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.

3. Peter would be paid a lump sum of $1 million in return for his promise that, if he resigned, he would not set up a business in Adelaide in competition with the retailer for five years.

4. Peter would receive an allowance totalling $100 per week to cover basic travel costs. The company will also give him a company car to be used for business purposes.