Shrekstivals are festivals held outside of the Rainbow Castle in honor of King Shrek III - a tradition he himself started a while back. The festivities include music acts at the Shrekstival Stage, and small booths selling different wares from foreign cultures.
Pic 01 took place at a Shrekstival, where "MJ & the Difs" played at the Shrekstival Stage, and The Homiesexual, Kemleesha and Tharesa were running a booth selling smoking equipment.
During that particular Shrekstival, Donkey was patrolling around with the Dick Agents, forcing guests to commit to shrexualism, or be killed by hanging. That resulted in the public execution of the Cookie Monster by the Hand of the King, Tyrion Lannister.
When Johal Oddam was approached by Donkey, he was unsure what to reply to the odd threat, and that made the Homiesexual react fast - saving him from the agents by escaping the festival.