There was no doubt in my mind that we could have concluded an agreement that evening if Jordan could have agreed to the livery which David Haines held up.

13. I recall David Haines repeating a similar phrase when he came into my private office when we had a short break from the meeting in the Board room. He said words to the effect that he had undertaken his investigations, he was serious about Jordan and that if we could get our figure to $150 million, Jordan would be there. He said that Jordan was the right image for Vodafone, using words to the effect that Jordan had an off the wall image which suited Vodafone's profile.

Saturday 10.02.01 meeting with Joe Kieser & Charles Perring

14. I met Joe Kieser and Charles Perring at my London apartment on 10 February 2001. This meeting was principally about numbers and Brown's remuneration. Joe Kieser made it plain to me that David Haines had been given a budget by Vodafone of $150 million over three years and he could not exceed that budget. Brown wanted to discuss their commission which they thought should be included in the sponsorship sum.

15. My recollection is that we had put in a margin of 15% commission in the presentation documentation. At this meeting, a figure of 10% was put forward by Joe Kieser. I said it must be on top of the $150 million. The question of Brown's commission was left in the air but it was clear to me that David Haines could not commit Vodafone to more than $150 million over a period of three years.

16. We discussed Lucent and Joe Kieser said that Vodafone would prefer Jordan to terminate the contract immediately. He repeated what David Haines had said at the 06.02.01 meeting. I said I would have to calculate the cost to Jordan. Before the meeting broke up, we briefly referred to livery and I said I would prefer to retain some of the Jordan yellow but it would not be a deal breaker.

17. Following this meeting, Ian Phillips put a proposal forward. We did not include an agency commission for Brown.

13.02.01 and 14.02.01

18. I received a telephone call from Joe Kieser on 13 February 2001. He said we were getting close but needed to meet urgently. We arranged to meet 14.02.01 at the Hilton Hotel Terminal 4 Heathrow at about 4pm. I was due to be at the hotel for an earlier meeting with other parties.

19. After agreeing to the meeting, I telephoned Ian Phillips who was at Gallaher meeting Barry Jenner and David Marren. I told Ian that we were very close to reaching agreement with Vodafone and that I had arranged to meet Joe Kieser and Charles Perring the following day. I told Ian that he should not make any commitments to Gallaher.

Gallaher

20. The position with Gallaher at this point was that Nigel Northridge wished to renew at about £17 million but he needed something additional to persuade his colleagues at Gallaher. He said that if Jordan would agree to hire a British driver, which would help promote Gallaher in the UK, this could be very helpful. Gallaher however remained keen on Formula 1 sponsorship because potential legislation banning other types of tobacco advertising was expected.

4.02.01 Meeting at Heathrow with Joe Kieser and Charles Perring

21. Together with Ian Phillips, I met Joe Kieser and Charles Perring at the Hilton Hotel. Ian Phillips' account of the meeting conforms with my recollection. It was again made clear that David Haines' budget was $150 million and that he could not exceed this sum. It was agreed to leave Browns' commission out of the calculation. They would sort out their remuneration directly with Vodafone. After some discussion, we agreed fees of $39 million in 2002, $50 million in 2003 and $52 million in 2004 which, together with the bonuses of $3 million a year, would bring the total to $150 million.

22. Joe Kieser said he had been asked by David Haines to agree the sponsorship fee at $150 million which we achieved at this meeting. We asked whether we could agree some performance bonuses. Joe Kieser said that might be possible and could come out of another budget over which David Haines had control.

19.02.2001

23. On 19 February 2001, Ian Phillips told me that Vodafone had decided to postpone their decision on going into Formula 1 for a short period in view of the fall in telecom share prices. On 20 February 2001, Charles Perring sent me a fax confirming Jordan's revised offer which had been put to David Haines. We understood that we should hear shortly on how David Haines wished to proceed.

Lucent

24. Following the Heathrow meeting, I spoke to John Hughes on the telephone. John Hughes used to work at Lucent and had handled Jordan's sponsorship and continued to be involved. I explained that I wished to terminate Jordan's relationship with Lucent before the sponsorship ran out. He said he would do what he could and asked whether he could retain his F1 pass for the remainder of the season.

01.03.01 Meeting Joe Kieser and Charles Perring at the Australian Grand Prix, Melbourne

25. I recall concern from Deutsche Post about a Jordan model car with Vodafone branding. This is described by Ian Phillips. At the Melbourne race meeting I was asked by Flavio Briatore to drop out of the bid for Vodafone sponsorship in return for which he would arrange for Benetton's sponsor Mild 7 to transfer to Jordan. I did not express any interest in this proposal as there was no benefit to Jordan.

14.03.01 Charles Perring's e-mail

26. I learned from Charles Perring's e-mail of 14.03.01 that Chris Gent, Vodafone's Chief Executive, was having a meeting with David Haines in the week beginning 19 March 2001. I understood that this would be to discuss whether Vodafone would sponsor either Jordan or Benetton. This appeared to be a crucial meeting to myself and Ian Phillips.

18.03.01 Dr Jung telephone call - Malaysian Grand Prix

27. I had suggested Ian Phillips send a letter to Mr Volker Jung asking him to recommend Jordan to Vodafone. Dr Jung is a director of Infineon, a sponsor of Jordan and more importantly a director of Siemens, whom I understood to be very close to Vodafone. In response to this letter, Dr Jung called me on my mobile phone as I was driving to our hotel for the Malaysian Grand Prix. He told me that he had spoken to Chris Gent who had confirmed that the choice of teams was up to David Haines.

