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it had imported or sold any spinning tops 

that did not comply with the lead paint 

standard. 

29. Schylling never intentionally or 

knowingly imported, sold or offered for sale 

any products that did not comply with the 

lead paint standard or other legal 

requirement. At all times relevant to this 

matter, Schylling’s actions were reasonable, 

were based on its good faith understanding 

of the operative facts and fully satisfied any 

and all standards of care. 

30. Schylling has entered into the 

Agreement for settlement purposes only, to 

avoid incurring additional expenses and the 

distraction of litigation. Accordingly, the 

Agreement and Order do not constitute, and 

are not evidence of, any fault or wrongdoing 

on the part of Schylling. 

Agreement of the Parties 

31. Under the CPSA, the Commission has 

jurisdiction over this matter and over 

Schylling. 

32. The parties enter into the Agreement 

for settlement purposes only. The Agreement 

does not constitute an admission by 

Schylling, or a determination by the 

Commission, that Schylling knowingly 

violated the CPSA. 

33. In settlement of the Staff’s allegations, 

Schylling shall pay a civil penalty in the total 

amount of Four Hundred Thousand 

($400,000.00) dollars. The civil penalty shall 

be paid in four (4) installments as follows: 

$75,000.00 shall be paid within twenty (20) 

calendar days of service of the Commission’s 

final Order accepting the Agreement; 

$75,000.00 shall be paid on or before the oneyear anniversary of the Commission’s final 

Order accepting the Agreement; $125,000.00 

shall be paid on or before the two-year 

anniversary of service of the Commission’s 

final Order accepting the Agreement; and 

$125,000.00 shall be paid on or before the 

three-year anniversary of service of the 

Commission’s final Order accepting the 

Agreement. Each payment shall be made by 

check payable to the order of the United 

States Treasury. 

34. Upon the Commission’s provisional 

acceptance of the Agreement, the Agreement 

shall be placed on the public record and 

published in the Federal Register in 

accordance with the procedures set forth in 

16 CFR 1118.20(e). In accordance with 16 

CFR 1118.20(f), if the Commission does not 

receive any written request not to accept the 

Agreement within fifteen (15) days, the 

Agreement shall be deemed finally accepted 

on the sixteenth (16th) day after the date it 

is published in the Federal Register. 

35. Upon the Commission’s final 

acceptance of the Agreement and issuance of 

the final Order, Schylling knowingly, 

voluntarily, and completely waives any 

rights it may have in this matter to the 

following: (1) An administrative or judicial 

hearing; (2) judicial review or other challenge 

or contest of the validity of the Commission’s 

Order or actions; (3) a determination by the 

Commission of whether Schylling failed to 

comply with the CPSA and its underlying 

regulations; (4) a statement of findings of fact 

and conclusions of law; and (5) any claims 

under the Equal Access to Justice Act. 

36. The Commission may publish the terms 

of the Agreement and Order. 

37. The Agreement and Order shall apply 

to, and be binding upon, Schylling and each 

of its successors and assigns. 

38. The Commission issues the Order 

under the provisions of the CPSA, and 

violation of the Order may subject those 

referenced in paragraph 37 to appropriate 

legal action. 

39. The Agreement may be used in 

interpreting the Order. Understandings, 

agreements, representations, or 

interpretations apart from those contained in 

the Agreement and Order may not be used to 

vary or contradict its terms. The Agreement 

shall not be waived, amended, modified, or 

otherwise altered, except in a writing that is 

executed by the party against whom such 

waiver, amendment, modification, or 

alteration is sought to be enforced. 

40. If any provision of the Agreement and 

Order is held to be illegal, invalid, or 

unenforceable under present or future laws 

effective during the terms of the Agreement 

and Order, such provision shall be fully 

severable. The balance of the Agreement and 

Order shall remain in full force and effect, 

unless the Commission and Schylling agree 

that severing the provision materially affects 

the purpose of the Agreement and Order. 

Schylling Associates, Inc. 

Dated: May 17, 2010. 

Jack Schylling, 

President, Schylling Associates, Inc. 

Dated: May 18, 2010. 

Victor E. Schwartz, 

Cary Silverman, 

Shook, Hardy & Bacon, LLP, 1155 F Street, 

NW., Suite 200, Washington, DC 20004– 

1305. Counsel for Schylling Associates, Inc. 

U.S. Consumer Product Safety Commission 

Staff. 

