Whereas:         the Jewish Agency for Israel (hereinafter “the Jewish Agency” and the “Association of Friends of Kiryat Ye’arim, Switzerland” (hereinafter the two bodies are referred to as “the partnership”) are interested in cooperating in upgrading the Kiryat Ye’arim youth village (hereinafter the “youth village”) and operating it in such a way that it becomes one of the leading  boarding schools in Israel, for the benefit of new immigrant children and “youth at risk”, and for the youth village to be a model on the national level for boarding school education, and a model of cooperation between government, institutional and private bodies in Israel and abroad; and

whereas          in order for these goals to be achieved, a strategic plan has been prepared by the partnership; and

whereas          for this purpose, the partnership has decided, subject to receiving approval from their institutions, to invest money in the youth village and set up a not-for-profit company for the joint operation of the Kiryat Ye’arim youth village (hereinafter the “company”).

Whereas:         the Committee for Assets and Liabilities, has approved establishment of the Company; and

Whereas:         at the same time as establishment of the Company, an agreement will be signed between the Partners, arranging, inter alia, the obligations of the Partners for funding the annual budget for operation of the Youth Village between the years 5767 and 5769 (September 2006 to August 2009); and

Whereas:         as deriving from the agreement, the Jewish Agency is required to approve a multi-year budget; and

Whereas:         the Jewish Agency will make an effort to raise the necessary budgets to pay for its multi-year commitment as earmarked donations;

Therefore be it resolved:

1. Subject to the signing of the partnership agreement, a multi-year budget is approved   for the Jewish Agency’s participation in the operation of the Company in accordance with the following table and definitions:

a. Gross Budget – the total annual budget of the Youth Village, as agreed between the Partners, and as the Partners have undertaken to fund (including the annual allocation received from the Ministry of Education).

b. Net Budget – the total share of the Jewish Agency in the gross budget of the
YouthVillage.

Multi-Year Budget (Gross and Net) in millions of USD

2. The Finance Department is authorized to take upon itself multi-year financial obligations for implementation of the undertakings of the Jewish Agency in accordance with the agreement with the “Association of Friends of Kiryat Ye’arim, Switzerland”, provided always that the sum total of all the Jewish Agency's multi-year undertakings for multi-year projects to be carried to subsequent fiscal years, shall not exceed 15% of the total budget of expenditures approved for the current fiscal year.

Should the Jewish Agency indeed receive, as an earmarked donation, any sum of money on account of funding operation of the Youth Village, as aforesaid, then the said limitation of 15% shall not apply to the sum so received and the Finance Department is authorized, in such instances, to incur, on a multi-year basis, financial obligations in connection with operation of the Youth Village as stated, to the extent of such sums.