PARTICIPATING ORGANIZATION AGREEMENT This PARTICIPATING ORGANIZATION AGREEMENT (“Agreement”) is entered into and effective as of May 26, 2015 (“Effective Date”) by and between ART, CULTURE, AND ENTERTAINMENT, INC. (“ACE”) and _______________________ (“Participating Organization”). RECITALS WHEREAS, ACE is the organizer and promoter of the FooFoo Festival (the “Festival”), which will occur in and around Pensacola, Florida, from November 5, 2015, through November 16, 2015; WHEREAS, Participating Organization plans to host an event (the “Event”) as part of the FooFoo Festival, and will receive a grant from ACE towards funding the Event should it meet ACE’s requirements for the grant; WHEREAS, ACE and Participating Organization wish to enter into this Agreement to set forth the terms and conditions on which ACE is willing to award a grant to Participating Organization for use exclusively for the purpose of hosting the Event; WHEREAS, ACE, as owner of all rights (intellectual property and otherwise) in the name “FooFoo Festival” (the “Name”), and the Festival logo (the “Logo”), has agreed to grant to Participating Organization a license to use the Name and Logo set forth on Exhibit A hereto; and NOW THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement and other good and valuable consideration, the parties agree as follows: 1. Recitals. The recitals set forth above are acknowledged as true and correct and are incorporated into the body of this Agreement by reference. 2. Grant Funds/Program Description. (a) Grant. It is ACE’s intent that Participating Organization will receive $_______ from ACE to present and promote its Event in conjunction with the Festival. In order to receive grant funds (“the Grant Funds”), Participating Organization’s proposed and actual use of the Grant Funds must comply with the intent of the grant and meet ACE’s approval. (b) Program Description. At signing, Participating Organization shall provide to ACE a detailed document that outlines how Participating Organization specifically intends to use the Grant Funds (the “Program Description”). The Program Description must include a detailed description of both the Event and how Participating Organization will allocate funds for that Event (Budget). (c) Documentation of Expenditures. No later than 14 days after the receipt of Grant Funds, Participating Organization shall submit to ACE complete and detailed documentation of its expenditures of Grant Funds satisfactory to ACE in order to receive reimbursement under the Grant. This documentation must show all expenses Participating Organization incurred for the Event, and shall be in accordance with the expenses and budget as detailed in the Program Description. Such documentation should include, but is not limited to, all receipts, invoices, and any other evidence of expenditures (i.e., invoices for services from artists and performers, invoices for venue rentals, invoices for equipment rentals, invoices for travel expenses, etc.). (d) Final Report. By November 30, 2015, Participating Organization shall submit to ACE a Final Report of all completed transactions involving Participating Organization’s expenditure of Grant Funds, which shall include copies of cleared checks (not merely images of written checks), bank statements, and/or any other evidence of expenditures, to demonstrate that Participating Organization actually incurred those expenses and made those expenditures. (e) Repayment of Grant Funds. Participating Organization will be required to repay all or part of the Grant Funds to ACE if any of the following occur: (i) Any expenditure of Grant Funds not adequately documented shall be repaid by Participating Organization to ACE; (ii) Should Participating Organization fail to provide a complete, adequate, and timely Final Report by November 30, 2015, Participating Organization will be required to repay the Grant Funds in full to ACE by December 15, 2015; (iii) Any expenditure of Grant Funds that is inconsistent with the purpose of the Festival or the Grant; (iv) Any expenditure of Grant Funds that constitutes a Prohibited Use, as detailed in Section 3 below. 3. Prohibited Uses. Participating Organization shall not use any portion of the Grant Funds granted herein, or any income therefrom: (a) To undertake any activity for any purpose other than a religious, charitable, scientific, literary, educational, or other purpose specified in Internal Revenue Code Section 170(c)(2)(B); (b) To cause any private inurement or improper private benefit to occur, or to take any other action inconsistent with Section 501(c)(3) of the Internal Revenue Code; (c) To make any substantial attempt to influence legislation in any nation or other political unit; 2 (d) To influence in any nation or other political unit the outcome of any election for or against any candidate for public office; (e) To violate any U.S. law including but not limited to laws prohibiting the support of terrorism. (f) Grant funds may not be used to purchase equipment that has a unit cost of $1,000 or more. 4. License. Beginning on the Effective Date and subject to the terms, conditions and restrictions set forth in this Agreement, ACE hereby grants to Participating Organization and Participating Organization hereby accepts, a revocable, royalty-free, non-transferable, nonexclusive right, license and privilege, to use the Name and Logo, solely in connection with the Participating Organization’s advertising and promotion for the Festival (including all advertisements, promotional materials, and products, and reasonable extensions related thereto and thereof). As part of this license and privilege, ACE grants to Participating Organization permission to create an internet or web link to the Festival’s web page on Participating Organization’s web page. For