SCALE MODELS 563-875-2436, x226 502 5th Street NW, Dyersville, IA 52040 janeertl@dyersvillediecast.com 

### Section 101 Request for Exemptionfrom 100ppm Lead Content (i) 

### A detailed description oftheproduct, class of product, material, or componentpart, which contain lead in excess of100ppm, andall relevantdata on manufacturingprocesses orprocurementprocesses which make itimpracticable ornot technologicallyfeasible to manufacturesuchproductby removing the excess lead (over 100ppm) ormaking the leadinaccessible. THE PRODUCT The products are die-cast ride-on pedal tractors, scaled for children ages 3-10. Attached is a photo representation ofthe product line l 

### (Attachment 1)
. The components in question are the aluminum metal die-castings, listed below
. All ofthese components are commercially powder coated at our facility. Powder coating, as well as the protective guard added to the bottom ofthe body casting at final assembly, makes the lead inaccessible to a child:2

• Body castings (right 

### & left sides). Average weight 

### = 6 Ibs each - 

### (Attachment2) • Rear wheel hubs (2 per unit). Average weight 

### = .5 Ibs each - 

### (Attachment3) • Wide front axle yoke (only ifthe replica requires front tires in a wide front-end formation - 1 per unit). Average weight 

### = 2.5 Ibs - 

### (Attachment4) • Wide front-end adaptor bracket (only ifthe replica requires front tires in a wide front-end formation - 2 per unit). Average weight

## =.4 Ibs each - 

### (Attachment5) THE DIE-CAST MATERIAL - ALLOYS Die-casted products are manufactured via one offour commercially available alloy families: 3 aluminum, magnesium, zinc or zinc-aluminum. The major considerations to determine the best alloy family for the product include : cost 

### & weight, structural properties, surfacing finishing 

### & coatings, corrosion resistance; and bearing properties 

### & wear resistance. Aluminum is the best alloy ofchoice for our application. The reasons for selecting an aluminum alloy for pedal tractor production over the other alloy familiesinclude : • Weight - Zinc is 2.5 times the weight ofaluminum
. A child's pedal tractor processed in aluminum has an approximate weight of 16.5 pounds. The same castings processed in zinc would weigh approximately 41.25 pounds. The assembled weight of an assembled 

### aluminum pedal tractor is approximately 35 pounds. 4 In 

### zinc the assembled weight would be 60 pounds.s

I The promotional flyer chosen is from our 2009 product line to CNH. This page from our flyer was chosen as it shows narrow front and wide front versions of pedal tractors. The back side shows 1 :16 scale farm toys, made of zinc. Within the scope of this submission we focus directly on children's pedal tractors. 210" wheel included in each photograph for size reference purposes, only
. 3All data concerning the die-cast industry is referenced from NADCA Publication #402; NADCA Product Specification Standards for Die Castings. ©2009, 

## i h Edition For more information on North American Die Casting Association see: www.diecasting.org. 4 The die-castings referenced in Exhibits 2-5 account for 16.5 Ibs of the total assembled weight of 35 Ibs. Therefore, the balance of the components weighs 18.5 Ibs
. In addition, to die-cast a product there is a 10% September 29, 2011 Page 1 of 13SCALE MODElS 563-875-2436, x226 502 5th Street NW, Dyersville, IA 52040 janeertl@dyersvillediecast.com 

### Section 101 

### Requestfor Exemptionfrom 100

### ppm Lead Content Assuming the end-user is question weighs 80 pounds the zinc product would be 75% oftheir total body weight. Virtually impossible for the average 80 pound child to maneuver. • Cost - Aluminum is the lowest cost alloy per unit ofvolume. When factoring the large number of additional components necessary to complete the toy aluminum is an economical choice. The product's overall cost is > $125.00 per unit. 6 The cost ofthe aluminum is approximately 7 $20.33 or 16% ofthe overall cost. • Structural Properties - not a majorfactor in the decision to cast pedal tractors in aluminum alloys over zinc alloys. Yet, do we address thefact that we own aluminum presses forother purposes and found a creative outlet to increase our machine utilization. For instance, ifwe decided to retool products away from aluminum die-casting and instead, use plastic molding, our R&D, tooling costs and machinery & equipment costs would make this a poor investment. Our customers prefer the durability of metal farm toys over plastic farm toys. • Surface Finish 

