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THURSDAY, DECEMBER 4, 2014

Radio remains No. 2 behind TV on fast-fragmenting media landscape. Radio’s reach expanded in the third quarter while TV’s cume diminished and smartphone adoption mushroomed, according to a report from Nielsen. Radio’s monthly reach increased to 258.7 million, up from 257.4 million one year earlier. That put it closer to traditional TV, which slipped to 282.7 million monthly viewers from 283.7 million in 2013. A snapshot of the fast-fragmenting media universe, Nielsen’s new Total Audience Report shines a light on media consumption habits, device usage, and time spent across the cornucopia of ways consumers are connecting with content. At 2 hours and 44 minutes per day, radio remained the second most- used medium among eight media tracked by Nielsen. Broadcast radio out-performed smartphones, accessing the internet from a computer, time-shifted TV, game consoles, DVD/Blu-ray devices and multimedia devices. But like traditional TV and use of the internet on a computer, time spent with radio is slowly declining. Daily time spent with AM/FM radio among adults 18+ decreased from 2 hours and 51 minutes in the third quarter of 2012 to 2:47 in 2013 and to 2:44 in 2014. Generally the older the demo, the more time spent tuning in. Yet despite an older- skewing audience, AM/FM radio ranks second behind TV in weekly time spent for every measured demo. Adults 50-64 spent the most time with AM/FM radio: 14 hours and 57 minutes per week. Adults 35-49 racked up 13 hours and 48 minutes, followed by adults 25-34 (11:35), adults 18-24 (10:30) and teens 12-17 (7:23). The average number of radio stations tuned per month remained relatively constant: 6.9 stations in August 2012, 6.7 in 2013 and 6.7 in 2014. Total time spent with media continues to grow. Americans are spending more time consuming media content, not less. What’s changing is how they use it and the growing consumption taking place on digital platforms. Those are among the topline findings of Nielsen’s third-quarter Total Audience Report, formerly called the Cross-Platform Report. Smartphone penetration has reached 75%, a 15% jump over the same period last year. Nearly half of Americans own a tablet, up 59% from one year earlier. “Content is still king, but consumers are shaping their own content-discovery experience, and the evolving media landscape has not lessened consumer demand for quality, professionally-produced content,” says Nielsen SVP of insights Dounia Turrill. “What has changed is the number and reliability of new media available to viewers.” The study’s most profound findings have to do with how Americans are using TV. According to an analysis by Brian Wieser, total year-over-year TV viewing, including live TV plus time-shifting, fell 4% in the third quarter, twice as fast as the second

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com THURSDAY, DECEMBER 4, 2014 quarter’s 2% decline. The fall-offs were much more severe among younger audiences. The study also shines a light on a multicultural America with differing media habits. Blacks, for instance, spend 61 hours a month with AM/FM radio compared to 58 hours for Hispanics and 59 hours for the total population.

Report: Native ad spending on the rise. Instead of just blasting consumers with , marketers increasingly want to embed their message directly into the content. For radio, that’s led to more integrations like “Live from the Tasty Cakes studio” or “McDonald’s McCafe Chopper 880” traffic reports. Get ready for the trend to spread. Native ad spending will grow 34% next year to $4.3 billion, according to Socintel360. The biggest draw, according to executives interviewed by eMarketer, is consumer engagement. Native advertising is said to generate interaction and grab consumers’ attention in a way that more traditional ads cannot. “Traditional digital advertising has become wallpaper,” GE global head of media strategy Jason Hill tells eMarketer. “Brands that have a strong point of view and great partners to help them express it can enjoy massive engagement [with native].” CBS Local Digital Media president Ezra Kucharz expects the trend to accelerate, especially among bigger, more sophisticated marketers. “But it has to be content that is useful to the consumer and placed in the right context,” he says. Still, scale and measurement were cited as obstacles for native advertisers to overcome. And critics have argued that it improperly exploits consumer trust in a media outlet or outright deceives them. The Interactive Adverting Bureau has issued a Native Advertising Playbook to give advertisers advice on how to make it easier for consumers to identify what’s paid for. That also appears to be a concern at the Federal Trade Commission. During a FTC panel discussion on best practices last year, stakeholders repeatedly emphasized the importance of Americans being easily able to determine exactly who is talking to them in the content they consume.

