EXHIBIT 10.1
 
SETTLEMENT AGREEMENT
 
This SETTLEMENT AGREEMENT AND GENERAL RELEASE (the “Settlement Agreement”) is
being entered into this 26th day of October, 2010 (the “Effective Date”) by and
between ABN AMRO BANK N.V. (“ABN”), THE ROYAL BANK OF SCOTLAND PLC (“RBS”),
LAZARE KAPLAN INTERNATIONAL INC. (“LKI”), LAZARE KAPLAN JAPAN INC. (“LK Japan”),
LAZARE KAPLAN EUROPE INC. (“LK Europe”) and LAZARE KAPLAN AFRICA INC. (“LK
Africa,” together with LK Japan and LK Europe, the “Guarantors,” the Guarantors,
together with LKI, the “LKI Parties” or individually as an “LKI Party”).  ABN,
RBS, LKI, LK Japan, LK Europe and LK Africa are referred to individually herein
as the “Party” or collectively as the “Parties.”
 
RECITALS:
 
WHEREAS, LKI and ABN are parties to: (i) the Facility Letter dated as of
February 27, 2009 (the “Facility Letter”) and (ii) the Amended and Restated
Credit Agreement dated as of February 27, 2009 (the “Credit Agreement”);
 
WHEREAS, ABN asserts that LKI owes ABN principal plus unpaid interest and
out-of-pocket expenses under the Facility Letter and the Credit Agreement (the
“New York Obligations”);
 
WHEREAS, pursuant to two guaranties, each dated February 27, 2009 (the “Facility
Letter Guaranty” and the “Credit Agreement Guaranty”), the Guarantors guaranteed
the New York Obligations;

 

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WHEREAS, ABN extended credit to Gulfdiam DMCC (“Gulfdiam”);
 
WHEREAS, ABN asserts that Gulfdiam owes ABN principal, interest, fees and
expenses pursuant to the credit ABN extended to Gulfdiam (the “Gulfdiam
Obligations”);
 
WHEREAS, pursuant to the Guaranty dated September 1, 2007 (the “LKI-Gulfdiam
Guaranty”), LKI guaranteed up to fifty-percent of the Gulfdiam Obligations (the
“LKI-Gulfdiam Guaranty Obligations”);
 
WHEREAS, LK Japan and RBS are parties to the Amended and Restated Credit
Facility Agreement dated as of February 28, 2009 (the “Japan Credit Agreement”);
 
WHEREAS, RBS asserts that LK Japan owes RBS principal plus all unpaid interest
and out-of-pocket expenses under the Japan Credit Agreement (the “Japan
Obligations”);
 
WHEREAS, pursuant to the Guarantee dated April 16, 2009 (the “Japan Guarantee,”
together with the New York Obligations, the LKI-Gulfdiam Guaranty Obligations,
the Facility Letter Guaranty, the Credit Agreement Guaranty, and the Japan
Obligations, the “ABN/RBS Obligations”)), LKI guaranteed the Japan Obligations;
 
WHEREAS, LKI contends that it has claims against ABN and RBS arising from the
relationship and business dealings between LKI and ABN and LKI and RBS relating
to the ABN/RBS Obligations and Gulfdiam, and arising from other events,
circumstances and business dealings, that negate, excuse or give the LKI Parties
a right of set-off, from their payment obligations under the above described
ABN/RBS Obligations, credit facilities and guarantees and/or a claim for damages
against ABN and/or RBS (the “LKI Claims”);

 
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WHEREAS, ABN and RBS contend that the LKI Claims are baseless and without merit;
and
 
WHEREAS, the Parties desire to avoid litigation, further expense and to resolve
amicably all matters and disputes among them;
 
NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the Parties, intending to be legally bound, hereby agree as
follows:
 

 
1.
Consideration.

 
 
a.
Payment.  LKI shall make a single payment of $14,000,000 (the “Settlement
Amount”) by wire transfer of immediately available funds to the wire
instructions set forth on Annex A no later than 4:00 p.m. (New York time)
October 26, 2010, provided, that subject to Paragraph 3 below, ABN’s receipt of
the Settlement Amount (on behalf of ABN and RBS) shall be deemed by ABN and RBS
to constitute satisfaction in full by LKI of all of the ABN/RBS
Obligations.  ABN shall apply the Settlement Amount pro rata to the ABN/RBS
Obligations as follows: $7,488,387.16 to the New York Obligations, $5,073,402.01
to the LKI-Gulfdiam Guaranty Obligations and $1,438,210.83 to the Japan
Obligations.