avoidance of doubt, no license to use the ACE Logo is granted to any individual, including, but not limited to employees of Participating Organization for use in their individual capacity. This license may be terminated by ACE in its sole discretion, in which event said termination shall be effective upon Participating Organization’s receipt of written notice from ACE. 5. Use of the Festival Name and Logo. Participating Organization agrees that it: (a) Shall use the Festival Name and Logo (as set forth in Exhibit “A”) only in the manner specified in this Agreement; (b) Shall use the Festival Name and Logo solely in connection with its advertising and promotion for the Festival, and not for any other goods or services; (c) Shall not use any third party trademark or service mark in combination with the Festival Name and Logo such that it creates a unified, composite mark, without the written approval of ACE; (d) Shall not use the Festival Name and Logo in any manner which disparages the Name and Logo, or impairs the validity, scope, title or goodwill of ACE in the Name and Logo; and (e) Shall use the Festival Name and Logo in compliance with all applicable legal requirements. Nothing herein shall prevent the Participating Organization from using the Participating Organization’s house mark (and/or logo) or trade name (or third party mark) in connection with the Name and Logo (but not as a unified, composite mark). 3 6. Intellectual Property. For purposes of this Agreement, the term "Intellectual Property" means all United States and worldwide trademarks, service marks, trade dress, logos, copyrights, rights of authorship, inventions, patents, rights of inventorship, moral rights, rights of publicity and privacy, trade secrets, rights under Unfair Competition and Unfair Trade Practice laws, and all other intellectual and industrial property rights related thereto. All Intellectual Property and related materials developed by ACE, including all trademarks, logos, and company brands, shall remain the sole property of ACE. Any and all advertising, product, and Intellectual Property created by Participating Organization that incorporates ACE’s Intellectual Property shall become the property of ACE. Participating Organization acknowledges that ACE is the owner of ACE’s Intellectual Property (including the Festival Name and Logo), and agrees that Participating Organization will not do anything inconsistent with such ownership, and that all uses of ACE’s Intellectual Property by Participating Organization and all goodwill resulting therefrom shall inure to the benefit of and be on behalf of ACE. Participating Organization agrees that nothing in this Agreement shall give Participating Organization any right, title or interest in ACE’s Intellectual Property, other than the right to use the Intellectual Property as expressly and specifically authorized by ACE. Participating Organization represents and warrants that, with the exception of ACE’s Intellectual Property: (a) it owns all right, title and interest in and to any and all trademarks, logos, company brands, or other Intellectual Property it uses or displays, or provides to ACE to use or display, in connection with the Festival; (b) the use or display by Participating Organization of any and all trademarks, logos, company brands, or other Intellectual Property does not and will not infringe, misappropriate or otherwise violate the intellectual property or other rights of any third party; (c) the use or display by ACE of any and all trademarks, logos, company brands, or other Intellectual Property provided by Participating Organization does not and will not infringe, misappropriate or otherwise violate the intellectual property or other rights of any third party; (d) it is not aware of any asserted, unasserted or threatened claim by any third party with respect to the use of any trademarks, logos, company brands, or other Intellectual Property it uses or displays, or provides to ACE to use or display, in connection with the Festival, and; (e) it has the right to enter into this Agreement, to grant the rights granted hereunder and to perform its obligations hereunder, and that to do so will not violate or conflict with any material term or provision of its articles or bylaws, or of any agreement, instrument, or law to which it is a party or by which it is bound. 7. Indemnification. (a) General Liability. To the fullest extent permitted by applicable law, Participating Organization will indemnify, defend, and hold harmless ACE from and against any and all loss, damage, costs (including, but not limited to, attorneys’ fees, expert fees and expenses, and court costs), or liability resulting from any and all demands, claims, suits, costs, fines, penalties, proceedings, or actions of any kind or character (“Claim”) against ACE caused by, arising out of, or related to any act or omission of Participating Organization (anyone directly or indirectly employed by any of them, or anyone for whose acts any one of them may be liable that is in any way associated with or connected with any obligation of Participating Organization), and regardless of whether such loss, damage, costs, or liability may be caused by or arise out of the 4 joint, concurrent, or contributory negligence of ACE; provided, however, if any Claim is determined to have been caused by the sole negligence of the ACE, then Participating Organization will not be liable under this section. Participating Organization’s indemnity obligation includes, without limitation, court costs, attorneys’ fees, costs of investigation, costs of defense, expert fees and expenses, settlements, and judgments associated with any Claims. At ACE’s sole and absolute discretion, it may retain counsel of its choice to defend any Claim, with all defense costs and