|   |   | SCHEDULES    |    |                                              |
|--------|--------|--------------|--------------|---------------------------------------------------|
|   |   |         |         |
|   |   | 1.01(a)      |         | Cherokee      Site                                |    |   |
|   |   | 1.01(b)      |         | El      Dorado Site                               |    |   |
|   |   | 1.01(c)      |         | Facility      Assets                              |    |   |
|   |   | 1.01(d)      |         | Lenders      and Lending Offices                  |    |   |
|   |   | 2.01         |         | Commitments      and Applicable Percentages       |    |   |
|   |   | 4.01(a)(iii) |         | Financing      Statements                         |    |   |
|   |   | 4.01(a)(iv)  |         | Leased      Property                              |    |   |
|   |   | 5.03         |         | Government      Authorizations and Other Consents |    |   |
|   |   | 5.05         |         | Indebtedness                                      |    |   |
|   |   | 5.06         |         | Litigation                                        |    |   |
|   |   | 5.09         |         | Environmental      Matters                        |    |   |
|   |   | 5.13         |         | Subsidiaries                                      |    |   |
|   |   | 5.18         |         | IP      Rights                                    |    |   |
|   |   | 5.21         |         | Pipelines                                         |    |   |
|   |   | 5.22         |         | Material      Contracts                           |    |   |
|   |   | 5.23         |         | Permits                                           |    |   |
|   |   | 5.27         |         | Labor      Matters                                |    |   |
|   |   | 7.01(b)      |         | Existing      Liens                               |    |   |
|   |   | 7.02         |         | Existing      Indebtedness and Guarantees         |    |   |
|   |   | 7.03         |         | Existing      Investments                         |    |   |
|   |   | 7.05         |         | Facility      Leases/Uses                         |    |   |
|   |   | 7.08         |         | Affiliate      Transactions                       |    |   |
|   |   | 7.09         |         | Burdensome      Agreements                        |    |   |
|   |   | 11.02        |         | Addresses      for Notices; Payment Information   |    |   |

|     |         |   |   |                                                  |         |   |
|--------------------|--------------|--------|--------|-------------------------------------------------------|--------------|--------|
| EXHIBITS           |    |   |
|               |         |   |
|               |         | A      |   | Term      Note                                        |    |   |
|               |         | B      |   | Compliance      Certificate                           |    |   |
|               |         | C      |   | Borrowing      Notice                                 |    |   |
|               |         | D      |   | Assignment      and Assumption                        |    |   |
|               |         | E      |   | Security      Agreement                               |    |   |
|               |         | F-1    |   | Cherokee      Mortgage                                |    |   |
|               |         | F-2    |   | El      Dorado Mortgage                               |    |   |
|               |         | G      |   | Assignment      and Consent Agreement                 |    |   |
|               |         | H-1    |   | Intercompany      Lease Subordination Agreement       |    |   |
|               |         | H-2    |   | Intercompany      Loan Subordination Agreement        |    |   |
|               |         | I      |   | Management      Agreement Subordination               |    |   |
|               |         | J-1    |   | Opinion      Matters – Counsel to Loan Parties  |    |   |
|               |         | J-2    |   | Opinion      Matters – Local Counsel (Alabama)  |    |   |
|               |         | J-3    |   | Opinion      Matters – Local Counsel (Arkansas) |    |   |
|               |         | K      |   | Inter-Lender      Agreement                           |    |   |
|               |         | L      |   | Assignment      and Subordination Agreement           |    |   |
|               |         | M      |   | Trademark      Security Agreement                     |         |   |

----

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| 1.   | Cherokee      Mortgage filed in the real property records of the Probate Office (County      Clerk) of Colbert County, Alabama. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Financing      Statement filed in the Probate Office (County Clerk) of Colbert County,      Alabama naming Collateral Agent, as secured party, and Cherokee Nitrogen      Company (“CNC”) and Cherokee Nitrogen Holdings, Inc. (“CNH”), as debtors,      covering the Collateral with respect to CNC and  CNH. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Financing      Statement filed in the Office of the County Clerk of Oklahoma County,      Oklahoma naming Collateral Agent, as secured party, and CNH, Northwest      Financial Corporation (“NWF”), CNC, DSN Corporation (“DSN”) and El Dorado      Chemical Company (“EDC”), as debtors, covering the Collateral with respect      to CNH, NWF, CNC, DSN and EDC. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | El      Dorado Mortgage filed in the real property records of the Office of the      Circuit Clerk and Ex-Officio Recorder of Union County,      Arkansas. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Financing      Statement filed in the Office of the Circuit Clerk and Ex-Officio Recorder      of Union County, Arkansas, naming Collateral Agent, as secured party, and      NWF, EDC, and DSN, as debtors, covering the Collateral with respect to      NWF, EDC and DSN. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Trademark      Security Agreement filed in the United States Patent and Trademark Office      made by EDC in favor of Collateral Agent covering the trademarks owned by      EDC. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 1.   | Filing      of UCC-1 Financing Statements, Mortgages, and Trademark Security Agreement      referenced on Schedule4.01(a)(iii). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Consent      of Wells Fargo Foothill, Inc. and Persons party to the Assigned      Agreements. |
|----------------|-----------------------------------------------------------------------------------------------|

| 3.   | Filing      of UCC-3 ContinuationStatements. |
|----------------|----------------------------------------------|

----

| 1.   | El      Dorado Chemical Company (“EDC”) is indebted to the    following: |
|----------------|--------------------------------------------------------------------------------------|

| a.   | ThermaClime,      Inc. (“TCI”) in the principal amount of  $35,593,138. |
|----------------|-------------------------------------------------------------------------------------|

| b.   | LSB      Chemical Corp. (“LSB Chemical”) in the principal amount of      $2,098,787. |
|----------------|--------------------------------------------------------------------------------------------------|

| 2.   | Trison      Construction, Inc. (“Trison”) is indebted to TCI in the principal amount      of $6,364,700 less $2,500,0001. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | International      Environmental Corporation (“IEC”) is indebted to the      following: |
|----------------|-----------------------------------------------------------------------------------------------------|

| a.   | Amada      Capital Corporation in the amount of$57,714. |
|----------------|---------------------------------------------------------|

| b.   | ThermaClime      Technologies, Inc. (“TTI”) in the principal amount of      $779,221. |
|----------------|---------------------------------------------------------------------------------------------------|

| 4.   | ClimateCraft,      Inc. (“CLC”) is indebted to thefollowing: |
|----------------|--------------------------------------------------------------------------|

| a.   | The      City of Oklahoma City in the amount of  $2,450,000. |
|----------------|--------------------------------------------------------------|

| b.   | TCI      in the principal amount of $6,947,768 less $5,200,0001. |
|----------------|------------------------------------------------------------------|

| c.   | Summit      Machine Tool Manufacturing Corp. in the principal amount of      $715,719. |
|----------------|----------------------------------------------------------------------------------------|

| 5.   | TCI      is indebted to the following: |
|----------------|----------------------------------------|

| a.   | IEC      in the principal amount of$76,297,857. |
|----------------|-------------------------------------------------|

| b.   | The      Climate Control Group, Inc. (“CCG”) in the principal amount of      $3,104,268. |
|----------------|------------------------------------------------------------------------------------------------------|

| c.   | Climate      Master, Inc. (“CLM”) in the principal amount of    $40,537,986. |
|----------------|------------------------------------------------------------------------------------------|

| d.   | Koax      Corp. (“Koax”) in the principal amount of  $22,811,075. |
|----------------|-------------------------------------------------------------------------------|

| e.   | Chemex      I Corp. (“Chemex I”) in the principal amount of  $276,944. |
|----------------|------------------------------------------------------------------------------------|

| f.   | Chemex      II Corp. (“Chemex II”) in the principal amount of    $1,484,718. |
|----------------|------------------------------------------------------------------------------------------|

| g.   | Northwest      Financial Corporation in the principal amount of    $13,328,828. |
|----------------|---------------------------------------------------------------------------------|

| h.   | CEPOLK      Holdings, Inc. in the principal amount of  $3,898,523. |
|----------------|--------------------------------------------------------------------|

| i.   | El      Dorado Nitrogen, L.P. in the principal amount of    $25,734,720. |
|----------------|--------------------------------------------------------------------------|

| j.   | LSB      Industries, Inc. (“LSB”) in the principal amount of $36,287,224 and      $962,398 in interest. |
|----------------|---------------------------------------------------------------------------------------------------------------------|

| k.   | Holders      (LSB) of 10-3/4% Senior Unsecured Notes due 2007 in the principal amount      of $6,950,000. |
|----------------|-----------------------------------------------------------------------------------------------------------|

| 6.   | Cherokee      Nitrogen Company (“CNC”) is indebted to the following      companies: |
|----------------|-------------------------------------------------------------------------------------------------|

| a.   | TCI      in the principal amount of$10,604,163. |
|----------------|-------------------------------------------------|

| b.   | EDC      in the principal amount of$2,438,209. |
|----------------|------------------------------------------------|

----

  

----

| 7.   | LSB      Chemical is indebted to the followingcompanies: |
|----------------|----------------------------------------------------------|

| a.   | TCI      in the principal amount of $24,187,624 plus $4,500,0001 . |
|----------------|-------------------------------------------------------------------------|

| b.   | DSN      Corporation (“DSN”) in the principal amount of  $275,773. |
|----------------|--------------------------------------------------------------------------------|

| 8.   | DSN      is indebted to TCI in the principal amount of $18,784,414 less      $4,500,0001. |
|----------------|-------------------------------------------------------------------------------------------|

| 9.   | XpediAir,      Inc. (“XPA”) is indebted to TCI in the principal amount of $1,768,968 less      $1,900,0001. |
|----------------|-------------------------------------------------------------------------------------------------------------------------|

| 10.   | CCG      is indebted to LSB in the principal amount of  $228,321. |
|-----------------|-------------------------------------------------------------------|

| 11.   | TTI      is indebted to TCI in the principal amount of $3,548,796 less      $2,700,0001. |
|-----------------|------------------------------------------------------------------------------------------|

| 12.   | ClimaCool      Corp. (“CCC”) is indebted to TCI in the principal amount of $3,450,175      less $2,300,0001. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| 13.   | Chemex      I is indebted to the followingcompanies: |
|-----------------|------------------------------------------------------|

| (a)   | LSB      Chemical in the principal amount of $385,282 less $150,0001. |
|-----------------|-----------------------------------------------------------------------|

| (b)   | Chemex      II in the principal amount of $348. |
|-----------------|-------------------------------------------------|

| 14.   | Cherokee      Nitrogen Holdings, Inc. is indebted to LSB in the principal amount of      $61,899,327. |
|-----------------|-------------------------------------------------------------------------------------------------------|

| 15.   | TCI      has accrued $1,940,175 for payroll, taxes, insurance other      expenses. |
|-----------------|------------------------------------------------------------------------------------|

| 16.   | IEC      has accrued $4,247,406 for payroll, taxes and other    expenses. |
|-----------------|---------------------------------------------------------------------------|

| 17.   | TTI      has accrued $245,358 for payroll, taxes and other  expenses. |
|-----------------|-----------------------------------------------------------------------|

| 18.   | Koax      has accrued $125,735 for payroll, taxes and other  expenses. |
|-----------------|------------------------------------------------------------------------|

| 19.   | CLM      has accrued $ 10,231,111 for payroll, taxes and other      expenses. |
|-----------------|-------------------------------------------------------------------------------|

| 20.   | CLC      has accrued $ 1,143,698 for payroll, taxes and other    expenses. |
|-----------------|----------------------------------------------------------------------------|

| 21.   | XPA      has accrued $66,966 for payroll, taxes and other  expenses. |
|-----------------|----------------------------------------------------------------------|

| 22.   | Trison      has accrued $105,893 for payroll, taxes and other  expenses. |
|-----------------|--------------------------------------------------------------------------|

| 23.   | CCC      has accrued $408,394 for payroll, taxes and other  expenses. |
|-----------------|-----------------------------------------------------------------------|

----

  

