2008 - Orange County Automobile Dealers Association

OC Dealer is a publication of Newsletters Inkand is the official publication of Orange CountyAutomobile Dealers Association. OC Dealer ispublished 4 times per year by Newsletters Ink.The statements and opinions expressed hereinare those of the individual authors and do notnecessarily represent the views of OC Dealer,or its publisher Newsletters Ink. Any legal adviceshould be regarded as general information.It is strongly recommended that one contactan attorney for counsel regarding specificcircumstances. Likewise, the appearance ofadvertisers does not constitute an endorsementof the products or services featured byNewsletters Ink.122ND ANNUAL FIRST LOOK FOR CHARITY AT THE OC AUTO SHOWIssueINSIDE This14OC AUTO SHOW184 Calendar of Events6 President’s Message8 Election Results8 OCADA in the District9 Get to Know Your Legislator:Senator Tom Harman9 2008 OCADA-PAC Honor Roll12 2nd Annual First Look for Charity at the OCAuto Show14 OC Auto Show18 Media Frenzy on the Economy22 OCADA Automotive Technician InternshipProgram25 An Update From Capitol HillBy Congressman John Campbell25 OCADA Member Service Highlight27 OCADA Welcomes Our New AssociateMembers29 OCADA Automotive Technology Competition30 Five Survival Tips for Tougher TimesBy Dave AndersonMEDIA FRENZY ON THEECONOMYVisit us Online!www.OCADA.orgOC DEALER is a Publication of theOrange County Automobile DealersAssociation125 Baker Street East, Suite 262Costa Mesa, CA 92626www.ocada.orgPhone: 714-424-6090Fax: 714-424-6094FALL 2008 ⎢3

Board ofDirectorsPRESIDENTMatt GundersonAudi Mission ViejoInfi niti of Mission ViejoVICE PRESIDENTPaul LunsfordSouth Coast ToyotaTREASURERTom WinterlingFord of OrangeMazda of OrangeIMMEDIATE PAST PRESIDENTMark ParkinsonTustin Buick Pontiac GMC HummerTustin NissanEXECUTIVE DIRECTORJohn SackrisonOrange County Automobile DealersAssociationCalendar of EventsDecember 16Educational Seminar: A Review ofthe New Laws plus Managing YourEmployees Performance: Discipline andDischarge 101January 13 OCADA Annual Meeting with SpeakerNewt Gingrich—Fairmont Hotel,Newport Beach24–27 NADA Convention and Expo—NewOrleans26 AIADA 39th Annual Meeting andLuncheon—New Orleans31 OCADA’s 16th Annual High SchoolAutomotive Technology Competition—Hyundai in Fountain ValleyFebruary 5 Educational Seminar: Sexual HarassmentPreventionDIRECTORSGeorge HeidlerSuzuki DepotKia DepotSossi KeuylianCommonwealth Volkswagen AudiTim MullaheyMullahey ChevroletJohn PattersonTustin MazdaHuntington Beach MazdaDouglas SpeddingDouglas Hyundai-Isuzu Santa AnaDouglas Hyundai Irvine4 OC Dealer WWW.OCADA.ORG

PRESIDENT’SMESSAGEWhen it seems that we hear so littlegood news these days, I am pleasedto report the 2008 Orange CountyAuto Show was a solid success, especially ina down market. We achieved our goal to getconsumers in front of our new products withgreat press coverage. Our ride and drivesenjoyed increased participation and our excitingentertainment offerings drew a recordSaturday night crowd. The Auto Show alsofeatured in its second year, the First Look forCharity Preview event, which raised morethan $60,000 for the Children’s Hospital ofOrange County. It was a wonderful eveningcomplete with great food, music, and cars,all in the company of good friends.Congratulations and thank you to ourAuto Show Chairman, Mark Parkinson, forhis hard work in making our largest and mostimportant event a success. Be sure to markOctober 28, 2009 on your calendars for nextyear’s First Look for Charity benefiting CHOC,which will be even bigger and better!Looking toward the future, I am happy toannounce that former Speaker of the HouseNewt Gingrich has agreed to be the featuredspeaker at the OCADA Annual Meeting onJanuary 13, 2009. This will be an incrediblyunique opportunity to hear from one of ourcountry’s biggest visionaries just one weekbefore we swear in a new President. Newtwill be giving us a true “Washington Insiders”Matt GundersonAudi Mission ViejoInfiniti of Mission Viejoperspective on what to expect from an Obama-Biden Administration and a new Congress.In these uncertain times, I know we will allbenefit from Newt’s wisdom and insight.On behalf of the entire Board and Staff ofOCADA, may I extend our best wishes to eachof you for a great Holiday season. May the NewYear be less challenging for all of us!6 OC Dealer WWW.OCADA.ORG

