Report on Exchanges - INSEAD CALT

EagleRacing Simulation ExchangesGMP @ CEDEP, June 2013Collected by Albert A. Angehrn, INSEADhttp://www.insead.edu/facultyresearch/faculty/personal/aangehrnAAA/INSEAD/062013 - 1

It all started with …De : ANGEHRN AlbertEnvoyé : lundi 3 juin 2013 17:50À : 'shab@flsmitdth.com'; 'vincent.bercovici@galderma.com'; 'adriana.carneiro-ribeiro@renault.com';'benoit.crochelet@gdfsuez.com'; 'rose.delannoy@gdfsuez.com'; 'stephane.deblaise@renault.com'; 'mkdus@flsmidth.com';'laurence.excoffon@renault.com'; 'luc.frankignoulle@electrabel.com';'jerome.gendre@federalmogul.com'; 'bernard.haine@ores.net'; 'uh@flsmidth.com'; 'he.xiaohong@bekaert.com';'thomas.henn@gdfsuez-energie.de'; 'frank.huerter@federalmogul.com'; 'bernard.imperial@cgg.com';'isabelle.i.landrot@renault.com'; 'pel@flsmidth.com'; 'benedicte.lefevre@electrabel.com';'frederic.marijsse@ores.net'; 'gregory.mourat@valeo.com'; 'steven.parewyck@bekaert.com'; 'hvp@flsmidth.com';'peter.remory@bekaert.com'; 'leif.olav.saetenes@cggveritas.com'; diederik_schouten@deltalloyd.nl;'edsonls@tble.com.br'; 'peter.thomsen@flsmidth.com'; 'cct@flsmidth.com'; 'jacques.Veerman@mail.ing.nl';'silvano.veglia@federalmogul.com'Cc : Albert.ANGEHRN@insead.eduObjet : [GMP15] Preparation for our GMP Session: Just 15 minutesImportance : HauteDear GMP ParticipantsI am looking forward to meeting you soon at CEDEP for the sessions we will have together on the firstday, focusing on Collaboration. With this email I would like to engage with you – without taking toomuch of your time – into a brief pre-session exchange.The first step in which I would like to involve you should not take more than 15 minutes. It’s aboutwatching a brief video online (on your PC/Mac/iPhone …) and then emailing me straightaway yourintuitive opinion about what Gianluca, the main character in the video, should do.To watch the video click on EPISODE 1 and insert your Key (“GMP15”). Afterwards make sure thatyour reply reaches me (and only me) by the end of this week, by Friday, June 7 th , so that we canthen proceed to the next phase and see how the story evolves.That’s all for the moment. Looking forward to your individual decision. In the meantime enjoyEPISODE 1!See you soon at CEDEP-albertINSEAD_____________________________________________________Prof. Dr. Albert A. ANGEHRNhttp://www.insead.edu/facultyresearch/faculty/personal/aangehrnPS: The EagleRacing Simulation has been featured for instance at CNN.com.AAA/INSEAD/062013 - 2

Individual RepliesDiederik is the first to respond. He does it by sharing his preference for the Goodbridge offerand suggesting actions to bridge the budget gap…De : diederik_schouten@deltalloyd.nl [mailto:diederik_schouten@deltalloyd.nl]Envoyé : lundi 3 juin 2013 19:04Dear Prof .Dr. Angehrn,I am looking forward to meeting you at CEDEP.My advise for the Eagle Racing team:They should go for the deal with Good Bridge. I realize that they will have a potential fundingproblem of 8 mln EURO.Possible solutions for funding problem:- discuss funding problem with Sir Winfield. Perhaps Eagle Racing can use the network of SirWinfield to get contact to other potential sponsors. For example: CEO's of other compagnies with thesame passion for old Ferrari's.-extra budget cutsKind regards,Diederik Schouten…followed by Benoit, who also chooses Goodbridge to avoid reputational risks…De : Benoit.Crochelet@gdfsuez.com [mailto:Benoit.Crochelet@gdfsuez.com]Envoyé : lundi 3 juin 2013 19:07Dear Albert,Thank you for this pre-session exchange.By accepting Bauer’s sponsorship Eagle Racing would run a significant reputation risk which can be deadlyfor the team. Intuitively I would recommend to choose Goodbridge and prepare different business casesto operate successfully until additional sponsors can be found (e.g. financial credit, operating costsavings, number of races…).Reputation is key in sport, so I won’t compromise with Bauer’s Manager even if the allegations are notproved.Looking forward to meet you,BenoîtBenoît CrocheletHead of Brand & Marketing CommunicationsPhone: + 32 2 501 24 75 - Fax: + 32 2 508 40 90benoit.crochelet@electrabel.comwww.electrabel.comNew address:GDF SUEZ Tower, Boulevard Simón Bolívar 34, 1000 BrusselsAAA/INSEAD/062013 - 3

Thomas advises to further discuss with BOTH potential sponsors before deciding…De : Thomas.Henn@gdfsuez-energie.de [mailto:Thomas.Henn@gdfsuez-energie.de]Envoyé : mardi 4 juin 2013 09:09Dear Albert,After watching the short film my intuitive opinion is that the session suggests a situation of timepressure with very limited options. But is this really the case for Eagle Racing / Gianluca? Is it reallytrue for Gianluca that he has to take a decision based on limited information?Eagle Racing should rather ask for further discussions with their both potential sponsors in order tofind out,* if BAUER is really selling arms or even more interesting if the public believes they do so (andtherefore BAUER has a negative image what would disqualify them as a sponsor)* if there are further options which could be negotiated:** e.g. non exclusive term also with BAUER** e.g. if Goodbridge may allocate their 10 mio / year budget differently and may sponsor in the firstyear 18 mio (and in the second 6 mio and again 6 in the third year) to give Eagle Racing more time tolook for another sponsor in the second year.** e.g. if maybe a bank loan could fill the missing gap of 8 mio in the first year** if Goodbridge may also could bring in some VIP contacts to further acquire sponsorshipKind regards,Thomas…whilst Isabelle, without hesitation, decides for Goodbridge…De : LANDROT Isabelle [mailto:isabelle.i.landrot@renault.com]Envoyé : mardi 4 juin 2013 09:40GoodBridge… Jacques too prefers the Goodbridge deal, but also recommends to try to get moreinformation on Bauer …De : Jacques.Veerman@mail.ing.nl [mailto:Jacques.Veerman@mail.ing.nl]Envoyé : mardi 4 juin 2013 12:58Dear Albert,I watched the video and per this email I want to give my intuitive opinion:- Gianluca should insist that they do a proper further investigation into Bauer’s situation. Are theremore facts available?- He also should look at a formal policy on doing business with such partners.- For now, my intuition tells me that the risk is too high to give exclusivity to one partner. If thepartner is going into default the whole sponsorship is at risk.It’s better to spread the risk cross different partners.- Also I believe that Goodbridge fits better with the mission/strategy of Eagle Racing.Kind regardsMet vriendelijke groet,Jacques VeermanING Finance Bank OIB/Controller CBS/RBI/GSAAA/INSEAD/062013 - 4

Shahid announces that he did not receive any emails…De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : mardi 4 juin 2013 19:44Thanks Peter. Now I understand why I didn’t get any mail. My e-mail address is incorrect. Albertcould you please correct it.Thanks and best regards,Shahid AbdullahGlobal Director O&M MPshab@flsmidth.comClaus shares his clear decision for Bauer…De : Claus Christian Torbøl [mailto:CCT@FLSMIDTH.COM]Envoyé : mardi 4 juin 2013 19:49Dear Albert,I propose Gianluca should go with “Bauer Industries”Regards,Claus…whilst Bernard would sign with Goodbridge as there is no time left to further investigate onBauer…De : imperial, bernard [mailto:bernard.imperial@CGG.com]Envoyé : mardi 4 juin 2013 23:29Dear Albert,Provided there’s no spare time (and probably no means) to dig into Bauer situation and see if theaccusation against Bauer are developing, Gianluca should choose to go with Goodbridge, whileimmediately launching a plan to review the next season with a reduced budget and going back to SirRalph to present the budget trying to get more money based on level of performance during the firstraces for instance. In addition a plan to find an additional sponsor during the season might be launched(organizing special events on some races to attract sponsors on the spot for one race).Looking forward to see Episode 2…See you soon,Bernard______ ______ ______Bernard ImperialVP Human Resources & CommunicationMarine Business LineCGG27, avenue Carnot91341 Massy CedexFranceT +33 1 64 47 36 12M +33 6 89 23 22 65www.cgg.comAAA/INSEAD/062013 - 5

…unlike Peter, who suggests finding out more about the allegations on Bauer…De : Peter Thomsen [mailto:PTH@FLSMIDTH.COM]Envoyé : mercredi 5 juin 2013 15:39HiI would suggest Gianluca to quickly look into the rumors about Bauer. Maybe even confront Bauerwith the rumors.Best regards,Peter ThomsenSenior Vice PresidentDirect +45 36 18 20 07 · Mobile +45 30 93 20 07 · Fax +45 36 18 15 47peter.thomsen@flsmidth.comSteven advises to sign with Goodbridge…De : Parewyck Steven [mailto:Steven.Parewyck@bekaert.com]Envoyé : jeudi 6 juin 2013 02:07Dear Dr. Angehrn,To my opinion Gianluca should opt for GOODBRIDGE’s offer.Best regards,Steven Parewyck…Frederic analyses the situation and both options before finally advising Gianluca to signwith Sir Ralph and to explore together further opportunities…De : Frederic Marijsse @ home [mailto:frederic.marijsse@gmail.com]Envoyé : jeudi 6 juin 2013 06:57Dear Mister Angehrn,please find hereafter my understanding of the situation and my advice to Gianluca,What does Eagle Racing need?Given its track record and its recent achievement, Eagle Racing needs a new main sponsor to furtherdevelop its business and potentially, a few more in order to diversify its sources of funding and gainaccess to a portfolio of investors and sponsors.Eagle Racing needs reliable and stable partners.Given that its main sponsor has cancelled its participation, Eagle begins to feel the pinch and couldexperience some shortage if it doesn’t manage to raise sufficient funding or credit facilities. However,one should call for the facts and not get confused with feelings and short-termism.1) Sir Ralph Winfield and the Goodbridge companyIs a happy, enthusiast, passionate kind of person.Says he actually wants to sponsor EagleAAA/INSEAD/062013 - 6

Sir Ralph takes time to see if he could go along with the people of eagle, all the small talk part is allabout knowing each other and sensing the possibility of long term partnership (values, spirit..)Money, terms or conditions are not discussed during the first meeting with Sir Ralph (he relies onBenjamin for the details).The deal could be signed of at 10MEUR/yearMaybe there’s a potential for more and maybe Winfield could introduce Eagle to other partners tojoint the adventure.2) Walter Smith and Bauer IndustriesOne could say he hardly cares about racing.It is more a way for him to offer some kind of VIP-experience for his prospects or business partners.One could question its reliability and interest over timeThe deal is not sealed yet, but he utters a lot of demands and there’s little room for negotiation, everyword looks like a take it or leave it offer.Eagle could become in thrall to Bauer industries exclusive sponsorshipHe makes a rather conditional commitmentThe company is already involved in some mediatic turmoil that could reflect adversely on thecompany and its partners.What if allegations are confirmed? Not every body would agree with selling goods in a breach of anUN resolution, except maybe for some kind of Russian investors..3) Advice to GianlucaPolitely decline Walter Smith’s offer while being neutral.Explain that as long as the suspicions aren’t waived, eagle couldn’t enter in a business relationshipwith him.Explain Eagle want to enter in a balanced partnership and that the terms and conditions he proposesare not in the vain of the partnership Eagle seeks.Secure the deal with Goodbridge and expose the situation to Sir Ralph Winfield to see if it could bepossible to find other sponsors.Imagine How to leverage the Goodbridge sponsorship, etc..Kind regardsFredericAAA/INSEAD/062013 - 7

Vincent would like to further negotiate with both possible sponsors but if he has to take adecision right now, he prefers to sign with Bauer…De : BERCOVICI Vincent [mailto:Vincent.BERCOVICI@galderma.com]Envoyé : jeudi 6 juin 2013 10:54Hello,Great to meet you and I really enjoyed the video because that is not something I do not deal with at ALL inmy current position (Global Marketing Director).So as the brief said, my straightaway gut feeling :I would prepare for more options to secure the Business (take calculated risks). If I were Giuanluca I would Ask Joep to deal with Bauer non exclusive deal alternative at 10M€ Ask the BD girl to come up with a 2 nd sponsor in addition to the deal with the Brit guy if it stays at10M€ Myself would go directly to the British guy and bargain exclusivity (do not remember if it was thecase or not for the 10M€ deal) at a higher rate : 18M€. or mention that if the deal at 10M€ wasexclusive it is no way.Now if you tell me decision needs to be taken NOW with no discussions possible I would go for BAUER anduse 3M€ to build PR activities to defend reputation/prevent more spill over and prepare back-up plansready to sign.Talk to you soon.Vincent.…and after reflecting on Joep’s unpreparedness, Rose advises Gianluca to further discusswith Sir Ralph…De : rose.delannoy@gdfsuez.com [mailto:rose.delannoy@gdfsuez.com]Envoyé : jeudi 6 juin 2013 12:13Dear Professor,Please find below my reactions on what Gianluca should do are: Recall ethics and value (devalue) of (tarnished) brand name even if it is not written in firmpolicy reports of the company Urgently correct Joep’s unpreparedness by :o requiring full check on Bauer as well as on recent press allegations(why was it not done considering that it is one of the last 2 potentials forsponsorship)o requiring working on financials in relation with an exclusive offer(nb unpreparedness from Joep – should have an file for exclusivity and margin fornegotation)o checking with CEO for his views on Bauer (as was done for goodwill)(NB. Why asking CEO on Goodwill and not mentioning Bauer?)o require to go back to Bauer to indicate that proposal needs further working beforethe company can come back to him(NB. Why did Joep accept a WE delay for “negotiating” a complete new proposalwhen he negotiated several weeks with goodwill?;why Joep did not do research on his WE for such potential major deal impact?)AAA/INSEAD/062013 - 8

