System Corporate Goals

Illinois Credit Union System
Statement of Goals
2012

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

(i) maximum debt/equity ratio of 3.0:1 by December 31, 2013, and the following interim benchmark during the interval preceding that date: (a) 3.1:1 by December 31, 2012; and

(b) 3.0:1 by December 31, 2013.
(ii) minimum balance sheet equity level of: (a) $5,000,000 by December 31, 2013; and(b) $6,000,000 by December 31, 2015.
(iii) plan for developing a $10,000,000 working capital pool that may be implemented over a short term if material capital is required for an attractive acquisition, business partnership, program, or service project by December 31, 2013.

II. EARNINGS GOAL: The Consolidated Organization shall generate net income, based upon a percentage of Consolidated Organization total income, at the following minimum levels for each year through December 31, 2016:

(i) By December 31, 2012: 0.50% ($245,649 based on 2012 budget)
(ii) By December 31, 2013: 0.50%
(iii) By December 31, 2014: 0.50%
(iv) By December 31, 2015: 0.50%
(v) By December 31, 2016: 0.50%

III. SERVICE CORPORATION REBRANDING GOAL: ICUL Service Corporation shall undertake a marketing and branding review to develop and implement a campaign consisting of a new corporate name, logo, taglines, website update, and new marketing materials by December 31, 2012; with full implementation to occur by June 30, 2013.

IV. SERVICE CORPORATION RESEARCH AND DEVELOPMENT:

(i) ICUL Service Corporation shall develop a strategy to provide mobile applications on its relevant products and deliver a mobile solution to credit unions by December 31, 2012.
(ii) For each fiscal year from 2013 through 2015, ICUL Service Corporation shall develop, acquire, or otherwise introduce a new revenue-producing product offering.

V. SERVICE CORPORATION "SCORECARD" GOAL: Management shall develop for periodic review with the Board, a “scorecard” tracking system of goal attainment of key measurables by March 31, 2013.

VI. SURVEY: The Consolidated Organization shall develop and acquire relevant information from credit unions through the means of a member/customer survey. Survey results shall be compiled and presented to the respective Boards by March 31, 2013.

Definitional Note:

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

"Net Income" means Consolidated Organization total income less total expense (after payment of budgeted annual employee incentives and §457(f) plan contributions, but before payment of annual employee incentives above budgeted amounts and 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).