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35th Senate District:Seal Beach, Huntington Beach, FountainValley, Costa Mesa, Newport Beach,Irvine, Cypress, La Palma, Los Alamitos,Rossmoor, Laguna Beach, Dana Point andportions of Buena Park, Garden Grove,Santa Ana and WestminsterState Senate Committees:Currently serves as Minority Whip andlead Republican on the powerful SenateJudiciary Committee. He also is a memberof the following committees: Budget andFiscal Review; Business, Professions andEconomic Development; GovernmentalOrganizations; Local Government;Transportation and Housing.GET TO KNOW YOUR LEGISLATOR:SENATOR TOM HARMANPersonal:Has lived in Orange County for 44 yearswith his wife Dianne and his two kids,Michael and Michelle.Quote:“I am proud of the strong dedicationthe car dealers within the 35th SenateDistrict show our community as bothresponsible employers and activists withinour neighborhoods ensuring that OrangeCounty continues to prosper.”Biography:After having served six years on theHuntington Beach City Council, Harmanwas elected to State Assembly in 2000,and was re-elected in 2002 and 2004 byoverwhelming majorities. Senator Harmanhas made lowering taxes a top priority, andhas proudly signed the Taxpayers’ ProtectionPledge. His other priorities as a legislator haveincluded reducing the size of government;promoting job creation and boosting economicdevelopment; private entrepreneurship; freemarkets; and property rights. Harman hasspearheaded the fight against governmentwaste, fraud and corruption and launchedan Organizational Efficiency Program toimprove performance and lower costs whileeliminating governmental waste. SenatorHarman is also widely viewed as a steward ofOrange County’s world-renowned coastline.Prior to holding office, Harman practicedlaw in Huntington Beach for 27 years. He isalso a military veteran who served in theUnited States Army 4th Infantry Division.What Dealers Say:“Tom has been a great friend and ally tothe dealers since he first took office as a CityCouncilman and has continued his supportin the Assembly and Senate.”–Rick Evans, Huntington Beach Chrysler Jeep“Senator Harman understands ourbusiness and the important role we play asjob providers and tax revenue generators inthe local and state economy.”–John Patterson, OC MazdaDistrict Office ContactInformation:950 South Coast Drive. Ste. 240Costa Mesa, CA 92626Phone: (714) 957- 4555Email: senator.Harman@sen.ca.govWebsite:http://www.senate.ca.gov/harmanMitch AllenRyan BusnardoSteve ColemanDave ConantAJ D’AmatoMike D’Amato2008 OCADA-PAC Honor RollPresident’s ClubBrian ButlerGeorge SaadChairman’s ClubThomas FerruzzoMatt GundersonDennis HardinGeorge HeidlerDick HsuClay JamesPaul LunsfordBob MillerJohn OhWoody OklejasAl ParajeckasMark ParkinsonRegular DonorsDavid DelilloPaul FangBill PierceyValerie RomeroJim SpeckDavid WilsonTom WinterlingJoin the OCADA-PAC Honor roll and make your contribution today!FALL 2008 ⎢9

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2nd Annual First Look for Charity at the OC Auto ShowThanks to the attendance of many Orange County dealers andlocal supporters, this year’s event was a huge success. The attendancewas double that of the previous year and the eventraised over $60,000 for Children’s Hospital of Orange County(CHOC). “It was exciting to see the dealers of Orange Countycome together and help raise much-needed funds for the Children’sHospital. Even when sales have been down, I was proud to see somany of our Dealers show up to support this fantastic local charity,”said Matt Gunderson, event chairman.OCADA worked closely with the Guilds of CHOC to puttogether this unique evening that included live entertainment,cocktails, hors d’oeurves and a private preview of the hottest newvehicles and concept cars at the OC Auto Show.Don’t miss next year’s Charity Preview scheduled for October 28, 2009!12 OC Dealer WWW.OCADA.ORG

