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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF INDIANA


SOUTH BEND DIVISION

ROBERT KAP et al.,

Plaintiffs,

vs. Cause No. 3:00-CV-0649RM

MARIO STOYANOV et al.,

Defendants,

AFFIDAVIT IN SUPPORT OF JUDGEMENT


I, Robert Kap, a Plaintiff in the above captioned style and cause of action, having a
residence at 333 Tonti Street, South Bend, Indiana, 46617 USA; AND being the
representative member of the Class of Plaintiffs as setout in the complaint and as such
having personal knowledge of the facts and matters as deposed to herein or upon my
best information and belief where so stated and supported by the evidence and facts
available to me, do MAKE OATH AND SAY THAT AS FOLLOWS:
.A The Defendant Mario Stoyanov (hereinafter the "Defendant") has caused the
Plaintiffs liquidated damages in the amount (000) as follows:

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The facts, the admission of which is requested are:
.A That Defendant Has The Records Concerning the Above Entitled Proceeding.

.I Defendant, the Republic of Bulgaria ("Defendant" or "Defendant Bulgaria")


had in October of 1995 seized from the Plaintiffs their personal and
corporate records, including all judicial and extrajudicial documents. That
these remain in possession of the Defendant Bulgaria and a part of its
official records. The documents possed by the Defendant chronicle all the
facts, the admission of which is sought here. The documents form the
basis of the controversies at issue in the above-entitled proceeding.

.1 That on December 7th 2000 respondent for the Defendant, Deputy


Minister of Justice, Ms. Zlatka Rousseva, did by her own
admission, conduct an investigation of the facts, and documents
referred to here.

.2 The Defendant Bulgaria has copies or originals of all contracts and


correspondences with the Plaintiffs as referenced [see §I-
§IIbelow] here. These document its commercial activities in or
connected to the Province.

.3 That Defendant knew the Plaintiff Michael Kapoustin (“Kapoustin”)


first arrived to the Republic of Bulgaria on January 25th, 1992
Balkan Airline Flight No. 438 from Frankfurt, Germany.

.4 That the Defendant knew the Plaintiffs to be permanent residents


of the province of British Columbia (“Province”) and citizens of
Canada and to have never been citizens or residents of the
Republic of Bulgaria (“Bulgaria”).

.B That Defendant As A Practice Engaged In Commercial Activities.

.I The Defendant Bulgaria's activity in the Province, as connected to the


Plaintiffs, involved a joint commercial activity to develop, produce, and
distribute clinical drugs or homeopathic compounds in the Province. Some
products intended to be suitable for the therapy of HIV/AIDS [see §D and
§Ebelow] and Cancer in or connected to the Province.

.1 That from 1949 to 1995 the Defendant Bulgaria, had a common


practice of engaging its political subdivisions in commercial
activities for profit.

.2 That as a practical matter upto 1998, the Defendant has


maintained all its commercial activities in pharmaceutical research,
development, production, and distribution in Bulgaria. This
Includes the packaging and the direct export of such products.

.3 That among the commercial activities of the Defendant there are


offered, inter alia, goods or services from its scientific institutions;
including pharmaceutical manufacturing; medical research and
development; production and supply of raw materials for chemical,
biological and other pharmacopoeias; and the distribution of
medical products on the territory of or as connected to Bulgaria.

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.4 That departments of government of the Defendant Bulgaria, from
1991 upto and including 1994 regularly acted as contractors for,
inter alia, pharmaceutical and other product research and
development; manufacturing know-how; technology transfers;
refining and improving manufacturing processes; laboratory and
clinical testing of drugs, including the conducting of human trials;
licensing proprietary clinical and homeopathic technologies;
exclusive rights for marketing and distribution of finished
processes or products; production of ready for export clinical drugs
and homeopathic products.

.5 That as a practical matter any commercial activities in or as


connected to the Province and Bulgaria of the kind as set out in §3
and §4above had to rely on contracts or transactions with a
department of the Defendant's Ministry of Health.

.6 The Defendant Bulgaria was to develop for Plaintiffs, inter alia, a


clinical drug research and development working project for a new
semi-synthetic VinBlastine and VinCristine, clinical drugs in the
treatment of cancer; a method for low cost production and supply
of semi-synthetics as developed in the Province; the laboratory
and clinical evaluations of new substances for potential treatment
of cancer or HIV/AIDS; a working project for research and
development of 3-4 DyhydroVinblastine as derived from a
proprietary processes and materials; laboratory and clinical
evaluations of Triterpene acid compounds “A”, “B”, “C” and “D” and
a low cost method to isolate these compounds by a proprietary
process developed in the Province; develop a commercial method
for the tissue culture of Tripterygium wilfordii, the compounds
extracted having a marked inhibition in vitro on Lymphocyte
proliferation; a laboratory and clinical evaluation of tetra and
pentacylic oxindole alkaloids from the Uncaria tomentosa plant, in
particular alloisopteropodine, Isomer A having a marked
stimulative effect on phagocytosis increase. The Defendant to
develop a low cost process to extract and purify these oxindole
alkaloids.

.7 The Defendant agreed to manufactured for the Plaintiffs a ready


for consumption complex composite substance, "Factor-R", to
consist of any one or more of the aforecited or other compounds in
combination with any one or more cultured and prepared bacterial
species of, inter alia Streptococcus pneumonia, Neisseria
catarrhalis, Streptococcus pyogenes, Haemophilus influenzae,
Staphylococcus aureus, Klebsiella pneumoniae, Escherichia coli,
Rc mutant of E. Coli, Proteus mirabilis and Enterococcus faecalis.

.8 That the Defendant signed contracts to produce for the Plaintiffs


“Factor-R” for use in or as connected to the Province [see below
Founders Group, et al §5, §6, §7, §9, §11, §12, §14 , and §2below]
and to clinically evaluate [see §4-§7below] that product.

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.C That Defendant Made Representations and Promises In The Province.

.I The Plaintiffs commercial activities and contracts [see §Gbelow] in or


connected to the Province with Defendant Bulgaria relied on its public, oral
and written representations, and that of its representatives. That the
following are officials or employees of Defendant's government or
commercial operations on whose representations the Plaintiffs relied.

.1 Prof. Dr. Uzunov, MD, Ph.D., Biology, President of the Medical


Academy of Sofia, on behalf of the Minister of Health.

.2 Mr. Konstantin Kostov, Managing Director, Electronic and Magnetic


Products, Plovdiv.

.3 Mr. Ivan Kirov, Director International Connections, Ministry of


Health.

.4 Mr. Simeon Georgiev, General Director, “Pharmacia”, City of


Dupnica.

.5 Mr. Konstantinov, Director Scientific Research Institute, Sofia,


Bulgaria.

.6 Mr. Minev, Vice – President, “Antibiotic”, City of Razgrad.

.7 Dr. Dimitar K. Todorov, Director, Laboratory of Oncopharmacology,


National Cancer Center, Sofia

.8 Dr. I. Yamboliev, Faculty of Pharmacy, Higher Medical School,


Sofia.

.9 Professor Dr. Petko Uzunov, M.D., Ph.D., Biology, Chief


Department of Pharmacology, The Higher Medical Institute, Sofia.

.10 Professor Dr. Dimitria Nacheva Mihailova – Kasabova, M.Ph.,


Ph.D. Sc., Dean Pharmaceutical faculty, The Higher Medical
Institute, Sofia.

.11 Associate Professor Dr. Asen Ivanov, M.D. Ph.D., and Chief,
Departments of Pharmacognosy and Pharmacological Botany,
Sofia.

.12 Professor Dr. Zahari Raikov, M.D., Ph.D. Sc., Higher Medical
Institute, Stara Zagora.

.13 Associate Professor Dr. Rahamin Daniel Shekerdjiiski, M.D., Ph.D.


Sc., Head, Department of Pharmaceutical Faculty, Sofia

.14 Professor Dr. Bogdan Petrunov, M.D., Ph.D. Sc., Chairman of


Expert Commission for Serums and Vaccines Ministry of Health,
Republic of Bulgaria and director, National Center for Infectious
and Parasitic Diseases, Medical Academy of Sofia, 26 Yanko
Sakazov St., Sofia.

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.15 Dr. Ms. T. Kucharov, Ph.D. Chairman clinical trial commission,
Ministry of Health, Republic of Bulgaria.

.16 Prof. Dr. Ms. G. Gencheva, National Institute for Pharmaceutical


Manufacturing, Ministry of Health, Republic of Bulgaria.

.17 Prof. G. Vassilev, Ph.D., D.Sc., and National Center of


Radiobiology and Radiation Protection, Ministry of Health,
Republic of Bulgaria.

.18 Dr. K. Kostov, M.D., medical manager and director of the Infectious
Diseases Hospital, Ministry of Health, Republic of Bulgaria.

.19 Dr. Plamen Nenkov, M.D., D.Sc., research manger and deputy
director of National Center for Infectious and Parasitic Diseases,
Medical Academy of Sofia, 26 Yanko Sakazov St., Sofia.

.20 That on October 20th 1993 at the Royal York Hotel, Toronto,
Ontario, Canada, the representatives of the Defendant Bulgaria,
Prof. Bogdan Petrunov, M.D., D.Sc., Prof. Plamen Nenkov, M.D.,
D.Sc., and Prof. Rahamin Shekerdjiiski, Ph.D. and Prof. Dr. Dimitar
Todorov, M.D., D.Sc., made public representations. The
representations were made before Canadian investors as to the
Defendant Bulgaria's commercial activities in the Province [see §I
and especially §8above] with the Plaintiffs.

.21 That on October 22nd, 1993 the Defendant's representatives again


made similar representations to the public at the Place
Bonaventure Hotel, Montreal, Quebec, Canada.

.22 That on October 24th 1993 at the Hotel Vancouver, Vancouver,


British Columbia, Canada, the Defendants emissaries [see again
§20above] visited the Province and made the similar
representations to investors and media there as at previous public
presentations.

.23 That on June 2nd 1994 the Department of Health & Human Service,
National Institutes of Health, Bethesda, Maryland USA AIDS
Clinical Trials Group (ACDDC) submitted its requirements to
Plaintiffs and the Defendant. ACDDC setout the laboratory and
clinical data of the Defendant to be presented [see A as attached
hereto] by its representative. The Defendant Bulgaria, as per its
contract, was required to prepare its data and represent it for the
Plaintiffs to the ACDDC panel.

.24 That on August 15th 1994 the Defendant, Ministry of Finance,


Minister Alexandrov was submitted by the Plaintiffs updated
prospectuses and disclosures of the Defendant’s commercial
activities in or as connected to the Province [see A as attached
hereto].