----

| 24.   | LSB      Chemical has accrued $33,737 for payroll, taxes and other      expenses. |
|-----------------|-----------------------------------------------------------------------------------|

| 25.   | EDC      has accrued $3,284,122 for payroll, taxes and other    expenses. |
|-----------------|---------------------------------------------------------------------------|

| 26.   | Chemex      I $492,052 for payroll, taxes and other  expenses. |
|-----------------|----------------------------------------------------------------|

| 27.   | CNC      has $466,714 for payroll, taxes and other  expenses. |
|-----------------|---------------------------------------------------------------|

| 28.   | TCI      has accounts payable in the amount of$457,490. |
|-----------------|---------------------------------------------------------|

| 29.   | CLM      has accounts payable in the amount of  $10,393,220. |
|-----------------|--------------------------------------------------------------|

| 30.   | IEC      has accounts payable in the amount of  $5,951,735. |
|-----------------|-------------------------------------------------------------|

| 31.   | TTI      has accounts payable in the amount of  $1,686,575. |
|-----------------|-------------------------------------------------------------|

| 32.   | CLC      has accounts payable in the amount of$947,479. |
|-----------------|---------------------------------------------------------|

| 33.   | Trison      has accounts payable in the amount of$495,550. |
|-----------------|------------------------------------------------------------|

| 34.   | Koax      has accounts payable in the amount of$254,471. |
|-----------------|----------------------------------------------------------|

| 35.   | LSB      Chemical has accounts payable in the amount of  $31,429. |
|-----------------|-------------------------------------------------------------------|

| 34.   | EDC      has accounts payable in the amount of  $8,929,336. |
|-----------------|-------------------------------------------------------------|

| 35.   | CNC      has accounts payable in the amount of  $3,821,811. |
|-----------------|-------------------------------------------------------------|

----

  

----

----

| A.   | ITEMS      DISCUSSED IN PARENT’S FORM 10Q FOR THE PERIOD ENDING JUNE 30,      2007 |
|----------------|------------------------------------------------------------------------------------------|

----

----

| B. | OTHER      DISCLOSURES |
|----|------------------------|

----

| 1.   | ThermaClime,      Inc., a Borrower |
|----------------|------------------------------------|

| 2.   | Northwest      Financial Corporation, a Borrower |
|----------------|--------------------------------------------------|

| 3.   | LSB      Chemical Corp., a Borrower |
|----------------|-------------------------------------|

| 4.   | El      Dorado Chemical Company, a Borrower |
|----------------|---------------------------------------------|

| 5.   | Chemex      I Corp., a Borrower |
|----------------|---------------------------------|

| 6.   | DSN      Corporation, a Borrower |
|----------------|----------------------------------|

| 7.   | Chemex      II Corp., a Borrower |
|----------------|----------------------------------|

| 8.   | El      Dorado Nitric Company |
|----------------|-------------------------------|

| 9.   | El      Dorado Acid, L.L.C. |
|----------------|-----------------------------|

| 10.   | El      Dorado Acid II, L.L.C. |
|-----------------|--------------------------------|

| 11.   | El      Dorado Nitrogen, L.P. |
|-----------------|-------------------------------|

| 12.   | XpediAir,      Inc., a Borrower |
|-----------------|---------------------------------|

| 13.   | International      Environmental Corporation, aBorrower |
|-----------------|---------------------------------------------------------|

| 14.   | Climate      Master, Inc., a Borrower |
|-----------------|---------------------------------------|

| 15.   | The      Climate Control Group, Inc., aBorrower |
|-----------------|-------------------------------------------------|

| 16.   | ClimateCraft,      Inc., a Borrower |
|-----------------|-------------------------------------|

| 17.   | ThermaClime      Technologies, Inc., a Borrower |
|-----------------|-------------------------------------------------|

| 18.   | CEPOLK      Holdings, Inc. |
|-----------------|----------------------------|

| 19.   | ClimaCool      Corp., a Borrower |
|-----------------|----------------------------------|

| 20.   | Trison      Construction, Inc., a Borrower |
|-----------------|--------------------------------------------|

| 21.   | Koax      Corp., a Borrower |
|-----------------|-----------------------------|

| 22.   | Cherokee      Nitrogen Company, a Borrower |
|-----------------|--------------------------------------------|

| 23.   | Prime      Financial Corporation |
|-----------------|----------------------------------|

| 24.   | Prime      Holdings Corporation |
|-----------------|---------------------------------|

| 25.   | Northwest      Capital Corporation |
|-----------------|------------------------------------|

| 26.   | LSB      Holdings, Inc. |
|-----------------|-------------------------|

| 27.   | LSB-Europa      Limited |
|-----------------|-------------------------|

| 28.   | Summit      Machine Tool Inc. Corp. |
|-----------------|-------------------------------------|

| 29.   | Cherokee      Nitrogen Holdings, Inc., a Borrower |
|-----------------|---------------------------------------------------|

| 30.   | ClimateCraft      Technologies, Inc. |
|-----------------|--------------------------------------|

| 31.   | Summit      Machine Tool Manufacturing Corp. |
|-----------------|----------------------------------------------|

| 32.   | Summit      Machinery Company |
|-----------------|-------------------------------|

| 33.   | Pryor      Plant Chemical Company |
|-----------------|-----------------------------------|

| 34.   | Hercules      Energy Mfg. Corporation |
|-----------------|---------------------------------------|

----

| 1.   | CEPOLK      Holdings, Inc., a subsidiary of ThermaClime, Inc., is the sole limited      partner of, and owns a fifty percent (50%) interest in, CEPOLK Limited      Partnership. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Summit      Machinery Company, a subsidiary of Parent, owns a 50% of the value of KAC      Acquisition Company, an Oklahoma corporation, the value of which is de      minimis. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | ThermaClime, Inc.      (“TCI”).  The total authorized capital stock of TCI is      500,000 shares of common stock.  The total outstanding shares of      capital stock is 10,000, of which LSB owns 9,500 shares (95% ownership)      and Prime Financial Corporation (“PFC”) owns 500 shares (5%      ownership). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Northwest Financial      Corporation (“NWF”).  The total authorized capital stock      of NWF is 100  shares of common stock.  The total      outstanding shares of capital stock is 54 which is owned 100% by      TCI. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | LSB Chemical Corp.      (“LSBCC”).  The total authorized capital stock of LSBCC      is 50 shares of common stock.  The total outstanding shares of      capital stock is 50 which is owned 100% byTCI. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | El Dorado Chemical      Company (“EDC”).  The total authorized capital stock of      EDC is 25,000 shares of common stock.  The total outstanding      shares of capital stock is 1,000 which is owned 100% by    LSBCC. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Chemex I Corp.      (“Chemex I).  The total authorized capital stock of      Chemex I is 10,000 shares of common stock.  The total      outstanding shares of capital stock is 1,000 which is owned 100% by      EDC. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | DSN Corporation      (“DSN”).  The total authorized capital stock of DSN is      50,000 shares of common stock.  The total outstanding shares of      capital stock is 1,000 which is owned 100% by  LSBCC. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Chemex II Corp.      (“Chemex II).  The total authorized capital stock of      Chemex II is 10,000 shares of common stock.  The total      outstanding shares of capital stock is 1,000 which is owned 100% by      LSBCC. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | XpediAir, Inc.      (“XPA”).  The total authorized capital stock of XPA is      500,000 shares of common stock.  The total outstanding shares of      capital stock is 10,000 which is owned 100% by  TCI. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | International      Environmental Corporation (“IEC”).  The total authorized      capital stock of IEC is 300 shares of common stock.  The total      outstanding shares of capital stock is 300 which is owned 100% by      TCI. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.   | Climate Master, Inc.      (“CLM”).  The total authorized capital stock of CLM is      1,000 shares of common stock.  The total outstanding shares of      capital stock is 1,000 which is owned 100% by  TCI. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | The Climate Control      Group, Inc. (“CGG”).  The total authorized capital stock      of CCG is 100,000 shares of common stock.  The total outstanding      shares of capital stock is 10,000 which is owned 100% by    TCI. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | ClimateCraft, Inc.      (“CLC”).  The total authorized capital stock of CLC is      1,000, of which 900 shares are Class A voting common stock and 100 shares      are Class B non-voting common stock.  The total outstanding      shares of both classes of common stock combined is 1,000 which is owned      100% by TCI. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | ThermaClime      Technologies, Inc. (“TTI”).  The total authorized capital      stock of TTI is 500,000 shares of common stock.  The total      outstanding shares of capital stock is 10,000 which is owned 100% by      TCI. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.   | ClimaCool Corp.      (“CCC”).  The total authorized capital stock of CCC is      50,000 shares of common stock.  The total outstanding shares of      capital stock is 1,000 which is owned 100% by  TCI. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | Trison Construction,      Inc. (“Trison”).  The total authorized capital stock of      Trison is 500,000 shares of common stock.  The total outstanding      shares of capital stock is 10,000 which is owned 100% by    TCI. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.   | Koax Corp.      (“Koax”).  The total authorized capital stock of Koax is      50 shares of common stock.  The total outstanding shares of      capital stock is 50 which is owned 100% byTCI. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.   | Cherokee Nitrogen      Company (“CNC”).  The total authorized capital stock of      CNC is 500,000 shares of common stock.  The total outstanding      shares of capital stock is 10,000 which is owned 100% by    TCI. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.   | Cherokee Nitrogen      Holdings, Inc. (“CNH”).  The total authorized capital      stock of CNH is 500,000 shares of common stock.  The total      outstanding shares of capital stock is 10,000 which is owned 100% by LSB      Holdings, Inc. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

1

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|  Patent |  App./Reg.      No. | Place      ofRegistration | IssueDate |
|--------------|--------------------------|---------------------------|-----------|

| “Water-Cooled      Air ConditioningSystem      Using Condenser WaterRegeneration      for Precise Air Reheatin      Dehumidifying Mode” | 11/161,808 | United States  | Pending |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|------------|---------------------|---------|

|  Mark |  Serial./Reg.      No. | Place      ofRegistration | IssueDate |
|------------|-----------------------------|---------------------------|-----------|

| “Climate      Master (& Design)”  | 2,139,570 | United States | 02/24/98 |
|--------------------------------------------------------|-----------|---------------|----------|

| “Climate      Master (& Design)” | #TMA      471,487 | Canada | 02/21/97 |
|--------------------------------------------------|-------------------|--------|----------|

| “Climate      Master” | 808,500 | United      States  | 05/17/66 |
|-----------------------------------|---------|--------------------------|----------|

| “Climate      Master” | 409,647 | Chile  | 07/22/93 |
|-----------------------------------|---------|-------------|----------|

| “Climate      Master” | 84930 | Israel  | 10/08/92 |
|-----------------------------------|-------|--------------|----------|

| “Climate      Master” | 292/82 | Saudi Arabia | 12/30/92 |
|-----------------------------------|--------|--------------|----------|

| “Climate      Master” | 1,514,734 | United Kingdom | 11/13/98 |
|-----------------------------------|-----------|----------------|----------|

| “Climate      Master” | 11,215 | Greece | 07/07/98 |
|-----------------------------------|--------|--------|----------|

| “Climate      Master” | 280854 | Korea  | 12/07/93 |
|-----------------------------------|--------|-------------|----------|

| “Climate      Master” | 641,594 | Taiwan | 04/16/94 |
|-----------------------------------|---------|--------|----------|

| “Climate      Master” | 614,556 | Taiwan | 10/01/93 |
|-----------------------------------|---------|--------|----------|

| “Climate      Master” | 516424 | Mexico | 12/10/92 |
|-----------------------------------|--------|--------|----------|

| “Climate      Master” | 25162 | Kuwait  | 08/16/93 |
|-----------------------------------|-------|--------------|----------|

| “Climate      Master” | 0-999746 | Czech      Republic  | 03/20/00 |
|-----------------------------------|----------|---------------------------|----------|

| “Climate      Master” | 583,151 | Benelux  | 06/22/95 |
|-----------------------------------|---------|---------------|----------|

| “Climate      Master” | 95575091 | France  | 06/09/95 |
|-----------------------------------|----------|--------------|----------|

| “Climate      Master” | 147,007 | Hungary | 04/25/95 |
|-----------------------------------|---------|---------|----------|

| “Climate      Master” | 172643 | Norway | 04/25/96 |
|-----------------------------------|--------|--------|----------|

| “Climate      Master” | 309      649 | Portugal | 05/06/96 |
|-----------------------------------|--------------|----------|----------|

| “Climate      Master” | O-POZ-1170-95 | Slovak Republic | 05/02/95 |
|-----------------------------------|---------------|-----------------|----------|

| “Climate      Master” | 16121 | Turkey  | 05/01/95 |
|-----------------------------------|-------|--------------|----------|

| “Climate      Master” | 729,783 | Italy  | 10/16/97 |
|-----------------------------------|---------|-------------|----------|

| “Climate      Master” | 402,883 | Europe | 02/24/98 |
|-----------------------------------|---------|--------|----------|

| “Climate      Master” | 3480166 | China  | 03/10/03 |
|-----------------------------------|---------|-------------|----------|

| “Climate      Master” | 860,657 | Australia  | 12/14/00 |
|-----------------------------------|---------|-----------------|----------|

| “Climate      Mate” | TMA 371,539 |  Canada  | 08/03/90 |
|---------------------------------|-------------|--------------------|----------|

|   |   |  |   |
|--------|--------|--|--------|

----

|  Mark |  Serial./Reg.      No. | Place      ofRegistration | IssueDate |
|------------|-----------------------------|---------------------------|-----------|

| “Roommate” | 1,906,435 | United States | 07/18/95 |
|------------------------|-----------|---------------|----------|

| “Paradigm” | 2,112,244 | United States | 11/11/97 |
|------------------------|-----------|---------------|----------|

| “Geodesigner” |  2,184,992 | United States | 08/25/98 |
|---------------------------|-----------------|---------------|----------|

| “Earthpure”  | 2,994,853 | United States | 09/13/05 |
|-------------------------------|-----------|---------------|----------|

| “Climadry” | 3,253,779 | United States | 06/19/07 |
|------------------------|-----------|---------------|----------|

|   |   |  |  |
|--------|--------|--|--|

----

  

