Document:

First Amendment Agreement dated 6/25/04

 Exhibit 10.6 
  
 FIRST AMENDMENT AGREEMENT 
  
 This First Amendment Agreement (the “Amendment”) is made and entered into as of June 25, 2004 by and among AMIN
AMDANI, an individual and resident of the State of Nevada (“Amdani”), Ayesha Amin Amdani, wife of Amdani (“Ms. Amdani”), RAUF GAJIANI, an individual and resident of the State of Nevada (“Gajiani” and, together with
Amdani, the “Sellers” or, individually, a “Seller”), CENTRUM ACQUISITION, INC., a Delaware corporation (“Centrum Acquisition”), ENNIS, INC., a Texas corporation (“Redwing”), and MIDLOTHIAN HOLDINGS LLC, a
Delaware limited liability company (“Merger Sub”). Terms used herein but not defined herein shall have the meanings set forth in the Stock Purchase Agreement (defined below). 
  
 WITNESSETH: 
  
 WHEREAS, Sellers and Centrum Acquisition entered into that certain Amended and Restated Stock Purchase Agreement dated November 10, 2003 (the
“Stock Purchase Agreement”), pursuant to which Centrum Acquisition acquired all issued and outstanding shares of A and G, Inc., an Illinois corporation (“A and G”); 
  
 WHEREAS, pursuant to the terms of that certain Agreement and Plan of Merger dated as of June 25, 2004 and made by and
among Centrum Acquisition, Redwing and Merger Sub, a wholly owned subsidiary of Redwing, (the “Merger Agreement”), Centrum Acquisition shall be merged with and into Merger Sub (the “Merger”), and Merger Sub shall be the surviving
entity; 
  
 WHEREAS, consummation of the Merger will
benefit the Sellers by accomplishing the prepayment of certain of the Promissory Notes and the restructuring of other Promissory Notes, and to induce Redwing and Merger Sub to consummate the Merger, the Sellers have agreed, subject to satisfaction
of the Merger Closing Condition (as defined below), to recognize Merger Sub as the successor in interest to Centrum Acquisition under the Stock Purchase Agreement and the “Buyer” under the Stock Purchase Agreement and to restate certain
provisions of the Stock Purchase Agreement on the terms and conditions provided for herein. 
  
 NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth below, the parties hereto agree as follows: 
  
 1. The Merger Closing Condition. This Amendment is executed concurrently with the execution of the Merger Agreement
and the Stock Purchase Agreement but with the intention of the parties that the obligations of the Sellers, Redwing, Merger Sub and Centrum Acquisition under this Amendment are conditional upon satisfaction or waiver under the Merger Agreement of
all conditions to the Closing (as defined in the Merger Agreement) (the “Merger Closing Condition”). If the Merger is not consummated by December 31, 2004, this Amendment automatically terminate and be of no further force and effect and
shall be void ab initio. 
  
 2. Prepayment and
Modification of Promissory Notes; Covenants. Subject to the satisfaction or waiver of the Merger Closing Condition, at that Closing: 
  
 (a) Redwing and Merger Sub shall pay in full all principal and any accrued and unpaid interest on the $9,000,000 Promissory Notes;

 (b) Redwing and Merger Sub shall pay in full all principal and any accrued and unpaid
interest on the $7,500,000 Promissory Notes; 
  
 (c) Redwing and Merger Sub shall prepay the $10,000,000 Promissory Notes with a prepayment of each in the amount of $5,000,000 plus accrued interest and amend the $10,000,000 Promissory Notes in the form attached to this Amendment as
Exhibit A (the “Amended and Restated $5,000,000 Promissory Notes”); each Amended and Restated $5,000,000 Promissory Note will have the following terms: (i) the initial principal balance shall be $5 Million Dollars ($5,000,000); (ii)
principal shall be paid in one installment of Two Million Five Hundred Thousand Dollars ($2,500,000) due on the first anniversary of the Effective Time (as defined in the Merger Agreement), subject to set-off as provided in Article X, and in a
second installment of Two Million Five Hundred Thousand Dollars ($2,500,000) due on the second anniversary of the Effective Time, subject to set-off as provided in Article X; (iii) the unpaid principal balance of each note shall accrue interest at a
rate of four percent (4%) per annum, which interest shall be payable quarterly in arrears to Sellers (either directly or through the Escrow Agent, but interest shall not become part of the escrow); (iv) the principal balance of each Amended and
Restated $5,000,000 Promissory Note will be reduced by one-half of the amount of each draw on an LC (as defined below), and (v) assignment of all interest of Amdani, Ms. Amdani and Gajiani in the Amended and Restated $5,000,000 Promissory Notes to
the Escrow Agent (as defined below) as security for the Sellers’ obligations under this Agreement. Redwing and Merger Sub shall deliver the Amended and Restated $5,000,000 Promissory Notes on behalf of Amdani, Ms. Amdani and Gajiani to the
Escrow Agent. 
  
 (d) Redwing and Merger Sub
shall deliver to the Escrow Agent two (2) standby letters of credit (each, an “LC”) substantially in the form attached hereto as Exhibit B, which LC shall have a term not less than thirty (30) days in excess of two (2) years from the
Effective Time and which shall permit a draft to be made by the Escrow Agent upon presentation of a sight draft certificate stating that amounts which are due remain unpaid under the Amended and Restated $5,000,000 Promissory Notes and are not
subject to set-off as provided in Article X. The amount available under the LCs will be reduced by all amounts paid on the Amended and Restated $5,000,000 Promissory Notes and all amounts set-off against the Amended and Restated $5,000,000
Promissory Notes as permitted by this Agreement. Merger Sub may elect to deliver to the Escrow Agent four (4) standby LCs, each in the amount of Two Million Five Hundred Thousand Dollars ($2,500,000), with two of the LCs having a term not less than
thirty (30) days after the first anniversary of the Effective Date; those LCs would be returned by the Escrow Agent to Merger Sub in the event that the first installment of principal on the Amended and Restated $5,000,000 Promissory Note in the
amount of Two Million Five Hundred Thousand Dollars ($2,500,000) was paid on or before the first anniversary of the Effective Date. 
  

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 (e) For clarity, in the event that amounts due and payable pursuant to the Amended and
Restated $5,000,000 Promissory Notes at the first anniversary or second anniversary of the Effective Date are not paid on the due date because one or more Claims is subject to dispute in arbitration under this Agreement, Redwing and Merger Sub will
either extend the LCs securing such amounts for the arbitration period or arrange for other security reasonably satisfactory the Sellers, such as placing funds in trust with the arbitrator. 
  
 (f) Amdani, Ms. Amdani and Gajiani shall return to Merger
Sub the $9,000,000 Promissory Notes, the $7,500,000 Promissory Notes and the $10,000,000 Promissory Notes. 
  
 (g) Sellers will deliver to Redwing and Merger Sub a written supplement to the Disclosure Letter of Sellers under the Stock Purchase
Agreement disclosing all matters required to make Sellers’ representations and warranties in the Stock Purchase Agreement true and correct in all material respects as of the Closing Date (as defined in the Merger Agreement), provided that such
supplement shall in no any way reduce the obligations of Sellers with respect to the matters listed on Schedule 10.7(f). 
  
 3. Recognition of Merger Sub as Buyer. Sellers and Merger Sub agree that, upon filing of the Certificate of Merger with the Secretary of State of
the State of Delaware, Merger Sub will succeed to the rights of Centrum Acquisition under the Stock Purchase Agreement after the Effective Time and Merger Sub shall be liable for the performance of all obligations of Centrum Acquisition under the
Stock Purchase Agreement after the Effective Time. 
  
 4.
Amendment to Article 10 of the Stock Purchase Agreement. Article 10 of the Stock Purchase Agreement is hereby amended and restated in its entirety to read as follows: 
  
 10. INDEMNIFICATION; REMEDIES. As used in this Article 10, the term “Buyer” shall mean Centrum
Acquisition, Inc., a Delaware corporation, Midlothian Holdings LLC, a Delaware limited liability company, and Ennis, Inc., a Texas corporation, unless the context otherwise requires. As used in this Article 10, the terms “Effective Time”
and “Effective Date” shall have the meanings given such terms in that certain Agreement and Plan of Merger dated as of June 25, 2004 and made by and among Centrum Acquisition, Inc., Ennis, Inc. and Midlothian Holdings LLC, 
  
 10.1 SURVIVAL; RIGHT TO INDEMNIFICATION NOT AFFECTED
BY KNOWLEDGE. All representations, warranties, covenants, and obligations in this Agreement, the Disclosure Letter, the supplements to the Disclosure Letter, the certificate delivered pursuant to Section 2.4(a)(v), and any other certificate
or document delivered pursuant to this Agreement will survive the Closing. 
  
 10.2 INDEMNIFICATION AND PAYMENT OF DAMAGES BY SELLERS. Subject to the limitations on the duration of the following indemnities which are set forth in Section 10.6 hereof, and subject to the limitations
on liability set forth in Section 10.7 hereof, Sellers, jointly and severally, agree to indemnify, defend, protect and hold 
  

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 harmless Buyer and the Acquired Companies, and their respective Representatives, stockholders,
controlling persons, and affiliates (collectively, the “Indemnified Persons”) for, and will pay to the Indemnified Persons the amount of, any loss, liability, claim, damage (including incidental and consequential damages), expense
(including costs of investigation and defense and reasonable attorneys’ fees) or diminution of value, whether or not involving a third-party claim (collectively, “Damages”), arising, directly or indirectly, from or in connection with:

  
 (a) Any Damages asserted against or incurred
by any of the Indemnified Persons which result from a condition which existed as of or prior to the date of this Agreement (November 10, 2003) which Damages were not accrued in the Balance Sheet Liabilities. 
  
