Conditional Formatting Based on Multiple Text Values

Man, I just looked at it again and now I get it. I changed the rules slightly when I shouldn't have. I simply added cities in tab 2 and it works. I didn't really want the extra region column in there but at least I know how it works (although I don't fully understand what's going on in the formulas.


OK, now I'm trying to do the same thing in tab 1, column 2. I wanted text that was NOT "ON" to be red but it's not working (it's the last rule in the CF manager.