### & Coatings - all die-cast products requiring surface finishing from either ourzinc or aluminum casting departments can be treated with a variety of mechanical or manual surface finishing process as well as powder coating. Surface finishing & coatings is not a deciding factor for manufacturing pedal tractors in aluminum over zinc
. Yet, we utilize a state-of-the-art powder coating process and have been powder coating all of our toy products since 1990. Therefore, our machinery, equipment and processes are in place. All metal surfaces exposed to a child are powder coated or contained by the addition of a steel chain guard enclosure under the bottom ofthe body casting. Our QualityAssurance and ISO 9001:2008 processes verify commerCially acceptable standards. • Corrosion Resistance - Powder coating is the best finish we can apply at ourfacility. Powder coating is acceptable for all our toy application. Corrosion resistance, such as salt spray, anodizing, plating, e-coating etc., is not a concern ofthe toy industry. Therefore, we are able to select A380.1- the most universal and economical aluminum alloy commercially available in North America. • Bearing Properties 

### & Wear Resistance - the intended use ofthe product is for child's play or display purposes. In relationship to the bearing properties and wear resistance in other industries serviced at Dyersville Die Cast, Bsuch as the outdoor lighting industry, boating industry, etc., a force placed on a pedal tractor by a child is minimal.

material factor above the 16.5 Ibs to account for die configuration (gates, runners, etc.) which are considered as self-generated scrap and re-melted at the furnace. SSince zinc is 2.5 

### * the weight ofaluminum, 16.5 Ibs 

### * 2.5 = 41.25. 41.25 Ibs + 18.5 Ibs = 59.75 Ibs or" 60 Ibs. G16
.51bs 

## * 1.10 (scrap factor) = 18.15 Ibs. 18.15 Ibs 

## * $1.12 (today's cost for A380.1)" $20
.33 7 $20.33 / $125.00 = $16% BSee www.dyersvillediecast.com the website ofour sister company for details on our processes. Our core competency is aluminum die-casting yet we have a number ofvalue-added other processes. September 29, 2011 Page 2 of 13SCALE MODELS 

### 563-875-2436, x226 502 5th 

### Street NW, Dyersville, IA 52040 j

### aneertl@dyersvillediecast.com 

### Section 101 Request for Exemptionfrom 100ppm Lead Content Scale Models has been afarm toy manufacturer since 1978, mainly producing zinc replicas of historical and modern farm tractors & implements
.9 

### In 1994 we began manufacturing aluminum die-cast pedal tractors. The aluminum alloy selected was A380.1, the widely used commercial alloy, offeringthe best combination of material properties, ease ofproduction, accessibility and cost. The pedal tractor components in question in Exhibit 2-5 are manufactured via the aluminum die-casting process. As stated above, the standard commercial aluminum alloy used for pedal tractors is A380.1. Today's London Metal Exchange (LME) price for A380.1, delivered to Dyersville, is $1
.12/pound
.1O 

### THE DIE-CAST MANUFACTURING PROCESS The die-casting process begins with an alloyed ingot of metal, which Is melted to a temperature between 1200-1400 degrees Fahrenheit. The molten metal is poured into acold-chamber press containing a heat-treated steel mold (die) configured to the end user's specifications
. Underthe desired pressure the molten metal solidifies within the cavity ofthe mold to create the metal casting, or part. After the casting is properlyformed to the configuration ofthe mold, the mold is open in halfso the casting can be ejected or released from the mold
. The casting is either rapidly cooled via aquenching process or placed on a designated cooling rack, platform, conveyor belt, etc. After the casting is cooled to an appropriate temperature the excess metal (scrap) is trimmed from the casting. The trim press contains atrim die configured into the design ofthe final casting. Trimming is usually accomplished via a horizontal orvertical trim press, which sheers the runner, gate and overflows (self-generated scrap) from the casting
. Next, the casting may need additional value-added processes, such as, flatness check, deburring, scale weighing as well as an inspection check. Acceptable castings are placed in the designated containerfor movement to the next department. The unacceptable castings and/or self-generated scrap are recycled and re-introduced to the meltingfurnace along with additional raw ingots. When a die-casting facility, such as Dyersville Die Cast, melts various alloys the proper material handling and quality control of all self-generated crap is extremely critical. As mentioned above, each alloy has its unique characteristics within the alloy family
. As a custom die-caster, Dyersville Die Cast processes six different alloys for a large number of customers. To verify proper alloy usage we color-code all raw

