TOY 2.0 CHALLENGE OFFICIAL RULES NO PAYMENT OF ANY MONEY IS NECESSARY TO ENTER THE CONTEST. THE CONTEST IS VOID WHERE PROHIBITED BY LAW OR WHERE REGISTRATION OR BONDING IS REQUIRED. THIS CONTEST IS SUBJECT TO ALL FEDERAL, STATE AND LOCAL LAWS. ONLINE ENTRY ONLY AND INTERNET CONNECTION REQUIRED. These are the official rules (“Rules”) that govern your participation in the Toy 2.0 Challenge (“Contest”). By submitting a sign-up form to participate in the Contest in accordance with Section 6(a), you fully and unconditionally accept these Rules, which constitute a binding agreement among you, the CoSponsors (defined in Section 2 below) and one of your parents or legal guardians (“Legal Representatives”). Accordingly, it is important for you to read and understand these Rules prior to you participating in the Contest. In addition, please also note these Rules include a mandatory arbitration provision and a waiver of class action lawsuits. 1. Description. The Contest is designed to solicit ideas and recognize the best proposal for creating a new children’s toy that IFI (defined in Section 2 below) may choose to manufacture and bring to market in its sole discretion. The Contest’s intent and spirit is to stimulate creativity and innovation among program participants to help produce a popular children’s toy. 2. Sponsors. The Contest is co-sponsored by Innovation First International, Inc., a Texas corporation with offices at 1519 Interstate 30 West, Greenville, TX 75402 (“IFI”), and KID Museum, Inc., a Maryland notfor-profit corporation with offices at 6400 Democracy Boulevard, Bethesda, MD 20817 (“KID Museum,” together with IFI, the “Co-Sponsors”). Questions regarding the Contest may be sent to [email protected]. 3. Eligibility. To be eligible for the Contest, you must be (a) between ten (10) and eighteen (18) years old; (b) a legal resident of Maryland, Virginia, Delaware, Pennsylvania or Washington, D.C.; (c) willing and able to attend Maker Faire Silver Spring (“Faire”) in September 2015 at your sole cost; and (d) willing to sign and submit to KID Museum an Invention Assignment that assigns to IFI your intellectual property rights in and to your toy design idea on the terms more fully described therein (“Invention Assignment”) prior to your participation in the Contest. 4. Legal Representative; Representations. You may participate in the Contest only if you have obtained the permission of your Legal Representative. By submitting a sign-up form, you represent that your Legal Representative (a) has fully reviewed these Rules; (b) consents to your participation in the Contest; and (c) agrees to guarantee your full and continued compliance with these Rules. These Rules will remain enforceable against your Legal Representative even if these Rules are held by a court of competent jurisdiction to be unenforceable against you for any reason. 5. Contest Period. This Contest begins at 9:00 am EST on April 25, 2015, and ends at 5:00 pm EST on October 31, 2015 (“Contest Period”). You must submit all Proposals (defined in Section 7 below) by the end of the Contest Period. KID Museum may extend the Contest Period in its sole discretion, and will provide notice of any extension on its website located at http://kid-museum.org/toy-2-0/ (“Contest Site”). Late entries will be disqualified, and KID Museum will determine the timing of all entries in its sole discretion. The Contest is purely skill-based. Accordingly, your odds of winning the Contest depend upon the number and quality of eligible entries received by KID Museum during the Contest Period. 6. Entry Instructions. (a) Sign-up Form. To enter the Contest, you must complete a sign-up form located on the Contest Site during the Contest Period. The sign-up form requires your (a) name, address, date of birth, email address, phone number and your school name, and (b) your Legal Representative’s name, email address and phone number. If you are participating in the Contest as part of a team, then you must also include on your sign-up form the (a) names, (b) email addresses, and (c) mailing addresses for each member of your team. You will be required to accept these Rules by clicking a button or box on the submission form that expressly indicates that you agree to be bound by these Rules. All information you include on the sign-up form must be true, accurate, current and complete. (b) Invention Assignment. To enter the Contest, you also must submit to KID Museum a signed Invention Assignment prior to your participation in the Contest. KID Museum may provide you with the option to submit the Invention Assignment in hard copy or electronically during the registration process. If you are under the age of 18, then your Legal Representative also must execute your Invention Assignment as further described in Section 6(c) below. (c) Verifiable Acceptance and Consent of Legal Representative. After you submit your sign-up form, KID Museum will send an email to your Legal Representative. This email will require your Legal Representative to click a button or box indicating that he or she unconditionally (a) agrees to be bound by these Rules, and (b) consents to your