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                                                                   Exhibit 10.20

                           CONDITIONAL SALE AGREEMENT

MEMORANDUM OF AGREEMENT made as of the 15th day of August 2002.


BY AND BETWEEN:                    ROSY BLUE N.V., a corporation
                                   having an office in Antwerp, Belgium
                                   (hereinafter the "Seller")


AND:                               HENRY BIRKS & SONS INC., a corporation
                                   governed under the laws of Canada, having
                                   its Head Office at 1240 Phillips Square,
                                   Montreal, Quebec, H3B 3H4 (hereinafter the
                                   "Buyer" or "Birks")


        WHEREAS the Seller has agreed to sell from time to time the goods
described in Appendix A attached hereto (the "Goods"), to the Buyer, the whole
upon the terms and conditions hereinafter set forth in this Agreement;

        NOW, THEREFORE, THIS AGREEMENT WITNESSES THAT IN CONSIDERATION of the
mutual covenants hereinafter set forth and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

         1.  The Buyer agrees to buy the Goods selected by the Buyer shipped
from time to time by the Seller.

         2.  The title to, property and ownership in any Goods now or hereafter
in the possession of the Buyer are and shall remain with the Seller and subject
at all times to the direction and control of the Seller and free from any and
all claims, demands, charges and liens whatsoever, until the entire purchase
price thereof, or any outstanding balance thereon, have been fully paid to the
Seller in accordance with the provisions of this Agreement. To secure the full
payment of the entire purchase price of the Goods, or of any outstanding balance
thereon, the Buyer hereby grants and conveys, to the Seller, a security interest
in all the Goods purchased hereunder as well as a security interest in the
proceeds of sale of the Goods. Notwithstanding the foregoing, for the purposes
of the laws of the province of Quebec, this agreement constitutes an instalment
sale agreement pursuant to articles 1745 to 1749 of the Civil Code of Quebec and
until full payment of the entire purchase price or of any outstanding balance
thereof or of any other sums payable under this agreement, the title to and
ownership of the Goods, replacement and proceeds of sale thereof, shall remain
in the Seller, but at Buyer's risk. Furthermore, for the purposes of the laws of
the province of Quebec, in order to secure all its obligations under this
Agreement, the Buyer hereby hypothecates to and in favor of the Seller, the
proceeds of any sale or other disposition of the Goods and any debts resulting
from such sale or other disposition as well as any insurance or expropriation
indemnity payable in respect of the foregoing, to the extent of the sum of CDN$
1,600,000 with interest thereon at the rate of twenty-five percent (25%) per
annum.

         3.  The Goods and any proceeds of sale thereof, from the date of
shipment of the Goods to the Buyer until such time as the unsold Goods are
returned by the Buyer to the Seller or

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until  the  Seller  has been paid in full the  price of all such  Goods  sold in
accordance with this Agreement, shall be at the absolute risk of the Buyer.

         4.  The Buyer acknowledges that the Goods are personal property and
shall be collateral for all purposes under applicable conditional sale and
personal property legislation. The Seller shall be entitled to file this
agreement as a security agreement, conditional sales contract, instalment sale
agreement, or otherwise and/or to file a financing statement, RD Form, or other
document to evidence the security interest granted to the Seller hereunder and
the reservation of title with the Seller. The Buyer hereby appoints the Seller
as its agent and attorney-in-fact to execute any financing statement, RD Form,
or other document which may be required to perfect Seller's security interest
hereunder. The Buyer hereby waives the right to receive a copy of any fixtures
notice and any financing statement filed by the Seller relating to this
agreement, or any verification statement issued by any personal property
registry (including the Saskatchewan Personal Property Registry) that relates to
any such financing statement. The parties hereto agree that The Land Contracts
(Actions) Act (Saskatchewan) shall have no application to any action as defined
in such Act with respect to this Agreement and that The Limitation of Civil
Rights Act (Saskatchewan) shall have no application to this Agreement.

