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EXHIBIT 1 <br />XVII. <br />BREACH - SANCTIONS <br />If, tlnmugh any cause, SUBRECIPa 1' violates any of the terns and conditions of this <br />Agreement, and/or prior agreements whereby grant funds were received by SUBREC1P1ENT pursuant <br />to this Agreement, or if SUBBREC[P1E.NT reports inaccurately or if any Audit Report makes <br />disallowmices, ST BRECPIENT shall promptly remedy its acts or omissions and/or repay C= all <br />amounts due CITY as a result of SUBICEC1PMNT's violation. For any such failures or violations, <br />CITY shall also have the right at its sole discretion to either: (1) discontinue program supporruntil <br />such time as SUBRECIPTENT fulfills its obligations or remedies all violations of this Agreement or <br />prior agreements; and/or (2) collect outstanding almouuts as determined by CITY due C£1'Y by <br />offsetting or debiting from current claims or invoices, if after thirty (30) Jays' written notice <br />SUBRRCIPIEKT bm failed to repay same or a repayment schedule has not been made, undlor (3) <br />terminate this Agreement by giving written notice to SUBRECIPIENT of such termination in <br />accordance the notice provision in Paragraph XVIII herein below. <br />XVIII. <br />NOTICES <br />All notices, reports and correspondence between the parties hereto respecting this <br />Agreement shall be in writing and deposited in the United States Mail, postage prepaid, addressed as <br />follows: <br />CITY; City of Santa Ana <br />Manager, WDB Administrative Office <br />P.O. Box 1.988 (M-76) <br />Santa Ana, CA 92702 <br />CLERK: Clerk of The City Council <br />City of Santa Ana <br />20 Civic Center Plaza (N1-30) <br />P.O. Box 1988 <br />Santa Ana, CA 92702- [ 988 <br />Telefacsimilc (714) 647-6956 <br />SUBRECIPIENT: Orange County Therapeutic Art Center <br />2215 N. Broadway, Santa Ana, CA 92706 <br />Phone: (714) 547-5468 <br />Fax: (714)564-6990 <br />XIX. <br />MERGER <br />This Agreement, together with the attachments hereto, expresses the total understanding <br />of the parties. There are no oral understandings of the parties or terms and conditions other tban as <br />stated herein. <br />25A-20 Page 15 of17 <br />