fees. (b) Intellectual Property. Participating Organization shall defend, indemnify and hold harmless ACE from and against any and all third party claims and liabilities (including, but not limited to, attorneys’ fees, expert fees and expenses, and court costs), regardless of the form of action, arising out of or in connection with a claim that any trademarks, logos, company brands, or other Intellectual Property displayed or used by Participating Organization, or that it provides to ACE to use or display, in connection with the Festival (other than the ACE Name and Logo as set forth on Exhibit A), infringe, violate, or misappropriate a third party Intellectual Property or proprietary right. At ACE’s sole and absolute discretion, it may retain counsel of its choice to defend any Claim, with all defense costs and fees. Participating Organization also agrees to cure any infringement as soon as possible by either: (a) providing non-infringing logos or images, or; (b) obtaining the necessary permission to use the infringing logos/images (at its own expense). (c) No Limitations. Participating Organization’s indemnification obligations will in no way be limited by any limitation on the amount or type of damages, or by any compensation or benefits payable by or for Participating Organization, under any worker’s compensation act, employer liability act, disability act, or other employee benefit act. Participating Organization will pay any and all attorneys’ fees, expenses, and costs incurred by ACE that relate to the enforcement of Participating Organization’s indemnity requirements and obligations, including, without limitation, the additional insured protection and other obligations of Participating Organization. The indemnification obligations of Participating Organization will be independent of and will not be limited by Participating Organization’s obligations to procure and maintain insurance under Section 12 (Insurance) of the Agreement. 8. Insurance. (a) Insurance Requirements. Participating Organization, at its expense, will procure and maintain in effect, without interruption during the Term, policies of insurance providing, at a minimum, the coverages and limits specified and complying with the other requirements stated below: (i) Commercial General Liability insurance (or equivalent) on an occurrence (not claims made) basis, in an amount not less than $1 million for any one occurrence, including broad form contractual liability coverage, products liability coverage, broad form property damage coverage, and severability of interest for each insured. This insurance must not exclude liability coverage for bodily injury or property damage arising from errors and omissions in the rendering of (or failure to render) professional services. 5 (ii) Business Auto Liability insurance covering any owned, non-owned, and hired vehicles in an amount not less than $1 million combined single limit for bodily injury and property damage for any one occurrence. If the Participating Organization does not have any owned autos Hired & Non-Owned Auto coverage can be provided through an endorsement to the General Liability policy. (b) Subrogation. Participating Organization hereby waives and relinquishes, and if required by the above policies, must require its insurer(s) to issue an endorsement thereto to waive and relinquish, any right of subrogation against ACE they might possess for any policy of insurance required under the Agreement. (c) Additional Insured. Participating Organization agrees to cause its insurer(s) to issue endorsements to name ACE as an additional insured to the Commercial General Liability insurance policy described above with respect to liability arising out of Participating Organization’s Event. (d) Certificates. Participating Organization certifies it has submitted to ACE, certificates of insurance evidencing the coverage prescribed by the Agreement and certifying the amount and nature of such coverage, the expiration date(s) of each applicable policy, and that such policies have been endorsed as required by the Agreement. Participating Organization will furnish to ACE additional information concerning its insurance coverage as ACE may reasonably request. In no event, however, will ACE’s collection and retention of such certificates (or decision not to collect and review such certificates) create any responsibility on the part of ACE to verify the appropriateness and validity of Participating Organization’s insurance, to notify Participating Organization with regard to any matter related to its insurance, or to ensure that the insurance requirements above have been satisfied; nor does such collection and retention create a waiver by ACE of any of its rights in connection with such insurance. All such certificates of insurance will be submitted to ACE at the following address: Art, Culture, and Entertainment, Inc. 6120 Enterprise Drive Pensacola, Florida 32505 (e) Deductibles. To the extent that Participating Organization uses deductibles in conjunction with the insurance required by the Agreement (including self-insurance), all deductible expenses will be assumed and paid by Participating Organization and will be considered as Participating Organization expenses and not part of reimbursable expenses associated with the Agreement, or any indemnification obligation. (f) No Waiver. The obligations for Participating Organization to procure and maintain insurance will not be construed to waive or restrict other obligations of Participating Organization or to limit the liability of Participating Organization whether or not same is covered by insurance. 