LSB INDUSTRIES, INC. — Director's Dealing 2008

Nov 18, 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: ADAMS MICHAEL G (VP/Corporate Controller)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-11-13	Incentive Stock Option	$7.86	A	15000	Acquired	2018-11-13	Common Stock (15000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	11304	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Incentive Stock Option	$2.73	2011-11-29	Common Stock (10000)	10000	Direct

Footnotes

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

F2: Incentive Stock Option ("ISO") granted by the Issuer to the reporting person under the Issuer's Incentive Stock Option Plans. Each ISO is for a term of ten years from the date of grant. An ISO for 10,000 shares of the Issuer's common stock exercisable at $2.73, with an expiration date of November 29, 2011, was granted to the reporting person on November 29, 2001. This ISO is fully vested. An ISO for 15,000 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 ISO 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 ISO 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 ISOs is 25,000.