Amend SB 885 as follows:
      (1)  Strike SECTION 1 of the bill (House Committee Report,
page 1, lines 3-18) and substitute the following:
      SECTION 1.  Section 15.50, Business & Commerce Code, is
amended to read as follows:
      Sec. 15.50.  CRITERIA FOR ENFORCEABILITY OF COVENANTS NOT TO
COMPETE.  Notwithstanding Section 15.05 of this code, a covenant
not to compete is enforceable if:
            (1)  it is ancillary to or part of an otherwise
enforceable agreement <at the time the agreement is made> to the
extent that it contains limitations as to time, geographical area,
and scope of activity to be restrained that are reasonable and do
not impose a greater restraint than is necessary to protect the
goodwill or other business interest of the promisee; and
            (2)  the consideration for the covenant is bargained
for and not illusory.
      (2)  Add the following appropriately numbered SECTION to the
bill and renumber existing SECTIONS of the bill accordingly:
      SECTION ____.  Subchapter E, Chapter 15, Business & Commerce
Code, is amended by adding Section 15.501 to read as follows:
      Sec. 15.501.  CONSIDERATION RELATING TO COVENANTS NOT TO
COMPETE.  (a)  A covenant not to compete made after commencement of
the underlying agreement must be supported by fair consideration by
an employer other than the continuation of the agreement.
      (b)  The consideration given by the employer in the otherwise
enforceable agreement must give rise to the employer's interest in
restraining an employee who has knowledge of the employer's trade
secrets or confidential proprietary information from competing.
      (c)  The covenant must be designed to enforce the employee's
consideration or return promise not to disclose the trade secrets
or confidential proprietary information in the otherwise
enforceable agreement.
      (d)  In this section, "fair consideration" means a monetary
payment of additional compensation and the provision of new and
valuable confidential information that fairly and reasonably
compensates the employee for accepting the covenant not to compete.
The term does not include the mere continuation of an at-will
employment relationship or its terms.