 (b) Any Damages asserted against or incurred by any of the
Indemnified Persons which result from a condition which existed as of or prior to the date of this Agreement but which Damages were not recorded in or which were not accrued in the Balance Sheet Liabilities because such Damages, at the time the
Balance Sheet Liabilities were determined, either: (i) were not known to the Seller; (ii) were known to the Seller but were deliberately omitted from the Company’s financial statements; or (iii) were known but were too contingent as of that
date to record on the Interim Balance Sheet as a liability under GAAP. 
  
 (c) Any Damages asserted against or incurred by any of the Indemnified Persons which result from a condition which existed as of or prior to the date of this Agreement but which Damages result from an agreement of
guaranty, indemnification or suretyship made by the Sellers or the Company and which agreement: (i) was not identified on Schedule 8.2(c) and (ii) was not made in the ordinary course of business. 
  
 (d) Any Breach of, or Alleged Breach with respect to, any
representation or warranty made by Sellers in this Agreement, the Disclosure Letter, the supplements to the Disclosure Letter, or any other certificate or document delivered by Sellers pursuant to this Agreement (giving effect as provided in Section
10.7(f) to a supplement to the Disclosure Letter provided for in Section 2(g) of that First Amendment Agreement dated June 25, 2004 amending this Agreement), provided, however, that in connection with any Breach or Alleged Breach of any
representation and warranty in Section 3.6, Buyer agrees to use good faith efforts to pursue for a reasonable period of time any claim Buyer has, if any, against the Title Company that issued the title policy in connection therewith prior to
pursuing any claim against Sellers. 
  
 (e) Any
Breach of, or Alleged Breach with respect to, any representation or warranty made by Sellers in this Agreement as if such representation or warranty were made on and as of the Closing Date (giving effect as provided in Section 10.7(f) to a
supplement to the Disclosure Letter provided for in Section 2(g) of that First Amendment Agreement dated June 25, 2004 amending this 
  

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 Agreement), provided, however, that in connection with any Breach or Alleged Breach of any representation
and warranty in Section 3.6, Buyer agrees to use good faith efforts to pursue a reasonable period of time any claim Buyer has, if any, against the Title Company that issued the title policy in connection therewith prior to pursuing any claim against
Sellers; provided, however, that Buyer may preserve its rights under this Article 10 regarding that Damage resulting from that Breach or Alleged Breach by giving Sellers a Claim Notice regarding that Damage. 
  
 (f) Any Breach by either Seller of any covenant or
obligation of such Seller in this Agreement or any Alleged Breach by either Seller of any covenant or obligation of such Seller in this Agreement. 
  
 (g) Any Formerly Owned Facilities Breach, or any Alleged Breach with respect to a Formerly Owned Facility. 
  
 (h) Any inaccuracy in or breach of any of the following
statements as of November 10, 2003: 
  
 (i) The
books of account, minute books, stock record books, and other records of the Acquired Companies, all of which have been made available to Buyer, are complete and correct and have been maintained in accordance with sound business practices and the
requirements of Section 13(b)(2) of the Securities Exchange Act of 1934, as amended (regardless of whether or not the Acquired Companies are subject to that Section), including the maintenance of an adequate system of internal controls. The minute
books of the Acquired Companies contain accurate and complete records of all meetings held of, and corporate action taken by, the stockholders, the Boards of Directors, and committees of the Boards of Directors of the Acquired Companies, and no
meeting of any such stockholders, Board of Directors, or committee has been held for which minutes have not been prepared and are not contained in such minute books. 
  
 (ii) The Financial Statements and notes fairly present the financial condition and the results of
operations, changes in stockholders’ equity, and cash flow of the Acquired Companies as at the respective dates of and for the periods referred to in such financial statements, all in accordance with GAAP, subject, in the case of interim
financial statements, to normal recurring year-end adjustments (the effect of which will not, individually or in the aggregate, be materially adverse) and the absence of notes (that, if presented, would not differ materially from those included in
the Balance Sheet); 
  
 (iii) The Financial
Statements reflect the consistent application of such accounting principles throughout the periods involved, except as disclosed in the notes to such financial statements. No financial statements of any Person other than the Acquired Companies are
required by GAAP to be included in the consolidated financial statements of the Company. 
  

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 (i) Any product shipped or manufactured by, or any services provided by, any Acquired
Company prior to the Closing Date. 
  
 (j) Any
Damages asserted against or incurred by any of the Indemnified Persons which result from a matter disclosed in Part 3.15 of the Disclosure Letter and any action threatened or brought by a third party against the Acquired Companies prior to the
Closing Date. 
  
 (k) Any claim by any Person for
brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding alleged to have been made by any such Person with either Seller or any Acquired Company (or any Person acting on their behalf) in connection
with any of the Contemplated Seller Transactions or the Contemplated Buyer Transactions. 
  
 (l) Any claim, action, proceeding or demand alleging that the Assets or the use of the Assets by the Company constitutes an infringement
upon or misappropriation upon any patent, trademark, copyright, trade secret or other intellectual property or proprietary right of any third party. At its sole expense and in lieu of indemnifying Buyer or the Company for loss, costs, claims or
damages covered by this subsection, Sellers may elect to either procure for Buyer and the Company the right to continue using the Asset free of any liability for infringement or violation or may elect to replace or modify the Asset in question with
a non-infringing system or product of equivalent or better functionality that is reasonably satisfactory to Buyer. 
  
 10.3 INDEMNIFICATION AND PAYMENT OF DAMAGES BY SELLERS—ENVIRONMENTAL MATTERS. In addition to the
provisions of Section 10.2 but subject to the limitations on the duration of the following indemnities which are set forth in Section 10.6 hereof, and subject to the limitations on liability set forth in Section 10.7 hereof, Sellers, jointly and
severally, will indemnify and hold harmless Buyer, the Acquired Companies, and the other Indemnified Persons for, and will pay to Buyer, the Acquired Companies, and the other Indemnified Persons the amount of, any Damages (including costs of
cleanup, containment, or other remediation) arising, directly or indirectly, from or in connection with: 
  
 (a) any Environmental, Health, and Safety Liabilities arising out of or relating to: (i) (A) the ownership, operation, or condition at any
time on or prior to the Closing Date of the Facilities or any other properties and assets (whether real, personal, or mixed and whether tangible or intangible) in which Sellers or any Acquired Company has or had an interest, or (B) any Hazardous
Materials or other contaminants that were present on the Facilities or such other properties and assets at any time on or prior to the Closing Date; or (ii) (A) any Hazardous Materials or other contaminants, wherever located, that were, or were
allegedly, 
  

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 generated, transported, stored, treated, Released, or otherwise handled by Sellers or any Acquired
Company or by any other Person for whose conduct they are or may be held responsible at any time on or prior to the Closing Date, or (B) any Hazardous Activities that were, or were allegedly, conducted by Sellers or any Acquired Company or by any
other Person for whose conduct they are or may be held responsible; or 
  
 (b) any bodily injury (including illness, disability, and death, and regardless of when any such bodily injury occurred, was incurred, or manifested itself), personal injury, property damage (including trespass,
nuisance, wrongful eviction, and deprivation of the use of real property), or other damage of or to any Person, including any employee or former employee of Sellers or any Acquired Company or any other Person for whose conduct they are or may be
held responsible, in any way arising from or allegedly arising from any Hazardous Activity conducted or allegedly conducted with respect to the Facilities or the operation of the Acquired Companies prior to the Closing Date, or from Hazardous
Material that was (i) present or suspected to be present on or before the Closing Date on or at the Facilities (or present or suspected to be present on any other property, if such Hazardous Material emanated or allegedly emanated from any of the
Facilities and was present or suspected to be present on any of the Facilities on or prior to the Closing Date) or (ii) Released or allegedly Released by Sellers or any Acquired Company or any other Person for whose conduct they are or may be held
responsible, at any time on or prior to the Closing Date. 
  
 Buyer will be entitled to control any Cleanup, any related Proceeding, and, except as provided in the following sentence, any other Proceeding with respect to which indemnity may be sought under this Section 10.3. The procedure described in
Section 10.9 will apply to any claim solely for monetary damages relating to a matter covered by this Section 10.3. 
  
 10.4 INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYER. 
  
 Buyer will indemnify and hold harmless Sellers, and will pay to Sellers the amount of any Damages arising, directly or
indirectly, from or in connection with (a) any Breach of, or Alleged Breach with respect to, any representation or warranty made by Buyer in this Agreement or in any certificate delivered by Buyer pursuant to this Agreement, (b) any Breach of by
Buyer, or Alleged Breach with respect to, any covenant or obligation of Buyer in this Agreement, or (c) any claim by any Person for brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding alleged
to have been made by such Person with Buyer (or any Person acting on its behalf) in connection with any of the Contemplated Transactions. The obligations of Buyer under this Section 10.4 are subject to the limitations stated in Section 10.8.

  

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 10.5 CLAIMS AND PROCEDURES. 
  
 (a) An Indemnified Person who requests reimbursement from or
indemnification from a party under this Article 10 (a “Claim”) shall do so with a written statement (a “Claim Notice”) of the reimbursement or other indemnification which is requested. The Claim Notice must describe the subject
matter of the Claim in reasonable detail. In the event that a Seller disputes the amount of the Claim Notice for purposes of determining the amount of Claims which are pending, then that Seller may elect to commence arbitration proceedings under
Section 11.11 of this Agreement on the limited subject of the amount of the Claim which should be reserved against the Basket Cap. 
  