.25 That November 23rd 1994 the ACDDC was reviewing the
Defendant Bulgaria's data as submitted for Factor-R. The ACDDC
rescheduled the Defendant’s presentation of that data for the
Plaintiffs from December 9th 1994 to March 6th 1995 [see A as
attached hereto]. The meeting was rescheduled again to June.
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.26 On June 7th 1995 representatives of the Defendant Bulgaria made
representations to the Plaintiffs attorneys, Morgan, Lewis &
Bockius, Washington, District of Columbia USA. The Defendant
setout the data prepared by it for the Plaintiffs and confirmed its
commercial activities and contracts.

.27 That on June 12th 1995 representatives of the Defendant repeated


these representations [see §26above] before ACDDC members at
Bethesda, Maryland USA.

.28 That as early as October 16th 1991 Mr. I. Dragnevski Trade


Commissioner to Canada for the Defendant Bulgaria in Toronto,
Ontario, had contacted the Plaintiffs in the Province. The
Defendant's trade representative provided the Plaintiffs a copy of
the Defendant's Law on Foreign Investment as enacted on May
17th 1991 [see A as attached hereto]. Those assurances were
provided by Mr. Dragnevski that any commercial activities with the
Defendant or investments with Bulgaria were protected from
seizure or confiscation by this law. That there was no restriction on
the Plaintiffs repatriation of profits or cash from any Bulgarian
investment. Defendant's Consul, Mr. Chavdar Georgiev Mladenov
("Mladenov"), made similar representations.

.29 That the Defendant incorporated among the regular duties of, inter
alio Trade Commissioner Mr. Dragnevski; Consul Mladenov and
others, a direction to solicit, promote or otherwise encourage the
commercial activities of or joint investments with the Defendant
Bulgaria in the Province and Canada as a whole. Defendant’s
consular and trade representatives to Canada and the Province
are in practice required to engage in identifying sources for
financing, marketing, and promoting the Defendant’s commercial
activities.

.30 That the Defendant's Consul to Canada, Mr. Mladenov, maintained


regular contact with the Plaintiffs in the Province. Mr. Mladenov
later entered into commercial activities with the Plaintiffs [see
§6below] in Bulgaria as connected to the Province.

.31 That representative of the Defendant, as a practical matter, did not


at any undertake to disclose to investors in Canada the provisions
of Article 29, Law on Foreigners [see Aas attached hereto] as
enacted by the Defendant on November 28th 1972.

.32 The Defendant Bulgaria, according to its national law, can


withdraw the right to liberty of any foreign citizen on its territory for
their breaching of a contract or a commercial debt to the
Defendant.

.33 There is no equivalent provision in the Defendant’s national law for


citizens of Bulgaria.

.D That Defendant's had Commercial Activities In or Connected To The Province

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.I That Defendant Bulgaria agreed to produce for the Plaintiffs finished
products for delivery in or connected to the province [see §8above]. The
Defendant's representatives [see §1-§19above] made representations and
concluded contracts with the Plaintiffs. In certain instances contracts were
concluded with individual or others connected to them [see, inter alio,
Mladenov §30above; and Petrunov §14above, Nenkov § 19above and
Shekerdjiiski § 13above and §2below].

.1 That on 29 April, 1992, the Defendant agreed to allow the Plaintiffs


exclusive distribution and marketing rights in the Province, Canada
and elsewhere for all immunologically active biological products as
produced by it [see A as attached hereto].

.2 On June 30th 1993, the Defendant Bulgaria amended the April 29th
1992 agreement [see A as attached hereto]. Director's of
departments of the Defendant, Ministry of Health, Prof. Dr. Bogdan
Petrunov, M.D., D.Sc., Prof. Dr. Plamen Nenkov, M.D., D.Sc., and
Prof. Rahamin Shekerdjiiski, Ph.D. contracted with the Plaintiffs to
assist in obtaining, inter alia, licenses to technology of the
Defendant; new patents; the transfers of technology or patents to
the Province from the Defendant; and the securing of other
distribution rights to the Defendants products for the Province or as
connected to it [see and A as attached hereto].

.3 That on October 31st, 1993 the Plaintiffs, presented the Defendant,


Ministry of Finance a short form prospectus, making full and plain
disclosure of commercial activities with the Defendant in or as
connected to the Province.

.4 That on December 1st 1993, the Defendant Bulgaria contracted to


conduct human clinical trials in and outside Bulgaria of Factor-R
[see §Iabove].

.5 On January 13th 1994, as per his contract with the Plaintiffs, Dr.
Bogdan Petrunov submitted to other departments of the Defendant
Bulgaria a request for human clinical trials in and outside Bulgaria
for Factor-R [see A as attached hereto].

.6 On January 17, 1994 the Defendant’s representative, Ms. T.


Kucharov, Ph.D., M.D., Chairman of the Human Clinical Trial
Commission, Bulgaria, advised the Plaintiffs that there was no
objection for human clinical trials in or outside Bulgaria [see Aas
attached hereto].

.7 On January 18th 1994 Ms. G. Gencheva, Prof. Dr., the National


Institute for Pharmaceutical Manufacturing, Bulgaria, advised Prof.
Dr. Petrunov, Chairman of Expert Commission for Serums and
Vaccines, Bulgaria and Director of its National Center for Infectious
and Parasitic Diseases, to proceed with clinical trials for the
Plaintiffs [see A and A as attached hereto]. That the product
Factor-R is approved in Bulgaria to be tested in combination with
other compounds.

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.8 On April 29th 1994 the Defendant Bulgaria agreed to allow the
Plaintiffs exclusive distribution rights in the Province and
internationally for immunological and other agents as produced by
it [see A as attached hereto].

.9 That on May 1st 1994 the Defendant, Ministry of Health Bulgaria


leased to the Plaintiffs a facility at No. 3 Kraka Road, Sofia,
Bulgaria [see A and A as attached hereto].

.10 That the Defendant, Ministry of Health Bulgaria has leased


numerous other facilities to the Plaintiffs and provided options to
purchase its land and buildings. Defendant agreeing to do so
subsequent to the Plaintiffs paying to make leasehold
improvement.

.11 That on August 4th 1994, the representative for the Defendant
Bulgaria, Prof. Dr. Shekerdjiiski, agreed to organize and develop
an analytical method for the product Factor-R [see A as attached
hereto].

.12 That on September 21st 1994 the Defendant contracted to allow


the Plaintiffs exclusive distribution rights within Bulgaria for
immunological products produced by it [see A as attached hereto].

.13 That on September 29th 1994 the Defendant Bulgaria contracted to


conduct for the Plaintiffs a human clinical trial for treating cancers
induced by on the job exposure to radioactive or other
carcinogenic substances [see A as attached hereto].

.14 That on October 31st 1994 the Defendant Bulgaria agreed to an


importation exemption for those quantities of AZT to be provided
by the Plaintiffs [see A as attached hereto] from the Province.

.15 That on March 10th 1995 the Defendant contracted to provide the
Plaintiffs exclusive distribution rights in or connected to the
Province for other immunological products produced by it [See A
as attached hereto].

.16 That on March 21st 1995 the First deputy Minister of Health, Prof.
P. Uzunov [see §1above] confirmed the delivery and planned
clinical use of the AZT and other property of the Plaintiffs.

.17 That the Defendant Bulgaria, as a commercial activity provided


warehousing and storage space to the Plaintiffs for storing
property to be shipped to or from the Province as follows;

Medical inventories were stored at the National Center


for Infectious and Parasitic Diseases, Sofia, Bulgaria.

General inventory. Whisky, vodka, food, dry goods,


refinery equipment and the like, as in transit out of
Bulgaria, were stored with the Defendant at, inter alia,
the free trade zone of “Dragoman” in the Province of
Sofia; the free trade zone of Plovdiv, City of Plovdiv; and
the ports of Varna and Burgas, Bulgaria.

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.18 That Defendant Bulgaria effected contracts with the Plaintiffs to
provide overland transportation services and leasing of sea going
vessels to transport the Plaintiffs property as follows:

With Despred + D Transit Expedition Services and


Insurance Underwriters, Sofia, Bulgaria for overland
service to and from Bulgaria.

With the Port Authority of Varna, City of Varna, Bulgaria


and BalkanShip. Defendant leasing a vessel and the
required facilities to the Plaintiffs necessary to establish
ferry service to and from the port of Poti, Republic of
Georgia and the Port of Varna, Varna, Bulgaria.

.E That Defendant Received Property, Money and Investment.

.I The Plaintiffs were required to provide property, inventories and money


from the Province for the Defendant’s or its assignees direct financial
benefit and commercial activities in or connected to the Province. This
included intellectual property and the requirement to make foreign direct
investments in Bulgaria.

.1 That on December 31st 1991, the Defendant received from


Plaintiffs by Federal –Express Way Bill No. 400-27831425, 20
grams of the substance Dy–Alkovin [see §6above] at a cost of
$90,000 Canadian dollars ("CDN") per gram [see A and A as
attached hereto].

.2 That included with the $1,800,000 CDN of the Plaintiffs physical


property the Defendant was provided proprietary intellectual
property and other data necessary for the synthesis and
commercialization of Plaintiffs’ product.

.3 That from May 1st 1994 to July 1st 1995 the Plaintiffs provided the
Defendant in excess of $600,000 USD in leasehold improvements
and equipment to the Defendant's property at No. 3 Kraka Road
[see §9above].

.4 That on March 1st 1995 Plaintiffs provided $240,408 USD in


medical substances to the Defendant [see A as attached hereto].

.5 That by June 1st 1995 the Plaintiffs caused $6,000,000 USD in


leasehold improvements and capital equipment to be installed on
the Defendant’s property at Tzarimir, Bulgaria [see §8 and
§9below].

.6 That on September 6th 1993 Plaintiffs paid $ 6,000 USD in cash as


a 1st payment on raw materials [see A as attached hereto].

.7 On December 24th 1993, Plaintiffs paid $10,400 USD in cash for


processing of the raw materials [see A as attached hereto].

.8 On May 9th 1995, Plaintiffs paid $1,975 USD for processing and
packaging of product [see A as attached hereto].

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.9 That on July 13th 1995 Plaintiffs paid $72,000 USD (seventy two
thousand United States Dollars) to the Defendant for charter lease
of the ferryboat “Sofia” and to secure port facilities in Varna,
Bulgaria [see A as attached hereto].

.10 That on July 26th 1995 Plaintiffs paid $23,990 USD toward their
May 9th 1995 order for processing and packaging of finished
product [see A as attached hereto].

.11 On August 3rd 1995, Plaintiffs paid $9,875 on a May 9th 1995 order
to process and package product [see A as attached hereto].

.12 On July 3rd 1996 Plaintiffs paid $7,900 USD on an order to


process and package product [see A as attached hereto]..

.13 On April 6th 1994 Plaintiffs paid $6,000 USD on an order for
processing and packaging of product.

