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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                 )                               
                                     File No. EB-08-SE-819       
     In the Matter of            )                               
                                     NAL/Acct. No. 200932100066  
     Midland Radio Corporation   )                               
                                     FRN 0005867551              
                                 )                               


                                     ORDER

   Adopted: October 14, 2009 Released: October 16, 2009

   By the Chief, Spectrum Enforcement Division, Enforcement Bureau:

    1. In this Order, we adopt the attached Consent Decree entered into
       between the Enforcement Bureau ("Bureau") and Midland Radio
       Corporation. ("Midland"). The Consent Decree terminates an
       investigation and Notice of Apparent Liability for Forfeiture ("NAL")
       by the Bureau against Midland for possible violations of Section
       302(b) of the Communications Act of 1934, as amended, (the "Act"), and
       Section 2.803(g) of the Commission's Rules ("Rules") regarding the
       marketing of General Mobile Radio Service (GMRS) transmitters equipped
       with voice scrambling technology.

    2. The Bureau and Midland have negotiated the terms of the 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, which terminates the investigation and
       cancels the NAL.

    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 Midland 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 sections 4(i) and 503(b)
       of the Act, and sections 0.111 and 0.311 of the Rules, the Consent
       Decree attached to this Order IS ADOPTED.

    6. IT IS FURTHER ORDERED that the above-captioned investigation IS
       TERMINATED and  the  Notice of Apparent Liability for Forfeiture IS
       CANCELLED.

    7. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
       shall be sent by first class mail and certified mail, return receipt
       requested, to counsel for Midland, Mitchell Lazarus, Peter Tannenwald
       and Davina Sashkin, Fletcher, Heald & Hildreth, PLC, 1300 North 17th
       Street, 11th Floor, Arlington, VA 22209.

   FEDERAL COMMUNICATIONS COMMISSION

   Kathryn S. Berthot

   Chief, Spectrum Enforcement Division

   Enforcement Bureau

                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                 )                               
                                     File No. EB-08-SE-819       
     In the Matter of            )                               
                                     NAL/Acct. No. 200932100066  
     Midland Radio Corporation   )                               
                                     FRN 0005867551              
                                 )                               


                                 CONSENT DECREE

   The Enforcement Bureau ("Bureau") and Midland Radio Corporation
   ("Midland"), by their authorized representatives, hereby enter into this
   Consent Decree for the purpose of terminating the Bureau's investigation
   into whether Midland violated Section 302(b) of the Communications Act of
   1934, as amended ("Act"), and Section 2.803(g) of the Commission's Rules
   ("Rules") by marketing General Mobile Radio Service ("GMRS") transmitters
   equipped with voice scrambling technology.

   I. DEFINITIONS

    1. For the purposes of this Consent Decree, the following definitions
       shall apply:

     a. "Act" means the Communications Act of 1934, as amended 47 U.S.C. S:S:
        151 et seq.

     b. "Adopting Order" means an Order of the Bureau adopting the terms of
        this Consent Decree without change, addition, deletion, or
        modification.

     c. "Bureau" means the Enforcement Bureau of the Federal Communications
        Commission.

     d. "Commission" and "FCC" mean the Federal Communications Commission and
        all of its bureaus and offices.

     e. "Compliance Plan" means the program described in this Consent Decree
        at paragraph 9.

     f. "Effective Date" means the date on which the Bureau releases the
        Adopting Order

     g. "GMRS" means General Mobile Radio Service.

     h. "Investigation" means the investigation commenced by the Bureau's
        March 9, 2009, Letter of Inquiry ("LOI") regarding whether Midland
        marketed GMRS

   transmitters equipped with voice scrambling technology, in violation of
   Section 302(b) of the Act and Section 2.803(g) of the Rules.

     i. "Midland" means Midland Radio Corporation and its
        predecessors-in-interest and its successors-in-interest.

     j. "NAL" means the Notice of Apparent Liability for Forfeiture, Midland
        Radio Corporation, 24 FCC Rcd 8392 (Enf. Bur., Spectrum Enf. Div.
        2009).

     k. "Parties" means Midland and the Bureau.

     l. "Rules" means the Commission's regulations found in Title 47 of the
        Code of Federal Regulations.

   II. BACKGROUND

    2. Section 302(b) of the Act provides that "[n]o person shall
       manufacture, import, sell, offer for sale, or ship devices or home
       electronic equipment and systems, or use devices, which fail to comply
       with regulations promulgated pursuant to this section." Section
       2.803(g) of the Rules prohibits the marketing of radio frequency
       devices that could not be authorized or legally operated under the
       current rules. Section 95.183(a)(4) of the Rules provides in pertinent
       part that "[a GMRS] station operator must not communicate ... coded
       messages or messages with hidden meanings."