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Ride and Drives, Entertainment,Along with the Support of the OC Register,Gives Consumers More Reasonsto Come to theOC Auto Show!In the worst car markets in recent history, the2008 Orange County Auto Show was a bigsuccess, thanks to some strategic planning andsome great partners. “When the Auto Show Committeemet at the beginning of 2008 we thoughtit might be a tough year, so instead of hunkeringdown, we added to the show,” said Auto ShowChairman Mark Parkinson. “We know our job isto get as many consumers in front of the new products,so we gave them more reasons to come to theshow—big-name brands, entertainment, ride anddrives and the Auto Show Underground.”The plan worked, consumer attendancewas strong and there were buyers! 16% werecurrently shopping and 44% said they would bepurchasing in the next 12 months. Additionally,71% of attendees indicated that the OC AutoShow influenced which vehicle they wouldultimately buy!14 OC Dealer WWW.OCADA.ORG

Best in Show awards: Best Concept Award was presented to theChrysler Akino Best Production Vehicle Award waspresented to the Nissan GTR Best Entertainment Award was presentedto the Toyota Ride and Drive Best Exhibit Award was presented to FordMotor CompanyEven in a down market, the show was highlyattended by auto enthusiasts and potential carbuyers. A large part of the success of this year’sOC Auto Show was the outstanding supportand sponsorship of the Orange County Registerand additional sponsors like Cox Media. Don’tmiss out on the excitement of next year’s show,October 29–November 1, 2009.FALL 2008 ⎢15

Media Frenzyon the EconomyThe financial/credit crisis and the related slowdown in autosales has produced an unprecedented media frenzy of gloomand doom news reports where auto dealerships are oftentargeted by aggressive reporters looking for bad news.As a result, OCADA is cautioning dealers to let employees knowthat NO ONE on staff speaks to the media on the company’sbehalf except for the dealership’s designated individual, andOCADA is here to assist with statistics and talking points. OCADAmembers are invited to refer reporters to the association office.OCADA’s role on behalf of its dealer members is to speak forthe industry and our market when the media wants a story. Dealersopting to interact with news reporters in the foreseeable futureshould recall the mindset of the optimist who views “the glass ishalf-full, not half-empty.” Retailers at large and dealers specifically,know all too well the malaise that can set in during sluggish anddown economies. Persistent negative news can be a negative impacton consumer spending and retail sales success and no useful purposeis served.OCADA is available to its members seeking assistance with callsfrom news agencies. “We’ll work with dealers talking to the mediaand/or help arrange interviews based on facts and research, if needbe to keep the story straight,” said John Sackrison, OCADA Director.“We are here to help cast the car business in a positive light.”18 OC Dealer WWW.OCADA.ORG

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Dealer Rides?Let us know about yourDealer Ride.Contact either Cristin Collings,ccollings@ocada.org or JohnSackrison, jsackrison@ocada.org atthe OCADA office.We Specialize in Servicing AutomobileDealers’ Landscape Maintenance Needs.Let Us Show You How to Get the Most Out of YourMaintenance for Less Money Than You’re Paying Now!Can you tell which ofthese applicants is aconvicted felon?We can.Providing: Background Investigations Drug Screening Employee Hotline On-Line Applications – E-App E-Verify Employment Authorization Full Service HR Services to Auto Dealers for Over a Decade Red Flag Solutions• Cut Cost Now• Stable Billing• Get a BasePrice Every Month• Tent Sale Clean-Up• Mulching of Planters• Meet Your Yearly BudgetsOne Color ChangePer Year Included inMaintenance ContractDirect Phone ContactWith Your Supervisor••On-Call Emergency Support •Orange & L.A. County •For Information, Contact:(800) 716-7773Stuart Barlow • Ext 105[sbarlow@erelations.com]Bryon Bowlby • Ext 107[bbowlby@erelations.com]THE AUTO DEALER SPECIALISTCall or Fax Us Today for a FREESite Evaluation and EstimateOFFICE: (714) 771-1554 / (714) 497-6687L.A. COUNTY: (562) 842-6245 FAX: (714) 771-1560EMAIL: MParkMaintenance@aol.com LICENSE #771432ASSOCIATE MEMBER ORANGE COUNTY AUTOMOBILE DEALERS ASSOCIATIONEmployee Relations, Inc.www.erelations.comProud Member of the Orange CountyAutomobile Dealers AssociationFALL 2008 ⎢21

