Common use of Termination by Sponsor Clause in Contracts

Termination by Sponsor. If Sponsor desires to cancel this contract it may request to do so only by giving notice thereof in writing to NAMM, with evidence of receipt. In that case, Sponsor will continue to be liable for all fees governed by this contract and the dates payments are due, which apply regardless of the date on which this contract is executed. This amount is considered to be the liquidated and agreed upon damages that NAMM will suffer as a result of Sponsor’s cancellation. This provision for liquidated and agreed upon damages is not a penalty. The withdrawal of reserved sponsorship from availability at a time when others would be interested in applying for it will cause NAMM to sustain substantial damages that may not be determined with mathematical precision. Therefore, the provisions for liquidated and agreed upon damages have been incorporated into this contract as a valid pre-estimate of these damages. The date of cancellation shall be the date NAMM receives the notice.