Exhibit 10.1:

First Amendment to Credit Agreement
 
This First Amendment to Credit Agreement (the “Amendment”) dated as of
December 19, 2008, between Oil-Dri Corporation of America (the “Company”) and
Harris N.A. (the “Bank”).
 
Preliminary Statements
 
                 A.The Company and the Bank are parties to a Credit Agreement
dated as of January 27, 2006 (the “Credit Agreement”).  All capitalized terms
used herein without definition shall have the same meanings herein as such terms
are defined in the Credit Agreement.
 
                 B.The Company and the Bank have agreed to amend the Credit
Agreement under the terms and conditions set forth in this Amendment.
 
Section 1.
Amendments.

 
Upon satisfaction of the conditions precedent contained in Section 3 below, the
Credit Agreement shall be and hereby is amended as follows:
 
                 1.1.The definitions of “Adjusted LIBOR,” “Base Rate,” and
“Termination Date” set forth in Section 4.1 of the Credit Agreement
(Definitions) shall each be amended and restated in their entirety to read as
follows:
 
“Adjusted LIBOR” means a rate per annum determined by the Bank in accordance
with the following formula:
 
Adjusted LIBOR =                                      LIBOR                   
       100%-Reserve Percentage
 
“Reserve Percentage” means the maximum reserve percentage, expressed as a
decimal, at which reserves (including, without limitation, any emergency,
marginal, special, and supplemental reserves) are imposed by the Board of
Governors of the Federal Reserve System (or any successor) on “eurocurrency
liabilities”, as defined in such Board’s Regulation D (or any successor
thereto), subject to any amendments of such reserve requirement by such Board or
its successor, taking into account any transitional adjustments thereto.  For
purposes of this definition, the relevant Portions of the Loans shall be deemed
to be “eurocurrency liabilities” as defined in Regulation D without benefit or
credit for any prorations, exemptions or offsets under Regulation D. The Reserve
Percentage shall be adjusted automatically on and as of the effective date of
any change in any such reserve percentage.  “LIBOR” means, for each Interest
Period, (a) the LIBOR Index Rate for such Interest Period, if such rate is
available, and (b) if the LIBOR Index Rate cannot be determined, the arithmetic
average of the rates of interest per annum (rounded upward, if necessary, to the
nearest 1/100th of 1%) at which deposits in U.S. Dollars in immediately
available funds are offered to the Bank at 11:00 a.m. (London, England time) 2
Business Days before the beginning of such Interest Period by 3 or more major
banks in the interbank eurodollar market selected by the Bank for a period equal
to such Interest Period and in an amount equal or comparable to the applicable
LIBOR Portion scheduled to be outstanding from the Bank during such Interest
Period.  “LIBOR Index Rate” means, for any Interest Period, the rate per annum
(rounded upwards, if necessary, to the next higher one hundred-thousandth of a
percentage point) for deposits in U.S. Dollars for a period equal to such
Interest Period, which appears on the LIBOR01 Page as of 11:00 a.m. (London,
England time) on the day 2 Business Days before the commencement of such
Interest Period.  “LIBOR01 Page” means the display designated as “LIBOR01 Page”
on the Reuters Service (or such other page as may replace the LIBOR01 Page on
that service or such other service as may be nominated by the British Bankers’
Association as the information vendor for the purpose of displaying British
Bankers’ Association Interest Settlement Rates for U.S. Dollar deposits).  Each
determination of LIBOR made by the Bank shall be conclusive and binding absent
manifest error.
 
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“Base Rate” means, for any day, the rate per annum equal to the greatest
of:  (a) the rate of interest announced or otherwise established by the Bank
from time to time as its prime commercial rate as in effect on such day, with
any change in the Base Rate resulting from a change in said prime commercial
rate to be effective as of the date of the relevant change in said prime
commercial rate (it being acknowledged and agreed that such rate may not be the
Bank’s best or lowest rate), (b) the sum of (i) the rate determined by the Bank
to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%)
of the rates per annum quoted to the Bank at approximately 10:00 a.m. (Chicago
time) (or as soon thereafter as is practicable) on such day (or, if such day is
not a Business Day, on the immediately preceding Business Day) by two or more
Federal funds brokers selected by the Bank for sale to the Bank at face value of
Federal funds in the secondary market in an amount equal or comparable to the
principal amount for which such rate is being determined, plus (ii) 1/2 of 1%,
and (c) the LIBOR Quoted Rate for such day plus 1.00%.  As used herein, the term
“LIBOR Quoted Rate” means, for any day, the rate per annum equal to the quotient
of (i) the rate per annum (rounded upwards, if necessary, to the next higher one
hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a
one-month interest period which appears on the LIBOR01 Page as of 11:00 a.m.
(London, England time) on such day (or, if such day is not a Business Day, on
the immediately preceding Business Day) divided by (ii) one (1) minus the
Reserve Percentage.
 