.14 On April 8th 1994 Plaintiffs paid $6,000 USD for processing of raw
materials

.15 That on July 26th 1994 Plaintiffs paid $110,000 USD to supply
Defendant with 80kg in finished tablets of Novopharm of Canada
AZT .

.16 That on August 15th 1994 Plaintiffs paid $3,000 USD to have the
Defendant develop a methodology demanded by the Ministry of
Health prior to approval for clinical trials of Plaintiffs' [see A as
attached hereto] Factor-R.

.17 On October 17th 1994 Plaintiffs paid $19,675 USD to develop a


work programs for clinical trials agreed to on 29 September 1994
[see A as attached hereto].

.II That on February 17th 1994 Plaintiffs registered with the Defendant a
$38,000 United States Dollar ("USD") initial foreign direct investment in
Bulgaria. The Defendant, Ministry of Finance ("Ministry") Republic of
Bulgaria (Defendant Ministry Ref. No. M-94-000082) recorded Plaintiffs
investment as having a par value of 750,000 Bulgarian Leva
Undenominated (“BGL”) [see §7below ]on June 17th 1993.

.III That on June 16th 1995 Plaintiffs registered with the Defendant a
$74,000,000 USD increase in their direct foreign investment in Bulgaria.
The Defendant's, Sofia City Court, Commercial Register, and recorded
Plaintiffs investment as having a par value of 2,000,000,000 BGL [see
Abelow as attached hereto].

.F That Defendant Had Available From Plaintiffs Full Disclosure At All Times.

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.I On May 4th 1995, at the order of the Defendant Bulgaria, Mr. Sasho
Russev, Supervising Inspector of the Bulgarian National Bank ("BNB"),
Department for Bank Financial Audits Section, contacted the Plaintiff
Kapoustin in order to inspect the Plaintiffs records. BNB inspector Russev
was provided copies of Plaintiffs records, [see Abelow as attached hereto]
including contracts in or connected to the Province that relied on the
Defendant's commercial activities and representations.

.1 That the Defendant Bulgaria, BNB concluded there is no


commercial activity in banking by the Plaintiffs.

.2 The Plaintiffs had made no written representations to the


Defendant or others of banking or corresponding activities in
Bulgaria.

.3 That the company LifeChoice International Inc. (“LCI”), was an


Antigua, West Indies company incorporated in 1986 under the
laws of Antigua, having its registered and records office in St.
John, Antigua and principal place of business in the City of
Vancouver the Province of British Columbia.

Was registered in 1990 to do business in the province.

Was wholly owned by residents of the province.

The Plaintiffs had control over more than 10% of any


unrestricted issued and outstanding shares of LCI
common stock.

That the Plaintiff Kapoustin was known to have been the


representative of LCI in the Province.

The Plaintiff Kapoustin was known to have been LCI


representative to the Defendant Bulgaria.

That LCI was known to have commercial transactions


and contractual relations on the territory of the Republic
of Bulgaria.

That LCI is known to have assets and property in the


hands of the Defendant Bulgaria on the territory of the
Republic of Bulgaria.

.4 That the company LifeChoice Pharmaceuticals Inc. (“LCP”), is a


British Columbia company federally incorporated on August 9th
1991 under the Canada Business Corporations Act of Canada,
Certificate No. 274128-8. Having its registered and records office
in the City of Vancouver and its principal place of business in the
City of Richmond, Province of British Columbia.

Residents of the province wholly own LCP.

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That the Plaintiffs had financial interest in and control
over 22,000,000 (twenty two million) unrestricted
common shares of LCP stock. This representing more
that 90% of the issued and outstanding capital stock of
LCP.

That Plaintiff Kapoustin is known to be the LCP


representative to the Republic of Bulgaria.

That LCP is known to have had commercial transactions


and contractual relations on the territory of the Republic
of Bulgaria.

That LCP is known to have assets and property in the


hands of the Defendant Bulgaria on the territory of the
Republic of Bulgaria.

.5 That the commercial association of LifeChoice Pharmaceuticals


Bulgaria Joint Venture Ltd. (“LCPBJV”), was registered under the
laws of the Republic of Bulgaria. This is a joint venture limited
liability company in the City of Plovdiv on February 23rd, 1992 and
having its principal place of business in the City of Sofia, Republic
of Bulgaria.

That the Plaintiffs had control over more than 60% of the
voting rights and capital of LCPBJV.

That LCPBJV was beneficially controlled and principally


owned by residents of the province.

The Plaintiff Kapoustin is known to be the LCP


representative to LCPBJV in the Republic of Bulgaria.

That the Defendant Bulgaria was a minority joint venture


partner with the Plaintiffs.

LCPBJV is known to have had commercial transactions


and contractual relations on the territory of the Republic
of Bulgaria.

.6 That the company North American Trade Organization (“NATO”), is


a private limited liability company registered under the laws of the
Republic of Bulgaria on September 30th, 1992 by court decision No
24560/92 of the Sofia City Court. It's principal place of business in
the City of Sofia, Republic of Bulgaria. The Plaintiffs having control
over than 100% of the voting rights and capital of NATO.

NATO was beneficially controlled and principally owned


by residents of the province.

That Plaintiff Kapoustin is known to be the Plaintiffs


representative to NATO in the Republic of Bulgaria.

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That NATO was formed in partnership with former
Bulgarian Consul Mladenov [see §30above] an official of
the Ministry of Foreign Affairs of the Defendant Bulgaria
and former Consul to Canada.

The Plaintiffs, as residents of the Province first acquired


75 percent of NATO equity and later Consul Mladenov
acquired the remaining equity of 25 percent.

That NATO is known to have had commercial


transactions and contractual relations on the territory of
the Republic of Bulgaria.

That NATO is known to have assets and property in the


hands of the Defendant Bulgaria on the territory of the
Republic of Bulgaria.

That NATO acquired from LCI the right in Bulgaria for


exclusive use of the trademark “LifeChoice” as registered
by it on 27 April, 1993 and granted on 23 September,
1993.

.7 That the company LifeChoice International AD (“LCIAD”), is a


private limited liability corporation registered under Bulgarian Law
by court decision on 17 June, 1993 in the City Court of Sofia,
Decision No 15249. Having its offices and principal place of
business in the City of Sofia, Republic of Bulgaria.

That the Plaintiffs own or have controlled on 100% the


unrestricted common shares of the stock of LCIAD.

That the startup capital of $38,000 USD, as contributed


by the Plaintiffs, was divided among 10,000 unrestricted
common voting shares of LCIAD capital stock.

That on 26 August, 1994 the capital of LCIAD was


increased with contributions of the Plaintiffs and divided
among 20,000,000 unrestricted bearer shares of LCIAD
capital stock.

That the corporate registered capital of LCIAD at present


amounts to 2,000,000,000 (two billion) old Bulgaria Leva
(“BGL”) represented by shares in its capital stock having
a nominal (par) value of 100 BGL.

That on June 16th 1995 the capital pain in by the Plaintiffs


represented a par value equivalent at that time of
approximately $ 74,000,000 (seventy four million United
States Dollars) USD.

That the Plaintiff Kapoustin is known to be the LCIAD


representative to the Defendant Bulgaria.

That LCIAD is known to have had commercial


transactions and contractual relations on the territory of
the Republic of Bulgaria.
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That LCIAD is known to have assets and property in the
hands of the Defendant Bulgaria on the territory of the
Republic of Bulgaria.

.8 That the company LifeChoice SA (“LCSA”) is a Greek limited


liability company incorporated in 1994 under European Community
law in the Republic of Greece, having its registered and records
office in Kavala, Greece and;

That the Plaintiffs owned or controlled 95% of the


unrestricted common voting shares of LCSA capital stock
as issued and outstanding.

That LCSA is beneficially controlled and principally


owned by residents of the province.

That the Plaintiff Kapoustin is known to be the LCSA


representative to the Republic of Bulgaria.

That LCSA is known to have had commercial


transactions and contractual relations on the territory of
the Republic of Bulgaria.

That LCSA is known to have assets and property in the


hands of the Defendant Bulgaria on the territory of the
Republic of Bulgaria.

.9 That the company Canameko II AD (“CANAMEKO”) is a private


limited corporation incorporated under the Law of Commerce Act,
Republic of Bulgaria. Having its registered and records offices and
principal place of business in the City of Plovdiv.

That the Plaintiffs had financial interest on 100% of the


unrestricted issued and outstanding common voting
shares of CANAMEKO capital stock.

That CANAMEKO is beneficially controlled by residents


of the province.

That Defendant Bulgaria and CANAMEKO were joint


venture partners. The Defendant having 5% equity in the
capital of a waste management and oil refining facility in
the City of Tzarimir, Republic of Bulgaria financed by the
Plaintiffs.

The equity interest of the Defendant Bulgaria was


represented by officials of the Rare Metals and Uranium
Mines Company of the City of Tzarimir, a political
subdivision of the Defendant Bulgaria.

That the Plaintiffs contributed in cash, equipment or other


good and valuable consideration an amount in excess of
$6,000,000 USD to the joint-venture of with the
Defendant Bulgaria.

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That Plaintiff Kapoustin is known to be the Plaintiffs
representative to CANAMEKO.

That CANAMEKO is known to have had commercial


transactions and contractual relations on the territory of
the Republic of Bulgaria.

That CANAMEKO is known to have assets and property


in the hands of the Defendant Bulgaria on the territory of
the Republic of Bulgaria.

.G That Contracts In or Connected to the Province Were Dependant on


Defendant.

.I As, in the Province the:

.1 The September 10th 1992 contract with Mtskheta, a Patriarchate


association of the Orthodox Church, Mtskheta, Republic of
Georgia.

.2 The October 26th 1992 contract with the University of British


Columbia, Vancouver, British Columbia and British Columbia
Cancer Control Agency.

.3 The February 24th 1993 contract with Tiflis Company, Tibilisi,


Republic of Georgia.

.4 The February 24th 1993 contract with the Ministry of Health,


Government of the Republic of Georgia, Tibilisi, Republic of
Georgia as represented by First Deputy Minister Vladimir
Giorgadze. .

.5 The August 20th 1993 contract with Founders Group and Assignee,
TBR, Kelowna, British Columbia.

.6 The November 1st 1993, contract with Intercon Medical


Consultants Inc., Austin, Texas and LCIAD Sofia, Bulgaria.

.7 The November 19th 1993 contract with Annax Ventures Inc.,


Vancouver, British Columbia.

.8 The December 7th 1993 agreement with Seagram Canada division


Eastern Region & Africa, London, GB.

.9 The December 20th 1993 contract with Silverton Corp.,


Worthington, Ohio USA.

.10 The January 3rd 1994 contract with Saknavtobi Georgian State Oil
and Gas Company, Deputy Chairman Mr. V. Lobzhanidze.

