Fact Scenario 4 - Income from Personal Services and Employment George is a manager at Wollongong Steel Ltd. His employment contract is for 10 years. In the third year George enters into a restrictive covenant which provides that during the remainder of his contract he must not reveal to another party the confidential information of his employer. He receives $20,000 for entering into this agreement. In the fourth year George's position at the company is made redundant, and his employment terminated. George enters into a new restrictive covenant with Wollongong Steel Ltd which provides that:

a) in return for a payment of $40,000 he agrees not to disclose any trade secrets of his employer to any other person; and (b) in return for a payment of $200,000 he agrees that he will not work for a competitor for a period of 18 months after his employment with the company ends. Required: Are the payments received under the restrictive covenant entered in Year 3 and Year 4 ordinary income in George's hands? Refer to relevant legislation and case law.