Depending on the past nego with Goodwill, possibly check with Goodwill if they wouldadapt/improve their offer taking into consideration that the company might consideranother exclusive proposalBest regards,Rose de Lannoy…in line with Annie, who emphasizes Sir Ralph’s passion for racing…De : He Xiaohong (BMC) [mailto:He.Xiaohong@bekaert.com]Envoyé : jeudi 6 juin 2013 15:18Dear Professor ANGEHRN,This is Annie from Bekaert.My intuitive opinion about what Gianluca should do:Turn down the cooperation with Bauer, as avoiding risk is the most important thing for the healthydevelopment of company, further more, he agrees with Jennifer that the CEO of Goodbridge is theexactly right partner they would cooperate with, as he loves racing.Then he should try to sign a 3 or 5 years contract (the longer the better) with Goodbridge on followingSunday with the down payment of first 2 years sponseship fee. Then it will solve the finance problemin the company for the moment. Then Joep should work harder to find other sponsors which loveracing too.Thanks and best regards,AnnieBekaert Management (Shanghai) Co., Ltd.Tel: +86/21/22197301Fax: +86/21/22197300Mobile: +86/13817808119he.xiaohong@bekaert.comhttp://www.bekaert.com…now Frank shares his clear decision for Goodbridge, as Bauer does not correspond to theideals of sport…De : Huerter, Frank [mailto:Frank.Huerter@federalmogul.com]Envoyé : jeudi 6 juin 2013 15:30Dear Mr. Angehrn,Thank you for providing the link to Episode 1.It is certainly a very interesting business situation that Gianluca is facing which, no surprise, I havenever in before. This makes is it even more interesting and I look forward to the group’s and yourview later this month.My intuitive position:A company that finances themselves to a huge extent by sponsoring needs to be very cautious whomthey select as their sponsors. A racing company that appeals to private individuals (and alsoespecially to children & families) symbolizing success in sports must not be sponsored by a businessAAA/INSEAD/062013 - 9

that conflicts with the ideal of a clean sports games. In particular arms industry totally conflicts withthe ideals of sports.In addition, exclusivity is a sensitive issue which relates to higher risks of not being able to balancethe dependence. Actually, one should expect that there a company rules existing that define how todeal with this topic.Thus, my view is that Gianluca needs to deal with Goodbridge. Furthermore, to close the gap insponsoring income, further sponsors need to be acquired. Doubt that there is only one left besideGoodbridge but even assuming that there is nobody else in the world, then this one needs to betaken under contract and in parallel, it might be possible to expand sponsorship with Goodbridge.Best regards,Frank HuerterFederal-Mogul Aftermarket GmbHManaging DirectorVehicle Component SolutionsOffice: (+49) (7141) 132-225PC-Fax: (+49) (2174) 6961294Mobile: (+49) (172) 7498553frank.huerter@federalmogul.comFederal-Mogul Friction Products GmbHCommercial Director Germany, Austria, SwitzerlandVehicle Component Solutions…followed by Peter, who advises to further negotiate with Sir Ralph…De : Remory Peter [mailto:Peter.Remory@bekaert.com]Envoyé : vendredi 7 juin 2013 08:51Dear Albert,My first feedback would be: let’s further explore the possibilities with Goodbridge (and use theBauer proposal for negotiation purposes)- Goodbridge seems passionate about car racing (the core bizz of Eagle Racing)- There is better and longer relationship with Goodbridge- There has not yet been in depth negotiating with Goodbridge:we do not know if they areprepared to ‘compromise’ on a better type of deal … this should be further explored.Look forward to meet in couple of weeks !RegardsPeterSilvano prefers the non-exclusive deal with Goodbridge…De : Veglia, Silvano [mailto:Silvano.Veglia@federalmogul.com]Envoyé : vendredi 7 juin 2013 09:51Hello Mr. AngehrnMy intuitive and straight opinion on how Gianluca should do: go with Goodbridge and leveraging onnon exclusivity try to integrate with other potential sponsorships for the season. Going with Bauerwould be far better budgetwise but the EXCLUSIVE association between a company producingweapons or part of them (independently from the fact if they go around the UN embargo or not) toAAA/INSEAD/062013 - 10

me represents a risk to the image that a racing team (which is playing in a sector where image is veryimportant) cannot takeWith best regardsSilvanoSilvano VegliaFederal-Mogul Italy S.r.l.Product Marketing Director - BrakingVehicle Component SolutionsOffice +39 045 82 81 324Mobile +39 335 69 92 886Fax +39 045 82 81 510VOIP 360 1324email silvano.veglia@federalmogul.com…whilst Leif Olav recommends signing with Bauer after clarifying the ethical questionsthrough clauses in the contract…De : Saetenes, Leif Olav [mailto:Leif.Olav.Saetenes@CGG.com]Envoyé : vendredi 7 juin 2013 14:03Dear Albert,This is clearly a dilemma. There is a reputational risk at stake for Eagle Racing should such a media stormdevelop around Bauer. However, this is the business of racing (rough) so the impact of the decision maynot hit Eagleracing as hard as any other business would do if worse comes to worst.I would say that the situation is then at an ethical for Eagle racing. As long as the business of Eagle Racinghas a clear view of not executing prejudice they can accept the deal but make it clear to Bauer that whatthe ethical guidelines of Eagle really are and let them comment before signing.The Goodbridge deal is not sufficient for the healthy finances of Eagle Racing so I would have signedBauer with a clear statement of view from Eagle. (assuming the finances of Bauer are solid)BRGDSLeif OlavLeif Olav SaetenesVice President – Regional Acquisition Manager / Site Manager BergenMarine Business Line - EAMECGGCarl Konows gate 345162 Laksevåg, Bergen - NorwayT +47 56 11 31 70M +47 93 09 96 70www.cgg.comAAA/INSEAD/062013 - 11

Edson clearly decides in favor of Bauer…De : Edson Luiz da Silva [mailto:edsonls@tractebelenergia.com.br]Envoyé : vendredi 7 juin 2013 14:13Dear prof. Albert.He should create a more favorable atmosphere, making future scenarios, trying to obtain anagreement among them, but choosing Bauer.Best regards,Edson Luiz da SilvaDiretor de Planejamento e ControleDC - Planejamento e ControleFone: +55 (48) 3221-7020 Fax: +55 (48) 3221-7070edsonls@tractebelenergia.com.brhttp://www.tractebelenergia.com.br/…and Luc also has a clear advice to give: sign with Goodbridge…De : Luc.Frankignoulle@electrabel.com [mailto:Luc.Frankignoulle@electrabel.com]Envoyé : vendredi 7 juin 2013 15:57Dear Albert,A this stage, my intuitive opinion goes for a deal with Goodbridge (less risk, passion for racing, noexclusivity).See you soon,Luc.…whilst Uffe considers that a decision should not be taken immediately. If forced to choosehe prefers to sign with Sir Ralph…De : Uffe Halldorsson [mailto:UH@FLSMIDTH.COM]Envoyé : samedi 8 juin 2013 17:44Dear Albert,My first reaction was that a decision could not be taken based on the available information - andwithout any risk assessment. The decision could have a huge impact on the companys future.If I have to choose - I will take the sponser with the lowest risk - giving time to find another extrasponsor. It means the english aristocrat and old car collector.Best regardsUffe HalldorssonAAA/INSEAD/062013 - 12

…after finally receiving the email too, and after analyzing both options, Shahid recommendsto continue discussions with Sir Ralph and to further investigate on Bauer…De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : mercredi 12 juin 2013 07:07Dear Albert,With some delay, please see hereinafter my intuitive opinion on what Gianluca should do:Goodbridge BauerBusiness ethics, apparently + -Demand of exclusivity/All eggs in oneNoYesbasketPassion for the Sport BusinessOne man versus group support - + but quality?I would apparently recommend Gianluca to incline towards Goodbridge. I would start negotiatingwith Sir Ralph and at the same time look further into the rumors on Bauer and other sponsors.Best regards,Shahid AbdullahGlobal Director O&M MP…and Stephane sends his clear decision in favor of Sir Ralph….De : DEBLAISE STEPHANE [mailto:stephane.deblaise@renault.com]Envoyé : vendredi 14 juin 2013 10:53AlbertSorry for answering late to your first e-mail.I would not choose the Bauer sponsor because it is too much risky and unconsistant with the first gentlemanagreement with goodbridge.I would choose goodbridge because of the gentleman agreement and because of the "respectability" of the CEOof goodbridgeStéphane… unlike Richard, who prefers to sign with Bauer…De : KELLEY Richard [mailto:Richard.KELLEY@sercel.com]Envoyé : samedi 15 juin 2013 08:15Albert,Based on the information presented in the video I would go with the Bauer offer. It solves the immediate needsof the business which is cash flow for the next 3 years. While there are risks to this choice due to the possiblenegative publicity for Bauer, Eagle Racing should be somewhat shielded from this. There are examples wheresponsor companies have had publicity problems and still sponsor racing/sports teams with very little impact onthose teams.This also gives Eagle 3 years to develop a longer term business plan without the constant need to find anddevelop partnerships. The exclusivity of the partnership could prove problematic if Bauer finds itself in difficultfinancial straits but the risk of that seems minimal.The other opportunity here are the VIP clients from Saudi. Saudi is a relatively new market for racing and withBauer's connections, Eagle Racing could be at the forefront in this developing market.Hope this answers your first query. I will join in on the team discussions as well.Look forward to meeting you in Fontainebleu.Regards, Rich KelleyAAA/INSEAD/062013 - 13

TEAM 1Annie takes the lead in Team 1 by sharing her preference for signing with Sir Ralph…De : He Xiaohong (BMC) [mailto:He.Xiaohong@bekaert.com]Envoyé : lundi 10 juin 2013 04:03À : edsonls@tble.com.br; uh@flsmidth.com; frank.huerter@federalmogul.com;bernard.imperial@cgg.comCc : ANGEHRN AlbertObjet : RE: [GMP15] TEAM 1: Towards Episode2 of EagleRacingDear teammates,We may start with the sharing own opinions. Herewith I share what I sent to Professor ANGEHRN lastweek:My intuitive opinion about what Gianluca should do:Turn down the cooperation with Bauer, as avoiding risk is the most important thing for the healthydevelopment of company, further more, he agrees with Jennifer that the CEO of Goodbridge is theexactly right partner they would cooperate with, as he loves racing.Then he should try to sign a 3 or 5 years contract (the longer the better) with Goodbridge on followingSunday with the down payment of first 2 years sponseship fee. Then it will solve the finance problemin the company for the moment. Then Joep should work harder to find other sponsors which loveracing too.Thanks and best regards,Annie…in line with Frank, who emphasizes that the sponsor should align to the ideals of sports….De : Huerter, Frank [mailto:Frank.Huerter@federalmogul.com]Envoyé : lundi 10 juin 2013 07:26Dear All,My view is the following:A company that finances themselves to a huge extent by sponsoring needs to be very cautiouswhom they select as their sponsors. A racing company that appeals to private individuals (andalso especially to children & families) symbolizing success in sports must not be sponsored by abusiness that conflicts with the ideal of a clean sports games. In particular arms industry totallyconflicts with the ideals of sports.In addition, exclusivity is a sensitive issue which relates to higher risks of not being able to balancethe dependence. Actually, one should expect that there a company rules existing that define how to dealwith this topic.Thus, my view is that Gianluca needs to deal with Goodbridge. Furthermore, to close the gap insponsoring income, further sponsors need to be acquired. Doubt that there is only one left besideGoodbridge but even assuming that there is nobody else in the world, then this one needs to betaken under contract and in parallel, it might be possible to expand sponsorship with Goodbridge.Best regards,Frank HuerterAAA/INSEAD/062013 - 14

…now Edson joins the discussion and he has a different view: in order to keep Eagle Racing inbusiness he advises to sign with Bauer….De : Edson Luiz da Silva [mailto:edsonls@tractebelenergia.com.br]Envoyé : lundi 10 juin 2013 15:03Hey folks,In fact we need to take a crucial decision.If on the one side we have the risk of image in a partnership with Bauer on the other side we have therisk of EagleRacing stop next year if a partnership with Goodbridge is closed, given that, today, therequired budget is not complete.EagleRacing has only two races in this year and its performance may not be good, which may becomeso harder to find complementary sponsors. We also need to consider that former sponsor changes itsfocus to other sport, probably because the return on racing cars is no longer attractive enough.Furthermore, we do not any concrete prove against Bauer and it is not clear what is the real losses ifa contract is signed with Bauer. Will the fans of EagleRacing reject this deal?Considering the aforementioned and the hard constraints put in the problem, I would prefer to chooseBauer and so, to supply all financial needs of EagleRAcing for the next year.Best regards,Edson Luiz da SilvaEdson has been “warned” by me…De : ANGEHRN AlbertEnvoyé : dimanche 9 juin 2013 17:53Dear EdsonI write to you personally because I expect that you might have some difficulties in your Team given yourinitial personal choice and preference concerning the partner for EagleRacing.I would like to invite and stimulate you not to give up easily your initial arguments and intuition, even ifyou will experience group pressure, as the other members of your team seem to have taken a ratherdifferent decision than yours.By the way, I would like to invite you to find and have a look at a very interesting movie: “12 Angry Men”.It is a good old movie directed back in 1957 by Sydney Lumet, with Henry Fonda in the main role(http://en.wikipedia.org/wiki/12_Angry_Men). It is a movie which shows pretty well, that even when weare in minority ... things can happen. You can actually see it directly online here.I wish you good luck, a good collaboration experience with your virtual team, and an excellent decision !-albertINSEADAAA/INSEAD/062013 - 15

Bernard joins the Goodbridge camp and summarizes the opinions. He suggests a simpleprocess (argue a bit, then vote) to reach consensus and calls for Uffe to share his view….De : imperial, bernard [mailto:bernard.imperial@CGG.com]Envoyé : mercredi 12 juin 2013 23:48Dear All,Hello from Paris!Below is my view.Provided there’s no spare time (and probably no means) to dig into Bauer situation and see if theaccusation against Bauer are developing, Gianluca should choose to go with Goodbridge, whileimmediately launching a plan to review the next season with a reduced budget and going back to SirRalph to present the budget trying to get more money based on level of performance during the firstraces for instance. In addition a plan to find an additional sponsor during the season might belaunched (organizing special events on some races to attract sponsors on the spot for one race).We’ve now 4 out of 5 team members input (I added below Edson’s answer received in cc:)One missing…But already differing views. We so need to define a way to reach a team consensus on our finaldecision. Could we argue a bit then vote?Waiting anyway for your input Uffe,Kind RegardsBernard…and here comes Uffe, who also prefers to sign with Sir Ralph….De : Uffe Halldorsson [mailto:UH@FLSMIDTH.COM]Envoyé : jeudi 13 juin 2013 09:37Dear all,Sorry for late reply.My first reaction was that a decision could not be taken based on the available information - andwithout any risk evaluation of the consequences of the decision. The decision could have a hugeimpact on the Eagleracings future. But I choose the sponser with the lowest risk and the bestbranding profile for the Eagleracing- Goodbridge - giving Eagleracing time to find additionalsponsors as mentinoned. Dependency of one main sponsors sounds risky – especially if the valuesof the Sponsor and the Racing Team are not align.If I should make a parallel to the real world we have in Denmark a professional bike cyclingcompany called Riis Cycling. The are now called Team Saxo Bank – Tinkoff. Every time they loosetheir main sponsor they are fighting for survival. Now they have 2 main sponsors - it looks likethey for period have mitigated the risk and have found a more sustainable solution.As I see it we are now 4 in favor for GoodBridge and 1 for Bauer….Best RegardsUffe HalldorssonGroup Health and Safety ManagerAAA/INSEAD/062013 - 16

