Illinois Credit Union System
Statement of Goals
2010

I. GROWTH GOAL:  The Consolidated Organization shall aggressively pursue acquisitions, alliances, partnerships and other business combinations and management agreements with third parties inside and outside the credit union system that generate meaningful acquisitions of markets, product lines or talent; measured as follows:  execution of one (1) agreement establishing such a business consolidation arrangement by December 31, 2010.

II. CAPITAL GOAL:  The Consolidated Organization, based solely upon ICUL Service Corporation operational results and financial data, shall achieve a

(i) maximum debt/equity ratio of 3.0:1 by December 31, 2013, and the following interim benchmarks during the interval preceding that date:

i. By December 31, 2010:  5.7:1
ii. By December 31, 2011:  3.3:1
iii. By December 31, 2012:  3.1:1
iv. By December 31, 2013:  3.0:1; and

(ii) minimum balance sheet equity level of $5,000,000; by December 31, 2013.

III. EARNINGS GOAL:  Subject to the terms of any applicable Compensation Council recommendations adopted by the boards of directors of the Consolidated Organization, the Consolidated Organization shall generate gross profit (net income), based upon a percentage of Consolidated Organization total income, at the following minimum levels for each year through December 31, 2013:

i. By December 31, 2010:  0.30%
ii. By December 31, 2011:  0.40%
iii. By December 31, 2012:  0.50%
iv. By December 31, 2013:  0.60%

IV. PRODUCT DEVELOPMENT GOAL:  The Consolidated Organization shall internally develop and introduce new products and services on or before December 31, 2010, as follows: (i) at least two (2) new products or services within the cards business lines; and (ii) at least one (1) new product or service outside of the cards business lines. 

V. BUSINESS MODEL REVIEW GOAL:  The ICUL Service Corporation shall complete a comprehensive review of its business model, to include an analysis of existing product life cycles, a business competitor analysis, product development and pricing strategies, market identification and distribution strategies, corporate identity and branding strategies and an analysis of its long-term capital needs based on the foregoing.

Definitional Note:

"Consolidated Organization" means the Illinois Credit Union League and ICUL Service Corporation.

"Gross Profit" (net income) means Consolidated Organization total income less total expense (after payment of annual employee incentives, §401(k) retirement security contributions above budgeted amounts, and §457(f) plan contributions, but before income taxes).

"Debt" means long-term debt (debt due after one (1) year, including the ICU Center commercial mortgage loan and the total of the outstanding CUSO private placement offering debenture and EZ Launch notes).