    3. On March 3, 2009, the Bureau issued a letter of inquiry ("LOI") to
       Midland. The March 3, 2009, LOI directed Midland, among other things,
       to submit a sworn written response to a series of questions relating
       to the marketing of GMRS transmitters equipped with a voice scrambling
       feature. Midland responded to the March 3, 2009, LOI on April 2, 2009.
       On June 25, 2009, the Bureau issued a Notice of Apparent Liability for
       Forfeiture ("NAL") proposing that Midland be held liable for a
       forfeiture of $21,000 under Section 503(b)(1)(B) of the Act, and
       ordered the Company either to pay the proposed forfeiture or file a
       written response within thirty (30) days of the NAL release date
       stating why the proposed forfeiture should be reduced or canceled.

   III. TERMS OF AGREEMENT

    4. Adopting Order. The Parties agree that the provisions of this Consent
       Decree shall be subject to final approval by the Bureau by
       incorporation of such provisions by reference in the Adopting Order
       without change, addition, modification, or deletion.

    5. Jurisdiction. Midland  agrees that the Bureau has jurisdiction over it
       and the matters contained in this Consent Decree and has the authority
       to enter into and adopt this Consent Decree.

    6. Effective Date; Violations. 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 Order of the
       Bureau. Any violation of the Adopting Order or of the terms of this
       Consent Decree shall constitute a separate violation of a Bureau
       Order, entitling the Bureau to exercise any rights and remedies
       attendant to the enforcement of a Commission Order.

    7. Termination of Investigation. In express reliance on the covenants and
       representations in this Consent Decree and to avoid further
       expenditure of public resources, the Bureau agrees to terminate its
       investigation and to cancel its NAL. In consideration for the
       termination of said investigation, Midland agrees to the terms,
       conditions, and procedures contained herein. The Bureau further agrees
       that in the absence of new material evidence, the Bureau will not use
       the facts developed in this investigation through the Effective Date
       of the Consent Decree, the NAL, or the existence of this Consent
       Decree, to institute, on its own motion, any new proceeding, formal or
       informal, or take any action on its own motion against Midland
       concerning the matters that were the subject of the investigation. The
       Bureau also agrees that it will not use the facts developed in this
       investigation through the Effective Date of this Consent Decree, the
       NAL, or the existence of this Consent Decree, to institute on its own
       motion any proceeding, formal or informal, or take any action on its
       own motion against Midland with respect to Midland's basic
       qualifications, including its character qualifications, to be a
       Commission licensee or hold Commission authorizations.

    8. Importing and Marketing GMRS Transmitters. Midland agrees that every
       GMRS transmitter imported or marketed in the United States by Midland
       on or after the Effective Date of this Consent Decree shall be
       compliant with Part 95 of the Rules before importation and marketing
       by Midland.

    9. Compliance Plan. For purposes of settling the matters set forth
       herein, Midland agrees to maintain a Federal Communications Commission
       Regulatory Compliance Plan ("FCC Compliance Plan") related to
       Midland's future compliance with the Act, the Commission's Rules, and
       the Commission's Orders. The FCC Compliance Plan will include, at a
       minimum, the following components:

    a. FCC Compliance Procedures. Midland shall develop and update as
       necessary appropriate FCC Compliance Procedures. Relevant Midland
       personnel shall be made aware of the FCC Compliance Procedures and
       shall be required to follow them. The FCC Compliance Procedures will,
       among other things, address the importance of evaluating all new
       product features and functions to ensure compliance with applicable
       Commission Rules. Midland shall also maintain a relationship with
       outside regulatory counsel familiar with FCC regulations and
       interpretations to ensure that Midland remains current with respect to
       such matters.

    a. Compliance Officer. Midland shall designate an FCC Compliance Officer
       ("Compliance Officer") who will administer the FCC Compliance Plan,
       supervise Midland's compliance with the Commission's Rules,
       interpretations thereof, and this Consent Decree, and serve as the
       Midland point of contact for all FCC-related compliance matters. The
       Compliance Officer will be assigned responsibility within Midland for
       determining whether features and functions incorporated into products
       marketed by Midland in the United States are in compliance with FCC
       Compliance Procedures.

    a. Review and Monitoring. Midland will review the FCC Compliance Plan
       annually to ensure that it is maintained in a proper manner and
       continues to address the objectives set forth therein.

    a. Compliance Reports. Midland will file compliance reports with the
       Commission three months, twelve months and twenty four months after
       the Effective Date. Each compliance report shall include a compliance
       certificate from an officer, as an agent of Midland, stating that the
       officer has personal knowledge that Midland  has established operating
       procedures intended to ensure compliance with this Consent Decree,
       together with an accompanying statement explaining the basis for the
       officer's compliance certification. All compliance reports shall be
       submitted to the Chief, Spectrum Enforcement Division, Enforcement
       Bureau, Federal Communications Commission, 445 12th Street, S.W.,
       Washington, D.C. 20554. All reports shall also be submitted
       electronically to Thomas Fitz-Gibbon at Thomas.Fitz-Gibbon@fcc.gov,
       Neal McNeil at Neal.McNeil@fcc.gov and to Kathy Berthot at
       Kathy.Berthot@fcc.gov.