…Edson would like to get some feedback on his arguments ….De : Edson Luiz da Silva [mailto:edsonls@tractebelenergia.com.br]Envoyé : jeudi 13 juin 2013 20:24Dear All,As I said, in the proposal simulation we have to take crucial solution for a very constrained problem,according to the description of prof. Albert.I do not have the objective of changing your position in order to choose Bauer. Nevertheless, I onlywould like a reflection from you about the possibility that news in the newspaper may not be confirmedand that, a very important issue, Eaglesracing has a serious risk of no to get a complementarysponsor for the next year, depending of your performance in the coming races and also due to marketbehavior.Maybe, after this reflection we could make a decision.Best regards,Edson…Annie responds and insists on the importance for Eagle Racing to run “clean business” andchoose ethically healthy partners….De : He Xiaohong (BMC) [mailto:He.Xiaohong@bekaert.com]Envoyé : vendredi 14 juin 2013 11:32Dear Edson,Thanks for sharing with us again your concern.As Frank mentioned “A company that finances themselves to a huge extent by sponsoring needs to bevery cautious whom they select as their sponsors. A racing company that appeals to privateindividuals (and also especially to children & families) symbolizing success in sports must not besponsored by a business that conflicts with the ideal of a clean sports games. In particular armsindustry totally conflicts with the ideals of sports.” I think it's really important for Eagleracing to choosea partner which is running clean business ,and is healthy ethically. So I think the Goodbridge is still theright choice.Thanks and best regards,AnnieAAA/INSEAD/062013 - 17

…now Frank summarizes the positions and suggests to decide with a majority vote. He asks ifEdson and the others would agree….De : Huerter, Frank [mailto:Frank.Huerter@federalmogul.com]Envoyé : vendredi 14 juin 2013 15:13Dear All,Apologies for having been so quiet the last few days.Since we all have expressed our views, we arrived topro Bauer:EdsonPro GoodbridgeAnnieBernardUffeFrankIf we would do a voting, the result is clear. This would probably not mirror our real life as there isusually someone with the given authority to decide, so it could have also ended up with a decisionpro Bauer.Since we quickly need to arrive to a solution to be entitled to go for Episode 2, I would suggestcommunicating our opinion as “pro Goodbridge”.Could we all agree on this way forward?I would suggest to set us all a deadline by Monday, June 10 th at 12:00 CEST for any further objectionsto this approach?Edson, maybe we have overlooked some detail and the four will be proven to have felt the wrongdecision.Have a good weekend.Best regards,Frank Huerter… Edson agrees now to go ahead with Goodbridge….De : Edson Luiz da Silva [mailto:edsonls@tractebelenergia.com.br]Envoyé : dimanche 16 juin 2013 13:58Dear All,I agree with Frank that in real life certaintly we would have someone to make a decision regardless thenumber of pros and cons (this is only one information) and maybe we could refuse both sponsersaiming to gain time.At the moment, I believe should go ahead choosing Goodbridge.Best regardsEdsonAAA/INSEAD/062013 - 18

…allowing Frank to send the final email of Team 1: invite Sir Ralph to the race on SundayDe : Huerter, Frank [mailto:Frank.Huerter@federalmogul.com]Envoyé : dimanche 16 juin 2013 14:35Dear Mr. Angehrn,Since we as Team 1 agreed on “pro Goodbridge”, we herewith submit this to you as our commondecision.@ Annie/Edson: Apologies for mixing up your names in the previous voting results.Best regards,Frank HuerterI congratulate the team to have reached a decision so fast….De : ANGEHRN AlbertEnvoyé : dimanche 16 juin 2013 22:25Team 1. Congratulations for the fast decision. I will let Gianluca Paranelli know and am sure that SirRalph will be happy too. In the meantime I am looking forward to watching Episode 2 with you atCEDEP. Things – as you will see – will become even more interesting, and complex …See you soon-albertINSEADAAA/INSEAD/062013 - 19

TEAM 2Claus starts the exchange in Team 2 sharing his clear advice to sign with Bauer…De : Claus Christian Torbøl [mailto:CCT@FLSMIDTH.COM]Envoyé : lundi 10 juin 2013 19:16À : leif.olav.saetenes@cggveritas.com; vincent.bercovici@galderma.com;benoit.crochelet@gdfsuez.com; Peter ThomsenCc : ANGEHRN AlbertObjet : RE: [GMP15] TEAM 2: Towards Episode2 of EagleRacingHi,I propose Gianluca should go with “Bauer Industries”The reason for my decision is that Bauer offered a 22 million contract and Team EagleRacing couldmanage with 18 million. In this case they could get extra 4 million by accepting exclusive sponsorrights and a contract for 3 years.At the following management meeting in Team EagleRacing one of the management memberspresented rumors from the newspaper about Bauer which was not documented. Based on what Iheard I would assume it was just a rumor.That’s the reason for why I voted for ‘Bauer’Regards,Claus…I share an insight with the team…De : ANGEHRN AlbertEnvoyé : lundi 10 juin 2013 23:58Hi Claus, Leif Olav, Vincent, Benoit and PeterSorry to intervene, but I have noticed that you have just started your exchanges. I would like to take theopportunity to share with your team an insight that many other management teams running this type ofonline simulations have shared with me.The insight is simply that they found their virtual teams performance increased when the membersstarted first by briefly introducing each other through a small exchange called “2 Truths and 1 Lie”. Inpractice everybody would fill and send around a Table like the one below (and let all the others guesswhich one is the lie):Two Truths and a LieHi. Let me introduce myself.[My name]Introduce yourself with one sentence (like the one below) including 2 trueand 1 wrong statements about yourself. Try to make it hard to guess!My sentence.If I had to participate, I would write for instance:AAA/INSEAD/062013 - 20

Two Truths and a LieHi. Let me introduce myself.[Albert]Introduce yourself with one sentence (like the one below)including 2 true and 1 wrong statements about yourself. Try tomake it hard to guess!I really like racing, I drive a small electric car (Twizy), and Isat in Schumacher’s Ferrari F1 car.As for every insight … take it or leave it! … but I thought I would share this with you.Best wishes for a productive exchange, and for reaching the best possible consensus decision on whichone of the 2 potential sponsors EagleRacing should invite to the race.-albertINSEAD… after introducing himself, Benoit shares his experience in sport sponsorship and hisrecommendation to close the deal with Goodbridge…De : Benoit.Crochelet@gdfsuez.com [mailto:Benoit.Crochelet@gdfsuez.com]Envoyé : mardi 11 juin 2013 09:23Dear all,I am really delighted to meet you at the CEDEP and to be part of the Team2 Eagle Racing you.Let me briefly introduce myself. My name is Benoît Crochelet, I am Belgian (French speaking), I am 53years old, I’m married (no children) living around Brussels.Formally educated in Marketing degree, I started my career as account manager for advertising agenciesbefore I became Communication Director for ING Belgium in charge of branding, advertising andmarketing communication campaigns. A few years ago I joined the Belgian Energy leader Electrabel asBrand manager before joining the Group GDF SUEZ in Paris as Deputy Vice-president MarketingCommunications Service where I was in charge of the brand architecture for GDF SUEZ Group and themanagement of the commercial brands policies for 2 years.Back in Belgium since June 2011 as Head of Brand & Marketing Communications, I am currently in chargeof the brand management, marketing communications Retail & B2B, employer branding and sponsorshipfor Electrabel in Belgium.Some insights about my profile for this caseI am really enthusiast about sports, all of them. And sport sponsorship is one of my domainsof expertise (I gave some conferences on that topic in Belgium – BMMA/STIMA…) . Duringmy professional time at ING Belgium I was member of the international brandingcommittee in charge of negotiate ING to enter Formula 1 as title sponsor ofRenault F1 Team.And what about EagleRace?I agree with Claus that from a financial perspective there won’t be a long debate. But It’s not only aquestion of money. Reputation is key in sport and sport is our business. By accepting Bauer’s sponsorshipEagle Racing would run a significant reputation risk which can be deadly for the team if any allegationabout Bauer Industries is confirmed. So I would recommend to choose Goodbridge and prepare differentbusiness cases to operate successfully until additional sponsors can be found. Which should’nt be an issuewith the dream team we have!Let’s talk about it.BenoîtAAA/INSEAD/062013 - 21

Benoit had also been warned by me…… and is happy about the challenge…De : Benoit.Crochelet@gdfsuez.com [mailto:Benoit.Crochelet@gdfsuez.com]Envoyé : lundi 10 juin 2013 10:00Dear Albert,You can count on me, my team members will need great arguments to modify my first position as faras values and ethic are no matter for compromises.Benoît…Claus still prefers Bauer as rumors are not confirmed and Sir Ralph might be not soeasygoing…De : Claus Christian Torbøl [mailto:CCT@FLSMIDTH.COM]Envoyé : mercredi 12 juin 2013 07:40Benoit,We don’t have any evidence which shows that Bauer has done anything wrong –I believe we should takedecisions based on facts so that’s the reason for why I continue to propose Bauer.Maybe it turns out you are right but I think Goodbridge could be a tricky company to deal with and thechairman seems to be an old fox.Regards,Claus…Benoit now calls for input from the other team members and suggests analyzing the risksof both options…De : Benoit.Crochelet@gdfsuez.com [mailto:Benoit.Crochelet@gdfsuez.com]Envoyé : mercredi 12 juin 2013 09:39Claus,Thank you for your quick reply. As far as the decision must be taken by the Team It would be interestingto have the feed-back from Leif-Olav, Vincent and Peter.Beyond intuitions it would be reasonable to make a risk analysis for the 2 scenarios:What if the allegations against Bauer are confirmed in the coming weeks or months. Which could be theconsequences at reputation, financial and business level for our team?And what if we by accepting Goodbridge’s proposal we can’t guarantee to have the financial basis for nextseason?By the way sport sponsorship is a jungle and we have to pay attention to all kinds of animals: white sharpsand old foxes incl. ;°)I am curious about the statements of our new colleagues.BenoîtAAA/INSEAD/062013 - 22

Peter agrees to sign with Bauer…De : Peter Thomsen [mailto:PTH@FLSMIDTH.COM]Envoyé : mercredi 12 juin 2013 11:51Dear allI agree that we should go with Bauer, however rumors should be looked into.Bauer seems to act based on business, Goodbridge is acting on mood and emotions.Best regards,Peter ThomsenSenior Vice President…whilst Vincent would prefer to further negotiate with both. If this is not possible he wouldchoose the Bauer offer…De : BERCOVICI Vincent [mailto:Vincent.BERCOVICI@galderma.com]Envoyé : mercredi 12 juin 2013 23:04Hello,I am delighted to meet my counterparts for a memorable adventure ! I am VINCENT, French, based inParis, Global Marketing Director in pharma industry with initial Chemistry background. I believe in teamwork and happy to race with you on finding a consensus (maybe that’s why I waited a bit beforeresponding ?). Yes I agree with below !!To give some perspective I share with you my rationale to Albert last weekSo as the brief said, my straightaway gut feeling :I would prepare for more options to secure the Business (take calculated risks). If I were Giuanluca I would Ask Joep to deal with Bauer non exclusive deal alternative at 10M€ Ask the BD girl to come up with a 2 nd sponsor in addition to the deal with the Brit guy if it stays at10M€ Myself would go directly to the British guy and bargain exclusivity (do not remember if it was thecase or not for the 10M€ deal) at a higher rate : 18M€. or mention that if the deal at 10M€ wasexclusive it is no way.Now if you tell me decision needs to be taken NOW with no discussions possible I would go for BAUER anduse 3M€ to build PR activities to defend reputation/prevent more spill over and prepare back-up plansready to sign.…Leif Olav agrees that having both on board would be ideal but given that a decision shouldbe taken now and after analyzing the risks, advises also to sign with Bauer…De : Saetenes, Leif Olav [mailto:Leif.Olav.Saetenes@CGG.com]Envoyé : jeudi 13 juin 2013 18:43Hi all,I’m really looking forward to meeting you at GMP! My name is Leif Olav Saetenes, based in BergenNorway and working for CGG, the world’s largest service provider of geophysical services with HQ in Paris.I’m the regional operations manager (line manager) for our marine operations activities within Europe,AAA/INSEAD/062013 - 23

Africa and Middle East which currently represents a base of 10 special purpose seismic offshore vessels,crew and project teams. We are operating on contracts mainly for the major oil companies. I’m 37 yearsold and got 2 kids of age 3 and 5 and living together with their mother for the 13 th year in a row, but notmanaged to get married yet Now to the case:Obviously EagleRace is up against a dilemma (which is the whole point). There is always the option ofgoing back to the sponsors and try to negotiate (as per Vincent’s comments) on the terms of exclusivityand by that trying to de-risk the Bauer deal and to get both eggs in the basket by giving and taking. Therisk is always that they both lose interest in the process and EagleRace and the deals fail altogether – solet’s look aside from that assumption right now.Given that a decision would have to be taken now:There is a reputational and business risk at stake for EagleRace should a negative media storm developaround Bauer. The risk and the impact of such a media storm around Bauer would have to assessed but ifworse comes to worst it is a question of survival for EagleRace as there is no fall back on sponsorship.Would EagleRace be able handle the ethical side should the allegations be proven to be true? WouldBauer themselves survive?I assume that EagleRace has a clear view of not executing prejudice and act on rumors and on that basisthey should accept the deal with Bauer. I would however, let Bauer at least comment on the allegations(due to concern) before signing (on ethical grounds). I assume Bauer would deny the rumors and it wouldbe up to EagleRace to take the risk, but at least they have been ascertained and they can defend that theydon’t (and shouldn’t)act on rumors.The way I see it , the alternative of choosing Goodbridge will not be sufficient either way to secure thehealthy finances of EagleRace and they are indeed running out of time and options. On the basis thatBauer is only subject to rumors at this stage and there are significant risks associated to both scenarios.I would choose Bauer at this stage.Best RegardsLeif Olav…now Benoit summarizes the arguments and opinions but is still convinced that the Baueroption is incompatible with Eagle Racings values and ethics…De : Benoit.Crochelet@gdfsuez.com [mailto:Benoit.Crochelet@gdfsuez.com]Envoyé : mercredi 19 juin 2013 18:41Dear team members,We should be able to communicate our decision by Friday Midday and we didn’t formalize any decision.I understand that the majority is favorable to the Bauer’s proposal. Claus and Peter assume that Bauerdidn’t do anything wrong and that the risk for Eagleracing is limited. Vincent and Leif Olav seem to bemore attentive at the risk of reputation even if they recommend to secure the business with Bauerbecause of the lack of time to investigate different options. And I consider that we cannot associate ourbrand to a company accused of weapons dealing. Even if the latest rumors are not documented, the CIOWhilem Grünbaun confirmed that Bauers was active in the weapons industry until more than a year agowhich is to me totally incompatible with our brand image and reputation.We are not industrials looking for investors, we are a racing team looking for a partner with whom we willshare sports successes and failures. Our business is not selling cars but selling passion and performancesto our fans and the medias. Without fans we don’t exist anymore. Believe me, sponsorship is my domainof expertise, we won’t survive to scandals by choosing a sponsor associated (today or yesterday) with theweapons industry.AAA/INSEAD/062013 - 24

