LSB INDUSTRIES, INC. — Director's Dealing 2008

Nov 20, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: LSB INDUSTRIES INC (LXU)
CIK: 0000060714
Period of Report: 2008-11-13

Reporting Person: ILLE BERNARD G (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-11-13	Nonqualifed Stock Option	$7.86	A	5000	Acquired	2018-11-13	Common Stock (5000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	5000	Indirect
Common Stock	10000	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Nonqualifed Stock Option	$1.25	2009-07-08	Common Stock (15000)	15000	Direct

Footnotes

F1: These shares are held by the revocable trust of the reporting person?s spouse, of which the reporting person?s spouse is the settlor and trustee. The reporting person shares with his spouse voting and dispositive power over the issuer securities held in his spouse?s revocable trust.

F2: Nonqualified Stock Option (?NQSO?) granted by the Issuer to the reporting person under the Issuer?s Incentive Stock Plans. Each NQSO is for a term of ten years from the date of grant, and the exercise price of each NQSO is based on the fair market value of the Issuer?s common stock on the date of grant. An NQSO for 15,000 shares of the Issuer?s common stock exercisable at $1.25, with an expiration date of July 8, 2009, was granted to the reporting person on July 9, 1999. This NQSO is fully vested. An NQSO for 5,000 shares of the Issuer?s common stock exercisable at $7.86, with an expiration date of November 13, 2018, was granted to the reporting person on November 13, 2008. This NQSO vests at the end of years one through six in the following amounts: 16.5%, 16.5%, 16.5%, 16.5%, 16.5% and 17.5%. This NQSO will be fully vested at the end of year six. As of the date of this report, the total number of shares underlying the two NQSOs is 20,000.