.11 The January 13th 1994 contract with LifeChoice Partnership,


Vancouver, British Columbia and LCIAD Sofia, Bulgaria.

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.12 The January 14th 1994 contract with LifeChoice Partnership,
Vancouver, British Columbia and LCIAD Sofia, Bulgaria and
Silverton Corporation, Worthington, Ohio USA.

.13 The February 17th 1994 contract with Lead Resources, Inc.,
Vancouver, British Columbia.

.14 The June 10th 1994 agreement with Pajaro de Fierro Inc., Mexico
City, Mexico and Founders Group and Assignee TBR, Kelowna,
British Columbia.

.15 The January 31st 1995 agreement with Royal Advent Securities,
Inc. and Evans & Evans Inc., Vancouver, British Columbia.

.16 The February 7th 1995 agreement with Lindsay R. Semple and
others, Vancouver, British Columbia.

.17 The July 14th 1995 contract with LT. And MC. Trading Company,
Varna, Bulgaria.

.18 The August 31st 1992 contract with LEKO Promarket, Moscow,
Russia

.II As connected To The Province are:

.1 The April 1st 1994 contract with Green Oasis Environmental Inc.,
Charleston, South Carolina USA.

.2 The April 7th 1994 contract with LifeChoice Inc., Austin, Texas USA.

.3 The August 1st 1994 contract with Green Oasis Environmental Inc.,
Charleston, South Carolina USA.

.4 The August 12th 1994 contract with Mimi Co. Ltd., Tibilisi, Republic
of Georgia.

.5 The August 22nd 1994 contract with Green Oasis Environmental


Inc., Charleston, South Carolina USA.

.6 The October 4th 1994 contract with Shurtleff Waste Oil Systems
division of Utopia Fabricating Ltd., Pennfield, New Brunswick,
Canada.

.7 The December 8th 1994 contract with Green Oasis Environmental


Inc., Charleston, South Carolina USA.

.8 The January 4th 1995 agreement with Seagram Canada division


Europe & Africa London, GB.

.9 The January 30th 1995 agreement with Lyths & Hangers Limited,
Bahamas.

.10 The February 15th 1995 contract with Green Oasis Environmental
Inc., Charleston, South Carolina USA.

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.11 The March 1st 1995 contract with Green Oasis Environmental Inc.,
Charleston, South Carolina USA.

.12 The June 3rd 1995 contract with MAO Ltd., Tibilisi, Republic of
Georgia.

.13 The August 10th 1995 agreement with E Tech Inc., Bardstown,
Kentucky USA.

.14 The October 15th 1995 contract with the Shoter Rustavelli
Academy Of Theatre, Tibilisi, Republic of Georgia.

.15 The January 31st 1996 contract with The Republic of Georgia, City
of Rustavi.

.H That At Canada's Instance the Defendant Prosecuted the Plaintiff Kapoustin.

.I On May 15th 1995 the Defendant Bulgaria solicited information from


codefendant Derek Doornbos ("Doornbos") on the Plaintiffs activities and
bank accounts in the Province. Codefendant Doornbos identified to the
Defendant $16,000,000 USD in cash in the Province that he claimed to be
connected to the Plaintiff Kapoustin. Later Defendant discovered that these
are not connected to the Plaintiff Kapoustin.

.1 That on July 7th 1995 [see Abelow as attached hereto] co-


defendant Doornbos advised the Defendant that Plaintiff Kapoustin
had cash of $16,000,000 USD [see §5-§13below, and §IIIbelow] in
the Province.

.2 That the information and data was provided to representatives of


the Defendant Bulgaria, Col. Levicharov, Director of [the] Central
Service for [the] Fight Against Organized Crime [Centralna slujba
za borba s organiziranata prestapnost – CSBOP].

.3 That all information as forwarded by codefendant Doornbos was


given in the care one Mr. Anatoli. Kosev, division “KMC” [phonetic]
of Defendant’s Ministry of Internal Affairs [Ministerstvo na
vatreshnite raboti]

.4 That Mr. Anatoli Kosev was assigned by the Defendant as the


Plaintiff Kapoustin's official interpreter at interviews and judicial
hearing. Defendant has never disclosed to the Plaintiffs' attorneys
that Mr. Anatoli Kosev's is an employee of the Defendant and an
official of its police.

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.5 That the July 7th 1995 information of codefendant Doornbos was
not corroborated by another source.

.6 That the Defendant was advised by an agency of the Government


of Canada that in 1994 the Plaintiff Kapoustin had moved “4 million
and 12 million USD had been transferred to several bank
accounts” in the Province.

.7 The Defendant was further advised that the accounts in the


Province as connected to the Plaintiff Kapoustin were being
credited daily “with amounts of about 100,000 USD”

.8 That the Defendant and codefendant Doornbos concluded that the


money transferred and credited to accounts in the Province are
“amounts coming from the funds accumulated in Bulgaria by
KAPOUSTIN”.

.9 That codefendant Doornbos and the Defendant Bulgaria


concluded that Plaintiff Kapoustin was transferring funds to the
Province obtained “through large-scale financial frauds carried out
by his pyramidal structure “LIFECHOICE.”

.10 That Defendant and codefendant Doornbos concluded that the


funds being deposited from Bulgaria to accounts in the Province by
the Plaintiff Kapoustin are “established as transfers going through
banks in the Caribbean Islands.”

.11 The Defendant was asked by codefendant Doornbos to provide or


collect any additional information and data on the Plaintiffs in or
connected to the Province as might be found in Bulgaria.
Codefendant Doornbos directed the Defendant to formulate “even
if only a supposition whatsoever about any eventual breach of
Bulgarian Law” by the Plaintiff Kapoustin “as connected with
LifeChoice that your service could submit” to the Province “is of
special importance.”

.12 That the Defendant was directed by an agency of the Government


of Canada to make every effort to bring, against the Plaintiff
Kapoustin or the company LifeChoice “a criminal prosecution of
any character at all [nakazatelno proizvodstvo ot kakavto I da bilo
harakter]” and to provide “any additional data or operational
information in what direction the funds obtained by LifeChoice are
being transferred out of Bulgaria” and into the Province.

.13 That an agency of the Government of Canada advised the


Defendant Bulgaria it could make arrangements in the Province,
“in Vancouver, to obtain search warrants of the office premises
and houses” of the Plaintiffs and could expropriate for the
Defendant all or part of the $16,000,000 USD in the Province
together with other property.

.II That on May 9th 1997 the Defendant Bulgaria, Ministry of Foreign Affairs,
did advise the Government of Canada that the warrants for the Plaintiff
Kapoustin's arrest date back to May of 1995 [see A as attached hereto].

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.1 That on December 13th 1995, the Defendant Bulgaria and
codefendant Doornbos held a meeting at the offices of A.
Alexandrov in Sofia, Bulgaria. Representing the Defendant were,
Mr. Anatoli Kosev, Mr. Miroslav Genov, Central Service for [the]
Fight Against Organized Crime, Mr. Roumen Andreev, deputy
chief, National Investigative Service and co defendant [sledovatel]
S. Georgiev [see Abelow as attached hereto].

.2 That Defendant Bulgaria made public [see §Jbelow] a written


memorandum containing the phrase: “it is of mutual interest for the
Bulgarian and Canadian authorities to establish the entire criminal
activity of Michael Kapoustin in his large scale financial frauds and
the incoming to Canadian and Caribbean banks of millions of USD
from East and West Europe” as deposited to accounts in the
Province.

.3 That at the December 13th 1995 meeting, as cited above, the


codefendant Doornbos advised the Defendant Bulgaria that the
Plaintiff Kapoustin had been charges and convicted in Canada as
child molester and Pedophile. This information having later been
made public by the Defendant Bulgaria [see §9and §11below].

.4 That on April 1st 1996 the Defendant received a request from


codefendant Doornbos [see A as attached hereto] to “advise,
please if your further investigation had determined end destination
of the money which Kapoustin defrauded” and transferred to the
Province. And if the Defendant Bulgaria was “able to identify
offshore banking institutions, account numbers” of the Plaintiffs. It
contains the following additional phrase from codefendant
Doornbos:

“I am asking this as it is a very real possibility, as


suggested in December that some of the funds may
have been eventually transferred to Canada. If you have
any information in this regard please advise”

.5 That on July 31st 1996 the Defendant Bulgaria solicited more


information concerning Plaintiffs property and activities in or
connected to the Province.

.6 That on August 14th 1996, codefendant Doornbos again requested


the Defendant Bulgaria to “advise when or if any information is
found regarding Kapoustin having transferred monies” to the
Province [see A as attached hereto].

.7 That on August 23rd 1996, codefendant Doornbus requested the


Defendant Bulgaria [see A as attached hereto] again provide
information “with respect to Kapoustin and companies and
accounts that he had in the Caribbean” and connected to the
Province. That the codefendant is “still very much interested in any
indication he has that any of Kapoustin gains from the fraud in
Bulgaria ended up in Canada.”

.8 That on June 25h 1997 the Defendant solicited information and


data in the province from codefendant Doornbos.

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.9 That on June 26th 1997 the Defendant was advised by
codefendant Doornbus that he was “still awaiting in writing,
confirmation, information and the Rogatory Request promised” by
the Defendant Bulgaria.

.10 That the following request was made by codefendant Doornbos to


the Defendant Bulgaria to provide him with information “regarding
funds that Kapoustin transferred to Canada, specifically to the law
office of McCandless, Morrison & Verdicchio” by the Plaintiffs [see
A as attached hereto].

.11 That on July 2nd 1997 codefendant Doornbos personally delivered


to the Defendant documents obtained by him in the Province [see
A as attached hereto].

.III On July 17th 1995 the Defendant Bulgaria, on the order of “M”, as
countersigned by “MV” , commenced to “Take legal Action” [Da se zavede
delo] [see §13above] against the Plaintiff Kapoustin and the company
LifeChoice. The Defendant Bulgaria ordered on that date the arrest of the
Plaintiff [see §IIabove] and property of the Plaintiffs in Bulgaria.

.1 That on August 1st 1995 the Defendant, Ministry of Finance, first


converted Plaintiffs' property in Bulgaria to its own use.

.2 That on August 14th 1995 Plaintiffs’ first complained to the


Defendant Bulgaria that their property had been unlawfully
expropriated [see Aas attached hereto].

.3 That in October of 1995 a quantity of 7,500 /60 tablet units of the


Plaintiffs’ Factor-R product were converted by the Defendant to its
own use. The property of the Plaintiffs is valued at $1,620,000
USD.

.4 That on December 28th 1995 a quantity of 51,972/ 0.700L bottles of


the Plaintiffs’ Seagram Canada scotch whisky was converted by
the Defendant to its own use. The Plaintiffs property was at the
time in transit and at a customs free zone. The property of the
Plaintiffs is valued at $519,720.00 USD.