I am afraid I can’t join you in your proposal. I still recommend to choose Goodbridge and prepare differentbusiness cases to operate successfully until additional sponsors can be found (e.g. financialcredit, operating cost savings, limited number of races…). Look around you (Brazil, Turkey…), consumersand citizens have the power to change the world and the way we manage the business. It’s a greatopportunity for us to show that EagleRacing is a sustainable company attentive to the ethical questionsand to the values supported by her public which will help us to find extra financial support.So, how do we proceed? Can I convince you?BenoîtPS Thursday is my last day at the office before CEDEP. Can we try to agree on a proposal by tomorrow?Claus proposes to go with a majority decision for Bauer…De : Claus Christian Torbøl [mailto:CCT@FLSMIDTH.COM]Envoyé : mercredi 19 juin 2013 21:22We have 4 team members who support that we conclude a contract with Bauer, so in case the result hasnot changed in the last week the team will propose to continue with Bauer.I propose we inform this to Albert if you agree?See you on Sunday.Regards,ClausVincent agrees to the majority decision but also shares his reflections on the team dynamic…De : BERCOVICI Vincent [mailto:Vincent.BERCOVICI@galderma.com]Envoyé : jeudi 20 juin 2013 07:18Well…What is striking with this exercise is that the constraints put onto us (“decide now no time for back upsolutions or investigations”) forces us to react as a group and not a team because we have not been ableto even see each others/know each other/agree on objectives…meaning I feel comfortable to be indisagreement with you and choose to play democracy, consensus can not be reached. So shall we say as agroup we vote for Bauer but as a team there is still more work to be done ?Vincent.…Peter too is fine with the Bauer choice…From: Peter Thomsen [mailto:PTH@FLSMIDTH.COM]Sent: jeudi 20 juin 2013 13:57HiI agreement, we are under time pressure - which is normal. It would have beennice to rhave more time and info.I, however agree to go with Bauer.See you Sunday.BrPeterAAA/INSEAD/062013 - 25

Benoit accepts the decision of his team members but is not willing to align. He resigns fromthe team and offers his services as external support and advice for the next episode…De : Benoit.Crochelet@gdfsuez.com [mailto:Benoit.Crochelet@gdfsuez.com]Envoyé : jeudi 20 juin 2013 18:42Leif Olav did not confirm his position but if we follow the democratic waythere is already a majority to vote for Bauer.I fully respect your decision but I have decided not to support it. I canaccept all kind of constraints but in the real life as for this exercise, Icannot compromise with values and ethical principles. In this case the timepressure and pure financial analysis should lead to a decision which Iconsider put in danger the future of the team. Should any assumptions aboutBauer will be proved we will lose our credibility, our fans, our crew and forwhat concerns me the self-respect. I can't assume that.Consequently I propose my resignation of the EagleRacing team. Finally it's anopportunity for me to launch my own business in Sponsorship Consultancy.After seeing episode 2, should you need any external support and advice, Iwould be honored to offer my services to your team.Nothing personal in this decision. I've really appreciated your commitment andtransparency and wish you all the best.Let's see what happens now.BenoîtPS It will be great to meet you in Fontainebleau…Vincent is confident that they will be able to transform their group into a team later…De : BERCOVICI Vincent [mailto:Vincent.BERCOVICI@galderma.com]Envoyé : jeudi 20 juin 2013 18:58By this time I guess we would have transformed this group into a team ! My commitment to you Benoitand to all. VincentLeif Olav also confirms his choice for Bauer…De : Saetenes, Leif Olav [mailto:Leif.Olav.Saetenes@CGG.com]Envoyé : jeudi 20 juin 2013 20:11Dear all,I see that the discussions have resultet in a sudden, but but perhaps not so unexpected turn.I will continue to stand by my decision to go for Bauer for the very reasons given in my previous email.Looking forward to seeing you. I will be arriving fairly late on Sunday though.Best RegardsLeif Olav SaetenesAAA/INSEAD/062013 - 26

…allowing Vincent to send the final email of Team 2 which has lost one member in theprocess: it will be BauerDe : BERCOVICI Vincent [mailto:Vincent.BERCOVICI@galderma.com]Envoyé : jeudi 20 juin 2013 20:15So decision is Bauer yet we lost a teammate (but just temporary !)AAA/INSEAD/062013 - 27

TEAM 3Rose kicks-off the debate in Team 3 by suggesting to first clarify the decision criteria. Shesummarizes the dilemma situation and proposes a table to collect comments and evaluatethe criteria…De : rose.delannoy@gdfsuez.com [mailto:rose.delannoy@gdfsuez.com]Envoyé : lundi 10 juin 2013 10:48À : ANGEHRN Albert; isabelle.i.landrot@renault.com; steven.parewyck@bekaert.com;diederik_schouten@deltalloyd.nl; silvano.veglia@federalmogul.com; frederic.marijsse@ores.netObjet : RE: [GMP15] TEAM 3: Towards Episode2 of EagleRacingDear all,Nice to “meet” the team!Following Albert’s message (in history of this mail), I’ll take the risk of jump-starting the process.Please find below some “ideas to kill” on my side.Suggestion is to start by clarifying which criteria’s are important for this decision and keeping our twooptions alive as long as possible (in case new constraints are brought forward to us; i.e. none of theoffers on the table has been approved by the sponsor’s CEO).A preliminary list of criteria’s is provided below.If this approach seems convenient to you, we could mark up the various drafts with our comments andvaluation of the criteria’s.Comments are also helpful to reach better understanding of our views.To help reading quickly through modifications, using a specific color can be helpful.When too heavy, just copy the table in a word document and we can work with track changes.Recalling the constraints (to be modified if you do not see them as I): Timing for decision: 4 weeks; 2 races left to invite potential sponsor and sign at the race (nb.could be signed elsewhere) Eagle’s sponsorship requirement for next year amounts to 18M€ Goodwill “ready” to sponsor 10M€/year without exclusivity; negotiated with marketingdirector – “approved” by Eagle’s CEO. Details of sponsorship supposedly known (4 weeksnegotiation) Bauer “ready” to sponsor 22M€/year with exclusivity for 3 years + 10-15 VIP treatment;negotiated with marketing director – not yet approved by Eagle’s CEO, details of sponsorshipunknown, major uncertainty on ethics.CriteriaFinancial survival fornext yearWeight Goodwill Bauer Commentsof criteria1-2-3 From 0 : killerTo 10: must goFrom 0 : killerTo 10: must go3 51010M€/yearProvides for full yearProvides only for part financial requirementsof the year’s financialrequirements“close to reach”agreement (4 weeksnego) with marketingmanager (not yetDiscussion withmarketing directorDetails (exceptexclusivity and nbr ofVIPs) totally nondiscussed.Can we consider that10M€ out of 18 neededprovides sufficient startfor the next season (?AAA/INSEAD/062013 - 28

Financial security for3 yearsEthicsCan the companyaccept to receivemoney from apotential weapondealer with acountry under unembargoProtection of brandnameWhat will be thevalue of the brandfor futuresponsorship (orother existingsponsors) if thecompany is linkedwith an perceived oreffective arms dealerKnown partner(credibility andtrust): how seriouslycan we take the offerfrom the sponsor?Value of “our type”of partnerapproved by CEO ofgoodwill)2 2Not considered in thisdealUnknown if CEOapproved10Provides for 22M€/yfor 3 consecutiveyears but unknown if,through negotiation,clause to step out ofthe sponsorship couldbe required by BAUERDo you agree thatfinancial security isweighted below thefinancial security forthe coming year takinginto consideration thatfor subsequent years,hypothesis being thatother sponsors can befound?3 8 2 (could become 0) Do you agree that goingagainst UN embargo onweapons deals if a killeron ethics terms?3 8 2 (could become 0) Do you agree thathaving a sponsor with aperceived (no proof of)weapons’s deal againstUN embargo is a killerfor EAGLE’s brandname?What is the value ofEAGLE’s brand name forfuture sponsorshipagreement (or evenother possible existingfinancial sources)?2 5 3 Weight of criteria ratesonly 2 (could even by 1)as partners can changestrategy anytime (cf.former sponsor) andboth offers on the tableare negotiated at thelevel of marketingdirector (not yet fullapproval by CEO)1 Almost irrelevantcompared to othercriteria?Best regards,R de Lannoy+32 2 510 76 64+32 474 94 08 09AAA/INSEAD/062013 - 29

…now Frederic shares his reflections on the decision making process to agree on as a team.He suggests different approaches and ideas and calls for feedback…De : frederic.marijsse@ores.net [mailto:frederic.marijsse@ores.net]Envoyé : lundi 10 juin 2013 11:24Hello everyone,You’d probably agree with my saying that a decision making process involving discussion andinteractions can already become difficult when in face to face and between people who know eachother and sharing the same “values/corporate culture”…Not only didn’t we get a chance to get to know each other, there is also a good potential formisunderstanding given the communication means we are about to use.Albeit we are asked to do so while having some kind of fun, hopefully ;-)Given all that, may I suggest we agree on a communication process and a schedule, in order to discussand propose a sound alternative, or a decision to Gianluca ?What do you think if we share per E-mail our understanding of the situation and the suggestions madefor Episode One ?Shouldn’t we agree to make a short summary of each one of the positions sent last week ? and work onthat basis ?Is there someone tempted by the task ? ;-)Shouldn’t we agree to use a simple tool to call for the facts and measure the trade off between risk andopportunity ? Any suggestions ?Are we allowed to call for a skype- meeting, in the late evening when the kids and the bosses areasleep (at last..) ? Or more, let say one to get to know each other and agree on the process and a secondto actually get to the “decision”If E-mail is mandatory, we should agree on a process to avoid E-mail traffic congestions andchaos..although we all know by experience that it doesn’t happen in our ever day life ..Other communications ?If someone knows a better solution/process, please share with me.Best regardsFred.… he also thanks Rose and agrees to complete the criteria table. In addition he suggestsasking questions to get a better understanding of the dilemma situation and shares hisindividual response in favor of Goodbridge…De : frederic.marijsse@ores.net [mailto:frederic.marijsse@ores.net]Envoyé : lundi 10 juin 2013 17:53Thank you for your proposal,Decision criteria are indeed of great importance before.. and after.. ;-) I couldn’t agree moreAAA/INSEAD/062013 - 30

The practical organization of our work should still be addressed, don’t you think ?When it comes to the heart of the subject, I will try to use your template .Furthermore, shouldn’t we think of some questions that could be asked to the professor in order toconfirm or precise our understanding of the situation and the range of possibilities ? Should it be strictlyforbidden, we should then state precisely all hypothesis underlying our understanding and decisionproposalFor instance, I ‘m not sure the commitment of Bauer is as concrete as it seems, it can be though, but inmy opinion, the descriptive part of the video fell a bit short tot that respect, don’t you agree ?I will complete your template with my understandingTo make sure and give some context, please find here-after my reply for Ep1. Ok maybe a bit ofstonewalling (blalba) but it was early morning when I watched and wrote…so please forgive me..please find hereafter my understanding of the situation and my advice to Gianluca,What does Eagle Racing need?Given its track record and its recent achievement, Eagle Racing needs a new main sponsor to further develop its business andpotentially, a few more in order to diversify its sources of funding and gain access to a portfolio of investors and sponsors.Eagle Racing needs reliable and stable partners.Given that its main sponsor has cancelled its participation, Eagle begins to feel the pinch and could experience some shortageif it doesn’t manage to raise sufficient funding or credit facilities. However, one should call for the facts and not get confusedwith feelings and short-termism.1) Sir Ralph Winfield and the Goodbridge companyIs a happy, enthusiast, passionate kind of person.Says he actually wants to sponsor EagleSir Ralph takes time to see if he could go along with the people of eagle, all the small talk part is all about knowing eachother and sensing the possibility of long term partnership (values, spirit..)Money, terms or conditions are not discussed during the first meeting with Sir Ralph (he relies on Benjamin for the details).The deal could be signed of at 10MEUR/yearMaybe there’s a potential for more and maybe Winfield could introduce Eagle to other partners to joint the adventure.2) Walter Smith and Bauer IndustriesOne could say he hardly cares about racing.It is more a way for him to offer some kind of VIP-experience for his prospects or business partners.One could question its reliability and interest over timeThe deal is not sealed yet, but he utters a lot of demands and there’s little room for negotiation, every word looks like a take itor leave it offer.Eagle could become in thrall to Bauer industries exclusive sponsorshipHe makes a rather conditional commitmentThe company is already involved in some mediatic turmoil that could reflect adversely on the company and its partners.What if allegations are confirmed? Not every body would agree with selling goods in a breach of an UN resolution, exceptmaybe for some kind of Russian investors..3) Advice to GianlucaPolitely decline Walter Smith’s offer while being neutral.Explain that as long as the suspicions aren’t waived, eagle couldn’t enter in a business relationship with him.Explain Eagle want to enter in a balanced partnership and that the terms and conditions he proposes are not in the vain of thepartnership Eagle seeks.Secure the deal with Goodbridge and expose the situation to Sir Ralph Winfield to see if it could be possible to find othersponsors.Imagine How to leverage the Goodbridge sponsorship, etc..Kind regardsFredericAAA/INSEAD/062013 - 31

…Diederik joins the discussion and agrees with Frederic to sign with Sir Ralph…De : diederik_schouten@deltalloyd.nl [mailto:diederik_schouten@deltalloyd.nl]Envoyé : lundi 10 juin 2013 23:11Dear all,Nice to meet you in "reply all emails" ;-)I will use the template later on this week.My advise, that I have sent to the professor, is more or less the same as Frederic's advise:"They should go for the deal with Good Bridge. I realize that they will have a potential funding problem of 8 mlnEURO.Possible solutions for funding problem:- discuss funding problem with Sir Winfield. Perhaps Eagle Racing can use the network of Sir Winfield to getcontact to other potential sponsors. For example: CEO's of other compagnies with the same passion for oldFerrari's.-extra budget cuts"Kind regards,DiederikI now advise the Team to have a look at an interesting video …De : ANGEHRN AlbertEnvoyé : mardi 11 juin 2013 00:28Dear Diederik, Frederic, Rose, Isabelle, Steven and SilvanoJust noticed that you started your exchanges in an interesting way, with Rose proposing to firstconsider different criteria. Then Frederic and Diederik started sharing their individual preferences(apparently both for Sir Ralph).This is an excellent point to propose you to watch a brief youtube video called “Ash ConformityTest” which describes a very interesting team dynamic. Perhaps watching this video can inspire youon how to best proceed in exploring this dilemma together.Best wishes, and have fun with the video (yes, it is kind of funny, although it also makes you think …)-albertINSEAD… Steven now proposes to disclose individual recommendations and adds his comments intothe table…De : Parewyck Steven [mailto:Steven.Parewyck@bekaert.com]Envoyé : mardi 11 juin 2013 02:08Dear all,It would be interesting to know each other’s intuitive opinion and share argumentation, before starting adebate.AAA/INSEAD/062013 - 32

