The Board of Governors determines that:

1.   The framework of the budget for operating activities of the Jewish Agency for Israel for the fiscal year beginning January 1, 2004 and ending December 31, 2004 (the Fiscal Year) as presented in the proposed budget attached hereto is in the aggregate amount of $ 337,100,000 for unrestricted activities, of which $ 40,000,000 subject to the response of ONAD to the Jewish Agency's request to finance unmet needs, $ 122,624,000 for the JAFI designated projects and $ 50,000,000 for facilitated activities. The level of unrestricted funding may be adjusted following receipt of program participation fees not as yet budgeted and in accordance with the response of ONAD to the request for financing $40M. The budget framework for JAFI designated projects, as well as the budget for facilitated projects, will be adjusted according to actual funding commitments and actual revenue.

2. The framework of the budgets for development and financing activities of the Jewish Agency for Israel for the Fiscal Year, as presented in the proposed budget attached hereto is in the aggregate amount of $ 14,420,000 for unrestricted development activities, $ 33,400,000 for designated development activities, $ 3,000,000 for unrestricted financing activities and $ 750,000 for designated financing activities.

3. The Jewish Agency for Israel may, during the Fiscal Year, renew existing Financial Commitments which shall mature during the fiscal year and borrow additional sums as interim financing so that at the end of the Fiscal Year the Accumulated deficit will not exceed the total accumulated deficit at the beginning of the year.

"Financial Commitments" shall mean any loan, guarantee, indemnity or any other financial transaction and any document evidencing or constituting such financial commitment.