Peter was already a well-known fashion designer when he was offered employment with a large Adelaide retailer. After some negotiations, Peter agreed to accept the offer on the following terms:

1. Peter would receive an upfront payment of $1.5m to compensate him for giving up his independent status but would have to repay the amount if he resigned from his employment in less than two years.

2. Peter would receive a salary of $250,000 plus a bonus totalling $50,000 if he meets all assigned KPIs.