SiriusXM is carving out an expanding role in the connected car. There may be a lot of differences between broadcast and satellite radio and but executives at Sirius XM Radio have come to a similar conclusion about streaming. “I worry about streamers and what they can do to our model,” says Liberty Media CEO Greg Maffei, which holds a majority stake in SiriusXM. But like broadcast executives, he sees both threats and opportunities in streaming, saying the web will allow SiriusXM to offer new services to its users. “But I’m far from convinced that they have great business models,” Maffei said at Liberty Media’s recent shareholder meeting. Instead, he views safety and security features — ranging from help finding a car in a parking lot to remote car unlocking — as ways to boost SiriusXM’s customer retention. SiriusXM CEO Jim Meyer pushed back against some on Wall Street who worry the connected car will lure some customers away to a free online option. “There are streamers who compete with us,” he said. “But by far the biggest in-car centric service is terrestrial radio with still over 220 million people listening to it.” With fewer than 15% of the 240 million cars on the road equipped with SiriusXM, Meyer told investors he doubts streaming will do much to slow the satcaster’s growth. He predicted the satellite service will be built into 100 million new and used vehicles by 2017 and 120 million cars by 2019. As that number expands, it will give SiriusXM a wider opening for its non-entertainment in-car tools. Meyer said the focus for now is on gaining share, not making money. “More importantly, it gives us a really strong relationship with the carmakers,” he added.

To speed up KXMZ purchase, Pandora attorneys meet with Wheeler aides. Pandora is looking to jump start its long- delayed quest to buy hot AC “Hits 102.7” KXMZ, Rapid City, SD from Connoisseur Media. Attorneys met last week with legal aides to FCC chair Tom Wheeler to get the deal to the finish line. ASCAP has called the KXMZ deal a “blatant attempt” by Pandora to use the FCC to lower its royalty costs rather than serve the public. Its petition to deny has bogged down the license transfer. While Pandora hopes the deal will allow it to pay the same royalties as broadcasters, it’s not copyright issues that are behind the year-and-a-half delay. Instead, the proposed sale has become a test case for the FCC’s new policy of allowing foreign ownership of broadcast stations to exceed 25% on a case-by-case basis. Because it can’t say definitively how much of its stock is owned by foreign entities, Pandora is seeking a waiver to the -old cap. The KXMZ sale has the prospect of becoming a precedent for any other publicly-traded company looking to buy a station. The National

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Association of Broadcasters has remained neutral in the battle over whether Pandora should be allowed to buy KXMZ, but it believes the “the time is right” for the FCC to acknowledge its foreign ownership restrictions are “outdated.” The rest of the radio industry has been remarkably silent. Even so, the Minority Media and Telecommunications Council believes agency approval may wind up helping minority owners overcome a “severe lack of access to domestic capital” by giving a clear signal to offshore investors. Without it, MMTC predicts there will be a “chilling effect” on efforts to lure foreign capital.

Learfield’s next play is helping colleges expand into mobile. College play- by-play rights holder Learfield Sports is taking another step beyond radio with a new alliance targeting college sports fans on mobile devices. Its web solutions company, Sidearm Sports, has partnered with in-stadium app developer YinzCam to build a mobile platform for the colleges and universities on its bench. How that will look is to be determined, but YinzCam CEO Priya Narasimhan says it will “infuse new game-day experiences and technologies” into smartphones. Similar to radio stations that see a growing opportunity in helping clients build their digital business, Learfield is working with college athletic organizations to grow their digital efforts. Five months ago it bought Sidearm Sports, which works with 750 school athletic programs — more than seven-times the number of colleges that have their multimedia rights with Learfield. For YinzCam, which is already working with more than 90 pro sports teams and venues, linking with Learfield opens a door into the lucrative college sports business. “It’s no secret YinzCam has already created buzz in the collegiate marketplace,” Learfield SVP/chief content officer Joe Ferreira says. “And we’re proud to take a broad, aggressive approach to create a highly beneficial partnership across our entire sports business.”

