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Gallien-Krueger to Pay $18.5K to Settle Equipment Marketing Probe

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Released: November 14, 2013

Federal Communications Commission

DA 13-2167

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of
)
File No.: EB-SED-13-000087321
)
Gallien Technology, Inc.,
)
Acct. No.: 201432100004
d/b/a Gallien-Krueger
)
)
FRN: 0021754080
)

ORDER

Adopted: November 14, 2013

Released: November 14, 2013

By the Deputy Chief, Enforcement Bureau:
1.
In this Order, we adopt the attached Consent Decree entered into between the
Enforcement Bureau (Bureau) of the Federal Communications Commission (Commission) and Gallien
Technology, Inc., d/b/a Gallien-Krueger (Gallien). The Consent Decree resolves and terminates the
Bureau’s investigation into Gallien’s compliance with Section 302(b) of the Communications Act of
1934, as amended (Act),2 and Sections 2.803, 15.19, and 15.105 of the Commission’s rules3 (Rules)
pertaining to the marketing of digital audio radio frequency devices, including digital bass amplifiers.
2.
The Bureau and Gallien have negotiated the Consent Decree that resolves this matter. A
copy of the Consent Decree is attached hereto and incorporated herein 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 Gallien 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), 4(j), and 503(b) of the
Act4 and Sections 0.111 and 0.311 of the Rules,5 the Consent Decree attached to this Order

IS
ADOPTED

.


1 The investigation initiated under File No. EB-10-SE-033 was subsequently assigned File No. EB-SED-13-
00008732. Any future correspondence with the FCC concerning this matter should reflect the new case number.
2 47 U.S.C. § 302a(b).
3 47 C.F.R. §§ 2.803, 15.19, 15.105.
4 47 U.S.C. §§ 154(i), 154(j), 503(b).
5 47 C.F.R. §§ 0.111, 0.311.

Federal Communications Commission

DA 13-2167

6.

IT IS FURTHER ORDERED

that the above-captioned investigation

IS

TERMINATED

.
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 Robert A. Gallien, President and
CEO, Gallien Technology, Inc., d/b/a Gallien-Krueger, 2234 Industrial Drive, Stockton, CA 95206.
FEDERAL COMMUNICATIONS COMMISSION
Robert H. Ratcliffe
Deputy Chief, Enforcement Bureau
2

Federal Communications Commission

DA 13-2167

Before the

Federal Communications Commission

Washington, D.C. 20554

)
In the Matter of
)
File No.: EB-SED-13-000087321
)
Gallien Technology, Inc.,
)
Acct. No.: 201332100004
d/b/a Gallien-Krueger
)
)
FRN: 0021754080

CONSENT DECREE

The Enforcement Bureau of the Federal Communications Commission and Gallien Technology,
Inc., d/b/a Gallien-Krueger, by their authorized representatives, hereby enter into this Consent Decree for
the purpose of terminating the Enforcement Bureau’s investigation into possible violations of Section
302(b) of the Communications Act of 1934, as amended,2 and Sections 2.803, 15.19, and 15.105 of the
Commission’s rules3 pertaining to the marketing of digital audio radio frequency devices, including
digital bass amplifiers.

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. § 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) “Communications Laws” means collectively, the Act, the Rules, and the published
and promulgated orders and decisions of the Commission to which Gallien is subject
by virtue of its business activities, including but not limited to, the Equipment
Marketing Rules.
(f) “Compliance Plan” means the compliance obligations and compliance program
described in this Consent Decree at paragraph 9.


1 The investigation initiated under File No. EB-10-SE-033 was subsequently assigned File No. EB-SED-13-
00008732. Any future correspondence with the FCC concerning this matter should reflect the new case number.
2 47 U.S.C. § 302a(b).
3 47 C.F.R. §§ 2.803, 15.19, 15.105.

