Document:

THE                                          April 10, 2000
CIT
GROUP

     Jim Jones
     Vice President and Treasure
     LSB Industries Inc.
     16 South Pennsylvania Avenue
     Oklahoma City, Oklahoma 73107

     Dear Mr. Jones:

     Reference  is  made  to  that certain Loan  Agreement  dated
     October  31, 1994, as amended (the "Agreement") between  DSN
     Corporation,   ("Debtor"),  and  the   CIT   Group/Equipment
     Financing,  Inc. ("CIT").  Debtor has advised CIT  that  LSB
     Industries Inc., a guarantor of Debtor's obligations to  CIT
     were not in compliance with certain covenants as of December
     31, 1999.

     Debtor  has requested, that notwithstanding anything to  the
     contrary  of the Agreement, that CIT waive the instances  of
     non-compliance through April 1, 2001.

     CIT  hereby waives, as of this date, the above instances  of
     non-compliance  under  the  Agreement  by  acceptance  of  a
     $7,500.00  processing fee.

     All  other terms, conditions and agreements under  the  Loan
     Agreement,  together  with  all schedules,  attachments  and
     amendments  thereto shall remain in full force  and  effect.
     Please  note that Cites willingness to waive this particular
     covenant  violation  should  not  be  interpreted  as  Cites
     agreement  or  willingness to waive any  further  breach  or
     violation of the Agreement.

                               Sincerely,
                                The CIT Group Equipment Financing
     Inc.

By:___________________________________

Title:________________________________

     Acknowledged and Agreed to
     DSN Corporation
     By:________________________
     Title:_____________________Debtors Name and Address  Note  Date of  Maturit  Principal
                         Numbe    Note    y Date    Amount
                           r
Prime Financial          2      3/5/98   On       $3,000,00
Corporation                              Demand       0
16 South Pennsylvania
Oklahoma City, OK 73107
                         Customer       _ New loan
                         Number         X Renewal of
                                        loan(s)     number:
                                        1
                         X Fixed          __Variable
                         interest         interest    Rate
                           rate per       Index____
                         annum
                           10.75%
PAYMENT TERMS:           Collateral       Present Index
                         Categories:      Rate __
                                          Margin Over Index
                                          ___
                                          Initial Per Annum
                                            Rate ___
__ SINGLE PAYMENT        PURPOSE OF LOAN
INCLUDING UNPAID AND        This  note amends and  restates
ACCRUED INTEREST PAYABLE that certain Promissory Note dated
                         10/17/97  in the principal  amount
                         of  $3,000,000.00 made by Debt  in
                         favor    of   Lender   which    is
                         superceded hereby.
 X INSTALLMENT PAYMENTS
AS FOLLOWS:
  On demand with
interest paid monthly in
arrears on the 15th day
of each month.

PROMISE  TO  PAY.  For  value received, the  undersigned  Debtor,
whether one or more, and jointly and severally if more than  one,
agrees to the terms of this Note and promises to pay to the order
of  the  Lender named below at its place of business as indicated
in  his  Note  or  at such other place as may  be  designated  in
writing  by  Lender, the Principal Amount of this  Note  together
with  interest on the unpaid Principal Amount until  Maturity  at
the  per annum interest rate  or rates stated above according  to
the  Payment Terms stated in this Note. Interest on this Note  is
calculated on the actual number of days elapsed on a basis  of  a
360  day  year unless otherwise indicated above.  For purpose  of
computing  interest  and  determining  the  date  principal   and
interest  payments are received, all payments  will  deemed  made
only  when  received  in collected funds.  Payments  are  applied
first to accrued and unpaid interest and other charges, and  then
to  unpaid Principal Amount.  In this Note, "Debtor" includes any
party  liable  under  this Note, including endorsers,  co-makers,
guarantors  and  otherwise, and "Lender" includes all  subsequent
holders.

VARIABLE  RATE.   If  this  is  a Variable  Rate  transaction  as
indicated above, the interest rate shall vary from time  to  time
with  charges (whether increases or decreases) in the Index  Rate
shown  above.  The interest rate on this Note will be  the  Index
Rate plus a Margin, if any, as indicated above.  Each change will
become effective on the same date the Index Rate changes unless a
different  effective date is indicated above.  If the Index  Rate
is Lender's base or prime rate, it is determined by Lender in its
sole  discretion, primarily on a basis of its cost of  funds,  is
not necessarily the lowest rate Lender is charging its customers,
and is not necessarily a published rate.

PAYMENTS NOT MADE WHEN DUE.  Any principal and/or interest amount
not  paid  when due shall bear interest at a rate 6  percent  per
annum greater than the per annum interest rate prevailing on this
Note at the time the unpaid amount came due, but in no event at a
rate  less  than  15 percent per annum.  In addition  or  in  the
alternative  to the interest rate provided for in this  paragraph
Lender  may  assess a charge of $10.00 times the number  of  days
late  to cover cost of past due notices and other added expenses.
In  no  event shall the interest charges either before  or  after
maturity be greater than permitted by law.

ALL PARTIES PRINCIPALS.  All Debtors shall each be regarded as  a
principal  and  each Debtor agrees that any party to  this  Note,
with Lender's approval and without notice to any other party, may
from  time  to  time renew this Note or consent to  one  or  more
extensions  of deferrals of the Maturity Date for any term(s)  or
to  any other modification(s), and all Debtors shall be liable in
same manner as on the original note.