 (b) In the event an Indemnified Person presents a Claim against the Sellers under this Article 10, such Indemnified Person shall have the
following exclusive remedies: 
  
 (i) To the
extent that the Damage covered by the indemnities in this Article 10 represents a third party claim, the Indemnified Party must tender that claim to the Sellers and follow the procedures stated in Section 10.9. 
  
 (ii) To the extent that the Damage covered by the
indemnities in this Article 10 represents a financial loss incurred by the Buyer as to which recovery can be made from insurance policies held by the Buyer, including policies of title insurance, then Buyer must use commercially reasonable efforts
to recover from that insurance policy before exercising Buyer’s set-off rights under Section 10.8; provided, however, that Buyer may give Sellers a Claim Notice regarding that Damage to preserve Buyer’s rights against Sellers in the event
that the policy or policies of insurance do not repay the Damages in full; and provided, however, that Buyer shall not be required to commence litigation or assign a claim to a collection agency as part of those efforts to recover from any insurance
policy. 
  
 (iii) To the extent that the Damage
covered by the indemnities in this Article 10 represents a financial loss incurred by the Buyer as to which a reserve has been specifically established by Centrum Acquisition in its financial records prior to November 10, 2003 or the Effective Time
(whichever reserve is greater), then Buyer must apply that reserve to the Damage incurred before exercising Buyer’s set-off rights under Section 10.8. 
  
 (iv) To the extent that the Damage covered by the indemnities in this Article 10 represents a financial loss incurred by Buyer as to which
full recovery can not be made under either clauses (ii) or (iii) above, then Buyer must exercise its rights to recover against the Amended and Restated $5,000,000 Promissory Notes under Section 10.8 and the Escrow Agreement (as defined below), with
no right to recover personally from any Seller unless the Damage results from a Breach or an Alleged Breach which constitutes fraud on the part of that Seller. 
  

(v) The obligations of Sellers under this Article 10 are subject to the limitations stated in Section 10.6 and in Section 10.7,
including the limitations in Section 10.7(e) that restrict Buyer from recovering from Sellers absent the occurrence of the actions identified in Section 10.7(e). 
  

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 10.6 TIME LIMITATIONS. Sellers will have no liability (for indemnification
or otherwise) with respect to any representation or warranty, or covenant or obligation to be performed and complied with, whether before or after the Closing Date, unless on or before the date which will be the second anniversary of the Effective
Time, Buyer notifies Sellers of a claim specifying the factual basis of that claim in reasonable detail to the extent then known by Buyer (a “Claim Notice”). The obligation of the Sellers to accept Claim Notices under this Agreement will
expire on that date which will occur two (2) years after the Effective Time (the “Final Claim Date”). After the Final Claim Date, the Sellers will not be required to accept any Claim Notices or other requests for indemnification under this
Agreement. 
  
 10.7 LIMITATIONS ON
AMOUNT—SELLERS. 
  
 (a) Except as
otherwise provided in Section 10.7(e), Sellers will have no liability for a Breach of a representation or warranty, a Claim or Claims with regard to a representation or warranty or liability under Section 10.2 for indemnification or otherwise until
the total of all Damages with respect to such indemnification (or otherwise) exceeds $500,000, and then only for the amount by which such Damages exceed $500,000. 
  
 (b) Notwithstanding the provisions of this Article 10 to the contrary, the aggregate amount of Damages that
may be paid under this Article 10 for a Claim or Claims made shall be limited to Ten Million Dollars ($10,000,000) (the “Basket Cap”). 
  
 (c) As of the Final Claim Date, the Sellers will no longer be obligated to accept the tender of Claims from the Indemnified Persons.
However, the obligations of the Sellers to the Indemnified Persons under this Article 10 shall continue after the Final Claim Date with regard to Claims that have been properly presented to the Sellers prior to the Final Claim Date; provided,
however, that at such time as the amount of Damages paid, reimbursed or otherwise expended by the Sellers under this Agreement equals or exceeds the Basket Cap, the Sellers shall be relieved of all further obligation under this Agreement and may
tender to Buyer the defense of all filed Proceedings and the handling of all Claims which have been previously presented to the Sellers under this Agreement. 
  

(d) With respect to any Claim or matter that may potentially become a Claim (“Pending Matter”), Buyer shall take all
reasonable steps to mitigate the amount of Damages that may accrue, arise, be assessed or otherwise incurred by any Indemnified Persons with respect to that Claim or Pending Matter; provided, however, the duty to mitigate damages shall not be
construed to require Buyer to commence litigation against any party or assign a claim to a collection agency to preserve a Claim or Pending Matter. Buyer will not take any actions, directly or indirectly, to provoke or initiate the filing or making
of a claim or demand by a third party for the purpose of enabling Buyer to file a Claim under this Article 10. 
  

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 (e) Notwithstanding anything contained herein to the contrary, the limitations of
liability contained in this Section 10.7 will not apply to: (i) any Breach to the extent that such Breach is attributable to fraud by a Seller; or (ii) any Alleged Breach to the extent that such Alleged Breach is attributable to fraud by a Seller.
Sellers will be jointly and severally liable for all Damages with respect to such Breaches and Alleged Breaches listed in clauses (i) through (ii) above, with neither the Damages Floor nor the Basket Cap to be applicable to that liability.

  
 (f) Notwithstanding any investigation or
audit conducted before or after the Effective Time or the decision of Buyer to complete the Merger, Buyer shall be entitled to rely upon the representations and warranties set forth in the Stock Purchase Agreement; provided, however, that in the
event that Ennis, Inc. and Midlothian Holdings LLC (excluding the knowledge of Centrum Acquisition, Inc. prior to the Effective Time) discovered prior to the Effective Time that any representation or warranty made by the Sellers was incorrect or
inaccurate, and in the event that Buyer elected to conclude the Merger, then the closing of the Merger by the Buyer shall constitute a waiver by Buyer of any claims for the breach of such representation or warranty as a result of such inaccuracy or
incorrectness. The foregoing proviso shall not apply to the matters identified on attached Schedule 10.7(f) (the “Identified Matters”) which are matters known to Buyer and the Sellers and which matters the Sellers acknowledge are covered
by the indemnification obligations of Sellers under this Article 10. 
  
 (g) Except as otherwise provided in Section 10.7(e), Seller’s maximum liability for any and all causes of action arising out of this Agreement, except for any action resulting in a finding of fraud, shall not
exceed the amount of the Basket Cap. Except as otherwise provided in Section 10.7(e), Buyer’s exclusive remedy for a Breach of a representation or warranty, for an Alleged Breach of a representation or warranty, for a claim against either
Seller under the indemnification provisions of Section 10.2 or for a claim against either Seller under the indemnification provisions of Section 10.3 shall be recourse to Buyer’s right of set-off against amounts held by the Escrow Agent which
were to be paid on the Amended and Restated $5,000,000 Promissory Notes, as provided in Section 10.9, with arbitration under Section 11.11, if necessary. 
  
 10.8 LIMITATIONS ON TIME AND AMOUNT — BUYER. 
  
 (a) Except as otherwise provided in Section 10.8(c), the maximum liability of Buyer for any and all causes
of action arising out of this Agreement after Closing shall not exceed the amount of One Million Dollars ($1,000,000); notwithstanding the foregoing, Sellers shall have the right to raise affirmative defenses to the payment of Claims or to the
valuation of Claims based on any violation by Buyer of the provisions of this Article 10 regarding Claims, including the provisions of Section 10.7(d), and such affirmative defenses shall not be limited by the $1 million amount. 
  

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 (b) Buyer will not have any liability (for indemnification or otherwise) with respect to
any representation or warranty, or covenant or obligation to be performed and complied with, whether before or after the Closing Date, unless on or before the Final Claim Date, Sellers notify Buyer of a claim specifying the factual basis of that
claim in reasonable detail to the extent then known by Sellers (a “Seller Claim Notice”). The obligation of the Buyer to accept Seller Claim Notices under this Agreement will expire on the Final Claim Date. After the Final Claim Date, the
Buyer will not be required to accept any Seller Claim Notices or other requests for indemnification under this Agreement 
  
 (c) Notwithstanding anything contained herein to the contrary, the limitations of liability contained in Section 10.8(a) will not apply
to: (i) any claim against Buyer under the Amended and Restated $5,000,000 Promissory Notes; (ii) any Breach of any of Buyer’s representations and warranties to the extent that such Breach is attributable to fraud by Buyer; (iii) any Alleged
Breach with respect to any of Buyer’s representations and warranties to the extent that such Alleged Breach is attributable to fraud by Buyer; or (iv) any willful and intentional Breach by Buyer of any covenant or obligation. Buyer will be
liable for all Damages with respect to such Breaches and Alleged Breaches listed in clauses (i) through (iv) above, with no limit on the amount of such liability under Section 10.8(a). 
  
