Document:

Exhibit 10.9

GENTEK INC.

PERFORMANCE CONTINGENT RESTRICTED STOCK AGREEMENT 

          THIS PERFORMANCE CONTINGENT RESTRICTED STOCK AGREEMENT (the “Agreement”) between GenTek Inc., a
Delaware corporation (the “Company”), and «FirstName» «LastName» (the “Participant”)
effective as of May 24, 2007 (the “Grant Date”). 

WITNESSETH:

          WHEREAS, the Company maintains the 2003 Management and Directors Incentive Plan (the “Plan”) in
order to attract and retain quality management personnel and provide its officers and other key employees with incentives to achieve long-term corporate objectives; 

          WHEREAS, the Participant is an officer or other key employee of the Company with responsibility for the management or administration of the Company’s business;

          WHEREAS, the Company’s Board of Directors has determined to grant Restricted Stock under the Plan to the Participant on the terms and conditions set forth
below.

          NOW, THEREFORE, in consideration of the various covenants and agreements herein contained, and intending to be legally bound hereby, the parties hereto agree as
follows: 

     1.  Definitions.

          Capitalized terms used in this Agreement, which are not defined herein, shall have the meaning given such terms in the Plan.

     2.  Award.

          The Company hereby grants to the Participant at no cost a total of < > shares of Company common stock, with no par value per share (the “Restricted Stock”), subject to the terms, restrictions and other conditions of this Agreement and the Plan.

     3.  Stock Certificates/Book Entry Form.

          The Company shall cause (i) the Restricted Stock to be issued and a stock certificate or certificates representing the Restricted Stock to be registered in the name of the Participant, or (ii) the
Restricted Stock to be held in book entry form or in such other format as determined by the Committee, in either case promptly following execution of this Agreement. If a stock certificate is issued, it shall be delivered to, and held in custody by,
the Company until the applicable restrictions lapse at the times specified in Section 5 below or such Restricted Stock is forfeited pursuant to this Agreement. 

     4.  Restrictions. 

          While the Restricted Stock is held by the Participant, the Participant shall have all rights and privileges of a stockholder of the Company with respect to the Restricted Stock, including voting
rights and the right to receive dividends paid with respect to such shares, except that no Restricted Stock or any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of the Participant or his/her
successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means, whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), any attempted disposition thereof shall be null and void and of no effect; provided however, that this Section 4 shall not prevent transfers by will or by the applicable laws of descent and distribution.

     5.  Lapse of Restrictions.

          (a) Vesting Schedule. The restrictions set forth in Section 4 on the shares of Restricted Stock shall lapse,
and the shares of Restricted Stock shall vest upon satisfaction of the following, as reasonably determined by the Committee:

        (i) All restrictions on 33% of the shares of Restricted Stock shall lapse on the date the Committee determines that the Tier I performance
    goals set forth on Exhibit A have been achieved; provided that such Tier I performance goals are achieved before the fourth anniversary of the Grant Date; 

        (ii) All restrictions on 33% of the shares of Restricted Stock shall lapse on the date the Committee determines that the Tier II performance
  goals set forth on Exhibit A have been achieved; provided that such Tier II performance goals are achieved before the fourth anniversary of the Grant Date; and 

        (iii) All restrictions on 34% of the shares of Restricted Stock shall lapse on the date the Committee determines that the Tier III performance
  goals set forth on Exhibit A have been achieved; provided that such Tier III performance goals are achieved before the fourth anniversary of the Grant Date. 

          (b) Other Events.

         (i) Upon the occurrence of a Change of Control, all restrictions on all shares of Restricted Stock shall lapse immediately, unless the Restricted Stock is forfeited prior to the date of a Change of
    Control pursuant to this Agreement. 

         (ii) Upon a termination of the Participant’s employment with the Company or its affiliates for any reason, all restrictions on all shares of Restricted Stock shall lapse to the extent provided
  in any employment, change of control, severance or similar agreement, including a letter agreement, between the Participant and the 

Company (any such agreement, a “Letter Agreement”), unless the Restricted Stock is forfeited prior to the date of a termination of employment pursuant to this
Agreement.

          (c) Forfeiture. Notwithstanding anything herein to the contrary, all shares of Restricted Stock for which the restrictions have not lapsed as
provided in Section 5(a) or as provided in Section 5(b) shall be forfeited to the Company effective upon the earlier of (i) the Participant’s termination of employment with the Company or its affiliates for any reason and (ii) the fourth
anniversary of the Grant Date. 