Tom Barnard re-ups with KQ-92. Longtime Minneapolis morning man Tom Barnard will wrap up his radio career in his hometown. Barnard, 63, has signed a long-term contract with to remain in morning drive on classic rock “KQ-92” KQRS-FM. “Tom Barnard is a legend in Twin Cities radio — and a national treasure we are proud to call our own,” EVP of content and programming John Dickey says in the announcement. The Marconi Award-winning personality began his radio career in 1971 and has been heard in mornings at KQRS-FM since 1986. “I will be eternally grateful to the listeners for supporting ‘the KQ Morning Show’ for the past 29 years,” Barnard says. “I am very excited to know all of my years as a morning show host will be spent at KQRS.”

Portland’s Lars Larson sticks with hosting both local and national talk shows. Lars Larson takes to the airwaves each day on 170 stations from 3-6pm PT. He also hosts a regional show that airs on 15 stations across the Pacific Northwest from 12noon-3pm, based at “FM News 101” KXL-FM, Portland. Six hours may be a lot, but it’s a schedule Larson has kept for the past five years. He’s now signed a multiyear contract that will keep him pulling double duty for Alpha Media and syndicator . That “incredible work ethic” is “truly inspiring,” says Alpha CEO Bob Proffit. EVP of programming Scott Mahalick adds, “He has mastered the rules of the game and plays better than anyone else in the business.” Alpha has also signed a contract extension with nightly talk host Clyde Lewis. Lewis hosts the KXL-FM-based “Ground Zero” show, which airs on more than 200 stations nationwide. The program focuses on paranormal issues. “Clyde offers a seventh- dimension perspective and is the most compelling story teller I’ve ever met in this business,” Mahalick says.

Pandora exec calls Taylor Swift’s Spotify swipe a ‘marketing ploy’ to sell records. Pandora is in the middle of charm offensive with artists, but chart-topper Taylor Swift may not be feeling the love from comments made by Pandora’s No. 2 executive. CFO Mike Herring calls her decision to pull songs from her new album off Spotify a “marketing ploy” rather than an effort to upend the streaming model. “It created a news cycle for Taylor that certainly has worked out for her very well,” Herring said at an investor conference. Swift’s record “1989” has sold more than two million copies, according to Nielsen SoundScan, making it the best-selling album since 2002. “It’s a unique situation for only artists that are at that level,” Herring added. He told the Credit Suisse Technology Conference that had it been about royalties, Swift would have yanked her records from YouTube since its royalties are “dramatically worse” for artists compared to Spotify. “She’s brilliant

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com THURSDAY, DECEMBER 4, 2014 at understanding the marketing power of a statement and also what millennials want to hear,” Herring said. He also noted Pandora didn’t see any measureable increase in use after Swift’s new songs were taken down from the rival streaming service. Speaking at a Bloomberg conference last month, iHeartMedia CEO Bob Pittman said he believes Swift has started a debate over the role that all-you-can-listen-to $10 per month streaming services play. He also drew a distinction with broadcast radio, which he called a “major promotional device” for artists. The battle over streaming royalties is expected to heat up as music sales continue to fade. “The key to avoiding those kinds of problems as an industry is proving our value outside of writing a check,” Herring told the crowd of investors. “Where we become indispensable as a platform for understanding and communicating with artists, I think you’re going to see a lot less friction like that and more cooperation.”

