Question 1 I. George is manager of Newcastle Steel Ltd. His 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 or use confidential information other than to his employer. It further provides that he must not work for a competitor during the remainder of the employment agreement. Consideration for entering into the agreement is $40,000. Is this capital or income in George's hands? etcons