     6.  Tax Withholding.

          Whenever the restrictions on the Participant’s rights to shares of Restricted Stock lapse pursuant to Section 5 of this Agreement, the Company shall notify the Participant of the amount of tax
which must be withheld by the Company under all applicable federal, state and local tax laws, and the Participant shall promptly make arrangements to satisfy such tax obligations.

     7.  Conditions to Issuance of Shares. 

          The Company shall not be required to issue any shares of Restricted Stock in book entry form or such other format determined by the Committee, or to issue or deliver any certificate or certificates
for shares of Restricted Stock pursuant to this Agreement prior to (i) the payment by the Participant of all amounts which, under federal, state or local tax law, the Company (or other employer corporation) is required to withhold upon issuance of
Restricted Stock and/or the lapse or removal of any of the restrictions; and (ii) the lapse of such reasonable period of time as the Company may from time to time establish for reasons of administrative convenience. 

     8.  No Right to Continued Employment. 

          Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continue in the employment or other service of the Company, any Parent or any Subsidiary or shall interfere with
or restrict in any way the rights of the Company, any Parent or any Subsidiary, which are hereby expressly reserved, to discharge the Participant at any time for any reasons whatsoever, with or without cause. 

     9.  Restricted Stock Subject to Plan. 

          Notwithstanding anything in this Agreement to the contrary, the terms of this Agreement shall be subject to the terms of the Plan, a copy of which may be obtained by the Participant from the office of
the Company’s Secretary. 

     10. Miscellaneous. 

          (a) This Agreement may be executed in one or more counterparts, all of which taken together will constitute one and the same instrument.

          (b) The terms of this Agreement may only be amended, modified or waived by a written agreement executed by both of the parties hereto.

          (c) The validity, performance, construction and effect of this Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware. 

          (d) This Agreement, the Plan and any Letter Agreement constitute the entire agreement between the parties hereto with respect to the Restricted
Stock Award granted herein. Notwithstanding the foregoing, the Participant recognizes and hereby acknowledges that by virtue of having received this Restricted Stock Award, the Participant is no longer eligible for any enhanced severance payment
payable under Section 4.02 of the GenTek Inc. Key Employee Retention Plan that the Participant may have been eligible to receive.

          (e) Except as otherwise herein provided, this Agreement shall be binding upon and shall inure to the benefit of the Company, its successors and
assigns, and of the Participant and the Participant’s personal representatives. 

          IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth below. 

 

	 	GENTEK INC.
	 	 	 
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	Robert D. Novo
	 	 	 
	 	Title:	Vice President, Human Resources & EH&S
	 	 	 
	 	 	 
	 	PARTICIPANT
	 	 	 
	 	 
	 	«FirstName» «LastName» Signature
	 	 
	 	Date:LAZARE KAPLAN INTERNATIONAL INC. 

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT 

          This Second Amendment (herein, the “Amendment”) to Revolving Credit Agreement is entered into as of August __, 2007, between Lazare Kaplan International Inc., a Delaware corporation (the “Borrower”) and HSBC
Bank USA, National Association, as lender (the “Bank”). 

PRELIMINARY STATEMENTS 

          A.           The Borrower and Bank entered into a certain Revolving Credit Agreement, dated as of September 28, 2004, as amended by the First Amendment to Revolving Credit Agreement between Borrower and Bank dated as of December 1, 2005
(the Revolving Credit Agreement, as the same has been amended prior to the date hereof, being referred to herein as the “Credit Agreement”). All capitalized terms used herein without definition shall have the same meanings herein as such
terms have in the Credit Agreement. 

          B.           To induce Bank to continue to extend the credit facility to Borrower and to provide for certain requests of Borrower with respect to additional permitted Indebtedness, Bank and Borrower have agreed to amend the Credit
Agreement as set forth below. 

          Now, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

SECTION 1. AMENDMENTS. 

          Subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows: 

             1.1           The
      following definitions shall be inserted in appropriate alphabetical order
      in Section 1 of the Credit Agreement:

  “ABN Amro Bank Line”: The secured
      line of credit given by ABN Amro to Gulfdiam in the aggregate amount of
      up to U.S.$50,000,000, to be used by Gulfdiam for the purpose of financing
      of purchases and sales of rough diamonds (and possibly working capital
      needs) in Angola.