“Termination Date” means December 31, 2011, or such earlier date on which the
Revolving Credit Commitment is terminated in whole pursuant to Section 3.4, 8.2
or 8.3 hereof.
 
                 1.2.The pricing grid appearing within the definition of
“Applicable Margin” set forth in Section 4.1 of the Credit Agreement
(Definitions) shall be amended and restated in its entirety to read as follows
(which shall be deemed amended effective as of December 15, 2008):
 
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When Following
Status Exists For
any Margin
Determination
Date
 
Applicable
Margin For
Base Rate
Portion is:
   
Applicable Margin
For LIBOR
Portions is:
   
Applicable
Margin For
Commitment Fee
is:
   
Applicable
Margin For
Letter of
Credit Fee is:
 
Level I Status
    0.0 %     0.375 %     0.15 %     0.375 %
Level II Status
    0.0 %     0.50 %     0.20 %     0.50 %
Level III Status
    0.0 %     0.625 %     0.25 %     0.625 %
Level IV Status
    0.25 %     0.875 %     0.30 %     0.875 %
Level V Status
    0.25 %     1.00 %     0.35 %     1.00 %

 
                 1.3.Section 2.5 of the Credit Agreement (Unavailability of
Deposits or Inability to Ascertain Adjusted LIBOR) shall be amended and restated
in its entirety to read as follows:
 
Section 2.5. Unavailability of Deposits or Inability to Ascertain, or Inadequacy
of, Adjusted LIBOR.  Notwithstanding any other provision of this Agreement or
the Note, if prior to the commencement of any Interest Period, the Bank shall
determine reasonably and in good faith that deposits in the amount of any LIBOR
Portion scheduled to be outstanding during such Interest Period are not readily
available to the Bank in the interbank eurodollar market or, by reason of
circumstances affecting the interbank eurodollar market, adequate and reasonable
means do not exist for ascertaining Adjusted LIBOR or that LIBOR as determined
hereby will not adequately and fairly reflect the cost to the Bank of funding
any LIBOR Portion for such Interest Period or that the making or funding of
LIBOR Portions has become impracticable, then the Bank shall promptly give
notice thereof to the Company and the obligations of the Bank to create,
continue or effect by conversion any such LIBOR Portion in such amount and for
such Interest Period shall be suspended until deposits in such amount and for
the Interest Period selected by the Company shall again be readily available in
the interbank eurodollar market and adequate and reasonable means exist for
ascertaining Adjusted LIBOR.
 
                 1.4.Section 7.17 of the Credit Agreement (Financial Covenants)
shall be amended and restated in its entirety to read as follows:
 
Section 7.17. Financial Covenants. (a) Consolidated Debt Ratio.  The Company
will, as of the last day of each fiscal quarter of the Company, maintain a ratio
of Consolidated Debt to Total Capitalization of less than 0.55 to 1.0.
 
(b) Fixed Charge Coverage Ratio.  The Company will, as of the last day of each
fiscal quarter of the Company, maintain a ratio of (a) Consolidated EBITR for
the four fiscal quarters then ended to (b) Consolidated Fixed Charges for the
same period of four fiscal quarters then ended of greater than 1.50 to 1.0.
 
                 1.5.Exhibit B to the Credit Agreement (Compliance Certificate)
shall be amended and restated in its entirety to read as set forth on Exhibit B
attached hereto and made a part hereof.
 
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Section 2.
Representations.