 10.9 BASKET; RIGHT OF SET-OFF. 
  
 (a) In the event that Buyer determines that either Seller is required to pay amounts to Buyer under this
Agreement other than an amount described in Section 10.7(e), then Buyer must elect to set-off that amount against amounts held by the Escrow Agent which were to be paid on the Amended and Restated $5,000,000 Promissory Notes rather than to bring an
action to recover such amounts from either Seller. In the election of that set-off right, Buyer shall provide a notice to the Sellers specifying in reasonable detail the basis for such set-off and the amount proposed to be set-off against the
amounts held by the Escrow Agent which were to be paid on the Amended and Restated $5,000,000 Promissory Notes (“Set-Off Demand”). In the event that Sellers do not consent to the Set-Off Demand, within twenty (20) days of Sellers’
receipt of the original Set-Off Demand, Sellers shall provide Buyer with notice of Seller’s refusal to permit the set-off (the “Disagreement Notice”). Sellers’ failure to deliver a Disagreement Notice within twenty (20) days
after Sellers’ receipt of the original Set-Off Demand shall be considered an express consent by Sellers of their obligation to pay Buyer the amount set forth in the Set-Off Notice, and Buyer may then set-off that amount against the amounts held
by the Escrow Agent which were to be paid on Amended and Restated $5,000,000 Promissory Notes by notice to the Escrow Agent. 
  

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 (b) In the event that a Seller has timely delivered a Disagreement Notice to Buyer,
within twenty (20) days of its receipt of the Disagreement Notice, the Buyer shall notify the Sellers either that Buyer withdraws the Set-Off Demand or elects to commence arbitration of the Set-Off Demand pursuant to the terms of Section 11.11 of
this Agreement. In the event that such arbitration results in a ruling in favor of Buyer, then Buyer may set off any amount to which it may be entitled to payment from either Seller under this Agreement against amounts held by the Escrow Agent which
were to be paid on the Amended and Restated $5,000,000 Promissory Notes. The exercise of such right of set-off shall not be deemed to constitute an event of default under the Amended and Restated $5,000,000 Promissory Notes. Any set-off against the
amounts held by the Escrow Agent which were to be paid on Amended and Restated $5,000,000 Promissory Notes must be taken against amounts held by the Escrow Agent which were to be paid on each of the Amended and Restated $5,000,000 Promissory Notes
in equal amounts. 
  
 (c) In order to secure the
payment of the Sellers’ obligations under this Article 10, the Sellers shall, on the Effective Time, pledge and deposit the Amended and Restated $5,000,000 Promissory Notes with an escrow agent to be selected by Buyer that is reasonably
acceptable to the Sellers (the “Escrow Agent”), to be governed in accordance with the Note Pledge and Escrow Agreement substantially in the form attached hereto as Exhibit C (“Note Pledge and Escrow Agreement”). 
  
 (d) As used herein, the term “Second Year Amount”
shall mean Five Million Dollars ($5,000,000). As used herein, the term “First Anniversary Pending Claims” shall mean the dollar value of Claims presented during the first year after the Effective Time. For purposes of determining the
dollar value of Claims presented, the dollar value of a Claim shall be: (i) if the Claim has been settled, the amount of Damages for which the Claim was settled; (ii) if the Claim is still pending, the dollar value stated in the Claim Notice,
subject to Seller’s right to request arbitration as to the dollar value stated in the Claim Notice. 
  
 (e) The Escrow Agent shall, on the first anniversary of the Effective Time (or the first business day thereafter if such date is not a
business day), tabulate the First Anniversary Pending Claims and, if the principal amounts paid on the Amended and Restated $5,000,000 Promissory Notes into the escrow are greater than the amount of the First Anniversary Pending Claims, the Escrow
Agent shall release that amount of cash which exceeds the First Anniversary Pending Claims while reserving an amount of cash equal to the First Anniversary Pending Claims. The Amended and Restated $5,000,000 Promissory Notes held under the Escrow
Agreement shall be the sole and exclusive source of repayment and/or reimbursement of Damages, except for Damages described in Section 10.7(e). Interest paid on the Amended and Restated $5,000,000 Promissory Notes shall be paid by the Escrow Agent
to the persons identified as the Payees on the Amended and Restated $5,000,000 Promissory Notes. 
  

 12 

 (f) The Escrow Agent shall, on the day following the Final Claim Date, (or the first
business day thereafter if such date is not a business day), tabulate the dollar value of the Claims which are pending as of the Final Claim Date (the “Final Pending Claims”). For purposes of determining the dollar value of Claims pending
as of the Final Claim Date, the dollar value of a Claim shall be: (i) if the Claim has been settled, the amount of Damages for which the Claim was settled; (ii) if the Claim is still pending, the dollar value stated in the Claim Notice; provided,
however, that if a Seller or the Buyer objects to the amount of the dollar value stated in the Claim Notice as of the Final Claim Date as inaccurate, then that Seller can elect arbitration under Section 11.11 to have a panel of arbitrators determine
the correct value of the Claim for purposes of establishing a reserve against the Escrow Assets. If the dollar value of the Final Pending Claims as of the Final Claim Date is greater than the principal amounts paid on the Amended and Restated
$5,000,000 Promissory Notes into the escrow, the difference shall be paid by the Escrow Agent to the Sellers in the amount cash by which the Escrow Assets exceed the dollar value of the Final Pending Claims. 
  
 10.10 PROCEDURE FOR INDEMNIFICATION—THIRD PARTY
CLAIMS. 
  
 (a) Promptly after receipt by
any Indemnified Person under Section 10.2 or 10.3 of notice of the commencement of any Proceeding against it, including, without limitation, any matter disclosed in Part 3.15 of the Disclosure Letter and any action threatened or brought by a third
party against any Acquired Company prior to the Closing Date, such Indemnified Person will, if a claim is to be made against Sellers under this Article 10, give notice to the Sellers of the commencement of such claim, but the failure to notify the
Sellers will not relieve the Sellers of any liability that they may have to any Indemnified Persons, except to the extent that the Sellers demonstrate that the defense of such action is materially prejudiced by the Indemnified Person’s failure
to give such notice. 
  
 (b) If any Proceeding
referred to in Section 10.10(a) is brought against any Indemnified Person, then such Indemnified Person shall give notice in writing to the Sellers of the commencement of such Proceeding and the Indemnified Person’s election either to assume
the defense of the Proceeding at the Sellers’ expense or to tender the defense of the Proceeding to Sellers. (the “Indemnification Notice”). 
  
 (c) In the event that the Indemnified Person elects to tender the defense of the Proceeding to Seller, then the Sellers may, at their
option, accept the defense of that Proceeding and pay all reasonable costs of defense of that Proceeding but any judgments or settlements that result from the Proceeding. 
  
 (d) In the event that the Indemnified Person elects to assume the defense of the Proceeding, the Sellers
will be entitled to participate in such Proceeding, but the direction of the defense of the Proceeding shall be within the Indemnified 
  

 13 

 Person’s control. The Enforcement Costs of the defense of the Proceeding shall be borne by the
Indemnified Person but shall be subject to reimbursement from the amounts held by the Escrow Agent on a current basis, that is, with payment of tendered invoices within thirty (30) days after written demand for payment. 
  
 (e) In the event an Indemnified Person receives a settlement
offer with respect to a Proceeding, the Indemnified Person shall promptly tender that settlement offer to the Sellers. In the event that the Sellers elect not to accept that settlement offer, the Indemnified Person may cause the Company to reserve
such amount, and the Indemnified Person may then return the defense of the Proceeding to the Sellers. In the event that the Sellers later are required to settle that Proceeding or a judgment is entered against the Sellers in that Proceeding, the
entire amount of that settlement or judgment may be taken as a set-off against either or both of the Amended and Restated $5,000,000 Promissory Notes with no requirement of arbitration under Section 11.11. 
  
 (f) Sellers shall not be required to pay or reimburse Buyer
for attorneys’ fees or expenses, litigation consultant’s fees or expenses or other costs of a Proceeding which are not reasonable under the circumstances. Any party challenging the reasonableness of another party’s request for
reimbursement of attorneys’ fees shall bear the burden of proof of showing that the request for attorneys’ fees is unreasonable. 
  
 (g) Payment of amounts due from either Seller to Buyer under this Section 10.10 shall be made in the following manner: 
  
 (i) Payment of expenses of defending a Proceeding shall be
made directly by Sellers within thirty (30) days after receipt of invoices containing detail which is typical for expense billing in a commercial matter similar to the Proceeding; 
  
 (ii) Payment of amounts of reasonable attorneys’ fees as described in Section 10.10(c) may be made by
a direct set-off against the Amended and Restated $5,000,000 Promissory Notes with no requirement of arbitration under Section 11.11. Payment of any settlement amount which has been agreed to by Sellers may be made by a direct set-off against the
Amended and Restated $5,000,000 Promissory Notes with no requirement of arbitration under Section 11.11. Payment of any final, non-appealable judgment against an Indemnified Person may be made by a direct set-off against the Amended and Restated
$5,000,000 Promissory Notes with no requirement of arbitration under Section 11.11. 
  
 (h) Sellers hereby consent to the non-exclusive jurisdiction of any court in which a Proceeding is brought against any Indemnified Person
for purposes of any claim that an Indemnified Person may have under this Agreement 
  

 14 

 with respect to such Proceeding or the matters alleged therein, and agree that process may be served on
Sellers with respect to such a claim anywhere in the world. 
  
 (i) No Holder shall, in the defense of any claim or litigation, except with the consent of the Indemnified Person, consent to entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the plaintiff or person making a claim to such Indemnified Person of a complete release from all liability in respect to such claim or litigation without any admission of guilt or wrongdoing. 
  
 10.11 PROCEDURE FOR
INDEMNIFICATION—OTHER CLAIMS. A Claim for indemnification for any matter not involving a third-party claim may be asserted by notice to the party from whom indemnification is sought. 
  
