LSB INDUSTRIES, INC. — Director's Dealing 2008

Dec 31, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: LSB INDUSTRIES INC (LXU)
CIK: 0000060714
Period of Report: 2008-12-29

Reporting Person: RAPPAPORT LINDA F (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2008-12-29	Common Stock	P	30000	$7.07	Acquired	30000	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	154033	Indirect
Common Stock	46850	Indirect
Common Stock	325729	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
5.5% Convertible Debentures	$	2012-07-01	Common Stock (36400)		Direct
5.5% Convertible Debentures	$	2012-07-01	Common Stock (2098)		Indirect
5.5% Convertible Debentures	$	2012-07-01	Common Stock (24752)		Indirect
Series B Preferred	$		Common Stock (11608)	348	Indirect
Series B Preferred	$		Common Stock (90667)	2720	Indirect
Series D Preferred	$		Common Stock (42500)	170000	Indirect
Series D Preferred	$		Common Stock (3603)	14412	Indirect

Footnotes

F1: These shares are owned of record by the reporting person's spouse. The reporting person disclaims beneficial ownership of these shares, and this report shall not be deemed an admission that the reporting person is the beneficial owner of these shares for any purpose, including Section 16 of the Securities Exchange Act of 1934, as amended.

F2: Golsen Family, L.L.C. ("GFLLC") is owned by Jack E. Golsen, chief executive officer and chairman of the board of the Issuer, through his revocable trust (45.588%), his spouse, Sylvia Golsen through her revocable trust (45.588%), his sons, Barry H. Golsen, a director and the president of the Issuer (2.9413%), and Steven J. Golsen, executive officer of a subsidiary of the Issuer (2.9413%), and his daughter, the reporting person (2.9413%). The reporting person disclaims beneficial ownership of the Issuer securities held by GFLLC, except to the extent of her pecuniary interest therein.

F3: SBL, LLC ("SBL") is owned by GFLLC (49%), Barry Golsen (17%), Steven Golsen (17%), and the reporting person (17%). Golsen Petroleum Corporation ("GPC") is a wholly owned subsidiary of SBL. Voting and dispositive power over the securities held by SBL and GPC is possessed by Jack E. Golsen, who is the chief executive officer and chairman of the board of the Issuer, and Barry H. Golsen, a director and the president of the Issuer. The reporting person disclaims beneficial ownership of the Issuer securities held by SBL, except to the extent of her pecuniary interest therein.

F4: On December 29, 2008, the reporting person purchased a total of 30,000 shares of the Issuer's common stock at the weighted average price per share of $7.07, which is based on the following purchases of the Issuer's common stock at the respective price per share: (a) $7.02 - 600 shares, (b) $7.03 - 1,740 shares, (c) $7.04 - 900 shares, (d) $7.05 - 14,057 shares, (e) $7.06 - 100 shares, (f) $7.09 - 601 shares, and (g) $7.10 - 12,002 shares.

F5: The Issuer's 5.5% Convertible Senior Subordinated Debentures due 2012 (the "Debentures") are convertible at the option of the holder in whole or in part into the Issuer's common stock prior to their maturity. The conversion rate of the Debentures is 36.4 shares of the Issuer's common stock per $1,000 principal amount of debentures (representing a conversion price of $27.47 per share of common stock), subject to adjustment under certain conditions as set forth in the Indenture, dated June 28, 2007 (the "Indenture"), by the Issuer in favor of UMB Bank, N.A., as Trustee, filed as Exhibit 4.2 to the Issuer's Form 8-K on June 29, 2007. The Debentures bear interest at the rate of 5.5% per year and mature on July 1, 2012.

F6: The amount of Issuer securities shown as beneficially owned by the reporting person is based on the reporting person's proportionate ownership in (1) GFLLC, which is comprised of (a) GFLLC's direct ownership of Issuer securities and (b) GFLLC's indirect ownership of Issuer securities through its proportionate ownership in SBL, and (2) SBL, which is comprised of SBL's direct ownership of Issuer securities.

F7: Each share of the Issuer's Series "B" 12% Cumulative Preferred Stock is convertible, at the option of the holder into 33.3333 shares of the Issuer's common stock. Each share is convertible as long as such is outstanding.

F8: The Issuer's Series "D" 6% Cumulative, Convertible Class C Preferred Stock is convertible at the option of the holder into the Issuer's common stock at the rate of four shares of Preferred "D" for one share of common stock. Each share is convertible as long as such is outstanding.