OCADA AutomotiveTechnicianInternship ProgramFiveStudentsin FirstYearThe OCADA Student Automotive Technician RecruitmentProgram kicked-off in 2008 to address the increasing need forautomotive technicians at Orange County dealerships and providecareer opportunities for automotive students. This program wasdesigned to increase awareness of automotive career opportunitiesand to actively recruit students to participate in internship opportunities,creating an early career path for students as well as openingthe door for future employment at Orange County dealerships.A selection of First and Second year automotive students atCypress, Fullerton, Golden West, Saddleback and Santa Anacolleges were given the opportunity to intern at a participatingdealership, share their automotive knowledge, and gain valuableexperience in technical skills, dealership operations and generalbusiness practices. All students who successfully completed theinternship were awarded a one-year scholarship to further theireducation and prepare them for a career at an Orange Countydealership. It was an outstanding opportunity to take upcomingautomotive technicians for a test drive. Participating dealershipsponsors were able to observe first-hand the interns’ skills, workethic and interaction with other personnel and 4 out of the 5 werehired at the end of their internships.Don’t be left out next year!OCADA will have even more eager, motivated, techniciansavailable for the internship program in 2009.Contact Sean Taylor @ 714-424-6090 to participate in thesummer of 2009.Junnior RodriguezCypress CollegeHired at Hardin Honda“The production of the technician that hewas mainly working with went from 35%to 40% just because of all the little thingshe could do to speed things up.”–John Yakel, Service Manager, Hardin HondaNoe CanasGolden West CollegeHired at South Coast Toyota“Our intern showed a lot of promise.He was a hard worker and costeffective. He allowed us to keep costsdown and the goal is to nurture himinto an experienced, good technician, and any time that can happen,that’s a good thing for us!“–Fred Potter, Service Director, South Coast ToyotaCesar HernandezCypress CollegeHired at Suzuki/Kia Depot“We definitely saw an increase in productivityeven if it was just a few hours a day. He more thancovered the costs for himself and we found a goodreliable, capable technician.”–Chris Guiliana, Service Manager, Suzuki Kia DepotJerry EllisSanta Ana CollegeIntern at Crevier BMW“Jerry was a bright young student who waseager to learn. He really helped us out withsome of the more basic tasks in the department allowing our more seniortechnicians to spend more time working on advanced repair orders.”–Jake Logan, Service Manager, Crevier BMWKen OlsonGolden West CollegeHired at Connell Chevrolet“Connell Chevrolet has always been verysupportive of the programs that the localcolleges offer to help new technicians getinto the industry. Our intern, Ken Olson, did a lot of things to help freeup our more experienced technicians to do bigger jobs, which madeour department more efficient. We actually ended up bringing Ken onas part of the team after the summer internship and are looking forwardto participating again this summer.”–Brett Pate, Service Manager, Connell Chevrolet22 OC Dealer WWW.OCADA.ORG