 5. Amendment to Article 11 of the Stock Purchase Agreement. Section
11.11 of the Stock Purchase Agreement is hereby amended and restated to read as follows: 
  
 11.11 ARBITRATION. In the event of a Dispute that cannot be resolved pursuant to the procedure in Section 11.10 above, then
except as expressly provided in Section 11.5, any dispute or controversy arising between the parties to or in connection with this Agreement involving the interpretation, application and/or enforcement of any provision of this agreement, or arising
out of this Agreement, shall be submitted for arbitration at Los Angeles, California, to a panel of three arbitrators chosen from the list of arbitrators on Schedule 11.11 attached hereto, each of whom are members of national accounting firms, and
each of whom is qualified and experienced in mergers and acquisitions and/or in the textile industry and who shall be independent of the parties and reasonably experienced in conducting arbitration proceedings relating to similar matters
(“Arbitrators”). Such arbitrators shall be selected by the agreement of Sellers and Buyers; in the event that Sellers and Buyer cannot agree on a panel of three Arbitrators, then the Sellers shall select one Arbitrator, the Buyer shall
select one Arbitrator and the two Arbitrators selected by the parties shall select the third Arbitrator, with the selection of the Arbitrators by the parties to be made no later than twenty (20) days after the delivery of a demand by the other party
for arbitration (the “Arbitration Notice”). Any designated arbitrator shall not be an agent, employee, shareholder or affiliate of any parties to the arbitration, but as reasonably possible should be a person with knowledge and experience
in the type of dispute existing between the parties. 
  
 (a) The Arbitrators shall be directed to identify the prevailing party in the arbitration, and the non-prevailing party shall be responsible for the costs and expenses incurred in conducting the arbitration proceeding provided for in this
Section 11.11, including reasonable attorneys’ fees and expenses. In the event that the allegations of damages for fraud is determined to be unfounded, the arbitration panel shall assess costs and expenses related to that unfounded allegation
against the party making the same allegation even if that party is the prevailing party on other aspects of the arbitration. For any arbitration resulting from the exercise 
  

 15 

 of Buyer’s set-off rights under Section 10.8 of this Agreement, any obligation of a Seller to pay
attorneys’ fees and expenses must be satisfied by a set-off against amounts due under either or both of the Amended and Restated $5,000,000 Promissory Notes. 
  
 (b) The decision of the Arbitrators shall be final and binding on the parties. 
  
 (c) The exercise by Buyer of its right of set-off, and the
resolution by arbitration pursuant to this Section 11.11 over any dispute as to Buyer’s right of setoff, shall constitute an election of remedies and limit Buyer in the enforcement of any other remedies that may be available to it; provided
however, that Buyer shall be entitled to pursue any remedies available to it in any manner in the event of alleged fraud by Sellers. 
  
 6. Severability. If any provision of this Amendment is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Amendment will remain in full force and effect. Any provision of this Amendment held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 
  
 7. Section Headings, Construction. The headings of Sections in this
Amendment are provided for convenience only and will not affect its construction or interpretation. All references to “Section” or “Sections” refer to the corresponding Section or Sections of this Amendment. All words used in
this Amendment will be construed to be of such gender or number as the circumstances require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms. 
  
 8. Time Of Essence. With regard to all dates and time periods set
forth or referred to in this Amendment, time is of the essence. 
  
 9. Governing Law. This Amendment will be governed by the internal laws of the State of New York without regard to conflicts of laws principles. 
  

10. Counterparts. This Amendment may be executed in one or more counterparts, each of which will be deemed to be an original copy of this
Amendment and all of which, when taken together, will be deemed to constitute one and the same agreement. 
  

 16 

 IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the date first
written above. 
  

							
	 CENTRUM ACQUISITION, INC., a
 Delaware corporation
	 	 SELLERS:

			
	 By:
	 	 /s/ Roger Brown

	 	 /s/ Amin Amdani

	 Name:
	 	 Roger Brown
	 	 Amin Amdani

	 Title:
	 	 President and Chief Executive Officer
	 	 	 	 
			
	 	 	 	 	 /s/ Ayesha Amin Amdani

	 	 	 	 	Ayesha Amin Amdani
				
	 By:
	 	 /s/ John McLinden

	 	 	 	 
	 Name:
	 	 John McLinden
	 	 	 	 
	 Title:
	 	Vice President	 	 /s/ Rauf Gajiani

	 	 	 	 	 Rauf Gajiani

		
	 ENNIS, INC., a Texas corporation
	 	 MIDLOTHIAN HOLDINGS LLC

				
	 By:
	 	 /s/ Keith S. Walters

	 	 By:
	 	 /s/ Keith S. Walters

	 Name:
	 	 Keith S. Walters
	 	 Name:
	 	 Keith S. Walters

	 Title:
	 	 Chairman, President and CEO
	 	 Title:
	 	 Manager

  

 17Indemnity Agreement dated 6/25/04

 Exhibit 10.7 
  
 INDEMNITY AGREEMENT 
  
 This Indemnity Agreement (the “Agreement”) is made and entered into as of June 25, 2004 by each of LAURENCE ASHKIN (“Ashkin”), ROGER
BROWN (“Brown”), JOHN McLINDEN (“McLinden”), ARTHUR SLAVEN (“Slaven” and, together with Ashkin, Brown and McLinden, the “Holders”), ENNIS, INC., a Texas corporation (“Purchaser”), and MIDLOTHIAN
HOLDINGS LLC., a Delaware limited liability company (“Merger Sub”). Terms used herein but not defined herein shall have the meanings set forth in the Merger Agreement (defined below). 
  
 WITNESSETH: 
  
 WHEREAS, each of the Holders owns one (1) share of Class A common
stock, $1.00 par value per share, of Centrum Acquisition, Inc., a Delaware corporation (the “Company”), and each of the Holders owns at least twenty four and three quarters (24.75) shares of Class B common stock, $1.00 par value per share,
of the Company; 
  
 WHEREAS, pursuant to the terms of that
certain Agreement and Plan of Merger dated as of June 25, 2004 and made by and among the Company, Purchaser and Merger Sub, a wholly owned subsidiary of Purchaser (the “Merger Agreement”), the Company shall be merged with and into Merger
Sub (the “Merger”), and Merger Sub shall be the surviving entity; 
  
 WHEREAS, pursuant to the terms of the Merger Agreement, each of the Holders shall be issued shares of Purchaser Stock in exchange for their respective shares of the Company, in the amounts as determined as of
the Effective Time and in accordance with the terms of the Merger Agreement; 
  
 WHEREAS, each of the Holders owns one (1) share of Class A common stock, $1.00 par value per share, of Crabar/GBF, Inc., a Delaware corporation (“Crabar/GBF”), and each of the Holders owns Class B
common stock of Crabar/GBF; 
  
 WHEREAS, pursuant to the
terms of that certain Stock Purchase Agreement dated as of June 25, 2004 and made by and among Crabar/GBF, Purchaser and the stockholders of Crabar/GBF, (the “Stock Purchase Agreement”), the Purchaser has agreed to purchase the outstanding
shares of Crabar/GBF; 
  
 WHEREAS, as an inducement to
Purchaser to consummate the Merger, and as a condition to such Merger, and as an inducement to Purchaser to enter into the Stock Purchase Agreement, and to consummate the transaction provided for in the Stock Purchase Agreement, the Holders are
entering into this Agreement. 

 NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth
below, the parties hereto agree as follows: 
  
 ARTICLE I

 DEFINITIONS; CONDITIONS TO EFFECTIVENESS 
  

Section 1.1 Defined Terms. As used in this Agreement, the following terms shall have the following meanings assigned to them: 
  
 (a) “Damages” shall mean any loss, liability,
claim, damage (including incidental and consequential damages), or diminution of value, whether or not involving a third-party claim and the Enforcement Costs associated therewith. 
  
 (b) “Enforcement Costs” shall mean all reasonable costs of investigation and defense and
reasonable attorneys’ fees and expenses. 
  
 (c) “Person” shall mean any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, labor union, or other
entity or Governmental Body. 
  
 (d)
“Proceeding” shall mean any action, arbitration, audit, hearing, investigation, litigation, or suit (whether civil, criminal, administrative, investigative, or informal) commenced, brought, conducted, or heard by or before, or otherwise
involving, any Governmental Body or arbitrator. 
  
 (e) “Representative” shall mean with respect to a particular Person, any director, officer, employee, agent, consultant, advisor, or other representative of such Person, including legal counsel, accountants, and financial
advisors. 
  
 Section 1.2 Stock Purchase Closing Condition.
This Agreement is executed concurrently with the execution of the Stock Purchase Agreement but with the intention of the parties that the rights and obligations of the Holders, Purchaser and Merger Sub under this Agreement which pertain to
Crabar/GBF or the Stock Purchase Agreement are conditional upon satisfaction or waiver under the Stock Purchase Agreement of all conditions to the Closing (as defined in the Stock Purchase Agreement). 
  
 Section 1.3 Merger Closing Condition. This Agreement is executed
concurrently with the execution of the Merger Agreement but with the intention of the parties that the rights and obligations of the Holders, Purchaser and Merger Sub under this Agreement which pertain to the Company or the Merger Agreement are
conditional upon satisfaction or waiver under the Merger Agreement of all conditions to the Closing (as defined in the Merger Agreement). 
  
 ARTICLE II 
 INDEMNIFICATION; REMEDIES

  
 Section 2.1 [Intentionally Deleted]. 
  
 Section 2.2 Indemnification And Payment Of Damages By Holders.

