Document:

Second Amendment to Second Amended and Restated Credit Agreement

 Exhibit 10.1 
 EXECUTION COPY 
  
  

 
 SECOND AMENDMENT TO

 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 

Dated as of February 22, 2012 
 among 
 ENNIS, INC. 

as the Parent, 

EACH OF THE OTHER CO-BORROWERS PARTY HERETO, 
 BANK OF AMERICA, N.A., 
 as Administrative Agent, Swing Line Lender

 and 

L/C Issuer, 

REGIONS BANK, 
 as Syndication Agent, 
 COMERICA BANK, 

as Documentation Agent, 
 and 
 The Other Lenders Party Hereto 

 
  

 

 SECOND AMENDMENT TO 
 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
 THIS SECOND AMENDMENT TO SECOND
AMENDED AND RESTATED CREDIT AGREEMENT (this “Second Amendment”), dated as of February 22, 2012, is entered into among ENNIS, INC., a Texas corporation (the “Parent”), each of the other parties listed under the
heading “Co-Borrowers” on the signature pages hereto (individually with the Parent referred to herein as a “Co-Borrower” and collectively with the Parent, called the “Co-Borrowers”), the lenders listed on
the signature pages hereto (the “Lenders”), and BANK OF AMERICA, N.A., as administrative agent for the Lenders (the “Administrative Agent”). 
 BACKGROUND 
 A. The Co-Borrowers, certain of the Lenders and the Administrative
Agent are parties to that certain Second Amended and Restated Credit Agreement, dated as of August 18, 2009, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement, dated as of August 16, 2011 (said
Credit Agreement, as amended, the “Credit Agreement”). The terms defined in the Credit Agreement and not otherwise defined herein shall be used herein as defined in the Credit Agreement. 

B. The Borrower has requested certain amendments to the Credit Agreement. 

C. The Lenders and the Administrative Agent hereby agree to amend the Credit Agreement, subject to the terms and conditions set forth
herein. 
 NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereafter set forth, and for other good
and valuable consideration, the receipt and adequacy of which are all hereby acknowledged, the Co-Borrowers, the Lenders and the Administrative Agent covenant and agree as follows: 

 

	 	1.	AMENDMENT. 

 (a)
Section 1.01 of the Credit Agreement is hereby amended by adding the following defined terms thereto in proper alphabetical order: 
 “Second Amendment” means that certain Second Amendment to Second Amended and Restated Credit Agreement, dated as of February 21, 2012, among the Co-Borrowers, the Lenders and the
Administrative Agent. 
 “Second Amendment Effective Date” means the date that all conditions
to the effectiveness of the Second Amendment are satisfied. 
 (b) The definition of “Applicable Rate” set
forth in Section 1.01 of the Credit Agreement is hereby amended to read as follows: 

 “Applicable Rate” means the following percentages per
annum, based upon the Total Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a): 
 Applicable Rate 
  

									
	 Pricing
  Level
	  	Total Leverage Ratio	 	Commitment
Fee	 	Eurodollar
Rate
Letters
of
Credit	 	Base Rate
	     1
	  	£
0.50:1	 	0.20%	 	1.00%	 	0.00%
	     2
	  	> 0.50:1 but £ 1.00:1	 	0.20%	 	1.25%	 	0.00%
	     3
	  	> 1.00:1 but £ 1.50:1	 	0.25%	 	1.50%	 	0.00%
	     4
	  	> 1.50:1 but £ 2.00:1	 	0.25%	 	1.75%	 	0.25%
	     5
	  	> 2.00:1 but £ 2.50:1	 	0.30%	 	2.00%	 	0.25%
	     6
	  	> 2.50:1	 	0.30%	 	2.25%	 	0.50%

 Any increase or decrease in the Applicable Rate resulting from a change in the Total
Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(a); provided, however, that if a Compliance Certificate is not
delivered when due in accordance with such Section, then, upon the request of the Required Lenders and after three days notice to the Co-Borrowers, Pricing Level 6 shall apply as of the first Business Day after the date on which such Compliance
Certificate was required to have been delivered and shall remain in effect until the date on which such Compliance Certificate is delivered. The Applicable Rate in effect from the Second Amendment Effective Date through the date that the Compliance
Certificate for the Fiscal Year ending February 29, 2012 is delivered pursuant to Section 6.02(a) shall be determined based upon Pricing Level 3. 

Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate for any
period shall be subject to the provisions of Section 2.10(b). 
 (c) The definition of “Base Rate”
set forth in Section 1.01 of the Credit Agreement is hereby amended to read as follows: 

“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal
Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate” and (c) the Eurodollar Rate plus 1.75%. The “prime
rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in the 

  
 2 

 
Federal Funds Rate, the Prime Rate or the Eurodollar Rate shall be effective from and including the effective date of such change in the Federal Funds Rate, the Prime Rate or the Eurodollar Rate,
respectively. 
 (d) The definition of “Maturity Date” set forth in Section 1.01 of the Credit
Agreement is hereby amended to read as follows: 
 “Maturity Date” means August 18, 2016;
provided, however, that if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day. 
 (e) Section 1.03(b) of the Credit Agreement is hereby amended by adding the following sentence to the end thereof: 

For purposes of determining compliance with any provision of this Agreement, the determination of whether a lease is to be
treated as an operating lease or a capital lease shall be made without giving effect to any change in accounting for leases pursuant to GAAP resulting from the implementation of proposed Accounting Standards Update (ASU) Leases (Topic 840)
issued August 17, 2010, or any successor proposal. 
 (f) Section 7.01 of the Credit Agreement is hereby
amended to read as follows: 
 7.01 Debt. Create, incur, assume or suffer to exist any Debt, except:

 (a) Obligations under this Agreement and the other Loan Documents; 

(b) Debt secured by Liens permitted by Sections 7.02(d), 7.02(h) and 7.02(j), and extensions,
renewals and refinancings thereof; provided that the aggregate amount of all such Debt at any time outstanding shall not exceed $25,000,000; 
 (c) Debt of a Co-Borrower to any domestic Wholly-Owned Subsidiary or Debt of any Wholly-Owned Subsidiary to a Co-Borrower or to a domestic Wholly-Owned Subsidiary; provided that such Debt shall be
evidenced by a demand note in form and substance reasonably satisfactory to the Administrative Agent and pledged and delivered to the Administrative Agent pursuant to the Collateral Documents as additional collateral security for the Obligations,
and the obligations under such demand note shall be subordinated to the Obligations of the Co-Borrowers hereunder in a manner reasonably satisfactory to the Administrative Agent; 

(d) Subordinated Debt; 
 (e) Hedging Obligations approved by Administrative Agent and incurred in favor of a Lender or an Affiliate thereof for bona fide hedging purposes and not for speculation; 

(f) Debt described on Schedule 7.01 and any extension, renewal or refinancing thereof so long as the principal
amount thereof is not increased; 

  
 3 

 (g) Debt in respect of secured obligations pursuant to one or more Factoring
Facilities, not to exceed $30,000,000 in the aggregate amount at any one time outstanding; 
 (h) Debt assumed in
connection with Acquisitions permitted under Section 7.05 not to exceed $15,000,000 at any time outstanding; 
 (i) Debt consisting of seller financing incurred in connection with Acquisitions permitted under Section 7.05 not to exceed $15,000,000 at any time outstanding; 

(j) Debt incurred by a Co-Borrower or any Subsidiaries arising from agreements providing for indemnification, adjustment
of purchase price, earn-outs or similar obligations, or from guaranties or letters of credit, surety bonds or performance bonds securing the performance of such Co-Borrower or any such Subsidiary pursuant to such agreements; 

(k) guaranties by any Co-Borrower or any Subsidiary of Debt of any other Co-Borrower or any Subsidiary with respect to, in
each case, Debt otherwise permitted to be incurred pursuant to this Section 7.01; and 
 (l) so long
as there exists no Default before and immediately after giving effect to the incurrence of any such Debt, other unsecured Debt, in addition to the Debt listed above, in an aggregate outstanding amount not at any time exceeding $25,000,000.