I have added my comments to Rose’s table and I invite each of you to do same before Friday June 14 th endof business.Best regards,StevenAAA/INSEAD/062013 - 33

… Frederic now has a plan and a list of questions that he shares with me…De : frederic.marijsse@ores.net [mailto:frederic.marijsse@ores.net]Envoyé : mardi 11 juin 2013 03:21Dear Sir,I didn’t watch de video yet, but I suppose it could underline how sharing our views could prevent orhinder “non-mainstream” point of views..But I hope that there will be someone to favor the Bauer solution, if not …I’ll try to play devil’s advocate ;-) one has to remember that racing was funded for decades by Tobacco industries and that everyone isinnocent unless proven guilty, one could argue that the probability of loosing other sponsors due themediatic issue is relatively small at least if one consider the next season..etc.In order to check our understanding (at least mine) and assess de range of possible, can I ask a fewbackground questions ?F.ex.AAA/INSEAD/062013 - 34

- Does the contract with Eagle’s former main sponsor allow for leaving on such a short noticewithout any penalties or restrictions ?- Is Eagle struggling for la long time in order to find sponsors? How is the supply side of thesponsoring currently doing ?- How many other sponsors do Eagle have? Is it thinkable to ask them for a bail out?- Leveraging Goodbridge : which are this company’s main partners ? which are the company’s maincompetitors ?- Leveraging Bauer : same notions, partners, competitors?- Can Eagle buy some time for example by asking its sponsors to fund the cash in advance ?- Isn’t it possible to get credit facilities ?- Did the Ep1 video imply that the commitment of Bauer was as clear/strong as the one picturedfor Goodbridge ?- Can we ask for some probabilities … ;-)- What is the civic, ethic sensitivity of the racing business in general ? And with Eagle’s othersponsors (current and prospects) : to assess if the ethic issue is an actual issueBest regards… he agrees with Steven to share opinions and continues to reflect on the decision makingapproach and the possible consequences of signing the deal with Goodbridge…De : frederic.marijsse@ores.net [mailto:frederic.marijsse@ores.net]Envoyé : mardi 11 juin 2013 03:22Agreed.De : frederic.marijsse@ores.net [mailto:frederic.marijsse@ores.net]Envoyé : mardi 11 juin 2013 04:28Let me come back to the process:How are we going to organise the debate part ?Does somebody have similar experience of written debate/decision making ? (I have some ideas but..)How should we organize de “””voting”””” of the proposed alternative/decision ?Voting a motion without sufficient contradictory debate will prove inefficient…indeed the ash videoillustrate the herd syndrome…On the other hand we could all agree to go wrong ;-) after all Sony did manage not to go for “iPod like”while having de walkman, IBM with pc..etcMore seriously, what are de decision alternatives that should be weighed ?AAA/INSEAD/062013 - 35

At the end, If we can’t get the money for eagle to survive in an ethical manner and in a well balancedpartnership (all is well, ends well ;-), what are the actual choices?Sell Eagle?Joint with another racing team (more profitable yet less successful) ?engage one pilot/car, not 2 ;-)go for one year full control of Bauer that could prove less painful than expected or on the contrary addinsult to injury ?we will see on Friday..… Rose suggests continuing collecting arguments in the reformatted table and proposes aclear action plan with timing, including two scheduled conference calls. Finally she sharesher individual answer…De : rose.delannoy@gdfsuez.com [mailto:rose.delannoy@gdfsuez.com]Envoyé : mardi 11 juin 2013 11:00Thanks for the practical formatting under XLS.I made small modifications in my comments and added a criteria on exclusivity. I will leave myintuitive opinion deliberately opened (see comment in the table).Process wise, I find the new table efficient to gather all arguments and view points (as illustrated bythe video “ash conformity test” it will help us keeping independent opinions).Decision (for the 21/06) will probably not be the last but only one in the process: i.e. negotiate (inpriority) with X, to reach objective a,b,c AND (until signature) keep opened possibilities with sponsorY with objective to improve points a,b,c. If we do not receive “new constraints” applying to ourdecision case (i.e. elements of clarification from Albert), we could build our reasoning and consensusby taking assumptions (on which Albert might react). See line added at end of table “assumptionsmade” besides “additional questions to clarify situation”.Following the trend from Frédéric and Steven, here is a suggestion for the course of actions: 14/06 : all initial comments in the table by Friday morning. Remark: putting our scores andweighting value could prove the most difficult. 17/06: conf call (pm) – max 1h.Agenda: highlight major points of agreement / disagreement in the team. Clarify what needsto be worked on to resolve points of disagreement. 18-19/06: any further action identified in conf call on points of disagreement – mail exchange 20/06: Final decision conf call (pm) – max 1hPlease confirm if this is OK for you. Date and timing can be adapted (can be done by doodle to avoidtoo many mails. Conf call –BE number – can be provided if practical for all).Remark: this team is without a “chef”; only active participation from all will enable us to come to aconsensus decision (as requested in the exercise).My initial reaction on Episode 1- what Gianluca should do was: Recall ethics and value (devalue) of (tarnished) brand name even if it is not written in firm policy reports of thecompany Urgently correct Joep’s unpreparedness by :o requiring full check on Bauer as well as on recent press allegations(why was it not done considering that it is one of the last 2 potentials for sponsorship)AAA/INSEAD/062013 - 36

Kind regardsRoseCriteriao requiring working on financials in relation with an exclusive offer(nb unpreparedness from Joep – should have an file for exclusivity and margin for negotation)o checking with CEO for his views on Bauer (as was done for goodwill)(NB. Why asking CEO on Goodwill and not mentioning Bauer?)o require to go back to Bauer to indicate that proposal needs further working before the company cancome back to him(NB. Why did Joep accept a WE delay for “negotiating” a complete new proposal when he negotiatedseveral weeks with goodwill?;why Joep did not do research on his WE for such potential major deal impact?)Depending on the past nego with Goodwill, possibly check with Goodwill if they would adapt/improve their offertaking into consideration that the company might consider another exclusive proposalINTUITIVE OPINIONFinancial survival fornext yearFinancial security for3 yearsWeightofcriteriaGoodwill Bauer Comments ROSE1/2/3 From 0 : killer From 0 : killerTo 10: must goTo 10: must godeliberatly left open.Opportunity provided by Bauershould be thoroughly looked atand (fictive) background work +negotiation should clarify theirintentions, commitment, realityof press coverage and try tomove them away fromexclusivity requirements.3 5 10 Can we consider that 10M€ outof 18 needed provides sufficientstart for the next season ?10M€/yearProvides for full yearfinancial requirementsProvides only for partof the year’s financialrequirements“close to reach”agreement (4 weeksnego) with marketingmanager (not yetapproved by CEO ofgoodwill)Discussion withmarketing directorDetails (exceptexclusivity and nbr ofVIPs) totally nondiscussed.Unknown if CEOapproved2 2 10 Do you agree that financialsecurity for 3 years is weightedbelow the financial security forthe coming year taking intoconsideration that forsubsequent years, anything canhappen (sponsors cancels itscomitment; new sponsors canbe found)?Not considered in thisdealProvides for 22M€/yfor 3 consecutive yearsbut unknown if,through negotiation,clause to step out ofthe sponsorship couldbe required by BAUERAAA/INSEAD/062013 - 37

Exclusivity requirmentfrom sponsor2 3no exclusivity1exclusivityEthics 3 8 2 (could become 0)Exclusivity can only be a risk asEAGLE will be totally dependenton BAUER; Eagle should pursuea strategy of sponsordiversification to manage therisk of default (for whicheverreason) of some of its sponsors.Also is will allow Eagle to lookfor other sponsors if financialrequirment increase above22M€ .If exclusivity is nonnegotiatable, then mechanismsshould be included in thesponsorship contract thatprevents potential futuredefault of payment.Can the companyaccept to receivemoney from apotential weapondealer with a countryunder UN embargoProtection of brandnameWhat will be thevalue of the brand forfuture sponsorship (orother existingsponsors) if thecompany is linkedwith an perceived oreffective arms dealerKnown partner(credibility and trust):how seriously can wetake the offer fromthe sponsor?Value of “our type” ofpartnerASSUMPTIONS MADEADDITIONALQUESTIONS TOCLARIFY SITUATION3 8 2 (could become 0) Do you agree that having asponsor with a perceived (noproof of) weapons’s dealagainst UN embargo is a killerfor EAGLE’s brand name?What is the value of EAGLE’sbrand name for futuresponsorship agreement (oreven other possible existingfinancial sources)?2 5 3 Weight of criteria rates only 2(could even by 1) as partnerscan change strategy anytime(cf. former sponsor) and bothoffers on the table arenegotiated at the level ofmarketing director (not yet fullapproval by CEO)1 Almost irrelevant compared toother criteria?AAA/INSEAD/062013 - 38

Isabelle joins the team and explains her decision in favor of Goodbridge…De : LANDROT Isabelle [mailto:isabelle.i.landrot@renault.com]Envoyé : mardi 11 juin 2013 12:18OK, for me for this process.I’ll complete the table for the end of the week.Nevertheless, let me explain my reaction when I saw the episode 1. I only emailed one word to ProfessorAngehrn (Goodbridge) but let me explained my reasons a little bit more.The solution proposed by this investors seemed to me much more constructed (already validated by CEOof the company, whereas the other on was for me more the result of a first discussion (Goodbridge wasready to sign on the next race, whereas Bauer said he would decide after the next race in function of howthe organization would be, of his feelings after the race???).Second point, I think Goodbridge is much closer to the company values than Bauer.But I also know that 10M is not enough for next year budget….IsabellePS: for conf call meetings on 17 and on 21, let me suggest some schedule, in order to book quickly in ouragendas, as I assume it is a little complicated for all of us in term of agenda :- 17 after 16H- 20 after 18H… Frederic creates a “deliberation document” to document the decision process and to helpgetting a full understanding of the dilemma at hand…De : frederic.marijsse@ores.net [mailto:frederic.marijsse@ores.net]Envoyé : jeudi 13 juin 2013 12:46Dear Colleagues,I once experienced a rather awkward crisis group decision making process and since then, I tend to take sometime in order to make sure that “decision makers” truly understand and actually agree on what they just decided,why they decided so and given which context/environment.In other words : to be sure of the commitment and also to be sure everyone can explain the decision to others..To do so, I’d like to propose a short memo that we could agree on as a form of “deliberation document” ( a draftto be enriched if we decided to use it)Given E-mail messages only transport 20% of the actual message, I’d like to make a important precision in orderto remain in good terms with everyone: I do not pretend I know something or even that it’s a useful thing to do,but to learn you have to experiment right ;-) I’m really interested to know your opinion afterwards about my littlebad habit.I think it is complementary to the XLS that we will actually use to make the decisionIt could even be of some help before debating to put us in the picture although its real purpose is to be completedwhen decision has been taken.. to check and document the decision … ;-)If you think it is too much, which is actually the case within the framework of a game…please do not hesitate tobe outspoken ;-)Having said that, there are some alternatives, questions and background checks in there that I would like to directto the professor in order to eventually get some more intel and help us in our task.I also hope that the professor will give us some videos about disastrous decisions making process to have somefun while reminding us to stay humble… ;-)Best regardsFredericAAA/INSEAD/062013 - 39

DATE :Environment and Context:What we know : actually not much (Business model, value chain, competitors, supply/demand forsponsorship, etc..)Current issues and subsequent risks :Eagle’s main sponsor cancelled its participation.The company needs to find 18M€ for next season (actual treasury forecast not known)If the company do not provide for the money, it risks going out of the businessTiming not precisely known : When does the problem arise if Eagle does nothing / or put itanother way How long does Eagle have before risk transforms into actual crisis ?Decision criteria and weight :Weight : 0 = killer / 10 = must go1. Financial survival for next year2. Financial security for 3 years3. Exclusivity requirement from sponsor4. Ethics5. Brand / reputation / media positioning6. Concrete commitment of the offer7. Balanced partnershipObjectives :1. Short Term : Get the funding for next season2. Long Term : Gain access to a portfolio of stable and reliable investors/sponsors within a wellbalanced relationship.Alternatives :Can we buy Eagle some time ?1. Is it advisable/possible to think of a temporary cost reduction ? Yes / No / Need more intel2. Can Eagle obtain a payment break/credit from its suppliers ? Yes / No / Need more intel3. Can contractual dispositions with former main sponsor bring some kind of salvation (penaltiesetc..) ? Yes / No / Need more intel4. Can Credit or treasury facilities be found (loan, bond, share issue to public) ? Yes / No / Needmore intel5. Ask sponsors to pre-finance (faster or more than 1 season funding) to overcome cash shortageand buy time to find other sponsors ? Yes / No / Need more intelIs mutation of the company an option ?o Sell the company? Yes / No / Need more intelo Joint with other racing team? Yes / No / Need more intelCan we overcome the problem and to which extend ?1. Ask suppliers to joint as partners (if not already the case) ? Yes / No / Need more intel2. Ask current sponsors to raise their contribution ? Yes / No / Need more intel3. Find other sponsors ? Yes / No / Need more intelAAA/INSEAD/062013 - 40

oLeveraging : networking through partners/prospects : Approach competitors andpartners of sponsors & prospects in order to get them to become sponsors• Current sponsors ? Yes / No / Need more intel• Goodbridge ? Yes / No / Need more intel• Bauer? Yes / No / Need more intelo The Goodbridge – Bauer alternative :• Goodbridge? Pro’s / Con’s• Prospect Bauer? Pro’s / Con’sIntel needed on the Goodbridge – Bauer alternative1. Is Goodbridge willing to pay for exclusivity or raise its share ?2. What is the level of preparation and knowledge of the Bauer offer (is it actual, virtual ?)3. What is Bauer going to do about the “Ethical” issue ?Just to remind that Nike has had some issues about “child-workers” and Oil companies also faced‘human rights” debates at some point… But It didn’t dramatically affect their partnerships ininternational sports competition (they worked on it of course )4. Is Bauer willing to ease the terms and conditions5. Is Bauer willing to enter in a shorter term sponsoring6. …Decision proposal…a couple of days later, Frederic inform his team that he will be going abroad and thereforestarts sharing his point of view on both possible sponsors….De : frederic.marijsse@ores.net [mailto:frederic.marijsse@ores.net]Envoyé : samedi 15 juin 2013 21:53Hi everyone ,I’m going abroad with the kids, It is highly probable that won’t be able to reach civilization (internet orphone) in time to debate and have a live conversation with you. I’ll do my best though.If I can’t, I hope I can still read from you (I’ll keep in touch … somehow)Question to the professor : are going to receive info later on in the process…meaning before Friday…ornot ? …without any further elements we could be beating around the bush rather rapidlyShouldn’t we get more intel, we’d have to make some assumptions and take a position;Should I be unable to reach you in time, here’s my point of view … it’s is rather difficult to sense the thingor have a guess about probabilities..soIf we assume there’s reasonable probability and time (there are a lot of alternatives that can beconsidered), we could go for the easy ethical and apparently less demanding Goodbrigde offer to startwith..AAA/INSEAD/062013 - 41