         5.  The Buyer hereby agrees:

             5.1    to maintain the Goods in its premises set out in Appendix A
                    attached hereto (the "Stores");

             5.1    to identify and hold the Goods separately, and to hold
                    separately in a segregated account the proceeds arising from
                    the sale of the Goods, in both cases as a gratuitous deposit
                    for and on behalf of the Seller, until the purchase price
                    for the Goods has been paid in full;

             5.2    to indemnify, defend and hold the Seller harmless from and
                    against all damage, depreciation or loss (hereinafter
                    referred to as a "Loss") of or to the Goods, including,
                    without limiting the generality of the foregoing, Loss due
                    to pilferage, fire, theft, disappearance, destruction,
                    flooding, deterioration or otherwise, and to maintain in
                    force, an insurance policy or policies, at its own expense,
                    for the duration of this Agreement, providing coverage
                    against such Loss with reputable insurers for the full
                    replacement value thereof. The Seller shall be added as loss
                    payee with regard to the Goods in said insurance policy or
                    policies and evidence thereof shall be provided to the
                    Seller upon request;

             5.3    to keep the Goods and the proceeds therefrom free and clear
                    from any lien, charge, hypothec, security interest or
                    encumbrance whatsoever;

             5.4    to pay all business and other taxes imposed on the Goods or
                    the location thereof, by reason of this Agreement;

             5.5    to collect and remit to the appropriate authorities all
                    taxes, rates, fees, levies or other amounts due by virtue of
                    its sale of the Goods to any third party and to indemnify,
                    defend and save the Seller harmless from and against any
                    liability which may be incurred by the Seller in respect of
                    such taxes, rates, fees, levies or other amounts;


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             5.6    to maintain a separate set of books and records showing the
                    separate transactions made by the Buyer in respect of the
                    Goods, which shall be up-to-date and accurate, and to make
                    available on the Buyer's premises such books and records for
                    inspection by the Seller from time to time during business
                    hours, which inspection shall be made by the Seller without
                    unduly disturbing the Buyer's business;

             5.7    to use its best efforts to sell the Goods to its customers
                    in the ordinary course of business.

         6.  Upon sale by the Buyer of any of the Goods, the Buyer shall
forthwith, and in any event within thirty (30) days from the date on which the
sales report (reporting the sale of such Goods) would be due, remit complete and
full payment to the Seller of the agreed upon purchase price for the Goods, the
Buyer hereby expressly acknowledging the Seller's rights of ownership to said
proceeds arising from the sale thereof until full payment of the purchase price
for the Goods to the Seller. Any item from among the Goods which is returned to
the Buyer for credit within such thirty (30) day period will be treated as if
the sale had not occurred. The purchase price for the Goods are as stated in
Appendix A.

         7.  The Buyer agrees to furnish to the Seller on a monthly basis (on or
before the 15th day of each month) a separate sales report indicating all sales
of the Goods in its possession for the prior month.

         8.  During the annual physical inventory conducted by Buyer, Buyer
shall prepare and submit to Seller, within sixty (60) days after the completion
of such inventory, a report reconciling Seller's outstanding Goods to physical
inventory on hand (the "Reconciliation Report"). The shrinkage evidenced by the
Reconciliation Report shall be deemed to reflect sales of Goods to be paid for
in accordance with the payment terms of this Agreement. The Reconciliation
Report shall be signed by the Seller and Buyer to certify their agreement to the
contents thereof.

         9.  The Seller shall have the right for the duration of this Agreement,
to send an employee or representative to any of the Stores at any time during
normal business hours, to examine and count the Goods, and the Buyer will extend
all reasonable assistance in connection therewith. The Seller undertakes to
exercise such right in a reasonable way.

         10. In the event of a discrepancy in inventories between the inventory
provided by the Buyer and a physical count of the Goods, the latter shall
prevail, and the Seller shall immediately issue an invoice or a credit note to
the Buyer, as the case may be, to make the necessary adjustments. All invoices
and credit notes issued pursuant to this clause shall be payable upon receipt
thereof by the Buyer, and the Goods referred to therein shall be invoiced or
credited, as the case may be, at the stipulated price.