 (g) Section 7.03 of the Credit Agreement is hereby amended to read as follows: 

7.03 Restricted Payments. (a) Unless both before and after giving effect thereto no Default or Event of
Default would result therefrom (determined, in the case of the financial covenants under Section 7.13, as if such distribution had been made on the last day of the then-ending or most recently ended fiscal quarter of the Parent), make
any distribution to any holder of its Capital Securities, (b) unless both before and after giving effect thereto no Default or Event of Default would result therefrom (determined, in the case of the financial covenants under
Section 7.13, as if such purchase or redemption had been made on the last day of the then-ending or most recently ended Fiscal Quarter of the Parent) purchase or redeem any of its Capital Securities (excluding the repurchase of Capital
Securities pursuant to and in accordance with the provisions of any existing employee stock option or benefit plan) in an aggregate amount in excess of $10,000,000 during any Fiscal Year; provided, however, any portion of such
$10,000,000 amount not purchased or redeemed in any Fiscal Year, may be carried over for purchase or redemption in successive Fiscal Years, provided in no event shall such purchases or redemptions exceed $20,000,000 in aggregate amount during
any Fiscal Year, (c) pay any management fees or similar fees to any of its equityholders or any Affiliate thereof (but excluding compensation paid to employees who are holders of its Capital Securities which compensation is reasonable and
customary or has been approved by the Compensation Committee of the Board of Directors of the Parent), (d) make any 

  
 4 

 
redemption, prepayment, defeasance, repurchase or any other payment (subject to the immediately following sentence) in respect of any Subordinated Debt or (e) set aside funds for any of the
foregoing. Notwithstanding the foregoing, (i) any Subsidiary may pay dividends or make other distributions to a Co-Borrower or to a domestic Wholly-Owned Subsidiary; and (ii) the Co-Borrowers may make regularly scheduled payments in
respect of Subordinated Debt to the extent permitted under the subordination provisions thereof. 
 (h)
Section 7.04(c)(iv) of the Credit Agreement is hereby amended to read as follows: 
 (iv) any
Acquisition by a Co-Borrower or any domestic Wholly-Owned Subsidiary where: 
 (A) the business or division
acquired are for use, or the Person acquired is engaged, in businesses permitted by Section 7.09 hereof; 
 (B) immediately before and after giving effect to such Acquisition, no Default or Event of Default shall exist; 
 (C) (i) the entire consideration to be paid by such Co-Borrower or such Subsidiary is comprised of common stock issued by the Parent or (ii) the aggregate consideration to be paid by such
Co-Borrower or such Subsidiary (including any Debt assumed or issued in connection therewith, the amount thereof to be calculated in accordance with GAAP, but not including any common stock issued by the Parent as part of the consideration thereof,
for which the limitations set forth in this Section 7.04(iv)(C) shall not apply) in connection with such Acquisition (or any series of related Acquisitions) is less than $25,000,000; 

(D) immediately after giving effect to such Acquisition, the Co-Borrowers is in pro forma compliance with all the
financial ratios and restrictions set forth in Section 7.13; 
 (E) in the case of the Acquisition
of any Person, the Board of Directors or similar governing body of such Person has approved such Acquisition; 

(F) within sixty (60) days following the consummation of such Acquisition, the Administrative Agent shall have
received complete execution or conformed copies of each material document, instrument and agreement to be executed in connection with such Acquisition together with all lien search reports and, except in connection with Liens which continue pursuant
to applicable exceptions set forth in clauses (a) through (i) of Section 7.02 lien release letters and other documents as the Administrative Agent may require to evidence the termination of Liens on the assets or business
acquired or to be acquired; 
 (G) within sixty (60) days following the consummation of such Acquisition,
the Administrative Agent shall have received an acquisition summary with respect to the Person and/or business or division acquired or to be acquired, such summary to include a reasonably detailed description thereof

  
 5 

 
(including financial information) and operating results (including financial statements for the most recent 12-month period for which they are available and as otherwise available), the terms and
conditions, including economic terms, of the proposed Acquisition, and the Co-Borrowers’ calculation of pro forma EBITDA relating thereto; 
 (H) within sixty (60) days following the consummation of such Acquisition if required by the Administrative Agent, (1) opinions of counsel for the Co-Borrowers in favor of the
Administrative Agent and the Lenders as to the enforceability of such collateral assignment of rights and indemnities under the related Acquisition documents, and (2) to the extent an opinion of counsel to the selling party is delivered in
connection with such Acquisition, permission for the Administrative Agent and the Lenders to rely on such opinion; and 
 (I) the provisions of Section 6.09 have been satisfied and, to the extent a Foreign Subsidiary is acquired or created by such Acquisition, the Co-Borrowers Investment in such Foreign
Subsidiary is permitted by Section 7.10(h). 
 (i) Section 7.10(j) of the Credit
Agreement is hereby amended to read as follows: 
 (j) Investments not otherwise permitted pursuant to clauses
(a) through (i) above, not to exceed $3,500,000 in aggregate amount outstanding at any time. 
 (j)
Section 8.01(b) of the Credit Agreement is hereby amended to read as follows: 
 (b) Non-Payment
of Other Debt. Any default, event or condition shall occur under the terms applicable to any Debt of any Co-Borrower or any Subsidiary in an aggregate amount (for all such Debt so affected and including undrawn committed or available amounts and
amounts owing to all creditors under any combined or syndicated credit arrangement) exceeding $1,000,000 and such default, event or condition shall (a) continue beyond any applicable notice and cure periods, (b) consist of the failure to
pay such Debt when due, whether by acceleration or otherwise, or (c) result in the acceleration of the maturity of such Debt or permit the holder or holders thereof, or any trustee or agent for such holder or holders, to cause such Debt to
become due and payable (or require any Co-Borrower or Subsidiary to purchase or redeem such Debt or post cash collateral in respect thereof) prior to its expressed maturity; or 

(k) Section 8.01(i) of the Credit Agreement is hereby amended to read as follows: 

(i) Judgments. Final judgments which exceed an aggregate of $5,000,000 shall be rendered against any Co-Borrower or
any Subsidiary and shall not have been paid, discharged or vacated or had execution thereof stayed pending appeal within 30 days after entry or filing of such judgments; or 

(l) Exhibit D, the Compliance Certificate, is hereby amended to be in the form of Exhibit D
attached to this Second Amendment. 

  
 6 

 2. REPRESENTATIONS AND WARRANTIES TRUE; NO EVENT OF DEFAULT. By its execution and
delivery hereof, each of the Co-Borrowers represents and warrants that, as of the date hereof: 
 (a) the representations and
warranties contained in the Credit Agreement and the other Loan Documents are true and correct on and as of the date hereof as if made on and as of such date, except to the extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct as of such earlier date; 
 (b) no event has occurred and is
continuing which constitutes a Default or an Event of Default; 
 (c) (i) each of the Co-Borrowers has full power and
authority to execute and deliver this Second Amendment, (ii) this Second Amendment has been duly executed and delivered by each of the Co-Borrowers, and (iii) this Second Amendment and the Credit Agreement, as amended hereby, constitute
the legal, valid and binding obligations of each of the Co-Borrowers, enforceable in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency and similar laws affecting the enforceability
of creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law) and except as rights to indemnity may be limited by federal or state securities laws;

 (d) neither the execution, delivery and performance of this Second Amendment or the Credit Agreement, as amended hereby, nor
the consummation of any transactions contemplated herein or therein, will conflict with any law, rule or regulation or any charter, by-laws or other organizational documents of any of the Co-Borrowers, or any indenture, agreement or other instrument
to which any of the Co-Borrowers or any of their properties are subject; and 
 (e) no authorization, approval, consent, or other
action by, notice to, or filing with, any governmental authority or other Person not previously obtained is required for the execution, delivery or performance by each of the Co-Borrowers of this Second Amendment. 