----

|  Mark |  Serial./Reg.      No. | Place      ofRegistration | IssueDate |
|------------|-----------------------------|---------------------------|-----------|

| “Climatecraft” | #2,369,333 | United States | 07/18/00 |
|----------------------------|------------|---------------|----------|

----

  

----

----

  

----

|  Mark |  Serial./Reg.      No. | Place      ofRegistration | IssueDate |
|------------|-----------------------------|---------------------------|-----------|

| “El      Dorado (& Design)” | 1,427,064 | United States | 02/03/87 |
|---------------------------------------------|-----------|---------------|----------|

| “E-2”  | 833,891 | United States | 08/22/67 |
|-------------------------|---------|---------------|----------|

----

  

----

|  Patent |  Serial./Reg.      No. | Place      ofRegistration | IssueDate |
|--------------|-----------------------------|---------------------------|-----------|

| “Conditioned Air Fan Coil      Unit” | 6,109,044 | United States | 08/29/00 |
|--------------------------------------------------|-----------|---------------|----------|

|  Mark |  Serial./Reg.      No. | Place      ofRegistration | IssueDate |
|------------|-----------------------------|---------------------------|-----------|

| “International Environmental Corporation (& IE Design)”  | 1,569,505439970 | United States Mexico | 12/05/8908/18/93 |
|------------------------------------------------------------------------------------|-----------------|---------------------------|------------------|

|  | 292/85 | Saudi Arabia  | 08/31/93 |
|--|--------|--------------------|----------|

| “International    Environmental” | B1,514,822 | United Kingdom  | 07/01/94 |
|----------------------------------------------|------------|----------------------|----------|

|  | 92/165,999 | Hong Kong  | 11/21/94 |
|--|------------|-----------------|----------|

| IEC      International Environmental (&      Design)” |  77110687 | United States  | Pending |
|----------------------------------------------------------------------|----------------|---------------------|---------|

| “Sureflow” | 2,449,571 | United      States  | 05/08/01 |
|------------------------|-----------|--------------------------|----------|

| “IE      (Stylized)” | 2,556,892 | United States | 04/02/02 |
|----------------------------------|-----------|---------------|----------|

| “Air Coil Technologies” | 1,755,144 | United States  | 03/02/93 |
|-------------------------------------|-----------|---------------------|----------|

| “UV Ultrashield”  | 2,660,647 | United States  | 12/10/02 |
|------------------------------------|-----------|---------------------|----------|

1

----

  

----

|  Mark |  Serial./Reg.      No. | Place      ofRegistration | IssueDate |
|------------|-----------------------------|---------------------------|-----------|

| “Koax” | 1,776,407 | United States | 06/15/93 |
|--------------------|-----------|---------------|----------|

| “Koax      and design” | 1,905,551 | United States | 07/18/95 |
|------------------------------------|-----------|---------------|----------|

1

----

  

----

1

----

  

----

1

----

  

----

|  Mark |  Serial./Reg.      No. | Place      ofRegistration | IssueDate |
|------------|-----------------------------|---------------------------|-----------|

| “APR Corporation and      Design” | 1,624,527 | United      States  | 11/27/90 |
|-----------------------------------------------|-----------|--------------------------|----------|

1

----

  

----

1

----

  

----

| 1.   | climatecontrolgroup.com |
|----------------|-------------------------|

| 2.   | koax.com |
|----------------|----------|

| 3.   | koax.biz |
|----------------|----------|

| 4.   | climacoolcorp.com |
|----------------|-------------------|

| 5.   | edc-ark.com |
|----------------|-------------|

| 6.   | bryantgeo.com |
|----------------|---------------|

| 7.   | carriergeo.com |
|----------------|----------------|

| 8.   | climatemast.com |
|----------------|-----------------|

| 9.   | climatemaster.com |
|----------------|-------------------|

| 10.   | climatemaster.eu |
|-----------------|------------------|

| 11.   | climatemaster.hk |
|-----------------|------------------|

| 12.   | climatematergenesis.com |
|-----------------|-------------------------|

| 13.   | climasize.com |
|-----------------|---------------|

| 14.   | climatemate.com |
|-----------------|-----------------|

| 15.   | climadry.com |
|-----------------|--------------|

| 16.   | watersourceparts.com |
|-----------------|----------------------|

| 17.   | trison.us |
|-----------------|-----------|

| 18.   | trisonconstruction.biz |
|-----------------|------------------------|

| 19.   | trisonconstruction.com |
|-----------------|------------------------|

| 20.   | trisonconstruction.info |
|-----------------|-------------------------|

| 21.   | trisonconstruction.org |
|-----------------|------------------------|

| 22.   | trisonconstruction.net |
|-----------------|------------------------|

| 23.   | sureflow.net |
|-----------------|--------------|

| 24.   | iec-okc.com |
|-----------------|-------------|

| 25.   | iecokc.com |
|-----------------|------------|

| 26.   | sureflowcomfort.com |
|-----------------|---------------------|

| 27.   | sureflow-comfort.com |
|-----------------|----------------------|

| 28.   | iecreps.com |
|-----------------|-------------|

| 29.   | carriersolutioncenter.com |
|-----------------|---------------------------|

| 30.   | ineedhvac.com |
|-----------------|---------------|

| 31.   | hvacbids.com |
|-----------------|--------------|

| 32.   | fancoil.com |
|-----------------|-------------|

| 33.   | uvcdirect.com |
|-----------------|---------------|

----

1

----

  

----

1

----

  

----

|  Mark |  Serial./Reg.      No. | Place      ofRegistration | IssueDate |
|------------|-----------------------------|---------------------------|-----------|

| “Climacool” | 2,564,496 | United States | 04/23/02 |
|-------------------------|-----------|---------------|----------|

| “CHP” | 1,707,991 | United States  | 08/18/92 |
|-------------------|-----------|---------------------|----------|

| “XpediAir” (Design Only)* |  2,986,893 | United States  | 08/23/05 |
|---------------------------------------|-----------------|---------------------|----------|

1

----

  

  

----

| 1.   | License      Agreement between Koax Corp. and The City of Oklahoma City Pursuant to ONG      Franchise Ordinance to Authorize Receipt of Transport Gas, dated July 3,      2006. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | License      Agreement between Climate Master, Inc. and The City of Oklahoma City      Pursuant to ONG Franchise Ordinance to Authorize Receipt of Transport Gas,      dated December 8, 2005. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | License      Agreement between International Environmental Corporation and The City of      Oklahoma City Pursuant to ONG Franchise Ordinance to Authorize Receipt of      Transport Gas, dated December 8,2006. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | System      License Agreement between Cherokee Nitrogen Company and Tennessee Gas      Pipeline Company and Midwestern Gas Transmission Company, dated November      30, 2000. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Software      License between PTC Global and International Environmental      Corporation. |
|----------------|--------------------------------------------------------------------------------------------|

| 6.   | Software      License between SigmaTEK and International Environmental      Corporation. |
|----------------|------------------------------------------------------------------------------------------|

| 7.   | Software      License and Services Agreement between ThermaClime, Inc. (formerly known      as ClimaChem, Inc.) and Cognos Corporation (successor in interest to      Adaytum, Inc.), effective June 29, 2000, as  amended. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Software      License Agreement between ThermaClime, Inc. (formerly known as ClimaChem,      Inc.) and Electronic Storage Corporation, executed April 4,      2003. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | Software      and Services License Agreement between Cherokee Nitrogen Company and      Mainsaver Software, effective December 4,2002. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Master      License Agreement for Software Program Processes between El Dorado      Chemical Company and Marcam Solutions,Inc. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| 11.   | Engineering      and License Agreement between El Dorado Chemical Company and      Kaltenbach-Thuring S.A., dated October 27, 1994, regarding LDAN plant      capacity increase. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | Order      Form, dated June 26, 1997, between SSA Global Technologies, Inc.,      successor in interest to Computer Associates International, Inc., and LSB      Industries, Inc., as amended. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.   | North      Alabama natural gas pipeline. |
|----------------|------------------------------------------|

| 2.   | Enbridge      natural gas pipeline. |
|----------------|-------------------------------------|

| 3.   | Cherokee      Water Company water line. |
|----------------|-----------------------------------------|

| 1.   | Valero      ammonia pipeline. |
|----------------|-------------------------------|

| 2.   | Centerpoint      Energy natural gas pipeline. |
|----------------|-----------------------------------------------|

| 3.   | Water      pipeline supplies treated river water to the facility as industrial water      make up. |
|----------------|----------------------------------------------------------------------------------------------------|

----

| 1.   | Anhydrous      Ammonia Sales Agreement between El Dorado Chemical Company (“EDC”) and      Koch Nitrogen International SARL and Koch Nitrogen Company(“Koch”),      effective January 3, 2005. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | AN      Supply Agreement between EDC and Orica USA, Inc., dated November 1, 2001,      as amended. |
|----------------|----------------------------------------------------------------------------------------------------|

| 3.   | On-Site      Product Supply Agreement between EDC and Air Liquide America Corporation,      dated as of May 31, 1994. |
|----------------|-----------------------------------------------------------------------------------------------------------------------|

| 4.   | Sales      Agreement between CNC and Nelson Brothers LLC for Ammonium Nitrate, dated      October 1, 2001. |
|----------------|------------------------------------------------------------------------------------------------------------|

| 5.   | NAESB      Base Contract between CNC and Interconn Resources, Inc., dated April 1,      2003. |
|----------------|-----------------------------------------------------------------------------------------------|

----

| ·   | NPDES      Wastewater Discharge Permit #AL 0000418; effective date      2-1-06;  expiration date1-31-11 |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | Title      V Air Permit #701-0013; effective date 12-14-06; expiration date      11-28-11 |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | NPDES      Wastewater Discharge Permit #AR0000752; effective date 7-1-02; expiration      date |
|--------------------|------------------------------------------------------------------------------------------------|

|   | 6-30-07 |
|--------|---------|

| ·   | Title      V Air Permit #0573-AOP-R7; effective date 4-12-05; expiration date      4-11-10 |
|--------------------|--------------------------------------------------------------------------------------------|

----

| 1.   | El      Dorado Chemical Company (“EDC”) is party to collective bargaining      agreement, effective October 17, 2004, with the International Association      of Machinists and Aerospace Workers, AFL-CIO, Local  224. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | EDC      is party to a collective bargaining agreement, effective August 1, 2004,      with the Paper, Allied-Industrial, Chemical & Energy (PACE) Workers      International Union AFL-CIO and Its Local5-434. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Cherokee      Nitrogen Company is party to a collective bargaining agreement, dated      November 12, 2004, with the United Steelworkers of America's International      Union, AFL-CIO, CLC, Cherokee Local417-G. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|
| Chemex      I Corp.  | None                                     |

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|
| Chemex      II Corp. | None                                     |

| Name      of Obligor           | Description      of Secured Indebtedness |
|--------------------------------|------------------------------------------|
| Cherokee      Nitrogen Company | None                                     |

| Name      of Obligor                  | Description      of Secured Indebtedness |
|---------------------------------------|------------------------------------------|
| Cherokee      Nitrogen Holdings, Inc. | None                                     |

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|
| ClimaCool      Corp. | None                                     |

| Name      of Obligor                                                           | Description      of Secured Indebtedness                                                                                                                                                                                                                                                                 |
|--------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Climate      Master, Inc. (“CLM,”) as bailee(operating      lease) | Secured      Party:  Marquette Equipment Finance, LLC, as Bailor, assigned to      Park National BankCollateral:  One      (1) Chiyoda SP-25ST 3 Axis Tube Bender with RH rotation, including all      standard equipment and 5/8”, 3/4” and 7/8” OD and  mandrels |
| CLM      (operating lease)                                                     | Secured      Party:  Prime Financial CorporationCollateral:  Trumpf      L3040 Laser Cutting Machine System purchased from Icon Machine Tool, Inc.,      S/N A0235A0061, and all accessories and attachments    thereto.                                                             |
| CLM,      as lessee  (operating lease)                               | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  One      (1) Trumpf TruLaser 3530 Laser Cutting Machine, Serial      #AX035A0061                                                                                                                             |
| CLM      (operating lease)                                                     | Secured      Party:  National Machine Tool Financial Corporation and TCF      Equipment Finance, Inc.Collateral:  One      (1) new Trumpf L3530 4000 Watt Laser with 60”x120”, S/N A0235A0061, and      all accessories and attachmentsthereto.                          |