 
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b.
Delivery of ABN’s Interest in LKI’s Shares to LKI.  ABN hereby conveys,
transfers, assigns and delivers to LKI, and LKI hereby accepts from ABN, ABN’s
respective legal and equitable right, title and interest in and to (i)
certificate LK2049, representing 1,180,000 shares of LKI stock (ii) certificate
LK2050, representing 125,000 shares of LKI stock, (iii) certificate LK2052,
representing 180,000 shares of LKI stock and (iv) all other shares of LKI stock
maintained by ABN in the Share Account (as defined below) representing 666,103
shares of LKI stock (collectively 2,151,103 shares of LKI stock the “LK
Shares”), which shares are held by CitiGroup Global Mkts. Inc. (the “Securities
Intermediary”) in account number 401-14839-16 (the “Share Account”).  Except as
a different time period is specified below, within ten (10) days of execution of
this Settlement Agreement, (1) ABN shall deliver a letter of instruction to the
Securities Intermediary, in form and substance reasonably satisfactory to the
Securities Intermediary and ABN, to effect the transfer of the LK Shares
(including, to the extent certificated, the actual certificates representing
such LK Shares or a lost certificate affidavit with respect to any lost
certificates), from the Share Account to LKI (subject to paragraph 3 of this
Settlement Agreement), (2) ABN shall deliver a letter of instruction to LKI’s
transfer agent, BNY Mellon Share Owners Services (“BNY Mellon”), 480 Washington
Blvd., Jersey City, New Jersey 07310-1990, in form and substance reasonably
satisfactory to BNY Mellon and ABN, to effect the transfer of the LK Shares to
LKI, subject to Paragraph 3 of this Settlement Agreement, and to take direction
from LKI with respect to the LK Shares, (3) on the Effective Date, ABN shall
deliver to BNY Mellon a copy of a corporate resolution of ABN authorizing the
transfer of the LK Shares free and clear of any lien or encumbrances imposed by
ABN, (4) ABN shall deliver to BNY Mellon an original stock power with Medallion
Signature Guarantee, if possible, or similar certification and (5) on the
Effective Date, LKI shall deliver to ABN evidence prior to the transfer of the
LK Shares that LKI has waived the poison pill.  For ten (10) days following the
Effective Date, ABN and LKI shall cooperate with any reasonable requests of BNY
Mellon or the Securities Intermediary that are actually necessary to transfer
the LK Shares to LKI.

 
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c.
Assignment of Insurance.  ABN hereby conveys, transfers, assigns and delivers to
LKI, and LKI hereby accepts from ABN, all of ABN’s right, title and interest:
(i) if any, under the certain insurance policies numbered  B0576GNYA96B,
B0576GMYA96B, B0576GLYA472 and B0576GLYB472 (the “Insurance Policies”), but only
to the extent of ABN’s interest in the Insurance Policies and subject to the
provisos of this clause (c); (ii) any payment made to any LKI Party under the
Agreement for Interim Payment, dated December 31, 2009, between LKI and the
underwriters of the Insurance Policies numbered B0576GLYA472 and B0576GLYB472
(the “Interim Payment Agreement”); and (iii) any amounts that any LKI Party
receives with respect to any settlement reached or judgment rendered in
connection with the Insurance Policies and/or the Interim Payment Agreement;
provided, that nothing herein constitutes nor shall be deemed a conveyance,
transfer or assignment of any right, title or interest that Gulfdiam or any
other person may have with respect to the Insurance Policies; provided, further,
that nothing herein constitutes nor shall be deemed a conveyance, transfer, or
assignment of ABN’s right, title or interest in the Gulfdiam Obligations or
ABN’s right, title or interest to receive proceeds of the Insurance Policies
from Gulfdiam or any other person (other than an LKI Party) as a creditor of
Gulfdiam or any other person (other than an LKI Party) to the extent that
Gulfdiam or any other person (other than an LKI Party) is entitled to any
proceeds of the Insurance Policies.