         11. The Buyer represents to and warrants and covenants and agrees
with the Seller as follows:

             11.1   it is a corporation legally incorporated and validly
                    existing, in good standing, under the laws of the Canada,
                    with full corporate power to enter into this Agreement;

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              11.2   the entering into of this Agreement and the performance of
                     the Buyer's obligations hereunder have been duly authorized
                     by all necessary corporate action on its part;

              11.3   the making and performance of this Agreement will not
                     result in the breach of, constitute a default under,
                     contravene any provision of, or result in the creation of
                     any lien, charge, encumbrance or security interest upon any
                     of its property or assets pursuant to any of its stocks,
                     bonds, notes or debentures outstanding, or any agreement,
                     indenture or other instrument to which it is a party or by
                     which it or its property may be bound or affected;

              11.4   on the date hereof, the Buyer's only right, title and
                     interest in and to the Goods is hereunder and the Buyer
                     owns no Goods or other products of the Seller;

              11.5   except in the case of the Stores located at 87 King Street,
                     Saint John, New-Brunswick, Canada, in respect of which it
                     is the owner of such premises, it is the tenant under each
                     of the leases for the premises where the Stores are
                     located, that all rent due by it under such leases is
                     current and not in arrears and that it is not in default of
                     any terms of any leases as of the date of execution hereof.

         12.  The term of this Agreement shall commence on the date hereof and
shall continue for an indefinite term, provided that (i) the Seller shall be
entitled to terminate this Agreement immediately upon ten (10) days notice to
the Buyer for any reason determined to be appropriate by the Seller; and (ii)
the Buyer shall be entitled to terminate this Agreement upon ten (10) days
notice to the Seller for any reason determined to be appropriate by the Buyer.

         13.  Upon termination of this Agreement:

              13.1   the Buyer agrees, at its sole expense, to return to the
                     Seller or to deliver forthwith to the address and in a
                     manner designated by the Seller, all unsold Goods;

              13.2   the Seller shall have, in addition to any other rights and
                     remedies provided by law, the absolute right to take
                     possession of and remove its Goods without process of law
                     and for that purpose may enter at any time any premises
                     where the Goods are situated.

         14.  No waiver by the Seller of any default shall operate as a waiver
of any other default and the terms of this Agreement shall be binding upon the
successors and assigns of the parties hereto. In particular, but without
restriction, the acceptance by the Seller of payments on dates other than those
when such payments are required to be made pursuant to this Agreement shall not
constitute a waiver of any rights of the Seller pursuant to this Agreement nor
any implicit or explicit amendment to the terms of this Agreement.

         15.  The Seller may, at any time, irrespective of default or
termination of this Agreement, remove or cause to be removed any or all of its
Goods from the possession of the Buyer. The Buyer agrees not to remove the
Seller's unsold Goods from the Stores, other than by sale in the ordinary course
of the Buyer's business, without the prior written consent of the Seller.

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         16.  Notwithstanding any termination of this Agreement, each party
shall continue to be liable for all of its unfulfilled obligations to the other
incurred prior to or upon such termination.

         17.  The Buyer agrees to immediately advise and inform the Seller, in
writing, in the event of seizure before or after judgment of the Goods in any of
the Stores, or in the event Buyer becomes insolvent or bankrupt or goes into
liquidation or receivership, either voluntarily or under an order of a court of
competent jurisdiction, or makes a general assignment for the benefit of its
creditors or otherwise acknowledges itself insolvent. The Buyer agrees to assist
the Seller in retaking immediate possession of its unsold Goods not yet returned
to the Seller and any and all proceeds of sale.

         18.  The Parties agree that all values and amounts contemplated in this
Agreement and related documents are in United States currency unless indicated
otherwise.

         19.  This Agreement is personal in character and shall not be assigned
by the Buyer. This Agreement does not constitute the Buyer an agent of the
Seller. Nothing in this Agreement shall be deemed to constitute either of the
Parties the partner of the other and it is understood and agreed that the
relationship between the Parties is that of independent contractor. The terms
and conditions of this Agreement are set out in full herein and there is no
agreement, warranty or condition whereby the terms and conditions hereof can be
modified in any manner whatsoever otherwise than by a written amendment executed
by the authorized representatives of the Parties.

