**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+----+------------------------------+
| In the Matter of                 | *  | File No. EB- EB-07-IH-5165   |
|                                  | *) |                              |
| **6 JOHNSON ROAD LICENSES,       | ** | Account No. 200932080030     |
| INC.**                           |    |                              |
|                                  | *  | FRN No. 0005827969           |
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**ORDER**

**Adopted: March 9, 2009** **Released: March 9, 2009**

By the Chief, Enforcement Bureau:

1\. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and 6 Johnson Road Licenses,
Inc., controlled by Pamal Broadcasting Ltd. (collectively, "6 Johnson
Road"). The Consent Decree terminates the investigation initiated by the
Bureau against 6 Johnson Road for possible violations of Sections 317
and 507 of the Communications Act of 1934, as amended (the "Act"),[^1]
and Section 73.1212 of the Commission's rules regarding sponsorship
identification.[^2]

2\. The Bureau and 6 Johnson Road have negotiated the terms of a Consent
Decree that resolve this matter. A copy of the Consent Decree is
attached hereto and incorporated by reference.

3\. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the investigation.

4\. In the absence of material new evidence relating to this matter, we
conclude that our investigation raises no substantial or material
questions of fact as to whether 6 Johnson Road possesses the basic
qualifications, including those related to character, to hold or obtain
any Commission license or authorization.

5\. Accordingly, **IT IS ORDERED** that, pursuant to Section 4(i) of the
Communications Act of 1934, as amended,[^3] and Sections 0.111 and 0.311
of the Commission's Rules,[^4] the Consent Decree attached to this Order
**IS ADOPTED**.

7.  **IT IS FURTHER ORDERED** that the above-captioned investigation
    **IS TERMINATED**.

8.  **IT IS FURTHER ORDERED** that all third-party complaints against 6
    Johnson Road before the Commission related to the
    above-captioned-investigation as of the date of this Consent Decree
    **ARE DISMISSED**.

9.  **IT IS FURTHER ORDERED** that a copy of this Order and Consent
    Decree shall be sent by first class certified mail, return receipt
    requested, to Lawrence M. Miller**,** Schwartz, Woods & Miller,
    Suite 610, The Lion Building, 1233 20th Street, N.W.,\
    Washington, D.C. 20036-7322.

FEDERAL COMMUNICATIONS COMMISSION

Kris Anne Monteith

Chief, Enforcement Bureau

**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+----+------------------------------+
| In the Matter of                 | *  | File No. EB- EB-07-IH-5165   |
|                                  | *) |                              |
| **6 JOHNSON ROAD LICENSES,       | ** | Account No. 200932080030     |
| INC.**                           |    |                              |
|                                  | *  | FRN No. 0005827969           |
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+----------------------------------+----+------------------------------+

#  {#section .unnumbered}

# **[CONSENT DECREE]{.underline}** {#consent-decree .unnumbered}

# The Enforcement Bureau ("Bureau") and 6 Johnson Road Licenses, Inc. (the "*Company*"), hereby enter into this Consent Decree for the purpose of resolving and terminating certain investigations currently being conducted by, or pending before, the Commission relating to compliance with the Sponsorship Identification Laws, as defined below, by Company Stations.

# For purposes of this Consent Decree the following definitions shall apply:

## (a) "*Act*" means the Communications Act of 1934, as amended, 47 U.S.C. § 151 *et seq.*; {#a-act-means-the-communications-act-of-1934-as-amended-47-u.s.c.-151-et-seq. .unnumbered}

## (b) "*Adopting Order*" means an order of the FCC adopting this Consent Decree, without any modifications adverse to Company or any Company Station; {#b-adopting-order-means-an-order-of-the-fcc-adopting-this-consent-decree-without-any-modifications-adverse-to-company-or-any-company-station .unnumbered}

## (c) "*Bureau*" means the FCC's Enforcement Bureau; {#c-bureau-means-the-fccs-enforcement-bureau .unnumbered}

## (d) "*Business Reforms*" means the Company-wide conduct and activities described in [Attachment B]{.underline} to this Consent Decree; {#d-business-reforms-means-the-company-wide-conduct-and-activities-described-in-attachment-b-to-this-consent-decree .unnumbered}

