Dr Stephen Darori Resume September 2009

[Stephen Darori]

RESUME OF DR STEPHEN DARORI –
Dr. Stephen Darori is the Group CFO and Senior VP Investment Manager of three Divisions Investment Divisions of European Investments Off Shore Holdings Company based in Geneva, Switzerland. He heads the High Technology Investments Division, the Alternative Energy Investments Division and the Alternative Investments Division. European Investments Off Shore Holdings Company is the holding company the Group also known as the AK European Investments Group. AK European Investments Group consists of 19 independent holding companies each of which holds investments of all 8 Divisions. The largest Offshore Holding Company is AK European Investments which also pays all the Group’s Personnel Salaries and Bonuses. AK European Investments also hold the groups three large luxurious Incubators in Southern Poland. The Incubators target Eastern European , ex-Soviet Union and Chinese Entrepreneurs and Academics It primarily is a very large commercial industrial real estate developer (for renting only- resulting in the Group's enormous monthly cash flow today ) with an element of Greentech and Cleantech ( even before these Environmental Technologies became clinches) on the outer periphery of up market residential areas. This concept rewritten by Dr. Darori in 2000 has proved very popular in sending workers in the opposite direction to the congested city. An extended Metropolitan line enters each commercial and industrial estate (some as large as 20,000 hectares) underground and does a metro circle. This mode of transport has proved very popular and the estates have a surplus of parking. There is no legal, tax or other reason why the 19 offshore holding companies need to be consolidated and a monthly consolidation is done for benchmarking purposes only. One of the offshore companies that pay all the wage bills and bonus is called AK European Investments.. The structure is unusual and complex to protect the 8 principal ex- Soviet Union Glasnost period billionaires who made their first billion in their late 20’s early 30’s by exploiting legally the chaotic Soviet banking Regulations (some have suffered bad press but none have ever been listed by Forbes or Fortunes (they have always tried to remain out of the news). David.E. Hoffman's very well research book, "Oligarchs:Wealth Power in the New Russia ' is perhaps the definitive work relating to this period. It does not mention any of the 8 Principals. If the 19 offshore holding companies were consolidated it, the Company, would rank in the top 5 largest private companies in the world. Neither Forbes nor Fortune has ever listed the Group in their annual listing of the World’s Largest Private Companies. Each of the 19 Offshore holding Company has hundreds of subsidiaries in a variety of vertical holding patterns 9 some offshore). The company registers a new company for every $1 million and above investment it makes. It has a single company for all seed investments below $1 million. The Offshore Holding Company and its subsidiaries are audited by all four of the Big 4 Auditing Companies and other top 10 auditing firms.

The European Investment Off Shore Holding Company and the AK European Investments Group provides finance at all stages including seed and commercialization installations for initiatives and projects in a large variety sectors including-Enterprise Software, Networking, Communication, Telephony ,Web Technologies and Web Content, Medical Devices and Technologies, Nanotechnologies especially in the Medical or Military Fields, Wireless Gadgets , Alternative Energy Technologies (that can really be commercialized) especially Solar and Wind, Cleantech and Green Technologies, Life Sciences including Biotechnologies, Nutraceuticals, and Pharmaceuticals, AML and Banking Technologies (Homeland Security), Alternative and Renewable Fuels,Feature Length Movies including Hollywood,Bollywood and Nollywood and Animated Movies for children ( documentaries are financed from 3 large Foundations that cover the costs technically as loans but often as outright grants if they do not break even), Venture Capital and Investment Industry including Banking, Enterprise software for Stock Broker Firms and the Insurance Industry, Property (but only distressed holding companies of multiple properties-another Division specializes in property development (the largest division by far)The Group's Alternative Investments started and managed by Dr. Darori holds , a Scottish Whiskey Distillery, a private label (4 brands) Brewery, large areas of undeveloped land in the Amazon and bulge of Africa held long term which will be used in carbon trading deals if legislation relating to carbon trading is ever simplified but is really part of the low key social agenda of the company. Other Foundations support wireless and satellite connectivity and providing children with Internet devices.