 
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2.           Releases.   In consideration of the Settlement Amount, transfer of
the LK Shares and the other terms and conditions set forth herein the Parties
release each other as follows (each, a “Release” and collectively, the
“Releases”):
 
 
a.
Mutual Release Among ABN and LKI Parties.  ABN, on the one hand, and each LKI
Party, on the other, on their own behalf and on behalf of each of their
successors, predecessors, successors in interest and assigns, parents,
subsidiaries, affiliates (which, for the purposes of this Settlement Agreement,
does not include Gulfdiam), current and former officers, directors, attorneys,
principals, members, representatives, agents, servants and employees and their
respective issue, heirs, executors, administrators, successors and assigns (in
each case, past, present or future) hereby release and forever discharge each
other, and each other’s successors, predecessors (including, but not limited to,
The Royal Bank of Scotland N.V. and its successors, predecessors, successors in
interest and assigns, parents, subsidiaries, affiliates, current and former
officers, directors, attorneys, principals, members, representatives, agents,
servants and employees and its respective issue, heirs, executors,
administrators, successors and assigns (in each case, past, present or future),
collectively, “RBS N.V.”)), former lenders of the ABN/RBS Obligations
(including, but not limited to, RBS N.V.), successors in interest, heirs,
assigns, parents, subsidiaries, affiliates (which, for the purposes of this
Settlement Agreement, does not include Gulfdiam), current and former officers,
directors, attorneys, principals, members, representatives, agents, servants,
employees and their respective issue, heirs, executors, administrators,
successors and assigns (in each case, past, present, or future) from any and all
claims, suits, demands, obligations, liabilities, damages (including but not
limited to consequential and punitive damages), actions, causes of action,
claims for attorney fees, costs and expenses, and lawsuits of every kind and
description, in law or in equity, whether in the United States (based on any
federal or state law or right of action) or in any other country in the world
(based on any foreign law or right of action), whether known or unknown, whether
foreseen or unforeseen, whether matured or unmatured, accrued or not accrued,
which any of them ever had, now has or may in the future have for, upon or by
reason of any matter, cause, or thing whatsoever, whether known or unknown, or
disclosed to any of them, from the beginning of time to the Effective Date
related to the ABN/RBS Obligations and the LKI Claims (the “ABN/LKI Released
Claims”).

 
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b.
Mutual Release Among RBS and LKI Parties.  RBS, on the one hand, and each LKI
Party, on the other, on their own behalf and on behalf of each of their
successors, predecessors, successors in interest, and assigns, parents,
subsidiaries, affiliates (including, but not limited to RBS N.V., but which, for
the purposes of this Settlement Agreement, does not include Gulfdiam), current
and former officers, directors, attorneys, principals, members, representatives,
agents, servants and employees and their respective issue, heirs, executors,
administrators, successors and assigns (in each case, past, present or future)
hereby release and forever discharge each other, and each other’s successors,
predecessors, successors in interest, heirs, assigns, parents, subsidiaries,
affiliates (including, but not limited to RBS N.V., but which, for the purposes
of this Settlement Agreement, does not include Gulfdiam), current and former
officers, directors, attorneys, principals, members, representatives, agents,
servants, employees and their respective issue, heirs, executors,
administrators, successors and assigns (in each case, past, present or future)
from any and all claims, suits, demands, obligations, liabilities, damages
(including, but not limited to consequential and punitive damages), actions,
causes of action, claims for attorney fees, costs and expenses, and lawsuits of
every kind and description, in law or in equity, whether in the United States
(based on federal or state law or right of action) or in any other country in
the world (based upon any foreign law or right of action), whether known or
unknown, whether foreseen or unforeseen, whether matured or unmatured, accrued
or not accrued, which any of them ever had, now has or may in the future have
for, upon or by reason of any matter, cause, or thing whatsoever, whether known
or unknown, or disclosed to any of them, from the beginning of time to the
effective date of this Settlement Agreement related to the ABN/RBS Obligations
and the LKI Claims (the “RBS/LKI Released Claims”).
     