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DA 13-2167

(g) “Covered Employees” means all employees and agents of Gallien who perform, or
supervise, oversee, or manage the performance of duties that relate to Gallien’s
responsibilities under the Equipment Marketing Rules.
(h) “Digital Device” means an unintentional radiator device or system as defined in
Section 15.3(k) of the Rules.4
(i) “Effective Date” means the date on which the Bureau releases the Adopting Order.
(j) “Equipment Marketing Rules” means Section 302(b) of the Act5 and Sections 2.803,
15.19, and 15.105 of the Rules6 and other Communications Laws governing the
marketing of radio frequency devices within the United States and its territories.
(k) “Gallien” means Gallien Technology, Inc., d/b/a Gallien-Krueger, and its
predecessors-in-interest and its successors-in-interest.
(l) “Investigation” means the investigation commenced by the Bureau’s April 26, 2012
letter of inquiry regarding whether the marketing of certain Digital Devices by
Gallien complies with the Equipment Marketing Rules. 7
(m) “Operating Procedures” means the standard, internal operating procedures and
compliance policies established by Gallien to implement the Compliance Plan.
(n) “Parties” means Gallien and the Bureau, each of which is a “Party.”
(o) “Rules” means the Commission’s regulations found in Title 47 of the Code of
Federal Regulations.

II.

BACKGROUND

2.
Pursuant to Section 302(b) of the Act8 and Sections 2.803, 15.19, and 15.105 of the
Rules,9 certain Digital Devices may not be marketed in the United States unless the devices comply with
the applicable technical standards as well as the administrative requirements relating to equipment
labeling and consumer disclosure. Section 2.803(a) of the Rules defines “marketing” as the “sale or lease,
or offering for sale or lease, including advertising for sale or lease, or importation, shipment, or
distribution for the purpose of selling or leasing or offering for sale or lease.”10 Gallien designs,
manufactures, and distributes Digital Devices, such as bass amplifiers, that are marketed under the brand
names Gallien-Krueger or GK. These Digital Devices are unintentional radiators that require prior


4 47 C.F.R. § 15.3(k).
5 47 U.S.C. § 302a(b).
6 47 C.F.R. §§ 2.803, 15.19, 15.105.
7 See Letter from John D. Poutasse, Chief, Spectrum Enforcement Division, FCC Enforcement Bureau, to Robert
Gallien, Chief Executive Officer, Gallien-Krueger (Apr. 26, 2012) (on file in EB-SED-13-00008732).
8 47 U.S.C. § 302a(b).
9 47 C.F.R. §§ 2.803, 15.19, 15.105.
10 Id. § 2.803(a) (formerly codified at 47 C.F.R. § 2.803(e)(4) (2012)); see 78 Fed. Reg. 21561 (Apr. 29, 2013).
2

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DA 13-2167

Commission authorization via the Commission’s equipment verification procedures, as well as proper
labeling and consumer disclosures.11
3.
On April 26, 2012, the Bureau’s Spectrum Enforcement Division (Division) issued a
letter of inquiry (LOI)12 to Gallien, directing Gallien to submit a sworn written response to a series of
questions relating to Gallien’s manufacture, importation, and marketing of certain Digital Devices to
determine its compliance with the Communications Laws applicable to the marketing of such devices.
Gallien responded to the LOI on May 22, 2012.13 In its LOI Response, Gallien submitted information and
documentation relating to the Digital Devices at issue.14 The Bureau and Gallien entered into a tolling
agreement to toll the statute of limitations.15

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.
5.

Jurisdiction

. Gallien agrees that the Bureau has jurisdiction over it and the matters
contained in this Consent Decree and that the Bureau 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 Effective Date as defined herein. As of the Effective Date, the Adopting Order and this
Consent Decree shall have the same force and effect as any other order of the Commission. Any violation
of the Adopting Order or of the terms of this Consent Decree shall constitute a separate violation of a
Commission order, entitling the Commission 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 the Investigation. In consideration for the termination of the Investigation, Gallien 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 the Investigation through the Effective
Date, 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 Gallien concerning the matters that were the
subject of the Investigation. The Bureau also agrees that in the absence of new material evidence it will
not use the facts developed in the Investigation through the Effective Date, 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 Gallien with respect to Gallien’s basic qualifications, including its character
qualifications, to be a Commission licensee or to hold Commission licenses or authorizations.


11 47 C.F.R. § 15.101.
12 See supra note 7.
13 See Letter from Robert A. Gallien, President & CEO, Gallien Technology, Inc., to Susan German, Attorney
Advisor, Spectrum Enforcement Division, FCC Enforcement Bureau (May 22, 2012) (on file in EB-SED-13-
00008732) (LOI Response).
14 See id.
15 Tolling Agreement, executed by and between John D. Poutasse, Chief, Spectrum Enforcement Division, FCC
Enforcement Bureau, Robert A. Gallien, President & CEO, Gallien Technology, Inc. (May 17, 2013) (on file in EB-
SED-13-00008732).
3

Federal Communications Commission

DA 13-2167

8.