> \(e\) "*Company Station*" and "*Company Stations*" means one or more
> broadcast stations licensed to Company pursuant to authorizations
> issued by the FCC;

## (f) "*Commission*" or "*FCC*" means the Federal Communications Commission or its staff acting on delegated authority; {#f-commission-or-fcc-means-the-federal-communications-commission-or-its-staff-acting-on-delegated-authority .unnumbered}

## (g) "*Complaints*" means third-party complaints, if any, that may have been received by, or may be in the possession of, the Commission or the Bureau alleging violations of the Sponsorship Identification Laws by Company, by a Company Station or by any Company employee prior to the effective date of the Adopting Order;  {#g-complaints-means-third-party-complaints-if-any-that-may-have-been-received-by-or-may-be-in-the-possession-of-the-commission-or-the-bureau-alleging-violations-of-the-sponsorship-identification-laws-by-company-by-a-company-station-or-by-any-company-employee-prior-to-the-effective-date-of-the-adopting-order .unnumbered}

## (h) "*Compliance Plan*" means that Company-wide program described in [Attachment A]{.underline} to this Consent Decree; {#h-compliance-plan-means-that-company-wide-program-described-in-attachment-a-to-this-consent-decree .unnumbered}

## (i) "*Effective Date*" means the date on which the FCC releases the Adopting Order; {#i-effective-date-means-the-date-on-which-the-fcc-releases-the-adopting-order .unnumbered}

## (j) "*Final Order*" means the status of the Adopting Order after the period for administrative and judicial review has lapsed;  {#j-final-order-means-the-status-of-the-adopting-order-after-the-period-for-administrative-and-judicial-review-has-lapsed .unnumbered}

> \(k\) "*I**nvestigations*" means any investigation of alleged
> violations of the Sponsorship Identification Laws by Company, any
> Company Station, or any Company employee;

## (l) "*Parties*" means Company and the Bureau;  {#l-parties-means-company-and-the-bureau .unnumbered}

## (m) "*Rules*" means the Commission's regulations found in Title 47 of the Code of Federal Regulations; and  {#m-rules-means-the-commissions-regulations-found-in-title-47-of-the-code-of-federal-regulations-and .unnumbered}

## (n) "*Sponsorship Identification Laws*" means, individually or collectively, 47 U.S.C. § 317, 47 U.S.C. § 508, 47 C.F.R. § 73.1212, and/or any Commission policy relating to sponsorship identification or the practices commonly referred to as "payola" or "plugola." {#n-sponsorship-identification-laws-means-individually-or-collectively-47-u.s.c.-317-47-u.s.c.-508-47-c.f.r.-73.1212-andor-any-commission-policy-relating-to-sponsorship-identification-or-the-practices-commonly-referred-to-as-payola-or-plugola. .unnumbered}

I. BACKGROUND

3\. The Bureau and Company acknowledge that any proceedings that might
result from the Investigations and/or the Complaints would be
time-consuming and would require substantial expenditure of public and
private resources.

4\. In order to conserve such resources, to insure continued compliance
by Company with the Sponsorship Identification Laws, and to effectuate
business reforms in the broadcasting and music industry, the Bureau and
Company are entering into this Consent Decree in consideration of the
mutual commitments made herein.

II\. AGREEMENT

# The Parties agree that the provisions of this Consent Decree shall be subject to approval by the Bureau by incorporation of such provisions by reference in an Adopting Order.

# The Parties agree that this Consent Decree shall become effective on the date on which the Bureau releases the Adopting Order. Upon release, the Adopting Order and this Consent Decree shall have the same force and effect as any other orders of the Commission and any violation of the terms of this Consent Decree shall constitute a violation of a Commission order, entitling the Commission to exercise any rights and remedies attendant to the enforcement of a Commission order.

# Company agrees that the Bureau has jurisdiction over the matters contained in this Consent Decree and the authority to enter into and adopt this Consent Decree. 