 
c.
It is the intention of all of the Parties that the releases contained in
paragraph 2(a) and 2(b) be the broadest form of release of liability permitted
by law and is meant to encompass, inter alia, any past, present or future claim,
condition or injury, except any claim that may arise out of the breach of this
Settlement Agreement.

 
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d.
ABN, RBS and each LKI Party covenant not to institute, maintain or prosecute any
action, claim, proceeding or cause of action of any kind to enforce any of the
ABN/LKI Released Claims or RBS/LKI Released Claims.  In any litigation arising
from or related to an alleged breach of this Settlement Agreement between ABN
and any LKI Party, or RBS and any LKI Party, ABN, RBS and each LKI Party
covenant and agree that the release in this paragraph 2 may be pleaded as a
defense, counterclaim or crossclaim, and shall be admissible into evidence
without any foundation or testimony whatsoever.
     

 
e.
The rights of the Parties as against all persons or entities that are not
released by the Releases (including but not limited to, any other financial
institutions, other diamond related companies or any insurance companies) are
not affected and such rights (if any) may be enforced in existing or future
legal actions involving any Party.
     

 
f.
Nothing contained in this Settlement Agreement shall be deemed a waiver of any
Party’s right to seek discovery (or object to such discovery request) from any
other Party in connection with any actually pending litigation (whether such
litigation is pending on the Effective Date or in the future), arbitration,
mediation or alternative dispute resolution proceeding to which such Party is a
party.

 
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3.           Limitations on Settlement Agreement.
 
 
a.
Notwithstanding anything to the contrary contained herein, if, at any time, the
payment of the Settlement Amount, exchange of the Releases, transfer of the LK
Shares or ABN’s rights under the Insurance Policies or any other consideration
provided hereunder shall be invalidated, declared to be fraudulent or
preferential, reduced, disgorged, reclaimed, recouped, set aside or rescinded by
a final order, judgment or approval of a settlement agreement or stipulation of
settlement by a court of competent jurisdiction and ABN shall be required, by
such final order, judgment or approval of a settlement agreement or stipulation
of settlement, to return any portion of the Settlement Amount to any LKI Party
or its successors (including, but not limited to, any trustee, receiver,
litigation trust or bankruptcy estate): (i) this Settlement Agreement
(including, but not limited to, the Releases) shall be null and void and of no
force and effect, (ii) ABN and RBS shall be free, in accordance with the Credit
Agreement, the Facility Letter, the Facility Letter Guaranty, the Credit
Agreement Guaranty, the LKI-Gulfdiam Guaranty, the Japan Credit Agreement, the
Japan Guarantee, applicable law and equity, to exercise and enforce or to take
steps to exercise and enforce all other rights, powers, privileges and remedies
available to it with respect to the ABN/RBS Obligations as if this Settlement
Agreement had not been entered into, (iii) the transfer of the LK Shares to LKI
shall be deemed null and void and the Parties shall take all steps necessary to
restore the ownership of rights to the LK Shares and the proceeds thereof as in
effect on the Effective Date, (iv) LKI’s rights granted hereunder to and under
the Insurance Policies shall be deemed null and void and the Parties shall take
all steps necessary to restore ABN’s rights to the Insurance Policies and the
proceeds thereof as in effect on the Effective Date; (v) the LKI Parties shall
be free to assert the LKI Claims and take all other steps under applicable law
and equity, to exercise and enforce or to take steps to exercise and enforce all
other rights, powers, privileges and remedies available to it with respect to
the LKI Claims as if this Settlement Agreement had not been entered into and
(vi) ABN shall return the Settlement Amount to LKI.  In such event, any and all
statutes of limitations applicable to the LKI Claims and the ABN/RBS Obligations
shall be deemed to have been tolled from the Effective Date through the date of
such final order, judgment or approval of a settlement agreement or stipulation
of settlement (the “Tolling Period”) and each of ABN, RBS and each LKI Party, on
behalf of itself and its successors, successors in interest, assigns, parents,
subsidiaries, affiliates (other than Gulfdiam) current and former officers,
directors, attorneys, principals, members, representatives, agents, servants and
employees and their respective issue, heirs, executors, administrators,
successors and assigns (in each case, past, present or future) forever waive any
and all defenses based on calculation of any and all applicable statutes of
limitation that include the Tolling Period.