Cheryl A. Falvey, 

General Counsel, Office of the General 

Counsel. 

Dated: May 18, 2010. 

Melissa V. Hampshire, 

Assistant General Counsel, 

Alex Dennis, 

Attorney, Division of Enforcement and 

Information, Office of the General Counsel. 

United States of America 

Consumer Product Safety Commission 

CPSC Docket No. 10–C0004 

In the Matter of Schylling Associates, Inc.; 

Order 

Upon consideration of the Settlement 

Agreement entered into between Schylling 

Associates, Inc. (‘‘Schylling’’), and the U.S. 

Consumer Product Safety Commission 

(‘‘Commission’’) staff, and the Commission 

having jurisdiction over the subject matter 

and over Schylling, and it appearing that the 

Settlement Agreement and Order are in the 

public interest, it is ordered, that the 

Settlement Agreement be, and hereby is, 

accepted; and it is further ordered, that 

Schylling shall pay a civil penalty in the total 

amount of Four Hundred Thousand 

($400,000.00) dollars. The civil penalty shall 

be paid in four (4) installments as follows: 

$75,000.00 shall be paid within twenty (20) 

calendar days of service of the Commission’s 

final Order accepting the Agreement; 

$75,000.00 shall be paid on or before the oneyear anniversary of service of the 

Commission’s final Order accepting the 

Agreement; $125,000.00 shall be paid on or 

before the two-year anniversary of service of 

the Commission’s final Order accepting the 

Agreement; and $125,000.00 shall be paid on 

or before the three-year anniversary of service 

of the Commission’s final Order accepting 

the Agreement. Each payment shall be made 

by check payable to the order of the United 

States Treasury. Upon the failure of Schylling 

to make any of the foregoing payments when 

due, (i) the entire amount of the civil penalty 

shall become due and payable, and (ii) 

interest on the outstanding balance shall 

accrue and be paid by Schylling at the 

Federal legal rate of interest set forth at 28 

U.S.C. 1961(a) and (b). 

Provisionally accepted and provisional 

Order issued on the 26th day of May, 2010. 

By Order of the Commission. 

Todd A. Stevenson, 

Secretary, U.S. Consumer Product Safety 

Commission. 

[FR Doc. 2010–13088 Filed 6–1–10; 8:45 am] 

BILLING CODE 6355–01–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Transmittal No. 10–06] 

36(b)(1) Arms Sales Notification 

AGENCY: Defense Security Cooperation 

Agency, DoD. 

ACTION: Notice. 

SUMMARY: The Department of Defense is 

publishing the unclassified text of a 

section 36(b)(1) arms sales notification 

to fulfill the requirements of section 155 

of Public Law 104–164 dated 21 July 

1996. 

FOR FURTHER INFORMATION CONTACT: Ms. 

B. English, DSCA/DBO/CFM, (703) 601– 

3740. 

The following is a copy of a letter to 

the Speaker of the House of 

Representatives, Transmittal 10–06 with 

attached transmittal, policy justification, 

and Sensitivity of Technology. 

Dated: May 26, 2010. 

Mitchell S. Bryman, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

BILLING CODE 5001-06-P 


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[FR Doc. 2010–13096 Filed 6–1–10; 8:45 am] 

BILLING CODE 5001–06–C 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Docket ID: DOD–2010–OS–0073] 

Privacy Act of 1974; System of 

Records 

AGENCY: Defense Intelligence Agency, 

DoD. 

ACTION: Notice to alter a system of 

records. 

SUMMARY: The Defense Intelligence 

Agency is proposing to alter a system of 

records in its existing inventory of 

records systems subject to the Privacy 

Act of 1974, (5 U.S.C. 552a), as 

amended. 

DATES: This proposed action will be 

effective without further notice on July 

2, 2010, unless comments are received 

which result in a contrary 

determination. 

ADDRESSES: You may submit comments, 

identified by docket number and title, 

by any of the following methods: 

• Federal Rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Federal Docket Management 

System Office, 1160 Defense Pentagon, 

Washington, DC 20301–1160. 

Instructions: All submissions received 

must include the agency name and 

docket number for this Federal Register 

document. The general policy for 

comments and other submissions from 

members of the public is to make these 

submissions available for public 

viewing on the Internet at http:// 

www.regulations.gov as they are 

received without change, including any 


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