Fairmount Marine Rejects Termination of Management Agreement

Fairmount Marine, under a management agreement, rejected the termination notice for this agreement issued by FHT. FHT wishes to set up their own organization, which, under the complexity of business circumstances and the special challenges for this line of business, is a controversial decision. On 12 January 2007 Fairmount Marine was dismissed by FHT from the conversion works in Malta because, in FHT´s opinion, Fairmount Marine´s involvement was causing delays and cost overruns. FHT´s management board claimed that they would succeeded in completing the vessel by April, 2007. In the opinion of Fairmount Marine, the Fairmount FJORD could physically not be converted for a readiness in 3rd Quarter 2007, an opinion, which was rejected by the FHT management board. FHT, having dismissed Fairmount Marine from the job, since January 2007 execute the conversion management themselves and announced regularly new delivery dates, always slipping. Regretfully, but not unexpected by Fairmount Marine, the FHT management board was now forced to announce that Fairmount FJORD will be delivered in October. This time the sub-contractors to FHT are blamed for the delay. In respect of the management agreement, Fairmount Marine continues to exercise its duties under this agreement with great care and diligence, representing the interests of Fairmount Heavy Transport to the best of its ability.