   (e) Termination. Unless stated otherwise, the requirements of this Consent
   Decree will expire twenty four (24) months after the Effective Date.

   10. Voluntary Contribution. Midland agrees that it will make a voluntary
       contribution to the United States Treasury in the amount of fourteen
       thousand dollars ($14,000). The payment will be made within 30 days
       after the Effective Date of this Consent Decree. The payment must be
       made by check or similar instrument, payable to the order of the
       Federal Communications Commission. The payment must include the
       Account Number and FRN Number referenced in the caption to the
       Adopting Order. 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. Payment 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). Midland will also send
       electronic notification on the date said payment is made to
       Thomas.Fitz-Gibbon@fcc.gov and Kathy.Berthot@fcc.gov.

   11. Waivers. Midland 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 the Bureau issues an Adopting Order
       adopting the Consent Decree without change, addition, modification, or
       deletion. Midland shall retain the right to challenge Commission
       interpretation of the Consent Decree or any terms contained herein.
       Midland further shall retain the right to seek a change in any
       existing Commission Rules or to challenge any future Commission
       interpretation of its Rules regarding what constitutes coded messaging
       on GMRS devices. If either Party (or the United States on behalf of
       the Commission) brings a judicial action to enforce the terms of the
       Adopting Order, neither Midland nor the Commission shall contest the
       validity of the Consent Decree or the Adopting Order, and Midland
       shall waive any statutory right to a trial de novo. Midland hereby
       agrees to waive any claims it may otherwise have under the Equal
       Access to Justice Act, 5 U.S.C. S: 504 and 47 C.F.R. S: 1.1501 et
       seq., relating to the matters addressed in this Consent Decree.

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

   13. Subsequent Rule or Order. The Parties agree that if any provision of
       the Consent Decree conflicts with any subsequent rule or Order adopted
       by the Commission (except an Order specifically intended to revise the
       terms of this Consent Decree to which Midland does not expressly
       consent) that provision will be superseded by such Commission rule or
       Order.

   14. Successors and Assigns. Midland agrees that the provisions of this
       Consent Decree shall be binding on its successors, assigns, and
       transferees.

   15. Final Settlement. The Parties agree and acknowledge that this Consent
       Decree shall constitute a final settlement between the Parties. The
       Parties further agree that this Consent Decree does not constitute
       either an adjudication on the merits or a factual or legal finding or
       determination regarding any compliance or noncompliance with the
       requirements of the Act or the Commission's Rules and Orders.

   16. Modifications. This Consent Decree cannot be modified without the
       advance written consent of both Parties.

   17. Paragraph Headings. The headings of the Paragraphs in this Consent
       Decree are inserted for convenience only and are not intended to
       affect the meaning or interpretation of this Consent Decree.

   18. Authorized Representative. Each Party represents and warrants to the
       other that it has full power and authority to enter into this Consent
       Decree.

   19. Counterparts. This Consent Decree may be signed in any number of
       counterparts (including by facsimile), each of which, when executed
       and delivered, shall be an original, and all of which counterparts
       together shall constitute one and the same fully executed instrument.


         _______________________________        
                                                
         Kathryn S. Berthot                     
                                                
         Chief, Spectrum Enforcement Division   
                                                
         Enforcement Bureau                     
                                                
         ________________________________       
                                                
         Date                                   
                                                
         ________________________________       
                                                
         Eric Schenck                           
                                                
         Vice President-Finance                 
                                                
         Midland Radio Corporation              
                                                
         ________________________________       
                                                
         Date                                   


       47 U.S.C. S: 302a(b).

       47 C.F.R. S: 2.803(g)..

       47 U.S.C. S:S: 154(i) and 503(b).

       47 C.F.R. S:S: 0.111, 0.311.

       47 U.S.C. S: 302a(b).

       47 C.F.R. S: 2.803(g).

       See Letter from Kathryn S. Berthot, Chief, Spectrum Enforcement
       Division, Enforcement Bureau, Federal Communications Commission, to
       Midland Radio Corporation (March 3, 2009) .

       47 C.F.R. S: 95.183(a)(4).

       See March 3, 2009, LOI.

       See Letter from Peter Tannenwald and Davina Sashkin, Counsel for
       Midland Radio Corporation, to Thomas D. Fitz-Gibbon, Esq., Spectrum
       Enforcement Division, Enforcement Bureau, Federal Communications
       Commission (April 3, 2009) ("LOI Response").

       Midland Radio Corporation, 24 FCC Rcd 8392 (Enf. Bur., Spectrum Enf.
       Div 2009).

       The Bureau has extended the response time until September 10, 2009.

       Federal Communications Commission DA 09-2216

       5

       Federal Communications Commission DA 09-2216