Compliance Officer

. Within thirty (30) calendar days after the Effective Date, Gallien
shall designate a senior corporate manager with the requisite corporate and organizational authority to
serve as Compliance Officer and to discharge the duties set forth below. The person designated as the
Compliance Officer shall be responsible for developing, implementing, and administering the Compliance
Plan and ensuring that Gallien complies with the terms and conditions of the Compliance Plan and this
Consent Decree. In addition to the general knowledge of the Communications Laws necessary to
discharge his/her duties under this Consent Decree, the Compliance Officer shall have specific knowledge
of the Equipment Marketing Rules prior to assuming his/her duties.
9.

Compliance Plan

. For purposes of settling the matters set forth herein, Gallien agrees
that it shall within sixty (60) calendar days after the Effective Date, develop and implement a Compliance
Plan designated to ensure future compliance with the Communications Laws and with the terms and
conditions of this Consent Decree. With respect to the Equipment Marketing Rules, Gallien shall
implement the following procedures:
(a)

Operating Procedures on Equipment Marketing

. Within sixty (60) calendar
days after the Effective Date, Gallien shall establish Operating Procedures that all
Covered Employees must follow to help ensure Gallien’s compliance with the
Equipment Marketing Rules. Gallien’s Operating Procedures shall include
internal procedures and policies specifically designed to ensure that prior to the
initiation of marketing (as such term is defined in Section 2.803 of the Rules16),
all Digital Devices and other radio frequency devices to be marketed by Gallien
comply with applicable technical standards, have been properly authorized (via
the certification, verification, or declaration of conformity procedures, as
applicable) and comply with the applicable administrative requirements relating
to equipment labeling and consumer disclosure.
(b)

Compliance Manual

. Within sixty (60) calendar days after the Effective Date,
the Compliance Officer shall develop and distribute a Compliance Manual to all
Covered Employees. The Compliance Manual shall explain the Equipment
Marketing Rules, including the obligations to secure an equipment authorization
from the FCC prior to marketing a Digital Device and to comply with the
applicable administrative requirements relating to equipment labeling and
consumer disclosure, and set forth the Operating Procedures that Covered
Employees shall follow to help ensure Gallien’s compliance with the Equipment
Marketing Rules. Gallien shall periodically review and revise the Compliance
Manual as necessary to ensure that the information set forth therein remains
current and complete. Gallien shall distribute any revisions to the Compliance
Manual promptly to all Covered Employees.
(c)

Compliance Training Program

. Gallien shall establish and implement a
Compliance Training Program on compliance with the Equipment Marketing
Rules and the Operating Procedures. As part of the Compliance Training
Program, Covered Employees shall be advised of Gallien’s obligation to report
any noncompliance with the Equipment Marketing Rules under paragraph 10 of
this Consent Decree and shall be instructed on how to disclose noncompliance to
the Compliance Officer. All Covered Employees shall be trained pursuant to the
Compliance Training Program within sixty (60) calendar days after the Effective


16 See supra note 10 and accompanying text.
4

Federal Communications Commission

DA 13-2167

Date, except that any person who becomes a Covered Employee at any time after
the Effective Date shall be trained within thirty (30) calendar days after the date
such person becomes a Covered Employee. Gallien shall repeat the compliance
training on an annual basis and shall periodically review and revise the
Compliance Training Program as necessary to ensure that it remains current and
complete and to enhance its effectiveness.
10.

Reporting Noncompliance

. Gallien shall report any noncompliance with the Equipment
Marketing Rules and with the terms and conditions of this Consent Decree within fifteen (15) calendar
days after discovery of such noncompliance. Such reports shall include a detailed explanation of (i) each
instance of noncompliance; (ii) the steps that Gallien has taken or will take to remedy such
noncompliance; (iii) the schedule on which such remedial actions will be taken; and (iv) the steps that
Gallien has taken or will take to prevent the recurrence of any such noncompliance. All reports of
noncompliance shall be submitted to the Chief, Spectrum Enforcement Division, Enforcement Bureau,
Federal Communications Commission, Room 3-C366, 445 12th Street, S.W. Washington, DC 20554,
with a copy submitted electronically to Kevin Pittman at Kevin.Pittman@fcc.gov and to Ricardo Durham
at Ricardo.Durham@fcc.gov.

