Simplify the following text for a Grade 7 native English-speaking person.
Original: On 19 January , Ferrari announced that it had signed an extension to the 1997 Agreement to expire on 31 December 2012 .
Simplified: On 19 January 2005 , Ferrari announced that it had signed an extension to the 1997 Concorde Agreement . The extension would expire on 31 December , 2012 .