 
In order to induce the Bank to execute and deliver this Amendment, the Company
hereby represents and warrants to the Bank that (a) each of the representations
and warranties set forth in Section 5 of the Credit Agreement is true and
correct on and as of the date of this Amendment as if made on and as of the date
hereof and as if each reference therein to the Credit Agreement referred to the
Credit Agreement as amended hereby and (b) no Default or Event of Default exists
under the Credit Agreement or shall result after giving effect to this
Amendment.
 
Section 3.
Conditions Precedent.

 
This Amendment shall become effective upon satisfaction of the following
conditions precedent:
 
                 3.1.The Company and the Bank shall have executed and delivered
this Amendment.
 
                 3.2.The Company shall have paid to the Bank on the date hereof
an amendment fee of $30,000, which fee shall be fully earned and nonrefundable
on the date of payment.
 
                 3.3.Each Guarantor shall have executed and delivered its
consent to this Amendment in the space provided for that purpose below.
 
                 3.4.Legal matters incident to the execution and delivery of
this Amendment shall be satisfactory to the Bank and its counsel.
 
Section 4.
Miscellaneous.

 
                 4.1.Except as specifically amended herein, the Credit Agreement
shall continue in full force and effect in accordance with its original
terms.  Reference to this specific Amendment need not be made in the Credit
Agreement, the Note, or any other instrument or document executed in connection
therewith, or in any certificate, letter or communication issued or made
pursuant to or with respect to the Credit Agreement, any reference in any of
such items to the Credit Agreement being sufficient to refer to the Credit
Agreement as amended hereby.
 
                 4.2.The Company agrees to pay on demand all costs and expenses
of or incurred by the Bank in connection with the negotiation, preparation,
execution and delivery of this Amendment.
 
                 4.3.This Amendment may be executed in any number of
counterparts, and by the different parties on different counterpart signature
pages, all of which taken together shall constitute one and the same
agreement.  Any of the parties hereto may execute this Amendment by signing any
such counterpart and each of such counterparts shall for all purposes be deemed
to be an original.  Delivery of executed counterparts of this Amendment by
facsimile transmission or by e-mail transmission of an Adobe portable document
format file (also known as a “PDF” file) shall be effective as an
original.  This Amendment shall be governed by, and construed in accordance
with, the internal laws of the State of Illinois.
 
[Signature Pages to Follow]
 
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This First Amendment to Credit Agreement is dated as of the date first above
written.
 

 
Oil-Dri Corporation of America
       
By
/s/ Daniel S. Jaffee
   
Name: Daniel S. Jaffee
   
Title: President and Chief Executive Officer
       
Harris N.A.
     
By
/s/ Steven M. Marks
   
Name: Steven M. Marks
   
Title: Senior Vice President

 
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Guarantors’ Acknowledgment, Consent, and Reaffirmation
 
Each of the undersigned has heretofore guaranteed the due and punctual payment
of all present and future Obligations pursuant to Section 9 of the Credit
Agreement and hereby consents to the amendment to the Credit Agreement as set
forth above and confirms that all of the obligations of the undersigned
thereunder remain in full force and effect.  Each of the undersigned further
agrees that the consent of the undersigned to any further amendments to the
Credit Agreement shall not be required as a result of this consent having been
obtained.  Each of the undersigned acknowledges that the Bank is relying on the
assurances provided for herein and entering into this First Amendment and
maintaining credit outstanding to the Borrower under the Credit Agreement as so
amended.
 
Oil-Dri Corporation of Georgia
   
Oil-Dri Production Company
           
By
/s/ Charles P. Brissman
   
By
/s/ Charles P. Brissman
 
Name: Charles P. Brissman
     
Name: Charles P. Brissman
 
Title: Vice President
     
Title: Vice President
           
Mounds Production Company, LLC
   
Mounds Management, Inc.
           
By
Mounds Management, Inc.
         
