Straight away what stands out to me is the "367ps", that could be a clause which they could pull out with straight away if the 395hp engine reaches the RS3 down the line...
I agree with @AudiNutta. It's an odd label to use. In reality I don't think you have a deal that will stick with all the current unknowns until you can get "or equivalent MY2017 product improvement" in writing as per verbal. Good luck! Watching with interest.