# As part of the Adopting Order, the Bureau shall terminate all Investigations and shall dismiss the Complaints with prejudice. From and after the Effective Date, the Bureau shall not, either on its own motion, in response to any petition to deny or other third-party complaint or objection, or in response to any request from any other federal, state, or local agency, initiate any inquiries, investigations, forfeiture proceedings, hearings, or other sanctions or actions against Company or any Company Station, with respect to any pending or future application to which Company is a party (including, without limitation, any application for a new station, for renewal of license, for assignment of license, or for transfer of control), or any Company officer, director, or employee, based in whole or in part on (i) the Investigations; (ii) the Complaints, (iii) any other similar investigations or complaints alleging a violation by Company, any Company Station, or any current or former Company employee of the Sponsorship Identification Laws occurring prior to the Effective Date, (iv) the allegations contained in any of the foregoing, (v) the underlying facts or conduct that relate to any of the foregoing, or (vi) any act or omission of Company or any Company employee occurring prior to the Effective Date and relating to any of the foregoing. Without limitation to the foregoing, the FCC (a) shall not use the facts of this Consent Decree, the Investigations, the Complaints, any other similar complaints alleging violation by any Company Station of the Sponsorship Identification Laws with respect to any broadcast occurring prior to the Effective Date, or the underlying facts, behavior, or broadcasts that relate to any of the foregoing, for any purpose relating to Company, any Company Station, or any Company employee, (b) shall not on its own motion provide any information within its possession in connection with any of the foregoing to any other federal, state, or local agency, or request any such agency to investigate or pursue enforcement action with respect thereto, and (c) shall treat all such matters as null and void for all purposes. 

# Company has had in place policies and procedures to deter employees from engaging in conduct that violates the Sponsorship Identification Laws, but is willing to adopt a new plan in an effort to enhance the effectiveness of Company's efforts. Accordingly, Company is in the process of implementing, new, more expansive, Company-wide Business Reforms and a Compliance Plan designed to help insure that the conduct and broadcasts by Company, Company Stations, and its employees will not violate the Sponsorship Identification Laws. Summaries of the Compliance Plan and the Business Reforms are set forth in Attachments A and B hereto, respectively. Company agrees to implement the Business Reforms and the Compliance Plan within 60 days of the Effective Date and to keep such Business Reforms and Compliance Plan in effect for three (3) years after the Effective Date. In the event that Company wishes to revise any material aspect of the Business Reforms or the Compliance Plan, Company will provide the Bureau advance written notice of the proposed changes. Company may implement such changes if the Bureau does not object to them within 30 days of their submission by Company. 

# Company will make a voluntary contribution to the United States Treasury in the amount of Fifty Thousand Dollars (\$50,000), in two installments of Twenty Five Thousand Dollars (\$25,000), payable as follows: Twenty Five Thousand Dollars (\$25,000) on or before April 1, 2009, and payment of the balance of Twenty Five Thousand Dollars, on or before July 1, 2009. Company will make this contribution without further protest or recourse, by check or similar instrument, payable to the order of the Federal Communications Commission, payable as follows: Payment by check or money order may be mailed to Federal Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000. Payment by overnight mail may be sent to U.S. Bank -- Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101. Payments by wire transfer may be made to ABA Number 021030004, receiving bank TREAS/NYC, and account number 27000001. For payment by credit card, an FCC Form 159 (Remittance Advice) must be submitted.  When completing the FCC Form 159, enter the Account Number in block number 23A (call sign/other ID), and enter the letters "FORF" in block number 24A (payment type code). Company will also send an electronic notification on the date each said payment is made to: Hillary S. DeNigro (Hillary.Denigro@fcc.gov), Ben Bartolome (Ben.Bartolome@fcc.gov), and Anjali Singh (Anjali.Singh@fcc.gov). The payment should reference Acct. No. 200932080030 and FRN \# 0003452216.

# Company waives any and all rights it may have to seek administrative or judicial reconsideration, review, appeal, or stay, or to otherwise challenge or contest the validity of this Consent Decree and the Adopting Order, provided that no modifications are made to the Consent Decree adverse to Company or any Company Station. If the Commission, or the United States acting on its behalf, brings a judicial action to enforce the terms of the Adopting Order or this Consent Decree, or both, Company will not contest the validity of this Consent Decree or of the Adopting Order, and will waive any statutory right to a trial *de novo*. If Company brings a judicial action to enforce the terms of the Adopting Order or this Consent Decree, or both, the Commission will not contest the validity of this Consent Decree or the Adopting Order.