9 

### Zinc alloys have lead content < 

### 100 ppm. 10 

### Pricing explanation from Allied Metal Company: When you refer toA380.1 on the "LME, " there are 

### 2 types: 1. Available worldwide. 2.Available in North America. Iassume you wouldwantNorthAmerican Production. Next is thepricing structure... In order to getLMEA380.1 "NorthAmericanSpecialtyAluminumAlloy" (NASAAC) delivered to Dyersville, IA there are severalsurcharges along the way. 1"andforemost, you need topay cash andwire the money. Next, you have all kinds of surcharges... 1. If you specify a brand itis apenny /pound. Ifyou specifyingot over t-bars it is apenny/pound. Ifyou wantdelivery outof Chicago, it is apenny/pound. To put it on a truck the warehouse charges apennyapound. Lastfigure $.02 tofreight it to Dyersville. So...today's NASAACprice is $1.03/lb. Ifyoufactor in all ofthe above charges you are around$1.11-$1.12 delivered. Oh, anddid Imentionyou can'tgetit within the next30-90days since a lot ofthephysical materialis tied up infinancing deals... 

### ? September 29, 2011 Page 3of 13SCAlE MODelS 563-875-2436, x226 502 5th Street NW, Dyersville, IA 52040 janeert,@dyersvi"ediecast
.com 

### Section 

### 101 Requestfor Exemptionfrom 

### 100ppm Lead Content ingots as well as take alloy samples from melting furnaces on a daily basis. The drawn samples are formed from a 2" diameter circular ingotfiguration. When cooled, the sample is faced via a lathe to form a smooth, flat surface. Next, the chemical make-up ofthe sample is tested via our in-house spectrometer. 11
THE DIE-CAST RECYCLING PROCESS 

### Die-cast alloys offer the world and environment the most advantageous recycling options ofall nonferrous materials, with a proven recycling infrastructure in place. Die-cast parts, such as found in automobiles and trucks, recycle or reclaim over 85% ofthe aluminum from each vehicle. The circle of recycling to create a die-casting is very simple, for example: 

### • recycled items, such as vehicles, are collected; • the items are re-melted with otheraluminum scrap to create alloyed ingots; • alloyedingotsandself-generatedscrap are used to create a die-casting. From a recycling standpoint, die-casting is avery 

### green industry. Die castings are not hazardous waste and pose no problems in handling or reprocessing, as some nonmetallic parts do. Aluminum die-casting alloy recycling has been in place since from the beginning of custom die-castings production in the 1930's. A wide variety of aluminum scrap can be reprocessed to produce all ofthe most widely specified die-casting alloys
. Over 95% ofthe aluminum die-castings produced in North American are made of post-consumer recycled aluminum. Since the production of recycled aluminum alloy requires approximately 5% as much energy as primary aluminum production, there is a dramatic conservation of non-renewable energy resources. As an example, die-castings, as opposed toforgings or extrusions, can make far greater use of recycled materials. What is impossible to control in alloy production is the chemical make-up ofeach heat. An alloy will be 

### chemically within specifications overall, but a spot check ofthe alloy properties will show chemical variety. In other words, alloy ingots are not homogeneous. 12

II Dyersville Die Cast uses a Baird FSQ foundry Spectrovac Spectrometer, SeriaI1l2572A. The daily ingot samples are analyzed and any out of spec results are discussed with the Aluminum Die Cast Manager or his representative. The sample data is stored to the hard drive and also printed out and saved with the actual ingot sample. ]2 The variation is alloy sample testing will be discussed in Section (iv). September 29, 2011 Page 4 of 13SCAlE MODELS 563-875-2436, x226 502 5th Street NW, Dyersville, IA 52040 janeertI@dyersvillediecast.com 

### Section 101 

### Request for Exemptionfrom 100

### ppm Lead Content Attached is a certified analysis for A380.1, received from oursupplier, Allied Metal Company. 13 

### (Attachment 6) In addition, Allied Metal is aware ofthe Section 101 decreased lead content necessary for our toys. Attached is an email correspondence addressing how Allied Metal is assisting our needs by setting aside A380
.1 heats exhibiting <300 ppm chemistry. 

