STATE OF UTAH Gary R. HERBERT OFFICE OF THE GoveRNOR SPENCER J. Cox Governor SALT LAKE City, UTAH LIEUTENANT GOVERNOR, e4i14-2220 March 27, 2018 Honorable Gregory H. Hughes Speaker of the House and Honorable Wayne L. Niederhauser President of the Senate Dear Speaker Hughes and President Niedethauser, Today I signed HB 241, Post-Employment Restrictions Amendments. In doing so, 1 recognize that reasonable restrictive covenants contained in employment contracts serve the legitimate purpose of protecting legitimate business interests. I believe HB 241 strengthens Utah’s policy on non-compete agreements by striking a delicate balance between business and employee interests. However, further restrictions on our non-compete policy are not necessary Future attempts to legislate on this issue during my administration will be met with a veto. L recognize the strength that businesses add to our state. I am grateful for those that started or relocated here. They are the foundation of our nation-leading, vibrant economy. I welcome businesses across the globe to come to Utah and enjoy our business-friendly environment; our strong, diverse economy; our exceptional workforce; and our unparalleled quality of life, We must be vigilant to keep government regulation to a minimum so our businesses can thrive and prosper. Sincerely, (a Gary RAterbert Governor