11.

Compliance Reports

. Gallien shall file Compliance Reports with the Commission
ninety (90) calendar days after the Effective Date, twelve (12) months after the Effective Date, twenty-
four (24) months after the Effective Date, and thirty-six (36) months after the Effective Date.
(a) Each Compliance Report shall include a detailed description of Gallien’s efforts
during the relevant period to comply with the terms and conditions of this Consent
Decree and the Equipment Marketing Rules. In addition, each Compliance Report
shall include a certification by the Compliance Officer, as an agent of and on behalf
of Gallien, stating that the Compliance Officer has personal knowledge that Gallien
(i) has established and implemented the Compliance Plan; (ii) has utilized the
Operating Procedures since the implementation of the Compliance Plan; and (iii) is
not aware of any instances of noncompliance with the terms and conditions of this
Consent Decree, including the reporting obligations set forth in paragraph 10 hereof.
(b) The Compliance Officer’s certification shall be accompanied by a statement
explaining the basis for such certification and must comply with Section 1.16 of the
Rules and be subscribed to as true under penalty of perjury in substantially the form
set forth therein. 17
(c) If the Compliance Officer cannot provide the requisite certification, the Compliance
Officer, as an agent of and on behalf of Gallien, shall provide the Commission with a
detailed explanation of the reason(s) why and describe fully (i) each instance of
noncompliance; (ii) the steps that Gallien has taken or will take to remedy such
noncompliance, including the schedule on which proposed remedial actions will be
taken; and (iii) the steps that Gallien has taken or will take to prevent the recurrence
of any such noncompliance, including the schedule on which such preventive action
will be taken.
(d) All Compliance Reports shall be submitted to the Chief, Spectrum Enforcement
Division, Enforcement Bureau, Federal Communications Commission, Room 3-
C366, 445 12th Street, S.W., Washington, DC 20554, with a copy submitted


17 47 C.F.R. § 1.16.
5

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DA 13-2167

electronically to Kevin Pittman at Kevin.Pittman@fcc.gov and to Ricardo Durham at
Ricardo.Durham@fcc.gov.
12.

Termination Date

. Unless stated otherwise, the requirements set forth in paragraphs 8
through 11 of this Consent Decree shall expire thirty-six (36) months after the Effective Date.
13.

Voluntary Contribution

. Gallien agrees that it will make a voluntary contribution to the
United States Treasury in the amount of eighteen thousand five hundred dollars ($18,500) (Voluntary
Contribution); such Voluntary Contribution to be made in six installments (each, an Installment
Payment). The first Installment Payment in the amount of three thousand eighty-four dollars ($3,084) is
due within thirty (30) calendar days after the Effective Date. The second Installment Payment in the
amount of three thousand eighty-four dollars ($3,084) is due on or before January 14, 2014. The third
Installment Payment in the amount of three thousand eighty-four dollars ($3,084) is due on or before
February 14, 2014. The fourth Installment Payment in the amount of three thousand eighty-four dollars
($3,084) is due on or before March 14, 2014. The fifth Installment Payment in the amount of three
thousand eighty-four dollars ($3,084) is due on or before April 14, 2014. The sixth and final Installment
Payment in the amount of three thousand eighty dollars ($3,080) is due on or before May 14, 2014.
Gallien shall make the first and all subsequent Installment Payments in United States Dollars without
further demand or notice by the dates specified above. Gallien acknowledges and agrees that upon
execution of this Consent Decree the Voluntary Contribution and each Installment Payment shall become
a “Claim” or “Debt” as defined in 31 U.S.C. § 3701(b)(1). Upon an Event of Default (as defined below),
all procedures for collection as permitted by law may, at the Commission’s discretion, be initiated.
Gallien shall also send electronic notification of each Installment Payment on the date said payment is
made to Kevin Pittman at Kevin.Pittman@fcc.gov, Ricardo Durham at Ricardo.Durham@fcc.gov, and
Samantha Peoples at Sam.Peoples@fcc.gov. The payment must be made by check or similar instrument,
wire transfer, or credit card, and must include the NAL/Account Number and FRN referenced above.
Regardless of the form of payment, a completed FCC Form 159 (Remittance Advice) must be
submitted.18 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). Below are
additional instructions that Gallien should follow based on the form of payment it selects:
Ÿ
Payment by check or money order must be made payable to the order of the Federal
Communications Commission. Such payments (along with the completed Form 159) must be
mailed to Federal Communications Commission, P.O. Box 979088, St. Louis, MO 63197-
9000, or sent via overnight mail to U.S. Bank – Government Lockbox #979088, SL-MO-C2-
GL, 1005 Convention Plaza, St. Louis, MO 63101.
Ÿ
Payment by wire transfer must be made to ABA Number 021030004, receiving bank
TREAS/NYC, and Account Number 27000001. To complete the wire transfer and ensure
appropriate crediting of the wired funds, a completed Form 159 must be faxed to U.S. Bank
at (314) 418-4232 on the same business day the wire transfer is initiated.
Ÿ
Payment by credit card must be made by providing the required credit card information on
FCC Form 159 and signing and dating the Form 159 to authorize the credit card payment.
The completed Form 159 must then be mailed to Federal Communications Commission, P.O.
Box 979088, St. Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank –
Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
63101.