3. CONDITIONS TO EFFECTIVENESS. This Second Amendment shall be effective upon satisfaction or completion of the following:

 (a) the Administrative Agent shall have received counterparts of this Second Amendment executed by the Required Lenders;

 (b) the Administrative Agent shall have received counterparts of this Second Amendment executed by each of the Co-Borrowers;

 (c) the Administrative Agent shall have received from the Parent in immediately available funds for the account of each Lender
the fees agreed to be paid by the Co-Borrowers in connection with this Second Amendment; 
 (d) the Administrative Agent shall
have received, in form and substance satisfactory to the Administrative Agent and its counsel, certified copies of the resolutions or consents of the Board of Directors (or other governing body) of the Co-Borrowers authorizing the execution,
delivery and performance of this Second Amendment; and 

  
 7 

 (e) the Administrative Agent shall have received, in form and substance satisfactory to the
Administrative Agent and its counsel, such other documents, certificates and instruments as the Administrative Agent shall require. 
 4. REFERENCE TO THE CREDIT AGREEMENT. 
 (a) Upon the effectiveness of this
Second Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, or words of like import shall mean and be a reference to the Credit Agreement, as affected and amended hereby. 

(b) The Credit Agreement, as amended by the amendment referred to above, shall remain in full force and effect and is hereby ratified and
confirmed. 
 5. COSTS, EXPENSES AND TAXES. The Company agrees to pay on demand all costs and expenses of the
Administrative Agent in connection with the preparation, reproduction, execution and delivery of this Second Amendment and the other instruments and documents to be delivered hereunder (including the reasonable fees and out-of-pocket expenses of
counsel for the Administrative Agent with respect thereto). 
 6. EXECUTION IN COUNTERPARTS. This Second Amendment may be
executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the
same instrument. For purposes of this Second Amendment, a counterpart hereof (or signature page thereto) signed and transmitted by any Person party hereto to the Administrative Agent (or its counsel) by facsimile machine, telecopier or electronic
mail is to be treated as an original. The signature of such Person thereon, for purposes hereof, is to be considered as an original signature, and the counterpart (or signature page thereto) so transmitted is to be considered to have the same
binding effect as an original signature on an original document. 
 7. GOVERNING LAW; BINDING EFFECT. This Second
Amendment shall be governed by and construed in accordance with the internal laws of the State of Texas applicable to agreements made and to be performed entirely within such state without regard to conflict of laws principle, and shall be binding
upon the Lenders and the parties hereto and their respective successors and assigns. 
 8. HEADINGS. Section headings in
this Second Amendment are included herein for convenience of reference only and shall not constitute a part of this Second Amendment for any other purpose. 
 9. ENTIRE AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED BY THIS SECOND AMENDMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT 

  
 8 

 
ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
 REMAINDER OF PAGE LEFT INTENTIONALLY BLANK 

  
 9 

 The parties hereto have caused this Second Amendment to be duly executed and delivered by
their duly authorized officers as of the date first set forth above. 
  

			
	CO-BORROWERS:
	
	Ennis, Inc.
		
	By:	 	/s/ Richard L. Travis, Jr.
		 	 Richard L. Travis, Jr. Vice President and
 Chief Financial Officer

	
	 Ennis Business Forms of Kansas, Inc.
 Connolly Tool and Machine Company
 Admore, Inc.

PFC Products, Inc.
 Ennis Acquisitions,
Inc.
 Northstar Computer Forms, Inc.

General Financial Supply, Inc.
 Calibrated Forms
Co. Inc.
 Crabar/GBF, Inc.
 Royal
Business Forms Inc.
 Alstyle Apparel LLC

A and G, Inc.
 Alstyle Ensenada LLC

Alstyle Hermosilla LLC
 Diaco USA, LLC

Tennessee Business Forms Company
 TBF Realty,
LLC
 Block Graphics, Inc.
 Specialized
Printed Forms, Inc.
 B&D Litho of Arizona, Inc.
 Skyline Business Forms, Inc.
 Skyline Business Properties LLC

SPF Realty, LLC
 Printgraphics,
LLC

		
	By:	 	/s/ Richard L. Travis, Jr.
		 	Richard L. Travis, Jr. Vice President of each

  
 Second Amendment to Second
Amended and Restated Credit Agreement – Signature Page 

  

			
	 American Forms I, L.P.
 Adams McClure I, L.P.
 Texas EBF, L.P.
 Ennis Sales, L.P.
 Ennis Management, L.P.

		
	By:	 	Ennis, Inc., the sole general partner of each
		
	By:	 	/s/ Richard L. Travis, Jr.
		 	 Richard L. Travis, Jr. Vice President and
 Chief Financial Officer

  
 Second Amendment to Second
Amended and Restated Credit Agreement – Signature Page 

  

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	/s/ Anthony W. Kell
	Title:	 	AVP

  
 Second Amendment to Second
Amended and Restated Credit Agreement – Signature Page 

  

			
	 BANK OF AMERICA, N.A., as a Lender, as L/C
 Issuer and as Swing Line Lender

		
	By:	 	 /s/ Jennifer Yan

	Title:	 	SVP

  
 Second Amendment to Second
Amended and Restated Credit Agreement – Signature Page 

  

			
	COMERICA BANK, as a Lender
		
	By:	 	/s/ Kelly Cowherd
	Title:	 	VP

  
 Second Amendment to Second
Amended and Restated Credit Agreement – Signature Page 

  

			
	REGIONS BANK, as Syndication Agent and a Lender
		
	By:	 	/s/ Rick Prewitt
	Title:	 	VP

  
 Second Amendment to Second
Amended and Restated Credit Agreement – Signature Page 

  

			
	 BRANCH BANKING AND TRUST COMPANY,
 as a Lender

		
	By:	 	/s/ Allen K. King
	Title:	 	SVP

  
 Second Amendment to Second
Amended and Restated Credit Agreement – Signature Page 

 EXHIBIT D 

FORM OF COMPLIANCE CERTIFICATE 
 Financial Statement Date:                    ,        

  

	To:	Bank of America, N.A., as Administrative Agent 

Ladies and Gentlemen: 

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of August 18, 2009 (as amended, restated,
extended, supplemented or otherwise modified in writing from time to time, the “Agreement”; the terms defined therein being used herein as therein defined), among Ennis, Inc., a Texas corporation (the “Parent”), the
other Co-Borrowers, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender. 
 The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                    of the Parent, and that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent on the
behalf of the Parent and each other Co-Borrower, and that: 
 [Use following paragraph 1 for fiscal
year-end financial statements] 
 1. The Co-Borrowers have delivered the year-end audited financial
statements required by Section 6.01(a) of the Agreement for the fiscal year of the Parent ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section.

 [Use following paragraph 1 for fiscal quarter-end financial statements] 

1. The Company has delivered the financial statements required by Section 6.01(b) of the Agreement for the Fiscal Quarter of
the Parent ended as of the above date. Such financial statements fairly present the financial condition, results of operations and cash flows of the Parent and its Subsidiaries in accordance with GAAP as at such date and for such period, subject
only to normal year-end audit adjustments and the absence of footnotes. 
 2. The undersigned has reviewed and is familiar with
the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Parent and its Subsidiaries during the accounting period covered by such
financial statements. 
 3. A review of the activities of the Parent and its Subsidiaries during such fiscal period has been
made under the supervision of the undersigned with a view to determining whether during such fiscal period the Co-Borrowers performed and observed all their Obligations under the Loan Documents, and 

  
 D - 1

 Form of Compliance Certificate 

 [SELECT ONE:] 

[to the best knowledge of the undersigned, during such fiscal period the Co-Borrowers performed and observed each covenant and
condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.] 
 —OR—

 [to the best knowledge of the undersigned, during such fiscal period the following covenants or conditions have not
been performed or observed and the following is a list of each such Default and its nature and status:] 
 4. The
representations and warranties of the Co-Borrowers contained in Article V of the Agreement, and any representations and warranties of any Co-Borrower or Subsidiary that are contained in any document furnished at any time under or in
connection with the Loan Documents, are true and correct in all material respects (except that any representation or warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all
respects) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (except that any representation or warranty
that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) as of such earlier date, and except that for purposes of this Compliance Certificate, the representations and
warranties contained in subsections (a) and (b) of Section 5.04 of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01
of the Agreement, including the statements in connection with which this Compliance Certificate is delivered. 
 5. The
financial covenant analyses and information set forth on Schedule 1 attached hereto are true and accurate on and as of the date of this Certificate. 
 IN WITNESS WHEREOF, the undersigned has executed this Certificate as of                    
,         . 
  