6 (g) General Requirements. At any time during the Term, ACE may require Participating Organization to obtain and maintain additional insurance with coverage or limits in addition to those above described. Insurance is to be placed with insurers with a Best’s rating of no less than A- VII or equivalent. Participating Organization’s insurance and the insurance of any Representatives must be primary insurance with respect to the Event for ACE. Any insurance or self-insurance maintained by ACE is in excess of Participating Organization’s insurance and will not contribute with it. (h) Participating Organization’s Property. Participating Organization will be solely responsible for and will bear the risk of loss of or damage to any property of Participating Organization and any property for which it is responsible, wherever located, and any insurance provided for such property will be solely at Participating Organization’s expense. 9. Relationship of the Parties. It is mutually understood and agreed that neither party is the agent, employee, or servant of the other. Nothing in the Agreement is intended to create any partnership, joint venture, lease, or equity relationship, expressly or by implication, between the parties. The parties expressly agree that the extent of their relationship consists of ACE providing a grant funding mechanism for Participating Organization to present the Event. Participating Organization agrees that ACE will not exercise any control over the production or performance of the Event, and Participating Organization bears full responsibility for preparations, construction, performance, and all other aspects of the Event. ACE assumes no liability for any incidents or occurrences that take place in connection with the Event, including those which result in bodily injury to attendees of the Event. Participating Organization agrees that ACE bears no responsibility or liability for any of Participating Organization’s acts or omissions in connection with the Event. 10. Entire Agreement. This Agreement contains all of the agreements, representations and understandings of the Parties hereto and supersedes and replaces any and all previous understandings, commitments or agreements, oral or written, related to the subject matter hereof. 11. Amendments, Modifications, and Non-Waiver of Rights. This Agreement shall not be amended, modified, or extended, nor shall any waiver of any right hereunder be effective, unless set forth in a document executed by duly authorized representatives of both parties, specifically referencing the provision of this Agreement to be amended, modified, extended, or waived. The failure of either party to insist upon performance of any provision of this Agreement, or to exercise any right, remedy, or option provided herein, shall not be construed or deemed as a waiver of the right to assert any of the same at any time thereafter. 12. Assignment. This Agreement may not be assigned by either party without the prior written consent of the other party, which consent may be withheld or granted in said party’s sole discretion. Any purported assignment in violation of this clause is void. Such written consent, if given, shall not in any manner relieve the assignor from liability for the performance of this Agreement by its assignee. 7 13. Choice of Law; Venue; Actions. This Agreement and all disputes or controversies arising out of or relating to this Agreement or the transactions contemplated hereby shall be governed by, and construed in accordance with, the internal laws of the State of Florida, without regard to the laws of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of Florida. Any legal action or proceeding arising out of or relating to this Agreement brought by either party or its successors or assigns shall be brought and determined in any Florida state or federal court sitting in the County of Escambia (or, if such court lacks subject matter jurisdiction, in any appropriate Florida state or federal court), and each of the parties hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with regard to any such action or proceeding arising out of or relating to this Agreement and the transactions contemplated hereby. In the event of a default by either party hereto which becomes the subject of litigation, the losing party agrees to pay the reasonable legal fees and costs (taxable or otherwise) of the prevailing party. For purposes of this Section, a party will be considered to be the “prevailing party” if: (a) such party initiated the litigation and substantially obtained the relief which it sought (whether by judgment, voluntary agreement or action of the other party, trial, or alternative dispute resolution process); (b) such party did not initiate the litigation and either (i) received a judgment in its favor, or (ii) did not receive judgment in its favor, but the party receiving the judgment did not substantially obtain the relief which it sought, or (c) the other party to the litigation withdrew its claim or action without having substantially received the relief which it was seeking. The provision of this Section shall survive the termination of this Agreement. 14. Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same original, and the execution of separate counterparts by ACE and Participating Organization shall bind ACE and Participating Organization as if they had each executed the same counterpart. The parties agree that this Agreement shall be deemed validly executed and delivered by a party if a party executes this Agreement and delivers a copy of the executed Agreement to the other party by facsimile or electronic mail. 8 The parties have executed this Agreement as of the Effective Date. ART, CULTURE, AND ENTERTAINMENT, INC. _______________________________ PARTICIPATING ORGANIZATION By: By: Name: David Bear Name: Title: President Title: Date Signed: Date Signed: 9 EXHIBIT A 1. FooFoo Festival (the “Name”) 2. Logo (may be presented in various colors, to be approved by ACE) 10