  “ABN Amro”: ABN Amro Bank N.V.

  “Gulfdiam”: Gulfdiam DMCC, a joint
      venture partially owned by a wholly-owned subsidiary of Borrower. 

   “Gulfdiam Guaranty”: That certain
      unsecured limited guaranty executed by Borrower in favor of ABN Amro, pursuant
      to which Borrower shall guaranty 50% of the net outstanding obligations
      from time to time of Gulfdiam under the ABN Amro Bank Line, not to exceed
      U.S.$25,000,000 in the aggregate (or its equivalent in foreign currencies,
      at 

  

  conversion rates established by ABN Amro),
      plus any interest accrued thereon, charges relating thereto including,
      without limitation, monetary corrections, if any, and all costs and expenses
      of enforcement of the Gulfdiam Guaranty.

   “Nedbank Guaranty”: That certain
      guaranty of up to $6,000,000 in Indebtedness (which shall include all
      Indebtedness of Subsidiaries of Borrower) executed by Borrower in favor
      of Nedbank, Limited, South Africa, which shall include guaranties by the
      Borrower and Subsidiaries of the Borrower in connection with such Indebtedness. 

             1.2           The
      definition of “Commitment” appearing in Section 1 of the Credit
      Agreement shall be amended in its entirety to read as follows: “Commitment:
      The obligation of Bank to make Loans to the Borrower up to an aggregate
      outstanding principal amount not to exceed $20,000,000, as such amount
      may be reduced from time to time or terminated according to the terms of
      this Agreement, including, without limitation, Section 2.3(b) hereof.” 

             1.3           The
      definition of “Termination Date” appearing in Section 1 of the
      Credit Agreement shall be amended in its entirety to read as follows: “Termination
      Date: June 30, 2008.” 

             1.4           The
      following sentence is hereby added to the end of the definition of “Contingent
      Obligations” as follows: “Notwithstanding the forgoing, the Nedbank
      Guaranty and the Gulfdiam Guaranty shall not be deemed to be Contingent
      Obligations for the purposes of this Agreement.” 

             1.5           Section
      2.3 of the Credit Agreement shall be amended in its entirety to read as
      follows: 

   “Section 2.3. Repayments and Prepayments.
      (a) Optional Prepayment or Repayment. The Borrower hereby agrees to pay
      to Bank, no later than the Maturity Date, the entire unpaid principal of
      and interest on the Loans. The Borrower may elect to prepay the outstanding
      principal of all or any part of any Loan, without premium or penalty, provided
      that (a) any full or partial prepayment of the outstanding amount of any
      LIBOR Rate Loans pursuant to this Section 2.3(a) may be made only on the
      last day of the Interest Period relating thereto, and (b) any such prepayments
      of LIBOR Rate Loans shall be in a minimum amount of $300,000 or a whole
      multiple of $100,000 in addition thereto. The Borrower shall give Bank
      Notice of the date and amount of any proposed prepayment pursuant to this
      Section 2.3(a) (y) no less than three (3) LIBOR Business Days prior to
      any such proposed prepayment of any LIBOR Rate Loans, and (z) no later
      than 10:00 a.m., New York time, on the date of any such prepayment of any
      Base Rate Loan. The Borrower shall be entitled to reborrow before the Termination
      Date such amounts, upon the terms and subject to the conditions of this
      Agreement. Each repayment or prepayment of principal of any Loan shall
      be accompanied by payment of the unpaid interest accrued to such date on
      the principal being repaid or prepaid and shall be applied, in the absence
      of instruction by the Borrower, first to the principal of Base Rate Loans
      and then to the principal of LIBOR Rate Loans. If at any time the aggregate
      amount of 

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  Loans outstanding shall exceed the Commitment,
      the Borrower shall immediately pay the amount of such excess to Bank for
      application to the Loans. The Borrower may elect to reduce or terminate
      the Commitment by a minimum principal amount of $100,000 or an integral
      multiple thereof of the amount reduced or, as the case may be, terminated,
      upon Notice to Bank given by 10:00 a.m., New York time, at least two (2)
      Business Days prior to the date of such reduction or termination. The Borrower
      shall not be entitled to reinstate the respective Commitment following
      such reduction or termination. 

