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                               ENFORCEMENT BUREAU

                              South Central Region

                                 Houston Office

                             9597 Jones Road, #362

                              Houston, Texas 77065

                                 March 14, 2011

   Stephen Yates

   Yates Media

   Lufkin, Texas

                         NOTICE OF UNLICENSED OPERATION

   Case Number: EB-11-HU-0008

   Document Number: W201132540001

   In response to a complaint that you were operating an unlicensed broadcast
   station, an agent from the Houston Office contacted you on February 8,
   2011, and you stated that you had been operating radio station KZXL on the
   frequency 96.3 MHz in Lufkin, Texas since November 2010 pursuant to a
   local marketing agreement (LMA) with the licensee for the station.
   According to Commission records, The Turning Leaf, LLC is the only entity
   licensed to operate a radio station on the frequency 96.3 MHz in Lufkin,
   Texas. According to the President of The Turning Leaf, LLC, the LMA with
   Transportation Venture No. 2, an entity owned by you, expired October 22,
   2010 and has not been renewed or renegotiated. The President of the
   licensee also states that neither you nor Transportation Venture No. 2
   KZXL has permission to operate station KZXL on 96.3 MHz in Lufkin.

   You are hereby warned that operation of radio transmitting equipment
   without a valid radio station authorization constitutes a violation of
   Federal law and could subject the operator to severe penalties, including,
   but not limited to, substantial monetary fines, in rem arrest action
   against the offending radio equipment, and criminal sanctions including
   imprisonment. (see 47 U.S.C. S:S: 301, 401, 501, 503 and 510).


   You have ten (10) days from the date of this notice to respond with any
   evidence that you have authority to operate granted by the FCC. Your
   response should be sent to the address in the letterhead and reference the
   listed case and document number. Under the Privacy Act of 1974, 5 U.S.C.
   S: 552a(e)(3), we are informing you that the Commission's staff will use
   all relevant material information before it to determine what, if any,
   enforcement action is required to ensure your compliance with FCC Rules.
   This will include any information that you disclose in your reply.

   You may contact this office if you have any questions.

   Lee R. Browning

   Resident Agent

   Houston Office



   Excerpts from the Communications Act of 1934, As Amended

   Enforcement Bureau, "Inspection Fact Sheet", March 2005