Document:

Exhibit 10.5

OIL-DRI CORPORATION OF AMERICA
 2006 LONG-TERM INCENTIVE PLAN
 DIRECTOR STOCK OPTION AGREEMENT
 for Common Stock

          This Stock Option Agreement (this “Agreement”) is made as of                         [date] (the “Grant Date”), between Oil-Dri Corporation of America (the “Company”), and                                   [grantee name] (the “Participant”).

          WHEREAS, the Company has adopted the Oil-Dri Corporation of America 2006 Long-Term Incentive Plan (the “Plan”), in order to provide an opportunity for directors of the Company to purchase shares of the Company’s Stock; and 

          WHEREAS, the Committee responsible for administration of the Plan has determined to grant an Option to the Participant as provided herein;

          NOW, THEREFORE, the parties hereto agree as follows:

          1.          Grant of Option

                       1.1  The Company hereby grants to the Participant the right and option (the “Option”) to purchase all or any part of an aggregate of                         [number of shares] whole shares of Stock subject to, and in accordance with, the terms and conditions set forth in this Agreement.  “Stock” means Common Stock of the Company, par value $.10 per share.

                       1.2  The Option is not intended to qualify as an Incentive Stock Option within the meaning of Section 422 of the Internal Revenue Code.

                       1.3  This Agreement shall be construed in accordance and consistent with, and subject to, the provisions of the Plan (the provisions of which are incorporated herein by reference); and, except as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have the same definitions as set forth in the Plan.

          2.          Purchase Price.

                       The price at which the Participant shall be entitled to purchase shares upon the exercise of the Option shall be $                        [price] per share, which has been determined to be not less than the Fair Market Value of the Stock on the Grant Date.  

          3.          Duration of Option.

                       The Option shall be exercisable to the extent and in the manner provided herein for a period of ten (10) years from the Grant Date (the “Exercise Term”); provided, however, that the Option may be earlier terminated as provided in Section 6 hereof.

          4.          Exercisability of Option.

                       Unless otherwise provided in this Agreement, the Option shall entitle the Participant to purchase, in whole at any time or in part from time to time, the percentage of the total number of shares covered by the Option specified in the following schedule:

	
  
On or   after each of the following vesting dates
  	
   
 	
  
Cumulative   percentage of Option which may be purchased
  
	
  

  	
  
 
  	
  

  
	
  
[date]
  	
   
 	
  
[%]
  
	
  
[date]
  	
   
 	
  
[%]
  
	
  
[date]
  	
   
 	
  
[%]
  
	
  [date]
  	
   
 	
  
[%]
  
	
  
[date]
  	
   
 	
  
[%]
  

          5.          Manner of Exercise and Payment.

                       5.1  Subject to the terms and conditions of this Agreement and the Plan, the Option may be exercised by delivery of written notice of exercise to the Company, at its principal executive office.  Such notice shall be signed by the Participant and shall state that the Participant is electing to exercise the Option and the number of shares in respect of which the Option is being exercised.

                       5.2  The notice of exercise shall be accompanied by the full purchase price for the shares in respect of which the Option is being exercised, in (i) cash or by check or, if indicated in the notice, such payment shall follow by check from a registered broker acting as agent on behalf of the Participant or (ii) by transferring to the Company shares of Class A Common Stock, Common Stock or Class B Stock  of the Company held by the Participant for at least six months prior to the exercise of the Option and having a Fair Market Value on the date of exercise equal to the cash amount for which such shares are substituted.

                       5.3  Upon receipt of notice of exercise and full payment for the shares of Stock in respect of which the Option is being exercised, the Company shall take such action as may be necessary to effect the transfer to the Participant of the number of shares of Stock as to which such exercise was effective.

                       5.4  The Participant shall not be deemed to be the owner of, or to have any of the rights of an owner with respect to any shares of Stock subject to the Option until (i) the Option shall have been exercised pursuant to the terms of this Agreement, (ii) the Company shall have issued and delivered the shares to the Participant, and (iii) the Participant’s name shall have been entered as a stockholder of record on the books of the Company, whereupon the Participant shall have full voting and other ownership rights with respect to such shares.

          6.          Termination of Employment.

                       6.1   Retirement, Disability or Death.

                       If the Participant’s service as a director of the Company terminates as the result of the Participant’s Retirement from service as a director; or as a result of the Disability of the Participant as defined in the Plan; or upon the death of the Participant, the Option shall become immediately and fully exercisable, except as may be otherwise provided in Section 10 of this Agreement.  The Participant (or a deceased Participant’s legal representative or beneficiary) may exercise the Option at any time within three years after such Retirement, Disability, or death.  Retirement means the Participant’s termination of service as a director that occurs after the completion of three (3) years of service (whether before or after the Grant Date), provided that any interval of less than one (1) year extending
from the date of one annual meeting of stockholders of the Company to the date of the next such meeting shall qualify as one year for this purpose.  