   (b) Mandatory Repayment. The Borrower hereby
      agrees to pay to Bank on the following dates the principal amount of the
      Loans listed next to such date, each payment shall reduce the Commitment
      by each respective amount. 

  
    	Date 	 	Payment Amount 
	 	 	 
	September 28, 2007 	 	$1,000,000 
	 	 	 
	October 31, 2007 	 	$1,000,000 
	 	 	 
	November 30, 2007 	 	$1,000,000 
	 	 	 
	December 31, 2007 	 	$7,000,000 
	 	 	 
	March 31, 2008 	 	$5,000,000 
	 	 	 
	June 30, 2008 	 	the entire unpaid principal 
	 	 	amount then outstanding 

    

  

             1.6           Section
      7.2(a) of the Credit Agreement shall be amended in its entirety to read
      as follows:

  “(a) create, incur or assume any Indebtedness,
      other than (i) up to $145,000,000 in unsecured Indebtedness, including,
      without limitation, the Indebtedness to Bank, unsecured Indebtedness under
      the ABN AMRO Leumi Credit Agreement, Indebtedness (which shall include
      any Indebtedness of Lazare Kaplan Belgium (LKB) NV) under lines of credit
      from Antwerp Diamond Bank to it and such Subsidiary, including guaranties
      by Subsidiaries of the Borrower (including, without limitation, Material
      Domestic Subsidiaries) in connection with such Indebtedness, (ii) up to
      five hundred fifty million Yen in unsecured Indebtedness to ABN AMRO Bank
      N.V., Tokyo branch, including guaranties by Subsidiaries of the Borrower
      (including, without limitation, Material Domestic Subsidiaries) in connection
      with such Indebtedness, (iii) current liabilities of the Borrower not incurred
      through the borrowing of money or the obtaining of credit on an open account
      basis customarily extended, (iv) Indebtedness in respect of taxes or other
      governmental charges contested in good faith and by appropriate proceedings
      and for which adequate reserves have been taken, (v) Indebtedness 

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  under the Nedbank Guaranty, (vi) Indebtedness
      under the Gulfdiam Guaranty, and (vii) other unsecured Indebtedness not
      in excess of $250,000;” 

            1.7           Clause
      (vi) of Section 7.2(b) of the Credit Agreement shall be amended in its
      entirety to read as follows:

  "and (vi) Liens granted by Subsidiaries
      of the Borrower on the property of such Subsidiaries located outside of
      the United States to secure Indebtedness permitted
      by Section 7.2(a)(i), Section 7.2(a)(v) or Section 7.2(a)(vi);" 

            1.8           All
      references to the “Note” in the Credit Agreement shall be deemed
      to be references to the Second Amended and Restated Note, to be executed
      and delivered by the Borrower and payable to the order of the Bank, in
      the form of Exhibit A attached hereto. 

SECTION 2. CONDITIONS PRECEDENT. 

          The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent: 

          2.1           The Borrower and Bank shall have executed and delivered this Amendment and Borrower shall have executed and delivered to Bank the Second Amended and Restated Note. 

          2.2           Bank shall have received copies (executed or certified, as may be appropriate) of all legal documents or proceedings taken in connection with the execution and delivery of this Amendment. 

          2.3           Legal matters incident to the execution and delivery of this Amendment shall be satisfactory to Bank. 

          2.4           Lazare Kaplan Europe Inc. and Lazare Kaplan Japan Inc. shall have executed and delivered to Bank their consent to this Amendment in the form set forth below. 

SECTION 3. REPRESENTATIONS. 

          In order to induce Bank to execute and deliver this Amendment, the Borrower hereby represents to Bank that as of the date hereof, except as set forth in that certain letter from Bank to the Borrower dated as of the date hereof,
the representations and warranties set forth in Section 5 of the Credit Agreement are and shall be and remain true and correct (except that the representations contained in Section 5(d) shall be deemed to refer to the most recent financial
statements of the Borrower delivered to Bank) and the Borrower is in compliance with the terms and conditions of the Credit Agreement and no Default or Event of Default has occurred and is continuing under the Credit Agreement or shall result after
giving effect to this Amendment. 

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SECTION 4. MISCELLANEOUS. 

          4.1           Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, the
Note, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement
being sufficient to refer to the Credit Agreement as amended hereby. 

