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397. Defendants are and have been aware of valid and enforceable contracts between<br />

TexPet and the Republic of Ecuador, including the 1995 Settlement Agreement and the 1998<br />

Final Release. These contracts, in exchange for TexPet's remedial actions, released TexPet,<br />

Texaco, and their employees, successors, principals and subsidiaries from liability relating to<br />

environmental damage in Ecuador.<br />

398. Defendants have intentionally caused and continued to cause the Republic of<br />

Ecuador to repeatedly breach the 1995 Settlement Agreement and the 1998 Final Release.<br />

Defendants have, through improper influence and the fabricated Cabrera Report, persuaded the<br />

Republic of Ecuador to refuse to defend Chevron's rights and those of its subsidiaries under the<br />

contracts, to improperly dictate to the judiciary that Chevron be held liable in the Lago Agrio<br />

Litigation, and to bring criminal charges against Chevron's employees.<br />

399. The judgment from the Lago Agrio court also constitutes a severe and<br />

qualitatively different breach ofthe 1995 Settlement Agreement and the 1998 Final Release.<br />

Defendants have intentionally caused the Republic of Ecuador to take actions necessary to secure<br />

this fraudulent judgment.<br />

400. As a direct, proximate, and foreseeable result of Ecuador's breaches of the 1995<br />

Settlement Agreement and the 1998 Final Release, Chevron has been forced to defend itself<br />

against claims for which TexPet had already secured a release, which has caused significant<br />

pecuniary, reputational, and other damages. These injuries include significant damage to<br />

Chevron's reputation, and attorneys' fees and costs to defend itself and its subsidiaries against<br />

previously released claims in Ecuador, in related litigation to attempt to enforce these contracts<br />

in international arbitration, and in recognition and enforcement efforts around the world.<br />

401. Defendants have engaged in the malicious, willful, and fraudulent commission<br />

of wrongful acts and, because ofthe reprehensible and outrageous nature ofthese acts, Chevron<br />

is entitled to, and should be awarded, punitive damages against each of the Defendants.<br />

402. Chevron is further entitled to, and should be awarded, a preliminary and<br />

permanent injunction that enjoins Defendants, their assignees, and anyone else acting in concert<br />

155

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