			
	ENNIS, INC.
		
	By:	 	 
		
	Name:	 	  

		
	Title:	 	  

  
 D - 2

 Form of Compliance Certificate 

 SCHEDULE 1 
 to the Compliance Certificate 
 ($ in 000’s) 

For the Quarter/Year
ended                                        
        (“Statement Date”) 
  

							
	 I.
	  	Section 7.01(b) – Indebtedness.	  			
			
		  	 A. Debt secured by Liens permitted by Sections 7.02(d), 7.02(h) and 7.02(j):
	  	$	 	  
			
		  	 B. Maximum aggregate amount at any time outstanding:
	  	$	25,000,000	  
			
	 II.
	  	Section 7.01(g) – Indebtedness.	  			
			
		  	 A. Amount of secured obligations outstanding under and pursuant to one or more Factoring Facilities
	  	$	 	  
			
		  	 B. Maximum aggregate amount at any one time outstanding:
	  	$	30,000,000	  
			
	 III.
	  	Section 7.01(h) – Indebtedness.	  			
			
		  	 A. Debt assumed in connection with Acquisitions permitted under Section 7.05:
	  	$	 	  
			
		  	 B. Maximum amount at any time outstanding:
	  	$	15,000,000	  
			
	 IV.
	  	Section 7.01(i) – Indebtedness.	  			
			
		  	 A. Debt consisting of seller financing incurred in connection with Acquisitions permitted under Section
7.05
	  	$	 	  
			
		  	 B. Maximum amount at any time outstanding:
	  	$	15,000,000	  
			
	 V.
	  	Section 7.01(l) – Indebtedness.	  			
			
		  	 A. Unsecured Debt, other than Debt otherwise permitted under Section 7.01:
	  	$	 	  
			
		  	 B. Maximum amount at any date outstanding:
	  	$	25,000,000	  
			
	 VI.
	  	Section 7.10(j) – Investments.	  			
			
		  	 A. Aggregate amount of Investments made by a Co-Borrower or a Subsidiary not otherwise permitted pursuant to clauses (a)
through (i) of Section 7.10:
	  	$	 	  
			
		  	 B. Maximum aggregate amount at any one time outstanding:
	  	$	3,500,000	  
			
	 VII.
	  	Section 7.13(a) – Fixed Charge Coverage Ratio.	  			
			
		  	 A. EBITDA for the period of four consecutive Fiscal Quarters ending on the Statement Date:
	  			
			
		  	    1. Consolidated Net Income:	  	$	 	  
			
		  	    2. Without duplication and to the extent deducted in calculating such Consolidated Net Income:	  			

  
 D - 3

 Form of Compliance Certificate 

  

									
		  		  	 a.      Interest Expense
	  	$	                    	  
				
		  		  	 b.      income tax expense
	  	$	 	  
				
		  		  	 c.      depreciation and amortization
	  	$	 	  
				
		  		  	 d.      non-cash charges related to the impairment of goodwill and other
intangibles
	  	$	 	  
				
		  		  	 e.      transaction expenses incurred in such period in connection with the transactions
contemplated by the Credit Agreement and the other Loan Documents (not to exceed $1,000,000 in aggregate amount for all periods)
	  	$	 	  
				
		  		  	 f.       any non-cash items of income
	  	$	 	  
				
		  	3.	  	Total EBITDA (Lines VII.A.1. + 2.a. + 2.b. + 2.c. + 2.d. + 2.e. – 2.f.)	  	$	 	  
				
		  	4.	  	Income taxes paid in cash by the Parent and its Subsidiaries	  	$	 	  
				
		  	5.	  	Unfinanced Capital Expenditures (excluding Capital Expenditures related to the Mexican Expansion in an aggregate amount not to exceed $45,000,000)	  	$	 	  
				
		  	6.	  	Total (Line 3 – [Line 4 + 5])	  	$	 	  
			
	 B.
	  	Cash Interest Expense	  	$	 	  
			
	 C.
	  	Required payments of principal of Funded Debt (excluding the Revolving Loans, Hedging Obligations and contingent obligations in respect of letters of
credit)	  	$	 	  
			
	 D.
	  	Amount equal to the advances, dividends and distributions (other than non-cash distributions of equity securities of the Parent and distributions on equity securities
of the Parent to the extent included in the calculation of Consolidated Net Income), and redemptions and repurchases of equity securities of the Parent (to the extent otherwise permitted herein) made by the Parent to holders of its Capital
Securities	  	$	 	  
			
	 E.
	  	Fixed Charge Coverage Ratio (Line 6 ÷ [Line B + C + D])	  	 	to 1.00	  
			
	 F.
	  	Maximum Fixed Charge Ratio:	  	 	1.25 to 1.00	  

  
 D - 4

 Form of Compliance Certificate 

  

											
	 VIII.
	  	Section 7.13(b) – Total Leverage Ratio.	  			
				
		  	 A.
	  	Total Funded Debt as of the Statement Date:	  			
					
		  		  	1.	  	All Debt of the Parent and its Subsidiaries, determined on a consolidated basis, excluding:	  	$	 	  
					
		  		  		  	 a.      Contingent obligations in respect of Contingent Liabilities (except to the extent
constituting Contingent Liabilities in respect of Debt of a Person other than any Co-Borrower or any Subsidiary):
	  	$	 	  
					
		  		  		  	 b.      Hedging Obligations:
	  	$	 	  
					
		  		  		  	 c.      Debt of a Co-Borrower to Subsidiaries and Debt of Subsidiaries to a Co-Borrower or to
other Subsidiaries:
	  	$	 	  
					
		  		  	2.	  	Total Funded Debt (Lines VIII.A.1. – 1.a. – 1.b. – 1.c.):	  	$	 	  
				
		  	 B.
	  	EBITDA for the period of four consecutive Fiscal Quarters ending on such date (Line VII.A.3.):	  			
				
		  	 C.
	  	Leverage Ratio (Line VIII.A.2 ÷ Line VIII.B.):	  	 	to 1.00	  
				
		  	 D.
	  	Maximum Leverage Ratio:	  	 	3.00 to 1.00	  
			
	 IX.
	  	Section 7.13(c) – Consolidated Tangible Net Worth.	  			
				
		  	 A.
	  	Actual Consolidated Tangible Net Worth at the Statement Date:	  			
					
		  		  	1.	  	Total amount of all consolidated assets that, in accordance with GAAP, are properly shown as such on the consolidated balance sheet of the Parent and Subsidiaries as at the end
of such Fiscal Quarter, prepared in accordance with GAAP (with Inventory being valued at the lower of cost or market value), after deducting all proper reserves (including reserves for depreciation and amortization):	  	$	 	  
					
		  		  	2.	  	Total amount of all consolidated liabilities of the Parent and its Subsidiaries that, in accordance with GAAP, are properly shown as such on such balance sheet:	  	$	 	  
					
		  		  	3.	  	Total amount of all assets of the Parent and its Subsidiaries that are considered to be intangible assets (including goodwill) in accordance with GAAP:	  	$	 	  
					
		  		  	4.	  	Consolidated Tangible Net Worth (Lines IX.A.1. - IX.A.2 - IX.A.3):	  	$	 	  

  
 D - 5

 Form of Compliance Certificate 

  

