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[LenAshburn]

NOTICE OF DECERTIFICATION; NOTICE TO CEASE
AND DESIST AND TERMINATION OF ALL CONTRACTS
OF PARTICIPATION ISSUED TO IMPACT RACING

March 26, 2010 - SFI Foundation, Inc., has issued a Notice of Decertification; Notice of Cease and Desist, and a notice terminating all Contracts of Participation to Impact Racing.

Effective April 27, 2010, all products manufactured and/or distributed by Impact Racing pursuant to SFI Specification Programs 3.2A, 3.3, 16.1, and 16.5 are decertified. Evidence obtained by SFI shows that over a period of years Impact Racing has engaged in the production and use of counterfeit SFI conformance labels and patches, and affixed them to Impact products for use in motorsports.

Under the Contracts of Participation between SFI and Impact, SFI
conformance labels and patches may only be obtained from SFI and no other source. Evidence shows that Impact had counterfeit SFI labels and patches made in Asia and then affixed them to Impact products it distributed to members of the racing community.

To SFI’s knowledge, Impact never advised its customers that its products contained phony SFI labels and patches. Impact never advised SFI of its systematic and longstanding practice of counterfeiting and distributing SFI patches and labeling.

Impact has been directed to cease and desist from this practice. SFI has directed Impact to immediately notify all affected customers to remove the counterfeit labeling and tooffer the affected customers a full refund of the purchase price.

SFI is requesting that all counterfeit conformance labels removed from Impact products be sent to SFI.

SFI has elected not to decertify these products immediately in order to minimizethe potential hardships to members of the racing community that have been brought about by Impact’s counterfeiting activities.

SFI has also elected to terminate all Contracts of Participation with Impact Racing effective 90 days from March 24, 2010.

Under the terms of the Contracts, either party may terminate the agreements without penalty upon 90 days notice. This means that Impact will no longer be able to participate in any SFI programs after this 90 day period.

SFI has taken these actions in the best interests of the safety and integrity of the racing community. This is in keeping with SFI’s mission and purpose.

-SFI-
_________________
Len in Indy

[PeteKlinger]

Let me drop the other shoe on this one. Here's the rest of the story.

JOINT PRESS RELEASE

April 1, 2010 - Impact Racing, LLC and SFI Foundation, Inc., in the litigation pending in the United States District Court for the Southern District of Indiana, have agreed that:

1. Impact Racing, LLC has provided sworn testimony that, upon review and investigation, no counterfeit SFI Conformance Labels have been used on Impact Racing products during the production years of 2009 and 2010.

2. Impact Racing, LLC has provided sworn testimony that, upon review and investigation, all Impact Racing products manufactured and sold during the production years 2009 and 2010 meet SFI specifications.

3. Based upon this sworn testimony, the decertification against Impact Racing products for the production years 2009 and 2010 is lifted. The decertification of the production years prior to 2009 and 2010 remains in effect. The parties will continue to work cooperatively in an effort to resolve the issues relating to decertification in these years.

4. Impact Racing stands behind the safety of all products it has manufactured and to which SFI Conformance Labels have been affixed. SFI will continue to monitor compliance with product specifications.

5. Impact Racing, LLC and SFI Foundation, Inc. will cooperate in determining whether any Impact Racing product bears a counterfeit SFI Conformance Label and if any safety issue exists in regard to products manufactured prior to 2009 and 2010.

6. If any Impact Racing product does not bear the date of manufacture the purchaser or user is instructed to immediately contact Impact Racing who will provide verification of the date of manufacture. Impact Racing, LLC will immediately notify SFI Foundation, Inc. of this occurrence. Impact Racing, LLC and SFI Foundation, Inc. will work with the sanctioning bodies to determine the best method for product users to present verification of the date of manufacture.

http://www.sfifoundation.com/PressRelease04-01-10.pdf

[LenAshburn]

Thanks, Pete. Hope they get this worked out. I reserve any judgment 'cause I don't know enough about the particulars.
_________________
Len in Indy