# Company takes seriously its responsibilities as a licensee to operate Company Stations in the public interest and to abide by FCC rules and policies, and its management has had in place policies and procedures that are designed to ensure compliance with those rules and policies. Despite these efforts, Company admits, solely for the purpose of this Consent Decree and for FCC civil enforcement purposes, and in express reliance on the provisions of Paragraph 8 hereof, and for no other purpose or to other effect, that Company has conducted an internal investigation with respect to the matters subject to the Investigations and Complaints, and Company's policies and practices with respect to the Sponsorship Identification Laws can be improved so as to further enhance the prospects for Company-wide compliance. By entering into this Consent Decree, Company makes no admission of liability or violation of any law, regulation, or policy. 

# In the event that this Consent Decree is rendered invalid in any court of competent jurisdiction, it shall become null and void and may not be used in any manner in any legal proceeding. 

# Company hereby agrees to waive any claims it may otherwise have under the Equal Access to Justice Act, 5 U.S.C. § 504 and 47 C.F.R. § 1.1501 *et seq.*, relating to the matters addressed in this Consent Decree.

# Each party represents and warrants to the other that it has full power and authority to enter into this Consent Decree.

# This Consent Decree may be executed in counterparts (including by facsimile), each of which, when so executed and delivered, shall be an original, and both of which counterparts together shall constitute one and the same fully executed instrument. 

# **FEDERAL COMMUNICATIONS COMMISSION**  {#federal-communications-commission .unnumbered}

#  {#section-1 .unnumbered}

# By: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ {#by-________________________________ .unnumbered}

#   Kris Anne Monteith  {#kris-anne-monteith .unnumbered}

#  Chief, Enforcement Bureau {#chief-enforcement-bureau .unnumbered}

#  Date:  {#date .unnumbered}

#  {#section-2 .unnumbered}

**6 JOHNSON ROAD LICENSES, INC.**

By: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
James J. Morrell, President

Date:

ATTACHMENT A

Company Compliance Plan

Company has developed, and is implementing, a Company-wide Compliance
Plan for the purpose of furthering compliance with the Sponsorship
Identification Laws and adherence to the Business Reforms set forth on
Attachment B. The Compliance Plan consists of the following components:

1\. [Commitment to High Standards on Pay-for-Play; Annual
Report.]{.underline}

A. [Commitment to High Standards on Pay-for-Play.]{.underline} Company
commits to enforcing high standards with respect to the Sponsorship
Identification Laws to avoid violations and the appearance of
impropriety in the area of music selection.

B. [Annual Report]{.underline}. The Compliance Officer, as defined
below, shall submit annual reports to Company\'s Board of Directors and
the Bureau concerning Company\'s compliance with this Agreement and with
the Business Reforms for a period of three years from the effective date
of this Agreement.

# 2. [Training of Programming Personnel]{.underline}. Company will conduct appropriate training of its employees who are on-air talent and/or materially participate in the on-air broadcast of program material or in the making of programming decisions and their supervisory employees ("*Programming Personnel*") in the accompanying Business Reforms and the Sponsorship Identification Laws**,** including the FCC's interpretation of such statutes and regulations regarding payola and related issues. Such training will be provided to all current Company Programming Personnel within 60 days of the Effective Date. The training will be provided to all new Company Programming Personnel promptly after they commence their duties. Refresher training will be provided to all employees described above at least once every twelve months. {#training-of-programming-personnel.-company-will-conduct-appropriate-training-of-its-employees-who-are-on-air-talent-andor-materially-participate-in-the-on-air-broadcast-of-program-material-or-in-the-making-of-programming-decisions-and-their-supervisory-employees-programming-personnel-in-the-accompanying-business-reforms-and-the-sponsorship-identification-laws-including-the-fccs-interpretation-of-such-statutes-and-regulations-regarding-payola-and-related-issues.-such-training-will-be-provided-to-all-current-company-programming-personnel-within-60-days-of-the-effective-date.-the-training-will-be-provided-to-all-new-company-programming-personnel-promptly-after-they-commence-their-duties.-refresher-training-will-be-provided-to-all-employees-described-above-at-least-once-every-twelve-months. .unnumbered}