         20.  Any notice or other written communication permitted or required to
be given hereunder shall be in writing and shall be given by delivery or sent by
telecopier or similar telecommunications device and addressed:

              20.1  to the Seller at:

                           ROSY BLUE N.V.
                           Hoveniersstraat 53, Box 127
                           2018 Antwerp
                           Belgium

              20.2  to the Buyer at:

                           HENRY BIRKS & SONS INC.
                           Attn:  Vice President Merchandising
                           Copy to Vice president General Counsel
                           1240, Phillips Square
                           Montreal, Quebec
                           H3B 3H4

or such other address as may be designated from time to time in accordance with
this section, and shall be deemed to have been received if sent by telecopier or
similar telecommunications device on the next business day following such
transmission or, if delivered, to have been given and received on the date of
such delivery.

         21.  The remedies of the Seller hereunder, at law and in equity, are
cumulative and are not exclusive of one another. The exercise of one or more
remedies shall not prevent the Seller


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from exercising any or all other rights it may have. The acceptance by the
Seller of any payment after default by the Buyer hereunder shall not operate to
extend the time of payment of any amount then remaining unpaid hereunder or
constitute a waiver of any of the other rights of the Seller and any extension,
latitude, benefit or indulgence granted by the Seller shall not in any way
prevent the Seller from requiring the Buyer, thereafter, to make strict and
punctual payments and performance of the terms and conditions of this Agreement.

         22.  This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and may be modified only by an
instrument in writing signed by both parties.

         23.  The introductory paragraph hereto and Appendix A annexed to this
Agreement are an integral part of this Agreement.

         24.  Words importing the singular number only shall include the plural,
and vice versa, and words importing the masculine shall include the feminine
gender, and words importing general persons shall include entities and
corporations and vice versa.

         25.  The Buyer agrees to sign any document that may be necessary in the
opinion of the Seller in order to give effect to and implement the foregoing.

         26.  This Agreement shall be governed by the applicable conditional
sale and personal property legislation in the Province or Territory where the
Goods are located as such place of location is indicated on Appendix A. The
parties agree that all claims and disputes arising out of or in connection with
this Agreement shall be adjudicated exclusively in the Courts of the Province or
Territory where the Goods are located as such place of Goods is indicated on
Appendix A. Buyer consents to the jurisdiction of the Courts of the Province or
Territory where the Goods are located as such place of Goods is indicated on
Appendix A.

         27.  This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

         28.  The parties have requested that this Agreement and its related
documents be drawn up in English. Les parties ont exige que la present
convention et les document s`y rattachant soient rediges en anglais.

        IN WITNESS WHEREOF the parties have executed this Agreement as of the
date first written above.



SELLER                                         BUYER

ROSY BLUE N.V.                                 HENRY BIRKS & SONS INC.


Per: /s/ Amit B. Bhansali                      Per: /s/ Thomas A. Andruskevich
     --------------------------                     ----------------------------
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                                   APPENDIX A
           TO THE CONDITIONAL SALE AGREEMENT DATED AUGUST 15TH, 2002,
               BETWEEN ROSY BLUE N.V. AND HENRY BIRKS & SONS INC.




--------------------------|-----------------------------|-----------------------
   DESCRIPTION OF GOODS   |       PRICE PER ITEMS       |   LOCATION OF GOODS
--------------------------|-----------------------------|-----------------------
                          |                             |
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                          |                             |
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                          |                             |
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                          |                             |
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                          |                             |
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                          |                             |
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                          |                             |
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                          |                             |
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                          |                             |
--------------------------|-----------------------------|-----------------------



ROSY BLUE, INC.                              HENRY BIRKS & SONS INC.


Per:                                         Per:
       -------------------------------              ----------------------------


Dated:                                       Dated:
       -------------------------------              ----------------------------