                       6.2          Other Termination of Service.  

                       Generally, if the Participant’s service as a director of the Company terminates for any reason other than those set forth in Section 6.1, the Participant may, at any time within ninety (90) days after such termination, exercise the Option to the extent, but only to the extent, that the Option or portion thereof was exercisable on the date of termination.  However, if the Participant’s service is terminated for Cause, as defined in the Plan, any unexercised portion of the Option shall be immediately forfeited and may not be exercised by the Participant.

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                       6.3  No Extension of Exercise Term.  

                       Notwithstanding the terms of Section 6.1 or 6.2 above or Section 7 below, in no event may the Option be exercised by anyone after the expiration of the Exercise Term.

          7.          Effect of Change of Control.

                       In the event of a Change of Control of the Company, as defined in the Plan, the Option shall become immediately and fully exercisable.  If the Participant’s service as a director terminates for any reason at or after a Change of Control, the Participant may exercise the Option at any time within three years after his or her termination of service. 

          8.          Non-transferability.

                       The Option shall not be transferable other than by will or the laws of descent and distribution or as otherwise permitted by the Plan.  During the lifetime of the Participant the Option shall be exercisable only by the Participant, unless it has been transferred as permitted by the Plan.  

          9.          No Right of Continued Service.

                       Nothing in this Agreement or the Plan shall confer upon the Participant any right with respect to continuance of service as a director of the Company, nor shall this Agreement or the Plan interfere in any way with the right of the stockholders to terminate the Participant’s service as a director in accordance with the Company’s certificate of incorporation and by-laws, as amended.

          10.        Adjustments.

                       Upon the occurrence of various corporate events as described in Section 5.4 of the Plan, the Committee shall make appropriate adjustments to the number or class of shares of Stock subject to the Option and the purchase price for such shares.  The Committee’s adjustment shall be final, binding and conclusive for all purposes of this Agreement.

          11.        Payment of Taxes.

                       The Participant shall be solely responsible for the payment of the federal, state and local income and self-employment taxes and other amounts as may be required by law  

          12.        Participant Bound by the Plan.

          The Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof.  

          13.        Modification of Agreement.

                       This Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, but only by a written instrument executed by the parties hereto.

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          14.          Severability.

                        Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms.

          15.          Governing Law.

                        The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Delaware without giving effect to the conflicts of laws principles thereof.

          16.          Successors in Interest.

                        This Agreement shall inure to the benefit of and be binding upon any successor to the Company.  This Agreement shall inure to the benefit of the Participant’s legal representatives or, if applicable, a transferee and the transferee’s legal representatives.  Except as otherwise provided herein or in the Plan, all obligations imposed upon the Participant and all rights granted to the Company under this Agreement shall be final, binding and conclusive upon any transferee and upon the Participant’s or transferee’s heirs, executors, administrators and successors.

          17.          Resolution of Disputes.

                        Any dispute or disagreement which may arise under, or as a result of, or in any way relate to, the interpretation, construction or application of this Agreement shall be determined by the Committee.  Any determination made hereunder shall be final, binding and conclusive on the Participant and Company for all purposes.

	
  
 
  	
  
OIL-DRI CORPORATION OF AMERICA
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
   
 
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Participant
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
   
  	
   
  	
  Name of   Transferee (if applicable)
  

4Exhibit 10.6

OIL-DRI CORPORATION OF AMERICA
 2006 LONG-TERM INCENTIVE PLAN
 RESTRICTED STOCK AGREEMENT
 for Class A Common Stock

          Subject to the terms and conditions of this Agreement and the Oil-Dri Corporation of America 2006 Long Term Incentive Plan (the “Plan”), Oil-Dri Corporation of America (the “Company”) hereby grants                        [grantee name] (hereafter referred to as “You”) a grant of shares of restricted Stock, effective as of                         [date] (the “Grant Date”). “Stock” means Class A Common Stock or if no Class A Common Stock is issued and publicly traded on the New York Stock Exchange or any other national stock exchange or national market system, then Common Stock, of the Company, par value $.10 per
share.  

          1.          Number of Shares.  This grant of shares of restricted Stock shall consist of                         [number of shares] shares (the “Restricted Shares”) of Stock, of the Company.

          2.          No Payment for Shares of Restricted Stock.  No per share purchase price is required to be paid by You for the Restricted Shares.