 
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b.
Nothing contained herein, however, shall bar any action or claim to enforce the
terms of this Settlement Agreement.

 
4.           Representations and Warranties of each LKI Party.  In order to
induce RBS and ABN to enter into this Settlement Agreement, each LKI Party
hereby represents and warrants to each of RBS and ABN as follows and agrees that
each of the said representations and warranties shall be deemed to survive until
full and complete performance of this Settlement Agreement:
 
 
a.
Authority.  The execution, delivery and performance by each LKI Party of this
Settlement Agreement and the consummation of the transactions contemplated
hereby are: (i) within the power of such LKI Party and (ii) has been duly
authorized by all necessary actions on the part of such LKI Party pursuant to
the resolutions delivered by each LKI Party to RBS and ABN, which have been duly
adopted by the appropriate governing body of each LKI Party and are continuing
in effect.

 
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b.
Enforceability.  This Settlement Agreement has been duly executed and delivered
by each LKI Party and constitutes a legal, valid and binding obligation of such
LKI Party, enforceable against such LKI Party in accordance with its terms,
except as may be limited by bankruptcy, insolvency or other governmental rules
of general application relating to or affecting the enforcement of creditors’
rights generally and general principles of equity.

 
 
c.
Non-Contravention.  The execution and delivery by each LKI Party of this
Settlement Agreement and the performance and consummation of the transactions
contemplated hereby do not violate (i) any law applicable to such LKI Party or
(ii) any provision of, or result in the breach or the acceleration of, or
entitle any other person to accelerate, any material contractual obligation of
such LKI Party.

 
 
d.
Approvals.  No consent, approval, order or authorization of, or registration,
declaration or filing with, any governmental authority or other person
(including equity holders of any person) is required in connection with the
execution and delivery of this Settlement Agreement by any LKI Party or the
performance or consummation of the transactions contemplated hereby, except for
those which have been made or obtained and are in full force and effect.

 
5.           Representations and Warranties of RBS.  In order to induce the LKI
Parties to enter into this Settlement Agreement, RBS hereby represents and
warrants to each LKI Party (severally, and not jointly) as follows and agrees
that each of the said representations and warranties shall be deemed to survive
until full and complete performance of this Settlement Agreement:

 
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a.
Authority.  The execution, delivery and performance by RBS of this Settlement
Agreement and the consummation of the transactions contemplated hereby are: (i)
within the power of RBS and (ii) has been duly authorized by all necessary
actions on the part of RBS.

 
 
b.
Enforceability.  This Settlement Agreement has been duly executed and delivered
by RBS and constitutes a legal, valid and binding obligation of RBS, enforceable
against RBS in accordance with its terms, except as may be limited by
bankruptcy, insolvency or other governmental rules of general application
relating to or affecting the enforcement of creditors’ rights generally and
general principles of equity.