----

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|

| CLM,      as lessee (operating lease) | Secured      Party:  IOS Capital, as lessorCollateral:  All      equipment now or hereafter leased (PCP 1050, booklet maker and      accessories) in an equipment leasing transaction in connection with that      certain Master Agreement No. -------------, Product Schedule No./Agreement      No. 2068765, as amended from time to time, between IOS Capital, LLC as      lessor, and the above referenced Lessee/Debtor, including, without limit,      the equipment listed below, and all additions, improvements, attachments,      accessories, accessions, upgrades and replacements related thereto, and      any and all substitutions or exchanges, and any and all products,      insurance and/or other proceeds (cash and non-cash)      therefrom.  Customer:  1095557 IKCPP500      C11029146                                                                                                                           |
|---------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  1      each five stage Power Spray Stainless Washer (installed) in accordance      with quote 3703-0107R3 from Industrial Finishing  Systems.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  Ingersoll-Rand      oil-free Nirvana compressor system consisting of various components; S/N      IRN75H-OF.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  Gamma      G333PC Wire Processing System per quote 06-0150-2743-0135C; S/N 1-528324-1      and all accessories and attachments thereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| CLM,      as lessee (operating lease) | Secured      Party:  IOS Capital, as lessorCollateral:  All      equipment now [5 Ricoh copiers] or hereafter leased in an equipment      leasing transaction in connection with that certain Master Agreement No.      -------------, Product Schedule No./Agreement No. 2929907, as amended from      time to time, between Lessor and Lessee, including, without limit, the      equipment listed below, and all additions, improvements, attachments,      accessories, accessions, upgrades and replacements related thereto, and      any and all substitutions or exchanges, and any and all products,      insurance and/or other proceeds (cash and non-cash)      therefrom.  CUSTOMER:  1095557 RIAF2035 S/P      J5837002733 RIAF2035 S/P J5837002727 RIAF2035 S/P J5837102886 RIAF2035 S/P      J5837102735 RIAF2035 S/P J5837102721 RIAF1060 J4235501227 RIAF1060      J422500470 RIAF2090 J7031100205 RIAF2090  J7031100244 |

----

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|

| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  One      (1) Amada Vipros 368 King, Turret Punch Press, S/N 36840024, with New      London Slug Conveyor, One (1) Amada LUL510 loading device, S/N 00510090,      Amada SR510 .30 unloading device, S/N 2218, Sun Classic Workstation with      Line Control Software, S/N FW900085, AP100 Punch Upgrade, AP100 Punch Add.      Seat Upgrade, complete with all attachments now or hereafter      acquired. |
|---------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CLM      (operating lease)            | Secured      Party:  Prime Financial CorporationCollateral:  Amada      press brake, model HFB 1003/8, S/N HFB010030 R981151, w/ ISB light      curtain                                                                                                                                                                                                                                                                                                                             |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  One      (1) Raidzone GangSTOTR Systems RC8-2-R2000 (2x8 disk rack mount systems      and all accessories and attachments thereto.                                                                                                                                                                                                                                                                          |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  Nine      (9) OptiGun-2AX Automatic Guns, Nine (9) OptiTronicPlus Control Units and      associated accessories.                                                                                                                                                                                                                                                                                            |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  Six      (6) sets of ECI line equipment (Procix) and associated      accessories.                                                                                                                                                                                                                                                                                                                           |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  One      (1) Amada 386 King, Vipros 30 ton CNC Turret Punch, S/N 36820017 and      associated accessories.                                                                                                                                                                                                                                                                                                  |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  One      (1) Amada CNC Blanking Shear, S/N 101000056 and associated      accessories.                                                                                                                                                                                                                                                                                                                       |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  One(1)      Trumpf Laser 3040 Plus and associated accessories                                                                                                                                                                                                                                                                                                                                               |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  One(1)      Trumpf Laser 3040 Plus and associated accessories                                                                                                                                                                                                                                                                                                                                               |
| CLM      (operating lease)            | Secured      Party:  RCA Capital Corp.Collateral:  One      (1) new Chiyoda SP-25ST 3 Axis CNC Pipe Bender and associated      accessories                                                                                                                                                                                                                                                                                                                                          |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessorCollateral:  One      (1) single Tube Cutoff Line (STCOS) and all accessories and attachments      thereto (Burr Oak Copper Cut).                                                                                                                                                                                                                                                                                        |
| CLM,      as lessee (operating lease) | Secured      Party:  Prime Financial Corporation, as lessor, as assigned to      Marquette Equipment Finance, LLC, as assigned to Park National      BankCollateral:  One      (1) Chiyoda SP-25 ST 3-Axis Tube Bender and associated      accessories.                                                                                                                                                                                                                             |

----

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|

| CLM      (operating lease) | Secured      Party:  Prime Financial CorporationCollateral:  One      1996 Amada FCXB-III-8025 CNC Press Brake                                                       |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CLM      (operating lease) | Secured      Party:  Prime Financial CorporationCollateral:  IPCS      Equipment and accessories                                                                     |
| CLM      (operating lease) | Secured      Party:  Prime Financial CorporationCollateral:  Used      1995 FBD-125 Amada Press Brake, S/N 12530058                                                  |
| CLM      (operating lease) | Secured      Party:  Prime Financial CorporationCollateral:  88      ton Amada HFB, S/N R091-18; 88 ton Amada HFB, S/N R970432; 138 ton Amada      FBD, S/N 12530263 |

| Name      of Obligor                                          | Description      of Secured Indebtedness                                                                                                                                                                                     |
|---------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ClimateCraft,      Inc. (“CLC”) (operating lease) | Secured      Party:  Prime Financial CorporationCollateral:  Trumpf      NC Punching Machine                                                                                                             |
| CLC      (operating lease)                                    | Secured      Party:  Prime Financial CorporationCollateral:  1999      Amada HFB1254 Promecam CNC Press Brake w/ Controls                                                                                |
| CLC                                                           | Secured      Party:  City of Oklahoma CityCollateral:  Real      estate owned by Summit Machine Tool Manufacturing Corp.                                                                                 |
| CLC      (operating lease)                                    | Secured      Party:  Prime Financial CorporationCollateral:  Two      (2) model 625014 Accushears w/ 48” extended travel and CNC front gauging      12’x6’x6’; S/N 5110 and 5111 |
| CLC      (operating lease)                                    | Secured      Party:  Prime Financial CorporationCollateral:  Trumpf      model TC2020 Punch Machine, S/N A0030A0239 with tooling                                                                         |
| CLC      (operating lease)                                    | Secured      Party:  Prime Financial CorporationCollateral:  Amada      CNC Hydraulic Press Brake model HFB220/440, SN  H980519                                                                          |

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|
| DSN      Corporation | None                                     |

| Name      of Obligor                                          | Description      of Secured Indebtedness                                                                                                                                  |
|---------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| El      Dorado Chemical Company (“EDC”) as bailee | Secured      Party:  Orica USA Inc., as bailorCollateral:  All      of bailor’s inventory located at bailee’s El Dorado, AR      facility |
| EDC,      as lessee(operating      lease)                     | Secured      Party:  LSB Industries, Inc.Collateral:  Catalysts      associated with EDC’s El Dorado, ARfacility                                |

----

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|

| EDC,      as bailee(operating      lease) | Secured      Party:  Republic Bank, Inc., as bailorCollateral:  Personal      property (rail cars) located at bailee’s El Dorado, AR facility and      described in Lease Schedule No. 001 to Master Lease Agreement No. AF10506      by and between Prime Financial Corporation, as lessee, and Applied      Financial, LLC, as lessor |
|-------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| EDC                                       | Secured      Party:  Air Liquide Industrial US LPCollateral:  Gas      generating plant, located at debtor’s El Dorado, AR    facility                                                                                                                                                                                                  |
| EDC      (operating lease)                | Secured      Party:  General Electric Capital CorporationCollateral:  PerkinElmer      Aanalyst 700 AA Spectrometer andaccessories                                                                                                                                                                                                            |

| Name      of Obligor                                                               | Description      of Secured Indebtedness                                                                                                                                                                           |
|------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| International      Environmental Corporation (“IEC”) (operating lease) | Secured      Party:  Prime Financial CorporationCollateral:  Bolina      Cut-to-Length; 2 Optiflex 110/08 Pullmax CNC Press Brakes; vertical      bender; Trumpf laser cutting machine         |
| IEC      (operating lease)                                                         | Secured      Party:  Prime Financial CorporationCollateral:  Amada      Turret Press Dies & accessories                                                                                    |
| IEC      (operating lease)                                                         | Secured      Party:  Prime Financial CorporationCollateral:  Two      Trumpf Laser Cutting Machines                                                                                            |
| IEC                                                                                | Secured      Party:  Amada Capital CorporationCollateral:  Amada      Turret Press Model VIPROS358K w/ scrap conveyor and      attachments                                                     |
| IEC                                                                                | Secured      Party:  Amada Capital CorporationCollateral:  Software      package consisting of two seats of Anmest punch software and one seat      AP100 US punch complete w/ all attachments |
| IEC      (operating lease)                                                         | Secured      Party:  Prime Financial CorporationCollateral:  One      (1) T-Drill SP-55 tube end spinner, 440V, S/N 97032                                                                      |
| IEC      (operating lease)                                                         | Secured      Party:  Prime Financial CorporationCollateral:  High      Takt assembly line (spur line southbldg)                                                                                |

----

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|

| IEC      (operating lease) | Secured      Party:  IOS CapitalCollateral:  All      equipment now or hereafter leased in an equipment leasing transaction in      connection with that certain Master Agreement No. -------------, Product      Schedule No./Agreement No. 1842990, as amended from time to time, between      IOS Capital, LLC as lessor, and the above referenced Lessee/Debtor,      including, without limit, the equipment listed below, and all additions,      improvements, attachments, accessories, accessions, upgrades and      replacements related thereto, and any and all substitutions or exchanges,      and any and all products, insurance and/or other proceeds (cash and      non-cash) therefrom.  Customer:  357586 RIAF 2075 S/P      C11020120, RIAF2075 S/P C11020023, RIAF 2075 S/P C11020123, RIAF2060 S/P      C11020019, RIAF3030 S/P C11020011, RIAF3030 S/P C11020010, RIAF3030 W/P      C11020009, RIAF3030 SP C11020008, RIAF3425C C11020124, ZZrightfax      software |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IEC      (operating lease) | Secured      Party:  Prime Financial CorporationCollateral:  Trumpf      Laser 3040 Plus, 4000 watt resonator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| IEC      (operating lease) | Secured      Party:  Prime Financial CorporationCollateral:  Security      system                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

| Name      of Obligor             | Description      of Secured Indebtedness                                                        |
|----------------------------------|-------------------------------------------------------------------------------------------------|
| Koax      Corp (operating lease) | Secured      Party:  Intrust BankCollateral:  LSE      1751964 S/N MPH04374 |

| Name      of Obligor    | Description      of Secured Indebtedness |
|-------------------------|------------------------------------------|
| LSB      Chemical Corp. | None                                     |

| Name      of Obligor                 | Description      of Secured Indebtedness |
|--------------------------------------|------------------------------------------|
| Northwest      Financial Corporation | None                                     |

| Name      of Obligor                 | Description      of Secured Indebtedness |
|--------------------------------------|------------------------------------------|
| The      Climate Control Group, Inc. | None                                     |

| Name      of Obligor                           | Description      of Secured Indebtedness                                                                              |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
| ThermaClime,      Inc. (f/k/a ClimaChem, Inc.) | Secured      Party:  Toshiba America Information SystemsCollateral:  Six      (6) Toshiba copiers |

----

| Name      of Obligor                                                                                            | Description      of Secured Indebtedness                                                                                                                                                                                                                                                                              |
|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ThermaClime      Technologies, Inc. (f/k/a ACP International Limited (“TTI”) (operating      lease) | Secured      Party:  Park National Bank, assigned to Marquette Equipment      Finance, LLCCollateral:  All      equipment, software and other property leased under that Equipment Lease      dated March 1, 2007 between Prime Financial Corporation and TTI      (Continental washer and dryer) |
| TTI,      as bailee (operating lease)                                                                           | Secured      Party:  Park National Bank, as bailorCollateral:  Radiator      coil washer and dryer                                                                                                                                                                                                |
| TTI      (operating lease)                                                                                      | Secured      Party:  Prime Financial CorporationCollateral:  One      (1) Continental Equipment 2-stage belt washer, natural gas heated dryer      and drain tank                                                                                                                                 |
| TTI      (operating lease)                                                                                      | Secured      Party:  Prime Financial CorporationCollateral:  Burr      oak fin die, S/N FDM-1532-1                                                                                                                                                                                                |

| Name      of Obligor                                  | Description      of Secured Indebtedness |
|-------------------------------------------------------|------------------------------------------|
| Trison      Construction, Inc. (“Trison”) | None                                     |

| Name      of Obligor | Description      of Secured Indebtedness |
|----------------------|------------------------------------------|
| XpediAir,      Inc.  | None                                     |