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AN UPDATE FROM CAPITOL HILLBY: CONGRESSMAN JOHN CAMPBELLEconomic StabilizationIt is no mystery and I do not need to tell you that the current financialturmoil has deeply affected the automotive industry. For instance, Ihave heard in many cases GMAC is not lending to anyone possessingless than a 700 credit rating; the national median credit score accordingto Experian is 678. This effectively limits the number of potentialclients and that certainly is not good for business. The credit marketsare frozen, and the thawing won’t begin until banks start trusting eachother again. Let me explain what the latest developments have been.In the past several weeks, the news of the day has been focused onthe economy. As I am sure you know, Congress passed the EmergencyEconomic Stabilization Act of 2008, which was signed by thepresident, and is now law. The Senate passed the bill and it includedyes votes from a wide range of the political spectrum includingboth Senators Obama and McCain, both California Senators, andthe most conservative member of the Senate, Tom Coburn (R-OK).It then passed the House and included yes votes from The Speaker,Majority Leader and Minority Leader.I voted in favor of the bill and was a strong advocate of it. I believethat we as a society have no option but to do this. And it must be doneat such a magnitude that it completely solves the problem. We hadall hoped that the Fannie/Freddie rescue would fix the problem. Itdidn’t. We needed to make sure that this is big enough to do it.The recent move by Treasury to purchase preferred stock in bankshas been described as a “nationalization” of these banks. It is not. Firstof all, we gave the Treasury very broad authority in the Rescue bill toreact to rapidly changing economic conditions. When we passed thebill two weeks ago, it was not anticipated that capital injections intobanks would be necessary. It was thought that the liquidity providedby the asset purchases would be enough. But in those interveningtwo weeks, further deterioration of the credit markets worldwidenecessitated this coordinated move with nearly every industrializedECONOMIC STABILIZATION - Continued on pg 26OCADA Member Service HighlightLabor Law PostersWe know that keeping your dealershipin compliance is a constantchallenge, so the Orange CountyAutomobile Dealers Association has committedto purchasing and distributing allstate and federal labor law posters andupdates to each of its members. Neveragain will you have to decipher a myriadof confusing solicitations to maintainup-to-date posters in your dealership. Wepurchase and send our members all themost recently updated labor law postersfree of charge!A new set of posters areexpected to be released in thefirst quarter of 2009, but don’tworry, OCADA will make surethat you get them as soon asthey are available.If you would like to order additionalsets of labor law posters or require postersin Spanish please contact Jaime Sterling at714-424-6090.FALL 2008 ⎢25

ECONOMIC STABILIZATION- Continuedcountry on earth. The US government willbuy newly issued preferred stock in thesebanks. The characteristics of this newlyissued preferred stock will be identical inevery bank, and these are the specifics: The stock is non-voting because we reallydon’t want the Treasury departmentsitting on the board of every bank. Thatcould move us towards nationalization.This avoids nationalization. The dividend rises so that the cost ofkeeping the preferred stock outstandingbecomes prohibitive over time so the banksare encouraged to buy out the Federalgovernment as soon as they can afford to.So, there are incentives in place to insurethat this is not a permanent investment. The warrants give the taxpayer upsidepotential so that if the stock price of a bankgoes up, the taxpayer gets to participate inthat gain and make a profit. The program is optional so banks arenot forced to participate. But manywill because it will enable them to loanagain and will secure their capital basein these troubled times. Only regulatedbanks or bank holding companies mayutilize this program.Banks worldwide stopped lending toeach other in late September. That is simplybecause no bank trusts any other to pay themback right now. The first sign that we arestarting to reverse the “freezing” will be wheninterbank lending starts again. The othermajor problem has been in the commercialpaper market where major corporations goto borrow money to meet short term needslike inventory and payroll. Virtually nocommercial paper from any corporation (nomatter how strong or profitable) has tradedsince September 10th. That is why the Fedwill begin buying new issues of commercialpaper October 27th. When Money MarketFunds (major purchasers of commercialpaper) begin buying and trading this stuffagain, that will be the second major signthat markets are heading back to normal.Home loans, car loans, and business loanswill continue to be hard to get until thesetwo “freezes” reverse.The shock to the economy will be longand deep and broad. That’s why I believethat we are looking at an extended period ofreduced economic activity even if all of theseactions work. The stock market (as measuredby the Dow Jones and other indices) is asymptom of the problem but it is not theproblem. It is reacting to the uncertaintiesof the credit markets and their impact oncorporate earnings. Many corporations, evenin sectors which are not directly affected bythe credit freeze, are seeing reduced earningsas their borrowing costs increase. Othershave more direct impacts from the lack ofcredit and a cautious consumer attitude.There will be some hard decisions tobe made in Washington next year, but restassured I will be working hard to make sureyour customers return and business startsto flow again. This problem transcends thepolitics of Republican and Democrat, this isa global problem that needs to be addressedwith firm resolve, and it is my sincere hopethat once the 111th Congress begins, we canbegin to work on the task at hand.26 OC Dealer WWW.OCADA.ORG

