LSB INDUSTRIES, INC. — Director's Dealing 2008

Oct 2, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: LSB INDUSTRIES INC (LXU)
CIK: 0000060714
Period of Report: 2008-10-02

Reporting Person: RHODES HORACE G (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2008-10-02	Common Stock	M	15000	$1.25	Acquired	16000	Direct
2008-10-02	Common Stock	G	15000	—	Disposed	1000	Direct
2008-10-02	Common Stock	G	15000	—	Acquired	15000	Indirect

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-10-02	Nonqualified Stock Option	$1.25	M	15000	Disposed	2009-07-08	Common Stock (15000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	500	Indirect

Footnotes

F1: These shares are held by the reporting person?s revocable trust of which the reporting person is the settlor and trustee and possesses a pecuniary interest in the securities held by the Trust.

F2: 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 co-trustee and possesses a pecuniary interest in the securities held by the Trust.

F3: Nonqualified Stock Option (?NQSO?) to purchase shares of Issuer?s Common Stock granted pursuant to the Issuer?s Outside Directors Stock Option Purchase Plan (the ?1999 Plan?). NQSOs granted under the 1999 Plan may be exercised at any time after six months from the date the NQSO was granted. To the extent not exercised, the NQSO granted under the 1999 Plan terminates (i) upon the tenth anniversary of the date the NQSO was granted, (ii) three years after the cessation of the optionee as a member of the Board of Directors of the Issuer, or (iii) upon the surrender of the Non-Qualified Stock Option Agreement dated July 8, 1999, for cancellation of the NQSO.