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In any case, the non-compete clause has to comply with the provisions of the applicableCollective Bargaining Agreement 78 (CBA) If the non-competition fails in meeting one ofthe above conditions, the non-competition clause would be null and void. Theemployee would be allowed to compete with the company unless such competition isdisloyal.If an employee complies with a non-compete clause that does not comply with theabove conditions, the Company would be ordered to pay damages to the employee.At the termination of the employment contract, the Company is allowed to release theemployee from the non-compete obligation, if such withdrawal right is provided for bythe employment contract or the applicable collective bargaining agreement.78 Under French law, an industry-wide CBA applicable to a company is determined in consideration of itsmain activity (e.g. main turnover or highest number of employees). As soon as the main activity of acompany is covered by the scope of application of an extended industry-wide CBA, the latterautomatically, compulsorily and immediately applies to the said company, without any delay. Inaddition, the application of a CBA is mandatory when the employer is a member of an employer’sorganisation which is a party to such an agreement.3082723.3

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