----

| 1.   | International      Environmental Corporation is indebted to Amada Capital Corporation in the      amount of $57,714. |
|----------------|----------------------------------------------------------------------------------------------------------------------|

| 2.   | ClimateCraft,      Inc. is indebted to the following: |
|----------------|-------------------------------------------------------|

| a.   | The      City of Oklahoma City in the amount of  $2,450,000. |
|----------------|--------------------------------------------------------------|

| b.   | Summit      Machine Tool Manufacturing Corp. in the principal amount of      $715,719. |
|----------------|----------------------------------------------------------------------------------------|

| 3.   | ThermaClime,      Inc. is indebted to the following: |
|----------------|------------------------------------------------------|

| a.   | CEPOLK      Holdings, Inc. in the principal amount of  $3,898,523. |
|----------------|--------------------------------------------------------------------|

| b.   | El      Dorado Nitrogen, L.P. in the principal amount of    $25,734,720. |
|----------------|--------------------------------------------------------------------------|

| 4.   |   |
|----------------|--------|

----

| 1.   | See      Schedule 5.13 for Equity Interests. |
|----------------|----------------------------------------------|

| 2.   | El      Dorado Chemical Company (“EDC”) is indebted to the    following: |
|----------------|--------------------------------------------------------------------------------------|

| a.   | ThermaClime,      Inc. (“TCI”) in the principal amount of  $35,593,138. |
|----------------|-------------------------------------------------------------------------------------|

| b.   | LSB      Chemical Corp. (“LSB Chemical”) in the principal amount of      $2,098,787. |
|----------------|--------------------------------------------------------------------------------------------------|

| 3.   | Trison      Construction, Inc. is indebted to TCI in the principal amount of      $6,364,700 less $2,500,0001. |
|----------------|----------------------------------------------------------------------------------------------------------------|

| 4.   | ClimateCraft,      Inc. is indebted to TCI in the principal amount of $6,947,768 less      $5,200,0001. |
|----------------|---------------------------------------------------------------------------------------------------------|

| 5.   | TCI      is indebted to the following: |
|----------------|----------------------------------------|

| a.   | International      Environmental Corporation  in the principal amount of      $76,297,857. |
|----------------|------------------------------------------------------------------------------------------------------|

| b.   | The      Climate Control Group, Inc. in the principal amount of      $3,104,268. |
|----------------|----------------------------------------------------------------------------------|

| c.   | Climate      Master, Inc. in the principal amount of  $40,537,986. |
|----------------|--------------------------------------------------------------------|

| d.   | Koax      Corp. in the principal amount of$22,811,075. |
|----------------|--------------------------------------------------------|

| e.   | Chemex      I Corp. (“Chemex I”) in the principal amount of  $276,944. |
|----------------|------------------------------------------------------------------------------------|

| f.   | Chemex      II Corp. (“Chemex II”) in the principal amount of    $1,484,718. |
|----------------|------------------------------------------------------------------------------------------|

| g.   | Northwest      Financial Corporation in the principal amount of    $13,328,828. |
|----------------|---------------------------------------------------------------------------------|

| 6.        | Cherokee      Nitrogen Company is indebted to the following  companies: |
|----------------|-------------------------------------------------------------------------|

| a.   | TCI      in the principal amount of$10,604,163. |
|----------------|-------------------------------------------------|

| b.   | EDC      in the principal amount of$2,438,209. |
|----------------|------------------------------------------------|

| 7.   | LSB      Chemical is indebted to the followingcompanies: |
|----------------|----------------------------------------------------------|

| a.   | TCI      in the principal amount of $24,187,624 plus $4,500,0001. |
|----------------|-------------------------------------------------------------------|

| b.   | DSN      Corporation (“DSN”) in the principal amount of  $275,773. |
|----------------|--------------------------------------------------------------------------------|

| 8.   | DSN      is indebted to TCI in the principal amount of $18,784,414 less      $4,500,0001. |
|----------------|-------------------------------------------------------------------------------------------|

| 9.   | XpediAir,      Inc. is indebted to TCI in the principal amount of $1,768,968 less      $1,900,0001. |
|----------------|-----------------------------------------------------------------------------------------------------|

| 10.   | ThermaClime      Technologies, Inc. is indebted to TCI in the principal amount of      $3,548,796 less $2,700,0001. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| 11.   | ClimaCool      Corp. (“CCC”) is indebted to TCI in the principal amount of $3,450,175      less $2,300,0001. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

----

----

| 12.   | Chemex      I is indebted to the followingcompanies: |
|-----------------|------------------------------------------------------|

| a.   | LSB      Chemical in the principal amount of $385,282 less $150,0001. |
|----------------|-----------------------------------------------------------------------|

| b.   | Chemex      II in the principal amount of $348. |
|----------------|-------------------------------------------------|

| 13.   | LSB      Holdings, Inc., a subsidiary of LSB Industries, Inc., is indebted to CCC      in the principal amount of$2,705,594. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

----

| 1.   | Cherokee      Nitrogen Company leases from Cherokee Nitrogen Holdings, Inc. (“CNH”) the      Cherokee Site and Facility Assets therein pursuant to a Lease Agreement      effective January 1, 2004. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Nelson      Brothers LLC leases from CNH a certain portion of the Cherokee Site      pursuant to a Ground Lease dated November 4, 1998, as    amended. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Farm      Lease between CNH and Isbell Farms, effective as of January 1,      2007. |
|----------------|-------------------------------------------------------------------------------------|

| 4.   | Ground      Lease between United States Steel Corporation and The Industrial      Development Board of the Town of Cherokee (“Board”) dated as of April 1,      1980, Lease Agreement between the Board and Airco, Inc. dated as of April      1, 1980, as amended between the Board and The BOC Group, Inc. (formerly      known as Airco, Inc.) on August 1, 1993, Trust Indenture between the Board      and Trust Company Bank dated as of April 1, 1980 and Indenture of Trust      between the Board and First-Citizens Bank and Trust Company dated as of      August 1, 1993. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Airgas      Specialty Products, Inc. leases from CNH a certain portion of the Cherokee      Site pursuant to a Lease Agreement dated June 1,  2005. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Austin      Powder Company leases from CNH a certain portion of the Cherokee Site      pursuant to a Real Property Lease and Easement dated effective November 1,      2007. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.  | El      Dorado Chemical Company (“EDC”) leases from Northwest Financial      Corporation (“NWF”) a certain portion of the El Dorado Site pursuant to a      Lease Agreement dated March 7, 1988, asamended. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.  | DSN      Corporation (“DSN”) leases from NWF a certain portion of the El Dorado      Site pursuant to a Lease Agreement dated April 15,  2003. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.  | EDC      subleases from DSN a certain portion of the El Dorado Site and the      Facility Assets therein pursuant to a Sublease Agreement dated April 15,      2003. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.  | On-Site      Product Supply Agreement between EDC and Air Liquide America Corporation      dated May 31, 1994. |
|----------|----------------------------------------------------------------------------------------------------------------|

----

| 1.   | Agreement      for Raw Material Sourcing between LSB Industries, Inc. (“LSB”) and its      subsidiaries. |
|----------------|----------------------------------------------------------------------------------------------------------------------|

| 2.   | Tax      Sharing Agreement between LSB and ThermaClime, Inc. (f/k/a ClimaChem, Inc.      (“TCI”)). |
|----------------|----------------------------------------------------------------------------------------------------------------|

| 3.   | Tax      Sharing Agreement between LSB and ClimateCraft, Inc.    (“CLC”). |
|----------------|---------------------------------------------------------------------------------------|

| 4.   | Management      Agreement between LSB and TCI. |
|----------------|------------------------------------------------|

| 5.   | Lease      Agreement between Prime Holdings Corporation (“PHC”) and International      Environmental Corporation (“IEC”) for property at 5000 West I-40,      OKC. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Lease      Agreement between Prime Holdings Corporation (“PHC”) and ThermaClime      Technologies, Inc. (“TTI”) for property at 5000 West I-40,      OKC. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Railcar      Services Agreement between Prime Financial Corporation (“PFC”) and El      Dorado Chemical Company (“EDC”). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Industrial      Plant Lease between PFC and Climate Master, Inc. (“CLM”) for property at      4700 West Point Boulevard, OKC. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | Equipment      Lease between IEC and PFC Re: Laser Center, 2 Pullmax Press Brakes and      accessories |
|----------------|--------------------------------------------------------------------------------------------------------|

| 10.   | Equipment      Lease between IEC and PFC Re: Cabinet & Steel Rack w/ Amada Turret      Press Dies and shop carts with Amada Turret Punch Press      tooling. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | Equipment      Lease between IEC and PFC Re: Bolina Cut-to-Length, 2 Optiflex 110/08      Pullmax CNC Press Brakes, and 1 Vertical Bender Hairpin      Bender. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | Equipment      Lease between IEC and PFC Re: Trumpf Laser 3040  Plus. |
|-----------------|-----------------------------------------------------------------------|

| 13.   | Equipment      Lease between IEC and PFC Re: T-Drill SP-55 Tube End    Spinner. |
|-----------------|---------------------------------------------------------------------------------|

| 14.   | Equipment      Lease between IEC and PFC Re: SecuritySystem. |
|-----------------|--------------------------------------------------------------|

| 15.   | Equipment      Lease between IEC and PFC Re: High Takt Assembly  Line. |
|-----------------|------------------------------------------------------------------------|

| 16.   | Equipment      Lease between CLM and PFC Re: IPCSEquipment |
|-----------------|------------------------------------------------------------|

----

| 17.   | Equipment      Lease between CLM and PFC Re: Optima Press Brake and      accessories. |
|-----------------|---------------------------------------------------------------------------------------|

| 18.   | Equipment      Lease between CLM and PFC Re: Amada Vipros 868 King, Turret Punch Press      and accessories. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| 19.   | Equipment      Lease between CLM and PFC Re: ECIequipment. |
|-----------------|------------------------------------------------------------|

| 20.   | Equipment      Lease between CLM and PFC Re: 1996 Amada FCXBIII-8025 CNC Press      Brake. |
|-----------------|--------------------------------------------------------------------------------------------|

| 21.   | Equipment      Lease between CLM and PFC Re: Model HFB/1003/8 Amada Press      Brake. |
|-----------------|---------------------------------------------------------------------------------------|

| 22.   | Equipment      Lease between CLM and PFC Re: Model HFB/1003/8 Amada Press      Brake. |
|-----------------|---------------------------------------------------------------------------------------|

| 23.   | Equipment      Lease between CLM and PFC Re: Procixequipment. |
|-----------------|---------------------------------------------------------------|

| 24.   | Equipment      Lease between CLM and PFC Re: Trumpf 3040 Laser  System. |
|-----------------|-------------------------------------------------------------------------|

| 25.   | Equipment      Lease between CLM and PFC Re: Trumpf 3040 Laser  System. |
|-----------------|-------------------------------------------------------------------------|

| 26.   | Equipment      Lease between CLM and PFC Re: RAIDZone GangStor  System. |
|-----------------|-------------------------------------------------------------------------|

| 27.   | Equipment      Lease between CLM and PFC Re: BlankingShear. |
|-----------------|-------------------------------------------------------------|

| 28.   | Equipment      Lease between CLM and PFC Re: Amada 386 King, Vipros 30 CNC Turret      Punch |
|-----------------|----------------------------------------------------------------------------------------------|

| 29.   | Equipment      Lease between CLM and PFC Re: Optigunequipment. |
|-----------------|----------------------------------------------------------------|

| 30.   | Equipment      Lease between CLM and PFC Re: Burr Oak Copper  Cut. |
|-----------------|--------------------------------------------------------------------|

| 31.   | Equipment      Lease between CLM and PFC Re: Chiyoda SP-25ST Tube  bender |
|-----------------|---------------------------------------------------------------------------|

| 32.   | Equipment      Lease between CLM and PFC Re: Amada FBD-125 Press  Brake. |
|-----------------|--------------------------------------------------------------------------|

| 33.   | Equipment      Lease between CLM and PFC Re: Trumpf Laser L3040 Laser Cutting      Machine. |
|-----------------|---------------------------------------------------------------------------------------------|

| 34.   | Equipment      Lease between CLM and PFC Re: Trumpf Trulaser  3530. |
|-----------------|---------------------------------------------------------------------|

| 35.   | Equipment      Lease between CLM and PFC Re: Ingersoll Rand Nirvana Compressor      System. |
|-----------------|---------------------------------------------------------------------------------------------|

| 36.   | Equipment      Lease between CLM and PFC Re: Gamma Wire Processing  System. |
|-----------------|-----------------------------------------------------------------------------|