28. Over this Malaysian Grand Prix weekend, I also asked Takeo Fukui, managing director of Honda, to send a recommendation to Vodafone. I also wrote to Peter Sutherland of Goldman Sachs. I asked Ian Phillips to write an appropriate letter to MasterCard. I understand he gave a draft to our marketing manager Mark Gallaher and asked him to amend and send off.

Gallaher

29. On my return from the Malaysian Grand Prix, I spoke to Nigel Northridge again. I told him that whilst Jordan wished to continue with its relationship with Gallaher, there were other possibilities which I needed to investigate. I told him that I would keep him updated as things progressed.

22.03.01 Vodafone agreement

30. During Thursday 22 March 2001, Ian Phillips told me that he had received a call from Paul Jordan (formerly employed at Jordan) who had heard from Ted Brezina of Benetton that they would not be sponsored by Vodafone. The conclusion to this was that Jordan would be sponsored by Vodafone. Later that day Ian Phillips told me that Charles Perring had called him to say that we should expect a call from David Haines with some good news. I stayed late in the office waiting for the call.

31. I have read Ian Phillips' account of the telephone conversation with David Haines. This accords with my recollection. There is absolutely no doubt that David Haines told me we had the deal. There were no conditions attached to this statement. We were of course extremely pleased at this news. I telephoned Charles Perring to tell him and thank him for his help and spoke to Dominic Shorthouse. I told Ian Phillips that we needed to write to Vodafone to confirm David Haines' decision. We drafted the letter the following day.

26.03.01 Vodafone's letter

32. I could not understand why this letter had been sent by Peter Harris given that it totally contradicted the conversation I had with David Haines when the agreement was made. I was perplexed and very annoyed. I decided however that confrontation was not the answer, but we should first find out what was going on. I got hold of David Haines on the telephone and he told me that Peter Harris had been concerned about his call to me and my letter of 22.03.01 and that David Haines had in effect jumped the gun. David Haines said that he had told Peter Harris that his decision was that Vodafone would sponsor Jordan and that I should not worry and that everything would be sorted out. He confirmed that he was the boss and it was his programme and his responsibility.

33. He said he would discuss the matter at a board meeting the following Tuesday and that he did not want any paperwork showing that a decision had been made. I was reassured by this conversation. I was later to learn that Bernie Ecclestone at a meeting with David Haines and Peter Harris on 26.03.01 had put some doubts in their minds on whether Jordan was the best team for Vodafone to sponsor.

28.03.01 meeting with Charles Perring

34. I had a meeting with Charles Perring when he visited Jordan together with Ian Phillips. He told us that Joe Kieser had asked him to request that Jordan place a £1 million brand building contract with Brown as a reward for getting Vodafone to sponsor Jordan. I asked him to submit some proposals. Charles Perring said he had sent a draft sponsorship contract prepared by our lawyers on to lawyers who would represent Vodafone.

29-03 - 01.04.2001 Brazilian Grand Prix

35. I first learned that Ferrari were apparently being considered by Vodafone notwithstanding our agreement. Ian Phillips had been told this by Flavio Briatore. Mark Gallaher had omitted to send the letter to Mastercard which we had planned to do at the Malaysian Grand Prix along with the other letters. Mark Gallaher showed me a draft which I approved. The letter which was sent in 03.04.2001 refers to a possible deal with Vodafone following the drafts prepared earlier. I could not of course refer to the agreement in a letter to one of Jordan's sponsors because of confidentiality.

12-15.04.01 San Marino Grand Prix at Imola

36. At this meeting, which was the first in Europe that year, I told Nigel Northridge that Gallaher would be sponsored by Vodafone in 2002. He took it well and said he was pleased for Jordan. I said I would do what I could to retain Gallaher's involvement in some form or other within the Jordan team but this was really only an attempt to smooth over what was, at least to my mind, a difficult conversation.

23.04.01 meeting

37. I briefly met David Haines, Peter Harris, Joe Kieser and Peter Dart at the Pelham Hotel in London. I think they were there for a function and I had been asked to meet David Haines. I told David Haines that I had heard a rumour that Ferrari might be being considered by Vodafone notwithstanding our agreement. His response to me was,

"they cannot deliver what we need, just have faith - you are the only ones".

15.05.01

38. By about this date I had heard through I believe John Hogan of Phillip Morris that Ferrari were indeed in discussions with Vodafone. I was told that Phillip Morris had been a stumbling block in providing space on the car for Vodafone. However, discussions had taken place directly between Vodafone and Phillip Morris about Phillip Morris releasing space to Vodafone. I was becoming concerned. I wrote to Peter Sutherland in the hope that he might intervene with Chris Gent.

24.05.01 - 27.05.01 Monaco

39. David Haines and Peter Harris came to see me and Ian Phillips on my boat to inform us that Ferrari were to be sponsored by Vodafone. This was a very frosty meeting. I have read Ian Phillips's account and it entirely accords with my recollection of what happened. Peter Harris acknowledged that through David Haines Vodafone had reached an agreement to sponsor Jordan.

I believe the facts stated in this witness statement are true.