											
		  	 	B.	  	  	25% of Consolidated Net Income as of the most recently ended Fiscal Quarter (commencing with the Fiscal Quarter ending August 31, 2009) (Line VII.A.1 x 25%):	  	$	  	  
				
		  	 	C.	  	  	Minimum Required (Line IX.B. + $90,000,000)	  	$	  	  
			
	X.	  	 	Section 7.13(d) – Consolidated Assets Owned by Foreign Subsidiaries.	  			
				
		  	 	A.	  	  	Amount of consolidated assets that, in accordance with GAAP, are properly shown as such on the consolidated balance sheet of the Parent and its Subsidiaries, as owned by Foreign
Subsidiaries:	  	$	  	  
				
		  	 	B.	  	  	Total amount of consolidated assets of the Parent and its Subsidiaries:	  	$	  	  
				
		  	 	C.	  	  	Line X.A. ÷ Line X.B:	  	 	  	% 
				
		  	 	D.	  	  	Maximum:	  	 	30	% 

  
 D - 6

 Form of Compliance CertificateEX-10.5.1

 EXHIBIT 10.5.1 
 2010 Form of Long Term Incentive Plan Award Agreement 
 This Award
Agreement (this “Agreement”) governs the Stock Option Award, the Restricted Stock Unit Award, and/or the Performance Share Unit Award identified below (each, an “Award, and collectively, the “Awards”) granted by GrafTech
International Ltd. (“GrafTech”) on December 9, 2010 (the “Grant Date”) to
                                     (the
“Participant”) under the 2005 Equity Incentive Plan, as amended (the “Plan”), which is incorporated herein and made a part hereof. Terms not defined in this Agreement shall have the same meanings as in the Plan. 

ARTICLE I – GRANT OF STOCK OPTION AWARD 
  

			
	 Exercise Price
	  	$per share
		
	Option Award	  	The option to purchase                         
shares of Common Stock conditioned upon vesting (the “Options”).

 1.1 Option granted. Participant is hereby granted the Option Award set forth above. The Options are Nonqualified
Stock Options. 
 1.2 Time Vesting. To the extent not sooner vested or forfeited, one-third of the Options shall vest annually on each of
the first three anniversaries of the Grant Date. 
 1.3 Exercise of Option Award. The Options may be exercised only by Participant or, in
the event of Participant’s death or Disability, Participant’s estate or legal representative, as applicable. Payment of the Exercise Price shall be made in cash (including check, bank draft or money order) or, with the Compensation
Committee’s consent, delivery of Common Stock with a fair market value equal to the aggregate Exercise Price of the Options being exercised. Participant may exercise the Options pursuant to such cashless or other exercise procedures as may be
adopted by GrafTech and in effect at the time of the exercise of the Options. 
 1.4 Expiration. Vested and unvested Options shall expire
on the earlier of (i) the applicable date set forth in Section 5.2 or (ii) 5:00 p.m., Eastern Time, on December 9, 2020. 
 ARTICLE II – GRANT OF RESTRICTED STOCK UNIT AWARD 
  

			
	Restricted Stock Unit
Award	  	The right to receive                         
shares of Common Stock conditioned
upon vesting (the “Restricted Stock Units”).

 2.1 Grant of Restricted Stock
Units. GrafTech hereby grants Participant the Restricted Stock Unit Award set forth above. 
 2.2 Time Vesting. To the extent not
sooner vested or forfeited, one-third of the Restricted Stock Units shall vest annually on each of the first three anniversaries of the Grant Date. 

  
 1 

 ARTICLE III – GRANT OF PERFORMANCE SHARE UNIT AWARD 

 

			
	 Performance Share Unit
 Award
	  	 The right to receive
                     Performance Share Units
 (the “Target Award”) to the extent and upon
 achievement of the Performance Measures
during the
Performance Period and conditioned upon vesting.

 3.1 Grant of Performance Share Units. GrafTech hereby
grants Participant the Performance Share Unit Award set forth above. The Award is subject to the adjustments, restrictions, and conditions set forth in this Agreement. 
 3.2 Performance Measures. 
 (i) Revenue Growth. As to 40% of the Target Award,
the Performance Measure shall be revenue growth measured against a base amount of revenue for the year ended December 31, 2010 (or equivalent for non-calendar year companies). 
 (ii) EBIT Growth. As to 60% of the Target Award, the Performance Measure shall be earnings before interest and taxes (“EBIT”) growth measured against a base amount of EBIT for
the year ended December 31, 2010 (or equivalent for non-calendar year companies). 
 3.3 Performance Period. The
“Performance Period” means the three year period beginning January 1, 2011 and ending December 31, 2013. 
 3.4.
Adjustments to Target Award. 
 (i) Earned Shares. The Target Award shall become earned, and the number of Performance Share
Units actually covered by the Target Award shall become fixed, when the Compensation Committee certifies that the Performance Measures have been achieved during the Performance Period. The number of such Performance Share Units shall be fixed in
accordance with Section 3.4(iii) based on the degree (as determined by the Compensation Committee in its sole discretion) to which the Performance Measures are achieved during the Performance Period. Such Perfomance Share Units are referred to
as “Earned Shares”. The Compensation Committee shall have the authority to exercise its discretion to reduce or increase the level of deemed achievement of the Performance Measures; provided, that, in respect of any Performance Share Unit
Award granted to any Participant who is, or is determined by the Compensation Committee to be likely to become, a “covered employee” within the meaning of Section 162(m) of the Code (or any successor provision), only “negative
discretion” (as such term is used in Treasury Regulation section 1.162-27(e)(2)(iii) or any successor provision) may be exercised if such adjustment would result in the loss of an otherwise available deduction. 

(ii) Performance levels. 
 (a) “Threshold Performance” is achievement at the 35th percentile of the Performance Measures compared to the Peer Group and represents the level of performance below which the number of Performance Share Units actually covered by the Target Award shall be
adjusted downward to zero. 

  
 2 

 (b) “Target Performance” is achievement at the 50th percentile of the Performance Measures compared to the Peer Group.

 (c) “Maximum Performance” is achievement at the 75th percentile of the Performance Measures compared to the Peer Group
and represents the maximum possible upward adjustment to the number of Performance Share Units actually covered by the Target Award. 

(iii) Adjustments. 
 (a) Adjustments to the Target Award shall be computed by reference to the following table: 
  

									
	  	  	 Revenue Growth
Performance

Measure
	  	 Percentages in this column
Apply to

40% of the
 Target Award*
	  	 EBIT Growth

Performance

Measure
	  	 Percentages in this column
Apply to

60% of the
 Target Award*

	 Level Achieved
 During
 Performance

Period
 (1)
	  	 Rank in Peer

Group for
 Revenue
Growth
 for Performance
 Period
 (2)
	  	 Resulting

Performance
 Share
Units
 Earned
 (3)
	  	 Rank in Peer

Group for EBIT

Growth for

Performance

Period

(4)
	  	 Resulting

Performance
 Share
Units
 Earned
 (5)

	 Threshold

Performance
	  	35th Percentile	  	50%	  	35th Percentile	  	50%
	 Target

Performance
	  	50th Percentile	  	100%	  	50th Percentile	  	100%
	 Maximum

Performance
	  	75th Percentile	  	200%	  	75th Percentile	  	200%

  

	*	Meaning 40% or 60%, respectively, of the number of Performance Share Units granted under the Target Award. 

(b) The total number of Earned Shares shall equal the sum of the numbers calculated under columns 3 and 5 of the table above. 