### (Attachment 7) The decreased lead content is available, by chance only, but not consistently obtainable.

13 Allied Metal Company, 1300 Kostner Avenue, Chicago, Il60651, 312-225-2800
. www.alliedmetalcompany.com Metal ingots are purchased from four suppliers. Allied is our largest and oldest supplier of aluminum alloys within the 41-year history of Dyersville Die Cast, our sister company. September 29, 2011 Page 5 of 13SCALE MODELS 563-875-2436, x226 502 5th 

### Street NW, 

### Dyersville, IA 52040 

### janeertl@dyersvillediecast.com 

### Section 101 

### Request for Exemptionfrom 100

### ppm Lead Content (ii) 

### Whether theproduct, class of product, material

### orcomponentpart, which contains lead in excess of100 ppm is likely to beplacedin themouth

### oringested, taking into accountnormalandreasonably foreseeable use andabuse of suchproducts, class of product, material

### orcomponentpartby a child. THE ASSEMBLY OF THE COMPONENTS IN QUESTION 

### For shipping purposes, pedal tractors require final assembly by the adult end-user. Attached is our Pedal Tractor Assembly Instruction Sheet 

### (Attachment 8). General assembly includes: • The main body, this casting assembly is commercially powder coated and ready for all additional components. • Chain assembly, which includes all components affiliated with the ability to power the unit via the foot pedals, chain, pedal sprocket, and rear axle sprocket. • The front axle assembly, which includes the front wheels and commercially powder coated wide-front mounting brackets and wide-front axle assembly (if needed for awide-front end tractor version). • The mounting ofthe commercially powder coated rear wheel hubs, rear wheels, hub caps, axle pin and plastic fenders (if included with the specific model). • The plastic seat, plastic steering wheel and vinyl decorative decals. • A properly assembled pedal tractor does not permit the child to come in contact with unpainted powder coated metal. THE INTENTED USE OF THE PRODUCT 

### A child, typically between the ages of

### 3 and 

### 10, is the appropriate end-user for our pedal tractors. The assumption is that the product is appropriately assembled by an adult. Pedal tractors are typically used indoor in a basement (in mid-west winters), shed or other out-building. Or used outdoors in a garage, on a driveway, ayard, etc. A pedal tractor requires a lot of physical exertion to maneuver by achild. The youngest children may only sit on the product, holding the steering wheel, under adult supervision. Normal use would be: • The child approaches the product from the left or right hand side, possibly touching the top of the body casting and/or steering wheel when reaching the toy. • Positioning their body at an angle to face the toy, the child grabs the plastic steering wheel with one hand, possibly grabs the plastic seat with their other hand.
o 

### The child straddles the body casting between the steering wheel and seat. At this pOint, the child is facing the front ofthe tractor typically with both hands on the steering wheel. • The child sits on the seat. • When seated and holding the steering wheel, the child raises his or her feet to the foot pedals. • The power to move the toy comes from the strength ofthe child's foot action. While pedaling, the child is pulling on the steering wheel. • The child turns the steering, similarto steering a car, in the direction the child wishes to travel.
September 29, 2011 

### Page 6 of 13SCALE MODElS 563-875-2436, x226 502 5th Street NW, Dyersville, IA 52040 

### janeert I@dyersvillediecast.com 

### Section 101 Requestfor Exemptionfrom 100ppm Lead Content
• To dismount, the child removes his or herfeet from the pedals, stands on the ground, swings his or her inside leg away from the toy and simply walks away. Therefore, under normal use, the child is primarilytouching the plastic steering wheel with his or her hands. The steering wheel is used to steerthe pedal tractor as well as to provide leverage while pedaling. An additional area the child may touch is the hitch pin on the back ofthe pedal tractor. The purpose ofthe hitch pin is to connect or disconnect a pull behind object. Outside ofthe body castings, the aluminum die-cast components itemized on page 1 are not touched by the child during normal use. The typical areas ofthe body casting which may be touched during play, but not actual use, include the front or top ofthe body casting, the center ofthe body casting between the seat and steering wheel and the hitch pin area at the back ofthe body casting. All metal casting surfaces are powder coated and too large for a child to place in their mouth. POTENTIAL LEAD ABUSE OF THE PRODUCT 

### The smallest die-cast component, front -end adaptor bracket, is approximately 4" x 3" and weighing .4lb 

### (Attachment 5). The end-use adult purchaser/customer is required to assemble this part to the body casting. For the exact location ofthis component, see the Pedal Tractor Assembly Instruction Sheet 

### (Attachment 8)
. All metal castings are powder coated with lead-free substrates. Attached is the MSOS Section 2: Composition/Information of Ingredients 

### (Attachment 9)
. 

### A child would be not exposed to the raw component castings nor be affected by lead paint on the powder coated casting. A steel plate, known as a chain guard, covers the bottom ofthe body castings so there is no access for the child to touch the aluminum casting. Scale Models believes the opportunity for a child to be exposed to a lead concentration above 100 ppm is impossible
. Only the body casting 

### (Attachment 2) is in direct contact with the child during normal play
. The size and weight ofeven the smallest aluminum casting potentially containing lead 

### (Attachment 5) is impossible for a child to swallow. Plus, the component is located underneath the body casting and above the front wheel assembly, far away from where a child would normally play orsit on the pedal tractor.The need for adult assembly eliminates the possibility of achild becoming in contact with the aluminum castings as individual pieces. The product will not properly function without prior adult final assembly.