 
 
c.
Non-Contravention.  The execution and delivery by RBS of this Settlement
Agreement and the performance and consummation of the transactions contemplated
hereby do not violate (i) any law applicable to RBS or (ii) any provision of, or
result in the breach or the acceleration of, or entitle any other person to
accelerate, any material contractual obligation of RBS.

 
 
d.
Approvals.  No consent, approval, order or authorization of, or registration,
declaration or filing with, any governmental authority or other person
(including equity holders of any person) is required in connection with the
execution and delivery of this Settlement Agreement by RBS or the performance or
consummation of the transactions contemplated hereby, except for those which
have been made or obtained and are in full force and effect.

 
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6.           Representations and Warranties of ABN.  In order to induce the LKI
Parties to enter into this Settlement Agreement, ABN hereby represents and
warrants to each LKI Party (severally, and not jointly) as follows and agrees
that each of the said representations and warranties shall be deemed to survive
until full and complete performance of this Settlement Agreement:
 
 
a.
Authority.  The execution, delivery and performance by ABN of this Settlement
Agreement and the consummation of the transactions contemplated hereby are: (i)
within the power of ABN and (ii) has been duly authorized by all necessary
actions on the part of ABN.

 
 
b.
Enforceability.  This Settlement Agreement has been duly executed and delivered
by ABN and constitutes a legal, valid and binding obligation of ABN, enforceable
against ABN in accordance with its terms, except as may be limited by
bankruptcy, insolvency or other governmental rules of general application
relating to or affecting the enforcement of creditors’ rights generally and
general principles of equity.

 
 
c.
Non-Contravention.  The execution and delivery by ABN of this Settlement
Agreement and the performance and consummation of the transactions contemplated
hereby do not violate (i) any law applicable to ABN or (ii) any provision of, or
result in the breach or the acceleration of, or entitle any other person to
accelerate, any material contractual obligation of ABN.

 
 
d.
Approvals.  No consent, approval, order or authorization of, or registration,
declaration or filing with, any governmental authority or other person
(including equity holders of any person) is required in connection with the
execution and delivery of this Settlement Agreement by ABN or the performance or
consummation of the transactions contemplated hereby, except for those which
have been made or obtained and are in full force and effect.

 
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7.           Costs and Expenses.  Each Party shall bear its own costs and
expenses related to this Settlement Agreement, including attorneys’ fees
incurred in connection therewith.
 
8.           No Admission. This Settlement Agreement is a settlement and
compromise of disputed claims and does not constitute and is not to be construed
as a reflection or admission of any wrongdoing, fault, or liability by any Party
or of any of their parents, subsidiaries, affiliates, current and former
officers, directors, attorneys, principals, members, representatives, agents,
servants or employees.
 
9.           Disclosure.  To the extent required in the legal opinion of LKI’s
counsel, LKI will file this Settlement Agreement with the Securities Exchange
Commission.
 
10.         Representation by Counsel. The Parties represent and acknowledge
that they have discussed this Settlement Agreement with legal counsel; that they
have read and understand all the provisions of this Settlement Agreement; that
they voluntarily enter into this Settlement Agreement; and that they have the
capacity to enter into this Settlement Agreement.
 
11.         Jointly Drafted.  This Settlement Agreement shall be considered as
drafted jointly by the Parties, and no ambiguity or uncertainty found in the
terms hereof shall be construed for or against either Party based on an
attribution of drafting to either Party.
 
12.         Headings.  The headings used herein are for purposes of reference
only and shall not otherwise affect the meaning or interpretation of any
provision hereof.

 
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13.         Choice of Law; Jurisdiction.  This Settlement Agreement shall be
governed by, and construed in accordance with, the internal laws of the State of
New York applicable to contracts executed and fully performed within the State
of New York.  The Parties hereto irrevocably submit to the jurisdiction of the
New York Supreme Court, New York County, or the United States District Court for
the Southern District of New York with respect to any suit, action or proceeding
arising out of or relating to this Settlement Agreement.
 