(c) As to each Performance Measure: 
 (I) if GrafTech’s actual performance for the Performance Period is below the Threshold Performance, the number of Earned Shares shall be zero; 

(II) if GrafTech’s actual performance for the Performance Period is between Threshold Performance and Target
Performance, the number of Earned Shares shall be interpolated on a straight-line basis between Threshold Performance and Target Performance amounts; 
 (III) if GrafTech’s actual performance for the Performance Period is between Target Performance and Maximum Performance, the number of Earned Shares shall be interpolated on a straight-line basis
between Target Performance and Maximum Performance amounts; 

  
 3 

 (IV) if GrafTech’s actual performance for the Performance Period is
above the Maximum Performance, the number of Earned Shares shall be 200% of the number of Performance Share Units granted under the Target Award. 
 3.5 Vesting and Forfeiture. To the extent not sooner vested or forfeited, Earned Shares shall vest on March 31, 2014. Any and all Performance Share Units that are not Earned Shares as of
March 31, 2014 shall not vest and shall be forfeited. 
 3.6 Peer Group. “Peer Group” means a group of companies approved
by the Compensation Committee that includes organizations of comparable size, revenue, assets, employees, market capitalization, complexity, business focus and geographical scope as the Company. As of the Grant Date, the Peer Group includes 31
companies in the steel, machinery, and electrical equipment industries having annual revenues ranging from $500 million to $2.5 billion. The Compensation Committee may in its sole discretion make changes to the companies that comprise the Peer Group
as a result of significant changes (such as mergers, acquisitions, reorganizations or other factors) that materially impact the comparability of individual companies. 
 ARTICLE IV – FORFEITURE AND RESTRICTED ACTIVITIES 
 4.1 Forfeiture Events. 

 (i) Participant’s rights, payments, gains and benefits with respect to an Award shall be subject to, in the sole and good faith judgment
of the Compensation Committee or the Board, reduction, cancellation, forfeiture or recoupment upon termination of employment for cause, violation of material policies, breach of noncompetition, confidentiality or other restrictive covenants, and
engagement in Detrimental Conduct; provided, that any change to the terms of the Awards shall be effected in a way that causes the Awards to be excluded from the application of, or to comply with, Section 409A of the Code. 

(ii) In addition, in the event that GrafTech is required to prepare an accounting restatement due to material noncompliance of GrafTech with any
financial reporting requirement under United States federal securities laws or regulations promulgated thereunder, Participant shall repay or return to GrafTech any compensation received by Participant pursuant to Awards hereunder during the 3-year
period preceding the date on which GrafTech is required to prepare such accounting restatement that is in excess of what would have been paid to Participant under the accounting restatement provided, however, that such repayment or return is in
accordance with United States federal securities laws or regulations promulgated thereunder and any applicable rules and regulations of the primary national securities exchange on which GrafTech is listed and determined to be necessary or advisable
by the Board or the Compensation Committee. Any amount to be repaid or returned hereunder shall be determined by the Board or the Compensation Committee in its sole discretion, unless otherwise required by applicable laws, and shall be binding on
Participant. To the extent that such amounts are not paid to GrafTech, GrafTech may set off, except with respect to any non-qualified deferred compensation under Section 409A of the Code, the amounts so payable to it against any amounts that
may be owing from time to time by GrafTech or a Subsidiary to Participant, whether as wages, deferred compensation or vacation pay or in the form of any other benefit or for any other reason (subject to applicable law and the terms and conditions of
applicable plans, programs or arrangements). There shall be no duplication of recovery under this Paragraph and any of Section 304 of The Sarbanes Oxley Act of 2002 and Section 10D of the Exchange Act and any rules promulgated thereunder.

  
 4 

 4.2 Restricted Activities. From the effective date of this Agreement and continuing for a period of
two (2) years following (a) voluntary termination of Participant’s employment with the Company or (b) involuntary termination of Participant’s employment with the Company for cause, violation of material policies, breach of
noncompetition, confidentiality or other restrictive covenants, or engagement in Detrimental Conduct, Participant agrees to comply with the obligations set forth on Exhibit A hereto. 

ARTICLE V – OTHER PROVISIONS 
 5.1 Change in Control.  
 (i) To the extent not sooner vested, expired, or forfeited, all
unvested Awards shall vest (and, as to Options, also become exercisable and, as to Performance Share Units, also become Earned Shares) upon the occurrence of a Change in Control; provided, that Participant must still be an employee of the Company
upon the occurrence of such Change in Control. The number of Performance Share Units that shall become Earned Shares which vest upon the occurrence of a Change in Control shall be equal to the number of Performance Share Units granted under the
Target Award. 
 (ii) In connection with any Change in Control, (a) Participant may exercise Options on a conditional basis, contingent
upon the occurrence of such Change in Control, vesting of such Options and Participant’s being an employee of the Company upon such Change in Control and (b) GrafTech may, in its sole discretion, without Participant’s consent, cancel
any Option (in whole or in part and whether or not vested) and pay Participant the excess of (I) the Fair Market Value of a Share on the date of such Change in Control, over (II) the Exercise Price, multiplied by the number of Shares subject to
the Option which is being cancelled. 
 5.2 Certain Events. 
 (i) Voluntary Termination and Termination of Employment for Cause. In the event of Participant’s voluntary termination or termination for cause or Detrimental Conduct: (i) all
unearned and/or unvested Awards shall cease to be earnable, shall cease to vest and shall be forfeited; and (ii) all vested Options that have not then been exercised shall expire, and all Earned Shares that have not then vested and been
delivered to such Participant shall be forfeited, upon the date of Participant’s termination of employment with the Company. 
 (ii)
Termination of Employment by Company Action; Retirement. In the event of termination by Company action (without cause, violation of material policies, or breach of noncompetition, confidentiality or other restrictive covenants and in
the absence of Detrimental Conduct) or by Participant’s Retirement: 
 (a) as to Option Awards: (I) all unvested
Options shall cease to vest and shall be forfeited; and (II) all vested Options shall become immediately exercisable for up to (but no longer than) 12 months following the date of such termination or Retirement (36 months, if termination is due to
mandatory retirement or retirement at any time after attaining the age of 65 with at least ten (10) years of employment with the Company), but not beyond the original term thereof (after which time they shall expire and be forfeited);

  
 5 

 (b) all unvested Restricted Stock Unit Awards shall cease to vest and shall be forfeited;

 (c) as to Performance Share Unit Awards, Participant shall be entitled to receive either (I) if no Change in Control
occurs during the Performance Period, a pro-rata portion of the number of Performance Share Units that would have become Earned Shares based on the performance for the entire Performance Period computed based on the ratio of the number of full
months Participant is an employee of the Company during the Performance Period over 36 (the total number of months in the Performance Period) or (II) if a Change in Control occurs during the Performance Period and after Participant’s
termination of employment with the Company, a pro-rata portion of the number of Performance Share Units granted under the Target Award computed based on the ratio of the number of full months Participant is an employee of the Company during the
Performance Period over 36 (the total number of months in the Performance Period), in each case, such Earned Shares to be deliverable when and as they would have been deliverable if Participant had continued to be an employee. 

(iii) Death or Disability. In the event of Participant’s death or termination (by the Company or Participant) due to Disability:

 (a) all unvested Options shall vest and become exercisable and such Options and all other vested Options granted under this
Agreement may be exercised for up to (but no longer than) 12 months following the date of death or termination, but not beyond the original term thereof (after which time they shall expire and be forfeited); 

(b) all unvested Restricted Stock Unit Awards shall vest; and 
 (c) as to Performance Share Unit Awards, Participant or, in the event of death, Participant’s successor shall be entitled to receive either (I) if no Change in Control occurs during the
Performance Period, a pro-rata portion of the number of Performance Share Units that would have become Earned Shares based on the performance for the entire Performance Period computed based on the ratio of the number of full months Participant is
an employee of the Company during the Performance Period over 36 (the total number of months in the Performance Period) or (II) if a Change in Control occurs during the Performance Period and after Participant’s death or termination of
employment with the Company, a pro-rata portion of the number of Performance Share Units granted under the Target Award computed based on the ratio of the number of full months Participant is an employee of the Company during the Performance Period
over 36 (the total number of months in the Performance Period), in each case, such Earned Shares to be deliverable when and as they would have been deliverable if Participant had continued to be an employee. 

