Blue strikes deal with Fior Drissage; secrecy pact between 4 directors

Friday, 1 July 2011 02:50 - - {{hitsCtrl.values.hits}}

The Directors of Blue Diamond Jewellery Worldwide (BLUE) announced that the proceeds of its Rights Issue announced on 15 October 2010 would be used to make an investment with Fior Drissage Jewellery Ltd (FDJL), the Associate Company of BLUE.

BLUE has executed an agreement with FDJL for a period of 15 years authorising it to manufacture jewellery using the Carbonlokd (Floating Diamond) setting concept, to cater to the local market exclusively.

This would facilitate BLUE to earn a minimum of a 5% of the labour value earned on the jewellery manufactured and sold in Sri Lanka by FDJL. In addition, BLUE would be entitled to any divided declared on its equity stake (16.7%). Further to safeguard and to protect interest of BLUE, four separate agreements were also executed with executive directors Bandula Ranaweera, Godfrey de Kretser, K.V.D.D.A. Dias and M.M.N. Priyantha who are privy to the technical knowhow of the concept.

As per the conditions neither any one of the four directors could leave the company for a minimum period of three years from the date of signing nor can the company remove them for a period of three years except for the reasons set out in the agreement.

Failure to comply by either party will result in having to settle the other party the applicable remuneration at the time of leaving the company for the remaining period as compensation.

The four directors are precluded from divulging the secret process for a period of three years after leaving the services of the Company.

“This would no doubt not only strengthen the Company but would enable the Company to maintain and safeguard its secret process,” Blue Diamonds Jewellery Executive Director De Kretser said in a statement.