September 29, 2011 Page 7 of 13SCALE MODELS 563-875-2436, x226 502 5 th Street NW, Dyersville, IA 52040 janeertl@dyersvillediecast.com 

### Section 101 

### Request for Exemptionfrom 100ppm Lead Content (iii) Whetheran exemptionfor theproduct, class of product, material, 

### or componentpart will

### have a measureableadverse effectonpublichealth 

### orsafety, taking into accountnormaland reasonably foreseeable use andabuse. THE HEALTH 

### &SAFETY ASPECT OF THE PRODUCT The intended purchaser ofour products is adults as the products sell for greater than 

### $125.00. Our products are not something a young child could readily or easily purchase such as candy in a convenience store. Our toys are purchased by the consumer via one offour distribution channels: • Agricultural dealership parts departments • Regional farm-related merchandizing chain stores, such as Fleet Farm, Farm & Fleet, Tractor Supply Company • Toy shows or agricultural-related special events (collector edition promotional products) • Internet sales In many situations, our products are sold as special label promotional items commemorating a specific dated event. For many adults, the price makes the purchase awell thought out purchase instead ofan impulse purchase. The price and the durability ofthe product relate to a high quality product. The assumption is that the adult purchaser would not spend the money on this toy ifthey viewed it as harmful to their child or grandchild. Many purchasers had similar products when they were children
. Today they purchase our pedal tractor to add to theirfarm toy collection. Scale Models' die-cast pedal tractors have been on the market for 

### 16 years. Included with this submission is our Scale Models Collector Guide. This 

### 200+ page book gives a thorough explanation of our products and company history from 

### 1978
- 2006. When the Consumer Product Safety Improvement Act of

### 2008 (CPSIA) initially decreased the lead content from 

### 600 ppm to 

### 300 ppm, we destroyed (re-melted) over 

### 2000 sets of pedal tractor castings. Due to the highly recyclable nature of aluminum alloys we were able to reclaim the majority of the metal. Yet, this action resulted in an 

### $8000+ scrap loss as well as productivity and overhead losses. Destruction ofall raw material inventories was ourfirst course ofaction. Our second course ofaction was to submit written comments, electronically, to the CPSC prior to the February 

### 2010 public comment deadline
. Thirdly, in May 

### 2010 we contacted our United States Senators; Chuck Grassley and Tom Harkin as well as the CPSC for their assistance and support with this 

### Made in the USA niche product line. We have kept abreast ofthe CPSIA's actions and adhered to the changes. Our diligent reaction has cost us lost sales and lost customers. This change resulted in 

### 20 lost American manufacturingjobs and 

### $2-3 million in annual sales. Fortunately Dyersville Die Cast, Scale Models' sister company, was able to absorb the majority ofthe displaced employees. The lost sales to Scale Models are gone forever.
September 29, 2011 Page 8 of 13SCAlE MODELS 563-875-2436, x226 502 5th Street NW, Dyersville, IA 52040 janeertl@dyersvillediecast.com 

### Section 101 

### Requestfor Exemptionfrom 100

### ppm Lead Content (iv) Detailed information on the relied upon testmethodsfor measuring lead contentof products 

### or materials including the type ofequipment used

### orany othertechniques employedanda statementas to why the data is representative ofthe lead contentof suchproducts 

### ormaterials generally (MSDS sheets will notbesufficient to satisfy the representative testing criteria because theydo notshowsufficient information regarding lead content. Rather, the showing necessary to obtain a determination mustbe basedon objectively reasonable and representative testing ofthe material

### orproduct). Today, our annual toy sales are approximately $1 million, down from $3 million in 2008 (prior to the first decrease in lead content). A small business, such as Scale Models, cannot employ scientists to validate our products nor attorneys on staffto defend our actions. Product batch testing via a third party testing lab has been implemented. Following are test methods, which have been utilized or remain utilized in our process: THE TEST METHODS • ISO Quality Certification -In 1999 we completed the process to be a universally standardized quality manufacturervia the ISO 9000 family ofstanda rds systems. Today we are compliantwith the 9001:2008 requirements. Our Work Instruction WIDC-10 addresses Alloy Verification Process for Die Casting. 