  
 (a) Subject to the limitations on the
duration of the following indemnities which are set forth in Section 2.3 hereof, and subject to the limitations on liability set forth in Section 2.4 hereof, the Holders, jointly and severally, agree to indemnify, defend, protect and hold harmless
Purchaser, Merger Sub, and their respective Representatives, 
  

 2 

 stockholders, controlling persons, and affiliates (collectively, the “Indemnified Persons”)
for, and will pay to the Indemnified Persons the amount of any Damages, arising, directly or indirectly, from or in connection with: (i) any breach of any representation or warranty made by the Company in the Merger Agreement; (ii) any breach of a
covenant or other obligation of the Company in the Merger Agreement; (iii) any breach of any representation or warranty made by Crabar/GBF in the Stock Purchase Agreement or made by the Sellers (as defined in the Stock Purchase Agreement); (iv) any
breach of a covenant or other obligation of Crabar/GBF or the Sellers in the Stock Purchase Agreement; or (v) any amounts required to be paid by a Holder under Section 2.7 of the Registration Rights Agreement to be dated as of the Closing Date and
to be made by Purchaser and all of the stockholders of Centrum Acquisition, Inc. 
  
 (b) An Indemnified Person who requests reimbursement from or indemnification from a Holder under this Section 2.2 (a “Claim”)
shall do so with a written statement (a “Claim Notice”) made on behalf of that Indemnified Person by either Purchaser or Merger Sub (the “Claimant”) of the reimbursement or other indemnification which is requested. The Claim
Notice must describe the subject matter of the Claim in reasonable detail. In the event that a Holder disputes the amount of a Claim Notice which has been filed after the first anniversary of the Effective Date, then that Holder may elect to
commence arbitration proceedings under Section 3.4 of this Agreement on the limited subject of the amount of the Claim which should be reserved against the Basket Cap. The Holders shall have no obligation under Section 2.2 with regard to any matter
as to which a Claim Notice is not presented on or before the Final Claim Date. 
  
 (c) In the event an Indemnified Person presents a Claim against the Holders under this Section 2.2 through a Claimant, such Claimant on
behalf of such Indemnified Person shall have the following exclusive remedies: 
  
 (i) To the extent that the Damage covered by the indemnities in this Section 2.2 represents a third party claim, the Claimant must tender
that claim to the Holders and follow the procedures stated in Section 2.6. 
  
 (ii) To the extent that the Damage covered by the indemnities in this Section 2.2 represents a financial loss incurred by the Company, by Crabar/GBF or by a Claimant as to which recovery can be made from insurance
policies held by the Company, by Crabar/GBF or by the Claimant, including policies of title insurance, then the Claimant must use commercially reasonable efforts to recover from that insurance policy before exercising the Claimant’s set-off
rights under Section 2.5, provided that the Claimant shall not be required to commence litigation or assign a claim to a collection agency as part of those efforts to recover from any insurance policy; provided, however, that the Claimant may give
the Company a Claim Notice regarding that Damage to preserve Claimant’s rights against the Company or Crabar/GBF in the event that the policy or policies of insurance do not repay the Damages in full. 
  

 3 

 (iii) To the extent that the Damage covered by the indemnities in this Section 2.2
represents a financial loss incurred by the Company, by Crabar/GBF or by the Claimant as to which a reserve has been specifically established by the Company or Crabar/GBF in their respective financial records prior to the date of this Agreement,
then the Claimant must cause the Company or Crabar/GBF, as the case may be, to apply that reserve to the Damage incurred before exercising the Claimant’s set-off rights under Section 2.5. 
  
 (iv) To the extent that the Damage covered by the
indemnities in this Section 2.2 represents a financial loss incurred by the Company, by Crabar/GBF or by the Claimant as to which no recovery or an insufficient recovery can be made under either clauses (ii) or (iii) above, then the Claimant must
exercise its rights to recover against the Escrow Assets (as defined below) under Section 2.5 and the Escrow Agreement (as defined below), with no right to recover personally from any Holder unless the Damage results from a breach or an alleged
breach which constitutes fraud on the part of that Holder. 
  
 (v) The obligations of Holders under this Section 2.2 are subject to the limitations stated in Section 2.3 and in Section 2.4, including the limitations in Section 2.4(i) that restrict the Claimant from recovering
from Holders personally absent the occurrence of the actions identified in Section 2.4(i). 
  
 (vi) No Claim for Damages for a breach of a representation or warranty set forth in Section 2.8 of the Merger Agreement may be made under
this Agreement unless and until the damages or losses related to breaches of the representations and warranties in that Section exceed the A/R Basket (as defined in the Merger Agreement). No Claim for Damages for a breach of a representation or
warranty set forth in Section 2.9 of the Merger Agreement may be made under this Agreement unless and until the damages or losses related to breaches of the representations and warranties in that Section exceed the Inventory Basket (as defined in
the Merger Agreement). 
  
 (vii) No Claim for
Damages for a breach of a representation or warranty set forth in Section 3.20 of the Stock Purchase Agreement may be made under this Agreement unless and until the damages or losses related to breaches of the representations and warranties in that
Section exceed the Inventory Basket (as defined in the Stock Purchase Agreement). No Claim for Damages for a breach of a representation or warranty set forth in Section 3.21 of the Stock Purchase Agreement may be made under this Agreement unless and
until the damages or losses related to breaches of the representations and warranties in that Section exceed the A/R Basket (as defined in the Stock Purchase Agreement). 
  
 Section 2.3 Time Limitations The obligation of the Holders to accept Claim Notices under this Agreement will expire
on that date which will occur two (2) years after the Effective Time (the “Final Claim Date”). After the Final Claim Date, the Holders will not be required to accept any Claim Notices or other requests for indemnification under this
Agreement. 
  

 4 

 Section 2.4 Deposits into the Escrow Fund; Limitations On Amount—Holders.  
  
 (a) All obligations of the Holders to pay Damages shall be
satisfied solely by recourse to the Escrow Assets. The Holders shall have no personal liability to pay any amounts due under this Agreement, including any and all Damages. 
  
 (b) No Claim shall be made under the provisions of Section 2.2 unless the amount of Damages under such Claim
exceeds Fifty Thousand Dollars ($50,000) (the “Damages Floor”), unless the combined value of Claims which did not exceed the Damages Floor is equal to or in excess of Two Hundred Fifty Thousand Dollars ($250,000), in which case this
condition shall no longer be applicable. 
  
 (c)
In order to secure the payment of the Holders’ obligations under Section 2.2, the Holders shall, on the Effective Time, pledge and deposit three hundred nineteen thousand eight hundred ninety seven (319,897) shares of Purchaser Stock (the
“Pledged Stock”) which would, if the market price of a share was equal to the Purchaser Stock Value, have an aggregate market value equal to Five Million Dollars ($5,000,000), with that deposit to be made an escrow agent to be selected by
Purchaser that is reasonably acceptable to the Holders (the “Escrow Agent”), to be governed in accordance with the Stock Pledge and Escrow Agreement substantially in the form attached hereto as Exhibit A (“Stock Pledge and Escrow
Agreement”). 
  
 (d) In the event that
Purchaser terminates the Merger Agreement in connection with a Fault Termination (as defined in the Stock Purchase Agreement), then the Holders shall not be required to deposit the Pledged Stock; instead, the Purchaser shall deposit the amount of
Two Million Dollars ($2,000,000) (the “Cash Deposit”) with the Escrow Agent to be governed in accordance with the Stock Pledge and Escrow Agreement. The date on which the Cash Deposit or the Pledged Stock shall be deposited with the Escrow
Agent shall be referred to as the “Deposit Date.” 
  
 (e) In the event that the Pledged Stock is deposited in the Stock Pledge and Escrow Agreement, the Pledged Stock shall be the “Escrow Assets.” In the event that the Cash Deposit is deposited in the Stock
Pledge and Escrow Agreement, the Cash Deposit shall be the “Escrow Assets.” 
  
 (f) Notwithstanding the provisions of Section 2.2 to the contrary, the aggregate amount of Damages that may be paid under Section 2.2 for
a Claim or Claims shall be limited to the amount of the Escrow Assets (the “Basket Cap”). 
  
 (g) As of the Final Claim Date, the Holders will no longer be obligated to accept the tender of Claims from the Indemnified Persons.
However, the obligations of the Holders to the Indemnified Persons under Section 2.2 shall continue after the Final Claim Date with regard to Claims that have been properly presented to the Holders prior to the Final Claim Date; provided, however,
that at such time as the amount of Damages paid, reimbursed or otherwise expended by the Holders under this Agreement equals or exceeds the Basket Cap, the Holders shall be relieved of all further obligation under this 
  

 5 

 Agreement and may tender to the Claimant, Merger Sub or Purchaser the defense of all filed Proceedings
and the handling of all Claims which have been previously presented to the Holders under this Agreement. 
  
 (h) With respect to any Claim or matter that may potentially become a Claim (“Pending Matter”), Purchaser and the Claimant shall
take all reasonable steps to mitigate the amount of Damages that may accrue, arise, be assessed or otherwise incurred by any Indemnified Persons with respect to that Claim or Pending Matter; provided, however, the duty to mitigate damages shall not
be construed to require either Purchaser or the Claimant to commence litigation against any party or assign a claim to a collection agency to preserve a Claim or Pending Matter. Purchaser and the Claimant agree that neither of them will take any
actions, directly or indirectly, to provoke or initiate the filing or making of a claim or demand by a third party for the purpose of enabling either of them to file a Claim under this Article 10. 
  
 (i) Notwithstanding anything contained herein to the
contrary, the limitations of liability contained in this Section 2.4 will not apply to: (i) any breach to the extent that such breach is attributable to fraud by the Company; or (ii) any alleged breach to the extent that such alleged breach is
attributable to fraud by the Company. Holders will be jointly and severally liable for all Damages with respect to such breaches and alleged breaches listed in clauses (i) through (ii) above, with neither the Damages Floor nor the Basket Cap to be
applicable to that liability. 
  