18 An FCC Form 159 and detailed instructions for completing the form may be obtained at
http://www.fcc.gov/Forms/Form159/159.pdf.
6

Federal Communications Commission

DA 13-2167

If Gallien has questions regarding payment procedures, it should contact the Financial Operations Group
Help Desk by phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov.
14.

Event of Default

. Gallien agrees that an Event of Default shall occur upon the failure by
Gallien to pay the full amount of any Installment Payment on or before the due dates specified in this
Consent Decree.
15.

Interest, Charges for Collection, and Acceleration of Maturity Date

. After an Event
of Default has occurred under this Consent Decree, the then unpaid amount of the Voluntary Contribution
shall accrue interest, computed using the rate of the U.S. Prime Rate in effect on the date of the Event of
Default plus 4.75 percent, from the date of the Event of Default until payment in full. Upon an Event of
Default, the then unpaid amount of the Voluntary Contribution, together with interest, as aforesaid, any
penalties permitted and/or required by the law, including but not limited to interest and penalties
permitted under 31 U.S.C. § 3717 and administrative charge(s), plus the costs of collection, litigation, and
attorneys’ fees, shall become immediately due and payable, without notice, presentment, demand, protest,
or notice of protest of any kind, all of which are waived by Gallien.
16.

Waivers

. Gallien 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 as defined herein. Gallien
shall retain the right to challenge Commission interpretation of the Consent Decree or any terms
contained herein. 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 Gallien nor the Commission shall contest the
validity of the Consent Decree or of the Adopting Order, and Gallien shall waive any statutory right to a
trial de novo. Gallien hereby agrees to waive any claims it may have under the Equal Access to Justice
Act19 relating to the matters addressed in this Consent Decree.
17.

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.
18.

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 Gallien does not expressly
consent) that provision will be superseded by such Rule or Commission order.
19.

Successors and Assigns

. Gallien agrees that the provisions of this Consent Decree shall
be binding on its successors, assigns, and transferees.
20.

Final Settlement

. The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties with respect to the Investigation. 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 Communications Laws.
21.

Modifications

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


19 Equal Access to Justice Act, Pub L. No. 96-481, 94 Stat. 2325 (1980) (codified at 5 U.S.C. § 504); see also
47 C.F.R. §§ 1.1501–1.1530.
7

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DA 13-2167

22.

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.
23.

Authorized Representative

. The individual signing this Consent Decree on behalf of
Gallien represents and warrants that he is authorized by Gallien to execute this Consent Decree and to
bind Gallien to the obligations set forth herein. The FCC signatory represents that he is signing this
Consent Decree in his official capacity and that he is authorized to execute this Consent Decree.
24.

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.
___________________________
John D. Poutasse
Chief, Spectrum Enforcement Division
Enforcement Bureau
___________________________
Date
_____________________________
Robert A. Gallien
President & Chief Executive Officer
Gallien Technology, Inc., d/b/a Gallien-Krueger
_____________________________
Date
8

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