Hi Dennis….. The Board negotiated the below termination clause with the Management Co. I asked the Mgmt Co specifically about the liquidated damage reference and how it applies to the termination. The Management Company said the term of the agreement is one year. If it is terminated before that, it has been breached and thus the damages. This makes no sense to me. The Association should have the right to terminate a contract without having to pay a hefty fee. The Board negotiated this term so it’s a done deal. I’m guessing if the contract had been sent to the Association’s Attorney the part about us paying liquidated damages to terminate would have been removed. Have you ever come across anything like this? I’m thinking this isn’t enforceable.

Here is the termination clause: Section 3. Termination. Either party may terminate this Agreement for any reason upon sixty (60) days prior written
notice via certified mail. The termination date shall be sixty (60) days after receipt of such notice or a later date
mutually agreed upon by the Parties. Upon termination of this Agreement, Managing Agent shall have no further
obligation or liability to Association or its vendors. Upon termination by Association for any reason, Managing Agent
is entitled to the lesser of the remainder of the then current term of this Agreement of base monthly management
fees described in Section 1, or four months of base monthly management fees described in Section 1, as liquidated
damages. Upon termination by either party, any charges for services performed by Managing Agent under Section 5.7,
which were considered deferred or remain unpaid for any reason, are due and payable immediately upon notice of
termination, and Managing agent is expressly authorized to deduct amount due from Association funds.