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No it is perfectly acceptable to use "First Annual". Anniversary requires a first instance in order to exist as an anniversary. Annual however is an adjective that simply describes the rate at which something occurs. There is no starting or stopping point required, just as there is no minimum decibel level required for something in order to be described as 'loud'. First Annual are two adjectives that can be attached to whatever noun you please.

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Q: Is it improper to use First Annual Name of event?
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