3\. [Compliance Officer and Market-Level Compliance
Contacts.]{.underline}

A. [Compliance Officer]{.underline}. Within 45 days of the Effective
Date, Company shall designate a Compliance Officer*,* whose
responsibility shall be to seek to ensure Company's compliance with the
Business Reforms attached to this Consent Order and with the Sponsorship
Identification Laws through the following duties: (a) the
implementation, effectuation, and supervision of the training program
with regard to the Business Reforms and the Sponsorship Identification
Laws for all Company Programming Personnel; (b) being accessible by
telephone and/or e-mail to any Company employee who seeks advice on
compliance with the Business Reforms and the Sponsorship Identification
Laws or who wishes to report potential violations of such policies and
laws; (c) the development and implementation of procedures designed to
ensure Company's continuing compliance with the Business Reforms and the
Sponsorship Identification Laws; (d) monitoring Company's compliance
with the Business Reforms and the Sponsorship Identification Laws; (e)
reporting on a quarterly basis to the President regarding compliance of
Company Stations and employees with the Business Reforms and the
Sponsorship Identification Laws; and (f) such other activities as the
Compliance Officer deems necessary or appropriate to carry out his or
her duties.

B. [Market-Level Compliance Contacts]{.underline}. Within 45 days of the
Effective Date, Company shall designate a Compliance Contact for each
market in which there is a Company station that plays new music. The
market-level Compliance Contact shall work in conjunction with the
Company Compliance Officer in the implementation and monitoring of the
Business Reforms in such market.

4\. [Database and Hotline.]{.underline}

A. [Database]{.underline}. Company shall maintain all documentation of
expenditures required by this Agreement in the database(s) or in hard
copy for a period of not less than three (3) years. The database(s)
shall be available for inspection by the Bureau upon request.

B. [Hotline]{.underline}. Company Compliance Officer shall maintain a
hotline for employees to call the Compliance Officer to obtain advice on
compliance with the Business Reforms and report violations of the
Business Reforms.

5\. [Contractual Agreements]{.underline}. Company will ensure that all
contractual agreements with respect to Programming Personnel include a
contractual clause relating to compliance with the Sponsorship
Identification Laws.

#  6. [FCC Enforcement Actions]{.underline}. If as a result of a possible violation of the Sponsorship Identification Laws at a Company Station occurring after the effective date of the Consent Decree, the Company receives a Notice of Apparent Liability or similar Bureau document proposing a forfeiture, a Bureau document contemplating license non-renewal or revocation, or a Forfeiture Order, the following steps will be taken: {#fcc-enforcement-actions.-if-as-a-result-of-a-possible-violation-of-the-sponsorship-identification-laws-at-a-company-station-occurring-after-the-effective-date-of-the-consent-decree-the-company-receives-a-notice-of-apparent-liability-or-similar-bureau-document-proposing-a-forfeiture-a-bureau-document-contemplating-license-non-renewal-or-revocation-or-a-forfeiture-order-the-following-steps-will-be-taken .unnumbered}

A. Each employee accused of violating the Sponsorship Identification
Laws will be suspended and an investigation will immediately be
undertaken.

B. Each such employee will be required to undergo remedial training on
Business Reforms and the Sponsorship Identification Laws and satisfy the
Compliance Officer and Company Station management that he or she
understands such regulations and policies before resuming his or her
duties.

C. If a Notice of Apparent Liability, Forfeiture Order or similar
document assessing a forfeiture, or a document denying a renewal
application and/or revoking a license issued by the FCC, is finally
adjudicated and Company is finally found to have violated the
Sponsorship Identification Laws that results in such action by the
Commission, the employee(s) materially involved in the violation or
violations that are the subject of such Commission or Bureau action will
be subject to further disciplinary action, up to and including
termination.

**ATTACHMENT B**

**Company Business Reforms**

Company has implemented and is implementing on a Company-wide basis
certain business reforms for the purpose of furthering compliance with
the Sponsorship Identification Laws. To the extent not already
undertaken, within 60 days of the Effective Date of the Consent Decree
to which this statement is attached, Company shall implement and adhere
to the following practices ("*Business Reforms*")*.*

1\. [Prohibited Activity]{.underline}.

A.  [Record Label and Record Label Employees]{.underline}. Neither
    Company, any Company Station, nor any Company employee
    (collectively, "*Company Parties*") shall solicit, receive, or
    accept cash or any other item of value from a Record Label or Record
    Label employee in, or as part of, an exchange, agreement, or
    understanding to provide or increase airplay of music provided by
    any Record Label, except as expressly permitted under ¶ 2, below,
    and provided that all such activity complies with applicable
    Sponsorship Identification Laws. As used in these Business Reforms,
    the term "*Record Label*" means (a) any entity that manufactures or
    distributes audio recordings of music, (b) any artist under contract
    to a Record Label (an "*Artist*"), and (c) any representative of the
    Record Label or an Artist, including independent promoters.