participation in the Contest (“Verifiable Acceptance and Consent”). Your Legal Representative will also be required to sign your Invention Assignment (either by executing the same document that you sign or by executing a counterpart to such document) if you are under the age of eighteen (18). Once KID Museum receives (a) the Verifiable Acceptance and Consent and (b) your fully executed Invention Assignment as required by these Rules, you will be deemed a Contest participant. (d) Individual or Team Participation. You may enter the Contest as an individual or as part of a team. Teams may have no more than five (5) members. Each team is solely responsible for its own cooperation and teamwork. The Co-Sponsors will have no liability for disputes among team members. In the event that any such dispute cannot be resolved and affects the Contest, KID Museum may disqualify teams and/or team members in its sole discretion. (e) Number of Proposals. There is no limit to the number of Proposals that you may submit to participate in the Contest during the submission phase more fully described in Section 8(c)(i) below. You may participate in the contest both individually and as a member of a team. When doing so, you cannot use any of the same materials, ideas or concepts for your individual and team Proposals. You may not participate in the Contest on more than one (1) team. (f) Your Identity. If there is a dispute as to your identity, then we will consider you to be the authorized account holder of the email you provide in the sign-up form. KID Museum has the right to require proof of your identity. 7. Initial Proposals. After submitting a sign-up form, during the Contest Period you must submit one or more initial proposals (each, a “Proposal,” and collectively, “Proposals”) that consists of (a) a concept statement of no more than two hundred fifty (250) words which describes in detail your toy design idea; and (b) up to a total of five (5) supporting photographs, drawings, audiovisual works, documents or other tangible materials that help illustrate your toy design idea. In addition, each Proposal must satisfy the following criteria: (a) It must be original, exclusively created and owned by you and your team, as applicable, and you must have all rights necessary to submit the Proposal to KID Museum. It is solely your responsibility to ensure that all of your Proposals do not violate any third-party rights; (b) It must be submitted through the submission form that will be accessible on the Contest Site; -2- (c) It must not previously have been publicly available; (d) It may not contain images of any person unless you have obtained that person’s (or that person’s parent or guardian, if that person is a minor) consent; and (e) It may not contain material that is obscene, defamatory, libelous, threatening, pornographic, racially or ethnically offensive, malicious, harmful, illegal, vulgar, inappropriate, encourages conduct that would be considered a criminal offense, give rise to civil liability, violate any law, or that presents the Co-Sponsors in a negative light. Entries must be appropriate for viewing by the general public. Appropriateness will be determined by KID Museum in its sole discretion. KID Museum may disqualify, in its sole discretion, any Proposal that it believes is incomplete, ineligible or not decipherable. KID Museum will not be liable to you in any way for any Proposal that it does not receive due to any technical error or any other reason. 8. Contest Overview. (a) Judges. During each phase of the Contest described below, you acknowledge that each judge (a) may not be an expert in the field of children’s toys, and (b) therefore will use his or her best judgment in evaluating all Proposals. In addition, during each phase of the Contest, the judges will be composed of one (1) authorized representative of IFI (“Consultant”) and one or more non-IFI affiliated judges (“Judges,” together with the Consultant, the “Contest Judges”). (b) Criteria and Scoring Process. (i) Judges. During each phase of the Contest, the Judges will evaluate all Proposals based on the following equally weighted criterion: (a) originality; and (b) elegance of design. The Judges will rank each criterion on a scale of one (1) to ten (10), and your score from the Judges will be the sum of these two (2) rankings. (ii) Consultant. During each phase of the Contest, the Consultant will evaluate all Proposals based on the following equally weighted criterion: (a) originality; (b) elegance of design; and (c) marketability (which includes the cost of manufacturing the design and its potential retail price). The Consultant will rank each criterion on a scale of one (1) to ten (10), and your score from the Consultant will be the sum of these three (3) rankings. (iii) Final Score. During each phase of the Contest, the final score for each Proposal will be the sum of the scores from the Judges and the Consultant. If your or your team’s score is the same as any other participant or team’s score, then the Contest Judges will compare your or your team’s Proposal(s) to the Proposal(s) of such other participant(s) on a