Other assumption : If we assume that the time is too short, that there’s absolutely no preparation,anticipation possible and that the probability of default too high in other words : it actually seems that weare chasing rainbows (meaning all other alternative are to be disregarded), and assuming the Bauer offeris concrete and serious, better go Bauer, but this time with a real negotiation (I’m not sure he would beinterested but..), than go bust (although..just kidding ;-).Nobody goes down without a fight.How do we see the glass, half full or not. I like to see it half full ( maybe half fool )If I can’t participate…my bad.. I’ll back your decision either way, that’s my commitment.See you soon.Frederic.…now Silvano adds his comments to the file and suggests setting up a conference call….De : Veglia, Silvano [mailto:Silvano.Veglia@federalmogul.com]Envoyé : samedi 15 juin 2013 23:21Hi Everyone from Italy...just had chance to fill the xls now so...here it is hope still in time for thedebate...as regards to the next step, unless I missed something (very likely...) I believe there are proposal fora call either the 17 or the 20...I would go for the 20 (after 18th) and since I was late in replying I tryto "recover" by volunteering to call the meeting via our intercall systemif you are ok for 20th after 18h (18.30?) kindly let me know and I'll set up the callciaoSilvanoCriteriaINTUITIVE OPINIONFinancial survival for next yearFinancial security for 3 yearsExclusivity requirment from sponsorEthicsCan the company accept to receivemoney from a potential weapon dealerwith a country under UN embargoProtection of brand nameComments SILVANOGOODBRIDGEBudget cuts for next season if no possible to find other sponsor tocomplement GoodbridgeHowever budget cuts could not be welcome by Goodbridge (less budgetprobably means less victories and Goodbridge may not like that)This should be discussed upfront with Goodbridge who may help andsuggest other sponsors to reach common benefitsnot sure financial security for 3 years is so important, surely is moreimportant for the next year as afterwards things may change accordingto racing league overall performance and specific Eagle's success (orfailure)don't really like it as leads to too much dependance, moreover with acompany like Bauer not really "sinergetic" with Racing. So, for me thiscriteria weights 3 and Goobridge scores 10irrespectively if Bauer supplies or not countries under UN embargo,weapons goes not really well with racing (at least to me). Racing is highlyemotional thing, people need to like and support the team, the pilot etc,anything linked with weapons is surely good for business but not for"emotions"so, to me Bauer is already 0agree with Steven 100%...reputation is key for long term…and if I wasEagle's manager I would keep long term reputation in the equationAAA/INSEAD/062013 - 42

What will be the value of the brand forfuture sponsorship (or other existingsponsors) if the company is linked withan perceived or effective arms dealerKnown partner (credibility and trust):how seriously can we take the offer fromthe sponsor?Value of “our type” of partnerASSUMPTIONS MADEADDITIONAL QUESTIONS TO CLARIFYSITUATIONnot sure is so irrilevant…valuing and leveraging on partner image can be abenefit for Eagle…so for me is a weight 2 (and Goodbridge is a 6…vsBauer 2)…Isabelle fills in her arguments and agrees on the proposed date for the call….De : LANDROT Isabelle [mailto:isabelle.i.landrot@renault.com]Envoyé : dimanche 16 juin 2013 16:01I added my comments on the excel.Ok for me, but I’m only available between 18h an 18H30 the 20.ILCriteriaINTUITIVE OPINIONComments ISABELLEGOODbridgeFinancial survival for next yearGoodbrige proposal is firm, whereas bauer is possiblebet with goodbridge we still lack 8M eurosFinancial security for 3 yearsExclusivity requirment from sponsorEthicsCan the company accept to receive money from apotential weapon dealer with a country under UNembargobauer has a bad reputation and it can impact ourreputation if we sign with him, and if rumoursbecomes trueProtection of brand nameWhat will be the value of the brand for futuresponsorship (or other existing sponsors) if thecompany is linked with an perceived or effective armsdealerKnown partner (credibility and trust): how seriouslycan we take the offer from the sponsor?Very credible, groodbrige is a fanatic of cars. Onceagreed he will not drop usValue of “our type” of partnerASSUMPTIONS MADEADDITIONAL QUESTIONS TO CLARIFY SITUATIONAAA/INSEAD/062013 - 43

Rose confirms her availability….De : rose.delannoy@gdfsuez.com [mailto:rose.delannoy@gdfsuez.com]Envoyé : mardi 18 juin 2013 08:38Thanks for offering to set up the call. I will make myself available whichever the time. 6 or 6:30 pm.Rose…and in order to reach a common understanding of the challenge suggests splitting the teamin 3 Task Forces…De : rose.delannoy@gdfsuez.com [mailto:rose.delannoy@gdfsuez.com]Envoyé : mardi 18 juin 2013 09:21Dear all,In view of our decision to come, I would like to make sure we understand all in the same way whatdecision is required from the team.Based on the original instruction, I believe it is not “which sponsor” we must choose but which plan ofaction to come to a (future) final decision.See extract from the instructions:Thank you very much to those who watched Episode 1 and sent me your individual decision on the best partnerfor EagleRacing (and also to those who did not find the time to do it, but will hopefully have a look at theEpisode now, as described in the email below). You now probably expect to be able to see what happens inEpisode 2. But before proceeding to the next step we need a Robustness Check for this critical decision forEagleRacing. And we’ll do this in Teams!So, as you can see, you are now part of Team 3, and you will be able to see Episode 2 and the followingEpisodes, after deciding together on the best course of action.For example, I suggest: Split the team in 3‣ Team A: works on improving/securing Goodbrigde sponsorship (objectives: use the XLS and worddoc for the issues brought up under Goodbridge proposal)‣ Team B: works on clarifying Bauer’s intention and press issues, strengthening our confidence inthe deal (objectives: use the XLS and word doc for the issues brought up under Bauer proposal)‣ Team C: works on the EagleRacing issues brought up in Frederic’s document especially underchapter Alternatives.Process wise: start a joint meeting clarifying the context, issues and risks.Set a timing for work in teams and interim sharing sessions to adapt possible negotiation with Goodbridgeand Bauer based on (interim) results from the teams.If you share the same understanding on the original question and the suggested plan of action, we thenneed to confirm together the objectives of team A & B.NB. the XLS version here included is (I think) the latest version (sent by Isabelle on 16/06)RegardsRoseDATE :Environment and Context:What we know : actually not much (Business model, value chain, competitors, supply/demandfor sponsorship, etc..)AAA/INSEAD/062013 - 44

Current issues and subsequent risks :Eagle’s main sponsor cancelled its participation.The company needs to find 18M€ for next season (actual treasury forecast not known)If the company do not provide for the money, it risks going out of the businessTiming not precisely known : When does the problem arise if Eagle does nothing / or put itanother way How long does Eagle have before risk transforms into actual crisis ?Decision criteria and weight :Objectives :Weight : 0 = killer / 10 = must go8. Financial survival for next year9. Financial security for 3 years10. Exclusivity requirement from sponsor11. Ethics12. Brand / reputation / media positioning13. Concrete commitment of the offer14. Balanced partnership3. Short Term : Get the funding for next season4. Long Term : Gain access to a portfolio of stable and reliable investors/sponsors within awell balanced relationship.Alternatives :Can we buy Eagle some time ?6. Is it advisable/possible to think of a temporary cost reduction ? Yes / No / Need more intel7. Can Eagle obtain a payment break/credit from its suppliers ? Yes / No / Need more intel8. Can contractual dispositions with former main sponsor bring some kind of salvation (penaltiesetc..) ? Yes / No / Need more intel9. Can Credit or treasury facilities be found (loan, bond, share issue to public) ? Yes / No / Needmore intel10. Ask sponsors to pre-finance (faster or more than 1 season funding) to overcome cash shortageand buy time to find other sponsors ? Yes / No / Need more intelIs mutation of the company an option ?ooSell the company? Yes / No / Need more intelJoint with other racing team? Yes / No / Need more intelCan we overcome the problem and to which extend ?4. Ask suppliers to joint as partners (if not already the case) ? Yes / No / Need more intel5. Ask current sponsors to raise their contribution ? Yes / No / Need more intel6. Find other sponsors ? Yes / No / Need more intelo Leveraging : networking through partners/prospects : Approach competitors andpartners of sponsors & prospects in order to get them to become sponsors• Current sponsors ? Yes / No / Need more intel• Goodbridge ? Yes / No / Need more intel• Bauer? Yes / No / Need more intelAAA/INSEAD/062013 - 45

o The Goodbridge – Bauer alternative :• Goodbridge? Pro’s / Con’s• Prospect Bauer? Pro’s / Con’sIntel needed on the Goodbridge – Bauer alternative7. Is Goodbridge willing to pay for exclusivity or raise its share ?8. What is the level of preparation and knowledge of the Bauer offer (is it actual, virtual ?)9. What is Bauer going to do about the “Ethical” issue ?Just to remind that Nike has had some issues about “child-workers” and Oil companies also faced‘human rights” debates at some point… But It didn’t dramatically affect their partnerships ininternational sports competition (they worked on it of course )10. Is Bauer willing to ease the terms and conditions11. Is Bauer willing to enter in a shorter term sponsoring12. …Decision proposalDiederik will be able to join the call…De : diederik_schouten@deltalloyd.nl [mailto:diederik_schouten@deltalloyd.nl]Envoyé : mercredi 19 juin 2013 22:06Hi,I'm sorry for the silence on my the last days. I'm available for the call tomorrow anytime after18:30h.Groeten,Diederik…Rose would like to get some feedback on her suggested plan of action…From: rose.delannoy@gdfsuez.com [mailto:rose.delannoy@gdfsuez.com]Sent: jeudi 20 juin 2013 11:05It seems we cannot all join at the same time.My suggestion: conf call from 6 to 6:45pm. Call number +32 2 789 81 61Hopefully some can join at 6pm (Isabelle), late comers at 6:30 pm (Diederik, Silvano, Frederic?) will beable to be up-dated and finalise. Mail with conclusions and “decision” to be sent to Albert tomorrow.OK for everyone?Back to my previous message (attached for convenience), are we all in line on what must be decided: i.e.the plan of action?RegardsRoseAAA/INSEAD/062013 - 46

…now she suggests a meeting agenda and drafts and action plan for the 3 Task Forces…From: rose.delannoy@gdfsuez.com [mailto:rose.delannoy@gdfsuez.com]Sent: jeudi 20 juin 2013 15:13For those who can manage it, could you confirm whether you will participate to the conf call?As it will be difficult to manage 2 group of participation within a very short time, I suggest to follow thescript below during the conf call and indicate 1) agreement 2) non agreement, 3) proposed adaptations on:1. Overall concept of plan of action described below2. On objectives of the task forces3. On the processFor those who cannot join, thank you for giving your comment by mail.Hear you later,RoseDRAFT Plan of action: Team 3 suggests to manage the decision process as follows:Establish 3 task forces with the following tasks:‣ Task force A: works on improving/securing Goodbridge sponsorship. Objectives:1. Secure the sponsorship for 10M€2. Engage in exploring ways to manage the remaining 8M€ need by1. By considering if they can have ideas of sponsors2. By highlighting which type of budget cuts would be necessary (including numberof race to take part in)‣ Task force B: works on clarifying Bauer’s intention and press issues, strengthening our confidencein the deal in order to sign sponsorship. Objectives:1. Investigate on Bauer (including request to UN)2. Without waiting for investigation results, require Bauer to clarify the extent of truth ofinformation found in the press and indicate that should the information be correct,EagleRace is not willing to enter into a sponsorship agreement with them3. Based on hypothesis that EagleRace denies press allegation, start negotiating a step wisesponsorship agreement:1. For short term decision : sponsorship for next year without exclusivity2. For medium term: multiyear sponsorship under a range of possibilities (amount vsexclusivity and guarantees’ against default) to be decided in 6 month’s time‣ Task force C:1. For supporting short term decision with Goodbridge: establish plan of potential budgetcuts and impact (incl number of race Eagle racing would attend)2. For supporting medium term negotiation with Bauer:1. Establish budget planning for next 3 years2. Investigate means to manage the risks arising from and sponsor reuiringexclusivityProcess wise: Start a joint meeting clarifying the context, issues and risks. Set a timing for work and deliverablesSet interim sharing sessions to adapt possible negotiation with Goodbridge and Bauer based on(interim) results from the teams.Inform top management of Eagle Racing to secure their buying of the plan of Action and overalltargets, testing suggestions for new contact for sponsorship.AAA/INSEAD/062013 - 47

The call gets organized…De : Veglia, Silvano [mailto:Silvano.Veglia@federalmogul.com]Envoyé : jeudi 20 juin 2013 16:09Hello Rose – I will participate to the call, will join as 6 as at 6.30 I have another meeting (will try to delay ita bit if possible to attend up to the end)A+Silvano…and Rose volunteers to consolidate the documentation …De : rose.delannoy@gdfsuez.com [mailto:rose.delannoy@gdfsuez.com]Envoyé : jeudi 20 juin 2013 18:45Not to worry; had some comments from Isabelle and Silvano. mail to come tomorrow with smallmodifications hopefully that would will agree with.It remains a game.KRRoseDiederik unfortunately missed the call…De : diederik_schouten@deltalloyd.nl [mailto:diederik_schouten@deltalloyd.nl]Envoyé : jeudi 20 juin 2013 18:41I'm stil in a meeting..... I'm sorryGroeten,Diederik…after the call, Isabelle sends her suggestions for Task Force C…De : LANDROT Isabelle [mailto:isabelle.i.landrot@renault.com]Envoyé : jeudi 20 juin 2013 19:50Hello, following our discussion, here is my suggestion for Task force C‣ Task force C: Coordinate and define global startegy1. In parallel with task force A and B negociation :1. Establish budget planning for next 3 years2. Investigate means to manage the risks arising from and sponsor reuiringexclusivity3. Investigate potential budget cuts in case of Goodbrige sponsorship2. Organise the final decision about the sponsorship.See you next weekIL…and Rose drafts the possible final answer of Team 3, including the action plan of the 3 TaskForces…From: Date: June 21, 2013, 8:13:41 AM GMT+02:00Based on modification suggested at yesterday's conf call and drafting from Isabel, please find belowwhat could be our collective answer.AAA/INSEAD/062013 - 48