B.  [Independent Music Promoters]{.underline}. Company Parties shall not
    accept any item of value from an independent music promoter, unless
    that promoter certifies in writing to Company that no compensation
    to the promoter from a Record Label is based upon airplay.

2\. [Permissible Restricted Activity]{.underline}. Company Parties may
engage in the following activities with Record Labels, subject in each
case to compliance with the Sponsorship Identification Laws and the
following restrictions, and to adherence with the disclosure and
documentation requirements set forth in ¶ 3 below.

A. [Contests or Giveaways]{.underline}: Company Parties may solicit,
receive, and accept items of value, including but not limited to
promotional items, gift cards, CDs, gift certificates, concert tickets,
airfare, hotel rooms, vouchers and cash, from Record Labels to give away
on the air, at a Company Station event or promotion, or for the benefit
of charity, to persons or entities other than Company employees (or
members of their immediate families or households). Contest rules and
on-air announcements relating to such contests shall clearly indicate
the value of the prize(s) as required by FCC rules and identify the
Record Label as the provider of the prize(s) to be awarded.

B. [Advertising]{.underline}: Company Parties may solicit, receive and
accept payment (in cash or other items of value) from Record Labels for
on-air advertising, provided that the announcement clearly identifies
the Record Label as the sponsor of the advertisement.

C. [Other Commercial Transactions]{.underline}: Company Parties may
enter into commercial transactions with Record Labels pursuant to which
a Company Party and a Record Label may license, sell, or otherwise agree
to distribute or promote the Record Label's Artists, songs, or records.

D. [Artist Appearances and Performances]{.underline}: Company Parties
may arrange for Artists to appear or perform at events or interviews,
including under circumstances where a Record Label has subsidized
reasonable costs related to the appearance, performance, or interview.
Company Stations' on-air announcements of an Artist's performance that
is subsidized in any part by the Record Label shall indicate clearly
that the Artist's appearance is sponsored by the Record Label. The
broadcast on a Company Station of all or a portion of the Artist's live
performance at the event is permitted, provided that any such broadcast
complies with the Sponsorship Identification Laws.

E. [Nominal Consideration]{.underline}:[^5] Company Parties may solicit,
receive and accept the following items of value from Record Labels for
use by a Company Station:

\(i\) [CDs and other promotional items of nominal value]{.underline}. A
Company Station may solicit, receive, and accept from Record Labels: (A)
electronic copies of songs and up to 20 copies of the same CD to
familiarize Company employees with recordings; (B) electronic copies of
recordings for posting on Company Station websites to familiarize
visitors to such websites with the Artists' recordings, and (C)
promotional items intended for the personal use of Company Parties, if
the value of each such individual item does not exceed \$25, such as
T-shirts, key chains, coffee mugs, baseball hats, posters, pens, and
bumper stickers.

\(ii\) [Concert tickets]{.underline}. A Company Station may solicit,
receive, and accept up to 20 tickets (which may include associated
backstage or "VIP"-type passes) for a single-day concert, for each day
of a multi-day concert, and/or to an industry event to be used by
Company employees to familiarize them with the performing Artists.
Tickets provided by Record Labels for Company employees who are working
at the concert and/or industry event (*e.g.*, technicians, on-air
talent, promotions staff, etc.) shall be subject to the disclosure and
documentation provisions of ¶ 3, below, but shall not be counted towards
the 20 ticket limit.

\(iii\) [Modest personal gifts for life event, professional achievement,
and holidays, or gifts commemorating achievement by Company or a Record
Label]{.underline}. Company employees may receive and accept reasonable
gifts from a Record Label commemorating life events, professional
achievements, and holidays. A "reasonable" gift is one whose value the
employee has no reason to believe is greater than \$150. An example of a
life event would include a birthday, wedding, or the birth of a child.
An example of a professional event would be a job promotion or the
winning of a music industry award. A Company Station may receive and
accept from a Record Label gifts that commemorate achievements of
Company, the Company Station, the Record Label, or the Record Label's
Artists. An example of such a gift would be a plaque commemorating an
Artist's achieving "gold record" level sales.

