That seems pretty harsh. We have to let our school know by xmas break and then if we change our minds and decide not to come back for the 11-12 school year, we forfeit our bonus.
The fine is very harsh, never heard of a school being able to do that. Every school I have worked at (4), will let you our of the contract if you give them 90 days notice but you would have to forfit your shipping allowance and the return trip airfare at the end of your present contract.
I agree with you, however the schools should give us some kind of option in February to revisit the decision. But yes, ultimately the references will override everything. The fine is harsh though!