(iv) For an illustration of these provisions under Section 5.2, see Exhibit B. 
 5.3 Recordkeeping and Delivery. 
 (i) GrafTech shall keep records of Awards granted under
this Agreement in book entry or other electronic form. GrafTech may engage the services of its transfer agent or other third parties to assist in the administration of the Plan and such Awards. 

(ii) GrafTech may establish an account for Participant with GrafTech’s transfer agent (“Participant’s Account”). Upon vesting and
exercise, Shares purchased upon exercise of Options shall be promptly (but 

  
 6 

 
in any event within 3 business days), and upon vesting, Shares represented by vested Restricted Stock Unit Awards and vested Earned Shares shall be promptly (but in any event within 30 days
following vesting), be delivered to Participant by deposit in Participant’s Account, in book entry form, by direct registration with GrafTech’s transfer agent, or by delivery of a stock certificate; provided, that, in connection with any
transaction that constitutes or would, upon occurrence, constitute a Change in Control, GrafTech shall make delivery so that Participant shall have the ability to participate therein as the owner of the Shares so to be delivered and may make such
delivery on a conditional basis and on such other terms and conditions as it may determine in its sole discretion. 
 5.4
Transferability. 
 (i) Awards shall not be Transferable except by will or by the laws of descent and distribution. 

(ii) Shares delivered to Participant pursuant to this Agreement become non-forfeitable and transferable at the time they vest; provided, that
transferability may be restricted until all withholding requirements under Section 5.5 are satisfied and such Shares shall be subject to transfer restrictions as provided in GrafTech’s insider trading and other compliance policies and
procedures. 
 5.5 Withholding Taxes. 
 (i) The Company shall withhold or deduct from any or all payments or amounts due to or held for Participant, whether due from the Company or held in Participant’s Account, an amount (the
“Withholding Amount”) equal to all taxes (including social security, unemployment, Medicare, and other governmental charges of any kind) required to be withheld or deducted with respect to any and all taxable income and other amounts
attributable to Awards (the “Withholding Requirement”). Alternatively, Participant may elect to pay the Withholding Amount in cash upon such terms and conditions as are acceptable to the Company. 

(ii) The Withholding Amount shall be determined by the Company. The timing of withholding or deduction shall be determined by the Company; provided,
however, that, if such taxes are required to be paid to a tax or other governmental authority before such withholding or deduction is made, then the Company shall pay such taxes when due as agent for Participant and shall be entitled to
reimbursement therefor from such payments or amounts, or otherwise. 
 (iii) Unless Participant has made or makes a timely election pursuant to
Section 83(b) of the Code or has paid the Withholding Amount in cash as provided above, Participant authorizes GrafTech and any broker designated by it to sell, on his or her behalf and for his or her account, such number of Shares otherwise
deliverable pursuant to an Award as GrafTech or the broker may deem appropriate to satisfy each Withholding Requirement or to reimburse the Company in respect thereof, so that the net proceeds from such sale equal or exceed the applicable
Withholding Amount, and to use the net proceeds to satisfy such Withholding Requirement (with any excess net proceeds to be paid to or deposited in an account of Participant). 
 (iv) If Participant has made or makes an election pursuant to Section 83(b) of the Code, he or she shall immediately file a copy thereof with the Company and upon demand by the Company make a cash
payment to the Company equal to any Withholding Amount in respect thereof. 

  
 7 

 (v) In connection with any sale of Shares pursuant to this Section 5.5, Participant agrees that:
(a) such sale may be aggregated with sales of Shares other securities granted to other participants under the Plan or other plans of the Company; (b) such aggregated sales may be made from time to time in one or more installments at any
time and over time as GrafTech or the broker may deem necessary or appropriate with a view toward avoidance or minimization of disruption of the market for the Common Stock, administrative convenience, minimization of costs and expenses or other
factors; and (c) the net proceeds from such aggregated sales and the sale prices of the Shares sold may be allocated among such Shares and other securities and Participant and such other participants as GrafTech or the broker may deem
reasonable. 
 (vi) Participant understands that: (a) different Withholding Requirements may arise at different times based on time of
delivery or vesting of Awards, tax elections or other factors; (b) different Withholding Requirements may be based on different values attributable to Awards at such times or otherwise based on applicable tax laws, changes in the financial
condition of the Company, changes in market or economic conditions or other factors; (c) it may not be practicable or permissible to sell Shares to satisfy each Withholding Requirement at the time due because of rules and requirements of the
broker or the Company, potential liability for short-swing profits, applicable laws, applicable rules of any securities exchange or market, or other factors; and (d) as a result, Shares may be sold at times and values that differ from those
applicable to such Withholding Requirement and that such differences can result in gains or losses relative to those values and capital gains and losses for tax purposes in addition to the taxes described in Section 5.5(i). 

(vii) Participant hereby appoints the Corporate Director of Human Resources and each officer of GrafTech to be Participant’s true and lawful
attorney-in-fact, with full power of substitution and re-substitution, to take, cause to be taken and authorize the taking of any and all actions which any such attorney-in-fact may deem necessary, appropriate, convenient or expedient to sell Shares
issuable pursuant to the Awards to generate net proceeds to satisfy any and all Withholding Requirements and to use net proceeds in satisfaction thereof. This power of attorney shall not be affected in any manner by reason of the execution, at any
time, of other powers of attorney and shall not be affected by the subsequent death, disability or incompetence of Participant. This power of attorney is irrevocable and coupled with an interest and shall remain in effect until all Withholding
Requirements have been fully and unconditionally satisfied. 
 (viii) Participant acknowledges and agrees that neither the Company nor the
broker, nor any of their respective affiliates, control persons, directors, officers, employees, representatives or agents, shall have any liability or obligation for any losses, damages, costs or expenses of any kind or under any theory arising out
of or in connection with any action or omission under this Section 5.5 (including the determination of any Withholding Amount or the time when any Withholding Requirement is required to be satisfied or any sale of or delay in selling or failure
to sell or the price, terms or conditions of sale of any Shares), including any liability for any claim that Participant could have made more or lost less in connection therewith or for any capital gain or loss due to the difference in time between
the triggering of a Withholding Requirement and the resale of Shares in respect thereof or for violations of insider trading or other laws or for incurrence of liability for short-swing profits under Section 16(b) of the Exchange Act, except to
the extent that a court of competent jurisdiction determines by final and non-appealable judgment that any such losses, damages, costs or expenses resulted from actions taken or omitted in bad faith or due to gross negligence or willful misconduct.
References in this Section 5.5 to “selling” and correlative terms include all activities related thereto, including placement and execution of sell orders, selection of brokers and dealers, delivery of Shares, receipt of proceeds and
payment of fees and commissions. 

  
 8 

 (ix) The provisions hereof regarding sale of Shares to satisfy Withholding Requirements are also intended to
constitute a trading plan within the meaning of Rule 10b5-1 under the Securities Act. 
 5.6 Notices. Notices to GrafTech under this
Agreement shall be addressed to GrafTech International Ltd., 12900 Snow Road, Parma, Ohio 44130, Attention: Corporate Director of Human Resources, with a copy to GrafTech’s General Counsel at the same address. Notices to Participant shall be
addressed to the most recent address provided by Participant to GrafTech. Either party may designate in writing another address for notices. 

5.7 Internal Revenue Code Section 409A. To the extent there are any ambiguities in this Agreement or the Plan, any such ambiguities shall be
construed in a manner that complies with Code Section 409A. 
 5.8 Amendments and Conflicting Agreements. This Agreement may be
amended by a written instrument executed by the parties which specifically states that it is amending this Agreement or by a written instrument executed by GrafTech which so states if such amendment is not adverse to Participant or relates to
administrative matters. 
 5.9 Interpretation. Unless otherwise expressly specified herein, all determinations, consents, elections and
other decisions by the Company, the Board, the Compensation Committee or the broker may be made, withheld or delayed in its sole and absolute discretion. 
 5.10 Disclosure and Use of Information. By signing and returning this Agreement, and as a condition of the grant of Awards, Participant hereby expressly consents to the collection, use, and
transfer of personal data by the Company and by any agent of the Company (“Data Recipients”) for the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan. Participant understands that
Data Recipients are or may be located in his or her country of residence or elsewhere. Further, Participant understands that he or she may, at any time, oppose the processing and transfer of his or her personal data, review the data, request that
any necessary amendments be made to it, or withdraw his or her consent by notifying the Company in writing. Participant further understands that withdrawing consent may affect his or her ability to participate in the Plan. 