\(iv\) [Meals and entertainment]{.underline}. Company employees may
receive and accept meals and entertainment in an amount not to exceed
\$150 per person, per event, provided that the event is attended by a
Record Label employee and has a legitimate business purpose, and any
payment is consistent with the value of the meal or entertainment.
Company employees may receive and accept meals and entertainment from a
Record Label in an amount that exceeds \$150 per person, provided that
the event is attended by a Record Label employee, has a legitimate
business purpose, and is approved in writing by the Compliance Officer,
as provided in the accompanying Compliance Plan. A Company employee may
also receive and accept meals and entertainment from a Record Label for
the benefit of his/her spouse or "significant other" accompanying the
employee at such occasion, consistent with and subject to the
limitations of this provision.

\(v\) [Travel and lodging expenses]{.underline}. A Company Station may
receive and accept from a Record Label reasonable travel and lodging
expenses for Company employees to attend live performances or
appearances by Artists for the purpose of familiarizing such employees
with a Record Label's Artists. A Company Station may also receive and
accept from a Record Label reasonable travel and lodging expenses to
industry events if the Company Station provides, to the satisfaction and
approval of the Compliance Officer, a legitimate business purpose
underlying the Record Label's payment of such expenses. Each Company
Station shall be limited to 20 such trips annually, to be allocated
among Company employees at the discretion of the Company Station. For
purposes of these Business Reforms, "reasonable travel and lodging
expenses" means commercial airfare (coach class), train or car service
and a sufficient number of nights lodging to accomplish the intended
business purpose. All travel and lodging expenditures must be approved
in advance and in writing by the Compliance Officer. A Company employee
may also receive and accept meals and entertainment during such trips,
consistent with and subject to ¶ 2E(iv), above.

F. Nothing herein shall prohibit an increase in airplay of an Artist's
music during the period surrounding or coincident with (i) a contest or
giveaway that promotes that Artist and (ii) the Artist's appearance or
performance at an event, provided that, to the extent the increase in
airplay results from an agreement or understanding with the Record Label
or Artist, such increased airplay shall comply with the Sponsorship
Identification Laws.

3\. [Mandatory Documentation]{.underline}. Company shall record and
document all activity set forth in ¶ 2 as follows:

A. [Database record of items of value received from a Record
Label]{.underline}. Company shall establish and maintain one or more
databases (collectively, the "*Database*") containing a record
identifying all items of value received by each Company Station or
Company employee from Record Labels (exclusive of Artist performances
and commercial transactions with Record Labels), and the disposition of
such items shall be recorded as follows. In the case of each item of
value that exceeds \$25 in value (on an individual per item basis)
intended to be awarded in a contest or given away by a Company Station,
the Database shall record the date and manner of disposition and
recipient of each such item. Items received for use by a Company Station
or its employees (such as CDs for review by station employees and
concert tickets) shall be so recorded. Items in excess of \$25 in value
received by Company or Company employees personally or in connection
with business-related meals, entertainment, and travel shall be recorded
in the Database separately.

B. [Contests or Giveaways]{.underline}. In addition to the documentation
maintained in the Database, in each instance where Company solicits,
receives, or accepts an item of value from a Record Label to give away
on the air, Company shall (i) verify in writing to the Record Label that
the contest prize(s) will not be given away to an employee of a Company
Station (or to members of their immediate families or households); and
(ii) for each item of value given away that exceeds the monetary
reporting threshold established by the Internal Revenue Service,
maintain a record verifying that a contest winner has been selected,
including the full name and address of the recipient of the prize, and
provide this information, in writing, to the Record Label upon request.

C. [Advertising by Record Labels]{.underline}. All advertising by Record
Labels shall be subject to a written agreement and recorded in one or
more separate databases.

[^1]: *See* 47 U.S.C. §§ 317, 508.

[^2]: *See* 47 C.F.R. § 73.1212.

[^3]: *See* 47 U.S.C. § 154(i).

[^4]: *See* 47 C.F.R. §§ 0.111, 0.311.

[^5]: Dollar amounts in this section may be adjusted for inflation based
    on the Consumer Price Index.