Dr. Darori holds undergraduate degrees in Accounting, Economics and Computer Science and postgraduate degrees in Finance (PhD) Transfer Pricing Models, (MBA) specializing in Finance. Marketing and Management, two MA in Econometric Modeling, Macro and Micro Finance and a MSc in Computer Science among others.. Dr. Darori has attended 6 Executive Management Profession Education at Harvard University, Princeton, Yale,Stanford, MIT and the London School of Economics on subjects ranging from Supply Chains, Project Management, Advanced Financial Instruments and how to evaluate their Risk and value them, Marketing with special Brand Recognition, Executive Recruitment and Retention and Penetration, Transfer Pricing Models and their Tax implications. His PhD In Finance and Economics was titled “A survey of transfer pricing models for 75 counties incorporating, tax and investment incentives implications and the use off shore SPE in further reducing tax obligations.” and included 5 of his own econometric models-all were patented (Dr. Stephen Darori hold 18 patented econometric models and 5 outsourced manufacturing routines related to DFM ( designed for manufacturing) and TWM ( testing while manufacturing)). Dr Darori has also authored over 120 papers (either individually or with colleagues and members of his team), published over 400 articles and given over 80 presentations at conferences around the world..

Stephen Darori spent the first 15 years of his career in Israel working in Senior Finance and Operation positions for Ort Israel( the 122 High Tech Schools network in Israel)as Assistant to the General Manager and Deputy General Manager of Finance, Two Fortune Five Hundred Companies Vishay Intertechnology (NYSE) ( Finance Manager reporting to the Israeli CFO). (Vishay was named after the Polish Shtetl from which its founder Dr. Felix Landsman fled ( to join the partisans for the duration of World War Two). and 3COM (NASDAQ) ( Finance Manger and Division Cost and Accounting Manager in charge of OEM and Contact Manufacturing, reporting to the Director of Finance) Y.Z. Queenco and Resido ( Playsis) Finance Manager of a $20 million start up ( now two successful internet Casinos despite Dr Darori’s dislike for that market sector.) .Resido at the time was held equally by Y.Z.Queenco ( holdings in land based casinos in Europe) and Milamor ( a real estate developer with other interests in Romania and for many years the Honorary Commercial Attaché in Israel of Romania- it folded in the 2008.2009 Recession) Both companies at the time were listed on TASE. Queenco is now listed on TASE and also the London AIM. He was also Director of Finance, Administration and Operations of Algatechnologies - a one year project that took him 9 month to turn the company around. Algatech is to day a world leader today in the production of Astaxanthin, a high concentration natural antioxidant and now a highly profitable company, The controlling shareholder remains the JCA Foundation ( Baron De Hirsch Foundation that became the Jewish Colonial Association and then JCA) chaired by Baron Sir Stephen Waley Cohen. JCA is better known for its renovation of Israeli Tourist Sites such as Tel Chai, Tel Dan and the Excavations of the Old City of Beer Sheva where one of the Second Temple Period Sacrificial Alters were discovered. Dr Darori rewrote the long term business plan of Algatechnologies and proposed two additional companies be developed by Algatechnologies that he proposed as equally viable for Algatech's primary investors (JCA) , a Biosolar Company which now has raised $1 million from a Bird Foundation Grant and other grants from the OCS and the first Israeli Solar Installation that will be built on 350 acres within walking distance of Algatech –a $400 Investment that will produce 80+ mega watts of electricity which currently is been built. On leaving Algatechnologies, the primary shareholder (who had written off this 5 year start-up as a total loss) insisted he remain on part time as JCA ‘s “external auditor and representative” for a further 2 years at the expense entire of JCA. He held the positions in Resido (Playsis) and Algatech simultaneously with his positions in European Investments Off Shore holding Company and the AK European Investments Group He joined the Group in 1999 and was appointed Group CFO in 2001. The company is a very privately held diverse investments company with 9 investments divisions and 18 separate off shore holding companies that until they were places in a single Holding Company did not have any obligation to consolidate , neither for tax or any other legal reason or obligation.. From 2010 the company will be listed both in Fortune and Forbes listing of the world’s largest private companies in the world and with regard to many criteria it will rank first. Dr Darori currently holds multiple positions including Group CFO and head of 4 Investment Divisions with two other Senior VP Investments Managers he met as a Rhodes Scholar at Oxford University in the 80’s (the company employs 4 Rhodes and 17 Fulbright Scholars following a policy of “Employing the best and brightest , whatever the cost”). Stephen is very well like by the entire staff of the company. He and his 3 fellow ex-Rhodes Scholar’s have done much to shape the Company’s unique corporate culture- open, friendly, and very personal-one very large family. He has a very short learning curve and an immense work load. He is one of the 3 Principal Executives gateways for all new investments of the Group. Stephen has a very pleasant, confident personality and a great sense of humor. His fortnightly World Briefings to his large staff are open to all comers (and a lot do) and are punctuated with numerous anecdotes from his endless traveling. Stephen is known to get things done even if as he often remarks with regard to the company’s 4 day month end closing cycle including both vertical and horizontal (by Division) consolidations that he has on many occasion booked adjusting journal entries himself at 3am in the morning even though there is no reason really why the Group has a 4 day month end cycle other than as he once remarked, “It always has taken 4 days since I became Group CFO –so why break the precedent”. He frequently intervenes in pushing an investment opportunity to a conclusion. He equally tend to lead most exits, some unusual and unorthodox. The Group particularly is very discrete with exits and prefers to holding company equity interests while pushing the companies to become market leaders. Equity holdings are spread among SPE and nominee companies and the group seldom asks for Board Representation but instead accepts positions on the start-ups advisory Board. The Group's investment philosophy formulated by Dr. Darori is that "of putting their money at risk, not others, coaching start-up investments by giving them access to their highly qualified analysts and managers ( and where possible create sync energy with similar investments) at no expense and investing time and experience at the service of the CEO of start-ups and insisting on upholding the highest standards of governance and the best management principles and techniques- guiding without stepping on any one's toes"