5.11 Effect on Employment Rights. Nothing in this Agreement shall be construed to confer upon Participant the right to be employed by the Company
or to interfere in any way with the right and authority of the Company either to increase or decrease the compensation of Participant at any time, or to terminate any employment or other relationship between Participant and the Company at any time
and for any reason or no reason. 
  

							
	PARTICIPANT	 		 		 	COMPANY
				
	  

/Date
	 		 		 	  
 Craig S.
Shular

		 		 		 	Chairman and CEO
	Name	 		 		 	

  
 9 

 EXHIBIT A 
 RESTRICTED ACTIVITIES 
 From the effective date of this Agreement and
continuing for a period of two (2) years following (a) voluntary termination of Participant’s employment with the Company or (b) involuntary termination of Participant’s employment with the Company for cause, violation of
material policies, breach of noncompetition, confidentiality or other restrictive covenants, or engagement in Detrimental Conduct, Participant agrees to the following: 
 (i) Participant shall not, without the Company’s prior written consent, directly or indirectly, either for himself or herself or on behalf of any other corporation, partnership, company, person,
group, or entity, engage in (a) the business of manufacturing, distributing, selling or providing needle coke and/or carbon or graphite products, services, material or equipment of the kind or type which are the same as or similar to those
manufactured, distributed, sold or provided by the Company now or at any time while Participant is an employee of the Company, or (b) any other business in which the Company directly or indirectly engages now or at any time while Participant is
an employee of the Company. For purposes of this Exhibit A, Participant shall be deemed to “engage in business” if he or she, directly or indirectly, engages or invests in, owns, manages, operates, controls or participates in the
ownership, management, operation or control of, is employed by, associated or connected in any manner with, or renders services or advice to, any corporation, partnership, company, person, group or entity engaged in the activities identified above;
provided, however, that Participant may invest in the securities of any enterprise (but without otherwise participating in the activities of such enterprise) if (x) such securities are listed on any international, national or regional
securities exchange or market or have been registered under Section 12(g) of the Securities Exchange Act of 1934 and (y) Participant does not beneficially own (as defined under Rule 13d-3 promulgated under the Securities Exchange Act
of 1934) in excess of 5% of the outstanding equity thereof (provided, that Participant shall be deemed not to beneficially own any securities owned by a registered or unregistered investment company with more than $50 million under management).

 (ii) The provisions set forth in Section 1(i) above shall apply only to the reasonable and limited geographic area
consisting of (a) any state, country, possession, or territory in which the Company directly or indirectly has offices, operations, or customers, or otherwise conducts business and (b) during Participant’s period of employment, any
state, country, possession, or territory in which the Company plans to conduct business. 
 (iii) Participant shall not,
directly or indirectly, call on, solicit or take away any of the customers or potential customers of the Company on whom Participant called or with whom Participant became acquainted or of which Participant learned during employment with the
Company. 
 (iv) Participant shall not, directly or indirectly, solicit for employment any employee of the Company or encourage,
induce, attempt to induce, or assist another to induce or attempt to induce any employee of the Company to terminate his or her employment with the Company. 
 (v) Participant shall not interfere, in any manner, with the business, trade, goodwill, sources of supply, or customers of the Company. Participant shall refrain from making any statements or comments of
a defamatory or disparaging nature to any third party regarding the Company or any of the Company’s officers, directors, policies or products, other than to comply with any law or court, regulatory or governmental investigatory order or
request. 

  
 10 

 (vi) If a court of competent jurisdiction determines that the length of time, geographic
scope or other restrictions, or any portion thereof, set forth in this Exhibit A is overly restrictive and unenforceable, the court may reduce or modify the same to the maximum limitations permitted by law, and as so reduced or modified, the
restrictions herein shall remain in full force and effect. If a court of competent jurisdiction determines that any provision of this Exhibit A is invalid or against public policy, the remaining provisions shall not be affected thereby and shall
remain in full force and effect. 
 (vii) The business of the Company is international in scope and that the restrictions
imposed by this Agreement are legitimate, reasonable and necessary to protect the Company’s investment in its businesses and the goodwill thereof. The scope and duration of the restrictions contained herein are reasonable in light of the time
that Participant has been engaged in the business of the Company, Participant’s reputation in the markets for the Company, and Participant’s relationship with the suppliers and customers of the Company. The restrictions contained herein
are not burdensome to Participant in light of the grant of Awards hereunder. Moreover, Participant has other means available to him or her for the pursuit of his or her livelihood. Except as otherwise provided herein, this Exhibit A shall survive
termination of the Agreement. 
 (viii) In the event of any violation by Participant of the provisions set forth in this Exhibit
A, the Company will sustain serious, irreparable and substantial harm to its business, the extent of which will be difficult to determine and impossible to fully remedy by an action at law for money damages. Accordingly, in the event of such
violation or threatened violation by Participant, the Company shall be entitled to an injunction before trial by any court of competent jurisdiction as a matter of course, in addition to all such other legal and equitable remedies as may be
available to the Company. No bond needs to be furnished for such injunctive relief. If the Company is required to enforce the provisions set forth above by seeking an injunction, the relevant time periods set forth in this Exhibit A shall commence
with the entry of the injunction. In addition to any and all of the rights and remedies which the Company may have against Participant, Participant will be liable to and pay the Company its court costs and reasonable attorneys’ fees incurred in
enforcing Participant’s covenants hereunder. 

  
 11 

 EXHIBIT B 
 The following table illustrates the provisions of Section 5.2., and it is has no effect on the terms and interpretations thereof. 

 

							
	 Termination Scenario
	  	 Stock Options
	  	 Restricted Stock Units
	  	 Performance Share Units

				
	 Voluntary Termination

or
 Termination for Cause/Detrimental Conduct
	  	 -        Forfeit all unvested options

-        Vested options will immediately expire
	  	Forfeit all unvested awards [subject to the Company’s right to seek recoupment as a result of Detrimental Conduct]	  	Forfeit all unearned awards [subject to the Company’s right to seek recoupment as a result of Detrimental Conduct]
				
	Termination by Company Action (without cause) or Retirement	  	 -        Forfeit all unvested options

-        1 yr to exercise all vested options
	  	Forfeit all unvested awards	  	 Receive pro-rata portion based on full months employed over 36 months in performance period times

-        shares that would have been earned based on actual performance
at end of performance period
 -        or

-        Target Award in the event of Change in
Control

				
	 Death
	  	 -        Immediate vesting of all unvested
options.
 -        1 yr to exercise all vested
options
	  	Immediate vesting of all unvested awards	  	 Receive pro-rata portion based on full months employed over 36 months in performance period times

-        shares that would have been earned based on actual performance
at end of performance period
 -        or

-        Target Award in the event of Change in
Control

				
	 Disability
	  	 -        Immediate vesting of all unvested
options.
 -        1 yr to exercise all vested
options
	  	Immediate vesting of all unvested awards	  	 Receive pro-rata portion based on full months employed over 36 months in performance period times

-        shares that would have been earned based on actual performance
at end of performance period
 -        or

-        Target Award in the event of Change in
Control

				
	Mandatory or Age 65 Retirement	  	 -        Forfeit all unvested awards

-        3 years to exercise all vested options
	  	Forfeit all unvested awards	  	 Receive pro-rata portion based on full months employed over 36 months in performance period times

-        shares that would have been earned based on actual performance
at end of performance period
           or

TargetAward in the event of Change in Control

  
 12

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