Per Curiam.
The contract provided for liquidated damages in the event defendant cancelled the agreement at the end of any yearly period. The provision for liquidated damages did not constitute a penalty. Its effect is to compensate plaintiff for permitting defendant to terminate his contractual obligations ( McCready v. Lindenborn, 172 N.Y. 400; Norris v. McMechen, 135 Misc. 361; Silver Dresses, v. Parker, 73 N.Y.S.2d 704).
The judgment should be modified by increasing the recovery to $430.83, with interest and costs, and as modified affirmed, with $25 costs to plaintiff.
Concur — HECHT, J.P., STEUER and TILZER, JJ.
Judgment modified, etc.