----

| 37.   | Equipment      Lease between CLM and PFC Re: Power Spray Stainless  Washer. |
|-----------------|-----------------------------------------------------------------------------|

| 38.   | Equipment      Lease between CLM and PFC Re: Three (3) Amada Press  Brakes. |
|-----------------|-----------------------------------------------------------------------------|

| 39.   | Equipment      Lease between CLM and IEC Re: Trumpf Laser 3040  Plus. |
|-----------------|-----------------------------------------------------------------------|

| 40.   | Equipment      Sublease between LSB and CLM Re: Blanking Shear (leased by LSB from      PFC). |
|-----------------|-----------------------------------------------------------------------------------------------|

| 41.   | Equipment      Sublease between CLC and PFC for Trumpf Punching  Machine. |
|-----------------|---------------------------------------------------------------------------|

| 42.   | Equipment      Lease between CLC and PFC Re: 1999 Amada HFB 1254 Promecam CNC Press      Brake. |
|-----------------|-------------------------------------------------------------------------------------------------|

| 43.   | Equipment      Lease between CLC and PFC Re: Trumpf Tooling  Set. |
|-----------------|-------------------------------------------------------------------|

| 44.   | Equipment      Lease between CLC and PFC Re:  2  Accushears. |
|-----------------|------------------------------------------------------------------------|

| 45.   | Equipment      Lease between  CLC and PFC Re:  Trumpf TC2020 Punch      Machine. |
|-----------------|------------------------------------------------------------------------------------------------------|

| 46.   | Equipment      Lease between CLC and PFC Re:  Amada CNC Hydraulic Press      Brake. |
|-----------------|-----------------------------------------------------------------------------------------------|

| 47.   | Equipment      Lease between TTI and PFC Re:  Continental Belt      Washer. |
|-----------------|---------------------------------------------------------------------------------------|

| 48.   | Equipment      Lease between TTI and PFC Re:  Burr Oak Fin  Die. |
|-----------------|----------------------------------------------------------------------------|

| 49.   | Equipment      Lease between EDC and PFC Re:  2004 Chevy  Impala. |
|-----------------|-----------------------------------------------------------------------------|

| 50.   | Equipment      Lease between EDC and PFC Re:  2002 International Spreader      Truck. |
|-----------------|-------------------------------------------------------------------------------------------------|

| 51.   | Plant      Equipment Lease between EDC and DSNCorporation |
|-----------------|-----------------------------------------------------------|

| 52.   | Equipment      Lease between Trison Construction, Inc. (“Trison”) and PFC      Re:  2 John Deer Gators and 3 trailers with dove      tail. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 53.   | Services      Agreements between LSB and the following  subsidiaries: |
|-----------------|-----------------------------------------------------------------------|

| a.   | Chemex      II Corp. |
|----------------|----------------------|

| b.   | Koax      Corp. |
|----------------|-----------------|

| c.   | Climate      Master, Inc. |
|----------------|---------------------------|

| d.   | International      Environmental Corporation |
|----------------|----------------------------------------------|

| e.   | The      Climate Control Group, Inc. |
|----------------|--------------------------------------|

| f.   | LSB      Chemical Corp. |
|----------------|-------------------------|

| g.   | ClimateCraft,      Inc. |
|----------------|-------------------------|

| h.   | El      Dorado Chemical Company |
|----------------|---------------------------------|

----

| i.   | Chemex      I Corp. |
|----------------|---------------------|

| j.   | ThermaClime,      Inc. |
|----------------|------------------------|

| k.   | DSN      Corporation |
|----------------|----------------------|

| l.   | ThermaClime      Technologies, Inc. |
|----------------|-------------------------------------|

| m.   | XpediAir,      Inc. |
|----------------|---------------------|

| n.   | Trison      Construction, Inc. |
|----------------|--------------------------------|

| 54.   | Precious      Metals Lease between LSB and EDC. |
|-----------------|-------------------------------------------------|

| 55.   | Exclusive      License Agreement Between CLC and ClimateCraft Technologies,      Inc. |
|-----------------|---------------------------------------------------------------------------------------|

| 56.   | Assignment      of Option to Purchase between CLM and PFC Re: CLM Facility Located at 7300      S.W. 44th Street, Oklahoma City from Raptor Master  LLC. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 57.   | Consulting      Agreements between LSB Chemical Corp. (“LSB Chemical”) and various      affiliates. |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| 58.   | Lease      between Summit Machinery Company (“SMC”) and Trison for office space at      4000 N.W. 39th Street, OKC. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| 59.   | Lease      between XpediAir, Inc. and SMC at 4000 NW 39th Street,  OKC. |
|-----------------|-------------------------------------------------------------------------|

| 60.   | Warehouse      Lease between CLM and SMC at 4000 NW 39th Street,  OKC. |
|-----------------|------------------------------------------------------------------------|

| 61.   | Warehouse      Lease between Summit Machine Tool Manufacturing Corp. (“Summit”) and      ClimaCool Corp. at 518 North Indiana,OKC. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 62.   | Warehouse      Lease between Summit and CLC at 1601 NW 4th Street,  OKC. |
|-----------------|--------------------------------------------------------------------------|

| 63.   | Capital      Lease Agreement with Right of Transfer of Title between Summit and CLC for      CLC facility in OKC. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| 64.   | Lease      of drilling equipment from LSB Holdings, Inc. to  Trison. |
|-----------------|----------------------------------------------------------------------|

| 65.   | Lease      of office space from SMC to TCI at 4000 NW 39th Street,    OKC. |
|-----------------|----------------------------------------------------------------------------|

| 66.   | Lease      of office space from PFC to TCI at 16 South Pennsylvania Avenue,      OKC. |
|-----------------|---------------------------------------------------------------------------------------|

| 67.   | Lease      of office space from TCI to LSB at 16 South Pennsylvania Avenue,      OKC. |
|-----------------|---------------------------------------------------------------------------------------|

| 68.   | Lease      of building from LSB to Koax Corp. (“Koax”) at 510 North Indiana,      OKC. |
|-----------------|----------------------------------------------------------------------------------------------------|

| 69.   | Lease      of warehouse space from Summit to Koax at 518 North Indiana,      OKC. |
|-----------------|-----------------------------------------------------------------------------------|

----

| 70.   | Lease      of office space from PFC to LSB Chemical at 16 South Pennsylvania Avenue,      OKC. |
|-----------------|------------------------------------------------------------------------------------------------|

| 71.   | Lease      of office space from SMC to The Climate Control Group, Inc. (“CCG”) at      4000 NW 39th Street, OKC. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| 72.   | Lease      of office space from SMC to IEC at 4000 NW 39th Street,    OKC. |
|-----------------|----------------------------------------------------------------------------|

| 73.   | Computer      rental from LSB to TCI. |
|-----------------|---------------------------------------|

| 74.   | Auto      rental from LSB to TCI. |
|-----------------|-----------------------------------|

| 75.   | Auto      rental from LSB to CCG. |
|-----------------|-----------------------------------|

| 76.   | Auto      rental from PFC to CCG. |
|-----------------|-----------------------------------|

| 77.   | See      Schedules 5.05, 7.03 and 7.05. |
|-----------------|-----------------------------------------|

----

| 1.   | Amended      and Restated Loan and Security Agreement dated as of November ____, 2007,      by and among ThermaClime, Inc. and each of the Subsidiaries of ThermaClime      identified on the signature pages thereof, LSB Industries, Inc., the      lenders identified on the signature pages thereof and Wells Fargo      Foothill, Inc., as the arranger and administrative agent for the Lenders,      as amended. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Equipment      Purchase and Security Agreement between International Environmental      Corporation and Amada America, Inc., dated June 27,  2003.* |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Capital      Lease Agreement with Right of Transfer of Title by and between Summit      Machine Tool Manufacturing Corp. and ClimateCraft, Inc., effective      December 31, 1999, as amended.* |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Loan      Agreement between The City of Oklahoma City and ClimateCraft, Inc., dated      December 23, 1999.* |
|----------------|--------------------------------------------------------------------------------------------------------------|

----

| ThermaClime,      Inc.16      South Pennsylvania AvenueOklahoma      City, Oklahoma 73107Attention:  Tony      M. Shelby, Ex. V.P.Tel:  405-235-4546Fax:  405-235-5067 with      copy to: ThermaClime,      Inc.16      South Pennsylvania AvenueOklahoma      City, Oklahoma 73107Attention:  David      Shear, General CounselTel:  405-235-4546Fax:  405-236-1209 | LSB      Industries, Inc.16      South Pennsylvania AvenueOklahoma      City, Oklahoma 73107Attention:  Tony      M. Shelby, Ex. V.P.Tel:  405-235-4546Fax:  405-235-5067 with      copy to: LSB      Industries, Inc.16      South Pennsylvania AvenueOklahoma      City, Oklahoma 73107Attention:  David      Shear, General CounselTel:  405-235-4546Fax:  405-236-1209 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Addresses for Notices                                                                                                                                                                                                                                                                                        | Payment Information                                                                                                                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                       |
| Banc      of America Leasing & Capital LLC, as      Collateral AgentMail      Code: GA3-003-04-01Northeast      Center Building2059      Northlake PkwyTucker      GA 30084-5399Attn:       Shelley B. LaCagninVice      President - Operations ManagerTel:      770-270-8590Fax:      770-270-8638 | Bank:  Bank      of AmericaAddress:      Concord, CAABA:      026 009 593Account      No: 1233401992Account      Name: Banc of America Leasing & Capital, LLCAttention:  Benny      SumardiReference:  ThermaClime       |
|  Banc      of America Leasing & Capital LLC, as Administrative AgentMail      Code: MA5-100-32-01100      Federal StBoston      MA 02110Attn:  Annemarie      L. WarrenVice      President - Group Operations ManagerTel:      617-434-3611Fax:      617-434-0532                         |  Bank:  Bank      of AmericaAddress:      Concord, CAABA:      026 009 593Account      No: 1233401992Account      Name: Banc of America Leasing & Capital, LLCAttention:  Benny      SumardiReference:  ThermaClime |

----

| Addresses for Notices | Payment  Information |
|-----------------------|----------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
| Bank      of Utah, as Payment AgentATTN:  Corporate      Trust Services200      E. South Temple, Suite 210Salt      Lake City, UT  84111Phone:  (801)      924-3690Fax:  (801)      746-3519                                                                                                                                                                                     | Bank:  Bank      of UtahABA      No. 124-300-107Acct.      No. 01020296Re:  ThermaClime      Acct. No. 8000099 |
| LENDERS:                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                               |
| Addresses for Notices                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                               |
| Banc      of America Leasing & Capital LLC,Northeast      Center BuildingMail      Code: GA3-003-04-012059      Northlake PkwyTucker      GA 30084-5399Attn:       Shelley B. LaCagninVice      President - Operations ManagerTel:      770-270-8590Fax:      770-270-8638                                                                                                                                           |                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                               |
|    With      Copy to:Banc      of America Leasing & Capital LLCOne      Financial Plaza, 2nd      FloorMail      Code:  R11-537-02-01http://corpdir.bankofamerica.com/staffresults.asp?txtField1Name=mailunit&txtField1Type=is&txtField1VProvidence,      RI 02903Attn:  Lee      BonaldiVice      President - Credit UnderwritingTel:      401-278-7655Fax:      401-719-8344 |                                                                                                                               |

----

|                                                                                                                                                                                                                                                                                                                                                        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Merrill      Lynch Capital, a Division of Merrill Lynch Business Financial Services      Inc.222      N. LaSalle Street, 16th      FloorChicago,      IL  60601Attention:  Gary      ModestoVice      President, Group Credit ManagerTel:  312-750-6204Fax:  312-316-3422Email:  Gary_Modesto@ml.com |
|                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                   |
| Arvest      Bank3900      N. Lincoln BoulevardOklahoma      City, OK 73105Attn:  Cindy      BattSr.      Vice President & Corporate Division ManagerTel:  405-523-4169Fax:  405-523-4126Email:  cbatt@arvest.com                                                                                           |

