Be it resolved as follows:

1.      

a)      The budget for operating activities of the Jewish Agency for Israel ("JAFI") financed by unrestricted funds, for the Fiscal Year January 1, 2010 through December 31, 2010 (hereinafter – "the Fiscal Year"), as presented in the proposed budget attached hereto, is hereby approved in the aggregate amount of $260.25M. The level of unrestricted funding may be adjusted following receipt of program participation fees not as yet budgeted.

b)      The budget for the JAFI validated needs not funded by core for the Fiscal Year, as presented in the proposed budget attached hereto, is hereby approved in the aggregate amount of $63.825M.

c)       The Director General or the Director General of the Finance Department is authorized to approve payments due to employees' retirements, above the amounts budgeted in the Fiscal Year. The Director-General or the Director General of the Finance Department shall exercise this authority subject to the provisions of Article VI.A.2.(c) of the By-Laws.

2.       The Capital Budget of JAFI for the Fiscal Year, as presented in the proposed budget attached hereto, is hereby approved in the aggregate amount of $17.95M for activities funded by unrestricted funds and $3.0M for activities funded by designated funds.

3.       For the purposes of this resolution, JAFI's intent is to balance the budget for the Fiscal Year including offsetting any deficit that may arise in the fiscal year ending December 31, 2009.

4.       According to the proposed budget attached hereto, additional revenue must be raised or expenditure reductions implemented in an aggregate amount of $11.8M in order to balance the 2010 budget. To the extent that by January 4, 2010, it is apparent:

a)       to the Chairman of the Executive or;

b)       to the Chairman of the Budget and Finance Committee and either the Chairman of the Board or the Treasurer;

that, by reason of the existing $11.8 million gap or other circumstances, there is no reasonably practical prospect to raise the revenue necessary to balance the budget for the Fiscal Year, the Board of Governors hereby authorizes the Treasurer and the Chairman of the Budget and Finance Committee to submit to the Executive, no later than January 21, 2010, a proposal for balancing the 2010 budget. The Executive is requested to discuss this proposal within four weeks from the submission, and action should be taken by the end of February Board of Governors meetings.

5.       The $1.5 million special allocation made in 2009 to the Aliyah & Klitah Department to assist it in implementing the agreement with Nefesh B'Nefesh, will continue through 2013 in the following amounts:

2010:                            $1.40 million     

2011:                            $1.05 million

2012:                            $0.70 million     

2013:                            $0.35 million     

2014 and thereafter:      $0

6.       Due to the volatility of the shekel-dollar exchange rate and the fact that all budget lines are in dollars, in the event that the actual exchange rate is higher than the JAFI budgetary exchange rate of 3.8

NIS/$, all budget lines for expenditure in shekels, will be utilized in an amount in shekels up to and not more than the amount allocated in dollars, multiplied by 3.8. Any surplus generated as a result of the above circumstances will be re-allocated by decision of the Board of Governors.

7.       JAFI 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 Commitment" shall mean any loan, guarantee, indemnity or any other financial transaction and any document evidencing or constituting such financial commitment.