If Frederic and Diederik do not add anything, it logically becomes our final answer.Team 3 suggests to manage the decision process as follows:Establish 3 task forces with the following tasks:‣ Task force A: works on improving/securing Goodbridge sponsorship. Objectives:1. Secure the sponsorship for 10M€2. Engage in exploring ways to manage the remaining 8M€ need by1. By considering if they can have ideas of sponsors2. By highlighting which type of budget cuts might be necessary(including number of race to take part in)‣ Task force B: works on clarifying Bauer’s intention and press issues, strengtheningour confidence in the deal in order to sign sponsorship. Objectives:1. Investigate on Bauer (including request to UN)2. Without waiting for investigation results, require Bauer to clarify the extentof truth of information found in the press and indicate that should theinformation be correct, EagleRace is not willing to enter into a sponsorshipagreement with them3. Based on hypothesis that Bauer denies press allegation, start negotiating a stepwise sponsorship agreement:1. For short term decision : sponsorship for next year without exclusivity2. For medium term: multiyear sponsorship under a range of possibilities(amount vs exclusivity and guarantees’ against default) to be decided in6 month’s time3. Involve from beginning legal department in order to haveincluded elements of language in the contract that allow EagleRace toprotect itself (e.g. by stopping the sponsorship) should the pressallegation be confirmed.‣ Task force C: Coordinate and define global strategy1. In parallel with task force A and B negotiation :1. Establish budget planning for next 3 years2. Investigate means to manage the risks arising from and sponsorrequiring exclusivity3. Investigate potential budget cuts in case of Goodbrige sponsorship2. Organise the final decision about the sponsorship.Process wise: Start a joint meeting clarifying the context, issues and risks. Set a timing for work and deliverables Set interim sharing sessions to adapt possible negotiation with Goodbridge andBauer based on (interim) results from the teams.Inform top management of Eagle Racing to secure their buying of the plan of Action andoverall targets, testing suggestions for new contact for sponsorship.AAA/INSEAD/062013 - 49

Diederik fully agrees with the approach…From: Date: June 21, 2013, 8:55:27 AM GMT+02:00All,Very good approach. I agree. Thanks and looking forward to see you next week.Kind regards,Groeten,DiederikAAA/INSEAD/062013 - 50

TEAM 4I try to activate the team by encouraging them to know each other better …De : ANGEHRN AlbertEnvoyé : lundi 10 juin 2013 23:50À : peter.remory@bekaert.com; shab@flsmidth.com; adriana.carneiro-ribeiro@renault.com;stephane.deblaise@renault.com; mkd-us@flsmidth.com; luc.frankignoulle@electrabel.com;bernard.haine@ores.netObjet : RE: [GMP15] TEAM 4: Towards Episode2 of EagleRacingImportance : HauteHi Peter, Adriana, Stephane, Luc, Bernard, Shahid and MichaelI have seen that you have not started your exchanges yet. I would like to take the opportunity to sharewith your team an insight that many other management teams running this type of online simulationshave shared with me.The insight is simply that they found their virtual teams performance increased when the membersstarted first by briefly introducing each other through a small exchange called “2 Truths and 1 Lie”. Inpractice everybody would fill and send around a Table like the one below (and let all the others guesswhich one is the lie):Two Truths and a LieHi. Let me introduce myself.[My name]Introduce yourself with one sentence (like the one below) including 2 trueand 1 wrong statements about yourself. Try to make it hard to guess!My sentence.If I had to participate, I would write for instance:Introduce yourself with one sentence (like the one below) including 2 trueTwo Truths and a Lie and 1 wrong statements about yourself. Try to make it hard to guess!Hi. Let me introduce myself.[Albert]I really like racing, I drive a small electric car (Twizy), and Isat in Schumacher’s Ferrari F1 car.As for every insight … take it or leave it! … but I thought I would share this with you.Best wishes for a productive exchange, and for reaching the best possible consensus decision on whichone of the 2 potential sponsors EagleRacing should invite to the race.-albertINSEAD… Michael informs me that he will not participate…De : Michael Duricko [mailto:michael.duricko@flsmidth.com]Envoyé : mardi 11 juin 2013 00:03Albert, please be advised that I have been moved to the next cycle of the GMP beginning inDecember. Look forward to participating at that time.Best regards,Michael K. DurickoAAA/INSEAD/062013 - 51

I inform the others …De : ANGEHRN AlbertEnvoyé : mardi 11 juin 2013 00:34Thank you to let me know and see you next time!-albertPS: I will inform your Team.De : ANGEHRN AlbertEnvoyé : mardi 11 juin 2013 00:36Just for your information, I have just removed Michael from the Teams’ emails list as he just emailedme that he will not attend as he has been transferred to the next GMP.-albertDe : Michael Duricko [mailto:michael.duricko@flsmidth.com]Envoyé : mardi 11 juin 2013 00:42Appreciate that, thank-you.Regards,Michael DurickoShahid is still on a business trip…De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : mardi 11 juin 2013 05:22Hi Albert,My apologies. I have been and still am on business travel, this week in Mexico. I will do my best torespond tomorrow.Regards/Saludos/MvhShahid… but on the next day starts the exchange in Team 4 by sharing his 2 Truths and 1 Lie as wellas his preference for the Goodbridge deal…De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : mercredi 12 juin 2013 07:42Dear team,Looking forward to spending a couple of good weeks with you in France! Here is my “2 Truths and 1Lie”:I love meeting other cultures and I manage more than 6 languages. I was lucky to have lunch with thecrown prince couple of Denmark in Chile recently.Reg. the Episode 1: I would apparently recommend Gianluca to incline towards Goodbridge and startnegotiating with Sir Ralph and at the same time look further into the rumors on Bauer and othersponsors better than the two options or to supplement Goodbridge to reach the 18 mEUR target.Best regards,ShahidAAA/INSEAD/062013 - 52

… Peter continues the game and suggests collecting pros and cons for both options. He alsorecommends to further discuss with Sir Ralph…De : Remory Peter [mailto:Peter.Remory@bekaert.com]Envoyé : jeudi 13 juin 2013 11:55Good day to all !!Looking forward indeed to meet all of you and share some ‘interesting times’.My “2 truths + 1 lie”:- I like sports and sometimes go for an early morning run at 6.00am- I am building engineer and felt that I had to ‘coordinate’ myself the new house construction…it finally took me more then 3 years- Last month I was really lucky to have lunch in Milan restaurant in the presence of LionelMessi (being there with the Barcelona team for champions league)Regarding Eagle Racing:Just as Shahid, I also recommended to further explore possibilities with Goodbridge.As we need to find team consensus , I propose we try to share our view points(strengths/weaknesses) on both options. If you agree to this please feel free to add remarks:1) Goodbridge:a. Arguments ‘pro’i. Passionate about the core bizz of Eagle : racingii. Willing to develop a more personal relationshipiii. Longer relationship with Eagleiv. Accepting other sponsorsb. Argument ‘con’: today offering below budgetc. Opportunity: May be open to listen to Eagle’s concerns and willing to compromise ona better proposal2) Bauera. Arguments ‘pro’: Overshooting the budgetb. Arguments ‘con’:i. No real interest in racing, more about VP treatmentii. Negative publicityiii. Confronting approach, no compromising behavioriv. Requesting exclusivityc. Opportunity: ??RegardsPeter… in line with Luc, who proposes to invite both potential sponsors next Sunday as analternative to the simple Goodbridge option…De : Luc.Frankignoulle@electrabel.com [mailto:Luc.Frankignoulle@electrabel.com]Envoyé : jeudi 13 juin 2013 22:30Dear team,My “2 truths + 1 lie”:- I really like driving- I drive an electric car- I manage a program to prevent a potential Fukushima-accidentAAA/INSEAD/062013 - 53

Regarding Eagle Racing:At this stage and based on the different inputs (thanks to the ‘friends’ of Denmark’s crown princecouple and Lionel Messi ;-)), my preference also goes for a deal with Goodbridge. Actually, I would doas Shahid suggests (investigate further the rumors on Bauer, and in parallel look for other sponsors)but I’m also wondering whether we should take the risk to invite the 2 potential sponsors to therace (I know that it is not part of the possible scenarii, and I realize it may also sound ‘crazy’). It willprobably be an uncomfortable situation to manage, but the risk seems limited by the flexibility ofGoodbridge (in the positive case, we create such a fantastic VIP day that Bauer becomes open to newsuggestions from our end; in the opposite case, we definitively lose Bauer).Regards,Luc.…I inform the team that Rich will join the discussion…De : ANGEHRN AlbertEnvoyé : jeudi 13 juin 2013 23:20Dear Team 3. Sorry for the brief interruption. To “re-inforce” your Team let me introduce to you RichKELLEY, who just joined the Program and I have included in the email list of your Team. Pleasewelcome Rich in your Team and I really hope he will contribute to enhance even further the qualityof your Final Team DecisionBye-albertINSEAD…Shahid is looking forward to Rich‘s contributions….De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : vendredi 14 juin 2013 20:14Welcome aboard Rich!!Looking forward to get your valid input and meeting you in person.Best regards,ShahidRichard introduces himself, plays the game and shares his clear advice to sign with Bauer….De : KELLEY Richard [mailto:Richard.KELLEY@sercel.com]Envoyé : samedi 15 juin 2013 08:37Hello everyone,I have been on vacation so I am a little late in joining. I look forward to meeting all of you in a weekor so.My name is Rich Kelley and I am the Vice President of Operations for Sercel, the equipment division ofCGG. Sercel manufactures seismic acquisition equipment for the oil and gas industry.My 2T+1L - I am an avid golfer, I was born in Texas and have lived here most all of my life, I raisechampionship quarterhorsesAAA/INSEAD/062013 - 54

With regard to my opinion on the case, I would recommend the Bauer offer. It solves the immediateneeds of the company, which is cash flow. It provides for the current budgeted costs plusopportunities to grow with the additional 4 million each year. It also provides for continuity/stabilitywith the 3 year offer.I like Bauer's approach. They don't want to be in the business of running a racing team. They want aplace they can bring and entertain their exclusive clients. This should give Eagle more freedom tomanage their business. The risk with Sir Ralph is that he would want to be involved and have somesay as to how the business is run.All of the discussion about Bauer's possible publicity problems are speculation. In order to continueoperations Eagle needs funds. Bauer's offer best meets the needs of the business.I look forward to further discussions.Regards,Rich…Bernard joins the debate and shares his analysis of both options and to look for additionalsponsors to bridge the budget gap resulting from the Goodbridge offer….De : bernard.haine@ores.net [mailto:bernard.haine@ores.net]Envoyé : samedi 15 juin 2013 17:44Hello everyone, Sorry for being late in joining the discussion.My name is Bernard Haine and I am the asset manager of ORES [gas & electricity distribution].My 2T+1L : I am a keen gardener, I was born in Belgium and I like formula 1 racing.With regard to my opinion on the case:1) Goodbridgea. Pro’si. knowledge of car racingii. accepting other sponsorsb. con’si. well below budgetc. Risksi. Mingling into the day to day management of Eagled. Opportunitiesi. Possibility of getting a better deal through further discussions?2) Bauera. pro’si. Well above budgetii. 3 years stabilityiii. Hands off approach likely as he has no real knowledge in car racingb. con’si. Eagle’s eggs in one basketii. Mismatch between Bauer’s expectations (entertainment) and Eagle’s ones (racing..)c. Risksi. Negative publicityii. Too nice to be true?d. Opportunitiesi. Further growthAAA/INSEAD/062013 - 55

I would recommend a 2 tracks approach:1. Bauer’s reputation needs to be further investigated2. Look for other sponsors to close the gap between the Goodbridge’s offer and Eagle’s needs.I look forward to meeting all of you .Regards,BernardStephane contributes with his 2 Truth and 1 Lie….De : DEBLAISE STEPHANE [mailto:stephane.deblaise@renault.com]Envoyé : lundi 17 juin 2013 07:33Hello everyoneI am Stephane, in charge of Prototypes Manufacturing Division @ Renault, very happy to join thegroup.My 2 truths and lie :I love swimmingI lived twice in Brazil a few years agoI prefer to go directly to the results rather than to go deeply in detailsStéphane…Shahid welcomes Stephane….De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : lundi 17 juin 2013 23:50Good to see you onboard Stéphane! So what is your advice for the EagleRacing Episode 1?Best wishes,Shahid…and reminds the team of the deadline. He summarizes the positions and suggests to waitfor input from Stephane and Adriana before starting to debate and to reach consensus….De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : mardi 18 juin 2013 06:50Dear all,Time is running and we need to submit our consensus team decision by Friday 21 st June.To move on I just made a quick status on how I read the recommendations to Gianluca so far, set up inchronological order of the mails:Team member Goodbridge Bauer Remarks1. Shahid + Investigate Look for supplement Goodbridge2. Peter + Pro/Con + opportunity analysis3. Luc + Investigate Look for 2 potential sponsors4. Rich +5. Bernard + Investigate Look for supplement Goodbridge6. Stéphane7. AdrianaAAA/INSEAD/062013 - 56

From above I would conclude that the priority goes to Goodbridge, but before a final recommendation wewill need response from Stéphane and Adriana and before speculating too much and in order to moveahead I suggest that we have the input from the two missing by Tuesday 18 th June. Same deadline isproposed to rectify my understanding in the above table.This will leave us with a couple of days to debate and reach consensus and good arguments for ourdecision to be presented to Albert on the Friday 21 st at the latest.Please accept this humble input to our group exercise.Best regards from Salt Lake City, UTAH, USA.ShahidRich tries to convince the others that Bauer is the better choice. In his view the Goodbridgedeal will not secure the future of Eagle Racing…De : KELLEY Richard [mailto:Richard.KELLEY@sercel.com]Envoyé : mardi 18 juin 2013 17:06Shahid,Thank you for your consolidation of everyone’s initial inputs.I still think Bauer is the correct choice for the following reasons:Bauer has offered a 3-year deal valued at 22million euro/yr. This more than meets the needs of Eagle andaffords them the ability to grow and improve their team/business.Bauer needs a business partner to entertain their top clients, Eagle can provide this entertainment. Thisshows a commitment by Bauer to help Eagle be successful.Bauer stated in the article attached to the video that they divested all their military holdings more than ayear ago. There is very little risk of a publicity scandal regarding the arms sale.GoodBridge is not as good a fit. They have not offered to cover the 18MM euro needed for Eagle tocontinue to operate. With a 10million euro commitment Eagle will have to make tough decisions.There is not enough time left in the season to secure other sponsors, so Eagle will have to makeconcessions regarding budget for the following seasons.Even though Eagle has finished “in the money” consistently this season that has not translated intoincreased sponsorship, which makes it even more unlikely they will be able to close the gap.I know that most of the team supports the decision to select Goodbridge, but I wanted to make my caseone more time for Bauer.Regards,Rich…Shahid suggests to wait for the missing input and to appoint a Team Leader to drive thedecision process. He volunteers to continue leading the exchange…De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : mardi 18 juin 2013 18:21Thanks for further input Rich. I suggest that we get Stéphane and Adriana onboard before weproceed.By the way, all, I have just put the things together. We need to have a lead on this exercise. Is thereanybody else who would like to take that or would you like me to continue?Best regards,ShahidAAA/INSEAD/062013 - 57