.5 That again on December 28th 1995 a quantity of 66,260/ 0.500L


bottles of the Plaintiffs’ Seagram Canada vodka was converted by
the Defendant to its own use. The Plaintiffs property was at the
time in transit and at a customs free zone. The property of the
Plaintiffs had a cost $198,780.00 USD.

.6 That on December 29th 1995 the Defendant converted to its own


use quantities of the Plaintiffs’ 22,194 boxes of “Villars” Swiss
Chocolate valued at $66,400 USD and 9,280 bottles of .500L of
Seagram Canada vodka. The Plaintiffs property was at the time in
transit and at a customs free zone. The property of the Plaintiffs
valued at $27,840 USD.

.7 That on February 2nd 1996 the Defendant converted to its own use
32 of the Plaintiffs’ 20’ sea going containers. The Plaintiffs property
was at the time in transit and at a customs free zone. The property
of the Plaintiffs is valued at $48,000 USD.
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.8 That on March 3rd 1996 the Defendant converted to its own use the
Plaintiffs’ Land Rover jeep, registration No. C9522CM. The vehicle
is valued at $17,500 USD.

.9 That on March 8th 1996 the Defendant converted to its own use
the Plaintiffs’ oil refining installation and equipment with leasehold
improvements at Tzarimir, Bulgaria. The equipment and leasehold
improvements are valued at $ 5,750,000 USD.

.10 That on March 13th 1996 the Defendant converted to its own use
the Plaintiffs’;

Daewoo Tico with registration No. C1333AA. The


vehicle is valued at $4,500 USD.

40’ refrigeration trailer with registration No. C5235EB.


The trailer is valued at $18,000 USD.

Land Rover type 121 truck with registration No. C9521.


The vehicle is valued at $23,000 USD.

Land Rover jeep with registration No. C2850AA. The


vehicle is valued at $17,500 USD.

.11 That on March 27th 1996 the Defendant converted to its own use
the Plaintiffs’ Daewoo Tico automobile with registration No.
C7673CX. The vehicle is valued at $4,500 USD.

.12 That on July 29th 1996 the Defendant Bulgaria converted by to its
own use the quantity of 18,144. 0.700L. bottles of Seagram
Canada scotch whisky belonging to the Plaintiffs. The Plaintiffs
property was at the time in transit and at a customs free zone and
valued at $181,440.00 USD.

.13 That on August 15th 1996 the Defendant to its own use converted
456 items of property of the Plaintiffs. The value of the items is
$450,000 USD.

.14 That on October 1st 1996 the Defendant converted to its own use
the Plaintiffs’ property [see §1above] and leasehold improvements
[see §9 and 3above] in Sofia found at No. 3 Kraka Road.

.15 That on May 25th 1998 the Defendant converted to its own use and
divided Plaintiffs’ private land in the municipality of Bankia, the
province of Sofia, Bulgaria. The land is valued at $65,000 USD.

.16 That the Defendant converted to its own use the Plaintiffs 20
grams of Dy-Alkovin [see §1above]. The property of the Plaintiffs is
valued at $1,800,000 USD.

.17 That the Defendant converted to its own use the Plaintiffs 152 /100
units of AZT and 1000 /60 units of Factor-R [see §4above]. The
property of the Plaintiffs is valued at $240,408.

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.18 The Defendant converted to its own use the Plaintiffs 1000 /100
units of AZT while in transit and at a customs free zone. The
property of the Plaintiffs is valued at $140,000 USD.

.19 July 27, 1998 the Defendant converted to its own use the Plaintiffs
property at No. 3, "Kraka" Road Sofia. The ground floor of the
building consists of 580 square meters of improvements by the
Plaintiffs and other offices of 57 square meters and a separate
premise of 35 square meters as built by the Plaintiffs on a second
level. The Defendant transferred title was to itself by an Act for
State Property No. 001047. The new owner of the Plaintiffs
property is District of Sofia, a political subdivision of the Defendant
Bulgaria. Defendant Bulgaria has not compensated the Plaintiffs
for rent as prepaid or the funds invested. April 15th, 1999
Defendant Bulgaria by executive Order No 011003 issued by the
District Manager of Sofia handed over the Plaintiffs property to the
Regional Union of the Social-Democratic Party.

.IV That Defendant Bulgaria confirmed in official documents and public


statements prosecuting the Plaintiff Kapoustin at Canada's request.

.V That according to the deponent Ms, Maya Dobreva and public statements
of codefendants Stefcho Georgiev, Mario Stoyanov, [see §7-21below]
Emilia Mitkova, Kina Dimitrova and Dimitar Shackle, the arrest of the
Plaintiffs assets and the Plaintiff Kapoustin by the Defendant was on
Canadian government insistence. The information and assistance provided
in the Province to the Defendant from an agency of the Government
Canada provided the Defendant the motive for its arrest of Plaintiffs
property.

.VI That the Defendant Bulgaria can not produce an official document
exchanged between it and the Government of Canada confirming the
veracity of codefendant Doornbos on the subject of the Plaintiff Kapoustin
[see A and A as attached hereto] that none exists.

.1 The Republic of Bulgaria has no agreement or arrangement with


the Government of Canada for its agencies or instrumentalities to
collect and exchange private information and data on the Plaintiffs.
Such an arrangement was necessary, Bulgaria not being a party to
Canada’s Mutual Legal Assistance in Criminal Matters Act Chapter
M – 13.6 (RS 1985, c. 30 (4th sup.)) 1988, c. 37.

.2 That at no time in the instance did the Defendant's Minister of


Foreign Affairs or its Respondent, the Minister of Justice, Republic
of Bulgaria, submit a request to Canada. The Defendant Bulgaria
did not obtain any agreement from the Minster of Foreign Affairs
Canada as per Ss. 6(1) of the Mutual Legal Assistance in Criminal
Matters Act. The enactment requiring an "administrative
arrangement" to be instituted with the Defendant Bulgaria prior to
soliciting information or data in the Province or exchanging it.

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.3 That the Defendant Bulgaria has never submitted a request to
Canada that complies with provisions of its national law. The
Defendant is required to seek foreign legal assistance only under
circumstances of an international treaty. That any such request
must comply with the procedural requirements of Bulgarian
national law. Chapter 22 Criminal Code of Procedure governs
such requests and states the following:

Chapter 22

Section VI Legal Assistance in Criminal Matters (new S.G.


64/1997) (relevant Articles)

Article 461 (new - S.G. 64/1997)

Legal assistance under criminal cases of another country is


rendered under the circumstances of an international treaty
concluded, to which Bulgaria is a party or according to the principle
of reciprocity.

The legal assistance constitutes of the following actions:

Handing in of summons and judicial papers;

Seizing and submitting of the objects with which the crime was
committed or of the property obtained through an offence;
interrogation of an accused person, defendant or a witness;
appointing of an expertise and accepting its conclusion; conducting
of inspection, search and seizure; search and identification of
persons;

Submitting of material evidence, information, and documents;

Submitting information concerning the conviction of a person.

Article 462 (new - S.G. 64/1997) Legal assistance may be refused


if executing of the request might threaten sovereignty, national
security, social order or other interests, protected by law.

Article 464 (new - S.G. 64/1997)

The request (porachka) for legal assistance contains data about


the authority placing it; the subject and motive of the request; the
names and citizenship of the person to whom the request refers;
the name and address of the person to whom the papers are to be
handed in; when necessary - the accusation and short statement
of the facts under it.

The request for legal assistance is to be sent to the Ministry of


Justice and Legal Euro-integration, except in cases when an
international treaty to which Bulgaria is a party provides otherwise.

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.VII That the Deponent Dobreva and Defendant Bulgaria can produce no
document to support the statement of Ms. Dobreva that the Plaintiff
Kapoustin attempted to and did conceal himself from the Defendant
Bulgaria.

.VIII That the commercial activities of the Defendant with the Plaintiffs in or
connected to the Province and relying on the Defendant made
concealment of the Plaintiff Kapoustin and his activities, as a practical
matter, impossible. The Defendant's agencies or instrumentalities at all
times monitoring the Plaintiff Kapoustin, his activities, and those of others
associated to him.

.1 The Defendant, in providing the Plaintiffs their visas [see §3above]


and registering their commercial activities [see §II, §III, §4, §6 and
§7above] maintained as a result, inter alia, a record of the Plaintiffs
permanent residence address in the Province, registered
addresses in Bulgaria and legal addresses of all commercial
enterprises connected to the Plaintiffs.

.2 That on October of 1993 and again August 15th 1994 [see A as


attached] Plaintiffs provided Defendant Bulgaria, the Minister and
Ministry of Finance, details of all joint commercial activities in or
connected to the Province with Defendant.

.3 The Defendant's, Bulgarian National Bank's inspectors were also


provided full disclosure [see A as attached hereto].

.4 That the Defendant knew the Plaintiffs' auditors at the time to be


are KPMG Peat Marwick AE, Athens, Greece; Price Waterhouse,
St. John, Antigua; Cashuk, Wiseman and Goldberg, CPA’s, San
Diego, California, USA and Finex CPA’s, Sofia, Bulgaria.

.5 That the Defendant knew the Plaintiffs; attorneys at the time to be


Mr. Anastasios S. Koimtzidid, Esq., Kavala, Greece; Mooney &
Associates, Salt Lake City, Utah, USA and McCandless, Morrison
& Verdicchio, Vancouver, British Columbia, Canada. With lead in
house legal counsel being Ms. Mila Popova.

.6 That the Defendant knew Plaintiffs' legal addresses in the


Province, the United States, Bulgaria and Greece, from October
16th 1991 upto the present, are a part of the official record of the
Defendant, government of Bulgaria and publicly assessable [see A
as attached hereto].

.7 The Defendant recorded Plaintiffs movements throughout Bulgaria


and controlled their movement in or out of Bulgaria.

.8 The Plaintiff Kapoustin had permission from the Defendant


Bulgaria to stay in Bulgaria only up to September 29th, 1995. This
is according to records of the Direction of the People's Police
Bulgaria, Passports Department.

.9 That the National law of the Defendant Bulgaria required Plaintiff


Kapoustin leave Bulgaria on or before the September 29th, 1995
date.

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.10 The Plaintiff Kapoustin legally departed Bulgaria on or about
August 1st 1995.

.11 That Defendant Bulgaria, at no time attempted to deliver or forward


a subpoena or any other such document by a method prescribed
in the Defendant’s national law that demanded an appearance
before a judicial authority of Bulgaria [see again A and A as
attached hereto].

.12 That on October of 1994 the Defendant, Ministry of Finance


required, at the request of the Bulgarian National Bank had
Supreme Court Prosecutor, Mr. Topurov, consult with legal
representatives of the Plaintiffs as to the commercial activities in or
as connected to the Province and Bulgaria.