### (Attachment 10) • External Raw MaterialsAnalysis - As mentioned above, we purchase our ingots from four different regional sources, with Allied Metal Company being our largest source. All truck loads (semis) received are accompanied with a certified metal analysis 

### (Attachment 6). • Internal Controls for Metal Handling - Our lead metal handler inventories each alloy by colorcoding the stacks of ingots. Likewise, each die-cast cell is color coded to represent the alloy being processed forthe job. Self-generated scrap is directly re-introduced to the furnace at each machine. • Internal Raw Materials Analysis - Daily we conduct an internal metal analysis with our Spectrometer. 14 

### Attached is the result ofour most current testing ofA413.1, which represents our most recent casting run for pedal tractors. 

### (Attachment 11) • Elemental Research -In May 2009, we conducted our first round ofthird party testing to comply with the CPSIA Act of 2008. Elemental Research LaboratorylS was selected. Their testing concluded that all components were within specification except for the aluminum body casting, manufactured from A380.1. The duplicate samples tested from this component were 625 ppm and 603 ppm. From here, we worked with Allied Metal to obtain an alloy containing <300ppm
.

14 For details reference Footnote 10 as well as

### Attachment 10 , WIDC-10 Alloy Verification Process for Die Casting. 15 Elemental Research LLC, 4601 Devonshire Road, Harrisburg, PA 17109
. In March 2009, Scale Models shipped a complete set of pedal tractor components to this lab for lead content testing. We know this data is obsolete but strive to show our pro-active approach to compliance ofthe CPSIA ruling. In reviewing the CPSC list of accredited labs, Elemental Research, LlC is listed
. Yet, via the Internet and by calling the phone number the firm cannot be found. September 29,2011 Page 9 of 13SCALE MODELS 563-875-2436, 

### x226 502 5th Street NW, Dyersville, IA 52040 janeertl@dyersvillediecast.com 

### Section 101 

### Requestfor Exemptionfrom 100

### ppm Lead Content Again, these results were received in May 2009 and today are obsolete. Yet, this testing verified that all othercomponents ofthe product were within acceptable lead content limits. 

### (Attachment 12) • Stork Twin City Testing Corporation - Third party testing was repeated for five toys castings samples in September 2010 by Stork Testing Lab, St Paul, MN. 16 

### (Attachment 13) The most current results are from September 2010. Ofthe five samples only one, TCTtl4438-3, atoy combine, was at 300 ppm. Additional testing was considered for inclusion with this report but time was ourconstraint due to the September30,2011 submission deadline. When we recently talked to Stork their lead-time would not allow us to have test results before October 2011
. • Technological Feasibility of Reducing lead Content to 100 ppm: Compliance Data - This memorandum, addressed to the CPSC Commission, contains an analysis often samples from one single piece of an aluminum alloy casting. The results ofthe ten samples ofthis single piece of material ranged from 82 ppm to 126 ppm with an average of 103 ppm . 17 

### (Attachment 14) The result ofthis larger sample proves the fact that alloyed aluminum is not a homogeneous product.

16 Stork Twin City Testing Corporation, 662 Cromwell Avenue, St. Paul, MN 55114 www.storksmt.com/tct STCTC is listed as an accredited lab for the required testing. Conversationswere held with Kevin Beck, Chemist, 651-645­ 3601. Turnaround for additional testing is > 2 weeks
. Therefore, to comply with our September 30, 2011 deadline we were unable to submit additional samples for furthertesting. 17 Memo for Office of Compliance to the CPSC Commission dated June 29,2011. September 29, 2011 Page 10 of 13SCALE MODELS 563-875-2436, x226 th 502 5 Street NW, Dyersville, IA 52040 janeertl@dyersvillediecast.com 