----

----

----

| Date      | Type      of Loan Made | Amount      of Loan Made | End      ofInterest Period | Amount      of Principal      or Interest      Paid This Date | Outstanding      Principal      BalanceThis Date | Notation      Made By |
|-----------|------------------------|--------------------------|----------------------------|---------------------------------------------------------------|--------------------------------------------------|-----------------------|
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |
| _________ | _________              | _________                | _____________              | _____________                                                 | ___________                                      | ________              |

----

----

----

|   | (i) | Consolidated      Total Indebtedness as of the financial statement date: | $______________ |
|--------|-----|--------------------------------------------------------------------------|-----------------|

|   | (ii) | Borrowers’      Consolidated EBITDA for such period: | $______________ |
|--------|------|------------------------------------------------------------|-----------------|

|   | (i) | Consolidated      EBITDA of the ThermaClime Entities for the most recently completed four      fiscal quarters (the “Measurement Period”): | $_________________ |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|

|   | (ii) | Aggregate      amount of all Capital Expenditures made during the Measurement Period by      the ThermaClime Entities on a consolidated basis ($_________________), but      excluding any such payments to the extent financed through the incurrence      of additional Indebtedness      ($_________________):$________________ |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Aggregate      amount of federal, state, local and foreign income taxes paid in cash, in      each case of or by the TheramClime Entities for the most recently      completed Measurement Period: | $________________ |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|

|   | (iv) | Consolidated      Interest Charges: | $________________ |
|--------|------|-------------------------------------|-------------------|

|   | (v) | Aggregate      principal amount of all regularly scheduled principal payments or      redemptions or similar acquisitions for value of outstanding debt for      borrowed money for ThermaClime on a consolidated basis during such      Measurement Period1: |   | $________________ |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|

----

----

|   | (vi) | All      amounts paid or payable by the ThermaClime Entities on Capitalized Lease      Obligations having a scheduled due date during such Measurement      Period: | $_____________ |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|

|   | (vii) | Dividends      paid by ThermaClime to Parent during such Measurement    Period: | $_____________ |
|--------|-------|---------------------------------------------------------------------------------|----------------|

----

----

----

----

2
3
4
5

  

  

  

----

| 1. | Assignor[s]: |   |   |
|----|--------------|--------|--------|

| 2. | Assignee[s]: |   |   |
|----|--------------|--------|--------|

|   | [for      each Assignee, indicate [Affiliate][Approved Fund] of [identify      Lender]] |
|--------|-----------------------------------------------------------------------------------------|

| 3. | Borrower(s): | ThermaClime,      Inc. and certain of its Affiliates |
|----|--------------|------------------------------------------------------|

| 4. | Collateral      Agent:  Banc of America Leasing & Capital, LLC, as      the collateral agent under the LoanAgreement |
|----|------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Loan      Agreement:  Term Loan Agreement, dated as of ___________,      2007, among THERMACLIME, INC. and certain Affiliates of ThermaClime, as      borrowers (collectively, the “Borrowers” and      each a “Borrower”), LSB      Industries, Inc., as guarantor, each lender from time to time party hereto      (collectively, the “Lenders” and      individually, a “Lender”), Banc      of America Leasing & Capital, LLC, as Administrative Agent and      Collateral Agent, and Bank of Utah, as Payment  Agent. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Assigned      Interest[s]: |
|----|----------------------------|

| Assignor[s]6 | Assignee[s]7 | Facility      Assigned | Aggregate      Amountof      Term Loans for all Lenders8 | Amount      of Term Loans Assigned | PercentageAssigned      of Term Loans9 |
|--------------|--------------|------------------------|----------------------------------------------------------|------------------------------------|----------------------------------------|
|         |         | Term      Loans        | $___________                                             | $___________                       | _________%                             |
|         |         | Term      Loans        | $___________                                             | $___________                       | _________%                             |
|         |         | Term      Loans        | $___________                                             | $___________                       | _________%                             |

| 7. | [Trade      Date: | __________________]10 |
|----|-------------------|-----------------------|

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6  Listeach Assignor, as appropriate.

  

  

  

  

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11

12

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11           Tobe added only if the consent of the Company is required by the terms of the LoanAgreement.

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|   | (a)      The Northwest Quarter of the Northwest Quarter of Section 8,      Township 17 South, Range 15West. |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | (b)      Beginning at the Northwest Corner of the Northeast Quarter of the      Northwest Quarter of Section 8, Township 17 South, Range 15      West; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      South along the West line of said Northeast Quarter of the Northwest      Quarter of said Section 8 to the intersection with the South      right-of-way line of the Access Road as now located, said right-of-way      line being 50 feet perpendicular distance from the center line of      said Access Road; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | thence      in a Northeasterly direction along said right-of-way line to the      intersection with the South line of the right-of-way of the railroad      spur, said right-of-way line for the railroad spur being 50 feet      perpendicular distance from the center line of said railroad      spur; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      along said South right-of-way line for the railroad spur to a point which      is 750 feet South of the North line of said      Section 8; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      East along a line which is parallel to the North line of said      Section 8, and 750 feet distant therefrom, to the      intersection with the South right-of-way line for the railroad spur      hereinabove described; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Southeasterly direction along the said South right-of-way line to the      intersection with the West right-of-way line of the      El Dorado-Smackover Highway; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Northwesterly direction along the West right-of-way line of said      El Dorado-Smackover Highway to the North line of Section 9,      Township 17 South, Range 15West; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      West along the North line of said Section 9 and the North line of      said Section 8 to the POINT OFBEGINNING. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)  Commencing      at the Northwest Corner of Section 5, Township 17 South,      Range 15 West; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | thence      South 88 degrees 24 minutes East 4060.30 feet to the POINT      OF BEGINNING of this exceptedtract; |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | thence      South 00 degrees 40 minutes West    1213.20 feet; |
|--------|------------------------------------------------------------------------------|

|   | thence      South 88 degrees 10 minutes East 1200.33 feet to the      El Dorado-Smackover Highway; |
|--------|------------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Northwesterly direction along said Highway to the North line of said      Section 5; |
|--------|------------------------------------------------------------------------------------------------------------|

|   | thence      in a Westerly direction to the POINT OF  BEGINNING. |
|--------|-----------------------------------------------------------------|

|   | (d)  Commencing      at the Northeast Corner of Section 6, Township 17 South,      Range 15 West; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | thence      North 88 degrees 23 minutes West 1327 feet to the POINT OF      BEGINNING of this excepted tract; |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | thence      South 01 degree 37 minutes West  90 feet; |
|--------|----------------------------------------------------------------------|

|   | thence      North 88 degrees 23 minutes West  990 feet; |
|--------|------------------------------------------------------------------------|

|   | thence      North 01 degree 37 minutes East  90 feet; |
|--------|----------------------------------------------------------------------|

|   | thence      South 88 degrees 23 minutes East 990 feet to the POINT OF      BEGINNING. |
|--------|------------------------------------------------------------------------------------------------------|

|   | (e)  Tract      2 described above. |
|--------|----------------------------------------------|

|   | (f)   Tract      5 described above. |
|--------|----------------------------------------------------|

|   | (g)  Tract      6 described above. |
|--------|----------------------------------------------|

|   | (h)  Tract      9 described above. |
|--------|----------------------------------------------|

|   | (i)  Tract      10 described above. |
|--------|-----------------------------------------------|

|   | (j)  Tract      16 described above. |
|--------|-----------------------------------------------|

|   | (k)  Tract      17 described above. |
|--------|-----------------------------------------------|

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| 1.   | All      that part of the Southeast Quarter of the Northeast Quarter      (SE/4 NE/4) of Section 1, Township 17 South, Range 16      West, Union County, Arkansas, lying North and West of Arkansas State      Highway #335, |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | All      that part of the Southwest Quarter of the Northwest Quarter      (SW/4 NW/4) of Section 6, Township 17 South, Range 15      West, Union County, Arkansas, lying North and West of Arkansas State      Highway #335. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name      of Grantor                  | Location      for purposes of UCC |
|---------------------------------------|-----------------------------------|
| Cherokee      Nitrogen Holdings, Inc. | Oklahoma                          |
| Northwest      Financial Corporation  | Oklahoma                          |
| Cherokee      Nitrogen Company        | Oklahoma                          |
| DSN      Corporation                  | Oklahoma                          |
| El      Dorado Chemical Company       | Oklahoma                          |

| Name      of Grantor                  | Filing      locations last five years                         |
|---------------------------------------|---------------------------------------------------------------|
| Cherokee      Nitrogen Holdings, Inc. | Oklahoma      County (Central Filing), OK; Colbert County, AL |
| Northwest      Financial Corporation  | Oklahoma      County (Central Filing), OK; Union County, AR   |
| Cherokee      Nitrogen Company        | Oklahoma      County (Central Filing), OK; Colbert County, AL |
| DSN      Corporation                  | Oklahoma      County (Central Filing), OK, Union County, AR   |
| El      Dorado Chemical Company       | Oklahoma      County (Central Filing), OK; Union County,AR    |

| Name      of Grantor                  | Trade      Names |
|---------------------------------------|------------------|
| Cherokee      Nitrogen Holdings, Inc. | None             |
| Northwest      Financial Corporation  | None             |
| Cherokee      Nitrogen Company        | None             |
| DSN      Corporation                  | None             |
| El      Dorado Chemical Company       | None             |

----

| Name      of Grantor                  | Merger      or other corporate reorganization |
|---------------------------------------|-----------------------------------------------|
| Cherokee      Nitrogen Holdings, Inc. | None                                          |
| Northwest      Financial Corporation  | None                                          |
| Cherokee      Nitrogen Company        | None                                          |
| DSN      Corporation                  | None                                          |
| El      Dorado Chemical Company       | None                                          |

| Name      of Grantor                  | Taxpayer      ID Numbers |
|---------------------------------------|--------------------------|
| Cherokee      Nitrogen Holdings, Inc. | 73-1597454               |
| Northwest      Financial Corporation  | 73-1131584               |
| Cherokee      Nitrogen Company        | 41-2115998               |
| DSN      Corporation                  | 73-1456545               |
| El      Dorado Chemical Company       | 73-1183488               |

----

| Registered Trademarks |
|-----------------------|
| Country               | Trademark | Registration No. | Registration Date |
| United      States    | El      Dorado (& Design) | 1,427,064 | 02/03/87 |
| United      States    | E-2 | 833,891 | 08/22/67 |

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|   | (a) | Secured      Party shall be entitled to exercise any and all rights and remedies of      Contract Party under the Assigned Agreement in accordance with the terms      of the Agreement, and Contract Party shall comply in all respects with      such exercise, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | upon      receipt of written notice from Secured Party, Contract Party will pay to      Secured Party all amounts due under or in connection with the Assigned      Agreement, and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      undersigned will not, without the prior written consent of Secured Party,      (i) cancel or terminate the Assigned Agreement or consent to or accept any      cancellation or termination thereof, or (ii) amend or otherwise modify the      Assigned Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| LOAN      PARTIES: LSB      INDUSTRIES, INC. By ______________________________                                                                          Title _____________________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| THERMACLIME,      INC.CHEROKEE      NITROGEN HOLDINGS, INC.,NORTHWEST      FINANCIAL CORPORATION,CHEMEX      I CORP.,CHEMEX      II CORP.,CHEROKEE      NITROGEN COMPANY,CLIMACOOL      CORP.,CLIMATECRAFT,      INC.,CLIMATE      MASTER, INC.,DSN      CORPORATION,EL      DORADO CHEMICAL COMPANY,INTERNATIONAL      ENVIRONMENTAL CORPORATION,KOAX      CORP.,LSB      CHEMICAL CORP.,THE      CLIMATE CONTROL GROUP, INC.,TRISON      CONSTRUCTION, INC.,THERMACLIME      TECHNOLOGIES, INC.,XPEDIAIR,      INC. By:  ________________________________         Title:  _______________________________                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| [COLLATERAL      AGENT:] [BANC OF      AMERICA LEASING & CAPITAL LLC, as collateral agent on behalf of the Secured      Parties]1 By  _________________________________                                                                         Title ________________________________                                                                           |

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| PARENT: LSB      INDUSTRIES, INC. By  _________________________                                                                         Title  ________________________                                                                                                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  BORROWERS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| THERMACLIME,      INC.CHEROKEE      NITROGEN HOLDINGS, INC.,NORTHWEST      FINANCIAL CORPORATION,CHEMEX      I CORP.,CHEMEX      II CORP.,CHEROKEE      NITROGEN COMPANY,CLIMACOOL      CORP.,CLIMATECRAFT,      INC.,CLIMATE      MASTER, INC.,DSN      CORPORATION,EL      DORADO CHEMICAL COMPANY,INTERNATIONAL      ENVIRONMENTAL CORPORATION,KOAX      CORP.,LSB      CHEMICAL CORP.,THE      CLIMATE CONTROL GROUP, INC.,TRISON      CONSTRUCTION, INC.,THERMACLIME      TECHNOLOGIES, INC.,XPEDIAIR,      INC. By:  _______________________________         Title:  _____________________________                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| [COLLATERAL      AGENT:] [BANC OF      AMERICA LEASING & CAPITAL LLC, as collateral agent on behalf of the Secured      Parties]1 By ________________________________                                                                          Title  ______________________________                                                                          |