.13 That the Plaintiffs where represented by attorney Mila Popova and
another attorney who met Mr. Topurov in October of 1994 at the
offices of Supreme Court Prosecutor Topurov, Room 59A, Floor 4
of the Courts of Justice, Sofia, Bulgaria.

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.I That Defendant Collected Private Information and Data in the Province.

.I The Defendant has never obtained permission in the Province to collect


private information or data protected by provisions of law promulgated
under the Privacy Act [R.S.B.C. 1996] Chapter 165, Section 15(h), s. 30
and s. 28 with s.22 and does not avail itself of any order by a judge in the
Province or other competent court permitting its actions in the Province.

.1 The Defendant has not produced a Rogatory Request or other


document issued by it to the Ministry of the Attorney General of
Canada or the Minister of Foreign Affairs Canada directing any
Government of Canada agency to take investigative directions or
to transmit private information and data on the Plaintiffs as
collected in the Province.

.2 The Defendant has in the instance case never submitted any


Rogatory Request to the Minister of Foreign Affairs of Canada
agreeing to comply with terms and conditions imposed in the
sending abroad of a record or thing collected in the Province.

.3 That the Defendant its officials, agencies or instrumentalities public


disclosure of the information and data provided by codefendant
Doornbos, if publicly disclosed could reasonably be expected to,
inter alia, deprive the Plaintiffs of the right to a fair or impartial
adjudication.

.J That The Defendant Presented the Information To The Public As If Fact.

.I The there was allowed unauthorized access, collection, use and public
disclosure or disposal of unverified private information and data collected
in the Province was unverified and proved later to be inaccurate or
incomplete and unreliable.

.1 That the unreasonable invasion and public disclosure of the


Plaintiffs' personal privacy by any official, agency or instrumentality
of the Defendant Bulgaria is a violation of its national law.

.2 That the Defendant's national law makes plain that its is unlawful
to make public information in a record or thing that would unfairly
expose a person or company to financial or other harm by
damaging their reputation.

.3 That the Defendant, its officials, agencies or instrumentalities did


intentionally make public the information and data collected in the
Province and provided by the codefendant Doornbos.

.4 That the information made public by the defendant consisted of


personal recommendations, character references or evaluations
and conclusions indicating the Plaintiff Kapoustin's racial or ethnic
origins, sexual orientation or religious or political beliefs or
associations.

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.5 That the Defendant fails to produce any document issued by a
judicial authority of Canada or Bulgaria authorizing or exerting
control over the collection of private information and data on the
Plaintiffs in the Province.

.6 That there is a document issued by the Defendant, Ref. No.


5274.96.111 on 17.10.96 establishing that on 09.07.96 and
26.07.96 the Plaintiff Kapoustin advised Mr. Topurov [see
§12above] that he had good reason to believe that codefendant S.
Georgiev was making fraudulent public statements and
misrepresenting his official in documents. The information and data
the Defendant Bulgaria was making public was false and
misleading. That this can is found on page 56-file volume 44 of
cccc1403/98.

.7 That on August 1st 1996 the Defendant Bulgaria released to the


newspaper “Continent” the following statement:

“that Canada and Bulgaria will struggle which country is


going to bring action against him [the Plaintiff Kapoustin]"

[ ] inserted
That this is untrue.
.8 That in the above cited edition of Continent the codefendant
Stefcho Georgiev, in his capacity on behalf of the Defendant
Bulgaria called the Plaintiff Kapoustin an “International swindler”,
and "is a well known fraud for Interpol according to the Canadian
Government "
That this is untrue.
.9 That the Defendant Bulgaria goes on to state to the public that the
Plaintiff Kapoustin has “effected sexual offences against minors
[infants, child abuses] according information from the Canadian
authorities” in the Province ( [] inserted by translator.
That this is untrue.

.10 That the Defendant goes on to publicly state that the Plaintiff
Kapoustin was already ”deceiving others in Georgia” and had
criminal cases in the Province there "are old and unclear" in
Canada.
That this is untrue.

.11 The Defendant states that the Plaintiff Kapoustin "did not form
LifeChoice and didn’t dare to lie to people that insolently" in the
Province where the Plaintiff Kapoustin also “Played games of
happiness" as he engaged in "sexual assaults against minors,
according to the data of the Canadian authorities".
That this is untrue.

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.12 That the Defendant had brought accusations against Plaintiff
Kapoustin for "cheating 12,000,000 USD" from the company
LifeChoice International A.D.
That this is untrue.
The Plaintiffs own 100% of all issued
and outstanding shares of that
company [see §7above].

.13 The Defendant Bulgaria publicly stated that according to Canadian


authorities the money from Bulgaria citizens was "sent to the
Caribbean islands".
That this is untrue.

.14 That the Defendant publicly stated that the Plaintiff "Kapoustin
should be responsible for over 18,000,000 USD, which he
managed to steal away from Bulgaria".
That this is untrue.

.15 That Defendant Bulgaria publicly stated it was prosecuting the


Plaintiff Kapoustin as a foreigner [see §31above].

.16 That the codefendant Georgiev stated publicly for the Defendant
Bulgaria "which country is not going to collect its taxes from the
foreigners who are doing business in the country? Kapoustin was
importing from Canada cigarettes, beer, whisky, vodka for the
purpose of trade, but he did not fill up exact tax declarations. With
which he injured the state budget, the Sofia City community and
the tax department with millions.”
That this is untrue.

.17 That the Defendant had the Plaintiff Kapoustin arrested as a


foreigner that "fills in false tax declarations thus defrauding the
Budget.”
That this is untrue.

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.18 The Defendant Bulgaria, Ministry of Finance at all times knew that
the Plaintiff Kapoustin had not personally imported any of the
aforestated in § 16above goods and had not filled in a false
declaration. The Plaintiff is not a citizen or resident of Bulgaria and
as such not required to declare to the Defendant Bulgaria his
income outside of Bulgaria.

.19 That the Defendant publicly stated the refining equipment


delivered to Bulgaria and installed at the premises in Tzarimir,
Bulgaria [see § 8, §9, §5, §1, §3, §5, §7, §10, §11 and §15above]
as leased, was "bought as a second hand installation. It cannot
bring the dreams of 10,5 million USD."
That this is untrue.

.20 That the Defendant publicly stated that the improvements and
equipment at No. 3 Kraka Road were paid for by the Plaintiffs [see
§3above]. The Defendant represented that the Plaintiffs "made
some improvements".

The Defendant however continued to


represent that these improvements
and equipment were "on the account
of the Ministry of Health and the
National Center of Parasitic and
Infectious Diseases [a department of
the Defendant Ministry of Health]."
That this is untrue.
.21 The Defendant stated that the drug "Factor –R is sold without a
permission of the Bulgarian authorities" [see §Iabove].
That this is untrue.

.II That the above-cited public statements of the Defendant Bulgaria and
information of codefendant Doornbos appeared repeatedly in the mass
media on the time and in the newspapers cited here.

.1 Newspaper articles:
 January, 1995, Newspaper "Cash" No 14, p.12
 March 14-20, 1995, Newspaper "Monopoly"
 April 12, 1995, Newspaper "Trud"
 April 19, 1995, Newspaper "Democracia" (Democracy)
 April 10-16, 1995, Newspaper "Capital"
 August 1, 1995, Newspaper "Trud"
 April 17-23, 1995, Newspaper "Capital"
 May 17-23, 1995, Newspaper "Nosten Zhivot" (Night Life)
 June 7, 1995, Newspaper "Trud"
 June 19-25, 1995, Newspaper "Capital"
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 June 26, 1995, Newspaper "Trud"
 July 8, 1995, Newspaper "24 Chasa" (24 Hours)
 July 13, 1995, Newspaper "Continent"
 July 14, 1995, Newspaper "24 Chasa" (24 Hours)
 July 18, 1995, Newspaper "Pari" (Money)
 July 19, 1995, Newspaper "Cash" No 19
 July 20, 1995, Newspaper "24 Chasa" (24 Hours)
 July 24, 1995, Newspaper "24 Chasa" (24 Hours)
 July 24-30, 1995, Newspaper "Capital"
 July 31, 1995, Newspaper "Continent"
 August 1, 1995, Newspaper "Trud" (Labour)
 October 15, 1995, Newspaper "Weekly Standard"
 December 5, 1995, Newspaper "24 Chasa" (24 Hours)
 December 8, 1995, Newspaper "24 Chasa" (24 Hours)
 December 18, 1995, Newspaper "24 Chasa" (24 Hours)
 December 23, 1995, Newspaper "Pari" (Money)
 Newspaper "Nedelen Novinar" ?
 July 8, 1995, Newspaper "24 Chasa" (24 Hours)
 July 13, 1995, Newspaper "Continent"
 July 14,1995, Newspaper "Trud" (Labour)
 July 18, 1995, Newspaper "Pari" (Money)
 July 19, 1995, Newspaper "Cash" No 29
 July 20, 1995, Newspaper "24 Chasa" (24 Hours)
 July 24, 1995, Newspaper "Business Trud"
 July 24-30, 1995, Newspaper "Capital"
 July 31, 1995, Newspaper "Continent"
 August 1, 1995, Newspaper "Trud" (Labour)
 August 8, 1996, Newspaper "Standard"
 September 5, 1995, Newspaper "Trud" (Labour)
 October 15, 1995, Newspaper "Weekly Standard"
 December 5, 1995, Newspaper "24 Chasa" (24 Hours)
 December 18, 1995, Newspaper "24 Chasa" (24 Hours)
 December 23, 1995, Newspaper "Pari" (Money)
 February 14, 1996, Newspaper "Standard"
 February 15, 1996, Newspaper "Standard"
 February 22, 1996, Newspaper "Standard"
 February 24, 1996, Newspaper "Standard"