### Section 101 Requestfor Exemptionfrom 100ppm Lead Content (v) Anyotherrelevantdata 

### orinformation applicable to the request. HISTORICAL METHODOLOGY - Scale Model Toys As stated, Scale Models has been in the agricultural toy replica niche market since 1978
. Along with our sister company, Dyersville Die Cast, we are asolid, well-established manufacturer in our community. We are an Iowa-based, privately-owned S-Corporation with family leadership and management. We are strongly committed to American manufacturing. To learn more about Scale Models and our founder, Joe Ertl, please see our 2006 Scale Models Collector Guide, included with this submission
. HISTORICAL METHODOLOGY - The Farm Toy Industry The metal toy industry, including the metal farm toy industry, grew rapidly with the conclusion ofWorld War II. Manufacturing opportunities were growing, baby boomers were being born and new processes in metal melting and plastics were being developed. Priorto WW II the majority of metal toys were cast iron
. Outside ofthis statement, we believe the development and then consolidation ofthe industry is beyond the scope ofthis submission. Long story short, within the industry, we believe Scale Models is the only remaining USA die-cast metal toy, licensed manufacturer remaining
. All former manufacturers today importtoys from China
. 18 PRODUCT DEMAND As the farming industry consolidated from family farms with large families, to farming corporations and small farm families, the demand for farm toys has decreased. When Scale Models was established in 1978 there were 13 U.S. Original Equipment Manufacturers (OEM's). Today, there remain three major U.S
. OEM's; John Deere, AGCO and Case New Holland (CNH). Our significant decrease in sales began as the OEM's consolidated. Strategically, adapted our business model away from small toys (1:16 scale is the industry standard) to the pedal tractors. 

### See Scale Models Collector Guide. We focused on the niche, which we believed would be the most difficult to import as pedal tractors are large, heavy and lowervolume sales. PRODUCT SUPPLY The barrier ofentry into the pedal tractor niche market is expensive; from an R&D, tooling, and machinery standpoint. An additional barrier to entry is licensing. The major OEM's strongly control the use of their brands to protect their licensees and minimize knock-offs. We are fortunate to be a licensed vendor to all OEM's but without a Section 101 exemption we cannot manufacture product to cover the minimum guaranteed royalties we must contractually pay.

18A Google search

### for Farm Toy Manufacturers lists Tomy (Ertl brand toys), Spec Cast and Scale Models, all Dyersville, Iowa entities, as first page options. Of the three, Scale Models is the only remaining US manufacturer. Also included are National Farm Toy Museum, National Farm Toy Hall of Fame and a few Mom & Pop hobbyists, who build or customize farm toys but are not licensed entities. September 29, 2011 Page 11 of 13SCALE MODELS 563-875-2436, x226 th 502 5 Street NW, Dyersville, IA 52040 janeertI@dyersvillediecast.com 

### Section 101 Request for Exemptionfrom 100ppm Lead Content Today, our overall product demand has increased due to the scarcity (lack ofsupply) of our products in the marketplace. The scarcity is solely due to the CPSIA Section 1011ead content changes. As we stated earlier, the decreased ppm in lead content resulted in the scrapping ofover 2000 units ofsaleable toys, destroyed solely on the basis ofa date in time (August 14, 2009)
. These products have never been replaced. In the past two years we have been diligent with our actions to avoid violation ofthe lead content requirements. The imposed penalties are a risk we will not take. SCALE MODELS' SUBMISSIONS TO THE CPSC HEARII\lG PROCESS: As referenced on page 7 we actively communicated our concerns in the following manner: " submission to the public comment hearing prior to the February 16, 2010 deadline; " submission to Senators Chuck Grassley and Tom Harkin in May 2010; " additional submission to CPSC in May 2010. After the final CPSC ruling, we reviewed all materials available, including the statements from the Commissioners. We Sincerely appreciate Commissioner Nancy Nord's comments as she spoke our sentiments as an American farm toy manufacturerl 19 THE BICYCLE INDUSTRY With interest, we have followed the lead content exemption given to the bicycle industry via the Bicycle Parts Suppliers Association (BPSA). The research conducted by the Gradient Corporation20 in reference to metal exposure to children also reflects the pedal tractor industry. We believe the pedal tractor industry has more metal body surface but less metal exposure, due to the lack ofsteel and brass. We assume that the number of hours a child may spend on a pedal tractor is less than the number of hours of play on a bicycle. The scientific evaluation by The Gradient Corporation ofcomponents manufactured from certain lead-containing alloys used within the bicycle industry concluded:

19 Excerpts from Commissioner Nancy Nord's July 13, 2011 statement: This is notthefirst time the majority has disregarded the costs to both businesses and consumers. Businesses told us that theyaren'tsure they can get the materials 

