| ANNUAL REPORT 2015
194
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
38. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (cont’d)
(c) Trademark dispute (cont’d)
No damages will have to be paid by either party to the other regardless of the outcome of the re-trial at the PRC Supreme
Court. To date, Jeco has expended SGD321,000 in legal costs in relation to the litigation, and has further budgeted another
SGD575,000 for the financial year as legal costs to be incurred for the re-trial.
(d) Potential dispute
Active World Pte. Ltd. (“Active World”), a wholly owned subsidiary of the Company, received a letter dated 14 April 2014
from lawyers acting for Orchard Central Pte. Ltd. (“Orchard Central”), alleging that Active World had breached the terms
and conditions of lease agreements dated 3March 2008 and 9 April 2009 entered into betweenOrchard Central and Active
World in respect of 2 shop units located at Orchard Central, 181 Orchard Road, Singapore 238896 (collectively “Lease
Agreements”). Orchard Central had in the same letter, claimed for Active World a sum of SGD964,700 (approximately
RM2,490,000), together with accrued late payment interest, arising from Active World’s failure/refusal to take possession
of the premises at the commencement date of the Lease Agreements and make payment of the rentals and other charges
due and owing under Lease Agreements.
In September 2014, the claim by Orchard Central has been settled for the total sum of SGD165,659 (approximately
RM427,500). No other claims in connection with litigation have been or are expected to be received.
39. SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD
(a) On 16 July 2015, BB Global Holdings Pte. Ltd. (“BBGH”, a company incorporated in Singapore) became an indirect
subsidiary of the Company via Jeco’s subscription of 51% equity interest in BBGH for SGD51.
(b) On 31 August 2015, Jeco, BBKG, BBGH and Christiane Brunk (“Christiane”, a director cum major shareholder of BBKG and
BBGH respectively) executed a Memorandum of Understanding for putting BBGH in funds to acquire certain intellectual
property rights relating to Braun Buffel brand (“IPRs”), from BBKG (collectively, “Acquisition of IPRs”).
On 21 September 2015, BBGH and BBKG executed the Intellectual Property Rights Sale & Purchase Agreement together
with the Novation Agreement made between BBGH, BBKG and Jeco appended therewith to confirm BBGH’s Acquisition
of IPRs at a purchase consideration of EUR1,877,000 by way of an assignment of the IPRs from BBKG to BBGH.
On the even date:
(i) BBGH and BBKG also entered into the Intellectual Property Rights License Agreement to grant BBKG with licenses to
use certain IPRs in all countries of Europe, Turkey and countries of the former Soviet Union at a predetermined license
fees;
(ii) BBGH, BBKG and Jeco signed the Cooperation Agreement for the parties to work in cooperation in relation to product
development, production facilities and development of new markets of the Braun Buffel brand in the divided
geographic markets across the world;
(iii) Jeco and Christiane entered into the Loan Agreements with BBGH that involved: (1) Jeco and BBGH, and (2) Christiane
and BBGH (collectively, “LOA1”) for the purpose of providing interest-bearing shareholders’ loans to BBGH in
proportion to their capital contribution of 51:49 [i.e. Jeco, SGD1,604,256: Christiane, SGD1,541,344] (Jeco’s portion of
loan, “Jeco Loan to BBGH”) in BBGH to finance BBGH’s Acquisition of IPRs;