Inside Radio News Ticker...Tecate extends ‘manfidence’ campaign to radio...Manfidence is an attitude that is shared by men who are confident, comfortable in their own skin, dynamic and clever. It’s also the theme of Tecate and Tecate Light beer’s new radio ads that are targeting bicultural Hispanic men aged 21 to 34 years old. While that demo is heavy users of digital media, the Heineken brand also worked with MV42 on media recommendations and concluded it should add radio and out-of-home media in key markets...Financial talker enters plea deal...The list of convicted financial advice talk show hosts grows by one as former “Safe Money America” creator Robert McManus pleads guilty to selling securities without a license and selling unregistered securities for a Texas oil and gas drilling company. Under a deal with Ohio prosecutors, he agrees to pay $2.3 million in restitution to 18 people who invested money with him. McManus also faces up to 16 years in prison. His brokered show aired on WLW, Cincinnati (700)...Judge keeps Beck libel suit alive...A federal judge has rejected an effort by talker Glenn Beck to have a lawsuit filed against him dismissed. Abdulrahman Alharbi filed his lawsuit after Beck allegedly said on his syndicated radio show and website that the Saudi student helped fund the 2013 Marathon bombing. U.S. District Court Judge Patti Saris said Alharbi, 21, wasn’t a public figure even though he was a spectator near the finish line. Alharbi, who was injured in the blast, was later cleared of any wrongdoing. He still needs to convince a trial jury that Beck was negligent when he called him “a criminal who funded the attacks”...Saga adds green to shareholders’ holiday...The year closes with a double dose of good news for Saga Communications shareholders. The company says it will not only pay out a quarterly cash dividend, but it will also issue a special cash dividend of $1.20 per share. The combined payments are expected to total about $8.1 million. Saga says it plans to continue paying cash dividends in 2015, and its board is also considering stock dividends...Data breach for SAG-AFTRA...A data security breach has struck the payroll company that is used by SAG-AFTRA to pay such things as voiceover talent fees. The union says ART Payroll has begun alerting members that their personal information may have been compromised. “We are working with ART Payroll to ensure all proper steps are taken to mitigate this data security breach,” the union says in a statement...WV Power stays plugged into local operator...West Virginia Radio Corporation has signed a two-year deal with the West Virginia Power to keep the minor league team on “ESPN Radio 104.5 and 1490” WSWW through the end of the 2016 season. The team has been aligned with the radio cluster since 2004. The Power is a Class A farm club for the Pittsburgh Pirates...People Moves.... iHeartMedia promotes iHeartRadio SVP of programming Chris Williams to chief product officer for the streaming service. Beasley promotes Matt Smith to market manager for the company’s and Wilmington, DE stations. Check out all the latest People Moves HERE.

Radio’s filling a field with toys in Nashville. If you build it, they will come. Cumulus Media’s Nashville cluster is building a field of dreams — Christmas dreams — for needy kids and the elderly in middle . For the seventh year, its six stations are partnering with the Salvation Army’s Forgotten Angel Program to collect toys in LP Field. It is estimated the toys will reach 9,000 “angels” in the coming weeks. Major Ed Lee, the Salvation Army’s Nashville area commander, says they wouldn’t be able to provide for all the children without the support of the radio stations. “Thousands of toys have been donated throughout the years and we hope to see the same enthusiasm this year,” he says.

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S A L E S Dallas — Tron Dinh Do’s Intelli files a $1.6 million deal to buy sports “ESPN 1460/93.1” KCLE from Gary Moss’ M&M Broadcasters. The deal also includes two FM translators: the Cleburne, TX-licensed translator K226BM at 93.1 FM and the Burleson, TX-licensed translator K239CC at 95.5 FM — the latter of which is a construction permit. Intelli already owns the Vietnamese-language station WAZX (1550) in and it also has a pending $1 million deal to buy KAZA (1290) from Radio Fiesta Corp. in the San Jose market. Broker: Sandi Bergman Texas — Terry and Lori Slaven’s For the Love of the Game Broadcasting files a $450,000 deal to buy classic hits KATX, Eastland (97.7) from High Plains Radio Network. The Slavens have been operating the Class A signal under a local marketing agreement since January 2013. — Clark Parrish transfers the license for classic rock “My 102” WSIZ- FM, Jacksonville, GA from his World Radio Link to sister company Edgewater Broadcasting. The transfer would move the commercial classic rocker from a for-profit corporation to not-for-profit entity. The deal that values the Class A station at $350,000 also includes four FM translators in Lancaster, WI (99.1); Medford, WI (96.3); Muskegon, MI (96.5); and South Haven, MI (91.7). San Juan, PR — Aurio A. Matos’ La Mas Z Radio’s files to buy the Carolina, PR-licensed translator W266CF at 101.1 FM from New Life Broadcasting for $280,000. Matos will use the translator to give Romantica “Cima 103.7” WCMA (1600) another FM signal to cover San Juan. It also uses the San Juan-licensed W279BV at 103.7 FM. Yakima, WA — James Ingstad Broadcast Group files a $275,000 deal to buy three translators from Tom Hodgins’ Alexandra Communications. They include the Mabton, WA-licensed K283BX at 104.9 FM which will simulcast “New Country 104.1” KXDD. Also, the Mabton-licensed K291BV at 106.1 FM which will simulcast classic rock “105.7 The Hawk” KRSE. And the Wapato, WA-licensed K295BT at 106.9 FM which will simulcast rhythmic CHR “Hot 99.7” KHHK. Brokers: Phoenix Media Group (for buyer) and MCH Enterprises (for seller) Nebraska — The Nebraska Rural Radio Association files an $87,500 deal to buy religious KAMI, Cozad (1580) from Bott Broadcasting. It will operate KAMI under a time brokerage agreement until closing. The station has begun airing an all-Christmas format and it will go after the holiday. NRRA already owns two other stations in the Grand Island-Kearney-Hastings market, including country “93.1 The River” KRVN-FM and farm “880 AM Rural Radio” KRVN. Rochester, NY — Genesee Media files to buy the Gates, NY-licensed translator W248BH at 97.5 FM from Mars Hill Broadcasting for $40,000. Genesee Media will simulcast sports “The Team” WASB (1590) on the signal.