### to makeproducts to this onerous newstandard. ...it is going to be much more expensive... They told us they'll have to stop makingsomeproducts, products thatare safe andlegal right now. Some toldus they will go outofbusiness entirely, especially small businesses who can'tget the materials they needand can't risk CPSCpenalties... As the majority went through theprocess they used

### to reach their conclusion, we heardfrom companiesbig and smallacross the children's market that, even ifit is possible 

### to meetthe 99.99% standard, it is notpossible to do so reliably with recycledmaterials. There isjust too much variability in the quality andcomposition ofthose materials. Faced with massive enforcementpenalties, the companies cannotafford 

### to risk making aproduct that is only 99.98% lead-free... 20 Exposure Evaluation of Manufactured Components in Consideration for Exclusion from the Consumer Product Safety Improvement Act (CPSIA), January 26,2009. September 29,2011 Page 12 of 13SCALE MODELS 563-875-2436, x226 502 5th Street NW, Dyersville, IA 52040 janeertI@dyersvillediecast.com 

### Section 101 Request for Exemptionfrom 100ppm Lead Content "We have determined that the lead content in brass, aluminum, andsteelalloys in certain components oftheseproducts does notpresentany risk ofa measurable increase in bloodlead levels in children and thatan exclusion is therefore appropriatefor such components. 1/21 Components used in bicycle manufacturing are more complex in design and in materials than components used in our pedal tractor products. The age grade for both products is similar, with bicycles being sized to fit larger and older children and adults. The primary hand position on a pedal tractor is the plastic steering wheel. On a bicycle it would be the steel handlebars, possibly encapsulated with plastic ortaped hand grips. It is our beliefthat a child exposed to a pedal tractor also has exposure to products referenced in the BPSA's exemption; such as a bicycle, joggerstrollerand/or bicycle trailers. Since the CPSC has exempted the bicycle industry from the Section 101 lead content requirements t is our hope that the Commission will likewise exempt Scale Models' American-made pedal tractors from the same requirement.

21 This is a direct quote from the Introduction of the above referenced Gradient Corporation report. September 29,2011 Page 13 of 13Corporate office ofdivisions: 301 Fifth Street NW 

### SCALE MODELS and PO Box 327 

### DYERSVILLE DIE CAST Dyersville, Iowa 52040-0327 phone 563-875-2436 fax 563-875-2753 

### September 29,2011 www.sca/emode/toys
.com www.dyersvil/ediecast.com 

### Office ofthe Secretary US Consumer Product Safety Commission 4330 East West Highway Bethesda, Maryland 20814 RE: Section 101 Request for Exemption from 100 ppm Lead Content 

### The Commission was notable to determine that]00ppm total leadcontent is 

### not technologically feasible. asstafffoundthatmaterials containingless than ]00ppm total leadcontent are commercially available in themarketplace formanufacturers. The above statement is taken directly from the CPSC Release 

## #11-278, dated July 15, 2011 . The above statement severely crippled ourfarm toy business on August 14,2011. This is our story: 

### We are anAmerican-made, Iowa-basedcompany with a 33-year reputation manufacturingfarm toys. Our niche market is 

### ride-onpedaltractors, sizedforchildren ages 3-]0. We sellnostalgia; with many productssoldtoparents andgrandparents with ruralAmerican roots. Ourpedaltractors arepurchased specifically for their children, grandchildren or for displaypurposes for adult collectors. Our tooling andequipment (investments > $]0,000,000) is designedto create aluminum die-castings fromA380.] alloy. Aluminum alloys are derived.from recycledscrapmetalto create ingots; ingots with leadcontent that is certifiedper heat but often greater than ]00ppm. Alloyedmetalis basedoff the quality of the scrap it

### is derived.from. Alloyedmetal is nota homogenousproduct, andnever will be. We are a smallmanufacturer with 20]] sales around$],

### 000, 000. The restrictions and penalties imposedby CPSC are nota riskwe arefinanciallywilling to take. We do notemploy attorneys or scientists. It breaks our corporate heart to exit thefarm toy business, a business our founder, Joe Ertl , hasparticipatedinforthepast 

### 65years. Yet, it

### is 

### notworth the continuedrisk, imposedby our government, unless we are grantedapermanentwaiver.from the CPSc. Therefore, please accept and approve our submission to the 

### Section ]0] RequestforExemption.from ]00 ppmLeadContent. It 

### is our hope that our request will be granted. Thank you. Sincerely,

Jane Ertl Executive Vice President 563/875-2436, x226 

### Five copies enclosed