Peter approves Shahid’s summary and would like Rich to further defend his point of view…De : Remory Peter [mailto:Peter.Remory@bekaert.com]Envoyé : mardi 18 juin 2013 09:21Shahid,Thanks for the summaryFrom my side – after reading all below feedback – I agree that Goodbridge carries most support and+ arguments from the group.Let’s wait for input from Adriana/Stephane indeed and perhaps also allow Rich (pro Bauer) to give hisfeedback.Peter…Rich asks if I have any information on Adriana…De : KELLEY Richard [mailto:Richard.KELLEY@sercel.com]Envoyé : mardi 18 juin 2013 19:52Albert,Have you heard from Adriana yet? She has not responded to this email chain so I was wondering ifwe had the correct contact. We would certainly appreciate her input to the discussion.Rich…and Stephane confirms his choice for Goodbridge…De : DEBLAISE STEPHANE [mailto:stephane.deblaise@renault.com]Envoyé : mercredi 19 juin 2013 07:54Hello everybodyI sent my answer last week regarding my choice between Goodbrigde and Bauer (see e-mail below)My choice is Goodbridge because of my confidence in the interest of Goodbridge in cars and races.Stéphane…Peter agrees that Shahid should take the lead of the team and contributes with anotherargument in favor of Goodbridge…De : Remory Peter [mailto:Peter.Remory@bekaert.com]Envoyé : mercredi 19 juin 2013 09:09Shahid,I think it makes sense for you now to continue to take the lead.Perhaps one extra argument pro Goodbridge: if I remember well, sir Ralph is ready to come to the race onSunday to sign the deal, whereas Bauer did not yet commit to that: they are ready to come to the raceand ‘if the Saudi’s have a great day (?) they can sign the deal’ … in other words there is still an importantcondition to be fulfilled in Bauer case. How to ensure that the Saudi’s have a great day (different culture,do not like bar treatment, etc) ?regardsPeterAAA/INSEAD/062013 - 58

Bernard too agrees to the Team Leader role of Shahid…De : bernard.haine@ores.net [mailto:bernard.haine@ores.net]Envoyé : mercredi 19 juin 2013 09:32Shahid,Thank you for having taken the lead.Best regards,Bernard…and Rich announces that he is willing to support the decision for Goodbridge, suggesting tonegotiate for more funds. He invites Shahid to send the Team’s decision…De : KELLEY Richard [mailto:Richard.KELLEY@sercel.com]Envoyé : mercredi 19 juin 2013 14:41Team,I can support the decision to go with Goodbridge. It will just come with huge challenges about how weclose the gap on budget. There are no clear sponsorship opportunities. Maybe it will be possible tonegotiate more money with Goodbridge. Maybe with Goodbridge signed on other sponsors might join aswell. If not, we will be making very difficult decisions regarding budget.Shahid, unless anyone objects I recommend you submit our team’s decision to invite Goodbridge to thenext race. Maybe then we can get access to Episode 2 before we travel.I look forward to meeting everyone next week in France.Regards,Rich…Shahid thanks Stephane for his input…De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : mercredi 19 juin 2013 22:24Hi Stéphane,Thanks. I will include your response in the overview.Best regards,Shahid AbdullahGlobal Director O&M MP…and I inform the team that until now I have received no information concerning Adriana…De : ANGEHRN AlbertEnvoyé : mercredi 19 juin 2013 22:40Hi Richard and Team 4In fact I also never received an answer from Adriana. I will ask the Program Coordinator if they haveother ways of contacting her and will let you know if I get more info.See you soon=albertAAA/INSEAD/062013 - 59

…allowing Shahid to send the final email of Team 4: they will continue with Sir RalphDe : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : mercredi 19 juin 2013 22:40Dear Albert,Unfortunately we couldn’t get hold on Adriana, but after having input from all the remaining and revisedrecommendation from Rich, please note that the team has a consensus on moving forward withGoodbridge, hence please communicate with Gianluca and ask him to start negotiating with Sir Ralph.Several of the team members have however recommended not to close the doors to Bauer but toinvestigate their history and reputation further.I assume that this will permit the team to move forward to Episode 2.Let me know if you need a consolidated table with pro’s and con’s received from the team and I will mailit tomorrow as I am catching the flight to Europe in a couple of hours.A bientot!Best regards,Shahid…Adriana finally joins the discussion, shares her 2 Truth and 1 Lie and is aligned to theGoodbridge choice…From: CARNEIRO Adriana Date: June 21, 2013, 10:48:18 AM GMT+02:00Hello everyone,Sorry for joining the discussion at the last day.I work at Renault as VP LCV Quality.Here is my “2 Truths and 1 Lie”:I am Brazilian and as Shahid I love meeting different cultures, I was in holidays in Maldivas the lasttwo weeks that’s why I come back to you only today.Regarding the Episode 1: As most of group members, I support the choice of Goodbridge for thesame reasons already discussed.Looking forward to meet you soonAdriana…and Shahid concludes …From: Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Sent: samedi 22 juin 2013 17:26Adrianal,Boas-vindas, finally!You are excused if only your last statement of 2T1L is a T;-)AAA/INSEAD/062013 - 60

We are all in same boat reg Episode 1, and we are now only waiting anxiously for the releaseof Episode 2 from Albert.See you all tomorrow or Monday.iBr ShahidAAA/INSEAD/062013 - 61

TEAM 5Jacques takes the lead in Team 5 by mentioning the possibility to collect pros and cons forboth options or to simply vote: he prefers the latter and his vote goes to Goodbridge…De : Jacques.Veerman@mail.ing.nl [mailto:Jacques.Veerman@mail.ing.nl]Envoyé : mercredi 12 juin 2013 08:02À : ANGEHRN Albert; laurence.excoffon@renault.com; thomas.henn@gdfsuez-energie.de;jerome.gendre@federalmogul.com; pel@flsmidth.com; benedicte.lefevre@electrabel.com;gregory.mourat@valeo.com; hvp@flsmidth.comObjet : RE: [GMP15] TEAM 5: Towards Episode2 of EagleRacingDear Team,Our next challenge is to decide, via consensus, with which partner we prefer to do sponsorbusiness.We could start to make an inventory with pros and cons for each partner and then try to get to adecision, but I propose to start to make an easy round of voting. Then we can see if there is already amajority (or not) within the team for one of the partners.Do you like this approach? Please let us know then your preference.My vote is on Goodbridge.Kind regards,Met vriendelijke groet,Jacques Veerman… Peter agrees with the Goodbridge choice and proposes a couple of actions to bridge thebudget gap…De : Peter Larsen [mailto:pel@flsmidth.com]Envoyé : mercredi 12 juin 2013 09:28Hi Jacques and Team,Thanks for teeing this up – I rush with my viewpoints and vote as well.I support your choice of GoodBridge as the common main sponsor for Eagle Racing.My reasoning for this choice is:It is tempting to strike a three year exclusive contract with Bauer, securing the economyof the team. However, I do not see that a real partnership can be established with Baueras their objectives to enter into this agreement seem rather blurred. And this mayultimately take away focus from the sport and the results we have achieved and want tocontinue achieving.Even though the collaboration with GoodBridge will only cover approx. 60% of ourfinancial needs, we are free to include other sponsors to supplement. And we will get apartner with passion for the sport, who may get excited by our results and increase thescope (and he will most certainly appreciate our VIP packages more than Bauer!).Alternatively, we have to look at taking in a young (talented) driver that can bringadditional sponsorships. A closer look at the support organization could also be ofinterest to identify possible cost reduction potentials.AAA/INSEAD/062013 - 62

No matter what, we should probably consider offering our Sponsorship Manager a CrossCultural Communication course as he seem evenly uncomfortable with Englishmen andGermans!Best regards,Peter LarsenDirector Human ResourcesCustomer Services and O&M… followed by Jerome, who lists a couple of pros and cons before disclosing his personalview: he advises to further negotiate with Sir Ralph and to keep the Bauer option open…De : GENDRE, Jerome [mailto:Jerome.GENDRE@federalmogul.com]Envoyé : mercredi 12 juin 2013 15:38Hello everyone,Please find hereunder some inputs that may help us to take our common decision by Friday 21 st thelatest and also my recommendation.Bauer:Pro: financial need 100% coveredCons: no clear link between the weapon industry and racing (far from the automotive).Goodbridge: Pro: coherent positioning between tyres and racing (automotive) + Goodbridge ownerautomotive passionate. Cons: half of financial needs covered.However, my recommendation is Goodbridge (see below my proposal to convince them):Negotiate with Bauer to postpone their decision and put them in competition with a peercompany.Call back Goodbridge in order they can review their position vs. other sponsors who may bechosen by the team in order they can invest more (100% required). Play on the ownerpassion and check what can be provided additional to their customers as the possiblesponsor of the team.Check parallel if cost savings could be made internally in order to reduce the team budgetand dependence (i.e. in case of Goodbridge could only do half of the required effort).Let Goodbrige little time to react.Nevertheless if finally Goodbridge don’t move and if it is a question of surviving for the team:BauerKind regards.Jérôme GENDREAAA/INSEAD/062013 - 63

Benedicte too prefers the Goodbridge option and shares her arguments and action plan…De : Benedicte.Lefevre@electrabel.com [mailto:Benedicte.Lefevre@electrabel.com]Envoyé : mercredi 12 juin 2013 20:49Hello Team,Up to now I follow your choice and argumentation.My recommendation is indeed Goodbridge.From a financial point of view Bauer is certainly the easier choice covering 100% of our budgetrequirement. Nevertheless, with Bauer as sponsor we take a reputation risk, that can really have adamaging effect on our image and moreover in the future we could difficult find other sponsor.The passion of GoodBridge for the sport can provide opportunities for a sustaining relationship.I suggest to negotiate with them by introducing competition and to discuss what can be developed totheir customers (VIP packages+) if they invest more.In parallel we have to try to include other (smaller) sponsor to make the bridge with the requiredbudget.(no exclusivity)We can invite potential new sponsor(s) to the next race and provide them a very positive “sponsorexperience” in order to incentive them.Finally, whatever the result of the taken actions before, considering the current financial situationwe have to look at cost savings to consolidate our position and to avoid an excessive dependence onsponsor.Kind regards,Bénédicte LefèvreSales Manager Retail & SME… in line with Henrik, who perceives Sir Ralph as the better partner to deal with…De : Henrik Vittrup Pedersen [mailto:HVP@FLSMIDTH.COM]Envoyé : mercredi 12 juin 2013 21:43Hello Team this is a voice from Copenhagen,I also support the choice of Goodbridge.My reasoning is based on: I believe it is simpler choice that is easier to explain, there seem some complex things goingon with Bauer, a more risky choice I like the passion part demonstrated by Goodbridge Goodbridge is more aligned with Eagle Racing, whereas Bauer seems a demanding fellow,with his own set of agendas Goodbridge is not demanding exclusivity, so Eagle should immediately seek more sponsoropportunities, in the end a better set of sponsor may be chosen I recommend that Eagle stick to sound principles for selection of sponsors, so they canconcentrate on creating results in what they are good at.Best regardsLooking forward to see u all.Henrik Vittrup PedersenAAA/INSEAD/062013 - 64

…Thomas also joins the Goodbridge camp but is puzzled by the quick consensus reached inthe team. He asks if anybody would like to send the final decision…De : Thomas.Henn@gdfsuez-energie.de [mailto:Thomas.Henn@gdfsuez-energie.de]Envoyé : jeudi 13 juin 2013 07:44Hello to everybody,No need to repeat all your good arguments. I also favor Goodbridge.Maybe one further option: Goodbridge may allocate their 10 mio / year budget differentlyand may sponsor in the first year 18 mio (and in the second 6 mio and again 6 in the thirdyear) to give Eagle Racing more time to look for another sponsor in the second yearThe only thing me partly concerns: is it really that straight forward for Goodbridge? Do wemiss something?Practical question: Is there any volunteer to submit our common decision (in time) on Friday to Albert (I am notin the office on Friday…)? Thanks in advance.Looking forward to see you guys in some days,Thomas…but here comes Gregory and he has a different opinion: in his view Bauer is the betterchoice as the deal is based on facts and data instead of emotions and passion….De : Gregory MOURAT [mailto:gregory.mourat@valeo.com]Envoyé : lundi 17 juin 2013 16:17Hello Team,I clearly understand arguments from everybody and to be honnest, GoodBridge was as wellmy election after seeing the video, it was like "emotional" decision driver.I did review a second time the video, and now I think Bauer is the best option.The main doubt that I have with Goodbridge , in addition to the fact that they are bringingonly 60% of the budget, is that we don't know the motivation of GoodBridge boss to go forsponsoring EagleRacing. He just said that he loves racing, after 3 hours of meeting, discussingabout all except racing... Potentially, this guy could switch of passion without evident reason,like the former main sponsor did, even if Eagle racing sport results were good.With Bauer, the situation looks clear. It is only for business, no passion. We know what theywant, they want to use this sponsoring to develop their business with their VP customers. It isa 3 years contract and Eagle has just to manage his part of the deal, by making VP Bauercustomers happy.My opinion is that for this kind of contract, we should see fact and data with a bit lessemotion.Let's discussGregoryAAA/INSEAD/062013 - 65

…Jacques now summarizes the opinions and arguments. His concern about Bauer are stillthe alleged weapon deals….De : Jacques.Veerman@mail.ing.nl [mailto:Jacques.Veerman@mail.ing.nl]Envoyé : lundi 17 juin 2013 21:41Hi Team,Looking at our responses so far we have the following preferences:Looking at the Pro’s and Con’s for Goodbridge and Bauer we see the following:To my opinion and with second thoughts Gregory had some good arguments in favor of Bauer.The only thing that worries me is Bauer’s possible connection with the weapon industry. This is for me a“No Go” towards Bauer.Otherwise I would change my preference to Bauer. But then we should have 100% certainty about this.Kind regards,…Peter is not willing to change his position but would like to further share arguments forboth options….De : Peter Larsen [mailto:pel@flsmidth.com]Envoyé : mardi 18 juin 2013 16:29Hi team,Jacques, thanks for the summary, gives a nice overview.I have tried watching the video, reading the presentation and gone through the below summaryonce again. But I still don’t find anything that changes my position and the preference forGoodBridge.AAA/INSEAD/062013 - 66

With the limited knowledge that we have at hand, this is a true dilemma where neither of theoptions is perfect and a choice have to be made. But we are not yet at a consensus, and findingadditional arguments in favor of either of the options seems a challenge.So, anyone who can see new/additional arguments that could eliminate our doubts in Bauer, orarguments that could make you, Gregory, willing to go for GoodBridge?Best regards,Peter Larsen… now Jacques asks if they should apply the democratic principle to reach a decision as thedeadline is reached…From: Date: June 21, 2013, 9:24:14 AM GMT+02:00Hi team,Today is de deadline for submitting our choice for sponsoring EagleRacing.We don’t have full consensus yet: 7 for Goodbridge, 1 for Bauer.Are we going to apply a democratic principle or can we convince Gregory that Goodbridge is the rightchoice?Please share your thoughts.Kind regards,Met vriendelijke groet,Jacques Veerman… Gregory agrees to the democratic vote…From: Gregory MOURAT Date: June 21, 2013, 5:38:54 PM GMT+02:00Hello teamDemocratic principle is ok for me.See you next weekG. Mourat… and so does Henrik…From: Henrik Vittrup Pedersen Date: June 21, 2013, 6:01:46 PM GMT+02:00Democracy is good, but sometimes difficult to control ;)See you soon.HenrikAAA/INSEAD/062013 - 67