018 – Loews Miami Beach Hotel, Florida 91st Academy Awards: February 24, 2019 CinemaCon 2019: April 1 - 4, 2019 – Caesar’s Palace, Las Vegas, NV

Chris and John reviewed the opportunities available to members with attendance at the Geneva Convention, particularly the local networking opportunities and unique access to vendors over larger conventions. Proceeds from the convention are donated to Will Rogers and Variety.

Meeting adjourned at 11:20 am.

Respectfully submitted by Mary Ann Frank