Its Managing Member
                   
By
/s/ Charles P. Brissman
   
By
/s/ Charles P. Brissman
 
Name: Charles P. Brissman
     
Name: Charles P. Brissman
 
Title: Vice President
     
Title: Vice President
           
Blue Mountain Production Company
   
Oil-Dri Corporation of Nevada
           
By
/s/ Charles P. Brissman
   
By
/s/ Charles P. Brissman
 
Name: Charles P. Brissman
     
Name: Charles P. Brissman
 
Title: Vice President
     
Title: Vice President
                   
Taft Production Company
                 
By
/s/ Charles P. Brissman
         
Name: Charles P. Brissman
         
Title: Vice President

 
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Exhibit B
 
Compliance Certificate
 
This Compliance Certificate is furnished to Harris N.A. (the “Bank”) pursuant to
that certain Credit Agreement dated as of January 27, 2006, by and between
Oil-Dri Corporation of America (the “Company”) and the Bank (the “Credit
Agreement”).  Unless otherwise defined herein, the terms used in this Compliance
Certificate have the meanings ascribed thereto in the Credit Agreement.
 
The Undersigned hereby certifies that:
 
                 1.I am the duly elected _____________________________________
of the Company;
 
                 2.I have reviewed the terms of the Credit Agreement and I have
made, or have caused to be made under my supervision, a detailed review of the
transactions and conditions of the Company and its Subsidiaries during the
accounting period covered by the attached financial statements;
 
                 3.The examinations described in paragraph 2 did not disclose,
and I have no knowledge of, the existence of any condition or the occurrence of
any event which constitutes a Default or Event of Default during or at the end
of the accounting period covered by the attached financial statements or as of
the date of this Certificate, except as set forth below;
 
                 4.The financial statements required by Section 7.5 of the
Credit Agreement and being furnished to you concurrently with this certificate
are, to the best of my knowledge, true, correct and complete as of the dates and
for the periods covered thereby; and
 
                 5.The Attachment hereto sets forth financial data and
computations evidencing the Company’s compliance with certain covenants of the
Credit Agreement, all of which data and computations are, to the best of my
knowledge, true, complete and correct and have been made in accordance with the
relevant Sections of the Credit Agreement.
 
 
Described below are the exceptions, if any, to paragraph 3 by listing, in
detail, the nature of the condition or event, the period during which it has
existed and the action which the Company has taken, is taking, or proposes to
take with respect to each such condition or event:
____________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________
 
 
The foregoing certifications, together with the computations set forth in the
Attachment hereto and the financial statements delivered with this Certificate
in support hereof, are made and delivered this _________ day of
__________________ 20___.
 
___________________________________________
         ____________________________, ______________
 (Type or Print Name)                    (Title)            
 
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Attachment to Compliance Certificate
Oil-Dri Corporation of America
 
Compliance Calculations for Credit Agreement
Dated as of January 27, 2006
Calculations as of _____________, 20___
 

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A.
 
Consolidated Debt Ratio (Section 7.17(a))
                         
1.
 
Consolidated Debt as defined
 
   
                     
2.
 
Net Worth
 
   
                     
3.
 
Ratio of Line A1 to A2
             
(“Consolidated Debt Ratio”)
 
______________ to 1.0
                     
4.
 
As listed in Section 7.17(b), for the date of this Certificate, the Consolidated
Debt Ratio shall be less than
 
0.55 to 1.0
                     
5.
 
Company is in compliance?
             
(Circle yes or no) Yes/No
                 
B.
  Fixed Charge Coverage Ratio (Section 7.17(b))                             
1.
 
Net Income
 
   
     
2.
                 
(a)
Interest Expense            __________________
             
(b)
Federal, state, and local taxes      __________________
             
(c)
Lease and rental expense         __________________
                         
3.
 
Sum of Lines 1, 2(a), (b) and (c)
 
  
                     
4.
 
Interest Income
 
  
                     
5.
 
Gains on sales of fixed assets
 
  
                     
6.
 
Sum of Lines 4 and 5
 
  
                     
7.
 
Line 3 minus Line 6
             
(“Consolidated EBITR”)
 
  
                     
8.
 
Sum of Line 2(a) and 2(c)
 
  
                     
9.
 
Line 8 minus line 4
             
(“Consolidated Fixed Charges”)
 
  
                     
10.
 
Ratio of Line 7 to Line 9
 
  
                     
11.
 
As listed in Section 7.17(c), for the date of this Certificate, the Line 10
ratio shall not be greater than
 
1.50:1
                     
12.
 
Company is in compliance?
             
(Circle Yes or No)
 
Yes/No
 

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