T h e L e tte r m a k e s s ta te m e n ts th a t c o u ld le a d to m is u n d e rs ta n d in g s a n d in a c c u ra te c o n c lu s io n s b e in g d ra w n . W e , th e F o rm u la O n e c o m m e rc ia l rig h ts h o ld e r (th eC R H ), a re w ritin g to y o u to e n s u re th a t y o u u n d e rs ta n d o u r p o s itio n o n m a tte rs ra is e d in th e L e tte r in s o fa r a s th e y re la te to

W e s u p p o rt th e F IA a n d re c o g n is e th a t it is , a n d s h o u ld re m a in , th e s o le b o d y g o v e rn in g
in te rn a tio n a l m o to r s p o rt w h ic h g o v e rn s th e s p o rtin g o rg a n is a tio n o f th e F IA F o rm u la O n e
W o rld C h a m p io n s h ip (th eC h a m p io n s h ip ).

W e s u p p o rt a n d c o n c u r w ith th e re q u ire m e n t o f th e E u ro p e a n C o m m is s io n th a t re g u la to ry fu n c tio n s re la tin g to in te rn a tio n a l m o to r s p o rt b e s e p a ra te fro m th e a s s o c ia te d c o m m e rc ia l in te re s ts a n d th a t th e F IA 's ro le in F o rm u la O n e s h o u ld b e th a t o f th e s p o rtin g re g u la to r, u n in v o lv e d in its c o m m e rc ia l e x p lo ita tio n .

W e b e lie v e it is to th e b e n e fit o f F o rm u la O n e th a t th e F IA s h o u ld h a v e a tra n s p a re n t a n d ro b u s t g o v e rn a n c e s tru c tu re a n d th a t it s h o u ld d is c h a rg e its re g u la to ry re s p o n s ib ilitie s in a fa ir, im p a rtia l a n d n o n -d is c rim in a to ry m a n n e r, w ith o u t e x te rn a l in flu e n c e o r in te rfe re n c e , le d b y a c re d ib le a n d respected President (w ho should be chosen by the FIA 's m em bership only).

W e in te n d to c o n tin u e to m a n a g e e x c lu s iv e ly th e c o m m e rc ia l e x p lo ita tio n o f F o rm u la O n e w ith in th e e s ta b lis h e d fra m e w o rk s o f th e e x is tin g F IA F o rm u la O n e C o m m e rc ia l A g re e m e n t a n d , in d u e course,the 100 Y ear A greem ents.

Y o u w ill re c a ll th a t th is s e t o f a g re e m e n ts (th e100 YearAgreem ents) w a s e n te re d in to b e tw e e n th e F IA a n d S L E C H o ld in g s L im ite d in A p ril 2 0 0 1 . T h o s e a g re e m e n ts a re v a lid a n d b in d in g o n th e p a rtie s a n d w ill in a ll m a te ria l re s p e c ts b e c o m e o p e ra tiv e in 2 0 1 1 . T h e y d o n o t n e e d to b e a lte re d o r re n e g o tia te d u n le s s b o th p a rtie s w is h to d o s o .

d is c u s s io n s w ith th e F IA P re s id e n t to c la rify th e s e p o in ts a n d to a v o id u n in te n d e d c o n s e q u e n c e s . W e h a v e a ls o ra is e d w ith h im a n u m b e r o f o th e r is s u e s w h ic h w e c o n s id e re d w o u ld im p ro v e th e a g re e m e n ts w ith o u t d a m a g in g th e F IA ' s in te re s ts , b u t w e a c c e p t th a t is a m a tte r fo r th e F IA to ju d g e , it is n o t o b lig e d to m a k e th o s e c o n c e s s io n s to u s a n d s h o u ld it c o n s id e r it is a g a in s t its in te re s ts to d o s o , w e w o u ld b e c o n te n t to th e le a v e th e a g re e m e n ts in th e ir p re s e n t fo rm a n d w h e n th e tim e c o m e s , to o p e ra te w ith in th e ir e x is tin g s c o p e , w ith o u t a m e n d m e n ts .

W o rk in g G ro u p s , s u b je c t to th e a p p ro v a l o f th e F IA F o rm u la O n e C o m m is s io n a n d th e F IA W o rld M o to r S p o rt C o u n c il. T o th e e x te n t a n y c h a n g e s to th e F o rm u la O n e re g u la tio n s m a y h a v e a m a te ria l c o m m e rc ia l im p a c t o n th e C R H a n d its in te re s ts , s u c h c h a n g e s s h o u ld b e

Im p ru d e n t c h a n g e s to th e F o rm u la O n e re g u la tio n s , if a d o p te d , c o u ld h a v e a d ra m a tic a d v e rs e im p a c t o n th e a ttra c tiv e n e s s o f th e s p o rt, to p ro m o te rs , to b ro a d c a s te rs , to s p o n s o rs a n d to th e fa n s ; th e y c o u ld a d d s ig n ific a n tly to th e c o s t o f p a rtic ip a tin g in th e C h a m p io n s h ip a t a

e x p ire d a t th e e n d o f 2 0 0 7 a n d w e d e s ire th a t it b e re n e w e d , n o t a s a w a y fo r th e C R H to e x e rc is e c o n tro l o v e r th e s p o rt, b u t b e c a u s e it w ill p ro v id e th e fin a n c ia l a n d re g u la to ry s ta b ility d e s ire d b y th e F o rm u la O n e te a m s a n d th e m o to r m a n u fa c tu re rs w h o s p o n s o r a n d in v e s t s ig n ific a n tly in

T h e c o m m e rc ia l a n d fin a n c ia l a rra n g e m e n ts , in c lu d in g th e d is trib u tio n o f th e a n n u a l p riz e fu n d , h a v e b e e n a g re e d b e tw e e n th e C R H a n d th e F o rm u la O n e te a m s , w ith th e fu ll k n o w le d g e o f th e F IA . T h e C R H is w illin g to s ig n im m e d ia te ly a n e w C o n c o rd e A g re e m e n t s u b s ta n tia lly b a s e d u p o n a n d c o n ta in in g th e s a m e re g u la to ry p ro v is io n s a s th e p re v io u s C o n c o rd e A g re e m e n t,