 (j)
Notwithstanding any investigation or audit conducted before or after the Closing or the decision of Purchaser to complete the stock purchase, and notwithstanding any investigation or audit conducted before the Effective Time or the decision of
Purchaser to complete the Merger, Purchaser and the Claimant shall be entitled to rely upon the representations and warranties set forth in the Merger Agreement and the Stock Purchase Agreement; provided, however, that in the event that Purchaser or
the Claimant had discovered prior to the Effective Time that any representation or warranty made by the Company or Crabar/GBF was incorrect or inaccurate, and in the event that Purchaser and the Claimant elected to conclude the Merger or the stock
purchase, then the closing of either the Merger or the stock purchase by the Purchaser and the Claimant shall constitute a waiver by Purchaser and the Claimant of any claims for the breach of such representation or warranty as a result of such
inaccuracy or incorrectness. The foregoing proviso shall not apply to the matters identified on attached Schedule 2.4(j) (the “Identified Matters”) which are matters known to Purchaser, Merger Sub and the Holders and which matters the
Holders acknowledge are covered by the indemnification obligations of Holders under this Article 2. 
  
 Section 2.5 Basket; Right Of Set-Off 
  
 (a) In the event that a Claimant determines that the Holders are required to pay amounts to the Claimant under this Agreement other than
an amount described in Section 2.4(i), then the Claimant must elect to set-off that amount against the Escrow Assets rather than to bring an action to recover such amounts from any Holder. In the 
  

 6 

 election of that set-off right, the Claimant shall provide a notice to the Holders specifying in
reasonable detail the basis for such set-off and the amount proposed to be set-off against the Escrow Assets (“Set-Off Demand”). In the event that the Holders do not consent to the Set-Off Demand, within twenty (20) days of Holders’
receipt of the original Set-Off Demand, Holders shall provide the Claimant with notice of the Holders’ refusal to permit the set-off (the “Disagreement Notice”). Holders’ failure to deliver a Disagreement Notice within twenty
(20) days after Holders’ receipt of the original Set-Off Demand shall be considered an express consent by Holders of their obligation to pay the Claimant the amount set forth in the Set-Off Notice, and the Claimant may then set-off that amount
against the Escrow Assets. 
  
 (b) In the event
that the Holders have timely delivered a Disagreement Notice to a Claimant, within twenty (20) days of their receipt of the Disagreement Notice, the Claimant shall notify the Holders either that the Claimant withdraws the Set-Off Demand or elects to
commence arbitration of the Set-Off Demand pursuant to the terms of Section 3.4 of this Agreement. In the event that such arbitration results in a ruling in favor of the Claimant, then the Claimant may set off any amount to which it may be entitled
to payment from the Holders against the Escrow Assets by notice to the Escrow Agent. 
  
 (c) As used herein, the term “Second Year Amount” shall mean either: (A) Two Million Five Hundred Thousand Dollars ($2,500,000),
if the Escrow Assets are the Pledged Stock or (B) One Million Dollars ($1,000,000), if the Escrow Assets are the Cash Deposit. As used herein, the term “First Anniversary Pending Claims” shall mean the dollar value of Claims presented
during the first year after the Deposit Date. For purposes of determining the dollar value of Claims presented during the first year after the Deposit Date, the dollar value of a Claim shall be: (i) if the Claim has been settled, the amount of
Damages for which the Claim was settled; (ii) if the Claim is still pending, the dollar value stated in the Claim Notice. 
  
 (d) The Escrow Agent shall, on the first anniversary of the Deposit Date (or the first business day thereafter if such date is not a
business day), tabulate the First Anniversary Pending Claims. If the Escrow Assets consist of Pledged Stock, then after subtracting the number of shares representing the value of the First Anniversary Pending Claims (based upon the then current
value of the Pledged Stock) from the Pledged Stock, the amount remains is greater than the Second Year Amount, the Escrow Agent shall release that amount of the remaining Pledged Stock as exceeds the Second Year Amount. If the Escrow Assets consist
of the Cash Deposit, less amounts applied by the Escrow Agent, then after subtracting the value of the First Anniversary Pending Claims from the remaining Escrow Assets, the amount remains is greater than the Second Year Amount, the Escrow Agent
shall release that amount of the remaining Escrow Assets as exceeds the Second Year Amount. The Escrow Assets held under the Escrow Agreement shall be the sole and exclusive source of repayment and/or reimbursement of Damages. Dividends paid with
respect to the Pledged Stock shall be paid by the Escrowee to the registered holders of the Pledged Stock. 
  

 7 

 (e) The Escrow Agent shall, on the day following the Final Claim Date, (or the first
business day thereafter if such date is not a business day), tabulate the dollar value of the Claims which are pending as of the Final Claim Date (the “Final Pending Claims”). For purposes of determining the dollar value of Claims pending
as of the Final Claim Date, the dollar value of a Claim shall be: (i) if the Claim has been settled, the amount of Damages for which the Claim was settled; (ii) if the Claim is still pending, the dollar value stated in the Claim Notice; provided,
however, that if a Holder objects to the amount of the dollar value stated in the Claim Notice as of the Final Claim Date as inaccurate, or if a Claimant elects to have the value of a Claim Notice changed, then that Holder or that Claimant can elect
arbitration under Section 11.10 to have a panel of arbitrators determine the correct value of the Claim for purposes of establishing a reserve against the Escrow Assets. If the dollar value of the Final Pending Claims as of the Final Claim Date is
greater than the Escrow Assets as of the Final Claim Date, the difference shall be paid by the Escrow Agent to the Sellers in the amount by which the Escrow Assets exceed the dollar value of the Final Pending Claims. 
  
 Section 2.6 Procedure For Indemnification—Third Party Claims. 

  
 (a) Promptly after receipt by any Indemnified
Person under Section 2.2 of notice of the commencement of any Proceeding against it, such Indemnified Person will, if a Claim is to be made against Holders under this Article 2, give a Claim Notice to the Holders of the commencement of such Claim,
but the failure to deliver a Claim Notice will not relieve the Holders of any liability that they may have to any Indemnified Persons, except to the extent that the Holders demonstrate that the defense of such action is materially prejudiced by the
Indemnified Person’s failure to give such notice. 
  
 (b) In the event that the Indemnified Person elects to tender the defense of the Proceeding to the Holders, then the Holders must accept the defense of that Proceeding and will be required to pay not only all reasonable Enforcement Costs of
that Proceeding but any judgments or settlements that result from the Proceeding. 
  
 (c) The Holders shall not be required to pay or reimburse an Indemnified Person for attorneys’ fees or expenses, litigation
consultant’s fees or expenses or other costs of a Proceeding which are not reasonable under the circumstances. The burden of proof regarding an objection to attorneys’ fees or expenses shall be borne by the person making that objection.

  
 (d) Payment of amounts due from the Holders
to a Claimant under this Section 2.6 shall be made in the following manner: 
  
 (i) Payment of expenses of defending a Proceeding shall be made directly by the Holders within thirty (30) days after receipt of invoices containing detail which is typical for expense billing in a commercial matter
similar to the Proceeding; 
  

 8 

 (ii) Payment of amounts of reasonable attorneys’ and consultants’ fees as
described in Section 2.6(c) may be made by a direct claim against the Escrow Assets with no requirement of arbitration under Section 3.4. Payment of any settlement amount which has been agreed to by the Indemnified Person and the Holders may be made
by a direct claim against the Escrow Assets with no requirement of arbitration under Section 3.4. Payment of any final, non-appealable judgment against an Indemnified Person may be made by a direct set-off against claim against the Escrow Assets
with no requirement of arbitration under Section 3.4. 
  
 (e) Notwithstanding any other provision to the contrary contained in this Agreement, in the case of any asserted liability by any supplier or customer of the Company or a supplier or customer of Crabar/GBF in connection with which Purchaser
a Claimant makes a claim for indemnification, the Claimant may elect to give a Claim Notice with respect thereto and shall have the exclusive right, at the Claimant’s option, to control the defense of such matter, and the Claimants recognize
that the Enforcement Costs which they may incur in that defense shall constitute Damages which shall be paid not by the Holders but by offset against the Escrow Assets. 
  
 (f) Holders hereby consent to the non-exclusive jurisdiction of any court in which a Proceeding is brought
against any Indemnified Person for purposes of any claim that an Indemnified Person may have under this Agreement with respect to such Proceeding or the matters alleged therein, and agree that process may be served on Holders with respect to such a
claim anywhere in the world. 
  
 (g) No Holder
shall, in the defense of any claim or litigation, except with the consent of the Indemnified Person, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the plaintiff or
person making a claim to such Indemnified Person of a complete release from all liability in respect to such claim or litigation without any admission of guilt or wrongdoing. 
  