Despite or rather in spite of his Resume and very successful career, Stephen is down to earth and not at all intimidating. He is a great team player and after such a successful career the last them he needs is another fancy business title or recognition. He is everything but intimidating, easy to talk to, interesting, very well read, amazingly well informed and with thousands of real contacts that he specifically does not want to be the reason for employing him. “Contacts are great, but not in a Recession as complex a the one we are in at the moment, they probably are of little use, and it will be a painful exit perhaps as late as mid 2012 if the world economy does not dip into a Depression without another Word War on the horizon” . Dr Darori is known for his Revisionist approach to economic events such as the Great Depression. He frequently points out that 14 FDR stimulus packages failed from 1932 to 1938 in the US and what really pulled the US out of The Great Depression by removing 18 million men from the employment lines and conscripting them, increasing military production by 1000’s of percent, putting millions of women again to work largely in military industries, demand increased dramatically as the US Balance of Payments went positive and then increased by thousands of percent as the demand for their military hardware by Allies exceeded supply . Then after the War was all over the Secretary of State George Marshall implemented the Marshall Plan in Europe largely that resulted in massive infrastructure and reconstruction projects, unemployment virtually disappeared in Europe overnight , demand increased and the world went into one continuous exponential boom for over 4 decades. This is a Revisionist’s Synopsis of the end of the Great Depression but then every one of Roosevelt stimulus packages failed (a terrible prophecy for Bush and Obama’s stimulus packages) until the start of World War Two and then FDR had to do nothing except ensure a continuous supply of raw materials and support R & D for the US military Industry.” If that quote sound interesting every fortnight Dr Darori gives his staff a World Economy and Company Update. It is open to all comers and so many do that for an hour and a half the Head Quarters in Geneva, grounds to a halt. .

Finally on a more personal note.

Dr. Stephen Darori has indicated that he would like to find a “Desk Job in Israel” to "retire to" but cannot help smiling when he says that since it would take a CEO or CFO with a really lot of courage and especial vision and especially foresight to employ someone with so much to offer in a “down the line position”. He worked his 6 month notice period in 2007 but the company is in no hurry whatsoever to replace him and has subsequently been given two additional Divisions to manage. The Alternative Investments Division which hold diverse and higher risk investments has had the largest ROI of any division in both 2007 and 2008 and already in the first quarter of 2009 has exceed its record breaking net profit of 2008.Dr Darori is a major donor to over 3 dozen libraries in Israel including the largest donor to 3 University Libraries and possibly the largest donor of academic and English books in Israel.. Over the last decade, his Family Foundation has made over $50 million in direct book donation to Israeli Libraries. All have been in his late parent’s name. Both his late Maternal Grandfather and late Paternal Grandmother were leaders of the Zionist Movement in the 30 to their deaths in the 60’s. Both attended multiple Zionist Conferences in Switzerland in the 30’s His Paternal Grandmother was a founder of Poalei Zion, a socialist Zionist party that gave rise to the Habonim Movement in South Africa and Dror Habonim in the UK, while his Maternal Grandfather was a leader of Jabotinsky’s Revisionist Party which he founded in South Africa and his revisionist Zionism Influence is still felt in South Africa and ironically has been taken by an estimated 60,000 South African Jews who immigrated to Australia who remain staunch supports of He also established the Betar Youth Movement. His farms in the Karroo were used as training basis for Machal Volunteers from South Africa who fought in Israel’s War of Independence. Stephen Darori and his 3 sisters grew up in Betar. One sister became Rosh(Head of) Betar for a number of years.

