1.        (a)  The framework of the budget for operating activities of the Jewish Agency for Israel for the Fiscal Year January 1, 2007 through December 31, 2007, as presented in the proposed budget attached hereto, is in the aggregate amount of $317.8M for unrestricted activities. The level of unrestricted funding may be adjusted following receipt of program participation fees not as yet budgeted.

(b)          The framework for the JAFI validated unfunded needs is $100.36M.

(c)          The Director General is authorized to approve payments due to employees' retirements, above the amounts budgeted in Fiscal Year 2007. The Director-General shall exercise this authority subject to the provisions of Article VI.A.2.(c) of the By-Laws.

2.       The framework of the budget for development 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 $14.9M for unrestricted development activities, $7.1M for designated development activities.

3.       The framework of the budget for the Israel Emergency Campaign (IEC), as presented in Appendix A to the proposed budget attached hereto, is in the aggregate amount of $382.745M.  The IEC budget will be adjusted according to actual funding commitments and actual revenue.

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