Georgia — John McClure’s The Power Foundation files a $25,000 deal to buy three FM translators to simulcast its Albany, GA market religious teaching station “The Life FM” WWQA (90.7). The signals include the Americus, GA- licensed W244CY at 96.7 FM; the Cordele, GA-licensed W202BZ at 88.3 FM; and the Hillsdale, GA-licensed W264CS at 100.7 FM. Kansas — Libertad En Cristo Ministries files to buy religious KYEH, Liberal, KS (91.5) from Top of Texas Educational Broadcasting Foundation for $15,000. Top of Texas will still own 10 stations in Texas, Oklahoma and New Mexico.

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Tucson — Clark Parrish’s Edgewater Broadcasting files to buy the Mt. Lemmon, AZ-licensed translator K296GT at 107.1 FM from Living Proof for $500. The filing says once the construction permit is built the signal will carry EMF’s “K-Love” contemporary Christian format. C L O S I N G S

Multi-market Deal — The multimarket swap between CBS Radio and has closed. No value has been put on the deal, but both companies contribute stations with $20 million in cash flow. CBS picks up country WXTU (92.5) and rhythmic CHR “Wired 96.5” WRDW-FM in Philadelphia. In , CBS acquires rhythmic CHR “Power 96” WPOW, “99.9 Kiss Country” WKIS and “ 560” WQAM. Beasley gets 14 stations. In Tampa, Beasley acquires country WQYK-FM (99.5), classic hits “Q105” WRBQ-FM, rhythmic CHR “Wild 94.1” WLLD, sports “98.7 The Fan” WHFS-FM, Spanish CHR “92.5 Maxima FM” WYUU and “CBS Sports Radio 1010” WHFS. In Charlotte, Beasley gets country WSOC-FM (103.7), AC “K-104.7” WKQC, CHR “Kiss 95.1” WNKS, urban “Power 98” WPEG, urban AC “V-101.9” WBAV-FM, sports “610 The Fan” WFNZ, and “CBS Sports Radio 1660” WBCN. And in Philadelphia, CBS hands off “Sports Radio 610” WIP. The swap will mean Beasley will now have three AMs in the Philly market where it also owns “Talk 860” WWDB and religious WTMR (800). Broker: Michael Bergner Waterloo-Cedar Rapids, IA — NRG Media closes a $3.55 million deal to buy classic hits KOKZ (105.7), “Rock 108” KFMW, “News Talk 1540” KXEL and sports “1330 ESPN Radio” KWLO from Woodward Communications. While a new market for NRG Media, it already owns six stations in Iowa in addition to holdings in , Nebraska and Wisconsin. State College, PA –— Kristin Cantrell’s Seven Mountains Media has closed a $2.075 million deal to buy four stations from First Media Radio. The stations include AC “3WZ” WZWW (95.3); the hot AC “Merf Radio” simulcast of WMRF-FM (95.7) and WLAK (103.5) and talk/adult standards WIEZ (670). Cantrell has a second $2.05 million deal to buy three other State College stations from Nick Galli’s 2510 Licenses. The second-generation broadcaster is the daughter of longtime Pennsylvania broadcaster Kerby Confer. Brokers: Larry Patrick (seller) and Michael Bergner (buyer) Raleigh-Durham, NC — Don Curtis closes a deal to buy back classic hits “Kix 102.9” WKIX-FM from son-in-law Billy McClatchey for $1.229 million. The deal includes the Louisburg, NC-licensed translator W254AS at 98.7 FM. Curtis previously handed-off WKIX-FM to McClatchey in 2009 as part of some three- way deal-making with Capitol Broadcasting. Curtis Media Group already owns eight stations in the Raleigh-Durham market so to meet ownership limits it has spun-off WFNL-FM (102.3) to Rick Heilmann’s Triangle Marketing Associates for $1.5 million. WFNL-FM had been with a bluegrass format since September, but the station is now silent while Heilmann relocates the studios to a new location. No format has been announced. Greenville-Spartanburg, SC — Salem Communications has closed a $200,000 deal to buy the Travelers Rest, SC-licensed translator W245CH at 101.7 FM from Frank McCoy. Salem will use the signal to simulcast “Conservative Talk 94.5” WGTK-FM. Roanoke-Lynchburg, VA — Pathway Christian Academy closes on its purchase of the currently-silent WWEM (91.7) from Educational Media Corp. for $136,000. The Academy plans to air its WAGO, Greenville, NC-based gospel Go Mix Radio Network on WWEM.