head-to-head basis by applying the criteria and through the scoring process described above in Sections 8(b)(i)-(ii). The Proposal with the most head-to-head wins will be deemed the winner. The Contest Judges will repeat this process until the required number of winners have been selected. (c) Contest Phases. (i) Submission Phase. During this phase, all Proposals will be reviewed by between two (2) and four (4) Contest Judges determined by KID Museum in its sole discretion based on the total number of Proposals submitted to KID Museum. The top ten (10) scoring Proposals will advance to the prototyping phase (“Semifinalists”). -3- (ii) Prototyping Phase. During this phase, KID Museum will host a series of mentoring sessions to help Semifinalists refine their Proposals, test user experiences and prototype final designs. In September of 2015, the Semifinalists will present their concepts at the Faire to a panel of five (5) Contest Judges. The three (3) top scoring Proposals during the prototyping phase will advance to the finals (“Finalists”). (iii) Finals. During this phase, the Finalists will present to the Consultant and the Chief Executive Officer of KID Museum. The top scoring Proposal will be selected as the winner of the Contest. 9. Winners. (a) Commercialization of Proposal. There will be one (1) winner, or winning team, as applicable. If IFI chooses to manufacture and bring to market the winning Proposal, then IFI will pay the winner, or each member on the winning team, as applicable, the amounts set forth in the Invention Assignment. IFI may also choose in its sole discretion to manufacture and bring to market one or more non-winning Proposals. Under these circumstances, IFI will pay the applicable participant(s) the amounts set forth in the Invention Assignment. IFI may provide attribution for any participant whose Proposal is manufactured and brought to market in its sole discretion. (b) Prizes. Cash prizes will also be awarded to the Finalists as follows: (a) $3,000 for first place; (b) $1,000 for second place; and (c) $500 for third place. 10. Conditions of Participation. By signing-up for the Contest, you and your Legal Representative agree to abide by these Rules and any decision that KID Museum makes in its sole discretion regarding the Contest. KID Museum reserves the right to disqualify and seek any available legal or equitable remedies against any participant or winner (and/or any such party’s Legal Representative) who, in KID Museum’s reasonable suspicion, tampers with the Contest Site, the Proposal submission process, violates these rules, or acts in an unsportsmanlike or disruptive manner. 11. Intellectual Property. Any of your pre-existing intellectual property that is integrated into your toy design idea will become the sole and exclusive property of IFI through the process set forth in Section 3(d) above. You warrant that all of your Proposals and other materials and information you provide to KID Museum do not and will not violate or infringe upon the patents, copyrights, trademarks, trade secrets, rights of privacy, publicity, moral rights or other intellectual property or other rights of any person or entity, and do not and will not violate any laws, rules or regulations. You agree that you will not integrate into any of your Proposals or otherwise use in connection with the Contest any information or materials, or any intellectual property rights related thereto, owned by any other person or entity. You warrant that none of your Proposals contain any information considered by any third party to be confidential. You agree that KID Museum has the right to verify the ownership and originality of all Proposals and that, upon KID Museum’s request, you must submit a written copy of any release or permission you have received from any third party granting you the right to use such property. You understand and acknowledge that in the event one of your Proposals is selected as the winning entry, and your ownership, rights and the originality of this Proposal cannot be verified to the satisfaction of KID Museum, KID Museum may select an alternate winner from the remaining two (2) Finalists by reapplying the Criteria. 12. Disclaimer, Release and Limit of Liability. THE CO-SPONSORS MAKE NO REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, REGARDING THE CONTEST OR ANY ASPECT OF YOUR PARTICIPATION IN THE CONTEST. BY ENTERING THE CONTEST, YOU AND YOUR LEGAL REPRESENTATIVE (ACTING ON YOUR BEHALF) AGREE TO RELEASE AND HOLD HARMLESS (a) THE CO-SPONSORS, (b) THEIR RESPECTIVE AFFILIATES, (c) THE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS OF THE CO-SPONSORS AND THEIR RESPECTIVE AFFILIATES, AND (d) ANY PARTY THAT PROVIDES ANY GOODS OR SERVICES TO THE CO-SPONSORS IN CONNECTION WITH THE CONTEST (COLLECTIVELY, THE -4- “RELEASED PARTIES”) FROM AND AGAINST ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF PARTICIPATION IN THE CONTEST, INCLUDING, WITHOUT LIMITATION, ANY CLAIMS OR CAUSES OF ACTION RELATING TO PERSONAL INJURY, DAMAGE TO PERSONAL PROPERTY OR INTELLECTUAL PROPERTY OWNERSHIP OR INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, THE RELEASED PARTIES