1E9Ct5D

i. During the Employment ContractDuring the employment contract, the non-competition restriction automatically derivesfrom the general obligations of employees towards their employers provided for by Art.2105 of the Italian Civil Code 71 .ii.After the Termination of the Employment ContractPursuant to Art. 2125 of the Italian Civil Code 72 , after the termination of the employmentcontract, the non-competition covenant is allowed only if the following legalrequirements are met:a) written form;b) specification of the forbidden activity;c) specification of the duration (5 years for executives and 3 years forother categories of employees);d) specification of the limits of territory;e) compensation for the employee.The amount of the compensation is not provided for by the law. However, such amountmust be fair in relation to the activity, the territory, and the duration, with the71 Art. 2105 of the Italian Civil Code (Royal Decree 16 th March 1942, n. 262) provides that «The employeecannot engage in business, either on his own account or on that of third persons, in competition with hisemployer, nor disclose information regarding the organization and methods of production of thecompany, nor use it in such a manner as may be prejudicial to the employer».72 Art. 2125 of the Italian Civil Code (Royal Decree 16 th March 1942, n. 262) provides that «Agreementsaccording to which the employee’s working activities are limited for the time after the termination of thecontract are null and void unless they are in writing, a compensation for the employee is provided for,and the obligation is subject to a pre-established limit of activity, time and place. The length of theobligation cannot be longer than 5 years, in the case of executives, and 3 years in other cases. If alonger period is agreed, it will be reduced to the above mentioned measure».3082723.3