 ARTICLE III 
 ENFORCEMENT; ARBITRATION 
  
 Section 3.1
Exclusive Remedies. The Purchaser and Merger Sub acknowledge that their sole and exclusive remedy after the Effective Time for any breach of any representation, warranty or covenant by Purchaser and/or the Merger Sub contained in the Merger
Agreement or the Stock Purchase Agreement shall be the indemnification provisions set forth in this Agreement. In furtherance of the foregoing, Purchaser and Merger Sub hereby waive, from and after the Closing under the Stock Purchase Agreement, to
the fullest extent permitted under applicable law, any and all rights, claims and causes of action they may have against the Holders relating to the subject matter of this Agreement arising under or based upon any federal, state, local or foreign
statute, law, ordinance, rule or regulation or otherwise. Purchaser and Merger Sub acknowledge and agree that, with respect to the Company and the Company Subsidiaries (as defined in the Merger Agreement), they have relied and will rely solely upon
the representations, 
  

 9 

 warranties and indemnification rights of Company set forth in the Amended and Restated Stock Purchase Agreement dated
November 10, 2003 made by Rauf Gajiani, Amin Amdani and Centrum Acquisition, Inc. (the “A and G Stock Purchase Agreement”) for the period prior to November 10, 2003 and, accordingly, notwithstanding anything to the contrary contained in
this Agreement, Purchaser and Merger Sub shall have no right to indemnification under this Agreement with respect to any Loss or alleged Loss related to the Company or the Company Subsidiary unless and until they have first exhausted all remedies
and claims under the A and G Stock Purchase Agreement prior to seeking indemnification for a breach by Company of any representations and warranties of the Merger Agreement. 
  
 Section 3.2 Intentionally Deleted. 
  
 Section 3.3 Informal Mediation. In the event of any dispute arising out of or relating to this Agreement or any
agreements contemplated hereby, including any question regarding any such agreement’s existence, validity or termination (collectively referred to herein as a “Dispute”), then prior to filing any arbitration proceeding as provided in
Section 3.4 of this Agreement, party intending to file such a proceeding shall be required to notify the other party or parties in writing of the existence and nature of the Dispute. The party intending to file such a proceeding and the other party
or parties each agree that within twenty (20) business days of the other party or parties’ receipt of such notice, the parties shall meet at the principal office of the Company, or other agreed place, for a minimum of two (2) consecutive eight
(8) hour days in order to attempt to amicably resolve the dispute. If such informal dispute resolution efforts prove to be unsuccessful, the notifying party may initiate arbitration proceedings pursuant to Section 3.4 of this Agreement. 

 
 Section 3.4 Arbitration. In the event of a Dispute that cannot be
resolved pursuant to the procedure in Section 3.3 above, then except as expressly provided in Section 3.2, any dispute or controversy arising between the parties to or in connection with this Agreement involving the interpretation, application
and/or enforcement of any provision of this agreement, or arising out of this Agreement, shall be submitted to for arbitration in Los Angeles, California, to a panel of three arbitrators chosen from the list of arbitrators on Schedule 3.4 attached
hereto, each of whom are members of national accounting firms, and each of whom is qualified and experienced in mergers and acquisitions and/or in the textile industry and who shall be independent of the parties and reasonably experienced in
conducting arbitration proceedings relating to similar matters (“Arbitrators”). Such arbitrators shall be selected by the agreement of the Company and Merger Sub; in the event that the Company and Merger Sub cannot agree on a panel of
three Arbitrators, then the Company shall select one Arbitrator, Merger Sub shall select one Arbitrator and the two Arbitrators selected by the parties shall select the third Arbitrator, with the selection of the Arbitrators by the parties to be
made no later than twenty (20) days after the delivery of a demand by the other party for arbitration (the “Arbitration Notice”). Any designated arbitrator shall not be an agent, employee, shareholder or affiliate of any parties to the
arbitration, but as reasonably possible should be a person with knowledge and experience in the type of dispute existing between the parties. 
  
 (a) The arbitrator or arbitrators shall be directed to identify the prevailing party in the arbitration, and the non-prevailing party
shall be responsible for the costs and 
  

 10 

 expenses incurred in conducting the arbitration proceeding provided for in this Section 3.4, including
reasonable attorneys’ fees and expenses. In the event that the allegations of damages for fraud is determined to be unfounded, the arbitration panel shall assess costs and expenses related to that unfounded allegation against the party making
the same allegation even if that party is the prevailing party on other aspects of the arbitration. For any arbitration resulting from the exercise of Merger Sub’s set-off rights against the Escrow Assets, any obligation of the Holders to pay
attorneys’ fees and expenses must be satisfied by a set-off against the Escrow Assets. 
  
 (b) The decision of the arbitrator or arbitrators shall be final and binding on the parties. 
  
 (c) The exercise by Merger Sub of its right of set-off, and
the resolution by arbitration pursuant to this Section 3.4 over any dispute as to Merger Sub’s right of setoff, shall constitute an election of remedies and limit Merger Sub in the enforcement of any other remedies that may be available to it;
provided however, that Merger Sub shall be entitled to pursue any remedies available to it in any manner in the event of alleged fraud by Sellers. 
  
 ARTICLE IV 
 MISCELLANEOUS

  
 Section 4.1 Designation of Holder Representative. The
Holders do hereby make, constitute and appoint McLinden as attorney-in-fact, giving the attorney-in-fact full power to execute and deliver on behalf the Holders any documents necessary or advisable in connection with the matters set forth in this
Agreement, and to act as the representative of the Holders (the “Holder Representative”) for all matters related to the Merger Agreement, this Agreement, or any documents contemplated in such documents, from and after the Effective Time.
The Holders may, at any time, elect a new Holder Representative by majority vote, in which case they shall deliver written notice to the Purchaser in accordance with the provisions set forth in Section 1.6. 
  
 Section 4.2 Amendment and Modification. This Agreement may be amended,
modified or supplemented only by a written agreement among the Holders, Purchaser and Merger Sub. 
  
 Section 4.3 Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered in
person, by facsimile, receipt confirmed, or on the next business day when sent by overnight courier or on the second succeeding business day when sent by registered or certified mail (postage prepaid, return receipt requested) to the respective
parties at the following addresses (or at such other address for a party as shall be specified by like notice): 
  
 (i) if to the Holders, to: 
  
 John McLinden 
 Centrum Properties, Inc.

 225 W. Hubbard Street 
 4th Floor 
 Chicago, IL 60606 
 Telecopy: (312) 832-2525 
  

 11 

 with a copy to: 
  

Gardner Carton & Douglas LLP 
 191 N.
Wacker Drive 
 Suite 3700 
 Chicago, Illinois 60606-1698 
 Attention: Kenneth Hartmann, Esq. 
 Telecopy: (312) 569-3486 
  
 and 
  
 (ii) if to Purchaser or Merger Sub to: 
  
 Ennis, Inc. 
 2441 Presidential Parkway

 Midlothian, TX 76065 
 Attention: Keith S. Walters 
 Telecopy: (972) 775-8920 
  
 and an additional copy to (but which shall not constitute notice to Purchaser or Merger Sub): 
  
 Kirkpatrick & Lockhart LLP 
 2828 N. Harwood Street 
 Suite 1800

 Dallas, Texas 75201 
 Attention: Norman R. Miller, Esq. 
 Telecopy: (214) 939-4949 
  
 Section 4.4 Binding Effect; Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto prior to the Effective Time
without the prior written consent of the other parties hereto. 
  
 Section 4.5 Governing Law. This Agreement shall be deemed to be made in, and shall be interpreted, construed and governed by and in accordance with the internal laws of, the Laws of the State of Delaware, without regard to principles of
conflicts of law thereof. Each of the Holders, Purchaser and Merger Sub hereby irrevocably and unconditionally consents to submit to the jurisdiction of the federal and state courts located in the City of Dallas, Texas, for any 
  

 12 

 litigation arising out of or relating to this Agreement and the transactions contemplated hereby (and agrees not to
commence any litigation relating thereto except in such courts), waives any objection to the laying of venue of any such litigation in such courts and agrees not to plead or claim in any such court that such litigation brought therein has been
brought in an inconvenient forum. 
  
 Section 4.6 Counterparts.
This Agreement may be executed in one or more counterparts, each of which together be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 Section 4.7 Severability. In case any provision in this Agreement shall be held invalid, illegal or unenforceable in a
jurisdiction, such provision shall be modified or deleted, as to the jurisdiction involved, only to the extent necessary to render the same valid, legal and enforceable, and the validity, legality and enforceability of the remaining provisions
hereof shall not in any way be affected or impaired thereby nor shall the validity, legality or enforceability of such provision be affected thereby in any other jurisdiction. 
  
 Section 4.8 Third Parties. Nothing contained in this Agreement or in any instrument or document executed by any party in
connection with the transactions contemplated hereby shall create any rights in, or be deemed to have been executed for the benefit of, any person or entity that is not a party hereto or thereto or a successor or permitted assign of such a party.

  
 Section 4.9 Termination. This Agreement shall remain in full
force and effect until all obligations for Losses made by the Indemnified Persons or any member thereof are paid in full or the Escrow Assets are exhausted. In the event that the Closing (as defined therein) does not occur under either the Stock
Purchase Agreement or the Merger is not consummated, this Agreement shall become null and void and of no further force or effect, and no Holder (or any of their respective affiliates, directors, officers, agents or representatives) shall have any
liability or obligation hereunder. 
  

 13 

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

							
	 /s/ Roger Brown

	 	 /s/ Laurence Ashkin

	Roger Brown	 	Laurence Ashkin
		
	 /s/ John McLinden

	 	 /s/ Arthur Slaven

	John McLinden	 	Arthur Slaven
		
	ENNIS, INC., a Texas corporation	 	MIDLOTHIAN HOLDINGS LLC, a Delaware limited liability company
				
	By:	 	 /s/ Keith S. Walters

	 	By:	 	 /s/ Keith S. Walters

	Name:	 	Keith S. Walters	 	Name:	 	Keith S. Walters
	Title:	 	Chairman, President and CEO	 	Title:	 	President
	 	 	 	 	 	 	 

  

 14

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