ARE NOT RESPONSIBLE FOR ANY: (1) INCORRECT OR INACCURATE INFORMATION, WHETHER CAUSED BY YOU OR THE ERRORS OF ANY PERSON OR EQUIPMENT ASSOCIATED WITH OR UTILIZED IN THE CONTEST; (2) TECHNICAL FAILURES OF ANY KIND THAT AFFECT YOUR PARTICIPATION IN THE CONTEST, INCLUDING, BUT NOT LIMITED TO MALFUNCTIONS, INTERRUPTIONS, OR DISCONNECTIONS IN PHONE LINES OR NETWORK HARDWARE OR SOFTWARE THAT INTERFERE WITH YOUR ABILITY TO SUBMIT ANY PROPOSAL; (3) UNAUTHORIZED ACTIONS BY ANY PARTICIPANT OR EMPLOYEE OF THE CO-SPONSORS THAT MAY AFFECT YOUR PARTICIPATION IN THE CONTEST; (4) TECHNICAL OR HUMAN ERROR WHICH MAY OCCUR IN THE ADMINISTRATION OF THE CONTEST OR THE PROCESSING OF ANY PROPOSAL; OR (5) INJURY OR DAMAGE TO YOU OR YOUR PROPERTY WHICH MAY BE CAUSED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, FROM YOUR PARTICIPATION IN THE CONTEST. YOU FURTHER ACKNOWLEDGE THAT NOTWITHSTANDING SELECTION AS A WINNER, NOTHING HEREIN SHALL OBLIGATE IFI TO MANUFACTURE AND DISTRIBUTE ANY WINNING OR OTHER PROPOSAL. 13. Indemnity. You and your Legal Representative (acting on your behalf) also agree to release, indemnify and hold harmless the Released Parties from and against, and accept all responsibility of any kind for any liability, claims, losses, damages or proceedings, and reasonable attorneys’ fees, relating to any actions taken by you (or anyone else using your email or team password, as applicable), or otherwise purporting to act on your behalf in regard to the Contest, whether such use occurred with or without your knowledge or permission. 14. Privacy and Use of Personal Information. KID Museum collects personal information from you when you enter this Contest. KID Museum reserves the right to use any such information in accordance with its Privacy Policy located at http://kid-museum.org/wp-content/uploads/2015/04/Kid-Museum-Inc.-PrivacyPolicy.pdf. 15. Dispute Resolution. These Rules and the contest are governed solely by the laws of the state of Maryland and the United States, and the forum and venue for any dispute arising out of these Rules will be exclusively in the county of Montgomery, Maryland. If the applicable controversy or claim is not resolved through direct discussions or mediation, then it must then be resolved by final and binding arbitration administered by Judicial Arbitration and Mediation Services, Inc., in accordance with its streamlined arbitration rules and procedures or subsequent versions thereof (“Jams Rules”). The Jams Rules for selection of an arbitrator will be followed, except that the arbitrator will be experienced and licensed to practice law in the State of Maryland. Any such controversy or claim will be arbitrated on an individual basis, and will not be consolidated in any arbitration with any claim or controversy of any other party. Accordingly, you and your Legal Representative (acting on your behalf) agree to give up your right to serve as a representative, as a private attorney general, or in any other representative capacity, or to participate as a member of a class of claimants, in any lawsuit involving any dispute arising hereunder. All proceedings brought pursuant to this paragraph will be conducted in the county of Montgomery, Maryland. The remedy for any claim will be limited to actual damages, and in no event will any party be entitled to recover punitive, exemplary, consequential, or incidental damages, including attorney’s fees or other such related costs of bringing a claim, or to rescind this agreement or seek injunctive or any other equitable relief. 16. Winner List. KID Museum will post on the Contest Site the winner, or winning team, as applicable, within thirty (30) days after the Contest is completed, and you hereby consent to our publication of your name, town of residence and the school you attend if you are a winner or a member of a winning team. -5- 17. Unexpected Events. If you or another participant cheats, or a virus, bug, bot, catastrophic event, or any other unforeseen or unexpected action or event affects the fairness and/or integrity of the Contest, then KID Museum reserves the right in its sole discretion to cancel, change, or suspend the Contest. If you or your team attempts to compromise the integrity or the legitimate operation of the Contest, or if KID Museum has reason to believe that you or your team has compromised the integrity or the legitimate operation of the Contest, including by cheating or committing fraud in any way, then KID Museum may seek damages from you to the fullest extent permitted by law. Further, KID Museum may disqualify you, and ban you from participating in any of its future contests and promotions. 18. Modification. KID Museum may in its sole discretion revise these Rules at any time by posting an updated version on the Contest Site. You and your Legal Representative should visit this page periodically to review the most current Rules, because you both are bound by them. Your continued participation in the Contest after a change to these Rules constitutes your and your Legal Representative’s unqualified and binding acceptance of such Rules. -6-
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