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|   | Re: | Term      Loan Agreement (the “Loan      Agreement”), dated as of November 2, 2007, by and among the      Borrowers, Parent, Banc of America Leasing & Capital, LLC, as      administrative agent (“Administrative      Agent”), Banc of America Leasing & Capital, LLC, as collateral      agent (“Collateral      Agent”, and together with Administrative Agent, the “Agents”), and      the various financial institutions and other institutional investors which      are parties thereto from time to time, as Lenders (collectively, the      “Lenders”, and      together with the Administrative Agent and Collateral Agent, the “Lender      Parties”). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| HERSCHEL      H. FRIDAY (1922-1994) | KEVIN      A. CRASS, P.A.            |                                     | ELLEN      OWENS SMITH, P.A.  | SETH      M. HAINES                                       |
|-------------------------------------|--------------------------------------|------------------------------------------|-------------------------------|-----------------------------------------------------------|
| BRYON      M. EISEMAN, JR., P.A.    | WILLIAM      A. WADDELL, JR., P.A.   | ATTORNEYS      AT LAW                    | JASON      B. HENDREN, P.A.   | ERIN      R. CULLUM                                       |
| JAMES      A. BUTTRY, P.A.          | SCOTT      J. LANCASTER, P.A.        | A      LIMITED LIABILITY PARTNERSHIP     | BRUCE      B. TIDWELL, P.A.   | KRISTOPHER      B. KNOX                                   |
| FREDERICK      S. URSERY, P.A.      | ROBERT      B. BEACH, JR., P.A.      | www.fridayfirm.com                       | JOSEPH      P. MCKAY, P.A.    | KATHRYN      A. KIRKPATRICK                               |
| JAMES      C. CLARK, JR., P.A.      | J.      LEE BROWN, P.A.              | __________                               | ALEXANDRA      A. IFRAH, P.A. | J.      ADAM WELLS                                        |
| THOMAS      P. LEGGETT, P.A.        | JAMES      C. BAKER, JR., P.A.       |                                     | JAY      T. TAYLOR, P.A.      | LAURA      I. ASBURY                                      |
| JOHN      DEWEY WATSON, P.A.        | HARRY      A. LIGHT. P.A.            | 400      WEST CAPITOL AVENUE, SUITE 2000 | MARTIN      A. KASTEN, P.A.   | RAGENEA      K. THOMPSON                                  |
| PAUL      R. BENHAM, P.A.           | SCOTT      H. TUCKER, P.A.           | LITTLE      ROCK, ARKANSAS 72201-3522    | BRYAN      W. DUKE, P.A.      | REBECCA      B. HAWBLITZEL                                |
| LARRY      W. BURKS, P.A.           | GUY      ALTON WADE, P.A.            | TELEPHONE      501-376-2011              | JOSEPH      G. NICHOLS, P.A.  | WILLIAM      E. FOSTER                                    |
| A.      WYCKLIFF NISERT, JR., P.A.  | PRICE      C. GARDNER, P.A.          | FAX      501-376-2147                    | ROBERT      T. SMITH, P.A.    | MICHAEL      B. CHILDERS                                  |
| JAMES      EDWARD HARRIS, P.A.      | TONIA      P. JONES, P.A.            | _________                                | RYAN      A. BOWMAN, P.A.     | C.      AARON HOLT                                        |
| JAMES      M. SIMPSON, P.A.         | DAVID      D. WILSON, P.A.           |                                     | TIMOTHY      C. EZELL, P.A.   | BETH      C. KEARNEY                                      |
| JAMES      M. SAXTON, P.A.          | JEFFREY      H. MOORE, P.A.          | 3425      NORTH FUTRALL DRIVE, SUITE 103 | T.      MICHELLE ATOR, P.A.   | BRADLEY      S. RUNYON                                    |
| J.      SHEPHERD RUSSELL III, P.A.  | DAVID      M. GRAF, P.A.             | FAYETTEVILLE,      ARKANSAS 72703-4811   | SARAH      M. COTTON          | JOSHUA      M. OSBORNE                                    |
| DONALD      H. BACON, P.A.          | CARLA      GUNNELS SPAINHOUR, P.A.   | TELEPHONE      479-695-2147              | ALAN      G. BRYAN            | REJENA      SAULSBERRY                                    |
| WILLIAM      THOMAS BAXTER, P.A.    | R.      CHRISTOPHER LAWSON, P.A.     | ____________                             | LINDSEY      MITCHAM LORENCE  | DAVID      E. CHOATE                                      |
| JOSEPH      B. HURST, JR., P.A.     | BETTY      J. HARDY, P.A.            |                                     | KHAYYAM      M. EDDINGS       | JAMES      L. PHILLIPS                                    |
| ELIZABETH      ROBBEN MURRAY, P.A.  | LYNDA      M. JOHNSON, P.A.          | 599      HORSEBARN ROAD, SUITE 101       | STEVEN      L. BROOKS         |                                                      |
| CHRISTOPHER      HELLER, P.A.       | JAMES      W. SMITH, P.A.            | ROGERS,      ARKANSAS 72758              | H.      WAYNE YOUNG, JR.      |                                                      |
| LAURA      HENSLEY SMITH, P.A.      | CLIFFORD      W. PLUNKETT, P.A.      | TELEPHONE      479-695-2011              | JAMIE      HUFFMAN JONES      |        OF      COUNSEL |
| ROBERT      S SHAFER, P.A.          | DANIEL      L. HERRINGOTN. P.A.      | FAX      479-845-4363                    | KIMBERLY      D. YOUNG        | WILLIAM      H. SUTTON, P.A.                              |
| WILLIAM      M. GRIFFIN III, P.A.   | J.      MICHAEL PICKENS, P.A.        |                                     | JASON      N. BRAMLET         | WILLIAM      L. TERRY                                     |
| MICHAEL      S. MOORE, P.A.         | K.      COLEMAN WESTBROOK, JR., P.A. |                                     | BRIAN      C. SMITH           | WILLIAM      L. PATTON, JR.                               |
| WALTER      M. EBEL III, P.A.       | ALLISON      J. CORNWELL, P.A.       |                                     | D.      MICHAEL MOYERS        | H.T.      LARZELERE, P.A.                                 |
|                                |                                 |                                     |                          | OSCAR      E. DAVID, JR., P.A.                            |
|                                |                                 |                                     |                          | MARVIN      L. CHILDERS                                   |

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|   | Beginning      at the Northwest Corner of the Northeast Quarter of the Northwest Quarter      of Section 8, Township 17 South, Range 15    West; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      South along the West line of said Northeast Quarter of the Northwest      Quarter of Section 8 to the intersection with the South      right-of-way line of the access road as now located, said right-of-way      line being 50 feet perpendicular distance from the center line of      said access road; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Northeasterly direction along said right-of-way line to the      intersection with the South line of the right-of-way of the railroad      spur, said right-of-way line for the railroad spur being 50 feet      perpendicular distance from the center line of said railroad      spur; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      along said South right-of-way line for the railroad spur to a point which      is 750 feet South of the North line of said      Section 8; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      East along a line which is parallel to the North line of said      Section 8, and 750 feet distant therefrom to the      intersection with the South right-of-way line for the railroad spur      herein above described; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Southeasterly direction along the said South right-of-way line to the      intersection with the West right-of-way line of the      El Dorado-Smackover Highway; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Northwesterly direction along the West right-of-way line of said      El Dorado-Smackover Highway to the North line of Section 9,      Township 17 South,Range 15West; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      West along the North line of said Section 9 and the North line of      said Section 8 to the POINT OFBEGINNING. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      North 01 degree 03 minutes 47 seconds East      40.00 feet; |
|--------|---------------------------------------------------------------------------------------------|

|   | thence      North 88 degrees 56 minutes 13 seconds West      16.00 feet; |
|--------|----------------------------------------------------------------------------------------------|

|   | thence      North 01 degree 03 minutes 47 seconds East      40.0 feet; |
|--------|--------------------------------------------------------------------------------------------|

|   | thence      South 88 degrees 56 minutes 13 seconds East      150.00 feet; |
|--------|-----------------------------------------------------------------------------------------------|

|   | thence      South 01 degree 03 minutes 47 seconds West 80.00 feet      to the POINT OF BEGINNING. |
|--------|-----------------------------------------------------------------------------------------------------------------------|

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|   | (a)      The Northwest Quarter of the Northwest Quarter of Section 8,      Township 17 South, Range 15West. |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | (b)      Beginning at the Northwest Corner of the Northeast Quarter of the      Northwest Quarter of Section 8, Township 17 South, Range 15      West; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      South along the West line of said Northeast Quarter of the Northwest      Quarter of said Section 8 to the intersection with the South      right-of-way line of the Access Road as now |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | located said right-of-way line being 50 feet perpendicular distance      from the center line of said Access Road; |
|--------|--------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Northeasterly direction along said right-of-way line to the      intersection with the South line of the right-of-way of the railroad      spur, said right-of-way line for the railroad spur being 50 feet      perpendicular distance from the center line of said railroad      spur; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      along said South right-of-way line for the railroad spur to a point which      is 750 feet South of the North line of said      Section 8; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      East along a line which is parallel to the North line of said      Section 8, and 750 feet distant therefrom, to the      intersection with the South right-of-way line for the railroad spur      hereinabove described; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Southeasterly direction along the said South right-of-way line to the      intersection with the West right-of-way line of the      El Dorado-Smackover Highway; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Northwesterly direction along the West right-of-way line of said      El Dorado-Smackover Highway to the North line of Section 9,      Township 17 South, Range 15West; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | thence      West along the North line of said Section 9 and the North line of      said Section 8 to the POINT OFBEGINNING. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)  Commencing      at the Northwest Corner of Section 5, Township 17 South,      Range 15 West; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | thence      South 88 degrees 24 minutes East 4060.30 feet to the POINT      OF BEGINNING of this exceptedtract; |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | thence      South 00 degrees 40 minutes West    1213.20 feet; |
|--------|------------------------------------------------------------------------------|

|   | thence      South 88 degrees 10 minutes East 1200.33 feet to the      El Dorado-Smackover Highway; |
|--------|------------------------------------------------------------------------------------------------------------------------|

|   | thence      in a Northwesterly direction along said Highway to the North line of said      Section 5; |
|--------|------------------------------------------------------------------------------------------------------------|

|   | thence      in a Westerly direction to the POINT OF  BEGINNING. |
|--------|-----------------------------------------------------------------|

|   | (d)  Commencing      at the Northeast Corner of Section 6, Township 17 South,      Range 15 West; |
|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | thence      North 88 degrees 23 minutes West 1327 feet to the POINT OF      BEGINNING of this excepted tract; |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | thence      South 01 degree 37 minutes West  90 feet; |
|--------|----------------------------------------------------------------------|

|   | thence      North 88 degrees 23 minutes West  990 feet; |
|--------|------------------------------------------------------------------------|

|   | thence      North 01 degree 37 minutes East  90 feet; |
|--------|----------------------------------------------------------------------|

|   | thence      South 88 degrees 23 minutes East 990 feet to the POINT OF      BEGINNING. |
|--------|------------------------------------------------------------------------------------------------------|

|   | (e)  Tract      2 described above. |
|--------|----------------------------------------------|

|   | (f)   Tract      5 described above. |
|--------|----------------------------------------------------|

|   | (g)  Tract      6 described above. |
|--------|----------------------------------------------|

|   | (h)  Tract      9 described above. |
|--------|----------------------------------------------|

|   | (i)  Tract      10 described above. |
|--------|-----------------------------------------------|

|   | (j)  Tract      16 described above. |
|--------|-----------------------------------------------|

|   | (k)  Tract      17 described above. |
|--------|-----------------------------------------------|

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| 1.   | All      that part of the Southeast Quarter of the Northeast Quarter      (SE/4 NE/4) of Section 1, Township 17 South, Range 16      West, Union County, Arkansas, lying North and West of Arkansas State      Highway #335, |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | All      that part of the Southwest Quarter of the Northwest Quarter      (SW/4 NW/4) of Section 6, Township 17 South, Range 15      West, Union County, Arkansas, lying North and West of Arkansas State      Highway #335. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Mark                          | Reg.    No. | Date     |
|-------------------------------|-------------|----------|
| EL      DORADO (& Design) | 1,427,064   | 02/03/87 |
| E-2                           | 833,891     | 08/22/67 |

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