Item 1.01. Entry into a Material Definitive Agreement.

See Item 2.03 for a discussion of a loan agreement between a subsidiary of LSB Industries, Inc., and Intrust Bank, N.A.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On July 6, 2009, Prime Financial Corporation ("Prime"), a consolidated subsidiary of LSB Industries, Inc. (the "Company"), borrowed $6 million from Intrust Bank, N.A. ("Intrust"), pursuant to the terms of a Business Loan Agreement between Prime and Intrust ("Loan Agreement").

Under the terms of the Loan Agreement, the loan is payable in 60 monthly payments of principal and interest of $114,866.20 each, with the first payment due on July 13, 2009, and each month thereafter, with the final payment due on June 13, 2014. The rate of interest on the unpaid principal balance of the loan will be 5.5% per annum. If any event of default, as defined in the Loan Agreement, shall occur, Intrust may, at its option, declare the unpaid balance of the loan due and payable. The loan is secured by certain equipment owned by Prime and leased by Prime to other subsidiaries of the Company. The Company has guaranteed the payment obligations of Prime under the Loan Agreement.