Shortly after the State of Israel was declared, the only postage exit was Peltours (Travel and Tourism) Courier Service via Cyprus to a P.O.Box in South Africa. And from there post was distributed through out the World. Few letters left Israel during this period. David Ben Gurion sent a letter to be delivered to Chaim Weizmann, then still in New York, but elected the first President of Israel in absentia (unanimously) via Peltour Courier Services to Stephen’s Maternal Grandfather, Hymie Baker (a very large sheep farmer in the Little and Great Karoo as mentioned before (when he wasn’t involved in Zionist Politics) to be hand delivered to Chaim Weizmann personally . The letter contained comprehensive instructions on how to return to the newly declared State of Israel. When he received the letter Hymie Baker got on the first mail boat to New York and 3 weeks later delivered the letter by hand to Chaim Weizmann who on the back of the envelope wrote in Hebrew, “Received with Grateful thanks (signed) Chaim Weizmann”. The Envelope is framed with a large blue border and is found on the wall of Dr. Stephen Darori’s office in Geneva. Years later he tracked down the letter to a unique collection of Ben Gurion’s correspondence owned by a Religious Haradi ( extremely religious Jew) and a successful Real Estate Developer and bought and donated the collection which included Ben Gurion’s correspondence with 67 key Zionist leaders and Organizations (87 letter including 7 hand written of Ben Gurion on his distinctive numbered letter writing pad ) on what should be included and how should clauses be phrased in the proposed Declaration of Independence which the text books correctly state Ben Gurion wrote but in consultation with the whose who of Zionism in 1946 to 1948. The collection was donated to the Zionist Archives in Jerusalem in 2003, quietly in memory of his late parents with an embago till 2023 ( in terms of Ben Gurion's request rather than open up controversial clauses to discussion and allow precedent to be well established). The massive collection of pre1800 Rabbinical Commentaries (many of which have been rebound in brown calf leather), housed in 5 ground floor renovated flats owned by this Haradi Religious Real Estate Developer has also been purchased for Bar Ilan University but will only come into effect on the death of this Haradi) who at 76 seems well on his way to the Jewish expression “Ud Meiha Ve Estrim” –may he live to be 120.

Dr. Stephen Darori is an active collector of AP signed Lithographs, Modern and Impressionist Art (on loan to Art Museums in Israel) Judaic a and Africana. As a hobby he frequently is a guest columnist for over two dozen print newspapers and magazines with all proceeds going to the Darori Foundation. He insists on a non de plume byline The Darori Foundation is the largest single donor of books to over four dozen Israeli Libraries including the largest private donor to eight Academic Institution Libraries. Over 380,000 books (largely non-fiction) have been donated to Libraries in Israel in the last two decades starting with Dr Darori's late parents. The Darori Foundation issued a press released on March 1st, 2009 committing a further $60 million to Academic Libraries in Israel, over the next decade, specifically targeted at more expensive books and special collections. Ironically most academic libraries in Israel have reached saturation point.

An edited version of this article will appear when the European Investment Group are listed by Forbes and Fortune as one of the largest Private companies in the world which they have resisted for over a decade and are still involved in intense negations with both publications to avoid inclusion in the list except as a appendage. They have nevertheless cooperated fully with both publications with the proviso that they be listed only from 2010 or not at all. In many of the criteria the Group easily tops the list. The success of the Group is largely attributed to Dr Stephen Darori's decade leadership in the company.