WelcomesOur NewAssociateMembersWelcome to our New Associate Members:Circle, IncCircle Inc. is an authorized service provider of HP, Lexmark, and Xerox laser printers. Mission is to reduce clientcosts and headaches associated with the service, support and supply of laser printer, fax, and copier fleets.Contact Derek Park at 800-635-8558 or email derek@thecircledelivers.com.IronStorm CorporationIronStorm Corporation specializes in helping automobile dealerships maximize their return on investment throughinstallation of tracking systems, training and consulting.Contact David Neighbors at 714-745-3922 or email dneighbors@ironstormcorp.com.ABC Companies, Inc.ABC Companies, Inc. is a full service motorcoach transportation provider-including bus sales, service, parts,leasing and refurbishment center.Contact Clint Guth at 714-740-8888 or email cguth@abc-companies.com.Barth Berus & Calderon, LLPBarth Berus & Calderon, LLP is a law firm specializing in wealth management and financial services.Contact Tina Barth at 714-704-4828 or email tina@hmbfinlaw.com.FALL 2008 ⎢27

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16th Annual OCADAHigh School AutomotiveTechnology CompetitionSaturdayJanuary 31, 2009Hyundai Motor Headquarters9am to 1:30pmFor more information on thecompetition or sponsorship opportunities,please contact Sean Taylor @ 714-424-6090.The top 12 high school seniors in OrangeCounty are preparing to represent thebest-of-the-best in the 16th AnnualOCADA Automotive Technology Competitionwith the winners competing for achance at a college scholarships.The top six teams have each been pairedwith a local Orange County dealership totrain for the fi nal hands-on competition.Each dealer will train these students forthe competition and provide a car that thestudents will “debug” during the event.The winning team will be sponsoredby OCADA to compete in the NationalAutomotive Technology Competition held inconjunction with the Greater New York AutoShow in New York City in April.The participating dealerships and highschool teams include:San Clemente High School ................. Allen HyundaiMission Viejo High School .. Infiniti of Mission ViejoLoara High School ...........................Toyota of OrangeNorth Orange County ROP ....................Hardin HondaBuena Park High School .....................Renick CadillacSunny Hills High School .................Connell ChevroletFALL 2008 ⎢29

SurvivalTipsfor Tougher TimesBY DAVE ANDERSONIwas recently back onMSNBC’s Your Business asa guest panelist. One ofthe show’s segments is calledSurvival Tips, where the guestsgive their sixty-second answerto the host’s question. Followingis the question and my answers.My hope is that you will findthem relevant to improving yourown leadership style wheneverthings turn tough.Question: What are your best survivaltips for prospering in a recession?1 Cut once and cut all. When you’retrimming expenses, get it all over with atonce. If you cut the bottled water this week,fire the cleaning service the next week, andthen lay off two employees the week afterthat, it’s like Chinese Water Torture thatcontinues to torment and distract people.After the cuts are made, bring everyonetogether and let them know why everyone’sjob is safer as a result.2 Communicate honestly and often.In uncertain times, people want to be keptinformed. When they don’t hear from the leader,they tend to assume the worst. Disappointmentis easier to handle than anxiety.3 Learn and adjust. Since a downturnalways exposes the sins of the good times,take notice of the consequences you’re reapingfor getting off track during more robustperiods, learn from them, and don’t repeatthem when business turns back upward.4 Remain visible and accessible.Lead from the front. Stay engaged. Avoidthe natural tendency to develop a “bunkermentality” when things are tough. Point toa better day ahead. Remember the words ofNapoleon, “Leaders are dealers in hope.”5 Convert downtime to prime time.Use the down time that slower businessbrings to keep your people busy by havingthem reconnect with their client base, trainand upgrade skills, and increase their focuson prospecting. People cannot be inspiredwhen they are bored. Keep them busy andfocused with productive activities that leadto eventual results.© Copyright 1999–2008 The DaveAnderson Corporation. All RightsReserved.30 OC Dealer WWW.OCADA.ORG

Orange County Automobile Dealers Association125 Baker St. East Suite #262Costa Mesa, CA 92626PRSRT STDU.S. POSTAGEPAIDSALT LAKE CITY, UTPERMIT NO. 6699THIS MAGAZINE IS DESIGNED AND PUBLISHED BY NEWSLETTERS INK CORP. 1.800.639.0465