ADVANCES AND PAYMENTS.  It is agreed that the sum of all advances
under  this Note may exceed the Principal Amount as shown  above,
but  the unpaid balance shall never exceed said Principal Amount.
Advances  and payments on this Note shall be recorded on  records
of  Lender and such records shall be prima facie evidence of such
advances,  payments  and  unpaid principal  balance.   Subsequent
advances and the procedures described in this Note shall  not  be
construed or interpreted as granting a continuing line of  credit
for  Principal Amount.  Lender reserves the right  to  apply  any
payment by Debtor, or for account of Debtor, toward this Note  or
any other obligation of Debtor to Lender.

PREPAYMENT.   Except as otherwise provided in this  Note,  Debtor
shall  have the right to prepay all or any of principal due under
this  Note  at any time without penalty, subject to the following
conditions:   (a) all interest must be paid through the  date  of
any  prepayment;  and (b) if this Note provides  for  monthly  or
other  periodic  payments, there will be no charges  in  the  due
dates  or amounts following any partial prepayment unless  Lender
agrees to such charges in writing.

COLLATERAL.   This Note and all other obligations  of  Debtor  to
Lender,  including renewals and extensions, are  secured  by  all
collateral securing this Note and by all other security interests
and  mortgages previously or later granted to Lender and  by  all
money,  deposits and other property owned by any  debtor  and  in
Lender's possession or control.

ACCELERATION.   At option of Lender, the unpaid balance  of  this
Note  and  all  other  obligations of Debtor to  Lender,  whether
direct or indirect, absolute or contingent, now existing or later
arising, shall become immediately due and payable without  notice
or  demand, upon or after the occurrence or existence of  any  of
the  following events or conditions; (a) any payment required  by
this  Note or by any other note or obligation of Debtor to Lender
or  to  others  is not made when due, or any event  or  condition
occurs or exists which results in acceleration of the maturity of
any  Debtor's  obligation  to  Lender  or  to  others  under  any
promissory note, agreement or undertaking; (b) Debtor defaults in
performing  any  covenant,  obligation,  warranty  or   provision
contained in any loan agreement or in any instrument or  document
securing or relating to this Note or nay other note or obligation
of   Debtor   to   Lender  or  to  others;  (c)   any   warranty,
representation,  financial  information  or  statement  made   or
furnished to Lender by or on behalf of Debtor proves to have been
false  in  any material respect when made or furnished;  (d)  any
levy,  seizure,  garnishment or attachment is  made  against  any
asset  of any Debtor; (e) Lender determines, at any time  and  in
Lender's  sole discretion, that the prospect of payment  of  this
Note  is  impaired; (f) whenever, in Lender's sole judgment,  the
collateral   for  the  debt  evidenced  by  this   Note   becomes
unsatisfactory or insufficient either in character or value  and,
upon  request.  Debtor fails to provide additional collateral  as
required by Lender; (g) all or any part of the collateral for the
debt  evidenced  by  this  Note  is lost,  stolen,  substantially
damaged  or  destroyed;  (h)  death,  incompetency,  dissolution,
change   in  ownership  or  senior  management,  termination   of
existence of any Debtor; or (i) receiver is appointed over all or
part  of any Debtor's property, or any Debtor makes an assignment
for  the  benefit  of  creditors,  files  for  relief  under  any
bankruptcy  or  insolvency  laws,  or  becomes  subject   to   an
involuntary laws, or becomes subject to an involuntary proceeding
under such laws.

RIGHT  OF  OFFSET.  Except as otherwise by law, any  indebtedness
due  from  Lender  to Debtor, including, without limitation,  any
deposits or credit balance due from Lender, is pledged to  secure
payment  of  this  Note  and any other obligation  to  Lender  of
Debtor,  and  may  at any time while the whole or  part  of  such
obligation(s)  remain(s) unpaid, either before or after  Maturity
of  this  Note, be set off, appropriated, held or applied  toward
the payment of this Note or any other obligation to Lender by any
Debtor.

ADDITIONAL  PROVISIONS.   (1)  Debtor  agrees,  if  requested  to
furnish to Lender copies of income tax returns as well as balance
sheets and income statements for each fiscal year following  Date
of Note and at more frequent intervals as Lender may require. (2)
No waiver by Lender of any payment or other right under this Note
or  any  related agreement or documentation shall  operate  as  a
waiver  of  any  other  payment  or  right.   All  Debtors  waive
presentment,  notice  of  acceleration, notice  of  dishonor  and
protest  and  consent to substitutions, releases and  failure  to
perfect  as  to  collateral and to additions or releases  of  any
Debtor. (3) This Note and the obligations evidenced by it are  to
be  construed and governed by the laws of the state indicated  in
Lender's address shown in this Note. (4) All Debtors agree to pay
costs  of collection, including, as allowed by law, an attorney's
fee  equal  to a minimum of 15% of all sums due upon  default  or
such other maximum fee as allowed by law. (5) All parties signing
below  acknowledge receiving a completed copy of  this  Note  and
related  documents, which contain the complete  entire  agreement
between Lender and any party liable for payment under this  Note.
No  variation,  condition, modification, change or  amendment  to
this  Note  related documents shall be binding unless in  writing
and  signed by all parties.  No legal relationship is created  by
the  execution of this Note and related documents except that  of
debtor and creditor or as stated in writing.

LENDER NAME AND ADDRESS       DEBTOR(S) SIGNATURE(S)

SBL Corporation               Prime Financial Corporation
P.O. Box 705                  By:_______________________________
Oklahoma City, Oklahoma 73101-0705

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