          3.           Vesting.  All restrictions applicable to the Restricted Shares under this Agreement shall lapse, and such Restricted Shares shall vest, according to the following schedule, unless forfeited pursuant to Section 5. below:

	
  
On or   after each of the following vesting dates
  	
   
 	
  
Cumulative   percentage of Restricted Shares vested
  
	
  

  	
   
 	
  

  
	
  
[date]
  	
   
 	
  
[%]
  
	
  
[date]
  	
   
 	
  
[%]
  
	
  
[date]
  	
   
 	
  
[%]
  
	
  
[date]
  	
   
 	
  
[%]
  
	
  [date]
  	
   
 	
  
[%]
  

          4.          Escrow.  Until your Restricted Shares have vested pursuant to Section 3 above, such shares shall be held in escrow by the Treasurer of the Company (the “Escrow Agent”).  The Escrow Agent will hold the Restricted Shares until directed by the Company to distribute the Restricted Shares (i) to the Company upon receipt of written authorization from the Company indicating that the Restricted Shares have been forfeited in accordance with the terms of this Agreement, or (ii) to You upon receipt of written authorization from the Company indicating that the restrictions have lapsed in accordance with the terms of this Agreement.

          5.          Forfeiture of Unvested Shares.  If, for any reason, your service as an employee terminates at any time before a vesting date, all Restricted Shares that have not yet vested as of the date of such termination shall be forfeited.  In such event, You will sign any document and take any other action required to assign the Restricted Shares back to the Company.

          6.          Ownership Rights.  As a holder of Restricted Shares, You are generally entitled to all voting and ownership rights of a holder of Stock, including the right to receive any dividends, including Stock dividends, which may be paid to holders of Stock, provided, however, that any shares of Stock received by you as a result a Stock dividend or other adjustment in capitalization shall be subject to the same risk of forfeiture, certificate delivery provisions and restrictions on transfer as the forfeitable Restricted Shares in respect of which they are issued and shall become Restricted Shares for the purposes of this Agreement, and  provided further that any dividend paid with respect to unvested Restricted Shares for which an election under Section 83(b) of the Code has not been made (i) constitutes compensation income
subject to all applicable tax withholding and (ii) shall be paid on or about the date that such dividend is paid to holders of the Company’s Stock generally.

          7.          Stock Certificates.  Stock certificates evidencing the Restricted Shares shall be issued as of the Grant Date, shall be registered in your name, shall bear a legend referring to the restrictions applicable to the Restricted Shares, and shall be held in escrow by the Treasurer of the Company.  You shall, simultaneously with execution of this Agreement, execute and deliver in blank a stock power to facilitate the transfer of the Restricted Shares in the event of a forfeiture of the Restricted Shares. Subject to Section 10 of this Agreement, applicable stock certificates representing Restricted Shares as to which restrictions have lapsed as of any Vesting Date will be delivered to You as soon as practicable after such Vesting Date.

          8.          No Right to Remain as an Employee.  Neither the existence of the Plan nor the grant of this Restricted Stock shall obligate the Company to retain You as an employee.

          9.          Shares Non-transferable.  The Restricted Shares are not transferable until such shares become non-forfeitable.

          10.          Taxes.  The Company is not required to issue certificates for unrestricted shares of Stock upon any Vesting Date unless You (or your estate or personal representative) first pay to the Company such amount, if any, as it may request to satisfy any liability it may have to withhold federal, state, or local income or other taxes relating to the Restricted Shares which vest on such Vesting Date.  The Company shall have the right to take such other action as may be necessary or appropriate to satisfy any tax withholding obligations.

          11.  Incorporation of Plan.  The Plan is an integral part of, and is incorporated by reference in, this Agreement.  Any capitalized terms not defined in this Agreement shall have the meanings specified in the Plan.

          12.  Amendments.  This Agreement may be amended only by a writing executed by the Company and You which specifically states that it amends this Agreement.  The Board can amend the Plan as provided therein, except that no such amendment shall adversely affect your rights under this Agreement without your consent.

          13.          Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its Treasurer.  Any notice to be given to You shall be addressed to You at the address listed in the Company’s records.  By a notice given pursuant to this Section, either party may designate a different address for notices.  Any notice shall have been deemed given when actually delivered.

          14.          Severability.  If any part of this Agreement is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not serve to invalidate any part of the Agreement not declared to be unlawful or invalid.  Any part so declared unlawful or invalid shall, if possible, be construed in a manner which gives effect to the terms of such part to the fullest extent possible while remaining lawful and valid.

          15.          Applicable Law.  This Agreement shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of Delaware.

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          16.          Headings.  Headings in this Agreement are provided for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

*     *     *     *

Please indicate your acceptance of this Agreement by signing the enclosed copy in the space provided below and returning to the Treasurer of the Company, the signed copy of this Agreement and a stock power executed by You in blank.  Please do so at your earliest convenience, and in any event within 10 days after the date of this Agreement.

	
  
 
  	
  
OIL-DRI   CORPORATION OF AMERICA
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
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ACCEPTED AND   AGREED:
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  
 
  	
  
 
  
	
  
Participant
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
Date:   ____________________
  	
  
 
  	
  
 
  

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