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 June 25-27, 1996, Newspaper "Cash" No 25
 July 22, 1996, Newspaper "24 Chasa" (24 Hours)
 July 31, 1996, Newspaper "Continent"
 August 1, 1996, Newspaper "Continent"
 August 8, 1996, Newspaper "Standard"
 August 21, 1996, Newspaper "Novinar"
 August 21, 1996, Newspaper "24 Chasa" (24 Hours)
 August 21, 1996, Newspaper "Trud" (Labour)
 August 22, 1996, Newspaper "24 Chasa" (24 Hours)
 August 23, 1996, Newspaper "Standard"
 November 11, 1996, Newspaper "24 Chasa" (24 Hours)
 November 23, 1996, Newspaper "24 Chasa" (24 Hours)
 February 23-March 1, 1998, Newspaper "Banker"
 May 25-31, 1998, Newspaper "Banker"
 December 7-13, 1998, Newspaper "Banker"
 March 5, 1999, Newspaper "Trud" (Labour)
 March 5, 1999, Newspaper "24 Chasa" (24 Hours)
 March 26, 1999, Newspaper "Trud" (Labour)
 April 14, 1999, Newspaper "Duma" (Word)
 April 16, 1999, Newspaper "24 Chasa" (24 Hours)
 April 17, 1999, Newspaper "24 Chasa" (24 Hours)
 April 17, 1999, Newspaper "Trud" (Labour)
 May 3-9, 1999, Newspaper "Banker"
 September 8, 1999, Newspaper "Trud" (Labour)
 October 18-24, 1999, Newspaper "Banker"
 December 15, 1999, Newspaper "Trud" (Labour)
 December 16, 1999, Newspaper "Cash"
 January 11, 2000, Newspaper "Monitor"
 January 11, 2000, Newspaper "Sega" (Now)
 January 11, 2000, Newspaper "Trud" (Labour)
 January 12, 2000, Newspaper "24 Chasa" (24 Hours)
 January 12, 2000, Newspaper "Sega" (Now)
 January 12, 2000, Newspaper "Standard"
 January 12, 2000, Newspaper "Monitor"
 January 12, 2000, Newspaper "Trud" (Labour)
 January 15, 2000, Newspaper "Trud" (Labour)
 January 15, 2000, Newspaper "24 Chasa" (24 Hours)

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 January 18, 2000, Newspaper "Trud" (Labour)
 January 18, 2000, Newspaper "24 Chasa" (24 Hours)
 January 18, 2000, Newspaper "Sega" (Now)
 January 18, 2000, Newspaper "Novinar"
 January 18, 2000, Newspaper "Novinar"
 January 25, 2000, "Democracia" (Democracy)
 February 29, 2000, Newspaper "Sega" (Now)
 March, 3, 2000, Newspaper "Sega" (Now)
 March 17, 2000, Newspaper "Cash", No. 11
 April 8, 2000, Newspaper "Monitor"
 April 11, 2000, Newspaper "Monitor"
 April 11, 2000, Newspaper "Standard"
 April 11, 2000, Newspaper "24 Chasa" (24 Hours)
 April 11, 2000, Newspaper "Trud" (Labour)
 April 11, 2000, Newspaper "Sega" (Now)
 April 11, 2000, Newspaper "Standard"
 April 25, 2000, Newspaper "Monitor"
 April 25, 2000, Newspaper "Trud" (Labour)
 June 6, 2000, Newspaper "Duma" (Word)
 June 6, 2000, Newspaper "Trud" (Labour)
 July 4, 2000, Newspaper "Novinar"
 July 4, 2000, Newspaper "Standard"
 July 4, 2000, Newspaper "Trud" (Labour)
 July 6, 2000, Newspaper "Standard"
 July 7, 2000, Newspaper "24 Chasa" (24 Hours)
 July 7, 2000, Newspaper "Standard"
 July 7, 2000, Newspaper "Trud" (Labour)
 Sept. 5, 2000, Newspaper "24 Chasa" (24 Hours)
 September 5, 2000, Newspaper "Novinar"
 September 5, 2000, Newspaper "Sega" (Now)
 September 5, 2000, Newspaper "Standard"
 September 8, 2000, Newspaper "Novinar"
 September 8, 2000, Newspaper "Monitor"
 September 8, 2000, Newspaper "Sega" (Now)
 September 8, 2000, Newspaper "Trud" (Labour)
 September 9, 2000, Newspaper "Trud" (Labour)
 September 26, 2000, Newspaper "Sega" (Now)

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 September 26, 2000, "Democracia" (Democracy)
 September 26, 2000, Newspaper "Novinar"
 September 2000, Magazine "Society and Law", No. 3
 October 24, 2000, Newspaper "Standard"
 October 24, 2000, Newspaper "Trud" (Labour)
 October 24, 2000, Newspaper "Novinar"
 October 24, 2000, Newspaper "Sega" (Now)
 October 24, 2000, Newspaper "Monitor"
 November 22, 2000, Newspaper "Novinar"
 November 22, 2000, Newspaper "Trud" (Labour)
 November 24, 2000, Newspaper "Novinar"
 December 6, 2000, Newspaper "Novinar"
 December 22, Newspaper "Cash", No. 51
 January 6-12, 2001, Newspaper "Banker", No. 1
 January 13-19, 2001, Newspaper "Capital"
 January 9, 2001, Newspaper "Trud" (Labour)
 January 14, 2001, Newspaper "Trud" (Labour)
 January 16, 2001, Newspaper "Novinar"
 January 16, 2001, Newspaper "Sega" (Now)
 January 16, 2001, Newspaper "24 Chasa" (24 Hours)
 January 18, 2001, Newspaper "Sega" (Now)
 January 18, 2001, Newspaper "Standard"
 January 20-26, 2001, Newspaper "Banker", No. 3
 February 3-9, 2001, Newspaper "Banker", No. 5
 February 17, 2001, Newspaper "Novinar"
 March 14, 2001, Newspaper "Monitor"
 March 14, 2001, Newspaper "24 Chasa" (24 Hours)
 March 14, 2001, Newspaper "Standard"
 March 14, 2001, Newspaper "Trud" (Labour)
 March 14, 2001, Newspaper "Novinar"
 March 14, 2001, Newspaper "Sega" (Now)
 March 16, 2001, Newspaper "24 Chasa" (24 Hours)
 March 16, 2001, Newspaper "Cash", No. 11
 March 17-23, 2001, Newspaper "Capital"
 March 17-23, 2001, Newspaper "Banker", No. 11

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.2 That the Government of Canada has never confirmed to the
Defendant the veracity of any information and data made public by
the Defendant Bulgaria.

.3 That on August 9th 1996, the Defendant Bulgaria was provided by


the Government of Canada a “Note Verbale” [see A as attached
hereto] that reads:

“… [sic] …

The Canadian Embassy would also like to draw to the


attention of the Foreign Ministry an article that was
published in the Bulgarian newspaper Continent on 01
August 1996 which quotes the Chief of the Economic
Crimes department of the National Investigation
Department, Mr. Stefcho Georgiev, as stating that
Michael Kapoustin ‘committed sexual assaults against
minors, according to information received from the
Canadian authorities’. This statement is not
substantiated.

The department of Foreign Affairs and International


Trade of Canada has consulted Canadian and
International police authorities, and confirm there are no
records of this nature in Canada regarding Mr.
Kapoustin.”

[ ] inserted

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.K That Except For The Province No Other Judicial Jurisdiction or Venue Exists.

.I That the Defendant Bulgaria is not a party to any bi-lateral or multi-lateral


treaty with Canada where residents of the Province might litigate the
contractual breaches, commercial disputes, property or personal injury
claims and torts complained of as arising in or connected to the Province.

.L That the Defendant Denies Plaintiff Kapoustin His Right To Attend Hearings.

.I The Defendant Bulgaria refuses to consent to the conduct of Plaintiff


Kapoustin to any trial or hearing in the Province where the government of
Bulgaria is a litigant or adverse party to the Defendant.

.II That the Defendant's national law permits the conduct abroad and
temporary transfer of prisoners to attend trial as witnesses or litigants in
proceedings outside of Bulgaria. The relevant national laws of the
Defendant Bulgaria are Articles 463(2), 464, 465, and 466 of the Criminal
Code of Procedure. That those provisions of law read as follows:

Appearance of Witness and Expert before a Foreign Court.


Article 463
(1) …[Sic]
(2) Extradition of persons detained in custody to be
interrogated as witnesses or experts shall be allowed only
in exceptional cases by discretion of composition of the
respective district court, on the grounds of papers
submitted by the other country, provided the person gives
his consent for extradition, and the stay in the other
country shall not exceed the term of his detention in
custody.
Procedure for Submission of Request to Another Country
Article 464
(1) The request for legal assistance shall contain data about:
the body filing the request; the subject and motive of the
request; full name and citizenship to whom the request
refers; name and address of person to whom papers are
to be submitted; where necessary the indictment and brief
description of the relevant facts.
(2) The request for legal assistance shall be forwarded to the
Ministry of Justice and Legal Euro-Integration, unless
another procedure is provided by international treaty to
which the Republic of Bulgaria is a party.
Execution of Request by Another Country
Article 465

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Requests for legal assistance shall be executed pursuant to
the procedure provided by Bulgaria law. A procedure may also
be executed pursuant to procedure provided by the law of the
other country, should that requested and if it is not
contradictory to the Bulgarian law. The other country shall be
notified of the time and place of the execution of the request,
should that be requested.
Costs for Execution of Request
Article 466
The costs for execution of the request shall be distributed
between the countries in compliance with international treaties
to which the Republic of Bulgaria is a party, or on the basis of
the principle of reciprocity.
.1 That the Defendant Bulgaria is advised that the Plaintiff Kapoustin
is acting pro se.

.2 That the Plaintiff Kapoustin is a ward of the Defendant Bulgaria,


Ministry of Justice, Respondent.

.3 That the Plaintiffs have requested the Defendant provide for the
appearance of the Plaintiff Kapoustin as a witness and litigant to a
hearing or trial date to be fixed by the litigants.

.4 The Defendant is advised that the Plaintiffs are indigent and


unable to afford legal counsel.

.5 The Defendant is advised that the Plaintiff Kapoustin is to


represent himself and other Plaintiffs at any hearings or trial.

.M That Plaintiffs Complaint to the European Court of Human Rights Is Unrelated.

.1 That the Plaintiff Kapoustin has a pending action against the


Defendant Bulgaria under European Court of Human Rights
("ECHR") File No. PN6650/2000.

.2 That the causus of the above-entitled action against the Defendant


is unrelated to the causus before the ECHR.

.3 That the Plaintiffs' human rights action represents one of more


than 700 pending cases before the European Court of Human
Rights, none of which have, as their causus a commercial activity
or a contract or a tort by a Defendant State in the Province or any
other jurisdiction outside Bulgaria.

The documents, the authenticity of which admission is requested are:

.A That the following are true copies of original documents with the Defendant.

Exhibit No 1. December 31st 1991 letter to the Defendant Bulgaria, Academy of


Science.

Exhibit No 2. December 31st 1991 Federal Express waybill No. 400 2783 1425.

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Exhibit No 3. April 29th, 1992 exclusive License Agreement with the Defendant
Bulgaria, Ministry of Health department, National Center of
Infectious and Parasitic Diseases ("NCIPD") [English only text].

Exhibit No 4. June 30th 1993 amendments to the April 29th ,1992 License
Agreement with Defendant Bulgaria.

Exhibit No 5. June 30th 1993 Agreement with representatives of Defendant


Bulgaria, Ministry of Health, Doctors Petrunov, Nenkov and
Shekerdjiiski.