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[email protected] | 800.275.2840 PG 6 CLASSIFIEDS insideradio.com THURSDAY, DECEMBER 4, 2014 DOS & GSM VICE PRESIDENT, SALES - CHICAGO, IL Beasley Broadcast Group iHeartMedia Chicago is seeking an experienced leader seeks dynamic DOS & GSM to work with our sales team. candidates to lead sales teams in Fayetteville and Greenville- The Vice President of Sales position is a sales and management New Bern, NC and Augusta, GA. role with responsibility for leading and managing all functions of a successful sales department for a cluster of seven (7) radio stations Can you demonstrate a in the Chicago market. The Vice President of Sales must have successful track record of demonstrated success in driving large-scale, best-in-class businesses beating the market & exceeding to even higher levels of achievement and financial success. Candidates revenue goals? Do you have the must have a deep knowledge of relevant market ability to create new revenue intelligence and trends, including but not limited to opportunities? Do you possess evolving technologies, consumer behaviors, client leadership skills that set you expectations, shifting competitive landscape, and apart from your peers? operational efficiencies.

If so, send a brief cover Please send cover letters & resumes to: letter and resume to: DanaStreich@.com [email protected], Equal Opportunity Employer subject line NC/GA Sales Management. ACCOUNT EXECUTIVE - THE REBEL & BIG COUNTRY

MEMPHIS AND NORTHERN Immediate opportunity for media sales professional with at least 2-3 years successful sales experience in media or B2B outside sales, Equal Opportunity Employer. a strong work ethic and quality references to prosper and grow with well-funded local broadcast group. The Mid-South’s #1 Country Combo has recently added new stations and signals and now covers SALES - the entire market with two distinct country formats: The Rebel “Hit Salem Radio in New York is Country” and Big Country “Best from the 70s, 80s and 90s”. Ideal looking for a dynamic individual candidate will have solid advertiser relationships and business and/or to join the sales team for personal ties to the Mid-South. Must work well independently and will AM 970 The Answer and be able to sell creatively without smothering corporate procedures the legendary WMCA 570, and paperwork. Must be Microsoft office proficient and preferably New York’s Christian Talk. skilled using Nielsen ratings and information to earn new clients. Compensation is commensurate Winning candidate will be charged with developing new business and with degree of experience will have protected prospect list. and skills. This is a fabulous career opportunity for the right individual with one of the finest broadcasting companies in America. Media experience a must. Initial guarantee, industry-leading commission rates, full benefits including matching 401K. Please send detailed resume with references in confidence and include earnings history to: [email protected]. EOE. LOOKING FOR THE PERFECT RADIO MANAGEMENT OR Email cover letter and resume to: SALES PRO? [email protected]. Salem Media is an Equal PLACE YOUR JOB OPENING HERE! Opportunity Employer. EMAIL: [email protected] FOR A QUICK QUOTE.

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