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CITY OF SANTA ANA <br />DONATION AGREEMENT <br />WITH MAGIC INC. ACADEMY OF THE ARTS <br />1. PARTIES AND DATE <br />This Donation Agreement ( "Agreement ") is entered into on SEPTEMBER 6, 2016 by and <br />between the City of Santa Ana, a municipal corporation ( "City ") and MAGIC INC. ACADEMY <br />OF THE ARTS, a California 501(c)3 NON- PROFIT ORGANIZATION ( "Recipient "). City and <br />Recipient are sometimes individually referred to as "Party" and collectively as "Parties" in this <br />Agreement. <br />2. RECITALS <br />2.1 Community Benefit, The City wishes to provide Recipient with funding to assist <br />Recipient in HOSTING A FAMILY DAY COMMUNITY BLOCI{ FESTIVAL ( "Community <br />Benefit "). The Parties wish to enter into this Agreement to establish the terms and conditions under <br />which the City will provide funding, <br />2.2 Public Purpose. The City, by recommendation of COUNCILMEMBER ROMAN <br />REYNA, believes there is a public purpose in supporting the Community Benefit because it will <br />PROMOTE ARTS ADVOCACY AND RAISE ACADEMIC EXPECTATION THROUGH <br />YOUTH EMPOWERMENT TO ACHIEVE LIFELONG SUCCESS THROUGH <br />ENCOURAGING AND PROMOTING THE CREATION, APPRECIATION, AND <br />PARTICIPATION OF THE' ARTS. The foregoing is a general description of the public purpose, <br />and is not necessarily the only public purpose to be gained from the Community Benefit, <br />3. TERNS AND CONDITIONS <br />3.1 Use of Funds. The City has chosen to provide Recipient with a one -time payment of <br />FIVE HUNDRED DOLLARS ($500) for an event that will be held on Saturday, September 24, <br />2016, because the City has determined that there is a public purpose to be served in supporting the <br />Community Benefit. In executing this Agreement and receiving the funds, Recipient agrees to use <br />the funds only for the purpose described and subject to the terms and conditions provided for in this <br />Agreement. Should Recipient fail to use the funds for such purpose or otherwise comply fully with <br />the terns of this Agreement, City shall have the right to terminate this Agreement and demand the <br />return of the funds pursuant to Section 3.2 below. <br />3,2 Term; Termination of Agreement. This Agreement shall take effect on the date first <br />above written and remain in effect through Recipient's full expenditure of the funds. The City has <br />the right to terminate this Agreement upon one day's notice, with or without cause. Should the City <br />terminate this Agreement, it shall also have the right to demand the immediate return of all fiends <br />provided to Recipient pursuant to this Agreement, as well as interest at the rate of ten percent (10 %) <br />per annum. Notwithstanding the foregoing, the indemnification provisions of this Agreement shall <br />survive any expiration or tennination of this Agreement. <br />EXHIBIT 2 <br />25A -5 <br />