Exhibit No 6. July 1st 1993 $3,000,000 USD assignment of April 29th 1993 license
to LifeChoice International AD.

Exhibit No 7. August 20th 1993 Memorandum of Agreement for purchase and


delivery of Factor-R in the Province with Founders Group and
Assignee, Kelowna, BC..

Exhibit No 8. September 9th 1993 payment of $6,000 USD to the Budget of the
Defendant Bulgaria, for delivery to the Province of 5,000 units of
Factor-R.

Exhibit No 9. November 19th 1993 Irrevocable Letter of Intent with Annax


Ventures, Vancouver, British Columbia for purchase and delivery of
Factor-R in the Province.

Exhibit No 10. November 19th 1993 Memorandum of Agency Agreement with Annax
Ventures, Vancouver, British Columbia.

Exhibit No 11. December 7th 1993 agreement for bottling in Bulgaria with Seagram
Canada, Eastern Region & Africa.

Exhibit No 12. December 20th 1993 Memorandum of Agreement with Silverton


Corp. of Worthington, Ohio or purchase and delivery of Factor-R as
connected to the Province.

Exhibit No 13. December 24th 1993 receipt that Defendant Bulgaria provided for the
$10,400 USD received into its budget for the processing of raw
materials into 8,000 units of finished product Factor-R for the
Province.

Exhibit No 14. January 3rd 1994 Contract No. 1 with Saknavtobi, Georgian State
Oil.

Exhibit No 15. January 13th 1994 Irrevocable Letter of Intent with LifeChoice
Partnership, Vancouver, BC or purchase and delivery of Factor-R in
the Province.

Exhibit No 16. January 13th 1994 Memorandum of Agreement of LifeChoice


Partnership, Vancouver, BC.

Exhibit No 17. January 13th 1994 submission to the Defendant, Ministry of Health,
official Prof. Genka Gencheva, Ph.D., [Bulgaria and English
Transcript].

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Exhibit No 18. January 14th 1994 Memorandum of Agreement of LifeChoice
Partnership, Vancouver, BC and Silverton Corp., Worthington, Ohio.

Exhibit No 19. January 17th 1994 submission to the Defendant Bulgaria, Ministry of
Health.

Exhibit No 20. January 18th 1994 Defendant Bulgaria, Ministry of Health approving
clinical trials for Factor-R.

Exhibit No 21. January 18th 1994 Protocol No. 193 of the Defendant Bulgaria,
Ministry of Health session of the Expert Council of Serums and
Vaccines [Bulgaria and English Transcripts].

Exhibit No 22. April 1st 1994 contract for $475,000 USD with Green Oasis
Environment, Charleston, South Carolina for the delivery of refining
equipment to the Defendant Bulgaria.

Exhibit No 23. April 29th 1994 Distribution Agreement Canpol Investment


Corporation, Woodbridge, Ontario and Novopharm Limited, Canada

Exhibit No 24. May 1st 1994 lease agreement with the Defendant Bulgaria, Ministry
of Health for No. 3 Kraka Rd., Sofia, Bulgaria.

Exhibit No 25. May 1st 1994 lease agreement as endorsed by the Defendant
Bulgaria, Minister of Health Dr. T. Gougalov.

Exhibit No 26. June 2nd, 1994 letter of direction from National Institutes of Health,
Maryland, USA, to the Plaintiffs.

Exhibit No 27. August 1st 1994 Contract for $600,000 USD with Green Oasis
Environment, Charleston, South Carolina or the delivery of refining
equipment to the Defendant Bulgaria.

Exhibit No 28. August 1st 1994 offer by Defendant Bulgaria for analytical
investigation of Plaintiffs product Factor-R.

Exhibit No 29. August 15th 1994 correspondence to Defendant Bulgaria, Minster of


Finance Alexandrov as to investment disclosures made to Ministry
of Finance.

Exhibit No 30. September 21st 1994 contract of the Defendant Bulgaria, Ministry of
Health department of National Center for Infectious and Parasitic
Diseases, Sofia, Bulgaria [English Language Copy] for exclusive
distribution in Bulgaria for its products of Respivax, Urostim and
Dentavax.

Exhibit No 31. September 29th 1994 contract with the Defendant Bulgaria, Ministry
of Health department of National Center of Radiobiology and
Radiation Protection, Sofia, Bulgaria [English Language Copy].

Exhibit No 32. October 4th 1994 notice for the shipping of oil recycling equipment
for the Defendant Bulgaria from Utopia Fabricating Ltd., Pennfield,
NB

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Exhibit No 33. October 31st 1994 correspondence of Plaintiffs to the Defendant
Bulgaria, Minister of Health [English and Bulgaria Text].

Exhibit No 34. November 23rd 1994 letter of the National Institutes of Health
rescheduling AIDS Clinical Drug Development Committee
("ACDDC") presentation by representative of the Defendant Bulgaria
for the Plaintiffs.

Exhibit No 35. January 4th 1995 Plaintiffs agreement with Seagram Canada,
Europe & Africa Division, London, GB.

Exhibit No 36. January 18th 1995 Defendant Bulgaria, Ministry of Health


requirements concerning importation of Factor-R manufactured
abroad.

Exhibit No 37. January 30th 1995 purchase agreement concluded in the Province
for Plaintiffs product "PROTEC" to be manufactured for the Plaintiffs
by the Defendant Bulgaria.

Exhibit No 38. February 7th 1995 Amended Offer to Purchase in the province
6,100,000 common shares of LifeChoice Inc., Utah, USA from Mr.
Lindsey Semple.

Exhibit No 39. February 23rd, 1995 direction of Defendant Bulgaria Minister of


Health to free from import duty and taxes the aforecited AZT.

Exhibit No 40. March 1st 1995 receipt of the Defendant Bulgaria, Ministry of Health
department of Infectious Diseases Hospital of Sofia signed by Dr. K.
Kostov. The document acknowledges receipt from the Plaintiffs of
$217,000 USD in Factor-R and $23,408 USD in AZT for use in
clinical trials conducted by the Defendant.

Exhibit No 41. March 10th 1995 exclusive Trade License Agreement with the
Defendant Bulgaria, Ministry of Health department of National
Center for Infectious and Parasitic Diseases.

Exhibit No 42. March 21st 1995 letter (Ref. No. 47-22-215) of the Defendant
Bulgaria, First Deputy Minister, Prof. P. Uzunov, Ministry of Health to
the Plaintiffs concerning their transfer of the balance of AZT
inventory shipped to Bulgaria. This inventory was provided to the
Defendant Ministry of Health department Infectious Diseases
Hospital of Sofia.

Exhibit No 43. March 23rd 1995 AWB No. 020-6920-3816/01 for 80kg of AZT
shipped to Bulgaria and collected by the Defendant.

Exhibit No 44. May 4th 1995 letter of Mr. Todd Rohling, on behalf of Plaintiff to Mr.
Sasho Russev on behalf of Defendant.

Exhibit No 45. May 4th 1995 receipt of the Defendant, Ministry of Finance,
Bulgarian National Bank, Department for Financial Audit, Inspector
Sasho Russev on delivery of Plaintiffs corporate records.

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Exhibit No 46. May 9th 1995 invoice No. 95024 of the Defendant Bulgaria
evidencing payment to its budget of $ 1,975 USD for delivery to the
Province of 5000 units of Factor-R to the Province.

Exhibit No 47. June 3rd 1995 purchase agreement with M.A.O. Ltd., Tibilisi,
Republic of Georgia.

Exhibit No 48. July 7th 1995 correspondence of codefendant Doornbos to the


Defendant Bulgaria.

Exhibit No 49. July 13th 1995 bank transfer of $72,000 USD to the budget of the
Defendant Bulgaria, BalkanShip, Varna, Bulgaria

Exhibit No 50. July 26th 1995 bank transfer of $23,990 USD to the budget of the
Defendant Bulgaria, Ministry of Health for delivery to the Province of
10,000 units of Factor-R.

Exhibit No 51. August 3rd 1995 invoice No. 95041 of $ 9,875 USD paid to the
budget of the Defendant Bulgaria.

Exhibit No 52. August 14th 1995 complaint to the Defendant Bulgaria of illegal
seizure of property in transit..

Exhibit No 53. October 15th 1995 contract with Shoter Rustavelli Academy of
Theatre.

Exhibit No 54. December 13th 1995 memorandum of Defendant Bulgaria's meeting


in scienter with codefendant Doornbos.

Exhibit No 55. January 31st 1996 Letter of Intent with the Government of the
Republic of Georgia, City of Rustavi for acquisition of recycling and
refining equipment of Plaintiffs.

Exhibit No 56. April 1st 1996 fax of codefendant Doornbos to the Defendant
Bulgaria.

Exhibit No 57. July 3rd 1996 Invoice No. 95034 of $7,900 USD payment to the
budget of the Defendant Bulgaria.

Exhibit No 58. August 9th 1996 Note Verbale Government of Canada.

Exhibit No 59. August 14th 1996 fax of codefendant Doornbos to the Defendant
Bulgaria.

Exhibit No 60. August 23rd 1996 fax of codefendant Doornbos to the Defendant
Bulgaria.

Exhibit No 61. September 12th 1996 extract news article Frankfurter Rundschau,
page 3.

Exhibit No 62. May 23rd 1997 Case Note Government of Canada indicating the July
of 1995 warrants for arrest of Plaintiff Kapoustin.

Exhibit No 63. July 2nd 1997 correspondence of codefendant Doornbos to the


Defendant Bulgaria.
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Exhibit No 64. July 9th 1997 copy of receipt signed in Bulgarian language by
codefendant Doornbos delivering documents from the province and
giving evidence against the Plaintiff Kapoustin.

Exhibit No 65. December 15th 1999 reply Ref. No. 99-H-111/96 of the Defendant
Bulgaria, Ministry of Justice, advising Plaintiffs attorney that the
Defendant Bulgaria never attempted to contact the Plaintiffs directly
or for that matter the Government of Canada.

Exhibit No 66. January 3rd 2000 Affidavit of Attorney Anastasios S. Koimtzidis that
no subpoena was attempted to the Plaintiffs in Greece.

Exhibit No 67. The Law on Foreigners Stay in the Republic of Bulgaria.

Exhibit No 68. The Law on Foreign Investments in the Republic of Bulgaria.

Exhibit No 69. The Sofia City Court commercial register, corporate statistics
showing the par value of LifeChoice International A.D. at
2,000,000,000 (two billion) Bulgarian Leva as of June 16th 1995,
equivalent at the time to $74,000,000 USD investment by Plaintiffs
in the capital stock of the corporation.

Dated ............................................ .....................................................................

Plaintiff
Robert Kap

Tel:......................................312­341­1931

Fax:.....................................312­341­1931

Dated: Thursday, January 04, 2001


________________________
Michael Kapoustin
pro se Plaintiff

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