          4.2           The Borrower agrees to pay on demand all costs and expenses of or incurred by Bank in connection with the negotiation, preparation, execution and delivery of this Amendment, including the fees and expenses of counsel for
Bank. 

          4.3           This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties
hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. This Amendment shall be governed by the internal laws of the State of New York. 

[SIGNATURE PAGE TO FOLLOW] 

 

 

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               This Amendment to the Credit Agreement is entered into as of the date and year first above written. 

  	LAZARE KAPLAN INTERNATIONAL INC. 
	 
	 
	By: _____________________  
	Name: 
	Title: 
	 
	 
	HSBC BANK USA, NATIONAL ASSOCIATION 
	 
	 
	By: _____________________  
	Name: 
	Title: 

  

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GUARANTOR’S ACKNOWLEDGEMENT AND CONSENT 

          Each of the undersigned heretofore executed and delivered to Bank a Guaranty dated September 28, 2004. Each of the undersigned hereby consents to the Second Amendment to Revolving Credit Agreement as set forth above and confirms
that its Guaranty and all of the undersigned’s obligations thereunder remain in full force and effect. Each of the undersigned further agrees that the consent thereof to any further amendments to the Credit Agreement shall not be required as a
result of this consent having been obtained, except to the extent, if any, specifically required by the Guaranty referred to above. 

  	LAZARE KAPLAN EUROPE
          INC. 
	 
	 
	By: ________________________  
	Name: 
	Title: 
	 
	 
	LAZARE KAPLAN JAPAN
          INC. 
	 
	 
	By: ________________________  
	Name: 
	Title: 

  

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EXHIBIT A 

SECOND AMENDED AND RESTATED PROMISSORY NOTE 

	 

  	
New York, New York
  
	
$20,000,000.00
  	
Dated as of September 24, 2004
  

     On June 30, 2008, FOR VALUE RECEIVED, the undersigned, LAZARE KAPLAN INTERNATIONAL INC., a Delaware corporation (the "Borrower") promises to pay to the order of HSBC BANK USA, National Association at
its principal office at 452 Fifth Avenue, New York, New York 10018 the principal sum of Twenty Million Dollars ($20,000,000.00), or such lesser amount as may be advanced to the Borrower hereon pursuant to the Agreement hereinafter identified.
This Note is subject to mandatory repayment in accordance with the terms and conditions set forth in the Agreement. 

     The Borrower hereby promises to pay interest (computed on the basis of a year of 360 days for the actual number of days elapsed) on the principal amount from time to time remaining unpaid hereon from
the date hereof until paid at the rates, and payable in the manner and on the dates, specified in the Agreement. 

     All loans made by the payee hereof against this Note, and all payments made by the Borrower on account of the unpaid principal amount hereof, shall be recorded on the books and records of the holder
hereof and endorsed hereon prior to any transfer hereof, and the Borrower agrees that in any action or proceeding instituted to collect or enforce collection of this Note, the amount shown as owing on this Note on the books and records of the holder
hereof shall be deemed prima facie correct. 

     This Note is issued under the terms and provisions of Revolving Credit Agreement bearing even date herewith by and between the Borrower and HSBC BANK USA, National Association, as amended (the
"Agreement"), and this Note and the holder hereof are entitled to all of the benefits provided for by said Agreement or referred to therein, including the ability of Bank to accelerate the payment of the Note upon the occurrence of an Event of
Default, to which Agreement reference is hereby made for a statement thereof. 

     This Note shall be construed in accordance with, and governed by, the internal laws of the State of New York. 

     The Borrower hereby promises to pay all costs and expenses (including attorneys' fees) suffered or incurred by the holder hereof in collecting this Note or in enforcing any rights in any collateral
therefor. The Borrower hereby waives presentment for payment and notice of dishonor. 

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      This Note evidences loans made by Bank to the Borrower, from time to time and amends and restates in its entirety that certain Amended and Restated Demand Promissory Note dated as of September 28,
2004 given by the Borrower to Bank (the “Old Note”) which evidenced outstanding loans made by Bank up to a maximum aggregate principal amount of $30,000,000. 

	 	LAZARE KAPLAN INTERNATIONAL
    INC. 
	 	 	 

  
	 	 	 

  
	 	By:     	 

	 	 	 Name: William H. Moryto
  
	 	 	 Title: Vice President & Chief Financial Officer
  

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