14.         Counterparts. This Settlement Agreement may be executed and
delivered (including, without limitation, by facsimile transmission or other
electronic means) in counterparts, each of which shall be deemed an original,
but all of which shall constitute the same instrument.
 
15.         Benefit of Successors.  This Settlement Agreement shall inure to the
benefit of the Parties hereto and their respective successors and assigns.
 
16.         Amendments, Waivers, Etc.  No amendment to or waiver of any
provision of this Settlement Agreement, nor consent to any departure by any
Party of its obligations under this Settlement Agreement, shall in any event be
effective unless the same shall be in writing and signed by the Parties affected
by such amendment, modification or waiver, and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given.
 
17.         No Waiver.  Nothing contained in this Settlement Agreement shall be
construed or interpreted, nor is it intended, as a waiver of or limitation of
any rights, powers, privileges or remedies that: (i) ABN or RBS may have with
respect to the ABN/RBS Obligations or the Gulfdiam Obligations against any party
other than the LKI Parties or (ii) any claims that any LKI Party may have
against any party other than ABN, The Royal Bank of Scotland N.V. or RBS.
 
18.         Third Party Beneficiary.  The Royal Bank of Scotland N.V. is a third
party beneficiary of this Settlement Agreement.

 
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19.         Notices.  All notices, demands, or other communications hereunder
shall be in writing and shall be sent overnight mail to the following
recipients, or to such other recipients and addressees as the Parties may
hereafter designate in writing:

To LKI Parties:
 
Lazare Kaplan International Inc.
19 West 44th Street
New York, New York 10036
Attention: William Moryto
 
With copies to:
 
Herrick, Feinstein LLP
2 Park Avenue
New York, New York 10016
Attention: Christopher J. Sullivan, Esq.
Fax:  (212) 592-1500
     
To ABN:
ABN AMRO Bank N.V.
Foppingadreef 22, Amsterdam
Postbus 283, 1000 EA, Amsterdam
AA 3532
Attention: Harko Vos
Email: harko.vos@nl.abnamro.com
 
With copies to:
 
Orrick, Herrington & Sutcliffe LLP
51 West 52nd Street
New York, New York 10019
Attention: John Ansbro, Esq.
Fax:  (212) 506-3741
     
To RBS:
 
The Royal Bank of Scotland plc
Head of Legal, GBM
135 Bishopsgate
London EC2M 3UR
  
With copies to:
 
Orrick, Herrington & Sutcliffe LLP
51 West 52nd Street
New York, New York 10019
Attention: John Ansbro, Esq.
Fax:  (212) 506-3741

 
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IN WITNESS WHEREOF, the Parties have executed this Settlement Agreement as of
the date written above.
 

 
LAZARE KAPLAN INTERNATIONAL INC.
     
By:______________________________
 
Name:___________________________
 
Title: ____________________________
     
LAZARE KAPLAN EUROPE INC.
     
By:______________________________
 
Name:___________________________
 
Title: ____________________________
 
LAZARE KAPLAN AFRICA INC.
     
By:______________________________
 
Name:___________________________
 
Title: ____________________________
     
LAZARE KAPLAN JAPAN INC.
     
By:______________________________
 
Name:___________________________
 
Title: ____________________________

 

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ABN AMRO BANK N.V.
     
By:______________________________
 
Name:___________________________
 
Title: ____________________________
     
By:______________________________
 
Name:___________________________
 
Title: ____________________________

 

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THE ROYAL BANK OF SCOTLAND PLC
     
By:______________________________
 
Name:___________________________
 
Title: ____________________________

 

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Annex A
Wire Instructions

Beneficiary's bank:
ABN AMRO Bank N.V.  (Belgium Branch)
Pelikaanstraat 70-76
2018 Antwerp, Belgium

Swift Address:
ABNABE2AIDJ

Account beneficiary:
BE89674540608185

Name/ Address Beneficiary:
ABN AMRO INT US LOAN ACC
Pelikaanstraat 70-76
2018 Antwerp, Belgium

Details of payment:
Agreement dated 26 October 2010

 

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